Know Your Brands: Tailoring Maintenance Service by Vehicle Brand

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1 Know Your Brands: Tailoring Maintenance Service by Vehicle Brand An Analysis of Vehicle Owners’ Maintenance and Repair Attitudes and Behaviors by Vehicle Brand N69D-18 August 2009 Know Your Brands: Tailoring Maintenance Service by Vehicle Brand An Analysis of Vehicle Owners’ Maintenance and Repair Attitudes and Behaviors by Vehicle Brand Mary-Beth Kellenberger Global Program Manager, Automotive Aftermarket Rolando Barrera Research Analyst, Customer Research September 23, 2009 N69D-18

description

An analysis of vehicle owners's maintenance and repair attitudes and behaviors by vehicle brand.

Transcript of Know Your Brands: Tailoring Maintenance Service by Vehicle Brand

Page 1: Know Your Brands: Tailoring Maintenance Service by Vehicle Brand

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Know Your Brands: Tailoring Maintenance Service by Vehicle Brand

An Analysis of Vehicle Owners’ Maintenance and

Repair Attitudes and Behaviors by Vehicle Brand

N69D-18

August 2009

Know Your Brands: Tailoring Maintenance

Service by Vehicle Brand

An Analysis of Vehicle Owners’ Maintenance

and Repair Attitudes and Behaviors by Vehicle Brand

Mary-Beth KellenbergerGlobal Program Manager, Automotive Aftermarket

Rolando Barrera

Research Analyst, Customer Research

September 23, 2009N69D-18

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Research Objectives

The primary objective of this research was to assess United States (U.S.) vehicle owners’ behaviors and attitudes regarding the routine maintenance of their primary vehicles at a vehicle brand level.

Supporting this primary objective, this research was designed to determine if significant variances exist between vehicle brands for:

• Minor and other maintenance service “take rates”

• Attitudes and beliefs towards minor maintenance and other maintenance services

• Service location choice

• Do-It-Yourself maintenance

• Oil change and fuel purchase behaviors

• Replacement part choices (OE vs. Aftermarket vs. remanufactured vs. salvage)

• Ownership and usage patterns for roadside assistance

• Understanding changes in attitudes and purchase behaviors toward minor maintenance and other maintenance services resulting from economic or social changes

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Method Details/Respondent Demographic Profile

Methodology

A web-based survey methodology was utilized.

Sample

• Frost & Sullivan partnered with a trusted web-panel based

supplier to achieve the targeted number of responses.

• Targeted 1,085 U.S. vehicle owners who have had general

vehicle maintenance performed on their primary vehicle within

the past 12 months.

• Respondents had to own or lease the vehicle and be primarily or

jointly responsible for vehicle maintenance and repair

• Responses were for primary household vehicle

• All vehicle brands were invited to participate

• Vehicles were limited to model years 1998 or less, to maximize

responses from vehicles in peak repair years

• Data was collected in April 2009.

Age of Respondents

(N=1085)

3%

16%

23%

40%

17%

0% 15% 30% 45%

17-25 Years

26-35 Years

36-45 Years

46-60 Years

Over 60 Years

Source: Frost & Sullivan

Gender

(N=1085)

58%

42%

Male Female

Employment Status

(N=1085)

45%

11%

13%

1%

18%

6%

6%

0% 15% 30% 45% 60%

Full-time

Part-time

Homemaker

Student

Retired

Unemployed

Self Employed

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Vehicle Manufacturers/Makes

(N=1085)

28%

20%

15%

11%

10%

8%

5%

4%

0% 20% 40%

GM

Ford

Chrysler

Toyota

Other Asian Makes

Honda

Nissan

European Makes

Vehicle Demographic Profile vs. Vehicles in Operation

Source: Frost & Sullivan

The vehicle manufacturers/brands listed below represent the research perspective throughout this document.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015

% o

f V

IO P

op

ula

tio

n

GM Ford Chrysler Toyota Honda Nissan Other

Vehicle Population: Percentage of Vehicles in Operation (VIO) by Brand (United States), 2009-2015

• VIO population of survey respondents is consistent with overall U.S. VIO population

• By 2015 domestic brands GM, Ford, and Chrysler are expected to lose 2.9% of share dropping from 63.1% to 60.2%

• Toyota, Honda and Nissan are expected to gain up to 7.5% share, capturing if from domestic brands as well as European and other Asian brands.

