If you ever needed proof that we make emotional buying decisions, look no further than the smart car.
The smart car is a tiny two-seater that appeals to environmentally concerned folks. (I’m guessing the majority of the buyers are either single or married with no kids.)
You don’t buy a smart car because it’s a logical thing to do. The reason you buy a Smart Car is to make an “environmental statement.” Let me offer some proof:
Right now, a base “smart fortwo pure” costs $11,990.
And a base Toyota Yaris costs $12,205.
Of course, the Yaris includes air conditioning and power steering standard; the smart fortwo pure does not. So if we add those features in, we’re now up to $13,040 to get a similarly equipped smart car.
Alright, so how do these two cars stack up?
Compared to the smart fortwo pure, the Yaris has:
- double the seating space
- a 50% bigger engine
- 36 more horse power
- 35 more ft-lbs of torque
- vastly more luggage space
- 2.4 extra gallons of fuel capacity
- anti-lock brakes (standard!)
- and a higher top end (the smart fortwo has a max speed of 90 mph)
So what does the smart fortwo have going for it?
Well, you get slightly better gas mileage (33/41 vs. 29/36). And you get a car designed to be recyclable from the start. In theory, it is more earth friendly.
The reason I bring all this up is because humans are emotional creatures. We make emotional decisions in spite of logical justifications.
If we bought on logic, then nobody would buy a smart car. After all, who wants to pay MORE money for the privilege of driving a car that has far fewer features and capacity?
In this case, making an “environmental statement” is a valuable enough emotional benefit that people will pay good money for it.
What is the core emotional appeal of your service or product? What emotional benefit are people buying when they buy from you?
If your product’s emotional appeal is strong enough, it will trump logic — bringing you more passionate buyers who are willing to spend more money with you.
-Ryan M. Healy
{ 15 comments }
Well,
it is also a matter of perspective. I live in San Francisco, where parking is horrible. Down the street, an elderly couple (children have left the house long ago) bought the Smart recently, and it is the most logical choice for them. In this city, you hardly ever need airconditioning, there are two of them, and they can park in places where the yaris cannot.
So, think about where you live. Not everybody is heterosexual, with children, living in Florida. Markets are segmented.
My buddy and I thought we were really clever when we came up with the bumper sticker, “Smart Cars Are Stupid.”
Reading: Smart Cars, Dumb Buyers | Business Growth Strategies http://bit.ly/14M9bN
This comment was originally posted on Twitter
I completely agree. Smart Cars are stupid. Stupid looking and impractical in the extreme. What is Niels’ ‘logical’ couple going to do about grocery shopping, or a long trip? They probably either own another vehicle, or they have their groceries delivered (at added cost), or never travel very far by car. The appeal is limited and I suspect there will be virtually no resale value when people tire of their ’statement car’ in the very near future. Feelings and image often matter much more than logic or actual, God forbid, facts. As marketing writers, we should all take advantage of the “feelings” vulnerability quotient. And I mean really take advantage.
I guess if we base this all on the ability to park in crowded areas, anyone that doesn’t buy a smart car (or scooter) is down right ignorant.
Smart Cars, Dumb Buyers: If you ever needed proof that we make emotional buying decisions, look no further than .. http://tinyurl.com/nc4twg
This comment was originally posted on Twitter
RT @healymonster Smart Cars, Dumb Buyers: If you ever needed proof that we make emotional buying decisions,.. http://tinyurl.com/nc4twg
This comment was originally posted on Twitter
I was on my way to an internet marketing event here in Orlando, and was stuck in traffic.
FINALLY got to the front of the jam, and there was the accident.
A big ole pickup truck and a SmartCar collided. Yikes!
I was AMAZED to see the SmartCar thoroughly crunched, but with the driver standing there next to it, safe and sound.
From a highway accident?!
Since the Obama-administration is zealously (and furtively) aiming to get more of us into these European-inspired fishbowls, there is SOME solace that a highway crash may be survivable.
I think it depends on how you’re driving. Who is anybody else to say that the San Francisco couple didn’t make a logical choice for themselves with their SmartCar?
There’s got to be some room to squeeze a couple of bags of groceries or a suitcase in the back of that thing.
Maybe you use public transportation a lot and all you really need a car for is quick trips around town. For example, I take the lightrail into downtown Denver for my daily commute. Most of my driving is done within a limited 10 mile radius on weekends and I never venture out onto a highway. (This is by choice — I hate driving on the highway. Though I have to say on those limited occasions where I would have to drive on the freeway, I’d rather be in a Hummer than a SmartCar.)
Maybe parking is an issue — and it’s a real one in San Francisco. Not to mention downtown Denver.
Maybe your neighborhood is largely walkable and you rarely use a car.
Maybe you’re just not enslaved to the car culture like the majority of Americans.
