Hot Topic: Top 10 reasons consumers avoid vehicles
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Hot Topic: Top 10 reasons consumers avoid vehicles
The 2003 Avoider Study is based on responses from 27,241 owners who registered a new vehicle in January or February of 2003.
The top 10 reasons consumers avoid vehicles:
Styling
Reliability concerns
Cost
Too small
Poor quality
Resale value
Lack of incentives
Poor performance
Maintenance costs
Too big
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Rest of article here:
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The Daily Auto Insider
Friday, October 10, 2003
October 2003
Models that inspire a "love it or hate it" attitude in terms of styling often have a sales advantage, according to the J.D. Power and Associates 2003 Avoider Study.
Power says in a news release that this inaugural study investigates why consumers fail to consider (avoid) particular models when shopping for a new vehicle. In addition, the study identifies the level of awareness consumers have of certain models.
The study finds that exterior styling is by far the most frequently stated reason shoppers avoid particular models. However, models with controversial styling that polarize opinions, such as the Chrysler PT Cruiser, Chevrolet Avalanche and Infiniti FX, often sell quicker and at a higher profit margin than models that fail to generate passion in either direction. On average, "love it or hate it" models move off dealer lots four days faster and at a $609 higher profit margin than models that are neither purchased nor avoided due to styling.
"It's better to polarize some shoppers than to generate mass apathy," said Chris Denove, partner at J.D. Power and Associates. "There is nothing wrong with a model that has a high rate of avoidance due to styling, provided this is offset by a significant number of shoppers who purchase the model because of styling. Of course, if given a choice, I'd rather create designs like the Jaguar S-Type or Infiniti G-35 Coupe, which offer the type of styling that is universally liked and rarely avoided."
Shoppers avoid specific vehicles because of their perceptions, even if those perceptions differ from reality. For example, BMW and Mercedes-Benz models are frequently avoided because shoppers feel they cost too much to maintain. This is a case where perception does not match reality because both brands provide free maintenance to buyers.
Perceptions of reliability tend to follow the brand rather than individual models in the brand. For example, Korean and Domestic brands have the highest rates of avoidance due to reliability concerns.
"Perceptions are powerful among new-vehicle shoppers," said Denove. "Reliability is critical to new-vehicle shoppers, and manufacturers can suffer from poor reputations for reliability long after they make improvements in quality. The key is in effectively communicating vehicle strengths to consumers in order to close the gap between perception and reality."
The study also finds that personal experiences with manufacturers play an important role in why certain makes are avoided. More than one out of 10 vehicles consumers failed to consider were specifically avoided because of either their own bad experience or a friend telling them not to purchase that vehicle.
"This should serve as a wake-up call to manufacturers on the dangers of not satisfying their customers," said Denove. "Personal experiences, whether it be the buyer's own experiences or those of people they know, are the most influential sources of information buyers use during the shopping process. The choice is simple-satisfy your customers today or pay a small fortune in incentives to get people into the showroom the next time around."
The top 10 reasons consumers avoid vehicles:
Styling
Reliability concerns
Cost
Too small
Poor quality
Resale value
Lack of incentives
Poor performance
Maintenance costs
Too big
-----------------------------------------------
Rest of article here:
-----------------------------------------------
The Daily Auto Insider
Friday, October 10, 2003
October 2003
Models that inspire a "love it or hate it" attitude in terms of styling often have a sales advantage, according to the J.D. Power and Associates 2003 Avoider Study.
Power says in a news release that this inaugural study investigates why consumers fail to consider (avoid) particular models when shopping for a new vehicle. In addition, the study identifies the level of awareness consumers have of certain models.
The study finds that exterior styling is by far the most frequently stated reason shoppers avoid particular models. However, models with controversial styling that polarize opinions, such as the Chrysler PT Cruiser, Chevrolet Avalanche and Infiniti FX, often sell quicker and at a higher profit margin than models that fail to generate passion in either direction. On average, "love it or hate it" models move off dealer lots four days faster and at a $609 higher profit margin than models that are neither purchased nor avoided due to styling.