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Demand for Routine Services have Also Declined. Demand Dropped an Average of 37% for Routine Services Other than Engine Oil Change

Most Recent Minor Maintenance Performed

95%

48%

42%

26%

8%

100%

94%

76%

59%

0% 20% 40% 60% 80% 100%

Engine Oil Change

Air Filter Change

Tire Rotation

Tire Balance

Other

2008 (N=1085) 2006 (N=526)

“Source: Frost & Sullivan"

Q1: Considering the most recent minor scheduled maintenance that was performed on your vehicle, which of the following types of maintenance were performed?

Note: Multiple mention question.

2009

Key Take Away: Overall, vehicle owners adhere to their vehicle’s minor maintenance schedules –

with oil changes performed more frequently compared to other types of minor maintenance.

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Vehicle Brand had Very Little Influence on Service “Take Rates”

Percentage of Vehicle Owners by Brand Who Completed Service in Last 12 months (United States), 2009

• Generally, the service demand sequence for these minor services is similar across vehicle brands

• There are very similar “take rates” for engine oil but as well for air filters and tire rotation services across brands

• Honda owners and European brand vehicle owners have stronger association between engine oil change and air filter change

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Engine Oil Air Filter Tire

Rotation

Tire

Balance

Other

GM

Ford

Chrysler

Toyota

Honda

Nissan

European

Other Asian

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Frequency of Minor Maintenance

Frequency of Minor Maintenance Performed Within Past 12 Months

(N=1085)

6%

73%

76%

84%

78%

24%

21%

14%

16%

3%

3%

2%

0% 20% 40% 60% 80% 100%

Engine Oil Change

Air Filter Change

Tire Rotation

Tire Balance

0-2 Times 3-4 Times More than 4 times

Source: Frost & Sullivan

S7: Within the past 12 months, approximately how many times did you have the following types of minor maintenance performed on you vehicle?

Key Take Away: Overall, vehicle owners adhere to their vehicle’s minor maintenance schedules –

with oil changes performed more frequently compared to other types of minor maintenance.

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Locations of Minor Maintenance Work

Location of Most Recent Minor Maintenance Work

24

19

46 6

21

3

13

27

10

4 46

17

4

19

30

16

46

47

19

6

31

12

46

36

25

2

0

10

20

30

40

My Vehicle

Dealer

An

Independent

or Franchise

Repair Shop

Gas Station

Service

Center

Mass

Merchant

Retailer or

Department

Store Chain

Automotive

Retailer With

Service Bays

Service

Center that

Specializes in

Lube, Oil,

and Filter

Changes

Tire Company

Chain

Did It Myself

(DIYers)

Engine Oil Change (N=1028) Air Filter Change (N=524) Tire Rotation (N=458) Tire Balance (N=277)

Source: Frost & Sullivan

Q2: Where did you have your most recent (minor maintenance) performed?

Perc

en

t o

f F

req

ue

nc

ies

Key Take Away: The largest proportion of vehicle owners depend on their dealerships to perform minor maintenance.

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General Motors Vehicle Owner Minor Maintenance Services by Channel

Locations for Minor Maintenance Work - GM

(N=303)

21

16

47 7

23

3

14

23

10

4

86

19

3

27

2118

3

7

3

8

23

9

25

17

35

25

29

2

0

10

20

30

40

My Vehicle

Dealer

Independent

or Franchise

Repair Shop

Gas Station

Service

Center

Mass

Merchant

Retailer or

Departement

Store Chain

Automotive

Retailer with

Service Bays

Service

Center that

Specializes in

Lube, Oil,

and Filter

Changes

Tire Company

Chain

Did it Myself

Engine Oil Change Air Filter Change Tire Rotation Tire Balance

Source: Frost & Sullivan

Q2: Where did you have your most recent minor maintenance performed?

Perc

en

t o

f F

req

ue

nc

ies

Among GM Owners

Key Take Away: The largest proportion of GM owners trust tire company chains to perform tire-related maintenance over other and/or their own dealers.

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Honda Vehicle Owner Minor Maintenance Services by Channel

Locations for Minor Maintenance Work - Honda

(N=84)

42

14

62 1

21

14

51

2

9

2 4

19

2 4

42

74 4 4

139 7

42

4 40

48

19

8

0

20

40

60

My Vehicle

Dealer

Independent

or Franchise

Repair Shop

Gas Station

Service

Center

Mass

Merchant

Retailer or

Departement

Store Chain

Automotive

Retailer with

Service Bays

Service

Center that

Specializes in

Lube, Oil, and

Filter

Changes

Tire Company

Chain

Did it Myself

Engine Oil Change Air Filter Change Tire Rotation Tire Balance

Source: Frost & Sullivan

Q2: Where did you have your most recent minor maintenance performed?

