Strategic Vision, Inc.

LGBT Automotive Buyers Reflect Future Success Of Vehicle Sales, Reports Strategic Vision

Mon, 22 Aug 2011

San Diego � The best predictors of the future success of a vehicle concept, feature or design are the opinions and priorities of early adopters, called Innovators by Strategic Vision. Innovators have both predicted and helped create the success of many products from the Walkman to the iPod, to the redesign of the boring, yet functional top-loading washing machine into a front-loading, stylish appliance.

In order to predict how a new product will perform, it is critical to know the opinions and thoughts of Innovators, as they typically set trends, rather than simply relying on the general population. Strategic Vision leads in understanding consumer evaluations of innovative products and how leading-edge Innovators set trends. They have discovered groups of the population that are often the first to purchase products that have a high likelihood of becoming a future trend. The LGBT (Lesbian, Gay, Bisexual, Transgender) community represents one group of Innovators: the type of consumer who supports the automotive community's needs when introducing a feature or product not typically seen on or associated with a new vehicle.

As noted in the table below, the new 2011 Nissan Juke has successfully captured a section of the LGBT population with exceptional delivery of technical innovations and exterior styling. In addition to providing insight on new products, Innovators � like the LGBT community � can also help further understanding of redesigned products. The newly designed 2011 Volkswagen Jetta Sedan, for example, has been embraced by the LGBT buyer at higher rates than the mass market, yet has also shown to be successful in the total industry, selling more vehicles since the new design release than ever before.

Top vehicles* purchased by LGBT

(i.e. 3.6% of the LGBT Buyers purchased a Honda Civic, which is a 21% increase from the non-LGBT segment)

�	Percent	Index to Industry
Honda Civic Sedan	3.6%	121
Toyota Prius	3.5%	162
Hyundai Sonata	3.0%	121
Volkswagen Jetta Sedan	2.8%	171
Hyundai Elantra	2.5%	156
Chevrolet Traverse	2.3%	235
Honda Fit	2.0%	235
Kia Forte Sedan	2.0%	388
BMW 3 Series Sedan	1.6%	162
Nissan Juke	1.4%	281
Mini Cooper	1.3%	288
Honda CR-Z	0.8%	380
Scion xB	0.6%	248
Lexus IS250/350 Convertible	0.4%	391

*(Based on an algorithm of both market share and comparative share increase over the population)

The LGBT community's interest in such products is due to an above industry average attraction to unique aspects associated with newly released products (Index: 130) and an aversion to products that look too much like all the other vehicles on the road (Index: 150). If a newly released product succeeds in capturing the attention of the LGBT buyer, then the manufacturers of that product know that they have succeeded in creating a vehicle that is both innovative and unique. Specific aspects that the LGBT buyer looks for in a new vehicle are exterior and interior styling (Index: 130), from the appearance of the tires, all the way to the placement of controls and instruments inside the vehicle; technical innovations such as interior accessories (Index: 137) and audio / video systems (Index: 148); and environmental friendliness (Index: 131). One LGBT Nissan Juke owner states, �The Nissan JUKE looks cool, feels very solid when your hands are on the wheel, and has great amount of pep. I respect their brand for its styling overall.�

The LGBT community has such an interest in newly released products that a 30% increase is seen above industry average of vehicles purchased on impulse after having seen one that caught their attention (Index: 130). In an industry where products are constantly being updated, changed and improved, the new and unique only remain so for a certain period of time until the next new and improved idea is released.

There is also an emotional factor to the process of purchasing and owning a new vehicle that Strategic Vision comprehensively measures and integrates with other aspects of the vehicle. Feelings that support one's self-esteem (e.g., a sense of success, excitement and prestige) are 20% higher for the LGBT community compared to the industry (Index: 124). BMW, Honda, Subaru and Nissan in particular have succeeded in creating vehicles that receive a 60% or greater rating on the emotional delivery associated with their vehicles within this segment.

Discovering consumer reactions to new concepts, features and products in the early stages of release can save time, labor and perhaps most importantly, money. The trick is in knowing where to look to find such answers quickly in order to make decisions on the future of that product. The LGBT consumer is one of the first to own and drive new, innovative vehicles with new features and unique concepts, and therefore is a group to follow after the release of such products.

If your product has caught the attention of the LGBT customer, it is likely the product has executed new features and unique styling that will also catch the attention of other leading innovators and eventually the total population of new vehicle buyers. Innovators are among those who trust a specific brand and who look for signs that the execution of new concepts and features have been done exceedingly well. The results for new releases such as the Nissan Juke as well as the newly redesigned Hyundai Sonata and Volkswagen Jetta (both having their best sales year ever) show an even greater increase in LGBT sales in proportion to the industry, reflecting how the LGBT consumer is sensitive to those product and emotional cues that lead to successful products.

