QM0035

Zeon Auto Research Inc.

Suziland, a prosperous country belonging to the league of developed nations, had a population of
270 million as of 2012. The country’s growth had kept pace with its population growth. Like any
other developed country, private automobile ownership and market research and consulting
business were common in Suziland too. Among them, Zeon Auto Research Inc. (Zeon) was a
leading market research organization in the country in the field of automotives. With global oil
price coming under pressure of late, the domestic gasoline prices had also been affected in most
countries. Suziland was no exception. This in turn had made automotive buyers in Suziland
sensitive to vehicle performance in terms of mileage per gallon. Mr. Peter A. Waterman
(Waterman), the CEO of Zeon, was keen to understand the factors which influenced vehicle
performance in the perception of the buyers and to make a report on it. He called Ms. Elizabeth
Williams (Elizabeth), Research Analyst at Zeon, and asked her to provide some insights into the
issue. He was also concerned about the difference between city performance and highway
performance in terms of mileage per gallon. Elizabeth designed a study and collected data on 90
vehicles of different models of different makes. The study provided data on a number of features
and performance aspects of the vehicles as shown in the Exhibit I.
Having collected the data, Elizabeth had to identify the factors influencing vehicle performance
and report to Mr. Waterman. Elizabeth had been thinking about how to proceed. She wanted to
find out whether there was a difference in the influence on performance between city drive and
highway drive.
License to use for the Class of 2021,
MBA-Semester – II, IBS Hyderabad.
Course: Business Analytics - 2

This case study was written by L Shridharan and reviewed by R Muthukumar, IBS Hyderabad. It is intended to be used as the basis for class
discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from generalized
experience.
© 2012, IBSCDC.
No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of
the copyright owner.
 Exhibit I
Study Data on the Number of Features and Performance Aspects of the Vehicles
Sr. Type City Hway Air Drv Drv Disp Rev/ Fuel Pass Cap Length Whl Base Width Uturn Rear Seat Lug Cap Weight
Manufacturer Model Type Air Bag DTFr DTRe DTAll Cyl HP RPM
No. Code KmPL KmPL Bag Type Type (L) Km Cap (L) (No.) (in.) (in.) (in.) (ft.) (in.) (cft.) (Kgs)
1 Chrylser Concorde Large 4 8.5 11.9 2 DrvrPass 1 Front 1 0 0 6 3.3 153 5300 1240 70 6 203 113 74 40 31.0 15 1595
