Journal of Open Innovation: Technology, Market,and Complexity 9 (2023) 100031

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Journal of Open Innovation: Technology, Market,

and Complexity
journal homepage: www.sciencedirect.com/journal/joitmc

Driving success: A segmentation of customer admiration in automotive

industry ]]
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Hartoyo Hartoyoa, Erwin Manalua, , Ujang Sumarwanb, Popong Nurhayatia

⁎

a
School of Business, IPB University, West Java 16128, Indonesia
b
Department of Family and Consumer Sciences, Faculty of Human Ecology, IPB University, West Java 16680, Indonesia

A R T I C L E I N F O A B S T R A C T

Keywords: To stay relevant with the ever-changing customers, companies have to create value by perpetually evolving the
Brand admiration relationship between their brand and customers. The enduring success from the world’s most well-known au-
Segmentation tomotive brands such as BMW, Mercedes-Benz, and Harley-Davidson can be attributed because they are ad-
Consumer behavior mired. However, to build customer’s admiration, a brand has to understand who those customers are, what
Self-congruence
motivates them, why they will admire a certain brand, and how they will admire it. This study formulates
Marketing
customer segmentation in the context of their admiration towards car brands in Indonesia. The variables used to
segment the customers are demographics, motivation, reference group, current car usage and information
channel they use. Analysis methods used in this quantitative research are cluster analysis, cross-tabulation, and
multiple discriminant analysis to process the research data collected from 501 respondents via an online
questionnaire. The result generates three customer segments: the Dreamer who dreams high but never bought a
car before, the Working for Success who currently have an entry-level car looking for an upgrade. Lastly, the
Family Oriented who have the biggest disposable income and are influenced by their family when admiring a car
brand. For industry players, this research is expected to provide insight into the characteristics of each customer
segment as a guide in implementing relevant strategies for each segment. While for the academic aspect, this
study contributes new information in the area of brand management.

1. Introduction
Nowadays, there is a big shift in how technology changes busi-
nesses, culture, and consumers. Faced with this shift, companies had to
adapt to market changes. It is also common that companies have re-
structured their business models due to this evolution (Hossain et al.,
2020). To build sustainable customer retention, companies must create
a constant innovative relationship between customer and the brand
(Cardoso et al., 2022).
How companies create value through brand will be determined by its
relationship with consumers. Often, this means companies have to re-
position their brands to stay relevant. In response to this situation, Park
et.al. (2016) attempts to create a more comprehensive brand framework,
called brand admiration (Park et al., 2016). They argued that in order to
have a sustainable, strong, and meaningful consumer-brand relationship, a
brand has to aim to be admired. This admiration is elicited by three
variables, brand trust, brand love, and brand respect. Brand trust is related
to how well the brand solves its customer problem. Brand love is related to
how the brand entices customer senses, and brand respect is when a brand
presents the aspect of self-enrichment for the consumer. The discussion of
brand admiration has received only little attention from scholars in the
literature. Nevertheless, it is found that there are a lot of benefits from
having an admired brand, such as increase in consumer loyalty, higher
revenue, increase in company’s assets, and better profitability (Park et al.,
2016). Prior studies found about brand admiration by Gupta et.al. (2021)
found brand admiration as a mediating variable between CSR and pur-
chase intention, brand admiration as an independent variable on corporate
social responsibility and brand reputation, and admiration in the context
of country of origin (Gupta et al., 2021; Munteanu et al., 2014; Maher and
Carter, 2011).
To build admiration, marketers need to understand clearly the po-
tential customers they have to target. Marketers cannot satisfy different

Corresponding author.
⁎

E-mail addresses: hartoyo@apps.ipb.ac.id (H. Hartoyo), erwinpribadi@apps.ipb.ac.id, erwinpribadi@apps.ac.id (E. Manalu),

sumarwan@apps.ipb.ac.id (U. Sumarwan), popong@apps.ipb.ac.id (P. Nurhayati).

