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1. How would you rate innovativeness of products from Germany? Innovativeness designates the use of new technology and engineering advances.

not innovative 1 2 3 4 5 innovative

2. How would you rate the attractiveness of the design of products from Germany, regarding appearance, style, colors, and variety?

No attractive design 1 2 3 4 5 attractive design

3. How would you rate the prestige of products from Germany, including their exclusivity, status, and brand name reputation?

Low prestige 1 2 3 4 5 high prestige

4. How would you rate the workmanship of products from Germany, which comprises reliability, durability, craftsmanship, and manufacturing quality?

Bad workmanship 1 2 3 4 5 good workmanship

1.! Buying German goods helps me maintain my German identity.

strongly disagree 1 2 3 4 5 strongly agree

2.! I believe that purchasing German goods should be a moral duty of every German citizen.

strongly disagree 1 2 3 4 5 strongly agree

3.! It always makes me feel good to support our products.

strongly disagree 1 2 3 4 5 strongly agree

4.! A real German should always back German products.

strongly disagree 1 2 3 4 5 strongly agree

5.! German people should always consider German workers when making their purchase decisions.

strongly disagree 1 2 3 4 5 strongly agree

6.! When it comes to German products, I do not need further information to assess their quality; the country of origin is sufficient signal of high quality for me.

strongly disagree 1 2 3 4 5 strongly agree

7.! German goods are better than imported goods.

strongly disagree 1 2 3 4 5 strongly agree

8.! German products are made to high standards and no other country can exceed them.

strongly disagree 1 2 3 4 5 strongly agree

9.! Increased imports result in greater levels of unemployment in this Germany.

strongly disagree 1 2 3 4 5 strongly agree

10.!Buying foreign products is a threat to the domestic economy.

strongly disagree 1 2 3 4 5 strongly agree

11.!Job losses in this country are the result of increased importation of foreign goods.

strongly disagree 1 2 3 4 5 strongly agree

12.!I would be convinced to buy domestic goods if a campaign was launched in the mass media promoting German goods.

strongly disagree 1 2 3 4 5 strongly agree

13.!If German people are made aware of the impact on the economy of foreign product consumption, they will be more willing to purchase domestic goods.

strongly disagree 1 2 3 4 5 strongly agree

14.!I would stop buying foreign products if the German government launched campaigns to make people aware of the positive impact of domestic goods consumption on the

strongly disagree 1 2 3 4 5 strongly agree

I: Let’s begin. What comes to your mind when you think about VW?

VW is the biggest German company and one of the biggest in automotive industry in the world.

The products have (had) a good reputation among customers as well as in general. I think that compared to other major automobile brands in Germany, VW seems to offer a better value-for-money. In the past years, you might think that VW tries to get rid of the reputation as a middle-class manufacturer in favor of more luxurious, upper-middle-class products. In my opinion, VW is a premium car manufacturer. People in Germany normally think about Porsche, Audi, BMW or Mercedes Benz as premium brands, but the difference between an Audi and a VW is marginal.

VW is a very traditional German brand and most famous for the VW Beetle or their iconic VW bus which used to be a symbol of the 60ies and 70ies. Right now, the scandal is obviously everywhere. Newspapers in Germany cover it daily and there seem to be more and more information upcoming. It looks like VW has some real skeletons in their closet but that might be true for other manufacturers as well.

I: What does VW stand for in your opinion in Germany?

High quality, tradition, German engineering. Maybe affordable luxury. It also used to stand for integrity. It’s the car of the people, the car of the Volk which literally translates into peoples car.

I: What do you know about the latest VW scandal? What happened?

P: I know the general facts provided by relevant news. In order to meet the required NOx emissions threshold in the US, VW installed a specific software changing the engine automation to a mode in which the emissions are significantly lower. This allowed the engines to achieve the demanded emissions and also lower theoretical fuel consumption in test conditions, while in reality the values of both are noticeable higher.

Who is too blame? VW?

Of course, VW is to blame for these kind of techniques to meet the required thresholds, but it doesn’t really change my opinion about the brand itself. It also doesn’t change the way I think about the quality of the brand or the products itself. Every car manufacturer tries to match the thresholds and improve their efficiency on the paper by using half legal ways.

