SA car brand loyalty low, finds Ipsos study

10th July 2014

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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More than a third (35%) of current car owners who are considering purchasing a new car in the near future, say they will possibly purchase a different car brand to the one they have, this according to a study by Ipsos.

A third of car owners are undecided on the matter.

“What this means is that car manufacturers can count on less than 30% repeat purchases,” says Ipsos South Africa Loyalty research head Rentia Krämer. “This indicates a low level of brand loyalty in the automotive market.”

The lack of loyalty amongst car buyers is most noticeable among 25- to 34-year old vehicle owners, as well as higher-income vehicle owners – the most attractive market for most automotive manufacturers. 

“Seeing that potential car buyers are considering switching brands, what are the most important aspects influencing car brand choice among current car owners?” poses Krämer. 

According to the study, 28% of vehicle owners say price is the most important factor when purchasing a vehicle.

This is followed by brand reputation (15%), fuel efficiency (13%) and engine size (12.5%).

The study also shows a subtle trend towards downscaling – 28% of current car owners say they are considering buying a smaller car in terms of price, size and engine size.

“These price and cost factors are most likely influenced by the general economic conditions, inflation and ever-increasing pressure on household budgets,” says Krämer.

“However, we also know that brand reputation is largely influenced by experience, indicating the importance of positive experiences with the brand throughout the ownership experience and, in particular, at the key experience touch points.

“These positive experiences drive positive loyalty behaviours, such as willingness to buy again and brand advocacy.”

Ipsos South Africa is a research agency with a focus on measuring customer experience and loyalty.

For the purpose of this research study, a total of 3 730 personal face-to-face interviews were conducted with randomly selected adult South Africans.

Edited by Creamer Media Reporter

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