New Accessory Study by Foresight Research: Nearly Half of New Truck Owners Spend $1,000 on Accessories

Study tells: What, Where, When, Who

Survey of full size truck buyers indicates the accessory market is a major opportunity for auto dealers and aftermarket retailers

ROCHESTER, Mich., Nov. 2 -- Because the market for light truck accessories is huge, a recent bellwether study has been completed that examines what customers want to purchase, where truck accessories are sold, and how automotive dealers, aftermarket retailers, OEMs and accessory manufacturers can generate increased business. Information from this syndicated study includes what accessories are most often purchased, where customers shop and buy, and how they learn about accessories. Research findings have been compared to past studies -- it is clear that there are changes afoot in the accessory marketplace. Selected results from the 2004 Full Size Pickup Truck Accessory Market & Option Packaging Study are being unveiled Tuesday at the annual SEMA Show in Las Vegas.

This comprehensive study was conducted this past spring by Foresight Research of Rochester, Mich. Recent buyers of new full size trucks were interviewed -- people who own or lease one of eight designated trucks: Cadillac Escalade EXT, Chevrolet Avalanche, Chevrolet Silverado, Dodge Ram, Ford F-Series, GMC Sierra, Nissan Titan, and Toyota Tundra.

Jim Spoonhower, Vice President of SEMA Market Research profiled findings from the study. "The findings from this study are important to all who play in the pickup truck accessory market," Spoonhower noted. "We find that there are big differences between the automotive dealers and the aftermarket retailers -- both have major opportunities here and both are important to the customer."

Methodology

Approximately 40,000 recent buyer households were contacted by Foresight to gather opinions about truck accessories. Among those contacted, 1,874 recent purchasers of the eight nameplates were interviewed. Respondents were qualified on the basis of having spent or planning to spend at least $500 on accessories. All respondents use their trucks primarily for personal use.

Key research findings:

* Respondents reported spending an average of $1,000 or more on accessories. Buyers of the Escalade EXT spent the most -- averaging $1470

* Based on participant responses, the biggest sales opportunity for truck accessories happens in the first year of ownership

* Compared to past results, spray in bed liners, grille guards, and tonneau covers are accessory growth areas; caps and drop in bed liners are on the decline

* When asked where they purchase, auto dealers seem to be the primary source of performance and appearance items while most other accessories are purchased at an aftermarket retailer

* Auto dealers seem to have an advantage on warranty, fit to vehicle and customer service, while aftermarket retailers have an edge on price and selection

* Accessory buyers shop on the Internet, followed by magazine advertising and word of mouth

Established in 1998, Foresight Research is a full-service market research company serving the automotive, financial services, healthcare, and other business sectors. This study was conducted under the direction of Steve Bruyn, CEO and Ron Hein, Executive Vice President - Automotive. Bruyn joined Foresight in 2002, following an 18-year career in senior marketing management at DaimlerChrysler, including managing the company's entire market research function and acting as brand manager for Chrysler/Plymouth. Hein joined Foresight last year following a successful career in senior marketing roles at Collins & Aikman Corp. where he was Vice President for Product Management and Marketing, and at DaimlerChrysler. Additional information about Foresight Research and on the availability of this and other syndicated studies can be found online at: http://www.foresightresearch.com/ or by calling 248-608-1870.