HOMESTATS | PUBLICATIONS | REGISTER | ADVERTISE | ARCHIVE | ABOUT US | CONTACT US



 Search the Archives of Target Market News
____________________________________

GET THE LATEST NEWS SOONER !

 
Want the news on African-American marketing, media and research when it happens? Follow us on Facebook and Twitter and get ahead by staying ahead of the other industry sources.
____________________________________

ON SALE NOW!



The 17th Annual
Buying Power of
Black America

A dollar-by-dollar breakdown
of the Black Economy

Plus:
The Leading
Advertisers In
Black Media


Published by
Target Market News

Click here to order a print or digital copy today!

________________________________

STAY IN-THE-KNOW!
Are you getting the latest industry news when it happens via e-mail
?

 

Click here for free daily delivery of the Target Market News Bulletin
You'll receive news of breaking stories, exclusives, updates and headlines on the latest developments in African American marketing and media

 

Study: Data on Black, Hispanic and Asian car buyers point to auto market's future
 
(May 30, 2014) Strategic Vision, the research-based consultancy, has completed its annual review of the New Vehicle Experience Study. The study focuses on the differences of various ethnic groups to learn what brands lead with which ethnic customers, and what it is about those brands that lead to the increase in vehicle sales. The NVES ethnic review was based on over 525,000 respondents who
self-reported their ethnicity -- not having to rely on guessing ethnicity based on mathematical algorithms.

The answer to the question, "Why does race matter when it comes to buying a new vehicle?" isn't as simple as the question itself. This is because, in general, regardless of race, new vehicle buyers are more similar than they are different. For example, in NVES, automotive customers are asked how important the various aspects of their vehicle were in their purchase decision. Every ethnicity has "Reliability" rated "Extremely Important" more than any other attribute.

However, the magnitude of how important reliability is to the consumer changes, depending on the ethnicity of the buyer. For example, African Americans more often state that vehicle attributes that are connected to foundational security such as reliability, durability, quality of workmanship and manufacturer's reputation are all cited as "Extremely Important" more often than do Caucasians (i.e. manufacturer's reputation is reported as "Extremely Important" for African Americans 61% of the time while only 50% of the time for Caucasians.)

Therefore, to understand both the reasons directing these similarities and differences and relate these findings to new vehicle sales, SV examined different points along the customer's Purchase Path (stage of buying a vehicle).

As seen in Table 1 below, Honda, Toyota and BMW all are most likely to be "Definitely Considered" in a future vehicle choice. However, the magnitude of their consideration varies drastically by ethnicity. For example, for African Americans, BMW is the brand most often cited as a future vehicle choice as 37% of African Americans would Definitely Consider a BMW as a future purchase. This is significantly more than the US Industry average of 23%.

    
Table 1: Percent "Definitely Would" Consider the Brand in the Future 



For Asian Americans, Honda (50%) is stated to be the brand most often available for future consideration. Asian Americans are also more likely to put BMW in their consideration set than African Americans (41% vs. 37%). However, BMW is 4th on the list for Asian American future purchase because they have a stronger affinity to the various Asian Import brands.

It is interesting to see that the emerging markets are aspiring to consider and own luxury brands such as BMW, Mercedes, Audi and Lexus and have three luxury brands in their top five list while those in the macro community have these luxury brands replaced with Ford and Chevrolet. This is likely because of the images that the models of these brands represent to the various customer groups.

  
Table 2: Top Five Indexed Images of Vehicle Purchased 



Compared to other ethnicities, African Americans, Latino Americans and Asian Americans all report higher incidences of stating that they purchase vehicles that are "Cool" (as seen in Table 2 above). One reason why luxury brands are more often found in the future consideration sets of these three ethnic groups is because they are looking for (and buying) vehicles which provide imagery of being Classy, Sexy and Luxurious. African Americans are more drawn to younger, more energetic vehicles; Latino Americans are looking for modern and powerful perceptions resulting in elegant and sexy imagery, while Asian Americans are more prone to purchase family oriented, smart and helpful vehicles.

