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New Car shoppers looking at MORE models & avoid Hybrid / Electric

Shoppers are looking at MORE MODELS in their quest for a new car, according to the annual "Avoider Study" by J.D. Powers. Their 2013 data show buyers consider an average of 2.13 new vehicles during their shopping cycle, up from 3.1 in 2012 and 2.9 in 2011.

According to Jon Osborn, research director at J.D. Power and Associates, "factors, such as gas mileage, styling and comfort, play an important role in the decision-making process. The study findings suggest that marketing a brand image is just as important as building reliable vehicles."

Other highlights from the study include:

  • Shoppers who avoid a model due to reliability reputation dropped by 2% to 17%
  • One-third of shoppers AVOID a vehicle due to exterior styling, while fewer than one-fifth avoid a model because of the interior
  • Fuel economy is still the most influential purchase reason
  • More than one-third of shoppers reject Hybrid or Electric vehicles because of price / value

Full press release is below.


2013 Avoider Study

J.D. Power and Associates Reports: New-Vehicle Shoppers Are Considering More Models, as Concerns Regarding Reliability Diminish Cost and Styling Issues are Top Reasons Why Consumers do not Consider Hybrid and Electric Vehicles WESTLAKE VILLAGE, Calif.: 16 January 2013 -- As perceptions of both reliability and actual vehicle dependability improve, new-vehicle shoppers are considering more models before making their purchase decision, according to the J.D. Power and Associates 2013 Avoider StudySM released today. The study, now in its 10th year, examines the reasons consumers do not consider--or avoid--particular models when shopping for a new vehicle.
As vehicle reliability improves across the industry, new-vehicle shoppers now consider an average of 3.3 vehicles in 2013, compared with 3.1 in 2012 and 2.9 in 2010. Additionally, fewer shoppers (21%) in 2013 purchased their vehicle without cross-shopping other models, compared with 26 percent in 2012 and 29 percent in 2010.
The study finds that only 17 percent of new-vehicle shoppers avoid a model due to its reputation for reliability, compared with 19 percent in 2012 and 21 percent in 2009. Not only has the perception of reliability and dependability improved, but also the actual quality of vehicles has improved, as the average number of problems per 100 vehicles (PP100) after three years of ownership has decreased to 132 PP100 in 20121 from 170 PP100 in 2009.
"Improved actual and perceived reliability has leveled the playing field, allowing many manufacturers to be considered among new-vehicle shoppers that may not have been considered in the past," said Jon Osborn, research director at J.D. Power and Associates. "Factors, such as gas mileage, styling and comfort, play an important role in the decision-making process. The study findings suggest that marketing a brand image is just as important as building reliable vehicles."
The styling of the model, and the image it portrays, are among the primary reasons new-vehicle shoppers avoid particular models. One-third (33%) of shoppers avoid a model because they do not like its exterior look or design, while 19 percent of shoppers do not consider a model because they don't like its interior look or design. The study finds that the image a model portrays plays an important part in avoidance. Nearly one in five (17%) new-vehicle shoppers avoid a model because they don't like the image it portrays.
"The impact that design and brand image have on new-vehicle shoppers is substantial," said Osborn. "Shoppers are concerned about what the vehicle says about them as people and how it can express their individual tastes, just as much as it is about being reliable or holding its value throughout the tenure of ownership."
Gas mileage remains the most influential purchase reason, similar to 2012, with 15 percent of new-vehicle owners in 2013 saying it was the primary reason for purchasing their vehicle. Although young owners (under age 25) cite gas mileage as the most influential purchase reason more often than their older counterparts, owners in all age groups indicate gas mileage is the most influential purchase reason.
Alternative Powertrain Vehicles New-vehicle shoppers avoid hybrid or electric vehicles because of cost/price (36%) and exterior styling (25%) more than any other reasons. Even when considering a hybrid or electric vehicle, 36 percent of shoppers cite price/payment as the primary reason for rejecting them as a purchase option.
Although the cost and styling of hybrid and electric vehicles detract some shoppers from considering them, among those who purchased a hybrid or electric vehicle, 95 percent say that they did so due to gas mileage, while 62 percent say that it was due to environmental impact.
"Hybrid and electric vehicle owners want to get the most out of a gallon of gas and minimize the environmental impact, even if that means spending more money to purchase the vehicle," said Osborn. The 2013 Avoider Study is based on responses from approximately 31,000 owners who registered a new vehicle in May 2012. The study was fielded between August and October 2012.
[1] Source: J.D. Power and Associates 2012 Vehicle Dependability StudySM

Tom LaPointe CarChat24 Marketing Consultant

www.carchat24.com/ 24/7 Interactive Automotive Dealer Website LIVE CHAT Solutions Managed Chat, Backup Chat Support, and chat software options 727-638-0195

A U.S. Marine Corps veteran, Tom has an MBA in Marketing and is an automotive writer and author with nearly 20 years experience in virtually every aspect of the retail auto industry. He has been involved with the internet from the beginning, building websites at Johns Hopkins University in the 90's, and has been a performance leader in nearly every dealer role, from sales and service, to BDC / internet sales and viral marketing.

Tom LaPointe CarChat24 Marketing Consultant

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