a consumer repurchased the same vehicle brand also had a positive coefficient,
indicating a positive effect on demand. Because repurchasing the same brand lowers
search and transactions costs, this variable had the expected positive sign.
These results indicate that consumers react not just to the monetary price of an
automobile, but also to the full purchasing costs, including the costs of obtaining
information and searching for the vehicle. The study also determined that younger
consumers and those residing on the Pacific Coast had smaller demands for domestic
vehicles than other age and geographic groups.