Weigh Benefits of Domestic and Imported
imported vehicles making up nearly 49
percent of the U.S. auto market, studies
show that a consumer's country of origin
plays a crucial role during the vehicle
to a recent J.D. Power and Associates
study, nearly 80 percent of new-vehicle
buyers limit their purchase consideration
to either only domestic models or only
import models. Additionally, among consumers
who cross-shop for both import and domestic
vehicles, those who ultimately buy domestic
frequently do so because they simply decide
they do not want an import.
study indicates that buyers of new domestic
vehicles frequently decide against import
brands for financial reasons. Import models,
unlike domestic brands, do not often offer
aggressive purchase rebates, discounts
or other consumer-driven incentives.
import buyers who reject domestic models
more frequently point toward the vehicle's
perceived attribute deficiencies as key
reasons for rejection. The study listed
domestic vehicle complaints such as concerns
for reliability, gas mileage or poor resale
to Kara Steslicki, research manager of
automotive retail for J.D. Power, the
study shows how import vehicles have gained
a strong foothold in the U.S. auto maket.
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," Steslicki said.
"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."
Steslicki says reliability and resale
value perceptions cannot be changed overnight,
and may require significant redesigns
to domestic products and production processes.
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," she said.
J.D. Power study also showed changes in
numerous new-vehicle shopper behavior
40 percent of all new-vehicle shoppers
cite price as a key reason for rejecting
a model. Interior (10 percent), dealership
experience (10 percent) and quality/reliability
concerns (9 percent) follow as the most
influential reasons for rejection.
45 percent of new-vehicle shoppers took
a test drive prior to rejecting a model,
and nearly 25 percent tried to negotiate
pricing before ultimately purchasing
a different model.
than 60 percent of consumers indicated
they researched a vehicle model online.
Additionally, more than 20 percent of
shoppers claim the Internet influenced
their decision to reject a vehicle.
who researched a model online 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
percent versus 5 percent, respectively).
price is a key issue among both hybrid
and non-hybrid purchasers, consumers
who shop for a hybrid are less likely
to reject for price (53 percent) than
consumers who shop for a non-hybrid
model (59 percent).
2007 study was based on responses from
31,355 new-vehicle buyers surveyed between
May and July 2007.