https://doi.org/10.1016/j.joitmc.2023.100031
Received 28 December 2022; Received in revised form 17 March 2023; Accepted 3 April 2023
Available online 5 April 2023
2199-8531/© 2023 The Author(s). Published by Elsevier Ltd on behalf of Prof JinHyo Joseph Yun. This is an open access article under the CC BY license (http://
creativecommons.org/licenses/by/4.0/).
H. Hartoyo, E. Manalu, U. Sumarwan et al.
types of consumers with just one product or service because of different
consumer needs, preferences, and wants. Market segmentation is
needed to categorize consumers to be more homogeneous. A market
segment consists of a group of consumers with homogeneous needs and
wants so that marketing strategies can be more targeted and increase
business focus. Segmentation can be done based on various criteria such
as demographics (age, gender, education, and income), behavior (for
example: based on purchases), geography (region, location), psycho-
graphics (motivation, lifestyle) and so on (Elliot and Barth, 2012).
This study focuses specifically on the Indonesian automotive in-
dustry, which is an area that has not been extensively studied in the
existing literature. Indonesia has the biggest automotive market size in
ASEAN, with increasing purchasing power, and low car ownership. This
market opportunity has attracted well-known car manufacturers to
build a business in Indonesia. The Indonesian government stated that in
2021 the automotive sector reached 9 billion USD worth of investment,
and there are 38 car brands registered and doing business in Indonesia.
Some of the brand origins are Japanese, Germans, Koreans, and
Chinese.
This research can provide new insights into this specific market and
help companies operating in Indonesia better understand their custo-
mers' needs and preferences. The article identifies three specific cus-
tomer segments based on the research data, which can provide com-
panies with a clearer understanding of their customer base and help
them to target their marketing efforts more effectively. In addition to
that, while customer segmentation is a well-established practice in
marketing research, this article's focus on segmenting customers based
on their admiration of car brands is unique. This approach can provide
new insights into the factors that drive brand loyalty and help com-
panies tailor their marketing strategies accordingly. Overall, this article
focuses on admiration-based customer segmentation in the Indonesian
automotive market. One of the key strengths that this study provides is
that the admiration-based segmentation focuses on emotions rather
than rational decision-making factors. This approach recognizes that
consumers may often make decisions based on how they feel about a
product, rather than on purely objective criteria such as price or fuel
economy. By identifying the emotional triggers that inspire admiration,
automotive companies can design cars that resonate with consumers on
a deeper level and create long-term brand loyalty.
The main objective in this study is to understand what are the fac-
tors that influence consumers to admire a car brand, who are those
consumers, why they admire, what is their motivation to admire the
brand, who influences them, and how they keep up-to-date with recent
news about the brand. To achieve that objective there are 3 specific
research questions: (1) How is the customers segmented based on their
car brand admiration? (2) What is the customer’s motivation to admire
a certain car brand?, and (3) what are the characteristics of each cus-
tomer segment?. This study provides understanding into the char-
acteristics of customers to be used as a basis for strategy to build an
admired brand. In Section 2, the literature review is summarized. The
design of the research and the methodology are detailed in Section 3. In
Section 4, the results of the empirical study are presented and analyzed.
Section 5 discusses the results, and Section 6 summarizes the conclu-
sions.
2. Literature review
Customer segmentation is a critical marketing strategy that involves
dividing customers into smaller groups based on similar characteristics
such as demographics, psychographics, behaviors, and needs (Kotler
et al., 2015). While previous studies on customer segmentation provide
valuable insights into consumer behavior, they also have some limita-
tions that will be addressed in this research, such as the use of a broader
focus on psychographic and behavioral variables, and a more in-depth
analysis of the implications of customer segments for marketing
strategy. There are also very limited studies on customer segmentation
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Journal of Open Innovation: Technology, Market,and Complexity 9 (2023) 100031
in Indonesia (Davis and Maull, 2016; Fournier, 1998; Kim and Yoon,
2014). Admiration-based segmentation conducted in this study focuses
on emotional decision-making factors. This approach recognizes that
consumers often make decisions based on how they feel about a pro-
duct, rather than on purely objective criteria such as price or fuel
economy. By identifying the emotional triggers that inspire admiration,
automotive companies can design cars that resonate with consumers on
a deeper level and create long-term brand loyalty.
Millennials and Gen Z in Indonesia prioritize practicality, tech-
nology, and sustainability in their car choices. They value experiences
over ownership, customization, and online research. These preferences
are shaping the automotive market, leading to a shift towards eco-
friendly, tech-savvy, and customizable cars (Bauer and Gen, 2021).
Millennials and Gen Z are two generations that have grown up in the
digital age, with access to technology and information that previous
generations did not have. This has led to changes in their behaviors,
attitudes, and preferences, including in the automotive market (Zhang
et al., 2020). While previous generations were more loyal to specific car
brands, millennials and Gen Z are less so. They are more willing to
switch brands based on their changing needs and preferences (Lim and
Rong, 2021). To understand how a brand is admired, first marketers
have to understand customers characteristics and preferences.
Previous literature reviews show that automotive admiration can
vary widely across different countries in Asia due to differences in
culture, consumer preferences, and economic development. For ex-
ample, in developed countries like South Korea and Japan, domestic
automakers like Hyundai and Toyota tend to dominate the market due
to strong national pride and a desire to support local industries (Wong,
2020). In contrast, in countries like China and India, there is a growing
demand for Western luxury car brands as a status symbol among the
growing middle class (Ye et al., 2020). Additionally, factors such as
government regulations, infrastructure, and consumer education can
also affect automotive admiration (Krishnan and Venkatraman, 2019).
For example, in countries with well-developed public transportation
systems like Singapore and Hong Kong, car ownership may be seen as
less necessary and less desirable than in countries with less developed
infrastructure (Huang et al., 2021).
The ASEAN region, which includes 10 countries in Southeast Asia, is
a large and diverse market for cars. The region is home to over 650
million people, and its rapidly growing middle class has become an im-
portant driver of car sales in recent years. Japanese car brands have
traditionally dominated the ASEAN market, with Toyota, Honda, and
Nissan being among the most popular brands (Sang and Lee, 2020; Han
et al., 2020). However, in recent years, Korean brands such as Hyundai
have also gained significant market share (Lee and Kwon, 2020). It's
worth noting that customer preferences can vary significantly by
country. For example, pickup trucks are very popular in Thailand. This is
driven by a combination of factors, including their versatility, afford-
ability, cultural significance, and government policies that support the
domestic automotive industry (Rattanawong and Chinnakit, 2019). In
Malaysia, domestic car brands such as Proton and Perodua are the most
popular (Mamat and Selamat, 2020). Similar to Malaysia, domestic car
brands like VinFast and Truong Hai (Thaco) have also gained popularity
in Vietnam in recent years. Meanwhile, the Philippines have limited
domestic production of vehicles, with most cars sold in the Philippines
being imported from other countries (Matsumoto and Ngo, 2020). On the
other hand, Indonesia is the largest automotive market in Southeast Asia,
with a population of over 270 million people. It has high demand for
affordable vehicles. Most of the popular car brands in Indonesia are from
Japan, with Toyota, Daihatsu, Honda, Suzuki, and Mitsubishi being the
most popular. However, there are also car brands from other countries
such as South Korea, including Kia and Hyundai. Additionally, some
luxury car brands from Europe and the United States are also available in
Indonesia, but they are generally having less population due to their
higher prices. Chinese car brands have also expanded their business in
Indonesia with the presence of Wuling, Cherry and DFSK.
H. Hartoyo, E. Manalu, U. Sumarwan et al. Journal of Open Innovation: Technology, Market,and Complexity 9 (2023) 100031

