METHODOLOGY
NEW LUXURY VEHICLE
A total of 1,485 “Loyalists” and “Defectors” among six luxury brands were interviewed (Acura, Audi, BMW, Cadillac, Lexus, and MercedesBenz) via telephone survey from September 2011 through November 2011. Loyalty data for the study was derived from Polk household
loyalty data, which leverages registration information from June 2010 to May 2011.
LUXURY LOYALIST:
A luxury new vehicle buyer/household that purchases a
replacement vehicle or an additional vehicle from the
same luxury brand that they already own.
LOYALTY STUDY
LUXURY DEFECTOR:
A luxury new vehicle buyer/household that purchases a
replacement vehicle or an additional vehicle from a luxury
brand different from the one they already own.
Back Panel
Front/Cover Panel
© 2012 AutoTrader.com, Inc., All Rights Reserved. “AutoTrader,” “AutoTrader Classics,” “AutoTraderClassics.com,” and the AutoTrader Classics logo are trademarks or registered trademarks of TPI Holdings, Inc., all used under exclusive license.
50985_Polk Luxury_Bro.indd 1
1/30/12 12:27 PM
TOP REASONS FOR LOYALTY BY BRAND
ABOUT THE STUDY
It is widely accepted that luxury brands enjoy the highest rates of customer loyalty in the automotive industry. But what motivates
high loyalty among this segment, and what causes luxury buyers to defect to other luxury brands? These are the key questions about
luxury car buying behavior that the 2012 New Luxury Vehicle Loyalty Study seeks to answer. Specifically:
t8IBUQFSDFOUBHFPGMVYVSZCVZFSTJTMPZBMUPFBDICSBOE t8IZEPMPZBMJTUTTUBZXJUIFBDICSBOE
t8IZEPEFGFDUPSTMFBWFPOFMVYVSZCSBOEGPSBOPUIFS t8IBUBSFUIFQFSDFQUJPOTBNPOHMVYVSZOFXWFIJDMF
buyers toward six core luxury brands:
% BUYERS LOYAL TO BRAND*
54%
Mercedes-Benz
51%
BMW
46%
45%
Lexus
Panel 1-left
Cadillac
42%
41%
Audi
Acura
Different brands appeal to loyalists for different reasons. Understanding what loyalists value most about their brand of choice is important
for retaining existing customers and attracting new ones. Among the “top five” overall reasons that car buyers stay loyal to a luxury brand,
the charts below demonstrate how each brand compares to one another as well as to the combined total of all loyalists who participated in
the study.
For example, 44% of all survey respondents stated they are loyal to their brand because they have an affinity for the brand. While brand
affinity ranks high among all the makes, it ranks significantly higher among one brand’s customers versus the other brands in the study.
Furthermore, this is a pattern that emerges for each of the “Overall Top Five Reasons Car Buyers Stay Loyal.” For each reason, a different
brand rises to the top of the category, revealing a compelling and unique strength that differentiates the brand.
44%
43%
47%
53%
40%
39%
33%
43%
42%
32%
ACURA
30%
34%
31%
24%
BMW
TOTAL
CADILLAC LEXUS MERCEDES-BENZ
ACURA
AUDI
BMW
CADILLAC LEXUS MERCEDES-BENZ
TOTAL
31%
Of all the reasons cited for brand loyalty, significantly
more females stay loyal to a luxury brand because
they are loyal to a dealership. Vehicle safety also ranks
significantly higher among women versus men. On the
other hand, significantly more males than females stay
loyal to a luxury brand due to value/special financing.
When loyalty is analyzed by age group, age 55+ have a
strong affinity for the brand and are more likely to stay loyal
as a result, whereas younger luxury vehicle owners are more
likely to remain loyal due to quality/reliability.
1
Brand Affinity*
2
Quality/Reliability
3
Driving Performance
4
Price/Finance/Value
5
Styling/Design
ACURA
Audi drivers note good fuel economy for
the brand as a significant strength.
BMW is perceived to have high-performance
vehicles and high innovation among owners.
Cadillac is perceived to have unique
technology by its drivers.
Lexus is perceived to have strong resale
value among owners.
Mercedes-Benz owners perceive the
brand as “prestigious.”
