Hedonic Price For Cars: An Application To The China Car Market

Since reform and opening up the 20 years, automobile industry of the rapid growth of the make it become boost China's rapid economic growth is one of the leading industry. With the capacity of the domestic car expands ceaselessly, the new model has increased, the market matures. The prices of cars has become the focus of attention, how to really reflect the new car price, to standardize the market, prompting a healthy and stable development of auto market has the extremely vital significance. The car market new products mainly in the car's performance and specifications quality of change as the technical improvement, put forward a long-discussed question - in a period of quality improvement durable goods caused by price changes.Because automotive products are a heterogeneous goods, products in the makeup of use value between different characteristics, there is a notable difference between foreign often hedonic price from feature price (from the perspective of constructing model). And domestic to car prices, most of the problems from the market supply and demand, price structure, policy of quantitative research for qualitative analysis, domestic less. The purpose of this paper is to construct car features, estimated price model car features analyse the implicit price influence factors of automobile product prices.In this paper the characteristics of the car with consumer point of view, the classification of safety, comfort, mainly divided into the maneuverability, automation degree, automobile class 5 aspects. Based on this, we constructed from econometrics Angle car features price theory model, and combining the actual situation in our country, using a 142 automobile samples verified the feasibility of price model features, finally chose 20 car features as the independent model. Through the choice is optimal model of different grades respectively analyzes the characteristics of car prices. Analysis concluded, automotive feature attributes on the price of different grades of the car is different, low fuel consumption car, quality, maximum power, maximum torque of the greatest influence on the four variables, reflecting the low-end car is positioned as the economy practical; In contrast, mid-range cars pay more attention to security, such as airbags, ABS anti-lock braking system, all of the price of mid-range car is relatively large, reflecting the mid-range cars for the consumer groups prefer the safety of consumption; on the impact of high-end cars the greatest degree of quality, maximum power, maximum torque, maximum speed of four characteristic variables, and these four variables is the most direct reflection of the performance of automobile engines, we can see the price structure of high-end cars, the engine technology updates will have a tremendous impact.