HEDONIC PRICE FOR CAR IN IRAN

Year 2011, Issue: 2, 118 - 127, 10.04.2012

Manijeh Hadinejad Bita Shabgard

Abstract

ABSTRACT

Car industry constitutes a major part of economic activities and is deeply linked

to other economical sectors. This industry is a mirror reflecting the general situation

of each country's industries. Car manufacturing industry is forced to renovate due

to parametes effective on its products demand. Sedan car comprises a specific share

of the family consumption expenditure among durable goods. The payments that

the consumer bears for acquiring a sedan car which meets its needs depend on a set

of parameters that identifies the car by such features. The Hedonic method is a

method that considers the goods price a function of all its specifications and features

and by this method you may study the priorities and interests of applicants.

The implicit prices that are achieved in Hedonic method is an estimate of

family's final desire to pay for car specifications which in fact the priorities of the

family to choose the car will be determined by determination of the final desire to

pay the price. In this research a full logarithmic model for estimation of Hedonic

price model has been used in 3 section levels of 2006, 2008, 2010. The statistical

population consists of 30 car models manufactured and assembled by sedan car

manufacturing factories in Iran. Among the features presented for the car, 5 features

group have a meaningful effect on the sedan car price among which we can

point to the size of car which has the highest effect on car price and the consumer

has the highest tendency for paying for this feature.

Key Words: Hedonic Pricing, Car's Price, Features's Car

Keywords

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