CMU

Dr. Richard Divine

In an effort to boost sales, Chrysler announced an incentive to cap the price of gas at $2.99 a gallon for the next three years for consumers who buy or lease vehicles through June 2.

Dr. Richard Divine, professor and chair Marketing and hospitality services administration offers a few thoughts on the possible success of the program based on consumer behavior, as well as how it might affect gas consumption.

• "This program effectively deals with the great fear that many consumers have that gas prices will continue to increase at the same rate in the near future.
  
• Buying a Jeep, of all vehicles, may seem like an irrational response to this [gas price] concern, but risk-averse consumers are attracted to guarantees that can protect them from the consequences of outcomes that they fear the most."
  
• The program has probably already paid for itself just from the amount of attention it has received from the mainstream media.

Divine's primary areas of teaching are in buyer behavior, marketing analysis and promotional strategy, and his research interests include consumer behavior, marketing education and research, and new product development.