J.D. Power and Associates Unlocks Keys to Consumer Automotive Preferences
16 December 1997
J.D. Power and Associates 1997 Brazilian Competitive Dynamics Study(SM) Unlocks Keys to Consumer Automotive PreferencesSAO PAULO, Brazil, Dec. 16 -- Approximately 64 percent of Brazilian automotive buyers prefer domestic vehicles (Fiat, Ford, General Motors and Volkswagen) while less than 14 percent of buyers prefer import vehicles, according to the first consumer preference study launched in Brazil by J.D. Power and Associates. According to Julie Trausch, head of South American operations for J.D. Power and Associates, the 1997 Brazilian Competitive Dynamics Study (CDS) provides the Brazilian automotive industry with a comprehensive picture of how consumers react at each crucial stage of the vehicle-buying cycle, from brand awareness to the final purchase. "The significant changes taking place in the Brazilian vehicle marketplace illustrate how crucial it is for manufacturers to understand what drives the consumer decision-making process when buying a new car or light truck," Trausch said. She added that the recent Brazilian financial market volatility and fiscal package have made an immediate impact upon vehicle sales levels that will continue into 1998. Figures obtained from the 1997 CDS indicate that of Brazilian vehicle buyers: * 46 percent strongly prefer domestic vehicles, * 18 percent somewhat prefer domestic vehicles, * 6 percent somewhat prefer import vehicles, * 8 percent strongly prefer import vehicles, and * The remaining 22 percent have no preference. Under current market conditions, J.D. Power and Associates projects that light vehicle sales will fall to 1.6 million units in 1997, down slightly from the company's previous forecast of 1.7 million units. Trausch noted that the slowdown will affect domestic and import brands alike, but will be particularly difficult for import manufacturers launching new plants in the region during this time period. Challenges for the "newcomers" will occur not only from the industry slowdown, but also because new-vehicle buyers have different expectations of domestic importers. More specifically, the study found that consumers who prefer domestic vehicles cite ease of service as the most important consideration more than 80 percent of the time, followed by price and financing considerations, dealership and resale value and parts availability. Conversely, import buyers are more influenced by performance and fuel economy, styling, comfort and convenience and quality. "To gain market share, the newcomers must meet the needs of the domestic customer base through infrastructure development, while appealing to existing client needs -- particularly perceptions of quality," Trausch added. "Specifically, this means appealing to the growing price-consciousness of domestic buyers and supporting them with a positive dealership experience." The J.D. Power and Associates 1997 Brazilian Competitive Dynamics Study(SM) is based on 3,387 personal interviews with recent new-vehicle buyers, drawn from a geographically diverse cross-section of Brazil and covering all models with sales in excess of 5,000 vehicles per year plus selected additions. J.D. Power and Associates is an international firm best known for its marketing information services in key business sectors including market research, forecasting and customer satisfaction. The firm's quality and satisfaction measurements are based on actual customer responses from over a million consumers annually. With its headquarters in Agoura Hills, California, the firm also has U.S. offices in Torrance, California; Michigan; and Connecticut. Its international locations include Japan, Korea, England, Canada and Brazil. J.D. Power and Associates can be accessed through the World Wide Web at http://www.jdpower.com. Email: info@jdpower.com. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates survey results without the express prior written consent of J.D. Power and Associates. SOURCE J.D. Power and Associates