WESTLAKE VILLAGE, Calif., Sept. 26 /PRNewswire/ -- Despite the fact
that import vehicles make up nearly 49 percent of the U.S. auto market, the
country of origin still plays a crucial role in consumer choice of which
make and model to purchase, according to the J.D. Power and Associates 2007
Escaped Shopper Study(SM) released today. The study provides a
comprehensive evaluation of why consumers may consider one model, but
ultimately purchase another.
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Nearly 80 percent of new-vehicle buyers limit their consideration set
to include only domestic models or only import models. Among those who
cross-shop for both import and domestic models, consumers who ultimately
buy a domestic frequently do so because they simply decide they do not want
an import. Buyers of domestic new-vehicles also frequently decide against
import brands for financial reasons, most often citing that the import
didn't offer aggressive rebates or other incentives.
Conversely, import buyers who reject a domestic model more frequently
point to perceived vehicle attribute deficiencies as key reasons for
rejection, such as concerns for reliability, gas mileage or poor resale
value.
"These findings point to continued difficulties for the Big Three in
Detroit as they try to win back some of the market share they lost to the
imports," said Kara Steslicki, research manager of the automotive retail
practice at J.D. Power and Associates. "It also suggests that too few U.S.
consumers have caught on to the fact that cars and trucks offered by
Detroit automakers are in many cases as good, if not better, than their
rivals from Asia and Europe. Reliability and resale value perceptions are
difficult to change overnight, especially considering that people are
already rejecting domestic vehicles because of this. To win back market
share, domestics are faced with two alternatives: either continue
outspending imports on incentives, or find vehicle specific opportunities,
such as styling or promoting a positive dealer experience, that can have an
immediate impact on consumer perceptions of the brand."
The study also finds the following new-vehicle shopper behavior patterns:
-- Nearly 40 percent of all new-vehicle shoppers cite price as a key
reason for rejecting a model. Interior (10%), the dealer experience
(10%) and quality/reliability concerns (9%) follow as the most
influential reasons for rejection.
-- Approximately 45 percent of new-vehicle shoppers took a test drive
prior to rejecting a model, and nearly 25 percent of consumers tried
to negotiate pricing before ultimately purchasing a different model.
-- More than 60 percent of rejecters indicate they researched a model on
the Internet. Additionally, more than 20 percent of shoppers claim the
Internet influenced their decision to reject a model.
-- Shoppers who researched a model by using the Internet or by reading a
magazine review are nearly half as likely to mention interior issues
as the most influential reason for rejecting a model when compared
with shoppers who actually visit a dealership (11% versus 5%,
respectively).
-- While price is a key issue among both hybrid and non-hybrid rejecters,
consumers who shop for a hybrid are less likely to reject for price
(53%) than consumers who shop for a non-hybrid model (59%).
"Consumers who shop for a hybrid essentially go into the dealership
expecting to pay a higher price for their vehicle, so it's not surprising
that the gap between hybrid and non-hybrid shoppers rejecting models due to
price is minimal," said Steslicki.
The 2007 Escaped Shopper Study is based on responses from 31,355
new-vehicle buyers surveyed between May and July 2007.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
an ISO 9001-registered global marketing information services firm operating
in key business sectors including market research, forecasting, performance
improvement, training and customer satisfaction. The firm's quality and
satisfaction measurements are based on responses from millions of consumers
annually. For more information on car reviews and ratings, car insurance,
health insurance, cell phone ratings, and more, please visit
http://JDPower.com. J.D. Power and Associates is a business unit of The
McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading
global information services provider meeting worldwide needs in the
financial services, education and business information markets through
leading brands such as Standard & Poor's, McGraw-Hill Education,
BusinessWeek and J.D. Power and Associates. The Corporation has more than
280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional
information is available at http://www.mcgraw-hill.com.
J.D. Power and Associates Media Relations Contacts:
John Tews Syvetril Perryman
Troy, Mich. Westlake Village, Calif.
(248) 312-4119 (805) 418-8103
john.tews@jdpa.com syvetril.perryman@jdpa.com
No advertising or other promotional use can be made of the information
in this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com/corporate
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