J.D. Power and Associates Reports: Gas Mileage Concerns Influence SUV Shoppers - aftermarketNews

J.D. Power and Associates Reports: Gas Mileage Concerns Influence SUV Shoppers

Concerns about gas mileage continue to influence new-vehicle shopping, particularly among consumers who consider purchasing SUVs, according to the 2004 J.D. Power and Associates Escaped Shopper Study. The study, which examines the reasons new-vehicle shoppers consider but reject a vehicle finds that approximately 15 percent of new-vehicle buyers reject a model due to its gas mileage.

WESTLAKE VILLAGE, Calif. — Concerns about gas mileage continue to influence new-vehicle shopping, particularly among consumers who consider purchasing SUVs, according to the 2004 J.D. Power and Associates Escaped Shopper Study.

The study, which examines the reasons new-vehicle shoppers consider but reject a vehicle finds that approximately 15 percent of new-vehicle buyers reject a model due to its gas mileage. The concern about gas mileage is particularly influential among those who seriously consider a full-size SUV model, with 22 percent rejecting a particular model due to gas mileage concerns. The study found that nearly 40 percent of those shoppers who reject a full-size SUV due to gas mileage ultimately purchase a midsize SUV instead, while nearly 20 percent purchase another model in the segment.

“As long as gas prices remain high, gas mileage will continue to be an important factor that buyers consider when shopping for a new vehicle,” said Scot Eisenfelder, vice president of the retail automotive practice at J.D. Power and Associates. “However, SUVs are still a popular choice among buyers. While SUV shoppers keep gas mileage in mind, a large proportion of them still buy another SUV, albeit a smaller one, when the one they first considered didn’t meet their standards for fuel efficiency.”

There is evidence that the extended incentive wars are shaping customer expectations, as an increasing number of shoppers reject models because they do not have sufficient rebates. Approximately 18 percent of shoppers reject a model due to insufficient rebates — up 2 percent over 2003. Domestic models are rejected more frequently than import models based on insufficient rebates (20 percent vs. 17 percent, respectively), despite higher average rebates offered by domestic brands.

“While shoppers are always keen on a good deal, manufacturers with the most attractive incentive offers are often still rejected based on a perception of inadequate rebate or finance incentives,” said Eisenfelder. “Many shoppers who reject one brand because it lacks incentives end up buying another brand that traditionally doesn’t offer substantial rebates. This is a good example of how product attributes, which are typically highly important to shoppers, can outweigh financial incentives.”

The average number of vehicles seriously considered per shopper declined slightly in 2004, in part driven by an increase in the proportion of “passionate buyers” — those who say they fell in love with the model and didn’t seriously consider another vehicle — from 21 percent in 2003 to nearly 25 percent of buyers in 2004. A major driver of the increase in “passionate buyers” can be attributed to a record number of model launches, with 28 new model introductions included in the 2004 study.

“With an increase in new-model launches over the next few years, it will become increasingly difficult for older models to gain a place on the shopping list,” said Eisenfelder.

The 2004 Escaped Shopper Study is based on responses from 28,719 new-vehicle owners.

_______________________________________

Click here to view the rest of today’s headlines.

You May Also Like

Continental Announces New ADAS Solutions

These solutions will be based on the “CV3” artificial intelligence system-on-chip family from Ambarella.

Continental announced it will offer Advanced Driver Assistance Systems (ADAS) solutions in the future based on the “CV3” artificial intelligence (AI) system-on-chip (SoC) family from semiconductor company Ambarella. The high-performance, power-efficient and scalable SoC portfolio, which is built for ADAS applications, complements Continental’s solutions for assisted driving and further advances vehicle automation, the company says.

Continental’s Brake System Technology Garners 1st Major Order

The start of series production with a North American car manufacturer is planned for 2025.

Canoo Announces New EV Battery Module Mfg. Facility

Located in Pryor, Oklahoma, the new facility will be capable of approximately 3,200 MWhs of battery module manufacturing capacity.

Honda, LG Energy Solution Invest in EV Battery Plant

The two companies will commit to investing $3.5 billion and creating 2,200 jobs in Fayette County, Ohio.

Global Shop Solutions Marks 5-Year Milestone

The adoption of Cloud ERP greatly surpassed the five-year forecast, says the company.

Other Posts

DENSO Sponsors EcoCAR EV Challenge

DENSO is providing monetary and in-kind donations, including vehicle electrification components, mentorship and technical guidance.

Counterview: Talking Telematics

Data, data everywhere …

EDI: What’s Old is New and Better

Why do I need it for my automotive business?

Torqata to Host ‘Reinvent the Wheel’ Hackathon

The sharpest data science and engineering minds will be organized into 20 teams and challenged to drive sustainability by optimizing pick-up logistics for recycled tire feedstock.