Hey guys its been a while since I've been here but i need to do a quick survey for this Hyundai case competition.

For those who are still curious if I still drive my w204, Yes I do lol. I brought it to Korea and its still nice
but... my car battery died yesterday... Need to go replace it..

Anyways!

Of course im not a big fan of Hyundai, but for the assignment I need to do some analysis and this wont take long~

you can send me via private msg or just post on the forum

Since most of the people from this forum bought their own w204 im sure you have the budget range to be the target consumers for Hyundai Genesis
sedan


Ignore the service issues when you choose which car you want to buy..

1. What state do you live in the United States? (If you live in any other country, write your country name)

2. Would you buy the new AWD Lexus GS 350 with navi package (basic option for everyday driving) for $54,578 or the new AWD Hyundai Genesis sedan with full package for $52,450?

3. Why? (ex/ is it because of the Hyundai brand?)

4. For those who chose AWD Lexus GS 350. What if AWD Hyundai Genesis with full package costs now $45,450? Would still buy the Lexus?


Thanks guys.

This is just a case competition about Hyundai and their brand image for my MBA marketing class. Just some analysis I need to do and your comments will help me alot~

Cheers!
Alex.

 

Interesting assignment....reminds me of the real-world exercise I found myself in many years ago.....how much less expensive should a Merkur XR4Ti be than a BMW 3 Series to gain consideration. Anyway, on to your questions:

1) Michigan

2) Lexus

3) Lexus offers a few advantages which justifies the modest pricing differential in your first example. Starting with the sales experience, if I go the Hyundai showroom, I am in a facility designed and staffed to welcome a range from the Accent to the Equus. By contrast, a Lexus store has been completely thought-out and facilitized to serve luxury buyers, including down to the smallest amenities. I know you said to ignore service, but I can't give you a complete answer without some reference. I may be concerned that a Hyundai dealer may sell me a Genesis, but give me an Elantra as a loaner. Conversely, any Lexus would not place me in a downscale car, even during a brief use as a loaner when friends/clients might see or be in the car. The overall "catering" done in a luxury dealership versus a mass market dealership will also be expected to be different. If I am lined up waiting behind a long line of Sonatas and Elantras for a service appointment, I will not feel as well-handled as when pulling into any Lexus service department. Regarding actual ownership, there is a threshold (don't know the exact "brightline" separation part) where once a prospect is considering luxury products, minor price differentials are more an issue of perceived value than actual affordability. For a mere $2,000, I would not give up the practical and perceived advantages of Lexus, including the social acceptance factor among my friends/colleagues. Hyundai suggests I am trying to "get by", appearing to have a similar car, but needing/wanting to spend less. Lexus is the original and genuine article. Moving from Lexus to Hyundai sends the non-verbal signal that I might be having some economic troubles and am trying to keep up appearances. But, being past the likely spending threshold where affordability is not driving the decision for just $2,000 over the life of a $50,000+ car, there are not enough offsetting benefits to justify Hyundai as a Lexus substitute. (For those cars, $2,000 is just an option package price!)

4) Now, if you move the goalposts to a $10,000 difference, you may get more attention from some Lexus buyers. That would certainly get more of my attention. Also, Hyundai might peel off some lower end current Lexus owners, for whom Lexus is a stretch, or start to compete aggressively with a range of previously existing cars in a lower segment by dropping in a Genesis at a similar price. The equation for most folks is "What can I get for my money?". If a higher end segment vehicle such as Genesis (due to size or content) is offered at a similar price to smaller/lesser content cars, it could be a "segment buster" in that lower segment. However, the business case for Hyundai would likely prevent this scenario, as well as the damage it would do to the next lower Hyundai car.....Azera?

BTW, I had to create a hypothetical to inject myself into this exercise. I am not a target for either brand under any circumstance I can imagine. If I got one for free, I'd sell it and buy something German.

 

Well written Sportstick!

#1 California
#2 Hyundai
#3 Because I strongly believe in variety. I've already tried the Lexus experience and while Sportstick has a very strong argument, I feel compelled to try as many different flavors while I still can; although in real life, I'd probably get the Lexus (if forced between the 2 brands) simply because of outside influences (such as the wife).
I am however secretly rooting for the Americans/Koreans to have something I can affordably lust for by 2020. If not, then Infinity/BMW is next in line by default.

 

1. What state do you live in the United States? (If you live in any other country, write your country name)

Illinois

2. Would you buy the new AWD Lexus GS 350 with navi package (basic option for everyday driving) for $54,578 or the new AWD Hyundai Genesis sedan with full package for $52,450?

Lexus, no question.

3. Why? (ex/ is it because of the Hyundai brand?)

Not as prestigious, not as reliable, not as good resale. Probably not as good of a car as well (though I can only really rely on review. I didn't really look at the genesis)

4. For those who chose AWD Lexus GS 350. What if AWD Hyundai Genesis with full package costs now $45,450? Would still buy the Lexus?

Probably. Still for the same reasons. Hyundai and high end just dont' go together in my mind. They still barely compete in mid-range in my mind. You'd have to be able to demonstrate that the total cost of ownership was a significant discount to have me consider it at all. Purchase price is a small part of the story.

[/QUOTE]

 

Honduras
Hyundai
Sportstick is right on, I just would like to add that most people may have no idea what your new Genesis cost and may say "Nice Hyundai. is that the new elantra or sonata?" .

On a personal note I liked the first generations of Lexus cars, the original LS400 design still looks modern and fresh, but their new design language reminds me to much of the Predator movie - I really don't like any current lexus out there. I would buy something else,

 

1) California

2) I wouldn't buy either one, but if they are the only choices, I would get the Hyundai. Never liked driving anything Toyota...I mean Lexus.

3) I've driven over a million miles in the last 22 years, and never could find a single toyota/lexus that I liked driving. Just don't feel safe/confident driving them. The genesis drives pretty nice for a large vehicle. The only Japanese vehicle brand I would ever consider is Nissan/Infinity. 11 of the 15 new cars I've purchased in the last 22 years have been german. Once you go german, you just can't go back to anything else. Nothing else feels right from the drivers seat. (some of the new german based american brands come close)
I've also been in and seen my share of accidents over the million miles. Let me tell you, those in german cars survive a lot better than occupants of Japanese cars.

4) Still would get the Hyundai over the Toyoxus

 

1) Currently living in Seattle, WA

2)Lexus, no doubt.

3)Yes, its partly because of the brand name. I have had good experiences with Toyota/Lexus, and some of my friends with Hyundai....not so much. Cannot trust their brand yet even though they are offering a very generous 10 year warranty. I have a Toyota Harrier 3.5 ( a.k.a Lexus RX350) back home in Jakarta , Indonesia and it has given me almost no problems (bad road conditions, dusty,etc...) even the Camry I had 3.0 v6 was great. They are reliable cars. Plus, if the price difference is only 2K+- , Lexus it is. Lexus' base package is still pretty generous.......right?

4)I would still buy the Lexus. If you can afford a 45k car, why get a Hyundai? The thing about cars for me, brand image plays an important role. They need to build up the brand name first before they can succeed. Probably, at this rate, if Hyundai keeps building these nice luxury cars at a good price with good reliability, their company will succeed. Look at the improvements they have made....