J.D. Power and Associates Reports: Vehicle Price and Gas Mileage Play Increasingly Important Roles in Vehicle Consideration

WESTLAKE VILLAGE, Calif., Nov. 25, 2008; New-vehicle buyers are increasingly likely to avoid specific models due to price or gas mileage, according to the J.D. Power and Associates 2008 Avoider Study(SM) released today.

The study, now in its sixth year, examines the reasons consumers fail to consider particular models when shopping for new vehicles. The 2008 study finds that 23 percent of new-vehicle buyers cite price as a reason they avoided a certain model during the shopping process. Gas mileage is also becoming a more important factor, both in vehicle buyers' avoidance of some models and selection of other models. Poor gas mileage as a reason for avoidance has increased dramatically in the past four years, climbing to 13 percent in 2008 from 7 percent in 2004.

"In these tough economic times, a significant number of would-be new-vehicle buyers are postponing their purchases, but for those who are purchasing new vehicles, the market has shifted toward smaller, less expensive and more fuel-efficient models," said Jon Osborn, research director at J.D. Power and Associates. "Although we've recently seen a considerable decrease in the price of gasoline, consumers will not soon forget having had to pay in the range of $80 to $90 for a tank of gas earlier this year."

The study also finds that even as gas mileage has become increasingly important to new-vehicle buyers, only 4 percent of buyers cite environmental concerns as a reason for avoidance, compared with 5 percent in 2007.

"With the recent trend in automotive marketing centered on 'green' vehicles for environmentally conscious buyers, it seems that now would be the time that environmental concerns would resonate strongly with new-vehicle buyers," said Osborn. "However, the reality is that environmental concerns are seldom mentioned as a reason to either avoid or purchase specific models. Gas mileage is now the primary factor in the new vehicle purchase decision, so it appears that buyers are looking for better gas mileage as a way to save money, rather than out of concern for the environment."

While styling remains the reason for avoidance cited most often by new-vehicle buyers (43%), the study finds that other product-related concerns -- such as long-term reliability, quality and resale value -- are also very important to consumers. Reliability concerns are cited by 22 percent of buyers as a reason for avoidance, while resale value is cited by 16 percent and concerns about poor quality by 14 percent.

"The halo effect of a brand's product quality and dependability on its models, and vice versa, is critical to brand image and consideration," said Osborn. "A vehicle brand that has a perception in the marketplace for poor quality faces an uphill battle when it comes to winning customers, and these negative brand perceptions -- whether true or not -- are among the most difficult to overcome in the short term. Quite often, vehicles are avoided due to quality concerns to a greater extent than they may deserve. For instance, many buyers cite 'quality' as a reason for avoiding Ford and Chevrolet models, yet both of these brands earned above-average quality scores from owners in the J.D. Power and Associates 2008 Initial Quality Study."

The 2008 Avoider Study is based on responses from more than 33,000 owners who registered a new vehicle in May 2008. The study was fielded August through September 2008.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.