Purchase perceptions

January 27th, 2012 - Joe Duarte

Demonstrates how important it is for automakers to promote the quality and reliability of their models.

Chevrolet-Volt

According to a J.D.Power study, the most important considerations for purchasing a Chevrolet Volt are fuel economy and image. The main reason for not considering it is price.

Buyers use notions over facts

Perception is a mighty motivator when it comes to new car purchases, finds J. D. Power and Associates in its 2012 Avoider Study.

Now in its ninth year, the study examines why consumers fail to consider (or even avoid) certain models when shopping for new vehicles. It’s based on responses from 24,045 owners who registered a new vehicle in May 2011.

The company found that more than 40% of new-car buyers avoided particular brands due to concerns over quality or reliability, though those opinions are based on conventional wisdom or common knowledge rather than personal experience, media reviews, ratings or third party recommendations.

“The fact that so many new-vehicle buyers may be basing their opinions about quality and reliability on pre-conceived notions, rather than concrete information or data, demonstrates how important it is for automakers to promote the quality and reliability of their models,” said Jon Osborn, research director at J.D. Power and Associates. “For some brands, namely those that have created marked improvements in their quality and reliability in recent years, it’s even more vital to tell their improvement story, rather than just waiting for perceptions to change.”

Among buyers who avoid particular brands, 43% base their decisions on “the brand’s vehicles’ being known to have poor quality/reliability,” 38% base it on ratings or reviews, and 14% base it on prior ownership of the model.

The study also found that 14% of buyers avoided import models because of their origin – the highest percentage ever. Conversely, the percentage of buyers who avoided domestic models due to their origin declined to 6%, an all-time low.

“The decline in avoidance of U.S. models due to their origin reflects a buy-American sentiment that surfaced as the economic recession led to domestic job losses and adversely affected major U.S. institutions such as the Detroit Three,” said Osborn. “In addition, the quality, dependability and appeal of domestic models have improved during the past several years.”

The most important reason for buying a new vehicle has become fuel economy, surpassing reliability, getting a deal and exterior styling (the top three reasons quoted in the 2010 study – the previous year it was conducted). That’s the main reason models such as the Chevrolet Volt, Nissan Leaf and Toyota Prius captured the attention of new car buyers. The second most important reasons were image (for the Volt), low maintenance costs (Leaf) and reliability (Prius).

Conversely, certain buyers avoided the latter two due to their exterior styling. The main reason for avoiding Volt was quoted as price.

 

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