A Psychophysical Approach to Assessment of Relationship Between Vehicle Color and Purchase Price

Keiko Powers, J. D. Power and Associates
This study investigates the relationship between vehicle color, an emotionally appealing attribute, and purchase price of new vehicles applying the psychophysics concept. Using point-of-sales data with over two million transactions collected from automobile dealers in California, comparisons of prices with different colors were made while controlling for other attributes, such as engine type. Results based on over one thousand vehicle comparisons demonstrated differential effects of color. In particular, sporty cars, which are considered to have high emotional appeal, resulted in 13% of comparisons showing significant differences. The results demonstrated that consumers' emotional evaluation of color plays such an important role in decision making that it has a significant influence on consumer's evaluation about the vehicle price.
[ to cite ]:
Keiko Powers (2008) ,"A Psychophysical Approach to Assessment of Relationship Between Vehicle Color and Purchase Price", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 1018-1018.