BMW
24%
CADILLAC LEXUS MERCEDES-BENZ
Panel2/Middle
3 - Right
Panel
AUDI
16%
17%
14%
13%
11%
10%
BMW
20%
19%
20%
7%
TOTAL
AUDI
Inside Spread
Acura owners consider the brand to be
a good value for the money.
25%
16%
OVERALL TOP FIVE REASONS
CAR BUYERS STAY LOYAL
ACURA
21%
STYLING/DESIGN
PRICE/FINANCE/VALUE
WHY DO LOYALISTS STAY WITH THEIR BRAND?
20%
22%
AUDI
The six makes that comprise the study are considered premium luxury brands and tend to have strong overall images. However, notable
strengths about each brand emerged during the study based on the perception of their drivers.
33%
21%
34%
TOTAL
DRIVING PERFORMANCE
QUALITY/RELIABILITY
BRAND AFFINITY
*2011
According to the study, brand affinity and quality/
reliability are the top reasons loyalists stay with their brand.
TOP BRAND PERCEPTIONS AMONG LOYALISTS
CADILLAC LEXUS MERCEDES-BENZ
TOTAL
ACURA
AUDI
BMW
11%
CADILLAC LEXUS MERCEDES-BENZ
WHY DO DEFECTORS LEAVE FOR ANOTHER LUXURY BRAND?
Price, body style, and brand affinity are the top three reasons defectors choose a different brand. There was very little difference among the
reasons for defection between men and women.
Price/Finance/Value
2
Body Style
4
Time to Change
5
Driving Performance
3
It is important for luxury manufacturers, agencies, and dealers to closely monitor the behaviors their owners exhibit in choosing
their next vehicle, but just understanding conquest and defection patterns is not enough. Understanding the brand-specific reasons why
owners stay or leave a brand can uncover opportunities to take advantage of and threats to mitigate. It is equally important to monitor
shopping behaviors before a purchase so that competitive sets can be identified and consideration patterns and trends can be acted
upon. For example, these insights may impact advertising messages around value, quality, price, performance, and service as well as
reveal conquest advertising needs.
Additionally, dealership loyalty ranked within the top seven reasons for all brands in the study, ultimately revealing that the dealership
can play a significant role in a customer’s loyalty to the brand. Therefore, dealers and manufacturers should consider working
closely together to scrutinize existing loyalty programs and/or explore opportunities to develop new ones as needed.
TOP FIVE REASONS SHOPPERS LEAVE
1
IMPLICATIONS
Brand Affinity
*Brand Affinity reasons include: “good past brand experience,” “always buy this brand,” “like the brand/better brand,” “trust the brand,” “customer service–brand,” “brand reputation,” “stand behind the brand.”
50985_Polk Luxury_Bro.indd 2
1/30/12 12:27 PM
TOP REASONS FOR LOYALTY BY BRAND
ABOUT THE STUDY
It is widely accepted that luxury brands enjoy the highest rates of customer loyalty in the automotive industry. But what motivates
high loyalty among this segment, and what causes luxury buyers to defect to other luxury brands? These are the key questions about
luxury car buying behavior that the 2012 New Luxury Vehicle Loyalty Study seeks to answer. Specifically:
t8IBUQFSDFOUBHFPGMVYVSZCVZFSTJTMPZBMUPFBDICSBOE t8IZEPMPZBMJTUTTUBZXJUIFBDICSBOE
t8IZEPEFGFDUPSTMFBWFPOFMVYVSZCSBOEGPSBOPUIFS t8IBUBSFUIFQFSDFQUJPOTBNPOHMVYVSZOFXWFIJDMF
buyers toward six core luxury brands:
% BUYERS LOYAL TO BRAND*
54%
Mercedes-Benz
51%
BMW
46%
45%
Lexus
Panel 1-left
Cadillac
42%
41%
Audi
Acura
Different brands appeal to loyalists for different reasons. Understanding what loyalists value most about their brand of choice is important
for retaining existing customers and attracting new ones. Among the “top five” overall reasons that car buyers stay loyal to a luxury brand,
the charts below demonstrate how each brand compares to one another as well as to the combined total of all loyalists who participated in
the study.
