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        2008 Press Release
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        2007 Ethnic Report



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 Why are African Americans five times more likely to purchase a Chrysler 300 than other ethnic groups?

"It's in their vehicle DNA," says Strategic Vision.

San Diego – “Driver’s desires, needs and attribute priorities are called the customer’s vehicle DNA,” according to Alexander Edwards, Strategic Vision President of Automotive. “When you understand the emotional payoff delivered by each vehicle attribute measured against the customer’s vehicle DNA, you will know why an African American views the Chrysler 300 as a vehicle of choice while an Asian American chooses an Acura MDX or BMW 3-Series (accounting for price). This understanding can provide automotive manufacturers with the knowledge of how to create the right product and communicate the right messages that will sell more vehicles, build brand equity, increase customer advocacy and develop future loyalty and retention.”

Everyone wants a great deal on a quality vehicle that meets his or her needs and desires (e.g. affordable with great styling, performance and innovation). However, according to Dr. Darrel Edwards, CEO and Founder of Strategic Vision, “Attitudes, images and personal values ranging from desired security and trust to displaying one’s individuality and success are distinctive in that they differ in the strength or magnitude of their importance among ethnic groups. When the essences of these values are accurately addressed in product, communication and dealership, the best opportunity to capture shopping and purchasing interests and priorities becomes available.”

Differences that clearly stand out with African Americans are greater desires for success and the ability to show it. African Americans are much more likely to advocate vehicles that express their individuality and success to family and friends. Latinos have a greater concern for the impact on the environment while also exhibiting a greater desire to experience exhilarating driving and performance than others. Asian Americans have stronger demands for a balanced, complete vehicle performance and style that matches their lives.

“Understanding the hearts and minds of the ethnic buyer is relevant for the entire automotive industry as the likes and preferences of African Americans, Asian Americans and Latinos are more likely to shape opinions in the US,” reports Christopher Chaney, Director of Special Projects for Strategic Vision. “For example, the true or pure innovators (sometimes called early adopters) – those whose reactions usually best predict the success of new and innovative ideas and products – are more likely to be African Americans (11%) and Latinos (13%) while only 6.5% of Caucasians and Asians see themselves as true innovators. ”

So what is the essence of the images that the ethnic profiles of the African American, Hispanic and Asian communities are looking for? When examining Strategic Vision’s New Vehicle Experience Study (NVES™) some trends become clear. African Americans are attracted to vehicles that are Powerful and Classy (e.g. Chrysler 300). Hispanic buyers look for Aggressive and Powerful, but Confident and Protective, vehicles (e.g. Kia Sedona). Asian buyers, looking for the “complete” package, choose vehicles that are Pleasant yet Powerful, Easy Going yet Protective – all with modern design and technology (e.g. Acura MDX).

Top Characteristics of New Vehicle Purchased By...

African American Buyers
 
Top Characteristics:
Col% *
Index **
Cute
23%
266
Leader
18%
190
Aggressive
13%
158
Bold
16%
156
Honest
15%
150
Powerful
35%
145
Energetic
21%
140
Easy going
19%
138
Classy
36%
132

 

Hispanic Buyers
 
Top Characteristics:
Col% *
Index **
Aggressive
21%
250
Carefree
13%
167
Leader
15%
162
Powerful
37%
154
Bold
14%
137
Easy going
19%
134
Competitive
13%
134
Confident
29%
130
Protective
27%
121

 

Asian Buyers
 
Top Characteristics:
Col% *
Index **
Athletic
17%
272
Pleasant
35%
236
Easy going
31%
221
Helpful
19%
187
Cute
12%
138
Powerful
32%
133
Protective
27%
122
Aggressive
10%
120
Modern
33%
119

 

* Col % is what percent reported their vehicle having this characteristic (e.g. 23% of all African Americans reported they purchased a Cute vehicle).

** Index score is magnitude of ethnic representation (e.g. African Americans are almost 2x likely to purchase a vehicle with Leadership [Index 190] Imagery).

Characteristics in blue signify a strong attraction for vehicles within this ethnic group. 

How do the various manufacturers rate in meeting the desires of the ethnic communities? One rating used throughout the industry is Strategic Vision’s Total Quality Index (TQI). TQI captures the more complete experience buyers have with his or her vehicle including rational and emotional connection. TQI calculates the owners’ responses to product weighted by the overall emotional response that the experience creates and transforms the responses to a 1000 point scale for comparisons. Following is an array of TQI scores for luxury and non-luxury brands that were leaders for the various ethnic communities in 2007:

2007 Strongest Brands Among Minority New Vehicle Buyers*

African American Buyers
Brand
TQI
Luxury Brands/Model

Lexus

938

Mercedes-Benz

918

Infiniti

913
   

Infiniti FX

952
Mercedes R-Class Wagon
942
Chrysler 300C
941
   
 
Standard Brands/Models

Honda

895

Ford

889

Chevrolet

889
   
Chrysler PT Cruiser
929
VW Passat
912

Ford Fusion

906

 