Demographic data is an important statistic that describes a popu- Table 1

lation and is a popular factor used by marketers. Consumers' needs, Significance of the segmentation variables.
wants, and brand preferences are often associated with demographic Variables F Sig
variables. By examining the demographic segments of consumers who
admire a brand, marketers can see changes in demand and determine Age 2.983 0.052
the target market for the products offered. The demographic char- Car ownership 4.152 0.016
Brand owned 1555.944 0.000
acteristics used in this study are age, gender, income, education, oc- Type of car 29.480 0.000
cupation, and number of household members. The types of brands that Primary transport 6.731 0.001
people are looking for will change as they age and develop in their life Gender 2.905 0.056
cycle. Household income 9.664 0.000
Occupation 2.250 0.107
A motive is a need that is sufficiently pressing to induce a person to
Education 6.316 0.002
act (Kotler and Keller, 2016a). Motivation is the process or act of pro- Household size 0.887 0.413
viding a motive that causes someone to take an action. According to Admired brand 1742.003 0.000
several theories, motivation is rooted in a basic need to maximize Preferred type 0.421 0.657
pleasure, minimize physical pain, or satisfy one's desire for a goal, state, Information channel 0.704 0.495
Motivation 1464.771 0.000
or object. When a need arises, there will be pressure that encourages
Reference group 3.905 0.021
consumers to try to fulfill that need. This study seeks to understand the
motivation underlying a customer's admiration for a certain car brand. Based on the analysis carried out segment 1 will be named the Working for
The consumers' buying journey starts from the acknowledgment of Success, segment 2 is the Dreamers, and segment 3 the Family Oriented.
the need, seeking for information, exploring alternative products or
service, transaction and consumption. When selecting a particular the participants in accordance with the national legislation and the
brand, consumers usually use the information or recommendation that institutional requirements.
they have from sources given by friends or family. Previous literature After the data is collected, cluster analysis is carried out to form
has argued that reference groups can influence how consumers feel consumer segmentation. Cluster analysis splits data into clusters of files
about a brand (Ramanathan and McGill, 2007) and can influence their that have similar patterns and placing them in the same groups
purchasing decisions (Escalas and Bettman, 2015). Some reference (Mousavi et al., 2022). Cluster analysis is useful for study where there is
groups exist because they are related to the consumption of a brand or no prior understanding about the predefined output for the predictions
product (Muniz and O’Guinn, 2001). The most common reference by the model. To process behavioral variables on a nominal scale, the
groups are family, friends and coworkers and also their role models statistical method cross-tabulation analysis (crosstab) will be used,
(Kaufmann et al., 2012). An individual can also join and get influence which is useful for tabulating several different variables into a matrix,
from multiple reference groups (Luna et al., 2008). Reference groups so that it will be able to identify and confirm various clusters formed
have key influences on individuals’ attitudes, beliefs, and decisions. through previous cluster analysis. After forming the market segments,
the data processing is performed using the multiple discriminant ana-
3. Materials and Methods lysis (MDA) method to test whether there are differences between the
segments formed, so that the appropriate insights can be formed for
An online Google forms questionnaire was used in this study. The each segment.
first part contained demographic information such as age, occupation,
education, sex, household income, and household size (Kotler and 4. Results
Keller, 2016b). The second part contained car-related information such
as the brand they admire, preferred car type, current car ownership, Based on Table 1, it is known that the majority of variables have
current type of car, and current mode of transportation (Gaikindo.or.id/ significant differences between cluster 1, cluster 2, and cluster 3 (sig-
indonesian-automobile-industry-data, 2021). The third part contained nificance value < 0.05). Even though the variables of age, gender, oc-
information such as their motivation to admire a certain brand, who cupation, and number of people in the family did not differ significantly
influenced them, and how they gained information about that brand between cluster 1, cluster 2, and cluster 3 (the significance value >
(Kotler and Scheff, 1997). 0.05).
As of 2021, Indonesia has a population of approximately 276 million After segmentation carried out, it can be seen in Table 2 that the
people. The millennial population in Indonesia was estimated to be number of members of segment 1 is 90 people or 17.96% of the entire
around 86 million, while the Generation Z population was around 60 population, segment 2 is dominant segment with 377 people or 75.25%
million. This means that millennials and Gen Z together make up more of the entire population, and segment 3 is a niche segment with 34
than half of the total population in Indonesia (Firdausy and Handoko, people or 6.78% of the entire population.
2020). Automotive customers living in Jakarta are chosen because Ja- From the demographic standpoint, Tables 3–8 shows the char-
karta is frequently used as a benchmark for the development of future acteristics of the three segments. The Working for Success (segment 1)
automobile buyers. Due to the ongoing COVID-19 pandemic in Jakarta, is dominated by the millennial age group and followed by gen Z, the
the information was gathered through online questionnaires. Purposive Dreamers (segment 2) is dominated by gen Z, while the distribution of
sampling was used in advance according to predetermined criteria, the age group in the Family Oriented (segment 3) is dominated by
namely domicile must be in Jakarta, have a car or at least planning to millennials. In terms of gender, the Working for Success and the Family
have a car, and must be a millennial and gen Z category. The "10-times
rule" method is a frequently employed minimum sample size estimation Table 2
method in PLS-SEM (Hair et al., 2009). It is based on the idea that the Segment members based on demo-
sample size should be greater than 10 times the maximum number of graphics.
inner or outer model links pointing at any latent variable in the model. Segment F
Up to 569 respondents were contacted personally to acquire primary
data, and the responses collected were 501. Ethical review and approval 1 90
were not required for the study on human participants in accordance 2 377
3 34
with the local legislation and institutional requirements. Written in-
Total 501
formed consent to participate in this study was also not required from

