Luxury Shoppers Find Alternatives in Upper Midsize and Near Luxury
9 October 1998
J.D. Power and Associates Reports: Luxury Shoppers Find Viable Alternatives in Upper Midsize and Near Luxury Vehicles; Upgraded Compact Vans Get Second Look from SUV Shoppers
AGOURA HILLS, Calif.--(AutomotiveWire)--Oct. 8, 1998--The emergence of improved upper midsize and near luxury vehicles/a has given luxury car shoppers a viable alternative, according to J.D. Power and Associates 1998 Escaped Shopper Study.
The study, based on responses from 3,000 potential customers of new luxury cars, SUVs, compact vans and upper midsize cars, analyzes the reasons why shoppers of a particular vehicle eventually reject it in favor of a competitive segment, make or model. The study also serves as a point of reference for manufacturers to gauge affluent shopper perceptions of vehicle deficiencies and efficiencies when compared to the competition.
Manufacturers of upper midsize vehicles are attracting traditional luxury shoppers by enhancing the image of the segment with improved styling, additional options and greater performance. Many luxury car shoppers are becoming more likely to consider an upper midsize or near luxury vehicle that fits their perception of high quality, prestige and sophistication. According to the study, 15 percent of respondents shopping for luxury cars purchased a vehicle in the upper midsize segment, while 40 percent purchased a near luxury vehicle. In addition, 27 percent of international luxury/b shoppers purchased a near luxury vehicle.
The study also found that product upgrades occurring within the compact van/c segment are transforming traditional notions about this segment, specifically among luxury vehicle shoppers. Such vehicles are becoming more closely aligned with perceived attributes of SUVs, which are generally viewed as aggressive, adventurous, youthful and rugged. In addition, some SUV shoppers are more likely to consider purchasing an upgraded compact van due to price considerations. The study reveals that seven percent of SUV shoppers eventually purchased an alternative vehicle within the compact van segment.
"The light-vehicle industry continues to move forward in terms of both product and pricing," said Lisa Whalen, director of automotive analysis at J.D. Power and Associates. "The corresponding rise in vehicle contenting has resulted in more high-end features available across most segments," she said. "It is important for manufacturers competing in these segments to not only understand what entices buyers to shop but also to determine what is ultimately at the crux of the final purchase decision."
Other notable findings in the study include the dynamics of the vehicle shopping process among affluent customers. Approximately 40 percent of SUV and luxury shoppers negotiated or attempted to negotiate the price before deciding against a purchase. Upper midsize shoppers are most inclined to take a test drive before deciding to reject a vehicle. Among all the vehicle segments studied, compact van shoppers refused test drives most often.
With headquarters in Agoura Hills, J.D. Power and Associates is a global marketing information services firm operating 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 more than 1 million consumers annually.
J.D. Power and Associates can be accessed through the World Wide Web at www.jdpower.com. Media e-mail contact: john.pepitone@jdpower.com.
This news release is provided for editorial use only. 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.
NOTES: /a: Upper midsize vehicles in this study include the Ford Taurus, Honda Accord, Nissan Maxima, Pontiac Grand Prix, Toyota Avalon, Toyota Camry and Volkswagen Passat. Some near luxury vehicles in this study include the BMW 3 Series, Mercedes-Benz C Class, Cadillac Catera and the Lexus ES 300.
/b: Some international luxury vehicles in this study include the BMW 5 Series, Lexus LS 400, and Mercedes-Benz E Class.
/c: Some upgraded compact vans in this study include the Chrysler Town & Country, Pontiac TranSport and Toyota Sienna.
