Hybrid Cars

. Gasoline prices have affected the introduction and sale of the Prius. The need for competition is also a factor. A copy that produces the costly batteries could reduce the cost through research and development. The Prius has fewer air pollutants. Toyota began educating consumers about the Prius two years before introduction.

2. Major macro environmental factors

A. Demographic ' Study of human population in terms of size, density, location, age, gender, race, occupation and other statistics. The U.S. worships scientific and technological advances and wants the latest gizmos.

B. Economic ' Automakers have asked for tax incentives to stimulate purchase of clean-fuel and high mileage autos. The economic environment consists of factors that affect consumer purchasing power and spending patterns.

C. Natural ' It involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. Toyota sent out green seed cards shaped like Toyota's logo to prospective buyers.

D. Technological ' Forces that create new technologies, creating new product and market opportunities. The company established a web site to distribute information and also sent e-brochures to 40,000 likely buyers just before the introduction.

E. Political ' Laws, government agencies and pressure groups that influence and limit various organizations and individuals in a given society. The automakers asked for tax incentives to stimulate purchase of clean-fuel and high-mileage autos. In May 2002, the IRS ruled that owners of hybrid gas-and-electric vehicles can claim a federal income-tax deduction of as much as $2,000 for buying the Prius.

F. Cultural ' Institutions and other forces that affect society's basic values, perceptions, preferences and behavior. Americans love their cars. They readily adapt to progress related to material comfort.