Toyota owners most likely to buy another Toyota
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CL Community Team
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From: Canada
Toyota owners most likely to buy another Toyota
Westlake Village, California - In the United States, Toyota has the highest number of owners who purchase another model in the Toyota brand when they purchase a new vehicle, according to the J.D. Power and Associates 2004 Customer Retention Study released Thursday.
The study, now in its second year, finds that while nearly one-half of vehicle owners overall purchase another vehicle from the same brand, Toyota retains 60.6 percent of its owners. The replaced models that drive Toyota's high retention rates include the Camry Sedan (64.8%), Corolla (64.5%), Sienna (68.6%), Highlander (68.4%) and Tundra (64.8%).
Toyota is followed in the ranking by Lexus, which retains 59.5 percent of its owners, and Chevrolet, with a customer retention rate of 58.9 percent.
"Not only does Toyota offer its owners a wide range of vehicles to move up to as their financial means and stage in life change, but also the brand is highly successful in attracting new customers to the lineup, due in large part to its strong reputation for vehicle quality and high vehicle resale values," said Neal Oddes, director of product research at J.D. Power and Associates. "The redesigned Sienna minivan has been particularly successful in capturing former owners of Plymouth Voyager, Honda Odyssey, Dodge Caravan, Mazda MPV and Oldsmobile Silhouette models."
In addition to measuring retention rates, the study also analyzes the reasons consumers defect from the brand they own and are captured by other brands when they purchase a new vehicle. An important factor in defection is based on owners' experiences with their previous vehicles. Owners often defect from their brand because they had problems with long-term durability, high maintenance costs or poor experiences with dealer service. Conversely, brands are often able to capture new customers with attractive rebates and incentive offers, better vehicle styling, more cargo capacity, high resale value and better fuel economy.
The study finds that brands such as Toyota and Honda not only maintain high retention rates, but also capture more customers from other brands than they lose. For every one customer Toyota loses, it captures six from other brands. Honda gains four customers for every one it loses.
"Subaru is an example of a brand that maintains relatively high levels of customer retention, yet currently captures fewer new customers than it loses to other brands," said Oddes. "While Subaru has been successful in attracting new customers with the Forester, it will need to rely heavily on the new models it is introducing over the next few years to offset the defection rate to other brands and to establish a healthy longevity for the brand."
The 2004 Customer Retention Study is based on responses from more than 171,000 new-vehicle buyers and lessees, of which 103,088 replaced a vehicle that was originally purchased new.
Source
The study, now in its second year, finds that while nearly one-half of vehicle owners overall purchase another vehicle from the same brand, Toyota retains 60.6 percent of its owners. The replaced models that drive Toyota's high retention rates include the Camry Sedan (64.8%), Corolla (64.5%), Sienna (68.6%), Highlander (68.4%) and Tundra (64.8%).
Toyota is followed in the ranking by Lexus, which retains 59.5 percent of its owners, and Chevrolet, with a customer retention rate of 58.9 percent.
"Not only does Toyota offer its owners a wide range of vehicles to move up to as their financial means and stage in life change, but also the brand is highly successful in attracting new customers to the lineup, due in large part to its strong reputation for vehicle quality and high vehicle resale values," said Neal Oddes, director of product research at J.D. Power and Associates. "The redesigned Sienna minivan has been particularly successful in capturing former owners of Plymouth Voyager, Honda Odyssey, Dodge Caravan, Mazda MPV and Oldsmobile Silhouette models."
In addition to measuring retention rates, the study also analyzes the reasons consumers defect from the brand they own and are captured by other brands when they purchase a new vehicle. An important factor in defection is based on owners' experiences with their previous vehicles. Owners often defect from their brand because they had problems with long-term durability, high maintenance costs or poor experiences with dealer service. Conversely, brands are often able to capture new customers with attractive rebates and incentive offers, better vehicle styling, more cargo capacity, high resale value and better fuel economy.
The study finds that brands such as Toyota and Honda not only maintain high retention rates, but also capture more customers from other brands than they lose. For every one customer Toyota loses, it captures six from other brands. Honda gains four customers for every one it loses.
"Subaru is an example of a brand that maintains relatively high levels of customer retention, yet currently captures fewer new customers than it loses to other brands," said Oddes. "While Subaru has been successful in attracting new customers with the Forester, it will need to rely heavily on the new models it is introducing over the next few years to offset the defection rate to other brands and to establish a healthy longevity for the brand."
The 2004 Customer Retention Study is based on responses from more than 171,000 new-vehicle buyers and lessees, of which 103,088 replaced a vehicle that was originally purchased new.
