Filed under: Car Buying, Trucks/Pickups, Chevrolet, Dodge, Ford, Nissan, Toyota
Duh: J.D. Power finds strong loyalty among truck buyers
The full-size truck market is going through many changes of late. New trucks introduced by GM and soon Toyota will each have a significant impact on where truck buyers spend their money in the future. What makes the full size truck buyer tick? A study released by J.D. Power might just have the answers.
Domestic truck buyers seem to have the strongest reason for buying a domestic truck. A full 48% of those surveyed stated that they wouldn't buy an import specifically because they do not want an import-branded truck. Import truck buyers feel strongly to the contrary, but only 33% stated that they would avoid a domestic for the same reason.
Some other concerns stated by the domestic truck buyers group were that they just did not like the look or design of the imports (33%) and that they didn't believe that an import-branded truck would be rugged enough (20%). Conversely, an extremely small number of them (5%) stated reliability as a concern with an import, where reliability of a domestic branded truck was very high on the list of the import truck buyer at 25%.
Full-size truck drivers are a very dedicated and brand-loyal bunch. They're savvy consumers whose opinions are often overlooked by know-it-all marketers. This survey clearly shows the strong perceptions of the group and should be given the weight it deserves by all manufacturers, domestic and import.
Read the press release after the jump.
[Source: Automotive Digest via J.D Power]
J.D. Power and Associates Reports:Brand Origin Continues to Play a Critical Role in Vehicle Consideration by Large Pickup Truck Buyers Vehicle Styling is the Top Reason Consumers Avoid Consideration of Some Models
WESTLAKE VILLAGE, Calif.: 30 November 2006 - Although the large pickup truck segment encompasses both domestic and import brands, vehicle brand origin continues to be a top reason new-vehicle buyers avoid certain large truck models, according to the J.D. Power and Associates 2006 Avoider StudySM released today.The study, which examines the reasons consumers fail to consider particular models when shopping for a new vehicle, finds that nearly one-half (48%) of buyers of domestic-branded large pickup trucks avoid import models within the segment because they specifically do not want an import-branded truck. Conversely, 33 percent of import buyers report the same with regard to domestic large pickups. Domestic-branded truck buyers also report avoiding large pickup trucks from import brands primarily because they did not like the look or design (33%), and also believed the pickup was not rugged enough (20%). However, very few buyers of domestic large pickup trucks question the reliability of the two import brands, with only 5 percent avoiding models for this reason. Conversely, reliability is one of the top reasons import large pickup buyers avoid a domestic brand, with 25 percent avoiding domestic models based on reliability concerns.
The perception of poor reliability as a reason for avoidance can also have a long-term impact on a brand or model. For example, buyers may avoid a brand or model today due to reliability issues that occurred several years ago. "With the fully redesigned Toyota Tundra, Chevrolet Silverado and GMC Sierra being launched for the 2007 model year, the large pickup truck segment is steadily being refreshed and diversified," said Steve Witten, executive director of marketing research at J.D. Power and Associates. "Making updates and improvements to vehicles can be critical in addressing buyer concerns, especially among buyers who shy away from models because of styling or reliability based on brand origin perceptions. These enhancements can go a long way toward improving buyer confidence and changing opinions." The study also finds that across all vehicle segments, styling continues to be the top reason buyers avoid considering some models, with nearly 50 percent of all avoiders indicating that the look/design of the model was a reason for avoidance. Styling typically determines the buyer's first impression of a model, and if a buyer dislikes the styling, they generally will not pursue that model any further. Vehicle styling, reliability and high cost, respectively, represent the top three product reasons for avoidance.
The 2006 Avoider Study is based on responses from more than 39,000 owners who registered a new vehicle in May 2006.About J.D. Power and AssociatesHeadquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.About The McGraw-Hill CompaniesFounded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands including Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2005 were $6.0 billion.
Additional information is available at www.mcgraw-hill.com.
Media Relations Contacts:John TewsDirector, Media RelationsJ.D. Power and Associates5435 Corporate Drive, Suite 300Troy, MI, 48098(248) 312-4119, or cell (248) 321-5109john.tews@jdpa.com
Syvetril Perryman Media RelationsJ.D. Power and Associates2625 Townsgate Road, Suite 100Westlake Village, CA 91361(805) 418-8103syvetril.perryman@jdpa.com
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Reader Comments (Page 1 of 2)
Jellodyne 2:48PM (12/04/2006)
I was a-gunna buy me a diffrunt brand a pick-em-up-truck until I seen Calvin peein' on it. That there's funny.
