Abstract: The last decades in automotive industry have been characterized by traditional established business models. Today, the market is changing and a new generation of buyers hits the market, coming up with different expectations. The current paper investigates these changing patterns of customer needs and requirements by conducting a quantitative survey among generation Y and Z. The findings indicate that it is advisable for car manufacturers to adapt their existing business model to customer requirements of generations Y and Z in terms of integrating sustainability related aspects, improving digital interaction via new channels, offering highly individual mobility and ownership solutions and taking into consideration the changed relevance of actually owing a car. The results of the paper provide the basis for innovating especially the front-stage element of automotive business models, specific recommendations are provided for adapting the value proposition, the channels and customer relationships as well as the revenue streams.
Keywords: business model innovation; automotive industry; generation y and z; customer needs; business model generation; socio-cultural trends.