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H. Hartoyo, E. Manalu, U. Sumarwan et al. Journal of Open Innovation: Technology, Market,and Complexity 9 (2023) 100031

Table 3 Table 9
Age group crosstab results. Car Ownership crosstab results.

Variables Segment 1 Segment 2 Segment 3 Variables Segment 1 Segment 2 Segment 3

Gen Z 8.4% 44.4% 3.0% Own a car 13.0% 36.4% 5.8%

Millennials 9.6% 31.0% 3.6% Doesn’t have a car 0.0% 32.2% 0.0%
Had a car before 5.0% 6.8% 0.8%

Table 4
Gender group crosstab results. Table 10
Car Type Owned crosstab results.
Variables Segment 1 Segment 2 Segment 3
Variables Segment 1 Segment 2 Segment 3
Male 10.4% 36.6% 4.4%
Female 7.6% 38.8% 2.2% SUV 2.4% 6.2% 0.8%
Low-cost green car 6.8% 8.8% 1.0%
MPV 6.6% 19.2% 1.6%
Table 5 Hatchback 1.4% 4.6% 1.2%
Occupation crosstab results. Sedan 0.6% 4.0% 2.0%
Sport Car 0.2% 0.4% 0.0%
Variables Segment 1 Segment 2 Segment 3 Don’t have a car 0.0% 32.2% 0.0%

Student 5.0% 29.2% 2.2%

Entrepreneur 2.6% 7.6% 1.2% Table 11
Employee 8.8% 34.8% 2.6%
Primary mode of transportation crosstab results.
Housewife 0.0% 1.4% 0%
Civil worker 1.6% 2.4% 0.6% Variables Segment 1 Segment 2 Segment 3

Private car 5.8% 12.6% 3.0%

Table 6 Motorcycle 8.8% 48.4% 3.0%
Household size crosstab results. Online Transportation 2.6% 7.0% 0.4%
Public transportation 0.8% 7.4% 0.2%
Variables Segment 1 Segment 2 Segment 3

1–2 person 1.4% 8.8% 0.6% Table 12

3–5 person 13.8% 57.6% 5.2%
Admired Car Brand.
> 5 person 2.8% 9% 0.8%
Variables Segment 1 Segment 2 Segment 3