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Joe 2:54PM (12/04/2006)
J.D. Power also finds that the sky is blue.
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Joshvar 3:28PM (12/04/2006)
"Full-size truck drivers are a very dedicated and brand-loyal bunch. They're savvy consumers whose opinions are often overlooked by know-it-all marketers."
Being a dedicated and brand-loyal customer is the polar opposite of a savvy consumer. It's easy to overlook their opinions because they make little-to-no logical sense, making marketing to them highly ineffective.
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Car videos & Motorcycle videos 3:46PM (12/04/2006)
I think the reason Toyota keeps on doing well every year is because it is not overpaying its CEO's and other top level employees unlike other car companies. The money they save goes into building a stronger and more efficient company.
DPC cars
http://www.dpccars.com
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Tool 4:00PM (12/04/2006)
Waiting for Michael Karesh to weigh-in and promote his website.
Tick-tock. Tick-tock.
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Drewboy 4:14PM (12/04/2006)
I learned how to drive in a 1990 GMC truck. The truck stayed in the family for 14 years until my folks sold it. We never had any reliability problems with the vehicle, and if I were to need a truck I'd definately give GMC a look!
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Lithous 4:42PM (12/04/2006)
"Their loyalty to American brands trumps their loyalty to the enviornment."
Yeah, that hybrid pickup from Toyota and their non-hybrids are so much more fuel efficient than the American competition. Oh, wait, there is no Toyota pickup hybrid. And wait, yet again. Toyota 4x4 pickups get less MPG (less efficient) than every Silverado 4x4 pickup. And the 4x2 pickups get about the same or worse than the Silverado.
"I think the reason Toyota keeps on doing well every year is because it is not overpaying its CEO's and other top level employees unlike other car companies."
Or maybe with the exchange rate from which Toyota earns billions of dollars could pay the top execs salaries from GM easily. So I doubt that is the problem.
And BTW, it is great that the owner loyality of the Japanese is not as much as the domestics but we still need to have a pic of the Japanese trucks under the headline about strong owner loyalty. With all the money Toyota makes they probably didn't have to pay for that free advertisement. Or maybe the pick was there because Toyota has ads on autoblog. I guess we'll never know why one would be so moved to have a pic of the loser as the headliner.
I wonder if a brand loyalty survey of mid-size cars was done if the pic under the headline would be an Aura (even though it isn't the best seller)? The answer is never. There was no mention of Toyota's loyalty in the article following links from here to automotivedigest.com to jdpower.com so it doesn't seem to make sense why Toyotas are in the pic. I guess when you make billions and you have lots of money to advertise then everyone (including autoblog) wants a piece. Or someone really wants to Toyota to win in the end so much so that they help out free of charge.
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Ryan 4:56PM (12/04/2006)
"And BTW, it is great that the owner loyality of the Japanese is not as much as the domestics but we still need to have a pic of the Japanese trucks under the headline about strong owner loyalty."
-I think that your being a little emotional about that, I mean it's a photo!!!
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bernie 5:05PM (12/04/2006)
Hey, that stuff is obvious. The REAL question everyone wants to know about pickup drivers are these:
Why do you ALWAYS back into parking spaces, even when it takes three tries?
Why do you swing wide to turn, as if you're always pulling a trailer?
Why is it that when the trash you pitch into your bed flies out all over town, you don't think it's littering?
Why do you take a perfectly good vehicle and stick glasspacks on it so it annoys everyone within 100 yards?
I guess the answer to all could be, "because all pickup drivers are REDNECKS." But that's too easy. I want to hear it straight from the Bubba's mouth.
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DiedFamous 5:51PM (12/04/2006)
Its funny how people still label Toyotas as "imports" when American Toyotas haven't been imported in years, hell, some Toyota cars have more american-made parts in them than many American cars do. With Toyota constantly opening new assembly lines while Ford and GM manage to do nothing but close them, this trend will surely do nothing more than continue. Its a real shame that people still percieve Toyota as a Japanese car-company while day in and day out they create more and more jobs for Americans. Maby once Toyota gets into NASCAR this perception will change...
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Lithous 6:06PM (12/04/2006)
"Its funny how people still label Toyotas as "imports" when American Toyotas haven't been imported in years,"
As of 2006 there are Camrys that still come from Japan. Maybe you did or didn't know that.
