Welcome to Marketing 101. Today: Brand loyalty.
Polk finally gives an answer to a question that had given mankind sleepless nights, for als long as since the invention of the wheel: Why do customers stay loyal to their car brand? Really: Why in God’s name? Truth be told, Polk only asked why owners of luxury vehicles return to their dealer to buy again. Instead of, say, emigrating to North Korea. Or joining the witness protection program. The study produced shocking revelations. (Read More…)
Since many of you old-timers see us young folks as self-absorbed brats, I decided I wouldn’t spam TTAC with my “angry young man” rants too often – but today is a special case, with the results of a Deloitte study on Gen Y being released. As you’d guess, they are about as accurate as Toyota’s notion that consumers aged 18-30 would want to buy boxy subcompacts that they can customize.
I remember looking at the then brand new Ford Five Hundred and thinking to myself, “This would make one heck of a Volvo.”
Like the Volvos of yore this Ford offered a squarish conservative appearance. A high seating position which Volvo’s ‘safety oriented’ customers would have appreciated. Toss in a cavernous interior that had all the potential for a near-luxury family car, or even a wagon, and this car looked more ‘Volvo’ than ‘Ford’ to me with each passing day.
Something had to be done…
The next Ford Fusion is set to debut at next week’s North American International Auto Show, and while details are still embargoed, the blokes at Auto Express have given us a preview of the next Mondeo. Which is essentially the next Fusion.
It wasn’t our intention to inundate you with Buick stories, but sometimes the improbable occurs. Buick has been slowly revealing their new Encore crossover via their Facebook page, and we’ve now been treated to 3 out of 4 photos – enough to discern what the vehicle really looks like (pretty close to what Ed’s photo revealed).
First it was Honda that had issues with TrueCar. Now, it is regulators in several states, along with dealer associations that claim that TrueCar’s business model is at odds with “long-standing state laws designed to protect the interests of car dealers and shoppers,” as Automotive News [sub] reports. Says AN:
“Regulators in Colorado, Wisconsin and Virginia have issued bulletins to dealers or sent letters to TrueCar concluding that legal problems exist with TrueCar’s business model of charging dealers for leads that turn into a sale. And dealer associations in three more states — California, Kansas and Ohio — say members who use TrueCar may be violating state law.”
This looks like an opening volley of an all-out war. (Read More…)
Once upon a time, the Dodge brand was brimming with pride. In the mid-to-late 1990s, Dodge had it all: affordable compacts, big front-drive cruisers, the hottest trucks on the market, and of course, the Viper. And when the times were good, all of those part melded into one brash, exciting, quintessentially American brand. From Neons and Intrepids, from Rams to Vipers, Dodge could do it all, as long as “it all” included a healthy dash of in-your-face attitude. But over the years, as Dodge’s shining moment faded into memory, the brand has managed to become both less viscerally appealing and less well-rounded. And when Fiat’s leadership stripped Dodge of the Ram “brand,” shucked its designs of their truckish cues, and repositioned Dodge as a more “youthful” and “refined” sporting brand, it seemed as if Dodge as we knew it was dying. Since hearing of Fiat’s plans to bring Alfa stateside, and with Dodge appearing to have lost out in brand alignment product battles, we’ve been wondering for some time now if Dodge isn’t headed out to pasture. Now there’s even more evidence that Dodge is being hollowed out en route to replacement with Alfa, as Automotive News [sub] reports
Absent from the redesigned SRT Viper will be the name Dodge… Viper has been linked to Dodge since the Dodge Viper RT/10 concept debuted in 1989. The first Dodge Viper SRT-10 went on sale in 1992, and over the years 28,056 Vipers were produced, according to Chrysler.
Not any more. Essentially, SRT becomes a brand with its own vehicle, in this case the SRT Viper.
That’s right, Dodge won’t have a Viper or a Ram (or, more prosaically, an Avenger or Caravan). Some might argue that, absent these components, the Dodge name doesn’t mean much of anything anymore. Certainly it doesn’t seem that Dodge can have a particularly bright future without any links to its last moment of glory.
(Read More…)
The rise of the internet has had myriad effects on everyday life, not the least of which has been its profound impact on consumer behavior. With ever more data being made available online, and with the rise of independent alternative media outlets like TTAC, car buyers in particular are fundamentally changing their relationship to the car buying process. Dealers have been noting for some time that the internet has created better-informed buyers who, armed with more information, are demanding the car they want at the best possible price, wreaking havoc on traditional car dealer tactics like upselling and opaque pricing policies.
But as the eternal dance between supply and demand shifts in favor of consumers, some dealers and OEMs are having a tough time adjusting to the new reality. At the same time, the need to make money off of online consumer education has created some tension for the new breed of consumer-oriented websites. This conflict has now broken out into the open, as the auto transaction data firm TrueCar has found itself locked in a battle with American Honda over the downward pricing pressure created by more widely accessible transaction data. And the outcome of this conflict could have profound impacts on the ever-changing face of the new car market.