"It's better to polarize some shoppers than to generate mass apathy," said Chris Denove, partner at J.D. Power and Associates. "There is nothing wrong with a model that has a high rate of avoidance due to styling, provided this is offset by a significant number of shoppers who purchase the model because of styling. Of course, if given a choice, I'd rather create designs like the Jaguar S-Type or Infiniti G-35 Coupe, which offer the type of styling that is universally liked and rarely avoided."
Shoppers avoid specific vehicles because of their perceptions, even if those perceptions differ from reality. For example, BMW and Mercedes-Benz models are frequently avoided because shoppers feel they cost too much to maintain. This is a case where perception does not match reality because both brands provide free maintenance to buyers.
Perceptions of reliability tend to follow the brand rather than individual models in the brand. For example, Korean and Domestic brands have the highest rates of avoidance due to reliability concerns.
"Perceptions are powerful among new-vehicle shoppers," said Denove. "Reliability is critical to new-vehicle shoppers, and manufacturers can suffer from poor reputations for reliability long after they make improvements in quality. The key is in effectively communicating vehicle strengths to consumers in order to close the gap between perception and reality."
The study also finds that personal experiences with manufacturers play an important role in why certain makes are avoided. More than one out of 10 vehicles consumers failed to consider were specifically avoided because of either their own bad experience or a friend telling them not to purchase that vehicle.
"This should serve as a wake-up call to manufacturers on the dangers of not satisfying their customers," said Denove. "Personal experiences, whether it be the buyer's own experiences or those of people they know, are the most influential sources of information buyers use during the shopping process. The choice is simple-satisfy your customers today or pay a small fortune in incentives to get people into the showroom the next time around."
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The above confirms my comment about Acura not needing RWD as much as it needs STYLE.
Let's examine the reasons having Acura in mind one by one:
Styling
Acura has none. Period.
Reliability concerns
Acura kicks ass here. Period.
Cost
Acura still kicks ass here.
Too small
Irrelevant to the point I am trying to make. That is dependant upon model and category.
Poor quality
Acura is doing great here too.
Resale value
Not bad, not good. Middle of that pack I would say. If not better than middle for Acura.
Lack of incentives
No need for Acura to worry here because their cars are priced as discounted already. Although I have read articles of Acura execs saying that Acuras dont sell cos they have no incentives. I disagree.
Poor performance
Acura also is kicking ass here. MOre torque is what's needed for certain models. Handling is there too. Acura has no issues here.
Maintenance costs
Acura is probably at the top here. Actually the competition from Germany is very much lacking in this metric. German luxo cars have a lot more extensive maintenance schedules than offerings from Japan. Especially Lexus and Acura.
Too big
Irrelevant to the point I am trying to make. That is dependant upon model and category.
SO?
PUT SOME DARN STYLE INTO YOUR CARS ACURA PEOPLE. That's all you need at this point.
Let's examine the reasons having Acura in mind one by one:
Styling
Acura has none. Period.
Reliability concerns
Acura kicks ass here. Period.
Cost
Acura still kicks ass here.
Too small
Irrelevant to the point I am trying to make. That is dependant upon model and category.
Poor quality
Acura is doing great here too.
Resale value
Not bad, not good. Middle of that pack I would say. If not better than middle for Acura.
Lack of incentives
No need for Acura to worry here because their cars are priced as discounted already. Although I have read articles of Acura execs saying that Acuras dont sell cos they have no incentives. I disagree.
Poor performance
Acura also is kicking ass here. MOre torque is what's needed for certain models. Handling is there too. Acura has no issues here.
Maintenance costs
Acura is probably at the top here. Actually the competition from Germany is very much lacking in this metric. German luxo cars have a lot more extensive maintenance schedules than offerings from Japan. Especially Lexus and Acura.
Too big
Irrelevant to the point I am trying to make. That is dependant upon model and category.
SO?
PUT SOME DARN STYLE INTO YOUR CARS ACURA PEOPLE. That's all you need at this point.
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"For example, BMW and Mercedes-Benz models are frequently avoided because shoppers feel they cost too much to maintain. This is a case where perception does not match reality because both brands provide free maintenance to buyers."