Table 7 Audi 1.0% 3.2% 0.4%

Income range crosstab results. Hyundai 3.2% 1.4% 0.0%
Ferrari 0.8% 3.8% 0.2%
Variables Segment 1 Segment 2 Segment 3 Honda 1.8% 11.0% 0.4%
Mercedes-Benz 1.6% 7.6% 0.2%
< 5 million 3.8% 20.6% 1% BMW 1.4% 12.6% 2.6%
5 – 9.99 million 5.2% 27.4% 1.4% Jeep 0.8% 2.4% 0.4%
10 – 24.99 million 5.2% 16.4% 1.8% Mazda 0.0% 2.4% 0.2%
25 – 49.99 million 2.8% 5.0% 0.8% Lamborghini 0.6% 5.0% 0.2%
50 – 74.99 million 0.6% 3.6% 0.4% Mitsubishi 0.6% 4.4% 0.4%
75 – 99.99 million 0.4% 1.6% 0.4% Wuling 0.0% 0.6% 0.4%
> 100 million 0% 0.8% 0.8% KIA 0.2% 0.6% 0.0%
Toyota 0.8% 7.6% 0.0%
Lexus 2.0% 2.8% 0.4%
Table 8 Porsche 0.6% 2.4% 0.0%
Education range crosstab results. Ford 0.2% 1.2% 0.0%
Jaguar 0.2% 0.4% 0.0%
Variables Segment 1 Segment 2 Segment 3 Suzuki 0.4% 0.6% 0.0%
MINI 0.6% 1.8% 0.2%
Up to high school 5.6% 34.0% 2.0% VW 0.0% 1.6% 0.0%
Diploma 2.6% 8.8% 1.0% Nissan 0.0% 0.2% 0.4%
Bachelor 8.0% 30.8% 2.6% Land Rover 0.6% 1.6% 0.2%
Master 1.2% 1.6% 0.8%
PhD 0.6% 0.2% 0.2%
motorcycles. From Table 12 it is known that the most admired car
brand in the Working for Success segment is Hyundai, and BMW is the
Oriented are dominated by male, and females are found to dominate the
most admired car brand both in the Dreamer and Family Oriented
Dreamer segment. The Family Oriented family income is the highest
segment. From all the car types offered by car manufacturers, the
across all segments with Rp 10 – 24.99 million IDR, while the Working
consumer in Indonesia prefers to buy an SUV (Table 13).
for Success and the Dreamer is between Rp 5–9.99 million. There are
Most of the millennials and gen Z in Indonesia see a car brand as a
similarities found in occupation, education and household size. All of
way to reflect self-image to people around them, followed by value for
the three segments are mostly working as employees of private sectors
money. The motivation for admiring car brands in the Family Oriented
followed by students, are bachelor graduates, and their household size
segment is evenly distributed between reflection of self-image and value
is 3–5 people.
for money. The consumers are digital-savvy and prefer to use social
Table 9–11Majority of the population in the Working for Success
media to follow the brand that they admire. The Working for Success and
and the Family Oriented segments own an entry level car (Low-cost
the Dreamers listens to the influencers regarding the car brand that they
green car) while the majority of Dreamer segment currently doesn’t
admire, while the Family Oriented is influenced the most by their family.
have a car. The primary mode of transportation across all segments is

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H. Hartoyo, E. Manalu, U. Sumarwan et al. Journal of Open Innovation: Technology, Market,and Complexity 9 (2023) 100031

Table 13 Table 14
Preferred car type crosstab results. Motivation crosstab results.

Variables Segment 1 Segment 2 Segment 3 Variables Segment 1 Segment 2 Segment 3

SUV 8.2% 30.2% 2.4% Comfort 1.2% 3.8% 0.6%

Low-cost green car 2.2% 6.2% 0.2% Unique 3.4% 11.8% 1.4%
MPV 2% 9.0% 0.8% Self-Image 5% 21.8% 1.6%
Hatchback 1.4% 5.2% 0.8% High Quality 3.4% 18.6% 1.2%
Sedan 2.2% 10.8% 1.2% Value for Money 3.6% 12.4% 1.6%
Sport Car 2.0% 14.0% 1.2% Safety 0.6% 5.8% 0.0%
Moral Obligation 0.8% 1.2% 0.2%

