Abstract
Purpose – The automobile industry is a key contributor to the GDP in most developed countries.
Whilst studies have mainly focused on new car markets, this research aims to investigate how
consumers’ socio-demographic profile impacts on the decision to buy used or new cars across different
automobile segments.
Design/methodology/approach – The study focuses on a major car market in Europe, France. The
data were obtained from the French Institute of Statistics (INSEE), consisting of a representative
sample of 1,967 French households who bought a new or used car within a year of this study. The
paper is based on random utility theory and applies multinomial logit modeling.
Findings – The findings suggest that economic, individual, household characteristics impact on car
segment choice, as well as the decision of whether to buy a new or a used car.
Originality/value – This is one of the few studies investigating the demand for new and used cars in
conjunction across car segments in a European context. It provides important insights into consumer
choice in a mature market.
Keywords Car market, Consumer choice, Random utility theory, Socio-demographic profile,
Multinomial logit, Consumer behaviour, France
Paper type Research paper