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Loyalty Keeps Vehicle Buyers Out of Market Amidst Shortages
Perennial brand loyalty leaders including Toyota, Honda and Lexus have each been able to grow their respective shares of loyal customers amid stagnation experienced by other brands, according to the J.D. Power 2024 U.S. Automotive Brand Loyalty StudySM.
“Amid ongoing inventory shortages, the most loyal customers actually stayed out of the market if they were unable to get their desired vehicle,” said Tyson Jominy, vice president of data & analytics at J.D. Power. “Now that inventory levels are recovering, customers are coming back. In particular, Toyota and Honda are benefiting from increased availability of hybrid vehicles, with Honda owners swapping out their gas-powered vehicles for hybrids at nearly triple the rate of the industry average. Lexus is also benefitting from strengthened residual values, which are helping drive loyalty for the brand despite premium brands as a whole experiencing a plateau this year.” Continue reading
Posted in auto news, awards, customer satisfaction, marketing, news analysis, shows and events
Tagged auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, honda, J.D. Power 2024 U.S. Automotive Brand Loyalty Study, Ken Zino, lexus, Power Information Network, toyota, Tyson Jominy, X @KenAutoinformed
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Trump Tariffs – Auto Brand Loyalty Matters But…
Tariffs have introduced greater volatility into new-vehicle shopping behavior. However, brands with strong reputations, such as Toyota and Honda, continue to retain loyal customers. This is according to the considered view expressed in the J.D. Power 2025 U.S. Automotive Brand Loyalty StudySM released today.
“Brand loyalty matters to vehicle buyers because it’s often associated with higher residual values, making vehicles from trusted brands a more financially sound choice over time,” said Tyson Jominy, senior vice president of data & analytics at J.D. Power. “However, buyer loyalty tends to weaken when shifting to a different vehicle segment. Not only that, but changing market conditions, such as increased availability of models, varying age of products and more aggressive incentive offers, have also brought brand loyalty back below 50% after finishing at 51% last year. Brand loyalty averages 49% across all nameplates and segments in this year’s study.” Continue reading →