Table 14–15Furthermore, to see the differences of the three seg-

ments formed, Multiple Discriminant Analysis was conducted. Table 16 Table 15
shows that because the sig is 0 < 0.05, it is proven that. There is a Reference group crosstab results.
significant difference between the three segments. Furthermore, refer-
Variables Segment 1 Segment 2 Segment 3
ring to Table 17, it can be seen that the most dominant variable that can
be used as an indicator to determine the segment membership of brand Family 5.2% 23.2% 3.8%
admiration is motivation, which has the highest Fisher index (0.227, Influencer 6.8% 30.6% 1.2%
0.264, 0.292). Table 18. Friends 6% 21.6% 1.6%
Based on Table 19, this discriminant model can classify 93.3% for
The Working for Success segment, 100% for The Dreamer segment, and
87.9% for The Family Oriented segment. This means that, with the data
collision. (2) They may also have fewer safety features due to cost
obtained at this time, it can be concluded that each category mem-
bership can be predicted precisely.
Table 16
Information channel.
5. Discussion Variables Segment 1 Segment 2 Segment 3

This study provides insight on the characteristics of each of the Car exhibition 3.2% 10.6% 1.4%
Social Media 12.4% 52.8% 3.8%
customer segments that admired car brands in Indonesia.
Company website 1.0% 6% 0.8%
Car showroom 1.4% 6% 0.6%

Working for The Dreamer Family

Success (Segment 2) Oriented
(Segment 1) (Segment 3)
Table 17
Age Millennials Gen Z Millennials Multiple Discriminant Analysis.
Current car type Low-cost green Don’t have a car Sedan
car Box’s M 814.634
Mode of transpor- Motorcycle Motorcycle Private car and
tation motorcycle F Approx. 2.296
Majority gender Male Female Male Df1 306
Household income Rp 5.000.000 – Rp 5.000.000 – Rp 10.000.000 Df2 25070
Rp 9.999.999 Rp 9.999.999 – Rp Sig. 0
24.999.999
Occupation Private sector Private sector Private sector
employee employee employee
Education Bachelor Bachelor Bachelor Table 18
Household size 3–5 people 3–5 people 3–5 people Classification function coefficient output.
Preferred car type Sport Utility Sport Utility Sport Utility
Vehicle Vehicle and sport Vehicle Variables Segment 1 Segment 2 Segment 3
car
Information Social media Social media Social media Generation 0.395 -0.335 -0.328
channel 1 Car ownership 0.045 0.772 0.058
Information Car exhibition Car exhibition Car exhibition Brand owned -0.624 0.105 -0.543
channel 2 Type of car 0.033 -0.164 0.541
Motivation Self-image Self-image Value for Primary transport -0.132 0.259 -0.083
money and Gender -0.313 -0.070 -0.093
Self-image Household income 0.121 0.494 -0.286
Reference group Influencer Influencer Family Occupation -0.074 0.526 0.047
Admired brand Hyundai BMW BMW Education 0.363 0.003 -0.002
Household size 0.117 0.100 -0.407
Admired brand 0.324 0.097 -0.310
The Working for Success segment in majority consists of millennials. Preferred type -0.280 0.340 0.311
The brands most admired by this segment are Hyundai and Lexus, re- Information channel -0.082 0.344 0.233
Motivation 0.227 0.264 0.292
spectively. They assume that the brand can describe their self-image.
Reference group -0.210 -0.282 0.331
They also think that both brands are worth the money. The majority of
consumers included in this segment are men and own cars in the entry-
level segment (Low-cost green car). The Low-cost green cars (LCGC) are
popular in this segment due to its affordability, and fuel efficiency constraints. (3) LCGCs often have smaller engines and lower horse-
making them accessible for the average customer. However LCGCs also power, which can limit their performance and make them less suitable
have several downsides; (1) it tends to be smaller and lighter than for long journeys or challenging terrain. (4) LCGCs may have fewer
traditional cars, which can make them less safe in the event of a features and amenities than traditional cars, such as air conditioning,

