Is Love More Dependable Than Dependability When It Comes To Brand Loyalty? - http://howtoezearnonline.com | ways to make money onlineFebruary 14, 2018 6:48 pm
Categorised in: Breaking Financial News
The latest J.D. Power dependability report is out and Lexus, Porsche, and Buick took the top three spots. This is Buick’s third year in a row to top the “mainstream” brands.
J.D. Power describes the report as, “Dependability is measured by the number of problems experienced per 100 vehicles, with a lower score signifying higher quality. This year’s study assesses vehicles from the 2015 model year.”
This got me thinking on this Valentine’s Day: How much does this dependability play into brand loyalty? How much are current owners willing to overlook the flaws they report to stay with the brand? Of the roughly 16 million unique users visiting Kelley Blue Book’s KBB.com every month, we estimate 85% of them configure the trade in value of their personal vehicle – in other words, they probably own the vehicle or at least know someone who does. KBB.com measures how many visitors interact with both the trade-in and New Car Pricing pages of the same brand and calls it “Shopper Loyalty.”
The correlation may not be an exact one, as the KBB.com visitors are evaluating vehicles from all years and the J.D. Power study is for 2015 model years, but it’s still an interesting parallel to evaluate. Does dependability translate into brand loyalty?
Lexus ranked number one again in the study, for the seventh year in a row, but just 44.2% of current owners also shop for a new Lexus, down 7% from last year and falling from 11th to 23rd in loyalty rankings. The best selling Lexus RX has a slightly higher loyalty at 45.1%, and ranked the highest in midsize premium SUV in the J.D. Power study.
While Lexus may be dependable, current owners appear to be looking for something different in their next vehicle.
Porsche has suffered a similar fate as Lexus, ranking number 2 in the J.D. Power study but also falling by 7 percentage points from 48.8% to 41.8% from 4Q16 to 4Q17 on KBB.com loyalty. We do see alignment at the model level though – Porsche Macan owners are far more loyal than Porsche Cayenne owners. The Macan ranked well in the J.D. Power study for Compact Premium SUV while the aforementioned Lexus RX took the Midsize Premium SUV title.