I: So you are saying that other manufacturers act in a similar way?

Definitely. It’s not a secret but more like an accepted fact that there is a huge gap between the manufacturers estimated fuel consumption of cars and the actual fuel consumption. People already got used to this. Everybody knows that you don’t have lab conditions when you drive your car outside in the streets. I think that’s one reason why people in Germany don’t really care that much about the scandal. Basically, everybody already knew that the specs were too good to be entirely true.

I: Would you still consider buying a VW after the scandal?

P: I would still consider buying a VW. The quality of the cars didn’t decrease in a single point.

And to be honest, everyone should be quite aware that all the manufacturers in the automotive industry, not only VW, are trying to tune up their results in terms of emissions etc. with all kind

of methods.

My tendency to buy a VW in summary didn’t change at all. It’s still a decent car and I’m sure that every car manufacturer is always operating on the edge of legality.

I: Are you even more likely to buy one after the latest scandal?

I wouldn’t say that I’m more likely to buy one but I expect prices to drop and I also expect VW to provide some incentives for potential buyers. Eventually, they will try to do their best to make it up to their customers. So if I consider potential price effects, I’m probably more likely to buy one than I was before the crisis. But this has nothing to do with the scandal but rather with the expectation of dropping prices.

I: Do you think the VW scandal changed the way you think about German quality or products made in Germany?

P: No, not really. I’m quite informed about the methods that are used by car manufacturers to manipulate the emissions and fuel consumptions which are widely used by all major brands in automotive. This is a specific and – sadly – accepted behavior in this industry and has not really a direct link to German industry in general. This is why nothing really changed for me.

I: Do you think it might change for people in other countries?

P: I think it will not change in the long term. Germany is known for it’s quality manufacturing.

I think it takes more than this kind of scandal to change the mind of consumers worldwide. And VW didn’t really experience a lot of scandals in the past. So I think it’s easier for people to forgive somebody if it’s a one-time thing.

I: But the cheating was systematic over a couple of years. So for you this is a single event scandal?

Yes, definitely. It’s not like an airline that has a major crash every other year where people actually get killed. I mean VW is deceiving the customers but they are not endangering anybody. It would have been very different if people actually get killed.

I: Alright, so to wrap it up: You basically didn’t change your attitude towards VW because you know the industry and you know that it’s a common thing?

P: Yes. I’m an engineer and I think my knowledge on cars, engines is definitely higher than average. I’m sure that almost all of the people working in this kind of field share my opinion on the scandal and VW.

I: Is the media making the scandal bigger than it actually is?

P: Some people would argue that this scandal is more and more becoming a which hunt. I feel that some newspapers have a very biased way of dealing with this situation and are eager to

make the scandal bigger than it actually is

product- or a company-related scandal?

P: The product is still the same. Nothing has changed apart from a tiny detail where basically everybody already knew that it would have been to good to be true. It’s definitely a corporate scandal. VW as a company deceived the customer in an unethical way. Nothing about the product changed for me in my opinion.

I: I would like to answer you some yes and no questions. If you have anything to add, let me know.

Is the media covering the issue accurate? (AV) No

P: No

Would you defend VW’s actions against somebody with a very negative opinion on VW?

(CON)

P: Yes

I: Why would you do that?

P: Because I think that most people don’t have the necessary background to fully understand the issue here. It’s as black and white as it is portrayed in the media.

Is it more important to be ethical or manufacture high quality products? (BP)

P: ethical. But being ethical doesn’t help if your product sucks.

Do you feel an increased commitment to support VW after the latest scandal? (EP_AB) P: No. If you support as in buying their cars, I might be more likely to do so. But this is not related to the scandal but more to the consequences of the scandal.

I: Do you think VW actions is a single incident in the automotive industry? (CON)

P: No, and I think I already explained this in the previous question.

I: Did VW have any reasons to manipulate the software? (CON)

P: No, there is a lot of pressure in the industry, but this doesn’t justify systematic cheating.

I: Do you avoid certain newspapers / articles or other sources of communication based on their opinion about VW? (AV)

P: No, I’d like to hear different point of views.