These images are directly connected to the reasons customers purchase one vehicle over another. As discussed previously, the reasons for purchase are very similar across the various ethnic groups, but knowing the magnitude of their differences can be helpful in creating products and drafting communications to each group.

For example, as seen from the data in Table 3 below where purchase reasons are compared and indexed against the US Industry average, African Americans state that they are more price sensitive; which may be why they have more demands on the vehicle being reliable and needing to be able to trust the manufacturer. Latino Americans state that they are more likely to purchase a vehicle that has the capability to transform to become "their" vehicle that meets both the image they want to convey to others and their physical needs such as being able to carry their family and friends and cargo. Asian Americans state that they more often look for the new innovations added to a vehicle, beginning with simple features such as navigation.

  
Table 3: Top Five Indexed Purchase Reasons 




All of this leads to the only metric that counts: which brands lead in sales to the different ethnic groups. For this metric to be fully understood and appreciated, the data needs to be viewed both in actual sales and in comparison to the industry average.

As seen in Table 4.1 below, we see that Nissan leads African American sales which is connected to both price sensitivity and African Americans looking for a younger, more energetic brand. Toyota is the number one brand that Latino Americans would purchase in the future, and therefore, it shouldn't surprise anyone that it also has the highest market share with Latino Americans. The same is similarly true for Toyota (and Honda) among Asian American new vehicle buyers.

                                
Table 4.1: Top Five Brands with Highest Market Share 
African Americans





Top market share is a clear indicator of which brands sell to the various ethnic customers. However, when the market share is compared to the increase of sales per brand over the US Industry totals, we can see where future increases in sales are likely to occur.


Go to Target Market News homepage


RECENT NEWS STORIES

Carol H. Williams agency officially names Marcus Taylor its Creative Director

Black TV Ratings for Week of Mar. 31 - Apr. 6 'Scandal' still captures twice as many black viewers as any other TV show

Bounce TV promotes Elverage Allen to EVP, adds executives, opens West Coast office

Bounce TV to premiere original family-oriented sitcom, 'One Love' tonight

CHWA agency announces promotion of Brian Welburn to Account Supervisor

Black Cable TV Ratings for Week March 24 - 30 'Real Housewives' posts second week at No.1; BET is week's top network

Jesse Jackson leads delegation of minority suppliers to Japan to meet automakers

Black TV Ratings for Week of March 24 - 30 'Scandal' takes on March Madness and wins battle for viewers on Thursday night

Carol H. Williams promotes Matthew Taylor to VP/Director of New Business

ESSENCE unveils refreshed design and features for its magazine and website

Movie industry report may under-rate impact of African-American ticket buyers

FCC ruling closing Joint Sales Agreement loophole includes public interest waiver

EBONY Magazine, W.K. Kellogg Foundation release survey on the Black family

BET Networks issues first branded app including on-demand access to shows

Terri Winston named associate publisher for fifth 'Who's Who in Black Chicago'

Former NBA All-Star Jamal Mashburn teaming up to launch an ad agency in Chicago

Black Women's Expo celebrates its 20th year with record consumer attendance

Jesse Jackson launches Digital Inclusion initiative to take on Silicon Valley

Black Cable TV Ratings for Week March 17 - 23 Bravo's 'Real Housewives' takes No.1 on cable chart; BET is week's network winner

Black TV Ratings for Week of March 17 - 23 For the third consecutive week 'Scandal' takes ABC to No.1 on the Top 25

NNPA Foundation honors Charles Tisdale and Paul Redd during Black Press Week

FAMU signs partnership agreement on creation of Black Television News Channel

Bounce TV announces expansion of sales staff, addition of west coast office

Click here for more recent news stories and our news archive


































































































































































































































 











 

TARGET MARKET NEWS
228 S. Wabash Ave.
Chicago, Il 60604
312-408-1881
Copyright (c) 2014 All rights reserved

info@targetmarketnews.com                                                                                                                                                                                                                          Supplier Services