Source
Lexus Test Driver
Joined: Feb 2004
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From: Texas
Toyota retains 60.6 percent of its owners. The replaced models that drive Toyota's high retention rates include the Camry Sedan (64.8%), Corolla (64.5%), Sienna (68.6%), Highlander (68.4%) and Tundra (64.8%).
Toyota has no loyalty cash, awards credit card....
Lexus Fanatic
Joined: Aug 2002
Posts: 5,813
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From: The Bay Area, CA, USA
Wow...Infiiniti placed 6th to last...a stark contrast to its placements in the reliability/quality studies.
Seems that Infiniti still has a long, long way to go in building its image.
Oh and BTW, my next car is 100% gonna be a Lexus.
Seems that Infiniti still has a long, long way to go in building its image.
Oh and BTW, my next car is 100% gonna be a Lexus.
Last edited by XeroK00L; Dec 10, 2004 at 11:41 AM.
Pole Position
Joined: Jan 2004
Posts: 3,379
Likes: 20
From: St. Thomas, Ontario
Re: Toyota owners most likely to buy another Toyota
Originally posted by SexySC
Westlake Village, California - In the United States, Toyota has the highest number of owners who purchase another model in the Toyota brand when they purchase a new vehicle, according to the J.D. Power and Associates 2004 Customer Retention Study released Thursday.
The study, now in its second year, finds that while nearly one-half of vehicle owners overall purchase another vehicle from the same brand, Toyota retains 60.6 percent of its owners. The replaced models that drive Toyota's high retention rates include the Camry Sedan (64.8%), Corolla (64.5%), Sienna (68.6%), Highlander (68.4%) and Tundra (64.8%).
Toyota is followed in the ranking by Lexus, which retains 59.5 percent of its owners, and Chevrolet, with a customer retention rate of 58.9 percent.
"Not only does Toyota offer its owners a wide range of vehicles to move up to as their financial means and stage in life change, but also the brand is highly successful in attracting new customers to the lineup, due in large part to its strong reputation for vehicle quality and high vehicle resale values," said Neal Oddes, director of product research at J.D. Power and Associates. "The redesigned Sienna minivan has been particularly successful in capturing former owners of Plymouth Voyager, Honda Odyssey, Dodge Caravan, Mazda MPV and Oldsmobile Silhouette models."
In addition to measuring retention rates, the study also analyzes the reasons consumers defect from the brand they own and are captured by other brands when they purchase a new vehicle. An important factor in defection is based on owners' experiences with their previous vehicles. Owners often defect from their brand because they had problems with long-term durability, high maintenance costs or poor experiences with dealer service. Conversely, brands are often able to capture new customers with attractive rebates and incentive offers, better vehicle styling, more cargo capacity, high resale value and better fuel economy.
The study finds that brands such as Toyota and Honda not only maintain high retention rates, but also capture more customers from other brands than they lose. For every one customer Toyota loses, it captures six from other brands. Honda gains four customers for every one it loses.
"Subaru is an example of a brand that maintains relatively high levels of customer retention, yet currently captures fewer new customers than it loses to other brands," said Oddes. "While Subaru has been successful in attracting new customers with the Forester, it will need to rely heavily on the new models it is introducing over the next few years to offset the defection rate to other brands and to establish a healthy longevity for the brand."
The 2004 Customer Retention Study is based on responses from more than 171,000 new-vehicle buyers and lessees, of which 103,088 replaced a vehicle that was originally purchased new.
Source
Westlake Village, California - In the United States, Toyota has the highest number of owners who purchase another model in the Toyota brand when they purchase a new vehicle, according to the J.D. Power and Associates 2004 Customer Retention Study released Thursday.
The study, now in its second year, finds that while nearly one-half of vehicle owners overall purchase another vehicle from the same brand, Toyota retains 60.6 percent of its owners. The replaced models that drive Toyota's high retention rates include the Camry Sedan (64.8%), Corolla (64.5%), Sienna (68.6%), Highlander (68.4%) and Tundra (64.8%).
Toyota is followed in the ranking by Lexus, which retains 59.5 percent of its owners, and Chevrolet, with a customer retention rate of 58.9 percent.
"Not only does Toyota offer its owners a wide range of vehicles to move up to as their financial means and stage in life change, but also the brand is highly successful in attracting new customers to the lineup, due in large part to its strong reputation for vehicle quality and high vehicle resale values," said Neal Oddes, director of product research at J.D. Power and Associates. "The redesigned Sienna minivan has been particularly successful in capturing former owners of Plymouth Voyager, Honda Odyssey, Dodge Caravan, Mazda MPV and Oldsmobile Silhouette models."