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H. Hartoyo, E. Manalu, U. Sumarwan et al.
Table 19
Classification result.
Segment Predicted group membership
1 93.3%
2 100%
3 87.9%
power windows, or advanced entertainment systems, which can make
them less comfortable to drive. The customers in the Working for
Success admire car brands such as Hyundai. Over the years, Hyundai
has established a reputation for producing stylish and innovative ve-
hicles that incorporate the latest design trends and technologies. In
recent years, the company has won numerous awards for its design,
including several prestigious Red Dot Design Awards and iF Design
Awards. In addition to its focus on design, Hyundai also places a strong
emphasis on quality and innovation. Hyundai's design philosophy is
centered around a concept called "Sensuous Sportiness," which aims to
create vehicles that are both visually striking and emotionally ap-
pealing. The company's designers focus on creating sleek, aerodynamic
shapes that convey a sense of motion and dynamism, as well as in-
corporating advanced lighting and technology features to enhance the
driving experience. The company invests heavily in research and de-
velopment to create vehicles that are not only stylish but also reliable,
efficient, and safe. This combination of design, quality, and innovation
has helped Hyundai establish itself as a leading automaker in the global
market.
The Dreamer segment majority consists of Gen Z. They are inter-
ested in admiring automotive brands because of the opinions of influ-
encers. The majority of consumers included in this segment are women
and do not own a car. Majority of the customers in this segment are
looking for a first-time experience purchasing and owning a car. In
addition, they dream high by admiring a sports car besides a more af-
fordable SUV. The most admired brand by this segment, sequentially, is
BMW. They assume that the brand can describe their self-image. Self-
image is one of the key motivations for customers to buy a car because
owning a car can be a way for individuals to express their identity and
project a certain image to others. Many people view their car as an
extension of themselves, and the type of car they drive can commu-
nicate certain values, lifestyle, and personality traits (Hoyer and
MacInnis, 2010; Belk, 2013). For example, someone who values luxury
and status may choose to drive a high-end luxury car, while someone
who values practicality and efficiency may choose a fuel-efficient hy-
brid car. Moreover, a car can also be a reflection of the social group that
a person identifies with. For instance, people who belong to a particular
social group may prefer certain brands or models of cars that are
popular among that group. Furthermore, a car can also serve as a
symbol of achievement or success for some individuals. Owning a car
can represent a level of independence, freedom, and accomplishment,
which can enhance an individual's self-image and self-esteem.
BMW itself is a premium luxury brand known for positioning itself
as a leader in innovation and technology, with a focus on developing
sustainable mobility solutions for the future. The brand has invested
heavily in electric and hybrid vehicles, as well as developing new
technologies such as autonomous driving systems. It is also known for
its high-performance, high-quality vehicles that offer a blend of luxury,
unique driving experience, sportiness, and innovative technology.
BMW's target market is generally affluent customers who are looking
for a combination of performance, style, and prestige. The company's
branding and marketing campaigns emphasize its performance heritage
and innovation, as well as its dedication to quality and luxury.
Both Working for Success and the Dreamers are influenced to ad-
mire automotive brands because of the opinions of influencers. Many
businesses have used social media influencers as part of their marketing
strategy. An influencer is a person who has thousands to millions of
6
Journal of Open Innovation: Technology, Market,and Complexity 9 (2023) 100031
social media followers such as Instagram and Youtube (Saulite and
Šceulovs, 2022). Social media allows influencers to share their view
which can play a major role in affecting consumer decision making,
attitudes, and behavior (Ge and Gretzel, 2018). Therefore companies
should utilize influencers to broaden their customer base in these two
segments. Both segments also view the admired brand to have the
capability to reflect their self-image. This result can be explained by
self-congruence theory where consumers will prefer brands that match
their personal value priorities (Ryu and Han, 2021; Michel et al., 2022).
Therefore it is important for companies to align the value proposition
according to the consumer's personal values.
The Family Oriented segment consists of millennials who are in-
terested in admiring automotive brands because of the opinions of their
families. They demand value for money in the car brand they admire
and the brand has to represent their self-image. Similar to the
Dreamers, BMW is the most admired car brand in this segment. The
majority of consumers included in this segment are men and own se-
dans and MPVs. This segment is the most stable in terms of economic
conditions, with a family income level of IDR 10,000,000 - IDR
24,999,999. Therefore, consumers in this segment are the most likely to
buy quickly compared to the rest of the segments. Unlike the other two
customer groups, the Family Oriented listens to their families when
they decide to admire a certain brand. Family is an important reference
point, especially for items that are shared or used by multiple family
members such as cars. The customer in this segment will assess their
needs and preferences to determine what budget, usability, product
features or functions are important for their family. Value for money is
important for this segment because they are more likely to carefully
consider purchases and seek out products and services that offer the
best value for their money. Therefore, car companies should provide a
car that can be used for multiple family members for different kinds of
occasions (Escalas and Bettman, 2023).
In general, the majority are private employees with bachelor degree
educational backgrounds. Household size is between 3 and 5 people.
The main preference for car types from these three segments is SUVs.
This preference reflects car sales based on The Association of Indonesia
Automotive Industries data which states that there is an increase in
demand from year to year for the SUV type. This growth happens for
several reasons such as; (1) The affordability of SUVs has improved due
to increased competition among car manufacturers, resulting in more
options at lower price points. (2) SUVs are versatile vehicles that can be
used for various purposes, such as commuting, off-roading, and family
transportation. (3) Owning an SUV is seen as a status symbol, indicating
a higher level of wealth and social status. The source of information
used to get news about the brands they admire are social media and
visiting exhibitions that are being carried out by the brands. This is