For example, 44% of all survey respondents stated they are loyal to their brand because they have an affinity for the brand. While brand
affinity ranks high among all the makes, it ranks significantly higher among one brand’s customers versus the other brands in the study.
Furthermore, this is a pattern that emerges for each of the “Overall Top Five Reasons Car Buyers Stay Loyal.” For each reason, a different
brand rises to the top of the category, revealing a compelling and unique strength that differentiates the brand.
44%
43%
47%
53%
40%
39%
33%
43%
42%
32%
ACURA
30%
34%
31%
24%
BMW
TOTAL
CADILLAC LEXUS MERCEDES-BENZ
ACURA
AUDI
BMW
CADILLAC LEXUS MERCEDES-BENZ
TOTAL
31%
Of all the reasons cited for brand loyalty, significantly
more females stay loyal to a luxury brand because
they are loyal to a dealership. Vehicle safety also ranks
significantly higher among women versus men. On the
other hand, significantly more males than females stay
loyal to a luxury brand due to value/special financing.
When loyalty is analyzed by age group, age 55+ have a
strong affinity for the brand and are more likely to stay loyal
as a result, whereas younger luxury vehicle owners are more
likely to remain loyal due to quality/reliability.
1
Brand Affinity*
2
Quality/Reliability
3
Driving Performance
4
Price/Finance/Value
5
Styling/Design
ACURA
Audi drivers note good fuel economy for
the brand as a significant strength.
BMW is perceived to have high-performance
vehicles and high innovation among owners.
Cadillac is perceived to have unique
technology by its drivers.
Lexus is perceived to have strong resale
value among owners.
Mercedes-Benz owners perceive the
brand as “prestigious.”
BMW
24%
CADILLAC LEXUS MERCEDES-BENZ
Panel2/Middle
3 - Right
Panel
AUDI
16%
17%
14%
13%
11%
10%
BMW
20%
19%
20%
7%
TOTAL
AUDI
Inside Spread
Acura owners consider the brand to be
a good value for the money.
25%
16%
OVERALL TOP FIVE REASONS
CAR BUYERS STAY LOYAL
ACURA
21%
STYLING/DESIGN
PRICE/FINANCE/VALUE
WHY DO LOYALISTS STAY WITH THEIR BRAND?
20%
22%
AUDI
The six makes that comprise the study are considered premium luxury brands and tend to have strong overall images. However, notable
strengths about each brand emerged during the study based on the perception of their drivers.
33%
21%
34%
TOTAL
DRIVING PERFORMANCE
QUALITY/RELIABILITY
BRAND AFFINITY
*2011
According to the study, brand affinity and quality/
reliability are the top reasons loyalists stay with their brand.
TOP BRAND PERCEPTIONS AMONG LOYALISTS
CADILLAC LEXUS MERCEDES-BENZ
TOTAL
ACURA
AUDI
BMW
11%
CADILLAC LEXUS MERCEDES-BENZ
WHY DO DEFECTORS LEAVE FOR ANOTHER LUXURY BRAND?
Price, body style, and brand affinity are the top three reasons defectors choose a different brand. There was very little difference among the
reasons for defection between men and women.
Price/Finance/Value
2
Body Style
4
Time to Change
5
Driving Performance
3
It is important for luxury manufacturers, agencies, and dealers to closely monitor the behaviors their owners exhibit in choosing
their next vehicle, but just understanding conquest and defection patterns is not enough. Understanding the brand-specific reasons why
owners stay or leave a brand can uncover opportunities to take advantage of and threats to mitigate. It is equally important to monitor
shopping behaviors before a purchase so that competitive sets can be identified and consideration patterns and trends can be acted
upon. For example, these insights may impact advertising messages around value, quality, price, performance, and service as well as
reveal conquest advertising needs.
Additionally, dealership loyalty ranked within the top seven reasons for all brands in the study, ultimately revealing that the dealership
can play a significant role in a customer’s loyalty to the brand. Therefore, dealers and manufacturers should consider working
closely together to scrutinize existing loyalty programs and/or explore opportunities to develop new ones as needed.