I: Do you think that the US emission standards put the German automotive industry in a disadvantage? (CON)

P: No

I: Do you prefer talking to people who share your opinion about VW’s latest actions? (EP_SV)

P: No

I: Would VW’s actions stop you from buying one of their cars in the future? Why or why not?

(BP_WA)

P: No, as stated above

I: Does the scandal make a VW a worse car? (BP_RI)

P: No

I: Are there any reason in your opinion to justify what VW did? (CON)

P: No

I: Did you feel that there is a lot of biased, one-sided reporting about the VW scandal? (AV)

P: There is some, but that’s pretty much always the case if some company is doing something wrong.

I: Do you think VW is a lone perpetrator in the automotive industry?

P: No. Common practice in the industry.

INTERVIEW 2:

Name: Matthias Gabriel Occupation: Manager Sales

Age: 27 Education: Bachelor Marketing Mgmt

Sex: male Nationality: German

ABOUT CARS IN GENERAL…

(SCALE: Strongly disagree 1 2 3 4 5 strongly agree)

I know pretty much about cars 1 2 3 4 5

I know how to judge the quality of a car 1 2 3 4 5

I think I know enough about cars to feel 1 2 3 4 5 pretty confident when I would buy one

I don’t feel very knowledgeable about cars 1 2 3 4 5

Among my circle of friends, I’m one of the 1 2 3 4 5

“experts” on cars

Compared to most other people, I know less 1 2 3 4 5 about cars

I have heard of most of the car brands that 1 2 3 4 5

When it comes to cars, I really don’t know a lot 1 2 3 4 5

I can tell if a car is worth the price or not 1 2 3 4 5

ABOUT THE BRAND VW…

I am … with VW

unfamiliar 1 2 3 4 5 familiar

inexperienced 1 2 3 4 5 experienced

not knowledgeable 1 2 3 4 5 knowledgeable

uninformed 1 2 3 4 5 informed

novice buyer 1 2 3 4 5 expert buyer

Are you in any way affiliated with VW YES NO (employee, former employee, etc…)?

Do you think that VW is a stereotypical brand YES NO for Germany?

ABOUT MADE IN GERMANY…

1. How would you rate innovativeness of products from Germany? Innovativeness designates the use of new technology and engineering advances.

not innovative 1 2 3 4 5 innovative

2. How would you rate the attractiveness of the design of products from Germany, regarding appearance, style, colors, and variety?

No attractive design 1 2 3 4 5 attractive design

3. How would you rate the prestige of products from Germany, including their exclusivity, status, and brand name reputation?

Low prestige 1 2 3 4 5 high prestige

4. How would you rate the workmanship of products from Germany, which comprises reliability, durability, craftsmanship, and manufacturing quality?

Bad workmanship 1 2 3 4 5 good workmanship

15.!Buying German goods helps me maintain my German identity.

strongly disagree 1 2 3 4 5 strongly agree

16.!I believe that purchasing German goods should be a moral duty of every German citizen.

strongly disagree 1 2 3 4 5 strongly agree

17.!It always makes me feel good to support our products.

strongly disagree 1 2 3 4 5 strongly agree

18.!A real German should always back German products.

strongly disagree 1 2 3 4 5 strongly agree

19.!German people should always consider German workers when making their purchase decisions.

strongly disagree 1 2 3 4 5 strongly agree

20.!When it comes to German products, I do not need further information to assess their quality; the country of origin is sufficient signal of high quality for me.

strongly disagree 1 2 3 4 5 strongly agree

21.!German goods are better than imported goods.

strongly disagree 1 2 3 4 5 strongly agree

22.!German products are made to high standards and no other country can exceed them.

strongly disagree 1 2 3 4 5 strongly agree

23.!Increased imports result in greater levels of unemployment in this Germany.

strongly disagree 1 2 3 4 5 strongly agree

24.!Buying foreign products is a threat to the domestic economy.

strongly disagree 1 2 3 4 5 strongly agree

25.!Job losses in this country are the result of increased importation of foreign goods.

strongly disagree 1 2 3 4 5 strongly agree

26.!I would be convinced to buy domestic goods if a campaign was launched in the mass media promoting German goods.

strongly disagree 1 2 3 4 5 strongly agree

27.!If German people are made aware of the impact on the economy of foreign product consumption, they will be more willing to purchase domestic goods.

strongly disagree 1 2 3 4 5 strongly agree

28.!I would stop buying foreign products if the German government launched campaigns to make people aware of the positive impact of domestic goods consumption on the German economy.

