J.D. Power and Associates Unlocks Keys to Consumer Automotive Preferences
16 December 1997
J.D. Power and Associates 1997 Brazilian Competitive Dynamics Study(SM) Unlocks Keys to Consumer Automotive Preferences
SAO PAULO, Brazil, Dec. 16 -- Approximately 64 percent of
Brazilian automotive buyers prefer domestic vehicles (Fiat, Ford, General
Motors and Volkswagen) while less than 14 percent of buyers prefer import
vehicles, according to the first consumer preference study launched in Brazil
by J.D. Power and Associates.
According to Julie Trausch, head of South American operations for J.D.
Power and Associates, the 1997 Brazilian Competitive Dynamics Study (CDS)
provides the Brazilian automotive industry with a comprehensive picture of how
consumers react at each crucial stage of the vehicle-buying cycle, from brand
awareness to the final purchase.
"The significant changes taking place in the Brazilian vehicle marketplace
illustrate how crucial it is for manufacturers to understand what drives the
consumer decision-making process when buying a new car or light truck,"
Trausch said. She added that the recent Brazilian financial market volatility
and fiscal package have made an immediate impact upon vehicle sales levels
that will continue into 1998.
Figures obtained from the 1997 CDS indicate that of Brazilian vehicle
buyers:
* 46 percent strongly prefer domestic vehicles,
* 18 percent somewhat prefer domestic vehicles,
* 6 percent somewhat prefer import vehicles,
* 8 percent strongly prefer import vehicles, and
* The remaining 22 percent have no preference.
Under current market conditions, J.D. Power and Associates projects that
light vehicle sales will fall to 1.6 million units in 1997, down slightly from
the company's previous forecast of 1.7 million units.
Trausch noted that the slowdown will affect domestic and import brands
alike, but will be particularly difficult for import manufacturers launching
new plants in the region during this time period. Challenges for the
"newcomers" will occur not only from the industry slowdown, but also because
new-vehicle buyers have different expectations of domestic importers.
More specifically, the study found that consumers who prefer domestic
vehicles cite ease of service as the most important consideration more than 80
percent of the time, followed by price and financing considerations,
dealership and resale value and parts availability. Conversely, import buyers
are more influenced by performance and fuel economy, styling, comfort and
convenience and quality.
"To gain market share, the newcomers must meet the needs of the domestic
customer base through infrastructure development, while appealing to existing
client needs -- particularly perceptions of quality," Trausch added.
"Specifically, this means appealing to the growing price-consciousness of
domestic buyers and supporting them with a positive dealership experience."
The J.D. Power and Associates 1997 Brazilian Competitive Dynamics
Study(SM) is based on 3,387 personal interviews with recent new-vehicle
buyers, drawn from a geographically diverse cross-section of Brazil and
covering all models with sales in excess of 5,000 vehicles per year plus
selected additions.
J.D. Power and Associates is an international firm best known for its
marketing information services in key business sectors including market
research, forecasting and customer satisfaction. The firm's quality and
satisfaction measurements are based on actual customer responses from over a
million consumers annually. With its headquarters in Agoura Hills,
California, the firm also has U.S. offices in Torrance, California; Michigan;
and Connecticut. Its international locations include Japan, Korea, England,
Canada and Brazil.
J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com. Email: info@jdpower.com.
No advertising or other promotional use can be made of the information in
this release or J.D. Power and Associates survey results without the express
prior written consent of J.D. Power and Associates.
SOURCE J.D. Power and Associates