TOP FIVE REASONS SHOPPERS LEAVE
1
IMPLICATIONS
Brand Affinity
*Brand Affinity reasons include: “good past brand experience,” “always buy this brand,” “like the brand/better brand,” “trust the brand,” “customer service–brand,” “brand reputation,” “stand behind the brand.”
50985_Polk Luxury_Bro.indd 2
1/30/12 12:27 PM
TOP REASONS FOR LOYALTY BY BRAND
ABOUT THE STUDY
It is widely accepted that luxury brands enjoy the highest rates of customer loyalty in the automotive industry. But what motivates
high loyalty among this segment, and what causes luxury buyers to defect to other luxury brands? These are the key questions about
luxury car buying behavior that the 2012 New Luxury Vehicle Loyalty Study seeks to answer. Specifically:
t8IBUQFSDFOUBHFPGMVYVSZCVZFSTJTMPZBMUPFBDICSBOE t8IZEPMPZBMJTUTTUBZXJUIFBDICSBOE
t8IZEPEFGFDUPSTMFBWFPOFMVYVSZCSBOEGPSBOPUIFS t8IBUBSFUIFQFSDFQUJPOTBNPOHMVYVSZOFXWFIJDMF
buyers toward six core luxury brands:
% BUYERS LOYAL TO BRAND*
54%
Mercedes-Benz
51%
BMW
46%
45%
Lexus
Panel 1-left
Cadillac
42%
41%
Audi
Acura
Different brands appeal to loyalists for different reasons. Understanding what loyalists value most about their brand of choice is important
for retaining existing customers and attracting new ones. Among the “top five” overall reasons that car buyers stay loyal to a luxury brand,
the charts below demonstrate how each brand compares to one another as well as to the combined total of all loyalists who participated in
the study.
For example, 44% of all survey respondents stated they are loyal to their brand because they have an affinity for the brand. While brand
affinity ranks high among all the makes, it ranks significantly higher among one brand’s customers versus the other brands in the study.
Furthermore, this is a pattern that emerges for each of the “Overall Top Five Reasons Car Buyers Stay Loyal.” For each reason, a different
brand rises to the top of the category, revealing a compelling and unique strength that differentiates the brand.
44%
43%
47%
53%
40%
39%
33%
43%
42%
32%
ACURA
30%
34%
31%
24%
BMW
TOTAL
CADILLAC LEXUS MERCEDES-BENZ
ACURA
AUDI
BMW
CADILLAC LEXUS MERCEDES-BENZ
TOTAL
31%
Of all the reasons cited for brand loyalty, significantly
more females stay loyal to a luxury brand because
they are loyal to a dealership. Vehicle safety also ranks
significantly higher among women versus men. On the
other hand, significantly more males than females stay
loyal to a luxury brand due to value/special financing.
When loyalty is analyzed by age group, age 55+ have a
strong affinity for the brand and are more likely to stay loyal
as a result, whereas younger luxury vehicle owners are more
likely to remain loyal due to quality/reliability.
1
Brand Affinity*
2
Quality/Reliability
3
Driving Performance
4
Price/Finance/Value
5
Styling/Design
ACURA
Audi drivers note good fuel economy for
the brand as a significant strength.
BMW is perceived to have high-performance
vehicles and high innovation among owners.
Cadillac is perceived to have unique
technology by its drivers.
Lexus is perceived to have strong resale
value among owners.
Mercedes-Benz owners perceive the
brand as “prestigious.”
BMW
24%
CADILLAC LEXUS MERCEDES-BENZ
Panel2/Middle
3 - Right
Panel
AUDI
16%
17%
14%
13%
11%
10%
BMW
20%
19%
20%
7%
TOTAL
AUDI
Inside Spread
Acura owners consider the brand to be
a good value for the money.
25%
16%
OVERALL TOP FIVE REASONS
CAR BUYERS STAY LOYAL
ACURA
21%
STYLING/DESIGN
PRICE/FINANCE/VALUE
WHY DO LOYALISTS STAY WITH THEIR BRAND?
20%
22%
AUDI
The six makes that comprise the study are considered premium luxury brands and tend to have strong overall images. However, notable
strengths about each brand emerged during the study based on the perception of their drivers.