Strategic Vision has a syndicated automotive buyer study that collects over 300,000 responses annually, using over 1,500 comprehensive data points, to include over 9,700 self-identified LGBT respondents, 8,000 African Americans and 38,800 social network users, to indicate a few. Since its foundation in 1972 and incorporation in 1989, Strategic Vision � led by company founders Darrel Edwards, Ph.D., J. Susan Johnson, Sharon Shedroff, with Alexander Edwards, Christopher Chaney and Molly Sirota � has studied consumer and constituent decision-making for a wide variety of clients, including most auto manufacturers, Coca-Cola, American Airlines, Procter & Gamble, the White House, 10 Downing Street, and many advertising agencies. Its unique expertise is identifying consumers' motivational hierarchies, including the values, emotions and images that shape perceptions and behavior. The firm's in-depth Discovery Interviews and ValueCentered Surveys provide comprehensive, integrated and actionable outcomes, linking behavior to attributes to consequences to values and emotions to images. For more information please visit www.strategicvision.com.

Product Innovation And "Love," Increases Quality Perception And Sales

Tue, 12 Jul 2011

San Diego � Strategic Vision Inc. (SVI) presented results of their 2011 Total Quality Index� (TQI) today, revealing the importance of understanding the consumer's definition of �Quality� as being reflected in the �Total� sum of the emotionally relevant experience for the new car buyer.

�Ford�a quality leader in our study�innovated, and we who count problems discovered that Ford received a large number of complaints primarily about one thing, Sync.�an in-car connectivity system. Does that warrant their �tumble� in some quality metrics?� Darrel Edwards, Ph.D., Chairman and Founder of Strategic Vision does not think so. �Decades ago, we decided to measure �Quality� from the �Total� perspective of the driver/owner, because this is how people actually judge �Quality� in terms of the decision to purchase or not,� says Dr. Edwards. �The number of complaints is considered, but there is absolutely justification�even requirement�for also considering the total positive experience created for the owner/driver,� continues Dr. Edwards.

A perfect illustration can be shown in the Volkswagen Jetta and Hyundai Sonata�two vehicles that tied for leadership position of Total Quality in the Mid-Size Car Segment. Both vehicles had a higher incidence of owners reporting problems (30%) than the segment average (22%) which isn't a good start to a customer's perception of quality. However, the impact of those problems on the customer's perception of quality is negligible because very few customers (only 1 in 20) experience a �Serious� problem, which is often fixed immediately at the dealership. Then, most importantly, vehicle attributes from exterior styling to interior room combined with the emotional benefits delivered by the driving and ownership experience to create some of the highest perceptions of delight and love for their vehicle.

�When customers explicitly state �I love [this] about my vehicle,� it results in increased sales,� says Alexander Edwards, President of Strategic Vision. �We explicitly measure the emotional impact of each vehicle attribute and ask the customer what they Love about their vehicle. Jetta and Sonata owners report more Love than most all of their competitors. This is why it is no surprise to us that the Jetta and Sonata have had their best sales ever with their 2011 models.�

�Anyone who rejects the concept of the �Total Quality� of a customer's experience being most important should beware, and ask themselves about how the emotional experience (intensity) and quality all work together,� says Christopher Chaney, Strategic Vision Vice President of automotive research.

Chaney continues, �Case in point, when Apple released the first generation iPhone it had a number of problems unique to its innovative position. I suppose it could have been subjected to a simple quality study which would have deemed it among the worst of solidly built, but innovatively boring, competitors. However, billions of dollars in profit and $335 per share later, competitors to Apple are desperately chasing the iPhone's tail winds�with some being left in the dust. When our Total Quality data is used correctly, companies don't find themselves asking �How did we get so far behind?� Rather they ask, �how do we remain in the lead.��

Volkswagen of America (VoA) was rated the best Full-line Corporation in Strategic Vision�s study, now in its sixteenth year of gathering data from the total population of new car buyers. VoA had three models (Golf, Jetta and Tiguan) that were Total Quality leaders, with attributes of Design and Exterior Styling that particularly impressed owners, along with many other cues of Quality that were very impactful upon owners.

Ford�as a Full-line Corporation�had the second best Total Quality score (863), but statistically ranks alongside American Honda Corporation (862) and Nissan Motor Corporation (862). Ford's Total Quality score received bolstering from segment leaders Mustang Coupe and Convertible, Flex, F-150, and 250/350, along with a number of other models that ranked very high. Strategic Vision's study did capture that Ford owners reported a higher (28%) than industry average (24%) percentage reporting problems, but the strength of their design, other important quality cues and innovation, along with brand strength kept sales and Total Quality scores high.