My war on Christmas gift-themed car ads has scored something of a victory, as AdAge reports that “creative spots for new luxury model automobiles that hyped the holiday have failed to perform effectively in the fourth quarter of 2011 so far,” according to surveys by Ace Metrix. And the accompanying quotes by the ad evaluation firm’s CEO Peter Daboll really sum up a lot of the problems with these 30-second cliches:
It’s astounding that four of the ‘top 10’ luxury automobile ads were below norm… many automotive brands have stepped away from good creative and fallen back on “Buy it now, you idiot” messaging wrapped up in sales events and bows. When we started looking at cars with bows and yet another Toytathon, it was enough, already. To suggest that someone buy a Lexus for his spouse in these economic times…”
You’ve got to love that sinister ellipsis, especially when certain luxury brands are suggesting not only that you buy your spouse a car, but that you buy them a cell phone as well, with which to alert them that you’ve bought them a new car…
We’ve been a bit critical of Honda’s advertising recently, and though I’m not a big fan of most of the latest David Puddy (OK, OK, Patrick Warburton) spots, I have to give it up for this one. I’ve wondered about the “cars with bows” ad meme for some time now, and though it was estimated that some 50,000+ vehicles were given as gifts last holiday season, I really can’t wait for the ad theme to die. We all love surprise gifts (especially expensive ones), but shouldn’t the person who will actually be driving the car have some say in what they get? I mean, I’d be grateful if someone bought me a new Lexus RX (a chief perpetrator of this ad meme) out of the blue… but mostly in the “it’s the thought that counts” way. Want to surprise someone with something expensive? Buy them jewelry or a watch. Want to buy someone a car? Make sure you really know exactly what car the giftee wants, and for goodness sake, make sure they drive it and the competition first. Surprises last a few seconds, the right car will delight for years to come.
Everyone knows TTAC hearts data, so this little NPR/Edmunds collaboration, which maps hybrid and EV sales by locality, is right up our HOV lane.
With today’s official confirmation that Fiat’s US market brand boss, Laura Soave, has been replaced by Timothy Kuniskis, there’s more than a little attention being paid to the Fiat 500’s stateside sales and marketing. Which is something of a curious state of affairs; after all, when the 500 was introduced to Europe, it was quite well-received by the press and public. In hopes of tracking down some kind of explanation for this discrepancy, I hit Youtube looking for ads introducing the Fiat 500 to European markets. The first spot I found can be seen above, and it encapsulates how I feel the 500 probably should have been introduced to the US: with one simple, smart, timeless ad. Instead we got a flurry of disjointed, uncoordinated efforts, with Jennifer Lopez eventually dominating the Cinquecento‘s image almost by default. Could this explain why the 500’s US sales have disappointed?
(Read More…)
After an early downturn in sales, it appeared that Fiat might be distancing its 500 from the Jennifer Lopez-dominated image that hasn’t been panning out so well. With the debut of the 500 Abarth at the LA Auto Show, the ad shown above kept the sex-factor high, but focused far more on the male market. Perhaps sensing a shift in direction, Bloomberg asked Fiat/Chrysler CEO Sergio Marchionne last week if the brand’s boss Laura Soave would be keeping her job despite the weak sales. Still undecided, Marchionne replied in the affirmative
For the time being.
That was last Wednesday. Over the weekend, something seems to have changed…
(Read More…)
I was not the only person to predict that the Fit 500 would enjoy strong initial sales and then flop as the novelty wore off… and I was half right! Sales climbed early, peaking at around 3k units per month this summer before dropping precipitously in September and October. In August were still wondering if the 500 could become a classic, but as of November 1, Fiat 500 inventory stood at a staggering 184 days. Now, Automotive News [sub] quotes UAW officials as saying that
Chrysler Group has suspended production this month of the 1.4-liter FIRE engine that powers the Fiat 500 in North America because of slow U.S. sales of the subcompact
The New York Times has a story that’s fascinating in its own right: the number of people leasing a car on leasetrader.com without first test-driving the car has doubled since 2007. Troubling stuff for most auto enthusiasts among us, but probably not much of a surprise to readers on the retail side of the business. One auto broker explains the most common reasons for taking this leap of faith:
Generally these are people who know what they want, whether it’s because they’re very brand-loyal or they’ve fallen in love with the styling of a particular model. Same goes for buyers who are strictly interested in getting the best deal, and those with limited choices like a big family that needs a nine-passenger vehicle with 4-wheel drive.
But, as one “enthusiast” explains, some consumers are just so well informed, they don’t need to drive their car before they buy it. That’s what they subscribe to magazines for!
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