Sure. Maintanance they have already paid cos it's included in that super inflated German sticker of theirs. It makes it sound like Maintanance for BMW cars is FREE. Sure. That's how BMW became so financialy strong? By offering freebies? What a bunch of "sales-y" lip service crap!
Sure. Maintanance they have already paid cos it's included in that super inflated German sticker of theirs. It makes it sound like Maintanance for BMW cars is FREE. Sure. That's how BMW became so financialy strong? By offering freebies? What a bunch of "sales-y" lip service crap!
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So perceptions are powerfull. Perceptions of reliability and others. True. But think of this.
I say, the reason perceptions of certain criteria for vehicles are so powerful is because they concern criteria NOT IMMDIATELLY IDENTIFIABLE/VISIBLE BY CONSUMERS. What does that mean?
Can you see a car and tell if it's gonna be reliable? No. Can you see a car and right away tell that it's gonna be expensive or cheap to maintain? No.
But think of this now. Can you see a car and right away tell if has STYLE? Abosultely. In other words, you dont need to excell in styling for years before consumers perceive you as a stylish company. ALl it takes is one glance and perception changed.
My point: If Acura is mainly lacking STYLE it's easy for that change quickly. Just do it Acura. That's all.
I say, the reason perceptions of certain criteria for vehicles are so powerful is because they concern criteria NOT IMMDIATELLY IDENTIFIABLE/VISIBLE BY CONSUMERS. What does that mean?
Can you see a car and tell if it's gonna be reliable? No. Can you see a car and right away tell that it's gonna be expensive or cheap to maintain? No.
But think of this now. Can you see a car and right away tell if has STYLE? Abosultely. In other words, you dont need to excell in styling for years before consumers perceive you as a stylish company. ALl it takes is one glance and perception changed.
My point: If Acura is mainly lacking STYLE it's easy for that change quickly. Just do it Acura. That's all.
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Originally posted by heyitsme
well lexus has no style and they sell off the charts.
well lexus has no style and they sell off the charts.
Couple of things:
1. Lexus has a lot more style than Acura does. I am sure we all agree on that.
2. Lack of style (compared to the competition) is becoming one of Lexus' most important priorities currently. Sales have been down lately and Lexus knows that they have to deliver. Spy shots and sketches of the upcoming GS shows that Lexus is working hard on improving in that segment.
Actually LExus execs have publiclly stated that Lexus designs have got to get more "spicy" in the immediate future.
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apprently im the only one who thinks that "reliability" includes transmissions?
i dunno i think they are reliable just not as much as gav thinks, not like toyota
i dunno i think they are reliable just not as much as gav thinks, not like toyota
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Originally posted by Python2121
apprently im the only one who thinks that "reliability" includes transmissions?
i dunno i think they are reliable just not as much as gav thinks, not like toyota
apprently im the only one who thinks that "reliability" includes transmissions?
i dunno i think they are reliable just not as much as gav thinks, not like toyota
Trannys. Come on. Please compare that to the number of cars sold and divide to see who got tranny problems from a percentage standpoint. Just because we, in this forum, heard a lot about this issue, does not mean that Acuras are not reliable cars.
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Originally posted by gavriil
I never said that Acuras are THE most reliable cars on the road. What I can easily claim though is that they are some OF the most reliable cars on the road. That's for sure.
Trannys. Come on. Please compare that to the number of cars sold and divide to see who got tranny problems from a percentage standpoint. Just because we, in this forum, heard a lot about this issue, does not mean that Acuras are not reliable cars.
I never said that Acuras are THE most reliable cars on the road. What I can easily claim though is that they are some OF the most reliable cars on the road. That's for sure.
Trannys. Come on. Please compare that to the number of cars sold and divide to see who got tranny problems from a percentage standpoint. Just because we, in this forum, heard a lot about this issue, does not mean that Acuras are not reliable cars.
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Originally posted by Python2121
good points but i have to add that so far we've had 2 acuras, mine for a year and my brothers integra for 2 and we haven't had one problem with either
good points but i have to add that so far we've had 2 acuras, mine for a year and my brothers integra for 2 and we haven't had one problem with either
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