Consumers Hot Over Some New Vehicles Cool Over Others, Says TNS Automotive Study
 Consumers Salivate Over New Ford Cobra |
| Consumers Critique 2004 Models, Concluding Some Fall Flat, Including Many SUVs; Purchase Decision Influenced by Designs and Brand Image, New Research Reveals |
Auto manufacturers invest heavily in the designs of new car models and each year, these cutting edge styles drum up significant hoopla as they are unveiled at events such as the Detroit Auto Show and the New York Auto Show, to take place at New York's Javitz Convention Center through April 18. For the industry, new vehicles are expected to drive a significant portion of the year's sales, but do 2004 models resonate with consumers? According to a new study by TNS Automotive, a division of TNS, one of the world's three largest market information companies, the answer is yes - if the car is the BMW 6-series, Audi A8 or Ford Shelby Cobra.
The study, which ranked consumer reactions to new designs in conjunction with their purchase considerations, revealed that several vehicles scored a "look but won't buy" response including the Jaguar RD-6, Lincoln Mark X and Mitsubishi Eclipse. The research also showed that models by foreign luxury brands, such as Mercedes Benz, Lexus and BMW, took top honors in overall brand impressions. Surprisingly, Toyota and Honda ranked higher than some major luxury brands - in fact, Honda tied with Jaguar. Cadillac was the only domestic brand in the top 10 list, and the lowest ratings were given to the newer entrants to the U.S. market such as Scion and Kia.
"As auto manufacturers continue to rely significantly on new models, they need to understand that they will not be able to win customers over with great design alone if their brand image cannot support it. The design aspect of the vehicle helps build an emotional connection to the brand, and it is the combination of the two - design and brand image - that will ultimately stimulate sales," said Andy Turton, President of TNS Automotive.
The study also concluded that some new models boosted their respective brand images, with sporty vehicles driving the greatest improvement. For example, seventy-eight percent of consumers concurred that the Ford Shelby Cobra brought improvement to the Ford brand image, and seventy-six percent rated the Volkswagen Concept R as having the same impact on its parent brand. Vehicles in the SUV segment did not fare as well and were not seen as major improvements to their respective brands.
"BMW and Mercedes Benz's design innovations clearly appeal to consumers' interests. Coupled with the impact of their strong brand images, they really 'wow' audiences and inspire purchase consideration. On the flipside, others, especially the domestic brands, need to do some work to strengthen their brand image - to attract more sales," continued Turton.
Other key findings in the various vehicle segments include:
Luxury: Consumers ranked appealing vehicles in this segment as fun, modern and powerful along with more traditional traits such as stylish/classy.
Mid-Range: In the mid-range segment, the Pontiac G6 was the only vehicle that was rated above average in purchase consideration and appeal. This can be attributed to the fact that it was the only vehicle in this segment that respondents described as both stylish and practical.
Sporty: Brand plays a big role in rating the appeal of sporty vehicles. Of the three vehicles that rated highest in appeal and purchase consideration in this segment - Ford Shelby Cobra, Volkswagen Concept R, and Chevrolet Corvette - respondents listed "brand name" as one of the top two reasons why they favored the vehicle. These three vehicles also rated the highest in purchase consideration. To the contrary, consumers had a muted response to Scion's tC despite attractive styling and it provoked very limited interest.
SUV: With new stylish designs redefining the SUV segment, consumers no longer just want practicality and suitability. While the Mercedes Benz Vision GT appealed most to consumers because of its classy look, the Nissan Pathfinder rated the highest in purchase consideration because it combined family practicality with an adventurous style.
Truck: The truck segment, previously dominated by domestic auto manufacturers, showed signs that foreign manufacturers can titillate truck buyers. The Honda SUT and the Mitsubishi Truck, the brand's new entry to the segment, appealed to consumers with its modern and trendy designs.
Automotive Advertising
According to TNS Media Intelligence/CMR, the advertising and marketing information unit of TNS, last year, auto manufacturers spent $9.5 billion in advertising sales & leasing offers in the U.S., with the biggest ad spenders being Ford at $842 million and Nissan at $773 million. Although Mercedes Benz and Lexus spent significantly less in advertising - $145 million and $257 million respectively - they rated the highest in overall brand image, showing that they clearly connect well with their target audience.
About the Study
The nationwide study was conducted at the end of January 2004 and is based on a representative sample of 1,000 consumers between the ages of 22 and 65, who have intentions of buying a new car in the next three to four years. The respondents were asked to rate the vehicles that were showcased at the Detroit Auto Show, January 9 - 23, in multiple vehicle segments including luxury, sporty, mid-range, SUV and truck. In addition to the overall appeal of the vehicles, the study also measured purchase consideration, vehicle characteristics, price consideration and attitudes towards alternate fuel source vehicles.
About TNS Automotive
TNS Automotive is a global leader in providing marketing research and strategic counsel services to automotive manufacturers. TNS Automotive offers deep marketing science expertise through its exclusive interactive panel of more than one million U.S. households and automotive-specific research methodologies, including cutting edge qualitative techniques and rigorous quantitative applications, that track individuals' attitudes, beliefs and behavior toward the automotive industry. Utilizing its integrated and harmonized global knowledge sharing network and common methods, tools and standards, TNS Automotive replicates and transfers learning and knowledge anywhere in the world.
About TNS
TNS is a leading global provider of market information. The company collects, analyzes and interprets information to help its clients better understand the needs and wants of their customers. TNS provides research, advice and insight on market segmentation, advertising and communications, new product development, brand performance and stakeholder management. The company is also one of the leading providers of social and political polling.
From its global network, which spans 70 countries, TNS provides local expertise and knowledge, together with internationally consistent information and analysis to multi-national organizations.
TNS is listed on the London Stock Exchange (TNN). Further information can be found on http://www.tns-global.com.