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The Value Proposition of Luxury Brands

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Comments

  • fintailfintail Posts: 34,353
    What is it, exactly? According to some, it is equal to an S/LS/A8/7.
  • steverstever Viva Las CrucesPosts: 41,982
    What is it, exactly?

    Why, it's a luxury car. :)

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    Minivan fan. Feel free to message or email me - stever@edmunds.com.

  • Mr_ShiftrightMr_Shiftright CaliforniaPosts: 45,992
    yes but a Mercedes garbage truck says what it is, right on the side :P

    Mercedes makes work pants as well as designer jeans.

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  • steverstever Viva Las CrucesPosts: 41,982
    edited October 2010
    So, Mercedes is a brand name of a company that happens to make, among other things, luxury automobiles. It doesn't follow that they are a luxury brand then, eh?

    Can a garbage truck be luxurious?

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  • Mr_ShiftrightMr_Shiftright CaliforniaPosts: 45,992
    relative to other garbage trucks, I suppose so, but relative to a Bentley Arnage, no.

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  • steverstever Viva Las CrucesPosts: 41,982
    edited October 2010
    And what if someone wonders if an interior shot of the rear seats in an Equus could possibly be taken in a Maybach, as recently happened over in Mystery car pix....?

    Or will people just fixate on the brand and ignore the actual vehicle idling in front of them? That's just a garbage truck - oh wait, it's a Mercedes, must be a nice one.

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  • fintailfintail Posts: 34,353
    Well, if the person has never seen a Maybach before, or has no memorized knowledge of one, how are they to know?

    There's more to it than brand, there's a design element to it too.
  • fintailfintail Posts: 34,353
    That it is, in the eye of the beholder especially. Is it the same as a S/7 etc? Or an E/5? Or what? Luxury cars are subjective, and are very categorical - maybe an endless amount of classes.
  • houdini1houdini1 Kansas City areaPosts: 6,067
    edited October 2010
    Well practically speaking, currently there are 3 mainline luxury autos in the U.S. The LS, the S, and the 7, with the 7 being a.w.o.l. for the last few years. That just leaves the LS and the S. Two very fine automobiles that take turns winning comparisons, but as far as VALUE goes I would have to give the nod to the LS.

    The LS costs about $20 grand less than the S when new, but after 4 or 5 years they are worth about the same, or very close. To me that equates to better value. Just because I drive an LS doesn't mean I'm biased. I forgot the A8 and it is also a viable contender.

    I have an open mind about the Equus and I hope it is a roaring success.

    2013 LX 570 2010 LS 460 2002 Tacoma 4x4

  • Mr_ShiftrightMr_Shiftright CaliforniaPosts: 45,992
    edited October 2010
    But a Maybach shopper will know, and that's what counts.

    I'm rooting for Hyundai, too, to make a splash. Competition improves the breed! Look what Lexus did for Mercedes after all.......

    If I were appointed King of Hyundai, what I'd do is:

    1. Ditch the Hyundai name. Call the new marque "Genesis" or similar

    2. Put in an engine that's worthy of a world class luxury car. This means POWER to crush you back in your seat. Maybe even twin-turbos or a SC on the Genesis V8 would work, if Hyundai doesn't want to develop a new engine (very $$$ to do that).

    3. Continue to coddle and seduce new customers as they've been trying to do, with valet services, free iPads, free loaners, even fitted luggage, champagne in the truck, personalized owners manuals, you name it---pour on the glitz.

    4. If the car sells in reasonable numbers after 2 years, add 20% to the price and build a LWB version.

    5. Do something with the styling.

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  • lemkolemko Posts: 15,209
    Hyundai doesn't seem to be recognized as a luxury car by most of the public. I saw an Azera at lunch time and the owner pried off all the swoopy "H" badges and replaced them with aftermarket badges with some fussy filligree in them. It was as if the owner was ashamed to be driving a car badged as a Hyundai.
  • ctlctl Posts: 123
    edited October 2010
    I think the prestige of a brand can be objectively defined as the weighted average of its car selling prices in a region (say NA, Europe, Japan...)

    WAP (weighted average price): say brand BR sells 100 car A at $20K, 100 car B at $30K, then the WAP for brand BR is (20K * 100 + 30K * 100)/(100+100) = 25K

    With that, we can easily rate the brand prestige in the NA market:

    Tier 1: Rolls-Royce, Bentley, Maybach, Ferrari, Lamborghini...

    Tier 2: Porsche, Mercedes-Benz, BMW, Audi, Lexus...

    Tier 3: Toyota, Honda, Nissan, Hyundai...

    The more high priced cars a brand sell, it increases its brand prestige, and vise versa.

    Equus and Genesis certainly increases the brand prestige for Hyundai, quantitatively. But selling lots of Accent/Elentra would means the Hyundai brand can never have a high WAP.

    And what's a good value? maybe low car price for a high WAP brand? :)
  • stickguystickguy Posts: 15,678
    I assume you would put Acura and Infiniti into tier 2? And probably Volvo and caddilac also?

    2015 Hyundai Sonata 2.4i Limited Tech (mine), 2013 Acura RDX (wife's) and 2007 Volvo S40 (daughters college car)

  • hpmctorquehpmctorque Posts: 4,341
    I agree with everything, except careful with the champagne in the trunk in suit happy America.
  • Mr_ShiftrightMr_Shiftright CaliforniaPosts: 45,992
    Okay then, a subscription to CIGAR Magazine.

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  • ctlctl Posts: 123
    This (WAP) being an objective measure, where a brand is ranked wouldn't depend on my personal feelings :) too many brand to list, but not hard to estimate where they are.

    This also imitate how our brain perception works. I think in most cases, when a brand is mentioned, the WAP score will be the first to surface. Also, for most people it takes a while and drastic changes for our brain to change the WAP perception...

    I assume you would put Acura and Infiniti into tier 2? And probably Volvo and caddilac also?
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