| Abstract: | This paper investigates the relationship of automobile attributes and household characteristics to consumer preferences for Japanese cars. The analysis was confined to households that purchased new cars in 1986 and employed two-stage probit analysis. Results indicate that the coefficients of five automobile quality attributes are statistically significant while the coefficients of most household characteristics are not significant. Households interested in more fuel efficient and heavier cars as well as cars with lower depreciation rates and a lower frequency of repair are more likely to buy Japanese than non-Japanese cars. The fact that households buy Japanese automobiles because of quality considerations not because they are small has implications for the U.S. automobile industry which faces increased competition in a global economy. |