Perc

en

t o

f F

req

ue

nc

ies

Among Honda Owners

Key Take Away: The largest proportion of Honda owners trust their dealers to perform the surveyed minor vehicle maintenance work.

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Dealership Loyalty for Minor Maintenance by Vehicle ManufacturerBrand

Minor Maintenance Performed At Vehicle Dealer Since Purchase of Vehicle

(N=1085)

67%

55% 54%50% 49%

45%43%

38%

0%

20%

40%

60%

80%

Honda European

Makes

Ford Nissan "Other"

Asian Makes

Chrysler GM Toyota

Source: Frost & Sullivan

Q3: From the time you acquired your vehicle, did you ever have minor scheduled maintenance performed at your vehicle dealership?

Key Take Away: Significantly more Honda owners return to their dealership for minor maintenance compared to other vehicle

owners. Conversely, only 38 percent of Toyota owners have returned to their dealership.

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Important Features Contributing to Selection of Engine Oil Change at Dealership:

Percent Extremely/Somewhat Important

80%

93%

100%

88%

100%100%

89%93%

86% 88%

80% 80%

89%

60%

88%86%

78% 78% 80%82%

100%

10%

85%80%

10%

67%

50%

80%

10%

100%

60%

85% 86%

50%

100%

0%

20%

40%

60%

80%

100%

It is conveniently

located

Its hours of operation fit

my schedule

It offers very competitive

rates

It offers the best value

for money

The service personnel

explain things to me in

terms I can understand

Ford GM Chrysler Toyota Honda Nissan European Makes Other Asian Makes

Features that Drive Dealership Loyalty for Oil Change

Source: Frost & Sullivan

Q2A. Please indicate how important each of the following is as to why you selected to have your most recent engine oil change performed at your dealership.

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Influencing Factors for Selecting Dealership for Engine Oil Change

Q2A1: How did you choose the dealership for your most recent engine oil change?

Source: Frost & Sullivan

Influencing Factor for Why Dealership Was Selected for Most Recent Engine Oil Change

65%

18%

8%3%

0%

8%

82%

3%8%

0% 0%5%

63%

3%

13%10%

3%7%

73%

12%9%

0%3% 3%

71%

6%

12%

3% 3%6%

55%

18%

9%

0%

9% 9%

62%

16%

0%

23%

0% 0%

75%

4%7%

11%

4%0%

0%

20%

40%

60%

80%

100%

Previous ExperiencePerception About the

Location

Friend

Recommendation/Word

of Mouth

Internet Telephone Other Advertising

Ford (N=214) GM (N=303) Chrysler (N=167) Toyota (N=117)

Honda (N=84) Nissan (N=50) European Makes (N=44#) Other Asian Makes (N=106)

Key Take Away: Past behavior tends to indicate future behavior. Thus, if a customer has a good experience with an engine

oil change at their dealership, that experience will likely influence their decision to return to the dealership.

Secondary point: More GM owners are influenced by their previous dealer

experience to return to the dealership,

compare to other vehicle owners.

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Other Maintenance Services Recently Performed

Other Types of Maintenance Performed Within the Past 12 Months

(N=1085)

49%

29%

23%

20%

17%

17%

15%

0% 20% 40% 60%

Brake Service or

Inspection

Transmission Maintenance

Engine Cooling System

Maintenance

Air Conditioning System

Maintenance

Fuel Injection Service

Suspension System

Maintenance

Muffler and Exhaust

Service

Source: Frost & Sullivan

Q4: Thinking about other scheduled maintenance or mechanical repairs you have had performed on your vehicle, which of the following types of other scheduled

maintenance or repairs were performed within the past 12 months?

Key Take Away: Brake service or inspection is the most performed other maintenance.

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Dealers and Independents Capture Majority of Other Maintenance Service Work

Locations for Other Maintenance Work

3229

10 95 4

37

28

8 6 53

43

25

5 6 7

0

37

23

0

5 5 4

32 31

10

5 53

3531

64

8

2

35

27

8 7 6

1

0

20

40

60

My Vehicle

Dealer

Independent or

Franchise Repair

Shop

Did it Myself Automotive

Retailer with

Service Bays

Gas Station

Service Center

Mass Merchant

Retailer or

Department

Store Chain

Fuel Injection Service (N=182) Transmission Maintenance (N=310)Air Conditioning (N=213) Engine Cooling System Maintenance (N=252)Brake Service or Inspection (N=530) Muffler and Exhaust Service (N=166)Suspension System Maintenance (N=182)

Source: Frost & Sullivan

Q5: What type of vehicle maintenance service provider performed your most recent other maintenance or repair?