In addition to measuring retention rates, the study also analyzes the reasons consumers defect from the brand they own and are captured by other brands when they purchase a new vehicle. An important factor in defection is based on owners' experiences with their previous vehicles. Owners often defect from their brand because they had problems with long-term durability, high maintenance costs or poor experiences with dealer service. Conversely, brands are often able to capture new customers with attractive rebates and incentive offers, better vehicle styling, more cargo capacity, high resale value and better fuel economy.
The study finds that brands such as Toyota and Honda not only maintain high retention rates, but also capture more customers from other brands than they lose. For every one customer Toyota loses, it captures six from other brands. Honda gains four customers for every one it loses.
"Subaru is an example of a brand that maintains relatively high levels of customer retention, yet currently captures fewer new customers than it loses to other brands," said Oddes. "While Subaru has been successful in attracting new customers with the Forester, it will need to rely heavily on the new models it is introducing over the next few years to offset the defection rate to other brands and to establish a healthy longevity for the brand."
The 2004 Customer Retention Study is based on responses from more than 171,000 new-vehicle buyers and lessees, of which 103,088 replaced a vehicle that was originally purchased new.
Source
Lexus Connoisseur
Joined: Mar 2001
Posts: 19,895
Likes: 609
From: USA
Originally posted by rominl
yeah, i am not surprsied... let's see... toyota camry, then gs400, then is300, then.... who knows
yeah, i am not surprsied... let's see... toyota camry, then gs400, then is300, then.... who knows
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Lead Lap
Joined: Nov 2001
Posts: 4,593
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From: CA, Mid OC
I was surprised to see that Chevy's retention rate is so high, but then I remembered that rental car companies by Chevys, flog them for 30,000-60,000 miles, sell them and then buy more Chevys.
On a related note, I rented a Pontiac Sunfire as a means to get to the airport to fly for Thanksgiving and I have to say that I am astonished at GMs ability to make such terrible cars. What a piece of crap!
On a related note, I rented a Pontiac Sunfire as a means to get to the airport to fly for Thanksgiving and I have to say that I am astonished at GMs ability to make such terrible cars. What a piece of crap!
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Lexus Connoisseur
Joined: Mar 2001
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From: USA
Yep, alot of fleet cars are sold to rental agencies for dirt cheap, which is why you see POS cars like the Malibu, Cavalier, Sunfire and Aveo all over the place.
I used to work for Hertz in the past. They loved buying those pos cars since they were cheap. I hated driving them.
I used to work for Hertz in the past. They loved buying those pos cars since they were cheap. I hated driving them.
Lexus Connoisseur
Joined: Mar 2001
Posts: 19,895
Likes: 609
From: USA
Yep, alot of fleet cars are sold to rental agencies for dirt cheap, which is why you see POS cars like the Malibu, Cavalier, Sunfire and Aveo all over the place.
I used to work for Hertz in the past. They loved buying those pos cars since they were cheap. I hated driving them.
I used to work for Hertz in the past. They loved buying those pos cars since they were cheap. I hated driving them.
For Mind Cruising
Joined: Jan 2002
Posts: 4,766
Likes: 25
From: NSW
Hehehehe...
Just like my family... bought their first Toyota when they came to Australia (all brand new), an 84 Corolla, then an 88 Tarago van (minivan), then a 99 Tarago van (Previa) now they're looking at a new Prado (GX470)... and I've got my 93 Soarer and I'm looking at a beater (a 93~ Camry lol), then my little sister might be getting either a 95~ Celica or an N/A Supra 
Toyota fo life yo!
Jose
Just like my family... bought their first Toyota when they came to Australia (all brand new), an 84 Corolla, then an 88 Tarago van (minivan), then a 99 Tarago van (Previa) now they're looking at a new Prado (GX470)... and I've got my 93 Soarer
and I'm looking at a beater (a 93~ Camry lol), then my little sister might be getting either a 95~ Celica or an N/A Supra Toyota fo life yo!