33%
21%
34%
TOTAL
DRIVING PERFORMANCE
QUALITY/RELIABILITY
BRAND AFFINITY
*2011
According to the study, brand affinity and quality/
reliability are the top reasons loyalists stay with their brand.
TOP BRAND PERCEPTIONS AMONG LOYALISTS
CADILLAC LEXUS MERCEDES-BENZ
TOTAL
ACURA
AUDI
BMW
11%
CADILLAC LEXUS MERCEDES-BENZ
WHY DO DEFECTORS LEAVE FOR ANOTHER LUXURY BRAND?
Price, body style, and brand affinity are the top three reasons defectors choose a different brand. There was very little difference among the
reasons for defection between men and women.
Price/Finance/Value
2
Body Style
4
Time to Change
5
Driving Performance
3
It is important for luxury manufacturers, agencies, and dealers to closely monitor the behaviors their owners exhibit in choosing
their next vehicle, but just understanding conquest and defection patterns is not enough. Understanding the brand-specific reasons why
owners stay or leave a brand can uncover opportunities to take advantage of and threats to mitigate. It is equally important to monitor
shopping behaviors before a purchase so that competitive sets can be identified and consideration patterns and trends can be acted
upon. For example, these insights may impact advertising messages around value, quality, price, performance, and service as well as
reveal conquest advertising needs.
Additionally, dealership loyalty ranked within the top seven reasons for all brands in the study, ultimately revealing that the dealership
can play a significant role in a customer’s loyalty to the brand. Therefore, dealers and manufacturers should consider working
closely together to scrutinize existing loyalty programs and/or explore opportunities to develop new ones as needed.
TOP FIVE REASONS SHOPPERS LEAVE
1
IMPLICATIONS
Brand Affinity
*Brand Affinity reasons include: “good past brand experience,” “always buy this brand,” “like the brand/better brand,” “trust the brand,” “customer service–brand,” “brand reputation,” “stand behind the brand.”
50985_Polk Luxury_Bro.indd 2
1/30/12 12:27 PM
METHODOLOGY
NEW LUXURY VEHICLE
A total of 1,485 “Loyalists” and “Defectors” among six luxury brands were interviewed (Acura, Audi, BMW, Cadillac, Lexus, and MercedesBenz) via telephone survey from September 2011 through November 2011. Loyalty data for the study was derived from Polk household
loyalty data, which leverages registration information from June 2010 to May 2011.
LUXURY LOYALIST:
A luxury new vehicle buyer/household that purchases a
replacement vehicle or an additional vehicle from the
same luxury brand that they already own.
LOYALTY STUDY
LUXURY DEFECTOR:
A luxury new vehicle buyer/household that purchases a
replacement vehicle or an additional vehicle from a luxury
brand different from the one they already own.
Back Panel
Front/Cover Panel
© 2012 AutoTrader.com, Inc., All Rights Reserved. “AutoTrader,” “AutoTrader Classics,” “AutoTraderClassics.com,” and the AutoTrader Classics logo are trademarks or registered trademarks of TPI Holdings, Inc., all used under exclusive license.
50985_Polk Luxury_Bro.indd 1
1/30/12 12:27 PM
METHODOLOGY
NEW LUXURY VEHICLE
A total of 1,485 “Loyalists” and “Defectors” among six luxury brands were interviewed (Acura, Audi, BMW, Cadillac, Lexus, and MercedesBenz) via telephone survey from September 2011 through November 2011. Loyalty data for the study was derived from Polk household
loyalty data, which leverages registration information from June 2010 to May 2011.
LUXURY LOYALIST:
A luxury new vehicle buyer/household that purchases a
replacement vehicle or an additional vehicle from the
same luxury brand that they already own.
LOYALTY STUDY
LUXURY DEFECTOR:
A luxury new vehicle buyer/household that purchases a
replacement vehicle or an additional vehicle from a luxury
brand different from the one they already own.
Back Panel
Front/Cover Panel
© 2012 AutoTrader.com, Inc., All Rights Reserved. “AutoTrader,” “AutoTrader Classics,” “AutoTraderClassics.com,” and the AutoTrader Classics logo are trademarks or registered trademarks of TPI Holdings, Inc., all used under exclusive license.
50985_Polk Luxury_Bro.indd 1
1/30/12 12:27 PM