LEASING AS CUSTOMER SEGMENATION: IMPLICATIONS ON VEHICLE CONFIGURATION OPTION
LEASING AS CUSTOMER SEGMENATION: IMPLICATIONS ON VEHICLE CONFIGURATION OPTION

Summary/Abstract: This research paper analyses the role of Leasing as a purchase contract type in the new car configuration choices made by private new car buyers in Germany. Via a literature review, conclusions on Leasing customers are drawn and tested on a data set of 354 respondents using a binomial logit regression model, which provided information on the vehicle configuration they have bought, their purchase contract type, and socio-economic demographics. The literature reviews show that Leasing is used as a means to upgrade the vehicle experience, either via a larger vehicle class or through the configuration of more option items. The data proves that customers upgrade their in-vehicle seating experience through elements like seat heating and three-zone automatic climate control. Furthermore, Leasing customers upgrade the driving experience using ADAS technology. Additionally, a technology innovation affinity becomes visible, which Leasing makes affordable for the first vehicle ownership cycle and avoids investments into the structural vehicle components like a glass roof or a trailer clutch, from which arguably second owners also draw large benefits. The developed understanding of leasing customers in this research paper allows OEMs and Leasing companies to adjust their pricing mechanisms via the residual value to increase new car revenues and increase profitability while delivering an improved customer experience in the new car sales process through targeted marketing campaigns.

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