Polk: Midwesterners are Most Loyal Auto Customers
5 May 1998
Polk's Automotive Research Reveals Midwesterners Most Loyal
Midwest Shows Highest Loyalty to Vehicle Make; South and West Show Lowest
DETROIT, May 5 -- New vehicle buyer/lessees in the Midwest
are more loyal than any other part of the country, according to a study
released today by Polk.
The designated market areas (DMAs) exhibiting the highest average loyalty
to a particular vehicle make were located in the north-central census regions,
and included DMAs in: Michigan, Ohio, Iowa, North Dakota and Minnesota.
The least loyal DMAs were in the southern sections of the United States
and along the West Coast.
Findings are based on Polk's 1997 loyalty research involving more than
four million households.
Household loyalty is measured by examining new-vehicle-owning households
who returned to market during the 1997 model year to purchase or lease a new
vehicle.
The top-10 list is headed by Lima, Ohio (Allen County) which exhibited a
60.6 percent loyalty rate, significantly higher than the national average of
44.3 percent.
Top-10 Designated Market Areas for Vehicle-Make Loyalty
DMA Loyalty %
1. Lima, Ohio 60.62
2. Alpena, Mich. 58.76
3. Flint-Saginaw-Bay City, Mich. 56.48
4. Detroit, Mich. 56.46
5. Sioux City, Iowa 56.00
DMA Loyalty %
6. Minot-Bismarck-Dickinson, N.D. 55.33
7. Mankato, Minn. 55.31
6. Fargo-Valley City, N.D. 55.20
9. Madison, Wisc. 54.26
10. Traverse City-Cadillac, Mich. 53.95
National Loyalty Average 44.30
Four of the top 10 DMAs have proximity ties to domestic automobile
manufacturers either directly (Detroit and Flint) or indirectly (retirement
communities of Alpena and Traverse City). This, presumably, is a significant
reason for the higher loyalty because of discounts to employees and suppliers.
Polk's research has shown those who buy domestic vehicles tend to be more
loyal to the vehicle make than those who buy Asian and European vehicles. The
higher concentration of domestic owners in the north-central area of the
United States provides another explanation for the higher make-loyalty rate.
DMAs with the lowest make loyalty were located in the southern and western
rim of the nation with the lowest loyalty rate in the San
Francisco-Oakland-San Jose DMA (33.3 percent loyalty rate), displaying nearly
one-half the make-loyalty rate of Lima, Ohio.
The bottom 10 include:
Bottom-10 Designated Market Areas for Vehicle Make-Loyalty
DMA Loyalty %
1. San Francisco-Oakland-San Jose 33.83
2. Monterey-Salinas, Calif. 35.49
3. Laredo, Texas 35.67
4. Reno, Nev. 35.95
5. Honolulu 36.10
DMA Loyalty %
6. Biloxi-Gulfport, Miss. 37.12
7. Baltimore, Md. 37.69
8. Hattiesburg-Laurel, Miss. 37.91
9. Lafayette, La. 38.10
10. Baton Rouge, La. 38.12
National Loyalty Average 44.30
In addition to examining overall make-loyalty patterns, manufacturers may
examine their loyalty rates by geographic regions to better understand loyalty
within owner bases. Findings may be considered when setting up dealer
franchises and evaluating overall dealer loyalty performance. Geographic
loyalty results can also determine areas of the country where local event
planning can help boost owner-loyalty rates.
Polk's Manufacturer Loyalty Excelerator(TM) (MLEX), the basis for these
findings, provides consumer behavior insight and was created to provide
household loyalty information to manufacturers at various levels. MLEX
determines loyalty percentages for the entire automotive industry,
cross-industry comparisons of loyalty behavior and examines loyalty at various
levels -- e.g., from the industry level down to the vehicle-line level. The
study measures loyalty throughout an entire model year to identify trends as
they occur in the industry.
Polk has served the automotive industry for more than 75 years and is the
longest standing curator of automobile records in the United States. Founded
in 1870, Polk launched its motor statistical operations in 1922 when the first
car-registration reports were published.
Polk provides multi-dimensional intelligence information solutions to
companies as a statistician for the motor vehicle industry; as a direct
marketing resource; as a supplier of demographic and lifestyle data and
database marketing services; as a publisher of city directories; and as a data
enabler for geographic information systems. Polk is a privately held firm
with facilities around the world, including the United States, Canada,
England, Germany, and Barbados.
SOURCE Polk Automotive