Hispanic Buyers
Brand
TQI
Luxury Brands/Model

Mercedes-Benz

922

BMW

918

Acura

911
   

Mercedes E-Class

955
Infiniti G35 Sedan
940
BMW 3-Series Coupe
933
   
 
Standard Brands/Models

Scion

902

Pontiact

896

Saturn

895
   
Kia Sedona
924
Scion xB
920

Ford Expedition

920

 

Asian Buyers
Brand
TQI
Luxury Brands/Model

Mercedes-Benz

909

Audi

909

BMW

906
   

Mercedes GL-Class

931
BMW 3-Series Coupe
925
BMW X5
920
   
 
Standard Brands/Models

Hyundai

871

Honda

865

Ford

858
   
Mazda3 Hatchback
907
Hyundai Sonata
902

Honda Civic

896

 

*TQI scores listed were top for each group where adaquate sample was available for 2006-2007

Once personal priorities and vehicle\brand perceptions of the new vehicle customer are understood, it becomes clearer why those of differing ethnicities purchase the brands and models they do. For example: for African Americans the Chrysler 300 matches their desired imagery of being Powerful and Classy. The Chrysler 300 is also one of the highest TQI rated vehicles for African Americans and therefore, it should be no mystery as to why 2% of all vehicles sold to African Americans are Chrysler 300s. In short, if you understand customer values and provide a vehicle that delivers the right product and message, you will sell more vehicles.

Top Brands and Models Sold to Minority New Vehicle Buyers*

African American Buyers
Top Brands
Volume %*
Index**

Nissan

13%
201

Toyota

13%
83

Chevrolet

10%
89

Ford

8%
72

Honda

6%
58

Dodge

6%
109

Chrysler

5%
205

Mercedes-Benz

3%
173

Hyundai

3%
102

Kia

3%
189
 
Top Models

Nissan Altima

4%
221

Toyota Corolla

3%
127

Nissan Sentra

2%
315

Ford F-Series (F-150)

2%
84

Toyota Camry

2%
102

Chrysler 300

2%
504

Honda Accord Sedan

2%
69

Honda Civic

2%
62

Suzuki Forenza

1%
591

Chevrolet Silverado 1500

1%
67

Dodge Charger

1%
273

Dodge Ram 1500

1%
85

 

Hispanic Buyers
Top Brands
Volume %*
Index**

Toyota

15%
95

Chevrolet

11%
97

Ford

11%
102

Nissan

11%
164

Honda

10%
94

Dodge

5%
91

Jeep

3%
110

Hyundai

3%
101

Volkswagen

3%
153

BMW

3%
121
 
Top Models

Ford F-Series (F-150)

4%
127

Toyota Corolla

3%
116

Chevrolet Silverado 1500

3%
128

Honda Civic

2%
99

Honda Accord Sedan

2%
93

Nissan Altima

2%
131

Toyota Tacoma

2%
146

Toyota Camry

2%
76

Dodge Ram 1500

2%
114

Chevrolet Tahoe

2%
167

Nissan Sentra

2%
195

Honda CR-V

1%
93

 

Asian Buyers
Top Brands
Volume %*
Index**

Toyota

27%
172

Honda

22%
200

Nissan

6%
96

BMW

5%
241

Mercedes-Benz

5%
265

Lexus

4%
189

Acura

4%
236

Ford

3%
29

Hyundai

2%
85

Mazda

2%
129
 
Top Models

Toyota Camry

6%
275

Honda Civic

6%
231

Toyota Corolla

6%
235

Honda Accord Sedan

5%
181

Honda Odyssey

3%
242

Honda CR-V

3%
217

Toyota Sienna

3%
443

Honda Pilot

2%
191

BMW 3-Series

2%
299

Nissan Altima

2%
105

Toyota RAV4

2%
150

Acura MDX

1%
307

 

* Volume % is market share of each ethnic group. (e.g. 13% of All African Americans purchase a Nissan Brand).

** Index score shows ethnic representation within brand (e.g. with an index of 201, Nissan has 2x as many African Americans as found in macro population).

Brands/models in blue signify a strong attraction to this ethnic group.

Brands/models in red signify a strong aversion to this ethnic group.

The purchase behaviors of new vehicle buyers are directly influenced by the ability of the manufacturer and dealer to satisfy their needs and desires. Those who understand the essence of cross-cultural and cultural distinction will be the ones to lead the automotive industry among the innovative and early adopters. Also, it is through understanding the desired and chosen imagery connected to personal values that correct messages increase sales, higher advocacy, better retention and greater customer loyalty.

Strategic Vision is part of StrategicVision Worldwide, a research-based consultancy with thirty-five years of experience in understanding the consumers’ and constituents’ decision-making systems for a variety of clients, including most automotive manufacturers, American Airlines, Procter & Gamble and Coca-Cola. Its unique expertise is in identifying individuals’, groups’ and societies’ comprehensive motivational hierarchies, including the descriptive attributes, personal consequences associated with experiences, the values and emotions that establish priorities and set motivation, and the personal images that reveal meaning. ValueCentered® psychology and methods were defined by Dr. Darrel Edwards in 1968.

For further information, contact Alexander Edwards, President Automotive; Christopher Chaney, Director of Special Projects; Susan Johnson, President of Strategic Vision; or Dr. Darrel Edwards, CEO at (858) 576-7141; or visit www.strategicvision.com.

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