J.D. Power and Associates Reports: The Desire to 'Buy American' Drives Many New-Vehicle Shoppers to Purchase Domestic Rather Than Import Nameplates


WESTLAKE VILLAGE, CA USA


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.

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.

 

The title of the article is very misleading. Makes it sound like a trend vs a minor statistic. These 3 quotes give a great explanation on the current state of affairs Maybe GM will pull its head out of its own *** like Ford has done.

"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."


"

 

Maybe you oughta to explain what exactly GM is doing wrong and how it can pull its head out of its own ***.

From what I can see, Ford is behind GM as far as turnarounds are concerned.

 

Ford is far ahead. They've done the needed layoffs and as a company has finally accepted guilt. They are striving to be a lean, mean, and profitable company. While GM still seemingly has no direction whatsoever and most of its cars are complete garbage; and worst yet, it won't admit its failings. See the almost the entire Pontiac and Chevy line for details.

 

uh... really?

 

Buy American....uh....I can't do it! I just can't do it!

 

Is there a correlation with one of the Big Detroit Automakers offering a Lifetime Powertrain warranty?

 

Doubtful. That lifetime warranty is so chock-full of loopholes for the dealer, you'd think it was made of swiss cheese. *badum bum*

 

but, but, the ad is wonderful, and no one in America would lie to me

Maybe there is something wrong with me, but I have absolutely NO desire to purchase an american car. I can't wrap my head around the argument of "buy american because it is/you are american". Come up with a better product that won't quit after 6 monts and i'll consider it.

Maybe it's my inner libertarian but, simply being the home team isn't enough.

 

I can't say I agree with some of the GM comments, I think they make pretty good vehicles. The new Escalade is among my favorite SUV's along with the MB GL. The CTS has also come a looong way and of course... The Vette.

 

It seems that the reason why people don't buy american cars is because they are perceived as unreliable and the reason why people don't buy japanese cars is not because of the car itself but the fact that it's "japanese".

 

disagreed

How about people (such as myself) who have bought more than their own share of american cars, found them to be unreliable, then switched over?

I used to buy only American cars (by that I mean one of the cars from Detriot's big 3, because a lot of these "imports" are actually built here anyway). I didn't just wake up one morning and decided that I wasn't buying American anymore.

And if Toyota started making cars with subpar reliability, I would not hesitate to leave them either.

 

I have to agree with you some here. I always state that it is amazing some Japanese cars or brands as a whole do well offering ugly or lackluster products just b/c its badged Japanese.

If its badged American, it fails, gets bashed and goes to hell.

Also, with this global economy, people don't even know what they are buying. THat 300C was built in Canada, that Camry/Accord is built in America.

 

High-5 on that one big guy. Ron Paul 4Life

 

This is an ignorant group of people when it comes to car buying. They don't understand "longterm ownership costs" or "total ownership costs". They look at ONE thing - The REBATES and final upfront price. It's one big reason why American car companies still exist at all. "Hey that Chevy has a $2,000 rebate!", "and Toyota isn't offering one". "Well, the Chevy it is!!"

They forget they will save thousands in repair costs, save on gas, save on having to buy another vehicle sooner, get more money back for much better resale value, ect, ect... for buying the Toyota. But with many Americans, it's NOW, NOW, NOW.

Well, consumer ignorance is the American Auto maker's only hope of survival.