A US study of new car buyers shows Generation Xers (20- to 30-year-olds) are showing less brand loyalty as their Internet usage increases. They also use the Net to facilitate most of their purchasing decisions.
The 20- to 35-year-olds around the world will be increasingly wooed in brand advertising by car-makers after a study of Generation X new car buyers in the US shows that they display below-average brand loyalty when returning to make a purchase.
They are also heavy Internet users who evaluate new car choices increasingly online before making purchasing decisions.
The research released by The Polk Company found that make loyalty displayed by Generation Xers - who comprise 25 million consumers between the ages of 20 and 35 in the US alone - was more than 5% lower than the industry average.
In addition, manufacturer loyalty displayed by Generation X new vehicle buyers was more than 7% lower than the industry average.
According to the Polk data, Generation X make-loyalty is nearly 4% lower than Baby Boomers and 8% lower than the mature market.
There are similar results for manufacturer loyalty, where there is a 5% difference between Generation Xers and Baby Boomers and a 13% difference between Generation Xers and the mature market.
"Generation X new vehicle buyers thrive in environments where they have choices,`` says Karen Piurkowski, Polk`s director of loyalty. "So when it comes to a market return, they`re less loyal to brand names.``
Piurkowski adds that Generation Xers are more information hungry than the other population segments, as evidenced by the higher level of importance they place on consumer magazines and automotive awards when purchasing new vehicles.
"Gen Xers are also more likely to use the Internet while shopping for their new vehicles. Specifically, they are more likely to obtain financing information, vehicle pricing and incentive and rebate offerings when shopping on the Web.``
The Polk study identified car makes that are more popular with Generation X than others. The data indicates that Asian makes have the highest proportion of young buyers. Isuzu and Mitsubishi are the top two. Korea`s KIA is number four. European makes follow, with Land Rover and Volkswagen capturing the third and fifth positions, respectively.
"Although import makes are currently the most popular with Generation X, with their lower levels of brand loyalty any vehicle make could be of interest for future purchases within this generation,`` Piurkowski maintains. "And since Generation X is the market of the future, low brand loyalty could prove to be a major concern to automotive manufacturers.``
Polk`s Manufacturer Loyalty Excelerator (MLEX), the basis for these findings, was created to provide household loyalty information to manufacturers at various levels. MLEX determines loyalty percentages for the entire automotive industry, provides cross-industry comparisons of loyalty behaviour, and examines loyalty at various levels, eg 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 is a global company supplying intelligence to the motor industry.
Source: Cartoday.com
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