Consumers Avoid Brands with Sketchy Futures
The results of J.D. Power and Associates 2009 Avoider Study are in, and it looks like Chrysler is the biggest loser. Unlike weight-loss reality shows, that’s not a good thing.
The study looks at the reasons consumers give for avoiding certain brands, and as in years past, the top reasons are styling, pricing and perceived reliability. However, this year’s GM and Chrysler bankruptcies have added a brand new category: brand future. This reason was given by 18% of avoiders, making it the fourth most cited reason.
The top five brands consumers avoided due to concern over “future viability” were, in order: Chrysler, Dodge, Hummer, Pontiac and Saturn.
The GM brands are all dead or being sold, but — unfortunately for Chrysler — the Chrysler and Dodge brands are its volume sellers. Predictably, Ford, Lincoln and Mercury brands did not scare away consumers.
Through its examination of 19 all-new models, the study also found that the greatest obstacles for new vehicles were styling and a lack of awareness among consumers. For instance, high levels of buzz helped the Chevy Camaro sell, but styling put off many potential buyers of the Ford Flex and Nissan Cube.
The Avoider study is based on responses from 45,000 new-vehicle owners in 2009.
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News like this may create a snowball effect and cause consumers another excuse not to buy such brand names such as Chrysler and Dodge. Of course consumers also read reviews on such brands and decide to buy more reliable models that offer the best bang for the buck. Either way Chrysler/Dodge will continue to suffer for years, if they ever recover. The coffin is slowly closing on most American brands.
Chrysler will eventually dissipate and GM will eventually work out the bugs. Ford has already found market. I believe it comes down to of course brand reliability and advertisement. Chrysler adds recently dont make sense to me , and GM seems to compare there cars to others a little to much. As if they dont really believe in there brands or have confidence. Ford seems to have confidence especially with the F-150 ,and the Taurus and Fusion look way much better then a Camry or Accord.