Nick Thomas is the CEO of Auto Concepts, a division of a large U.S. automobile manufacturer that has multiple divisions representing several auto and truck brands. This company has been slowly losing market share to competitors.

Auto Concepts was created to develop totally new vehicle models that are more in tune with today’s changing automobile market. A primary consideration in its development efforts is the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy, which advocates the use of alternative fuels such as propane, natural gas, hydrogen, ethanol, electricity, and biodiesel. It notes the key benefits of fuel economy, which include saving money, reducing oil dependence, slowing adverse climate change, and increasing energy sustainability. At the same time, it is believed that the Internet of Things, with its capabilities of safe mobile connections, self- or assisted-driving, infotainment, on-board diagnostics, and more will be a prominent part of future vehicles.

Nick Thomas knows he must come up with some innovations in automobile design and engineering, but he is not certain in which direction he should guide his division.

Nick realizes that he needs to find out what consumers’ attitudes are toward global warming and taking personal responsibility for fuel economy. This knowledge will help him determine a direction for the company in terms of automobile design. Nick also needs more data on consumer preferences. Will they want to stay with today’s standard gasoline compacts, all electric or hybrid electric models, or might they be interested in radically different models that promise much higher fuel economy?

1. In the development of new automobile models, which of the following should Nick be primarily concerned with, and why?

a. Engineering and production feasibility

b. The brand image of his division’s parent U.S.

automobile manufacturer

c. Technological innovation

d. Consumer preferences 

2. Should Nick Thomas use marketing research?