"hell, some Toyota cars have more american-made parts in them than many American cars do."
And *some* American cars have more american-made parts than many Toyotas.
"With Toyota constantly opening new assembly lines while Ford and GM manage to do nothing but close them,"
So then one would have to guess (incorrectly) with all this Toyota American love and GM and Ford American unlove that Toyota must have more U.S. employees than both companies, right? Come on, Toyota has maybe 30K U.S. employees and GM and Ford have had to pay out to at least that many at one time many times. So Toyota has to have a ton more U.S. employees, right? Go look it up and tell us the number of U.S. GM employees and U.S. Toyota employees.
"Its a real shame that people still percieve Toyota as a Japanese car-company while day in and day out they create more and more jobs for Americans."
How can they "create" jobs when GM has let go hundreds of thousands of U.S. employees and Toyota has maybe 30 thousand U.S. employees? Creation would be if on top of all the jobs GM and Ford have that Toyota added more. For every action there is an equal and opposite reaction except the reaction is to have 1/20th the jobs by Japanese car companies as was here before they came.
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FatherTime 6:23PM (12/04/2006)
......and all of Toyota's money goes home to the Japanese banks. I will continue to buy "A Real American Product", the rest of you may decide to sell your country to Japan if you want, but not me, it is a personal decision.
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Camry Driver 6:34PM (12/04/2006)
bernie, why don't you go say that to the guys who built your house?
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Michael Karesh 7:05PM (12/04/2006)
If 48% won't buy an import, that means 52% will. Doesn't sound like much loyalty to me.
The latest Automotive News looked at brand loyalty among full size truck owners, and didn't find much. Fully 58% of Dodge Ram owners buy something other than a Dodge the next time around. GM did best, but even then 45% of Chevrolet owners bought something other than a Chevrolet.
All of this talk of brand loyalty could turn out to be a lot of wishful thinking. We'll know within a couple of years.
Sorry to disappoint you, Tool, but my site isn't relevant here. Still do appreciate the time you inadvertently steered over 2,000 people my way, though.
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doh 8:53PM (12/04/2006)
Their loyalty to American brands trumps their loyalty to the enviornment. I like how Jamie Kitman described the styling of American pickups, "in your face, masters of the universe".
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Jaimie B 9:31PM (12/04/2006)
#17: "If 48% won't buy an import, that means 52% will. Doesn't sound like much loyalty to me."
Exactly. If Toyota can only capture a small percentage of those who are willing to buy an import, can you imagine how much revenue that generate for Toyota? Toyota knows they have to start with small gains, and the rest will follow suit.
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Bob 10:55PM (12/04/2006)
FatherTime, grow up.
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Bubba 10:55PM (12/04/2006)
"Full-size truck drivers are a very dedicated and brand-loyal bunch. They're savvy consumers whose opinions are often overlooked by know-it-all marketers."
D@mn right we're savvy consumers, I drive a '01 f350 dulley 9500 lb empty(most the time loaded 11500lb) 226,000 miles put through hell every day. Im for sure not buying a Tundra, never ever.
"Its funny how people still label Toyotas as "imports" when American Toyotas haven't been imported in years,"
Its still a Japanese company
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lalaland 11:16PM (12/04/2006)
Counterpoint article in today's Automotive News shows more than half of domestic full-size pickup buyers leave their current brand at trade-in time. So much for loyalty. Don't believe that means real numbers? The full-size pickup segment is 2 million sales annually. If half of those buyers are leaving their current brand, that's 1 million undecided shoppers every year up for grabs. Irony: Source of article's numbers is also JD Power. You think someone at Power got an angry call this morning from a Big 2.5 executive and was forced into issuing a make-good press release?
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roadside observer 8:36AM (12/05/2006)
Memo for those of you who say Japanese trucks aren't imported:
Toyota builds Tacomas in Mexico for the US market.
- 10. Its funny how people still label Toyotas as "imports" when American Toyotas haven't been imported in years -
DiedFamous, may I also point out that the Yaris, the Matrix, the Corolla, the Prius, and all Lexus-branded vehicles(in addition to the aformentioned Tacoma) are built outside US borders?
Oh, and one more thing - Toyota has been racing in NASCAR for years - first in 2000 with the Goody's Dash series, then in the truck series. They've enjoyed so much success that people still think Toyota isn't in NASCAR ...
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