Strategic Vision: Consumers New Vehicle Total Quality Experience Survey
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Toyota Motor Sales repeated as the corporation with the most winners, four for Lexus (one a tie), one for Toyota and two for upstart Scion, which was the top-rated brand. General Motors won four segments, as did Honda/Acura (one a tie) and BMW/Mini. Nissan scored two wins, while Audi, Ford, Kia and Subaru had one apiece.
“A strong brand reputation equates in owners’ minds to value,” says Strategic Vision CEO Darrel Edwards, Ph.D. “The expected economic issues of reliability, durability and resale value can carry more weight than incentives since buyers define value not just by price paid, but what they get for their money.”
“For 2005,” continues Strategic Vision Vice-President Daniel Gorrell, “we’re seeing brands, such as Honda, Lexus and BMW, winning many segments on the strength of their reputations in long-term economic issues. In some cases they offered attractive leases on soon-to-be replaced models, and those soared to the head of their class. Incentives on less respected brands do not have the same effect.”
Scion showed major gains for 2005, unseating sister brand Lexus as highest scoring in Total Value. Two of its three models (xA and xB) led their segments, scoring well in value for the money, economical to own, extremely affordable, standard equipment and fuel economy.
Mini Cooper was the highest scoring model (803), followed by its convertible versions (793), Scion xA and Nissan Altima (tied at 791) and the BMW-3-Series (790). Segment leaders, based on ratings of more than 69,000 buyers, were:
Small Car Scion xA 791
Small Multi-Function Scion xB 770
Medium Car Nissan Altima 791
Medium Multi-Function Chevrolet Malibu Maxx 742
Larger Car Kia Amanti 773
Near-Luxury Car BMW 3-Series 790
Luxury Car Lexus GS, 778
Acura RL, 777
Lexus LS 430* 777 (tie)**
Luxury Multi-Function Audi A4 /S4 Avant 743
Small Specialty (<$25,000) Mini Cooper* 803
Small Specialty (>$25,000) BMW 3-Series Coupe 767
Mid-Specialty Car Honda Accord Coupe* 785
Convertible (<$30,000) Mini Cooper Convertible 793
Convertible (>$30,000) Cadillac XLR* 774
Minivan Honda Odyssey 719
Small SUV Honda Element 763
Medium SUV Toyota 4Runner* 721
Medium Crossover Nissan Murano 733
Large SUV Chevrolet Tahoe 716
Near Luxury SUV Lexus RX 330* 763
Luxury SUV Lexus GX 470* 772
Compact Pickup Subaru Baja 753
Full-Size Pickup Ford F-150* 721
Heavy Duty Pickup GMC Sierra 2500/3500 708
**Differences of 1-2 points are not statistically significant
*2004 Total Value Award winners
Survey respondents purchased their new vehicles between October 2004 and March 2005 and had owned them at least 90 days before they were surveyed. Only models designated 2005 were eligible for Total Value Awards™. Since this timeframe preceded manufacturers’ “employee discount” promotions, its effect on buyers’ perceptions and percent incentives is unknown. Industry-wide, buyers reported the use of incentives in 60 percent of sales. Scion, at 8 percent, used them the least, while Pontiac at 84 percent had the most frequent use. Overall, use of incentives fell for domestics from 82 to 78 percent, but increased for Japanese and European brands from 38 to 40 percent, and 32 to 33 percent, respectively.
At the heart of the Total Value Index™ is the quality of the ownership experience—everything involved in buying, owning and driving a new vehicle. All economics issues, both immediate (price, affordability, deal offered, warranty and standard equipment) and expected (durability, future trade-in, mileage, economical to own, reliability and durability) are then factored against that perceived quality.
Strategic Vision is a pioneer is researching buyer satisfaction as consumers define it: the complete ownership experience, including the emotional response. This information is used in calculating several annual indices: Total Quality Index™ (since 1995), Total Value Index™ (since 1996), Problem Impact Index (since 1989) and Total Delight Index™ (since 2000).
Founded in 1987, the company conducts leading-edge research in consumer and constituent decision-making for diverse companies. Clients include various auto manufacturers, as well as many Fortune 100 companies and governments worldwide.
For further information, contact Daniel Gorrell at (714) 544-3466; Dr. Darrel Edwards or Alexander Edwards at (858) 576-7141; or visit www.strategicvision.com.
