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Strategic Vision Finds Only 1 in 10 Vehicle Buyers Impacted by Problems

5 May 1999

Strategic Vision Finds Only 1 in 10 Vehicle Buyers Impacted by Problems
    SAN DIEGO, May 4 -- Defects in 1999 models are less likely
than ever to mar new car buyers overall satisfaction with their purchase,
according to Strategic Vision, Inc.  The San Diego-based research company
today released the results of its 1999 Problem Impact Measure(TM)(PIM).
    Based on a survey of more than 33,000 new vehicle buyers, 32 percent of
new vehicle buyers reported defects industry-wide.  Only 11 percent are less
satisfied with their purchase because of flaws, down from 15 percent in 1998.
    Honda buyers were least impacted by defects.  While 23 percent reported
something wrong, only four percent said it affected their satisfaction.
Closely following Honda were Acura (five percent impacted) and Infiniti (six
percent).  Tied at eight percent were Plymouth, Saturn and Toyota.
    The PIM calculation considers not only the incidence of defects, but also
their severity, whether or not they were fixed and their impact on buyer
satisfaction.  It also factors in owners' expectations, which vary between
brands and segments.
    "Our research told us that counting defects doesn't tell the whole story,"
says Strategic Vision vice president, Daniel A. Gorrell.  "A loose screw in a
trim piece and failed brakes don't register the same with consumers.  Problems
that are fixed don't have the same impact as problems that are not.  So we set
out to uncover when and if satisfaction scores are lower if things go wrong."

    Other problem impact findings from the study reveal:

    --  Among full line corporations: the domestics are almost equal, with
Ford at 12 percent, and GM and DaimlerChrysler at 13 percent.  American Honda
at five-percent impact leads Asian manufacturers who average nine percent.
    --  Worst brand: with sixty-two percent of Kia's buyers reporting defects,
28 percent said it affected overall satisfaction with their purchase.
    --  Most improved brands: Hyundai (14 percent) and Mitsubishi (12 percent)
both recorded a nine percentage point drop.
    --  Best 1999 models:  Honda Accord Sedan owners were least impacted by
defects (three percent), though fewer Toyota 4Runners buyers had defects (17
percent vs. 23 percent for Accord).  Both the 4Runner and the Acura Integra
were next lowest on the impact measure at four percent.
    --  Worst 1999 model:  27 percent of Ford Windstar buyers said their
overall satisfaction was lower because of defects, a figure probably due to
new-model startup problems.

    To be included in the survey, new owners surveyed had to purchase their
vehicles in October and November of 1998 and have driven them for at least 90
days.
    "Defects are becoming an increasingly minor issue for most new vehicle
consumers," says Gorrell.  "Unless they're severe or not fixed the first time,
vehicle flaws today are pretty much irrelevant to overall owner satisfaction.
Buyers are now paying more attention to what is right in their vehicles and
how strong an emotional response they inspire."
    "The automotive industry has expended lots of time and money to make this
a non-issue for consumers," continues Gorrell.  "Getting it right off the
factory floor is just good business.  Consumers can't use defects as an excuse
to reject your vehicles, and you save money in warranty repairs.  In the end,
every body wins, because this is great news for buyers."
    More information about Strategic Vision, its Problem Impact Measure(TM)and
Total Quality Index(TM) are available at http://www.vision-inc.com.