2 Mazda Protege Small 2 11.9 15.2 0 None 1 Front 1 0 0 4 1.8 103 5500 1385 55 5 172 98 66 36 26.5 13 1105
3 Chrysler Imperial Large 4 8.5 11.0 1 Driver 1 Front 1 0 0 6 3.3 147 4800 1115 60 6 203 110 69 44 36.0 17 1620
4 Ford Probe Sporty 5 10.2 12.7 1 Driver 1 Front 1 0 0 4 2.0 115 5500 1460 60 4 179 103 70 38 23.0 18 1230
5 Pontiac Grand_Prix Midsize 3 8.0 11.4 0 None 1 Front 1 0 0 6 3.4 200 5000 1180 60 5 195 108 72 41 28.5 16 1565
6 Ford Crown_Victoria Large 4 7.6 11.0 1 Driver 0 Rear 0 1 0 8 4.6 190 4200 880 75 6 212 114 78 43 30.0 21 1790
7 Honda Accord Compact 1 10.2 13.1 2 DrvrPass 1 Front 1 0 0 4 2.2 140 5600 1630 65 4 185 107 67 41 28.0 14 1380
8 Lincoln Town_Car Large 4 7.6 11.0 2 DrvrPass 0 Rear 0 1 0 8 4.6 210 4600 1150 75 6 219 117 77 45 31.5 22 1840
9 Buick Riviera Midsize 3 8.0 11.4 1 Driver 1 Front 1 0 0 6 3.8 170 4800 1055 70 5 198 108 73 41 26.5 14 1585
10 Mazda MPV Van 6 7.6 10.2 0 None 2 All 0 0 1 6 3.0 155 5000 1400 75 7 190 110 72 39 27.5 * 1695
11 Mazda 626 Compact 1 11.0 14.4 1 Driver 1 Front 1 0 0 4 2.5 164 5600 1565 60 5 184 103 69 40 29.5 14 1345
12 Audi 90 Compact 1 8.5 11.0 1 Driver 1 Front 1 0 0 6 2.8 172 5500 1425 65 5 180 102 67 37 28.0 14 1530
13 Volkswagen Fox Small 2 10.6 14.0 0 None 1 Front 1 0 0 4 1.8 81 5500 1590 45 4 163 93 63 34 26.0 10 1015
14 Subaru Legacy Compact 1 9.7 12.7 1 Driver 2 All 0 0 1 4 2.2 130 5600 1455 60 5 179 102 67 37 27.0 14 1400
15 Audi 100 Midsize 3 8.0 11.0 2 DrvrPass 1 Front 1 0 0 6 2.8 172 5500 1580 80 6 193 106 70 37 31.0 17 1545
16 BMW 535i Midsize 3 9.3 12.7 1 Driver 0 Rear 0 1 0 4 3.5 208 5700 1590 80 4 186 109 69 39 27.0 13 1650
17 Dodge Dynasty Midsize 3 8.9 11.4 1 Driver 1 Front 1 0 0 4 2.5 100 4800 1540 60 6 192 105 69 42 30.5 16 1395
18 Dodge Spirit Compact 1 9.3 11.4 1 Driver 1 Front 1 0 0 4 2.5 100 4800 1580 60 6 181 104 68 39 30.5 14 1345
19 Ford Aerostar Van 6 6.3 8.5 1 Driver 2 All 0 0 1 6 3.0 145 4800 1300 80 7 176 119 72 45 30.0 * 1695
20 Volvo 240 Compact 1 8.9 11.9 1 Driver 0 Rear 0 1 0 4 2.3 114 5400 1380 60 5 190 104 67 37 29.5 14 1355
21 Toyota Tercel Small 2 13.5 15.7 1 Driver 1 Front 1 0 0 4 1.5 82 5200 2190 45 5 162 94 65 36 24.0 11 930
22 Volvo 850 Midsize 3 8.5 11.9 2 DrvrPass 1 Front 1 0 0 5 2.4 168 6200 1440 75 5 184 105 69 38 30.0 15 1470
23 Ford Tempo Compact 1 9.3 11.4 0 None 1 Front 1 0 0 4 2.3 96 4200 1750 60 5 177 100 68 39 27.5 13 1220
24 Volkswagen Corrado Sporty 5 7.6 10.6 0 None 1 Front 1 0 0 6 2.8 178 5800 1490 70 4 159 97 66 36 26.0 15 1275
