Brand Perceptions: Automotive Study. © 2016 Dow Jones & Co. All Right Reserved.

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© 2016 Dow Jones & Co. All Right Reserved.

BRAND PERCEPTIONS AUTOMOTIVE STUDY. Explored trends in vehicle ownership, purchase factors and brand attributes of 38 auto brands.

Goal of this study was to understand: 1/

Vehicle ownership/purchase factors

2/

Perceptions of 38 auto brands

3/

Consideration set for next purchase

4/

Impact of advertising

 

© 2016 Dow Jones & Co. All Right Reserved.

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PROFILE & METHODOLOGY. Respondents are members of WSJ Opinion Leaders, an online insight community of WSJ readers Fielded February 23-February 28, 2015 MILLENNIALS

GEN X

BOOMERS

(18-39)

(40-54)

(55+)

6,145

251

966

4923

87/13

79/21

82/18

88/12

62

36

48

66

$272,795

$198,954

$323,331

$266,642

$2,882,655

$853,088

$2,002,459

$3,158,904

2.4

2.0

2.6

2.4

TOTAL

RESPONDENTS

  M/F AGE (AVG)

HHI (AVG)

HH INVESTMENTS (AVG)

# OF VEHICLES CURRENTLY OWNED (AVG)

© 2016 Dow Jones & Co. All Right Reserved.

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KEY METRICS. Respondents are members of WSJ Opinion Leaders, an online insight community of WSJ readers

Brand Perception Metrics:

FAMILIARITY % Very/Somewhat – Top 2 (out of 4)

VALUE FOR MONEY  % Excellent/Very Good – Top 2 (out of 5)

DESIRABILITY % Excellent/Very Good – Top 2 (out of 5)

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Ownership & Purchase Factors. © 2016 Dow Jones & Co. All Right Reserved.

CAR AFICIONADOS. 85% own/lease more than 1; close to 40% currently own/lease 3+ vehicles Number of Vehicles Household Currently Own/Lease 2% 3%

15%

9%

22%

49%

1

2

3

4

5

6+

Q1. We’d like to know the total number of vehicles (e.g. car, SUV, truck, mini-van) you/your household currently own or lease; Base: Total Respondents 6,145 © 2016 Dow Jones & Co. All Right Reserved.

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PURCHASED NEW, PAID CASH–DOMINANT. Specifically for primary vehicle, previously owned is top for 3rd and 4th vehicle

Purchase Type, Each Vehicle in Household 51% 45%

42%

40% 34%

31%

27% 28%

26% 19% 15%

18% 11% 6%

Purchased New, Paid Cash

Purchased New, Financed Vehicle 1

Vehicle 2

Purchased Previously Owned Vehicle 3

5%

3%

Lease

Vehicle 4

Q2. For each vehicle in your household, please specify where you leaded or purchased it. Base: Ever Purchased Vehicle, Vehicle 1=6,145, Vehicle 2=5,247 Vehicle 3=2,218, Vehicle 4=870 © 2016 Dow Jones & Co. All Right Reserved.

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IN THE MARKET. 83% purchasing in next 3 years; close to 1 in 4 in next year Plan to Purchase/Lease Next 3 Years

Yes, Next 6 Mos.

9%

15%

Yes, 7-12 Mos.

19%

Yes, 13-24 Mos.

Yes, 25-36 Mos.

11%

29%

Maybe, Within Next 3 Yrs.

No, Not Within 3 Years

18%

Q10. Does your household plan to purchase/lease any new vehicles within next 3 years? Base: Total Respondents 6,145 © 2016 Dow Jones & Co. All Right Reserved.

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PURCHASE TRIGGERS. ‘Want’ almost as important as ‘need’

70%

62%

(net) Motivated by ‘Want’

(net) Motivated by ‘Need’ High mileage on current vehicle

43%

Want latest features (safety, connectivity etc.)

26%

Too many repairs

30%

No particular reason, just want one

15%

Life-stage change (new job, baby, move to suburbs/city)

15%

Buying a vehicle for a family member (child, parent)

14%

Current lease ending

10%

Typically purchase new vehicle every 2-3 years

11%

Out of warranty

8%

Concerned about the environment; want alternative fuel/technology (electric/hybrid)

5%

Q3. People acquire vehicles for many different reasons. We’d like to understand your reasons for acquiring a new vehicle. (Check all that apply); Base: Total Respondents 6,145 © 2016 Dow Jones & Co. All Right Reserved.

