Automotive manufacturers are working hard to increase customer loyalty and attract buyers from other brands. With the uncertainty of the economy, retaining existing owners is critical to a brand's market success. A new study from J.D. Power and Associates finds that resale value and vehicle quality have become increasingly important reasons for new-vehicle buyers to remain loyal to an automotive brand. Mercedes-Benz ranks highest among automotive brands in retaining vehicle owners when they buy a new-vehicle, and improves their retention rate by eight percentage points from 2008 to 67% in 2009. Following in the rankings are Honda (64%) and Toyota (61%).
Since fewer consumers are buying new vehicles these days, they’re being forced to maintain their aging cars and trucks. Independent repair shops and auto repair chains compete fiercely with auto dealer service centers for this business. Understanding consumer perception and addressing the right questions in ad campaigns could make the difference when it comes to attracting more business.
Few industries have suffered more than auto manufacturing in the Great Recession of 2009. As a consequence of accepting bailouts from the federal government, Chrysler and GM sharply curtailed their ad budgets this year. Chrysler, in particular, is ready to re- introduce itself as a vigorous company with products targeting consumers who are looking for something new from American manufacturers. To generate interest, the company plans to significantly ratchet up ad spending between and 2011.
Marketers that spend heavily on research and development (R&D) to bring new products ranging from computer software to pharmaceuticals have been hurt as much as other companies during the recession. Yet the majority of large public firms with track records of research and development activity continued to invest in innovation. According to a new report by Booz & Company, these companies, on average, added 5.7% to their R&D budgets despite extreme profit pressure.
Consumers Willing to Spend More on Autos, More Likely to Purchase Hybrids if Carpool-Lane Stickers Available
According to a new Kelley Blue Book Market Intelligence Study, since the end of the CARS 2009 program (commonly referred to as 'Cash for Clunkers'), in-market car shoppers have indicated they are once again delaying the purchase of a new vehicle. However, the price consumers are considering paying for a new car has significantly increased in the month since the CARS 2009 program ended. In September 2009, shoppers said they would be willing to spend an average of $27,271 on their next new car, up from August 2009 when they said they would spend an average of $25,600. In addition, a majority (55%) of car shoppers said they would be more likely to consider buying a hybrid if they could get a carpool-lane sticker.
Twenty-one percent of consumers say they definitely would not consider buying a car from an automaker considering bankruptcy, according to a new survey. Another 28.6% said they probably would not consider buying a car from a struggling manufacturer.
As a follow-up to our initial press release "Nearly Half of Americans Unlikely to Buy from Automakers Considering Bankruptcy" this morning, we were curious to learn just who are the people that say they would absolutely not consider buying a vehicle from a bankrupt automaker. This is especially insightful in light of Thursday's announcement of a planned bankruptcy for Chrysler.