Tuesday, 21 January 2014

Technology Tips the Scales for Domestic Brand Car Buyers


By Bill McLauchlan

Despite the recent flood, never mind growing confusion and complexity, of the latest whiz-bang electronic auto gadgetry adorning new cars these days, it seems that very technology appeals to new-vehicle buyers who opt for a home-grown brand.

Thirty eight percent of those buying a domestic vehicle cite the latest tech features as a reason for their purchase decision. That compares with 33 percent who bought an import.
That’s the word from a just-released J.D. Power Avoider Study, based on responses from some 29,000 owners surveyed in 2013. The study examines the reasons consumers purchase, reject and why they do not consider – or avoid – particular models when shopping for a new vehicle.

Photo: Sam VarnHagen/Ford Motor Co.

And here’s the interesting twist: 40 percent of those who bought a domestic vehicle, but previously owned an import model, are even more likely to plump for ‘homie’ wheels due to its new technology and features.

By offering vehicles with the latest technological features, domestic brands are carving out a niche for themselves and it “appears to be getting the attention of consumers,” said Jon Osborn, research director at J.D. Power.


For both buying groups, having the latest tech toy is among the top 10 purchase reasons. But, for a third straight year, fuel mileage continues to be the most influential purchase reason (15 percent) and is the second-most-frequently given reason for rejecting a vehicle – behind price.

Styling, though, remains the most powerful reason for buyers to avoid shopping other models in the segment in which they bought (33 percent).

In other findings: Eighty one percent said they trolled the Internet to access online ratings and reviews prior to their purchase. Fifteen percent also reported online ratings and reviews as a reason they avoided a specific vehicle – a four percent jump since the last Avoider Study in 2010.

The latest study also noted the top five influential purchase reasons are quite different for mass market and luxury vehicle shoppers.

As you’d expect for the family transport/daily commute mass market crowd: Fuel economy rated first, followed by reliability (freedom from breakdowns), the “deal” (interest rates/rebates), styling, and performance. But performance (power, handling, etc.) was most influential for luxury buyers with quality (workmanship, materials, fit and finish) quoted second. Styling, the image the vehicle portrays, and reliability rounded out their top five purchase influencers.

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