25 Toyota Camry Midsize 3 9.3 12.3 1 Driver 1 Front 1 0 0 4 2.2 130 5400 1460 70 5 188 103 70 38 28.5 15 1375
26 Chevrolet Astro Van 6 6.3 8.5 0 None 2 All 0 0 1 6 4.3 165 4000 1115 100 8 194 111 78 42 33.5 * 1825
27 Volkswagen Eurovan Van 6 7.2 8.9 0 None 1 Front 1 0 0 5 2.5 109 4500 1820 80 7 187 115 72 38 34.0 * 1795
28 Buick LeSabre Large 4 8.0 11.9 1 Driver 1 Front 1 0 0 6 3.8 170 4800 980 70 6 200 111 74 42 30.5 17 1575
29 Nissan Quest Van 6 7.2 9.7 0 None 1 Front 1 0 0 6 3.0 151 4800 1290 75 7 190 112 74 41 27.0 * 1860
30 Oldsmobile Silhouette Van 6 7.6 9.7 0 None 1 Front 1 0 0 6 3.8 170 4800 1055 75 7 194 110 74 44 30.5 * 1685

2
Sr. Type City Hway Air Drv Drv Disp Rev/ Fuel Pass Cap Length Whl Base Width Uturn Rear Seat Lug Cap Weight
Manufacturer Model Type Air Bag DTFr DTRe DTAll Cyl HP RPM
No. Code KmPL KmPL Bag Type Type (L) Km Cap (L) (No.) (in.) (in.) (in.) (ft.) (in.) (cft.) (Kgs)
31 Pontiac LeMans Small 2 13.1 17.4 0 None 1 Front 1 0 0 4 1.6 74 5600 1955 50 4 177 99 66 35 25.5 17 1065
32 Chrysler LeBaron Compact 1 9.7 11.9 2 DrvrPass 1 Front 1 0 0 4 3.0 141 5000 1305 60 6 183 104 68 41 30.5 14 1400
33 Nissan Altima Compact 1 10.2 12.7 1 Driver 1 Front 1 0 0 4 2.4 150 5600 1330 60 5 181 103 67 40 28.5 14 1380
34 Acura Legend Midsize 3 7.6 10.6 2 DrvrPass 1 Front 1 0 0 6 3.2 200 5500 1455 70 5 195 115 71 38 30.0 15 1615
35 Chevrolet Lumina Midsize 3 8.9 12.3 0 None 1 Front 1 0 0 4 2.2 110 5200 1620 60 6 198 108 71 40 28.5 16 1450
36 Ford Mustang Sporty 5 9.3 12.3 1 Driver 0 Rear 0 1 0 4 2.3 105 4600 1425 60 4 180 101 68 40 24.0 12 1290
37 Mazda 323 Small 2 12.3 15.7 0 None 1 Front 1 0 0 4 1.6 82 5000 1480 50 4 164 97 66 34 27.0 16 1055
38 Suzuki Swift Small 2 16.5 18.2 0 None 1 Front 1 0 0 3 1.3 70 6000 2100 40 4 161 93 63 34 27.5 10 890
39 Dodge Shadow Small 2 9.7 12.3 1 Driver 1 Front 1 0 0 4 2.2 93 4800 1620 50 5 172 97 67 38 26.5 13 1210
40 Honda Civic Small 2 17.8 19.5 1 Driver 1 Front 1 0 0 4 1.5 102 5900 1655 45 4 173 103 67 36 28.0 12 1065
41 Subaru Loyale Small 2 10.6 12.7 0 None 2 All 0 0 1 4 1.8 90 5200 2105 60 5 175 97 65 35 27.5 15 1130
42 Chevrolet Camaro Sporty 5 8.0 11.9 2 DrvrPass 0 Rear 0 1 0 6 3.4 160 4600 1125 60 4 193 101 74 43 25.0 13 1470
43 Chevrolet Lumina_APV Van 6 7.6 9.7 0 None 1 Front 1 0 0 6 3.8 170 4800 1055 75 7 178 110 74 44 30.5 * 1685
44 Geo Storm Sporty 5 12.7 15.2 1 Driver 1 Front 1 0 0 4 1.6 90 5400 2030 45 4 164 97 67 37 24.5 11 1120
45 Hyundai Excel Small 2 12.3 14.0 0 None 1 Front 1 0 0 4 1.5 81 5500 1690 45 5 168 94 63 35 26.0 11 1060
46 Mitsubishi Diamante Midsize 3 7.6 10.2 1 Driver 1 Front 1 0 0 6 3.0 202 6000 1380 70 5 190 107 70 43 27.5 14 1690