Perc

en

t o

f F

req

ue

nc

ies

Key Take Away: Vehicle dealers are the most popular location for other maintenance work.

However, independent or franchise repair shops pose threats to dealers.

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Ford Vehicle Owner Location Choice for Other Maintenance Service

Locations for Other Maintenance Work - Ford

(N=214)

26

32

5

2

6

15

36

27

9

0

5

9

34

20

6

0

6

11

0

20

40

My Vehicle Dealer Independent or

Franchise Repair

Shop

Gas Station

Service Center

Mass Merchant

Retailer or

Departement Store

Chain

Automotive

Retailer with

Service Bays

Did it Myself

Brake Service or Inspection Muffler & Exhaust Service or Inspection Suspension System Service

Source: Frost & Sullivan

Q5: What type of vehicle maintenance service provider performed your most recent other maintenance service?

Perc

en

t o

f F

req

ue

nc

ies

Among Ford Owners

Key Take Away: For brake service or inspection, nearly one-third of Ford vehicle owners trusts independent or franchise repair shops. However, roughly the same proportion trust Ford dealers to perform their muffler/exhaust service/inspection and

suspension system service than any other service provider.

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General Motors Vehicle Owner Locations for Other Maintenance Work

Locations for Other Maintenance Work - GM

(N=303)

29

34

5

24

12

33

5

0

3

8

27

33

2 2

1012

38

0

20

40

My Vehicle Dealer Independent or

Franchise Repair

Shop

Gas Station

Service Center

Mass Merchant

Retailer or

Departement Store

Chain

Automotive

Retailer with

Service Bays

Did it Myself

Brake Service or Inspection Muffler & Exhaust Service or Inspection Suspension System Service

Source: Frost & Sullivan

Q5: What type of vehicle maintenance service provider performed your most recent other maintenance service?

Perc

en

t o

f F

req

ue

nc

ies

Among GM Owners

Key Take Away: The largest proportion of GM owners selected an independent or franchise repair shop for brake service/inspection, muffler/exhaust service/inspection, and suspension system service.

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Other Asian Vehicle Owner Locations for Other Maintenance Work

Locations for Other Maintenance Work - Other Asian Makes

(N=106)

35

24

6 6

12

6

37

21

5

0

11

5

52

20

40

4 4

33

24

6

0

12

6

0

20

40

60

My Vehicle Dealer Independent or

Franchise Repair

Shop

Gas Station

Service Center

Mass Merchant

Retailer or

Departement Store

Chain

Automotive

Retailer with

Service Bays

Did it Myself

Fuel Injection Service Transmission Service A/C System Service Engine Cooling System Service

Source: Frost & Sullivan

Q5: What type of vehicle maintenance service provider performed your most recent other maintenance service?

Perc

en

t o

f F

req

ue

nc

ies

Among Owners of Other Asian Makes

Key Take Away: For all other maintenance work shown below, the largest proportion of other Asian make owners trusted their dealers over other repair locations.

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Q8: Of the following statements, how would you rate your level of agreement?

Source: Frost & Sullivan

Note: Multiple mention question.

Attitude towards Scheduled Vehicle Maintenance:

Percent Stronly Agree/Somewhat Agree

63%

16%

33%

41% 42%

73%

18%

31%

43%

32%

64%

19%

28%32% 35%

85%

16%

39%42%

29%

86%

20%

35% 34%

20%

70%

5%

20%25%

37%

89%

18%

30%

40%

20%

80%

21%

30%

45%50%

0%

20%

40%

60%

80%

100%

I Would Perform Other

Scheduled Maintenance

Because it is

Recommended in the

Owner's Manual Provided

By my Manufacturer

I Would Not Perform Other

Scheduled Maintenance

Until There is a Vehicle

Breakdown

I Would Not Perform Other

Scheduled Maintenance

Until There is Noticable

Indication of Reduced

Performance - Reduced

Acceleration, Balding

Tires, Unpleasant Vehicle

Noises or Vibrations etc.

I Would Not Perform Other

Scheduled Maintenance

Until I Have Saved Enough

Money to Cover the

Expenses

I Have my Own Ideas

About What the

Time/Milage Interval

Between Scheduled

Maintenance

Ford (N=94) GM (N=102) Chrysler (N=78) Toyota (N=46#)

Honda (N=35#) Nissan (N=20#) European Makes (N=27#) Other Asian Makes (N=40#)

Across Vehicle Brands, Owners have Similar Attitudes Towards Scheduled Vehicle Maintenance

Key Take Away: The majority of all vehicle owners agree they would perform other scheduled maintenance because it is recommended in the owner’s manual, especially European make owners.