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GENERATIONAL DIFFERENCES AMONG PURCHASE TRIGGERS.

43%

Of Millennials triggered to purchase based on life-stage change

25%

Of Gen Xers buying a vehicle for a family member

Q3. People acquire vehicles for many different reasons. We’d like to understand your reason for acquiring a new vehicle. (Check all that apply); Base Total Respondents 6,145 © 2016 Dow Jones & Co. All Right Reserved.

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GENERATIONS ARE MORE ALIKE THAN DIFFERENT IN BROADER MEANING OF THEIR VEHICLE. Strongly/Somewhat Agree 90%

93%

92%

60%

58% 51%

51% 41% 35%

A Car Means Having Freedom & Control

Millennials

My Car is an Expression of Who I Am & Who I Aspire to Be

Gen X

My Next Car Will Be a Symbol of My Success

Boomers

Q4. How much do you agree or disagree with the following statements. Please select one for each statement. Base Total Respondents 6,145 © 2016 Dow Jones & Co. All Right Reserved.

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KEY FACTORS WHEN PURCHASING A VEHICLE. Brand is a key consideration along with reliability, price, design and safety Great Deal/Some Consideration When Purchasing a Vehicle 99%

Reliability

95% 91%

Price Brand

90%

Design/Styling

89%

Safety Features

86%

Product Reviews

86%

Cost of Ownership

84%

Performance (cylinders, horsepower)

82%

Fuel Efficiency

79%

Luxury Features (entertainment, connectivity) 69%

Loyalty to a Brand 50%

Foreign Make

45%

Dealer Relationship Domestic Make

39%

Family/Friend Recommendation

38% 30%

Hybrid/Electric Great Deal of Consideration

Some Consideration

Q4. How much consideration do you give to the following characteristics when thinking of purchasing a vehicle? Base: Total Respondents 6,145 © 2016 Dow Jones & Co. All Right Reserved.

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FOR YOUNGEST COHORT KEY DIFFERENCES IN PURCHASE FACTORS. Give a Great Deal of Consideration (Top Box), When Purchasing

76% 64%

60%

56% 50%

51% 46%

46%

48%

26%

Design/Styling

27%

Fuel Efficiency Millennials

46% 40%

39%

Price

51%

Gen X

Brand

Cost of Ownership

Boomers

Q4. How much consideration do you give to the following characteristics when thinking of purchasing a vehicle?’ Base: Millennials 18-39=251, Gen X=966, Boomers=4923 © 2016 Dow Jones & Co. All Right Reserved.

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SUVS AND LUXURY SEDANS ARE TOP CHOICES. Hybrids more interesting than electric vehicles Type of Vehicle Considering for Next Purchase

49% 37%

36% 27%

25% 14%

14% 10%

Sport utility vehicle

Luxury sedan

Crossover utility vehicle

Sedan

Sports car

Q11. What type(s) of vehicles(s) are you considering? Q12. Are you considering acquiring… Electric, Hybrid vehicle; Base: Total Respondents 3,289 © 2016 Dow Jones & Co. All Right Reserved.

Pickup Truck

Electric

Hybrid

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Advertising. © 2016 Dow Jones & Co. All Right Reserved.

OPPORTUNITY FOR STRONGER AD CREATIVE. Consistent across generations

61% Agree

63% Agree

“ I don’t feel today’s car advertisements speak to who I truly am”

“Car advertisements allow me to learn about new car models & features”

Q13. How much do you agree or disagree with the following statements Strongly/Somewhat Agree; Base: Total Respondents 6,145 © 2016 Dow Jones & Co. All Right Reserved.

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AUTO ADVERTISING IN WSJ WORKS. 32% of respondents have planned/visited a dealer & 8% have purchased as a result of seeing an automotive ad in The Wall Street Journal Actions Taken From Auto Ad in WSJ 62%

Visited Website More Favorable Opinion

47%

Consider Purchasing

38%

Shared With Family/Friend

33%

Visit/Plan to Visit Dealer

32%

Requested Information

22%

Saved Ad

20%

Purchased Recommended to Others Other

8% 5% 8%

Q14. Which of the following actions, if any, have you every taken as a result of seeing automotive advertising in The Wall Street Journal; Base: Any action n=3488

© 2016 Dow Jones & Co. All Right Reserved.

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Brand Perceptions: Automotive Study. © 2016 Dow Jones & Co. All Right Reserved.