September 2009
Buyer perception versus their reality
Although Americans perceive Toyota to be the superior brand, more respondents drive a Ford (16 percent) or Chevrolet (14 percent)
than Toyota (10 percent). Honda (8 percent) and Dodge (6 percent) round out the makes that are driven by at least 1 in 20
consumers.
Brand loyalty is a key measure of long-term success for brand and products, with the general belief that it is easier to retain a customer than win over a new one. Again Toyota leads, with 78 percent of current owners being most likely to consider buying another.
One in five consumers bought a new car recently, and the same percentage plans to purchase a new vehicle in the next year. Supporting the perception and brand loyalty numbers, 24 percent of Americans are considering a Toyota for their next purchase. Trailing in popularity are Honda (17 percent), Chevrolet (15 percent), and Ford (13 percent). Combined, those figures indicate that even though Toyota expects to set sales volume records in 2007, there is more growth potential for the brand.
WHAT BUYERS REALLY WANT
Consumers are drawn to the brands that offer products that satisfy their needs, fit their lifestyle, and excel in the areas they find most important. The survey found that 7 in 10 consumers considered two factors to be most important when evaluating a new car: Safety (72 percent) and Quality (69 percent). About half the respondents found Performance (52 percent) and Value (52 percent) to be important. Technology/Innovation was considered least important, at 18 percent, even though manufacturer promotional messages often focus on those factors.
Top performers in Safety and Quality—Ford, Honda, and Toyota—proved popular throughout this study. At a high level, this data gives an indication of what manufacturers should address to satisfy consumers. Volvo, in particular, with the highest score for any category in Safety (23 percent) could benefit from raising its perceived Quality from a low 3 percent. Consumer Reports Reliability history data shows mixed performance by Volvo, supporting that as a prime area for improvement.
CONCLUSION
The Consumer Reports Brand Report Card suggests that Madison Avenue can only buy so much goodwill in the marketplace. Ultimately, it is good product that appeals most to shoppers. And, with perceptions not always matching reality, all consumers should carefully research what they buy.
The results show that a handful of brands are separated from the pack in consumers' eyes, leaving many to struggle for attention. Offering a good product might pay off, but it often takes a long time to establish a track record and rise in the public's awareness. Subaru illustrates that best; it is the only brand whose every vehicle meets Consumer Reports' stringent standards for being recommended. And yet, only 2 percent of consumers consider Subaru to lead in any category, putting the brand in the lowest quarter of the overall rankings.
Consumers speak most loudly with their wallets, and the automakers that listen and offer high-quality products will likely be rewarded.
Brand loyalty is a key measure of long-term success for brand and products, with the general belief that it is easier to retain a customer than win over a new one. Again Toyota leads, with 78 percent of current owners being most likely to consider buying another.
|
Brand loyalty rank |
||||
| Brand |
Owner loyalty percentage |
|||
|
Toyota |
78% |
|||
|
Honda |
60 |
|||
|
Ford |
51 |
|||
|
Chevrolet |
50 |
|||
One in five consumers bought a new car recently, and the same percentage plans to purchase a new vehicle in the next year. Supporting the perception and brand loyalty numbers, 24 percent of Americans are considering a Toyota for their next purchase. Trailing in popularity are Honda (17 percent), Chevrolet (15 percent), and Ford (13 percent). Combined, those figures indicate that even though Toyota expects to set sales volume records in 2007, there is more growth potential for the brand.
WHAT BUYERS REALLY WANT
Consumers are drawn to the brands that offer products that satisfy their needs, fit their lifestyle, and excel in the areas they find most important. The survey found that 7 in 10 consumers considered two factors to be most important when evaluating a new car: Safety (72 percent) and Quality (69 percent). About half the respondents found Performance (52 percent) and Value (52 percent) to be important. Technology/Innovation was considered least important, at 18 percent, even though manufacturer promotional messages often focus on those factors.
Top performers in Safety and Quality—Ford, Honda, and Toyota—proved popular throughout this study. At a high level, this data gives an indication of what manufacturers should address to satisfy consumers. Volvo, in particular, with the highest score for any category in Safety (23 percent) could benefit from raising its perceived Quality from a low 3 percent. Consumer Reports Reliability history data shows mixed performance by Volvo, supporting that as a prime area for improvement.
CONCLUSION
The Consumer Reports Brand Report Card suggests that Madison Avenue can only buy so much goodwill in the marketplace. Ultimately, it is good product that appeals most to shoppers. And, with perceptions not always matching reality, all consumers should carefully research what they buy.
The results show that a handful of brands are separated from the pack in consumers' eyes, leaving many to struggle for attention. Offering a good product might pay off, but it often takes a long time to establish a track record and rise in the public's awareness. Subaru illustrates that best; it is the only brand whose every vehicle meets Consumer Reports' stringent standards for being recommended. And yet, only 2 percent of consumers consider Subaru to lead in any category, putting the brand in the lowest quarter of the overall rankings.
Consumers speak most loudly with their wallets, and the automakers that listen and offer high-quality products will likely be rewarded.
