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Morpace Reports: Detroit Big Three Face Hurdles Winning Customers Back From Imports

FARMINGTON HILLS, Mich., Feb. 19, 2009 -- In two consecutive Morpace Omnibus studies, only eight percent of car owners report having returned to a domestic nameplate after owning an import.

Bill Pendry, manager of Morpace's complexity management service, added that between 25 and 30 percent of those returning to a domestic vehicle say they did so to get a lower price, while a majority cited reasons including styling preference, improved domestic quality and reliability, along with vehicle size and riding comfort.

"This really puts scale on the challenge that domestic producers face," Pendry said. "Employing a competitive pricing strategy would leave any of the Detroit manufacturers competing for only a small percentage of car owners who will switch from an import to a domestic based on price."

The Morpace studies were fielded in November, 2008, and January, 2009. Each study had more than 1,000 interviews with consumers selected from an Internet panel of adults aged 18 and older. The sample reflects the demographic profile of the U.S. population.

About Morpace Inc.

Morpace is a full-service survey research and consulting organization specializing in automotive, financial services, health care, retail and technology. Morpace has global expertise in providing innovative proprietary solutions to clients in four core areas: market definition and segmentation; product development and pricing; brand and image positioning; and customer satisfaction and loyalty.

Established in 1941, Morpace Inc., an ISO 9001:2000 certified organization, is one of the largest privately held marketing research firms in the United States. Headquartered in Farmington Hills, Michigan the company has offices in Irvine, California; New York City; and London, England.

Visit www.morpace.com for more information.