Goodbye Family Car...Hello Family Light Truck
20 January 2000
Polk Study Reveals Changing Vehicle Needs for U.S. Families DETROIT -- It appears the family vehicle of choice in the United States has
shifted from cars to light trucks, according to an analysis released today
by The Polk Company. Minivans and Sport Utility Vehicles have the highest
concentration of vehicle owners with children in all automotive categories,
findings that vary significantly from the 1960s when families with children
preferred large cars and station wagons.
More than half of today's new minivan owners (53.6 percent) have at least
one child under the age of 18 in their household. The SUV segment follows
closely, with more than four in ten SUV owners (44.7 percent) buckling in baby
and booster seats, transporting soccer teams and equipment, or dropping
children off at the nearby mall or theater multiplex.
Polk's analysis also revealed that SUV and Minivan buyers desire very
similar characteristics in their new vehicles. Both buyers look mainly for
vehicles that can be described as a "family vehicle," "spacious," "reliable"
and "functional." The chart below shows the major characteristics sought by
these two buyer groups.
Characteristic Most Desired in New Vehicles*
(Households with children under 18 years of age)
Minivan Buyers SUV Buyers
Family Vehicle 59.33% 20.42%
Spacious 10.41% 9.83%
Practical 8.08% 5.94%
Reliable 7.73% 14.73%
Functional 7.70% 19.61%
Rugged .06% 7.54%
*Source: Polk's Manufacturer Loyalty Excelerator(TM) Study, 1999 Model
Year Polk Report On Family Cars 2/2/2/2
Multi-tasking parents are not only using their vehicles for
transportation, but also seizing the opportunity for "quality time" with their
kids. As a result, these "dinner tables on wheels," that often roll down the
road over 60 miles per hour, have created safety standard and visibility
challenges for manufacturers.
Minivan owners are duly concerned about safety standards, evidenced by a
higher demand for safety information when they shop the Internet. In addition
to increasing their use of the Internet when vehicle shopping, minivan buyers
were the group most likely to have obtained safety information via the Web.
Rebate/incentive offerings were also frequently sought by this group.
Type of information obtained BY SHOPPERS VIA Internet
Shopper by segment of Safety Incentives/Rebates
purchased vehicle Information Offered
Total New Minivan owners 56.99% 39.75%
Total New Vehicle owners 42.53% 39.05%
*Source: Polk's Manufacturer Loyalty Excelerator(TM) Study, 1999 Model
Year
In fact, six out of every ten new minivan owners with children received a
financial incentive when purchasing their vehicle. Karen Piurkowski, Polk's
director of loyalty, noted, "the majority of these owners indicated that their
incentive strongly influenced their purchase decision. Manufacturers and
dealers are not only challenged with offering competitive rebates, they now
must make incentive and safety information easy to find on their Web sites."
With increased functionality and the evolution of incentives, the minivan
and SUV segments have steadily gained in share of vehicles-in-operation since
1985. Responding to consumer needs, there will be 25 new light truck models
(and 16 fewer car models) manufactured by the 2002 model year.
Segment Share of U.S. Vehicles-In-Operation
Segment 1985 1990 1995 1998
Pickup Truck 16.6% 17.5% 18.6% 18.5%
Full-Size Van 3.6% 3.2% 2.8% 2.5%
Minivan 0.6% 2.7% 4.9% 5.8%
SUV 2.7% 4.4% 6.6% 8.6%
Luxury car 7.8% 9.0% 9.4% 9.5%
Sporty car 8.4% 8.7% 8.0% 7.3%
Large car 10.8% 7.9% 6.6% 5.9%
Midsize car 34.0% 30.5% 28.3% 27.6%
Small car 15.5% 16.0% 14.9% 14.4%
Source: Polk
Offering high-tech amenities like video entertainment centers and voice
technology commands, today's "home away from home" vehicles are designed to
make the driving experience a pleasure, regardless of where you are seated.
Anticipating movement within vehicle segment requirements (e.g., baby seats
may no longer be required), manufacturers expect the mini-SUV segment to
experience significant growth within the next few years.
Automotive manufacturers continue to position themselves to meet the
vehicle needs of today's family. "We're witnessing the influence of children
on product design and offerings. It will be interesting to see how Generation
X buyers and their buying habits react to the growth of the mini-SUV segment,"
Piurkowski said.
Polk's Manufacturer Loyalty Excelerator(TM) product, which is the basis
for the Polk Automotive Household Loyalty Awards, provides the latest insight
into this type of consumer behavior. This study was introduced to the
automotive industry in 1995 and was created to provide household loyalty
information to manufacturers at many different levels. It is also being used
to determine the awards; provide loyalty percentages for the entire automotive
industry; enable cross-industry comparisons of loyalty behavior; and examine
loyalty at various levels -- e.g., from the industry level down to the vehicle
line level. The Loyalty Excelerator study measures loyalty throughout the
entire model year so that manufacturers may keep abreast of loyalty trends as
they occur in the industry.
Polk is a global company delivering multi-dimensional intelligence to the
auto industry to enhance the relationships consumers have with brands.
Through lifetime understanding of individuals, Polk helps clients maintain
current customers, win new ones and build their brand loyalty. Based in
Southfield, Mich., Polk is a privately held firm currently operating in
Australia, Canada, China, France, Germany, Holland, Spain, the United Kingdom
and the United States.
