Kia Amanti

 Economic Concerns and “Change” Produce New Car Buying Perceptions of Total Value

Here at LotPro.com, we can remember the time when car buying decisions were based on whether you were a Ford guy, a GM (specifically Chevy, Buick, Pontiac, etc.) guy or a Chrysler guy. But let’s face it; if you can remember that far back, you are officially an “old” guy.

In today’s auto sales climate, quality and the perception of that quality have become more important than ever. J.D. Power started it all in 1981 with the company released its first Customer Satisfaction survey (Power calls it an Index) and again in 1987 when it released the automotive Initial Quality Study. Since that time, a number of companies have thrown their hats into the ring and have come up with their own unique methods of measuring customer loyalty and their perceptions of vehicle quality.

For its part, San Diego-based Strategic Vision has come up with its own matrix in evaluation customer perceptions of vehicle quality and brand loyalty. What follows is the company’s latest press release:

New Mazda3

For immediate release – Monday, November 10, 2008

San Diego – Strategic Vision today announced its 2008 Total Value Index® (TVI). TVI Scores fell across all brands reflecting economic concerns. During times of economic difficulties, automotive customers will examine the Total Value of potential vehicle choices with greater discrimination.

This greater customer scrutiny of automotive products will lead to new opportunities across all brands for the future. Customers are looking to the products to find the cues of quality that denote long term value with the best pricing, even among luxury vehicles. “When economic conditions become more favorable, the manufacturers who have focused their efforts in enhancing product quality and communicating messages of trustworthy products and overall value will be in a position to regain and even take over new market share,” reports Alexander Edwards, Strategic Vision’s president of automotive.

The economy has affected more than just the consumer’s willingness to spend money. As customers are bombarded with gloomy financial news on almost all fronts: stock markets down and fluctuating wildly, homes in foreclosure, plants closing and corporations laying off personnel, every decision has to be weighed against the individual consumer’s personal standard for Security. A vehicle purchased today must withstand even more demanding scrutiny. As a result, TVI brand scores are down across the board with a one notable exception. Pontiac made a stunning 25 point advance in TVI scores by combining competitive pricing with perceived interior quality. The Pontiac G6 is a good example of how Pontiac has exceeded customer expectations with price, value and interior quality cues.

Toyota Motor Sales is still the company to beat in customer value, although the Toyota brand was part of the overall trend of falling TVI Scores. Toyota Motor Sales has had 30 leaders in TVI over the past four years. In 2008, they add an astounding ten more: seven for Toyota (Yaris hatchback, Prius, Solara Convertible, RAV4, 4Runner, Sequoia and Tundra) and three for the Lexus (IS250/350, LS and RX400 Hybrid). Toyota’s consistent foundational messages of quality and reliability delivered over many years have generated consumer trust in Toyota products. “This trust is a crucial first step to success in today’s market,” says Dr. Darrel Edwards, Founder and CEO of Strategic Vision.

Ironically, Toyota’s strong perceived reliability and durability expectations may slow Toyota’s sales during this economic slowdown. Customers may begin to evaluate if now is the right time to purchase a new vehicle and many Toyota and Lexus buyers may decide to “put off” the purchase of their next vehicle and wait for more favorable economic conditions.

 Chevrolet Corvette Convertible

General Motors did well in Total Value with four segment leaders. Chevrolet’s strong tradition of value in both the sports car fun of the Corvette and the hardworking practicality of the Tahoe and Sierra were recognized. American Honda (with the Accord, Coupe, Odyssey and Ridgeline – all 2007 leaders) and Volkswagen of America (with the A3, Q7 and Passat Wagon) each had three models leading in their segments. Mazda is also worthy of mention as customers felt that they have received the “zoom-zoom” for their money in the Mazda3 Sedan and CX-9.

Buyers rated the following vehicles top in Total Value (TVI) in their segments:

The calculation of TVI begins with explicit statements that owners make about value (e.g. expected reliability, expected fuel economy, price paid, expected resale value, etc.). TVI then incorporates the importance of the variables that make up the ownership experience, and it is here that Strategic Vision finds “True Value” — the worth of the attribute weighed against the costs.

For immediate release – Wednesday, May 28, 2008

San Diego – Toyota and Ford tied for leading in the most segments on Strategic Vision’s Total Quality Index™ (TQI), leading with three vehicles each. Toyota lead with its Yaris, 4Runner and Sequoia while Ford lead with the Edge, Mustang Convertible and F-250/350. The San Diego based research firm today announced the 2008 results that are based on the ratings by new vehicle owners in 19 product segments.

Toyota Motor Sales had two additional leaders with the Scion xB and the Lexus RX 350 (which tied with Land Rover’s LR2); while Ford Motor Company added two additional wins with the Mercury Sable and Volvo C30. “Ford is back, establishing its vehicle quality in the hearts and minds of its customers,” says Alexander Edwards, president of Strategic Vision’s automotive division. “The Ford Edge is one of the vehicles Ford can be proud of. By careful attention to key areas such as exterior styling, workmanship and performance, (which are the cues that signal quality for crossover customers), Ford is building vehicles that also build brand equity and perceived customer quality.”

The Total Quality Index™ is the premier measure of new vehicle owner satisfaction. It asks buyers to rate all aspects of the ownership experience, from buying and owning to performance and driving. It is much more than simply counting problems. “Innovation and thoughtfulness in functionality and design, keeping in mind how the customer will interact and use the vehicle, is essential,” reports Dr. Darrel Edwards, Founder and CEO of Strategic Vision. “Vehicles like the Volvo C30 and Toyota Sequoia are both terrific examples of providing customers with this ‘functional luxury’ in a very stylish design suggesting quality both on the inside and out.”

Mercedes, Honda and Chevrolet brands each had two leaders: Mercedes leading with the S-Class and SL, Honda with the Odyssey and Ridgeline, and Chevrolet with the Corvette Convertible and a tie with itself in full size trucks between the Avalanche and Silverado. From three leads last year, Hyundai took the lead in only one segment this year with its Santa Fe in one of the most competitive automotive segments, the Smaller SUVs. The Volkswagen Jetta, Chrysler 300C and BMW X5 were each TQI leaders. Also worthy of mention is the redesigned Chevrolet Malibu, now second in the highly competitive Medium Car segment. .

“Over the past quarter century in the US, customer perceptions of quality of domestic and Asian manufacturers underwent large swings. Today, it doesn’t matter if you are a Toyota or a Ford, BMW or Hyundai, each manufacturer has the opportunity and mandate to produce a product with the right Cues of Quality — those product attributes that signal quality and create customer Trust — and present vehicles that have a greater impact on the purchase decision,” says Alexander Edwards.

Buyers rated the following vehicles tops in their segments:

*2007 Total Quality Award™ winner

The Total Quality Index™ was calculated from the responses of 20,655 buyers who bought 2008 models in September, October and November of 2007. Strategic Vision has presented Total Quality annually since 1995.