LUXURY SUV POSITIONING: A COMPARATIVE ANALYSIS OF BRAND SIGNALLING STRATEGIES IN BMW, MERCEDES-BENZ, AND AUDI

Ranbeer Chourasia; Piyush Kumar Sinha; Utkarsh Chawla; Makarand Upadhyaya

doi:10.29121/ta9g2d65

Authors

Ranbeer Chourasia Student, (MBA, Marketing, SBM, NMIMS University, Mumbai, India Author
Piyush Kumar Sinha Student, (MBA, General Management, SBM, NMIMS University, Mumbai, India Author
Utkarsh Chawla MBA, Finance, SBM, NMIMS University, Mumbai, India Author
Dr. Makarand Upadhyaya Associate Professor-Marketing, School of Business Management (SBM), NMIMS, Mumbai, India Author

DOI:

https://doi.org/10.29121/ta9g2d65

Keywords:

Luxury Automotive Branding, Brand Signalling Strategies, Luxury SUV Positioning

Abstract

One of the most fiercely contested niches in India's automobile industry is that of luxury sport utility vehicles (SUVs). BMW, Mercedes Benz, and Audi are estimated to share about 85 percent of the premium segment sales volume in this niche. However, despite the fact that each brand offers distinct status signals, the extent to which they differ in their approach and why different customers are attracted to these unique offerings remains inadequately explored. This paper attempts to fill that gap.

The current study proposes a brand signalling framework that has four dimensions: signal legibility, physical dominance, psychological authority, and competence & control. These constructs have been evaluated via a quantitative in-person survey involving 109 owners of luxury SUVs in the state of Mumbai, Maharashtra. The survey comprised 22 perception-related items in the form of a Likert scale and 3 purchase intention-related items. The statistical analysis involved reliability analysis using Cronbach's alpha test (α = 0.867), exploratory factor analysis with varimax rotation (accounting for 70.2% of total variance), multiple regression analysis (R² = 0.432, p<0.001), Pearson correlation, Chi square test for income-brand relationship, and one way ANOVA for demographic differences in age.

Three key perception factors have been observed: Prestige & Dominance, Technology & Performance, and Brand Identity. Prestige & Dominance turned out to be the strongest predictor of purchase intentions (β = 0.292), followed by Brand Identity (β = 0.256) and Technology & Performance (β = 0.179). Interestingly, the brand preferences did not depend on the income level of the customers (χ² = 4.795, p = 0.570). In terms of the perceptual factors, Mercedes Benz seemed to best align with prestige-based positioning, BMW excelled among the performance-orientated younger crowd, and Audi, though technologically strong on perceptions, showed a gap between recognition and aspiration.

Overall, these findings provide a segment-wise comparative brand signalling framework within the scope of luxury automotive branding.

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