American Honda Motor continues strong with Civic Hybrid, Accord Crosstour, Odyssey and Ridgeline being segment winners. The Honda Ridgeline is basically in a class of its own among Standard Pickups, having been the segment leader since its introduction.

As a brand, Nissan is starting to show the results of hard work and improvement, and essentially ties as the second best brand in Total Quality. The Nissan Maxima was the Large Car Total Quality winner in a very strong segment.

The Chrysler Group also shows signs of resurgence toward leadership with Dodge Challenger and Jeep Grand Cherokee (redesigned) being winners in their very popular respective segments. Though not listed, the Chrysler Town & Country ranked second behind Odyssey in the Minivan Segment, and with the right innovation, may threaten for leadership again.

When just considering the Problem Impact score, Toyota Motor Sales would be considered the industry leader, with the least problems, but owners are still looking for more of a �Total Quality� experience, such as they have found with segment leader Sequoia.

Perhaps the biggest story among luxury manufacturers is the �comeback� of Land Rover and Jaguar. Jaguar XJ was leader�and with the highest Total Quality score in the industry�in the astonishingly superb segment of Luxury Cars� along with Land Rover LR4 in the Near-Luxury SUVs. BMW had two leaders with the 1-Series and X6, but the Mercedes C-Class took leadership in the Near-Luxury Car Segment.

Buyers rated the following vehicles top in their segments:

Segment	Winner(s)	TQI Score
Small Car	Honda Civic Hybrid	881
Small Multi-Function	Volkswagen Golf	871
Mid-Size Car	Volkswagen Jetta Sedan Hyundai Sonata	876 876
Mid-Size Multi-Function	Honda Accord Crosstour	889
Large Car	Nissan Maxima	888
Near-Luxury Car	Mercedes-Benz C-Class	903
Luxury Car	Jaguar XJ	929
Specialty Coupe	Dodge Challenger Ford Mustang Coupe	901 899
Premium Coupe	BMW 1-Series Coupe	917
Convertible	Ford Mustang Convertible	905
Premium Convertible/Roadster	Mercedes-Benz E-Class Cabriolet	919
Minivan	Honda Odyssey	860
Entry Utility	Volkswagen Tiguan	880
Mid-Size Crossover Utility	Ford Flex	886
Mid-Size Traditional Utility	Jeep Grand Cherokee	877
Large Utility	Toyota Sequoia	916
Near-Luxury Utility	Land Rover LR4	923
Luxury Utility	BMW X6	909
Standard Pickup	Honda Ridgeline	864
Full-Size Pickup	Ford F-150	906
Heavy-Duty Pickup	Ford F-250/350	885

Who is also winning big in the Total Quality race? The buyers! �Quality is becoming an increasingly more elusive concept for those in the automotive industry that don�t understand its total nature. Even Webster�s dictionary struggles with a definition that barely defines the attribute,� says Dr. Edwards. �Since transmissions are not falling out, and basic�but foundationally important�Security issues are solid with most cars, our decision is to measure Quality from the total perspective of the driver which is essential to understanding future success,� continues Dr. Edwards.

The Total Quality Index� asks buyers to rate all aspects of the ownership experience from buying and owning to performance and driving�much more than simply counting problems, although problems and the impact the problems have on the customers' experiences are included in the calculation. Results from studies that measure the number of problems or the overall satisfaction of a vehicle do not measure the customers' commitment to, advocacy for, loyalty, or the Delight and Love of their vehicles accurately.

The Total Quality Index� was calculated from 37,069 buyers who bought 2011 models in September to December of 2010. Strategic Vision has presented Total Quality Awards� annually since 1995.

Since its foundation in 1972 and incorporation in 1989, Strategic Vision�led by company founders Darrel Edwards, Ph.D., J. Susan Johnson, Sharon Shedroff and Alexander Edwards�has studied consumer and constituent decision-making for a wide variety of clients, including most auto manufacturers, Coca-Cola, American Airlines, Procter & Gamble, the White House, 10 Downing Street, and many advertising agencies. Its unique expertise is identifying consumers' motivational hierarchies, including the values, emotions and images that shape perceptions and behavior. The firm's in-depth Discovery Interviews and ValueCentered Surveys provide comprehensive, integrated and actionable outcomes, linking behavior to attributes to consequences to values and emotions to images. For more information please visit www.strategicvision.com.