Maybe you like being trendy. OK, so that’s illogical.
Mind you, I have no plans to buy a SmartCar. It doesn’t look very durable or safe to me, and my first car was a Subaru Justy so I’ve already done the tuna-can-on-wheels thing.
Nor do I plan on going carless, even though I only put about 4,000 miles a year on my car. (Driving less is the real environmental action. Not feasible? Examine your lifestyle — can you do something different?) I do plan on keeping my current car (Ford Focus) another 10+ years, and then will replace it with a reliable hybrid car (likely a Ford Fusion, but who knows what will be around then?)
As the old saying goes: “People buy on emotion, and justify with logic” Remembering and applying this quote as served me well in my sales career.
Regarding post #2- A bit of history that not many people remember:
When Daimler Benz bought Chrysler back in 1998 or so, Daimler was developing and about to launch its Smart Car. At the time Daimler had a high opinion of it and the price it would bring in teh US market. Tom Stallkamp, who was Purchasing Director at Chrysler heard about the price and the cost overruns, and commented at some industry gathering that “the Smart Car didn’t sound too smart to him.”
I think his remaining tenure at the company lasted less than two months after that comment.
The marketing message for the “not-so-Smart Car” plays on the emotions, and what I call “green guilt” of people who want to improve the condition of the environment. Or look like they are.
I’m 6-2 and 250 lbs. No way am I going to squeeze myself into this over-hyped tin can for a block, much less 100,000 miles. I still like cars with some room, and engines with some get-up-and-go. My 2001 Impala has a V6 that gets 32/22 mpg, has a decent-sized backseat and trunk.
It’s a guy thing, but you don’t to drive some wimpy little rollerskate on the highways, because its easier to get bullied by larger vehicles. Especially here in Denver, where some folks think they’re NASCAR drivers.
If you’re a heterosexual guy and buy this car, you should have your “man card” revoked for at least a year. How’s that for an emotional marketing message against the Smart Car?
May I say I totally agree with most of the sentiment expressed in this discussion. I hate the smart car because the only thing that I can think of that it is going for it is the mileage and parking ease. Thats it and I am an avid recyler and ninja environmentalist.
It is small, ugly and so on …… I believe in Saab, Mercedes, toyota, ford ……Jeeps, Vitara, hummers are allright so long as they are LPG conversion. Better for the environment and cheaper. We in the UK dont have the luxury of cheap petrol like our good American neighbours.
It is so nice to cruise along the motorway in these giants and I honestly feel safer in them rather than smart cars. My car is an old Saab which is the middle ground, reasonable mileage – 40 miles per gallon or so. Comfortable and plenty of space for luggage or shopping or even the odd removal job for the family.
As far I am concerned smart cars are a waste of money but dont tell my husband that. He totally believed in it but then I tend to make the buying decision in the family. Hahahaha.
I was at a lifestyle show recently and saw a Brabus modified SmartCar. As if cool rims and a sparkling exhaust tip are going to make me buy this combination coffin/golfcart! So someone survived a highway collision – they were lucky; the laws of physics cannot be defied forever.
As for Tom Stallkamp, kudos to him for saying that the emperor wore no clothes. Sometimes, mistakes just keep getting pushed along because no one has the cojones to stop this type of corporate idiocy.
Every decade or so, there’s some idiotic green/enviro-type movement designed to guilt us into taking some absurd action. Why not just live right to begin with? Do you really need a two and a half ton SUV to haul your child to soccer practice? Think about where your refuse goes. Don’t pour anti-freeze down the sewer or dump your industrial solvents into the soil. Sooner or later, we’re going to be taking water from that now polluted aquifer.
I don’t need a SmartCar and no enviro-weenie can coerce me into getting one.
There. I said it.
Oooh. Better get off my soapbox before I get vertigo. ; )
Thanks for all the great comments and the Tweets!
If I were a city dweller with no kids, I’d probably be on a bike or motorcycle — more economical than a smart car, both for my wallet and the environment.
I can’t imagine a situation where I’d pay a price premium just to save a few inches on the length of the vehicle — even if I lived in a cramped downtown area.
@Gina – If I’m on I-25 in Denver, just give me something that’s got some get-up-and-go. SUVs are everywhere around here. Just a few days ago I was at the park, and the parking lot was filled with two cars and more than 10 SUVs! You don’t see that anywhere else in the U.S.
@Brian – You said: “If you’re a heterosexual guy and buy this car, you should have your ‘man card’ revoked for at least a year.” What if I drive a pink Vespa? ;-)
@A.J. – I think you make a great suggestion. My overriding environmental philosophy is to live as low impact as possible without getting too extreme. So I recycle, drive less, ride my bike, give away (instead of throw away), avoid using straws, etc.
Thanks again for participating in this conversation!
Ryan
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