47 Lincoln Continental Midsize 3 7.2 11.0 2 DrvrPass 1 Front 1 0 0 6 3.8 160 4400 1145 70 6 205 109 73 42 30.0 19 1675
48 Hyundai Sonata Midsize 3 8.5 11.4 0 None 1 Front 1 0 0 4 2.0 128 6000 1455 65 5 184 104 69 41 31.0 14 1305
49 Oldsmobile Eighty-Eight Large 4 8.0 11.9 1 Driver 1 Front 1 0 0 6 3.8 170 4800 980 70 6 201 111 74 42 31.5 17 1575
50 Eagle Vision Large 4 8.5 11.9 2 DrvrPass 1 Front 1 0 0 6 3.5 214 5800 1235 70 6 202 113 74 40 30.0 15 1580
51 Nissan Maxima Midsize 3 8.9 11.0 1 Driver 1 Front 1 0 0 6 3.0 160 5200 1275 70 5 188 104 69 41 28.5 14 1450
52 Dodge Stealth Sporty 5 7.6 10.2 1 Driver 2 All 0 0 1 6 3.0 300 6000 1325 75 4 180 97 72 40 20.0 11 1725
53 Pontiac Bonneville Large 4 8.0 11.9 2 DrvrPass 1 Front 1 0 0 6 3.8 170 4800 975 70 6 177 111 74 43 30.5 18 1585
54 Saab 900 Compact 1 8.5 11.0 1 Driver 1 Front 1 0 0 4 2.1 140 6000 1815 70 5 184 99 67 37 26.5 14 1255
55 Infiniti Q45 Midsize 3 7.2 9.3 1 Driver 0 Rear 0 1 0 8 4.5 278 6000 1220 85 5 200 113 72 42 29.0 15 1815
56 Oldsmobile Cutlass_Ciera Midsize 3 9.7 13.1 1 Driver 1 Front 1 0 0 4 2.2 110 5200 1600 60 5 190 105 70 42 28.0 16 1310
57 Acura Integra Small 2 10.6 13.1 0 None 1 Front 1 0 0 4 1.8 140 6300 1805 50 5 177 102 68 37 26.5 11 1225
58 Pontiac Firebird Sporty 5 8.0 11.9 2 DrvrPass 0 Rear 0 1 0 6 3.4 160 4600 1125 60 4 196 101 75 43 25.0 13 1470
59 Buick Century Midsize 3 9.3 13.1 1 Driver 1 Front 1 0 0 4 2.2 110 5200 1600 60 6 189 105 69 41 28.0 16 1305
60 Dodge Colt Small 2 12.3 14.0 0 None 1 Front 1 0 0 4 1.5 92 6000 2050 50 5 174 98 66 32 26.5 11 1030
61 Nissan Sentra Small 2 12.3 14.0 1 Driver 1 Front 1 0 0 4 1.6 110 6000 1520 50 5 170 96 66 33 26.0 12 1155
62 Dodge Caravan Van 6 7.2 8.9 1 Driver 2 All 0 0 1 6 3.0 142 5000 1230 75 7 175 112 72 42 26.5 * 1680

3
Sr. Type City Hway Air Drv Drv Disp Rev/ Fuel Pass Cap Length Whl Base Width Uturn Rear Seat Lug Cap Weight
Manufacturer Model Type Air Bag DTFr DTRe DTAll Cyl HP RPM
No. Code KmPL KmPL Bag Type Type (L) Km Cap (L) (No.) (in.) (in.) (in.) (ft.) (in.) (cft.) (Kgs)
63 Subaru Justy Small 2 14.0 15.7 0 None 2 All 0 0 1 3 1.2 73 5600 1795 35 4 146 90 60 32 23.5 10 925
64 Saturn SL Small 2 11.9 16.1 1 Driver 1 Front 1 0 0 4 1.9 85 5000 1340 50 5 176 102 68 40 26.5 12 1130
65 Hyundai Elantra Small 2 9.3 12.3 0 None 1 Front 1 0 0 4 1.8 124 6000 1715 50 5 172 98 66 36 28.0 12 1185
66 Cadillac DeVille Large 4 6.8 10.6 1 Driver 1 Front 1 0 0 8 4.9 200 4100 940 70 6 206 114 73 43 35.0 18 1640
67 Chevrolet Caprice Large 4 7.2 11.0 1 Driver 0 Rear 0 1 0 8 5.0 170 4200 840 85 6 214 116 77 42 29.5 20 1775