I: Let’s start the actual interview. What comes to your mind when you think about VW?

Volkswagen is a very traditional German brand with lots of history. They had a big success with the VW beetle which became the German car; not only in Germany, but I think it was also quite popular in the US. I think that they are also quite innovative with their electric engines and for me as a marketer, they are doing a great job. I remember a great marketing campaign in china where they were asking Chinese people to come up with designs for a new car which they called “the people’s car”. So superior marketing, understanding the customer is definitely also something that comes to my mind when I think about VW. But my point of view is probably a little bit biased since I see a lot of things from a marketer’s perspective. But the people’s car is definitely what distinguishes VW from all the other German brands. It has always been a car for everybody. Affordable, high quality and durable.

I think that VW is the biggest German company besides Siemens, so obviously VW is something very German and deeply rooted in our population. VW is not only a brand but a big conglomerate of different companies such as Seat, Audi, Porsche, Lamborghini and so on. But a lot of people don’t know that all these brands belong to VW. VW is also known for their smart manufacturing since they use their parts for different brands. Door handles from the seat Leon are used for the Golf as well. And the VW Tuareg, the Porsche Cayenne and the Audi Q7 are using the same engine in their basic version and have the same body platform. So for me VW also stands for smart manufacturing. Making things affordable by cutting down production costs. It’s basically the German version of Toyota.

I: What do you know about the latest VW scandal? What happened?

P: I don’t know all the specific details but in a nutshell VW tricked agencies like EPA or CARB by using a software to change the amount of exhaust gases measured in a favorable way. The US agencies were the first to notice and filed an official complaint which is going to end up in a big trial. VW is facing two-digit billion dollar charges. The stock crashed, sales dropped and they had their first quarterly loss in like 15 or 20 years in their company history. The scandal is all across the news in Germany and almost daily new allegations surface. Initially the number of manipulated cars seemed to be much lower; but now it turns out that some Porsche and Audi enignes have also been quipped with this kind of software. So it seems like the situation is getting worse and worse as more details get published. VW is probably in trouble.

Who is too blame? VW?

In my opinion, the management is to blame. It definitely was not one mad engineer acting rogue.

It was systematic cheating. There must have been a lot of people involved and I’m pretty sure that Martin Winterkorn new what was going on in his company. And even if he didn’t: that’s even worse in my opinion. The German government is to blame as well since they hold a huge stake of VW shares and are the biggest shareholder of VW. They should have known whats going on since the minister president of Saxony also has a chair in VW supervisory committee.

The government also has high interests in the car industry in general. The automotive lobby in Germany is huge and politicians come up with very favorable laws for premium cars in terms of exhaust fumes, fuel consumption and so on. Germany has to tendency to veto too strict EU regulation for exhaust fumes to protect its key industry.

I: So you are saying that German lobbyism and protectionism is part of the problem?

P: Yes, I think this is a key issue here. Germany is exporting premium cars. Mainly sports cars or SUVs. These cars naturally require more gasoline or diesel than a Toyota. But I think its not only about German protectionism but also about US protectionism. The USA’s regulations for diesel engines are super strict. US companies do not make use of the diesel technology even though a lot of researchers would argue in favor of diesel because of the higher energy concentration. But the US seems to come up with ridiculously low emissions thresholds for diesel powered cars. If you want to put your diesel on the US market, cheating might have been the only way for VW to sell at least some cars in the US. And now it all backfired.

I: Would you still consider buying a VW after the scandal?

P: I would still consider buying a VW. The scandal has no influence on my buying decision.

And I don’t buy a car because of its CO2 results.

I: But you would still trust a company that deceived you as a potential customer on purpose?

P: Yes. For me it’s actually not a big deal. At least not as big as the media tries to make it.

P: Yes. For me it’s actually not a big deal. At least not as big as the media tries to make it.

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