{"id":1728,"date":"2012-03-05T14:11:24","date_gmt":"2012-03-05T19:11:24","guid":{"rendered":"http:\/\/therapytoronto.ca\/news\/?p=1728"},"modified":"2012-03-06T14:22:16","modified_gmt":"2012-03-06T19:22:16","slug":"study-looks-at-characteristics-of-consumers-who-get-a-good-bargain-when-buying-a-new-car","status":"publish","type":"post","link":"https:\/\/therapytoronto.ca\/news\/2012\/03\/study-looks-at-characteristics-of-consumers-who-get-a-good-bargain-when-buying-a-new-car\/","title":{"rendered":"Study looks at characteristics of consumers who get a good bargain when buying a new car"},"content":{"rendered":"

From the UC Riverside press release:<\/p>\n

\"\"Want to save nearly $800 the next time you purchase a new car?<\/p>\n

A recently published paper co-authored by Jorge Silva-Risso, an associate professor of marketing at the University of California, Riverside\u2019s School of Business Administration, can help you do that.<\/p>\n

Through surveying more than 1,400 car buyers, Silva-Risso and his co-authors, Fiona Scott Morton, of Yale University, and Florian Zettelmeyer, of Northwestern University, found buyers could save about $800 if they find out what a dealer pays for a car, visit two dealerships, like to bargain and like to do research and price comparisons before making a purchase<\/strong>.<\/p>\n

The research also found that a consumer who doesn\u2019t like to bargain or do a lot of research can save $230 by doing just two things: finding out what the dealer pays for the car and visiting two dealerships<\/strong>.<\/p>\n

\u201cThis really shows that even the consumer who doesn\u2019t like to bargain can get the price reduced if they are informed,\u201d Silva-Risso said. \u201cAnd, if they are aggressive, and like bargaining, they can save even more.<\/p>\n

\u201cMy recommendation is that they arm themselves with as much information as possible and be patient in the negotiations until they find the car they like at the right price.\u201d<\/p>\n

Silva-Risso started working at UC Riverside in 2003 after seven years at J.D. Power and Associates. There he developed and implemented quantitative models of consumer responses to marketing programs offered by the automobile industry, particularly on car sales incentives, such as rebates, promotional interest rates and lease support programs. The models were adopted and continue to be used by most of the major car manufacturers.<\/p>\n

Silva-Risso has also done contract work for General Motors, Chrysler, Ford, Honda, Toyota and BMW.<\/p>\n

The paper, \u201cWhat matters in a price negotiation: Evidence from the U.S. auto retailing industry,\u201d was published in Quantitative Marketing and Economics<\/em>.<\/p>\n

Among the findings from the paper:<\/p>\n