Jose
Thread Starter
CL Community Team
Joined: Oct 2002
Posts: 30,283
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From: Canada
The complete list :
Toyota 60.6%
Lexus 59.5%
Chevrolet 58.9%
Hyundai 57.6%
Honda 55.2%
Ford 54.5%
Cadillac 52.8%
Mercedes-Benz 51.6%
BMW 51.4%
Kia 50.9%
INDUSTRY AVERAGE 48.4%
Jaguar 48.3%
Subaru 48.0%
Audi 46.0%
Saturn 45.0%
Dodge 44.5%
Buick 44.4%
GMC 44.1%
Lincoln 44.0%
Nissan 42.3%
Porsche 41.8%
Land Rover 41.3%
Acura 39.8%
Chrysler 39.5%
Volvo 39.3%
Jeep 38.3%
Mercury 34.4%
Volkswagen 33.7%
Pontiac 33.5%
Mitsubishi 31.8%
Infiniti 31.4%
Suzuki 31.4%
Saab 30.5%
Mazda 23.1%
Isuzu 7.0%
Oldsmobile 4.9%
Source: J.D. Power and Associates
Toyota 60.6%
Lexus 59.5%
Chevrolet 58.9%
Hyundai 57.6%
Honda 55.2%
Ford 54.5%
Cadillac 52.8%
Mercedes-Benz 51.6%
BMW 51.4%
Kia 50.9%
INDUSTRY AVERAGE 48.4%
Jaguar 48.3%
Subaru 48.0%
Audi 46.0%
Saturn 45.0%
Dodge 44.5%
Buick 44.4%
GMC 44.1%
Lincoln 44.0%
Nissan 42.3%
Porsche 41.8%
Land Rover 41.3%
Acura 39.8%
Chrysler 39.5%
Volvo 39.3%
Jeep 38.3%
Mercury 34.4%
Volkswagen 33.7%
Pontiac 33.5%
Mitsubishi 31.8%
Infiniti 31.4%
Suzuki 31.4%
Saab 30.5%
Mazda 23.1%
Isuzu 7.0%
Oldsmobile 4.9%
Source: J.D. Power and Associates
Pole Position
Joined: Jan 2004
Posts: 3,379
Likes: 20
From: St. Thomas, Ontario
Originally posted by SexySC
The complete list :
Toyota 60.6%
Lexus 59.5%
Chevrolet 58.9%
Hyundai 57.6%
Honda 55.2%
Ford 54.5%
Cadillac 52.8%
Mercedes-Benz 51.6%
BMW 51.4%
Kia 50.9%
INDUSTRY AVERAGE 48.4%
Jaguar 48.3%
Subaru 48.0%
Audi 46.0%
Saturn 45.0%
Dodge 44.5%
Buick 44.4%
GMC 44.1%
Lincoln 44.0%
Nissan 42.3%
Porsche 41.8%
Land Rover 41.3%
Acura 39.8%
Chrysler 39.5%
Volvo 39.3%
Jeep 38.3%
Mercury 34.4%
Volkswagen 33.7%
Pontiac 33.5%
Mitsubishi 31.8%
Infiniti 31.4%
Suzuki 31.4%
Saab 30.5%
Mazda 23.1%
Isuzu 7.0%
Oldsmobile 4.9%
Source: J.D. Power and Associates
The complete list :
Toyota 60.6%
Lexus 59.5%
Chevrolet 58.9%
Hyundai 57.6%
Honda 55.2%
Ford 54.5%
Cadillac 52.8%
Mercedes-Benz 51.6%
BMW 51.4%
Kia 50.9%
INDUSTRY AVERAGE 48.4%
Jaguar 48.3%
Subaru 48.0%
Audi 46.0%
Saturn 45.0%
Dodge 44.5%
Buick 44.4%
GMC 44.1%
Lincoln 44.0%
Nissan 42.3%
Porsche 41.8%
Land Rover 41.3%
Acura 39.8%
Chrysler 39.5%
Volvo 39.3%
Jeep 38.3%
Mercury 34.4%
Volkswagen 33.7%
Pontiac 33.5%
Mitsubishi 31.8%
Infiniti 31.4%
Suzuki 31.4%
Saab 30.5%
Mazda 23.1%
Isuzu 7.0%
Oldsmobile 4.9%
Source: J.D. Power and Associates
lmao!
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That is b/c toyota/Lexus does the RIGHT research. You win people over long term with quality. Anyone can make a car of 'the moment" . After quality, you need to have the vehicle(s) in the segment the buyer is looking for. Toyota pretty much has everything covered except the very small sports car market. Lexus has everything pretty much covered in the luxury arena.
I always said to myself "if Toyota/Lexus has a competing product, I will buy it". Only in markets they are not in would I probably go to another carmaker.
I always said to myself "if Toyota/Lexus has a competing product, I will buy it". Only in markets they are not in would I probably go to another carmaker.