Acxiom(R) Finds Domestics Are Best Positioned in Declining Pickup MarketAcxiom Automotive Consumer Dynamics StudyLight-Duty (LD)
May 28 2008 - 6:00AM
Business Wire
As 2008 light-duty pickup sales have declined by nearly 17 percent
through April 2008, it is no surprise that continued economic
pressures are drastically shrinking a market that is shared by both
domestic and import brands. However, new consumer data reveals that
Detroit�s Three (GM, Ford and Chrysler) hold the greatest potential
to weather the storm with their current � and loyal � consumer
base. An Acxiom Corporation (NASDAQ: ACXM) study discovered today
that regardless of whether these consumers purchase a pickup the
next time around, domestic truck owners are much more loyal to
their truck and brand than are consumers of import brand trucks.
This month�s Automotive Consumer Dynamics study looked at more than
19 million consumers who consider themselves �truck people� and
exposed a striking stronghold that domestic brands have on the
market over imports. Top findings include: Big Three Domination:
domestic brands have successfully built large, loyal franchises of
consumers for their trucks over several decades � something that
import brands have failed to do despite significant marketing and
product development investments Wide Open Spaces, Wide Open
Opportunity: the traditional pickup consumer, represented by those
individuals who live in rural areas and/or use a pickup primarily
for its utility function, still remains the best target for
manufacturers and retailers to concentrate their marketing efforts.
Domestic Devotion: domestic truck owners are more loyal to the
truck and the brand as compared to their import counterparts, and
they also display a much higher propensity to have multiple pickups
of the same brand in their garages. However, among the top six
trucks, only Chevy Silverado owners increased their brand affinity
each year over the past three years. Truck buyer interests:
Consumers of domestic trucks are a highly-defined group, sharing a
significant number of the same interests; Asian truck consumers are
more disparate and don�t exhibit traditional �truck buyer�
interests Next Vehicle Purchase: Current truck owners increased
their intention to buy a CUV or a hybrid dramatically since January
of 2008. Their intention to purchase an SUV next dropped 38
percent. �It�s undeniable that the pickup market is declining
rapidly, but the real opportunity lies with traditional pickup
buyers,� said Acxiom Automotive Executive Tim Longnecker. �This
study clearly illustrates that while today�s pickup owners may
delay their next pickup purchase due to a declining economy and
rising gas prices, their higher loyalty to their truck�s brand can
be served with other vehicles in the brand if they leave the truck
segment. And for the majority of those that stay within the pickup
market, continuing to serve their needs with product innovation
will be critically important.� Big Three Come Out on Top Currently,
domestic pickups hold over 87 percent of the market share, with the
majority of those consumers falling within Acxiom Automotive
Consumer Group 8: Wide Open Spaces. This group includes individuals
who live in rural areas and/or use a pickup primarily for its
utility function. The study found that these consumers continue to
have the strongest propensity to buy domestic pickups, attributed
to the loyal franchises these manufacturers have built over several
decades. �Over the past three years, we have found that consumer
appeal for domestic trucks has remained high, while that for import
trucks has not developed despite significant marketing efforts,�
says Longnecker. �Because domestic manufacturers have established
large numbers of brand loyalists, they are best positioned to serve
these current customers within the brand � whether they exit the
segment or not.� Domestic Brand and Truck Loyalty Acxiom found that
traditional pickup consumers display extreme brand devotion and
truck loyalty as they consistently purchase vehicles that are of
the same brand as the pickup they own. For example, Acxiom found
that since 2005, Ford F-150 owners have consistently remained �all
Ford� with garage mates ranging from another F-150 to a Ford
Explorer to a Ford Mustang. Acxiom also found that over 14 percent
of Detroit Three pickup owners have a second truck of the same
brand in their garage, while fewer than 10 percent of import pickup
owners do. The study shows that these trends can be attributed to
the fact that domestic pickup consumers are a highly-defined group,
sharing a significant number of the same interests, proving they
are a strong and stable consumer group invaluable to the future of
the domestic pickup market. The Disparate Import Truck Buyer
Alternatively, those consumers who purchase import pickups are not
as easily defined as their domestic counterparts and are far more
disparate when it comes to general interests and lifestyle habits.
These individuals, although displaying loyalty to import brands, do
not show the allegiance to the pickup segment that domestic buyers
display and could exhibit �once and done� behavior, purchasing a
pickup only one time. Those Consumers Who Leave Truck owners�
intention for their next vehicle purchase has changed dramatically
from January through April of 2008. Several non-truck segments
showed increases. Nearly 50 percent of truck owners are considering
a car next (up 13 points). Another 34 percent of truck owners plan
to purchase another truck (up 6 points). About 17 percent are
considering a CUV (up 11 points) and 7 percent are considering a
hybrid (up 5 points). Fewer truck owners are considering an SUV (18
percent, down 11 points) or a minivan (3 percent, down 4 points) to
replace their truck. Since two-thirds of current truck owners are
considering their next vehicle purchase outside of the truck
segment, all automakers and retailers have a historic opportunity
to keep these valuable customers from fleeing the brand, even if
they leave the truck segment. This is the fourth in an ongoing
series of monthly, consumer-centric studies of the North American
automotive industry, titled Automotive Consumer Dynamics. To
download a copy of the study, or to subscribe to receive future
editions, please visit www.acxiom.com/automotive (no registration
required). Automotive Consumer Dynamics is powered Acxiom�s
InfoBaseX�, the largest, most accurate, comprehensive and
multi-sourced data collection of U.S. consumer information in one
source. PersonicX� is Acxiom�s household-level segmentation suite
that places U.S. households into one of 70 distinct segments and 21
life-stage groups based upon specific consumer behavior and
demographic characteristics. About Automotive Consumer Dynamics
Automotive Consumer Dynamics differs from other studies and
analysis available to the industry in that it focuses on all U.S.
consumers versus a sample, is prospective (what specific vehicles
consumers intend to purchase next) versus historical (what
aggregate consumers purchased last, and the findings are
immediately actionable by automotive marketers because they provide
addressability to specific individuals and households of interest.
Automotive Consumer Dynamics categorizes all U.S. automotive
consumers into 10 consumer groups by combining the attitudes,
behaviors, intentions, and current vehicle ownership of vehicle
buyers across the country. The study offers predictive, timely
information that can improve automotive marketing effectiveness and
overall business performance dramatically through more timely and
targeted communications to key prospects. About Acxiom At Acxiom,
we make information intelligent�for many of the world�s leading and
most dynamic companies, enabling them to acquire new customers,
retain their most valuable customers, communicate with customers in
the methods and times they prefer, and make profitable marketing
and business decisions. Acxiom�s unmatched customer insight is
achieved by blending the world�s largest repository of consumer
data, award-winning technology and analytics, multi-channel
expertise, privacy leadership, and superior knowledge of a wide
spectrum of industries. Automotive The world�s leading automakers,
distributors, retail groups, financial institutions and other
companies within the global automotive industry rely on Acxiom to
provide an unparalleled combination of consumer insights, digital
solutions, multi-channel marketing expertise, analytics and
technology, to empower them to become more consumer-centric and
faster-to-market. Delivered with an integrated consultative
approach, we provide superior business value and ROI for our
clients worldwide. Founded in 1969, Acxiom (Nasdaq: ACXM) is
headquartered in Little Rock, Arkansas, with locations throughout
the United States and Europe, and in Australia and China. For more
information about Acxiom, visit www.acxiom.com. Acxiom is a
registered trademark of Acxiom Corporation.
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