inline with previous literature which found that Generation Z and
Millennials prefers to use social media than the other platforms
(Qualman, 2019). Social media provides a powerful platform for mar-
keters to reach a wide audience, build brand awareness, engage with
customers, and measure the effectiveness of their campaigns. It has
become an essential tool for modern marketing strategies. All three
segments tend to admire luxury car brands. It can be assumed that
consumers are more likely to associate a luxury brand with competence
(Septianto et al., 2021). Luxury car brands are often considered as
symbols of wealth, status, and prestige. Owning and displaying luxury
cars can be a way for individuals to express their social status and
identity to others. This finding can be a guidance for car companies to
provide a product that can symbolize exclusivity and prestige in order
to be desired by the customers.
6. Conclusions
The objective of this study was to understand how the customers
segmented based on their car brand admiration, what is the motivation
driving that admiration, and investigate the characteristics of each
H. Hartoyo, E. Manalu, U. Sumarwan et al.
customer segment. The results obtained in this study, allow us to state
several conclusions:
Admiration-based segmentation can be a powerful tool for the au-
tomotive industry to understand the drivers behind consumer behavior
and create targeted marketing strategies. The segmentation of car
customers based on demographics, current ownership, preference,
communication channel, admired car brand, admiration motivation,
and reference group produces 3 segments; the Working for Success, the
Dreamer, and the Family Oriented. The Working for Success are those
who already have an entry level car and are looking for an upgrade.
They are millennials who admire what Hyundai offers in Indonesia.
They are motivated to admire Hyundai because it can represent their
self-image. To reach this segment, influencer marketing is important.
The Dreamers are the majority of first-time car buyers, they aim
high and they appreciate what BMW is offering. They are generation Z
who have the lowest income from the rest of the customer segment,
however they aim high by admiring luxury brands such as BMW. Same
like the Working for Success segment, their motivation to admire is as a
reflection of their self-image. Lastly, the Family Oriented has the most
stable disposable income, they always think and consult with their fa-
mily in regards to the car brand that they admire. They demand value
for money more than the rest of the segments.
From a managerial implication standpoint, this segmentation can
help automotive companies identify the consumer groups that are most
likely to have a strong emotional connection to their brand. This can be
done through market research and data analysis, and can provide in-
sights into the characteristics and behaviors of brand admirers. Once
key brand admirers have been identified, automotive companies can
develop targeted marketing strategies that speak to their specific needs
and aspirations. This may include creating personalized content,
leveraging social media and influencer marketing, and creating im-
mersive experiences that deepen the emotional connection between
consumers and the brand. This research result can also help automotive
companies identify new product opportunities that resonate with con-
sumers' emotional needs and desires. By understanding the emotional
drivers behind consumer behavior, companies can develop new product
offerings that meet those needs and create differentiation in the mar-
ketplace. Admiration-based segmentation can also help automotive
companies monitor and manage their brand reputation. By under-
standing the emotional factors that drive consumer perceptions of the
brand, companies can proactively address any negative sentiment and
maintain a positive image in the marketplace.
In summary, admiration-based segmentation can provide valuable
insights into the emotional drivers behind consumer behavior in the
automotive industry. By leveraging these insights to create targeted
marketing strategies, build brand loyalty, innovate product offerings,
and monitor brand reputation, automotive companies can gain a com-
petitive advantage and succeed in today's rapidly evolving marketplace.
From an academic implication standpoint, this segmentation can
help researchers and academics better understand the emotional drivers
behind consumer behavior. By studying the characteristics and beha-
viors of brand admirers, researchers can gain insights into the role of
emotions in consumer decision-making and identify new factors that
influence consumer behavior. In addition to that, admiration-based
segmentation can also lead to the development of new theoretical fra-
meworks that better explain the complex relationship between brands
and consumers. By taking into account the emotional factors that drive
brand admiration, researchers can develop new models and theories
that provide a more comprehensive understanding of consumer
behavior.
While admiration-based segmentation can provide valuable insights
into the drivers behind consumer behavior in the automotive industry,
there are also several limitations in this study that can provide a
starting point for future studies; (1) this segmentation may not be ap-
plicable across different cultures or geographic regions. Emotional
connections to brands can vary widely depending on factors such as
7
Journal of Open Innovation: Technology, Market,and Complexity 9 (2023) 100031
language, culture, and social norms. Therefore, these research findings
may not be generalizable to other contexts. (2) Admiration is a sub-
jective construct that may be difficult to measure consistently across
different individuals. Some consumers may have a stronger emotional
connection to a brand than others, and admiration can be influenced by
a range of factors such as personal experiences, social influence, and
marketing messages. (3) Measuring emotional factors such as admira-
tion can be challenging using traditional research methods such as
surveys and focus groups. Consumers may not be able to articulate their
emotional connections to brands, or they may be hesitant to share their
true feelings. Therefore, alternative research methods may be needed to
measure emotional factors accurately.
Disclaimer/Publisher’s Note
The statements, opinions and data contained in all publications are
solely those of the individual author(s) and contributor(s) and not of
MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim re-
sponsibility for any injury to people or property resulting from any
ideas, methods, instructions or products referred to in the content.
Funding
This research received no external funding.
CRediT authorship contribution statement
Conceptualization, H.H. and E.M.; methodology, U.S.; resources,
P.N.; writing, E.M.; supervision, H.H., U.S.; project administration,
P.N.; All authors have read and agreed to the published version of the
manuscript.
Declaration of Competing Interest
The authors declare no conflict of interest.
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