68 Mazda RX-7 Sporty 5 7.2 10.6 1 Driver 0 Rear 0 1 0 * 1.3 255 6500 1450 75 2 169 96 69 37 * * 1310
69 Mercury Cougar Midsize 3 8.0 11.0 0 None 0 Rear 0 1 0 6 3.8 140 3800 1080 70 5 199 113 73 38 28.0 15 1635
70 Honda Prelude Sporty 5 10.2 13.1 2 DrvrPass 1 Front 1 0 0 4 2.3 160 5800 1780 60 4 175 100 70 39 23.5 8 1300
71 Pontiac Sunbird Compact 1 9.7 13.1 0 None 1 Front 1 0 0 4 2.0 110 5200 1665 55 5 181 101 66 39 25.0 13 1165
Mercedes-
72 Benz 300E Midsize 3 8.0 10.6 2 DrvrPass 0 Rear 0 1 0 6 3.2 217 5500 1385 70 5 187 110 69 37 27.0 15 1600
73 Ford Festiva Small 2 13.1 14.0 0 None 1 Front 1 0 0 4 1.3 63 5000 1965 35 4 141 90 63 33 26.0 12 835
74 Eagle Summit Small 2 12.3 14.0 0 None 1 Front 1 0 0 4 1.5 92 6000 1565 50 5 174 98 66 36 26.5 11 1040
75 Chevrolet Cavalier Compact 1 10.6 15.2 0 None 1 Front 1 0 0 4 2.2 110 5200 1485 55 5 182 101 66 38 25.0 13 1130
76 Ford Taurus Midsize 3 8.9 12.7 1 Driver 1 Front 1 0 0 6 3.0 140 4800 1175 60 5 192 106 71 40 27.5 18 1505
77 Mitsubishi Mirage Small 2 12.3 14.0 0 None 1 Front 1 0 0 4 1.5 92 6000 1565 50 5 172 98 67 36 26.0 11 1040
78 Cadillac Seville Midsize 3 6.8 10.6 2 DrvrPass 1 Front 1 0 0 8 4.6 295 6000 1240 75 5 204 111 74 44 31.0 14 1785
79 Chevrolet Corvette Sporty 5 7.2 10.6 1 Driver 0 Rear 0 1 0 8 5.7 300 5000 905 75 2 179 96 74 43 * * 1530
80 Toyota Celica Sporty 5 10.6 13.5 1 Driver 1 Front 1 0 0 4 2.2 135 5400 1500 60 4 174 99 69 39 23.0 13 1335
81 Oldsmobile Achieva Compact 1 10.2 13.1 0 None 1 Front 1 0 0 4 2.3 155 6000 1485 60 5 188 103 67 39 28.0 14 1320
82 Geo Metro Small 2 19.5 21.2 0 None 1 Front 1 0 0 3 1.0 55 5700 2345 40 4 151 93 63 34 27.5 10 765
83 Volkswagen Passat Compact 1 8.9 12.7 0 None 1 Front 1 0 0 4 2.0 134 5800 1675 70 5 180 103 67 35 31.5 14 1355
84 Lexus SC300 Midsize 3 7.6 9.7 2 DrvrPass 0 Rear 0 1 0 6 3.0 225 6000 1565 75 4 191 106 71 39 25.0 9 1595
85 Plymouth Laser Sporty 5 9.7 12.7 0 None 2 All 0 0 1 4 1.8 92 5000 1475 60 4 173 97 67 39 24.5 8 1195
86 Toyota Previa Van 6 7.6 9.3 1 Driver 2 All 0 0 1 4 2.4 138 5000 1570 75 7 187 113 71 41 35.0 * 1715
87 Lexus ES300 Midsize 3 7.6 10.2 1 Driver 1 Front 1 0 0 6 3.0 185 5200 1450 70 5 188 103 70 40 27.5 14 1590
88 Buick Roadmaster Large 4 6.8 10.6 1 Driver 0 Rear 0 1 0 6 5.7 180 4000 825 90 6 216 116 78 45 30.5 21 1860
89 Chevrolet Corsica Compact 1 10.6 14.4 1 Driver 1 Front 1 0 0 4 2.2 110 5200 1665 60 5 184 103 68 39 26.0 14 1260
90 Mercury Capri Sporty 5 9.7 11.0 1 Driver 1 Front 1 0 0 4 1.6 100 5750 1545 40 4 166 95 65 36 19.0 6 1110