Jurnal Ekonomi Malaysia
48 (1) 2014 75 – 85
College of Administration and Economics
Al-Qadisiyyah University, Al-Diwaniyah, Iraq
School of Economics, Finance and Banking
Universiti Utara Malaysia, 06010 UUM Sintok, Kedah,
MALAYSIA
Othman Yeop Abdullah Graduate School of Business
Universiti Utara Malaysia, 06010 UUM Sintok, Kedah,
MALAYSIA
Abstract
This paper examines how the choice of three broad categories of automobiles in Malaysia (i.e. Proton, Perodua, and foreign automobiles) is affected by a change in the price of a specific car model. Using a sample of 478 automobile owners in Malaysia, a discrete choice analysis is conducted based on the conditional logit model. In general, it is found that the own-price effect on Proton (Perodua) cars is negatively related to a specific Proton (Perodua) model; in contrast, the cross-price effect on Proton (Perodua) cars is positively related to a specific Perodua (Proton) model. Of the nine models evaluated, three of them show a significant overlapping market segment. This finding implies that Proton and Perodua should differentiate these products further to lessen competition between them.
Keywords
JEL Codes
Bibliography
@article{drebee2014overlapping,
title={Is There an Overlapping Market between National Car Producers in Malaysia?},
author={Drebee, Hayder Abbas and Abdul Razak, Nor Azam and karim, mohd},
journal={Jurnal Ekonomi Malaysia},
volume={48},
number={1},
pages={75—85},
}
Receive updates when new articles are published.