The Impact of Technological Advancements in the Luxury Car Market: A Case Study of Mercedes-Benz Sales in the U.S.A

Abstract

This study investigates the influence of technological advancements on Mercedes-Benz's market performance in the U.S. luxury car sector, focusing on the period from 2013 to 2023. Employing multiple regression analysis, the research examines the relationship between key variables: technological adoption rates, sales volume, average selling price, and revenue. The study reveals that while the average selling price significantly enhances revenue, technological adoption contributes positively, though with a less pronounced effect. However, taking such measures as using electric cars and car driving automation technologies has helped Mercedes-Benz to sustain its competitive advantage. Even if this is initially expensive and consumer acceptance or penetration varies, it restricts their immediate revenues. Multiple regression and ANOVA analyses also support the importance of these factors, stressing that an effective pricing policy and constant innovations are crucial for increasing revenue. The result of the study shows that Mercedes-Benz can maintain the leading position in the luxury car segment only if it invests in technological developments and follows the changes in consumer trends. That can only underline the need for further development of technologies in the automotive industry, a situation luxury brands must face in the long run, as they must satisfy consumer demand for high-end features to generate constant revenues.