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Attitude Towards Vehicle Maintenance Behaviors:

Percent Stronly Agree/Somewhat Agree

58%53%

61%

51%46%

61% 61%

67%

52% 51%

67% 66%

54% 56% 55%

69%

63%

52%

41%

56%

74%

49%

64%

38%

52%56%

50%

57%

31%

52%

41%

50%

56% 54%59%60%

68%

62% 61%56%

0%

20%

40%

60%

80%

The Fluctuating Gas

Prices and Tight

Economy Have Made me

Look for Ways to Cut

Down on Other Types of

Vehicel Related

Expenses

I Increased the Amount

of Attention I Pay to my

Tire Pressure to

Improve Fuel Efficiency

I Have Reduced Other

Activities (e.g., Eating

Out, Going to the

Movies, Concerts, etc.)

The Fluctuating Gas

Prices and Tight

Economy Have me Look

For Ways to Cut Down

on Maintenance Costs

I Conscientiously Have

Reduced my Speed

When Driving to Reduce

Fuel Consumption

Ford GM Chrysler Toyota Honda Nissan European Makes Other Asian Makes

Q9: We would like you to think about your vehicle maintenance behaviors during the past 2-3 years, and for the following statements, please rate your level of agreement?

Source: Frost & Sullivan

Across Vehicle Brands, Owners Have Similar Attitudes and Behavior Responses to Challenges Put Forth by the Economy

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Q9: We would like you to think about your vehicle maintenance behaviors during the past 2-3 years, and for the following statements, please rate your level of agreement?

Source: Frost & Sullivan

Note: Multiple mention question.

Attitude Towards Vehicle Maintenance Behaviors:

Percent Stronly Agree/Somewhat Agree

18%

32%

24%28%

15%

11%

23%

32%30%

32%

21%

6%

19%

32%

44%

32%

21%

5%

28%30% 31%

24%

31%

8%

33%

20%

30%

23%

17%

10%

22%

14%

25%28%

6%

0%

50%

44%

29%32%

15%

24%

34%

16%

35% 34%

24%

11%

0%

20%

40%

60%

Wherever it is

Available I Try to Use

Eco-friendly Fuels

Like Ethanol

I Have Used

Chemicals/Additives

for This Vehicle to

Enhance the Engine

Performance

As a Means of Saving

on Repair Costs, I

Have Increased the

Length of Time

Between Maintenance

Intervals

I Have Changed my

Work Location or

Activities So I Drive

Less

As a Means to Save

on Costs, I Am More

Likely to Buy

Maintenance

Consumables Like

Engine Oil/Filters etc.

in Bulk

I Have Recenty

Purchased a More

Fuel Efficient Vehicel

(e.g., Hybrid, Diesel,

Scooter, etc.) for

Commuting

Ford GM Chrysler Toyota Honda Nissan European Makes Other Asian Makes

Across Vehicle Brands, Owners Have Similar Attitudes and Behavior Responses to Challenges Put Forth by the Economy

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Replacement Parts Preferences

38%

14% 13%15%

7%

37%

15%12%

14%

5%

34%

17%14% 13%

7%

44%

16%13%

11%

3%

48%

21%

5%

10%

4%

40%

18%

8%

14%

6%

45%

9%

14%

9%

2%

29%

16%18%

16%

4%

0%

20%

40%

60%

Original Equipment (OE)

Replacement Parts (i.e.

Ford, GM, Toyota etc.)

I Have Not Purchased

Replacement Parts for

my Vehicle

Aftermarket National

Brands (i.e. Bosch,

DENSO, TRW, Moog,

etc.)

Whatever the

Dealership/Installer

Uses

Whatever is Available

Ford (N=214) GM (N=303) Chrysler (N=167) Toyota (N=117)

Honda (N=84) Nissan (N=50) European Makes (N=44#) Other Asian Makes (N=106)

Q21: When selecting replacement parts for your vehicle, which of the following do you primarily select?

Source: Frost & Sullivan

All Owners Demonstrate Strong Preference for OE Replacement Parts

Key Take Away: The largest proportion of vehicle owners selects original equipment replacement parts when performing repairs

or maintenance.

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Strategic Conclusions

• When it comes to service “take rates” and general attitudes and behaviors toward maintenance and repair, vehicle owners are similar across brands.

• The changes in the economy did not produce significant differences in how owners of different brands behaved.

• Demographics

• Job loss

• Vehicle type were stronger indicators than brand.

• The factors most influenced by brand were service channel and maintenance service types:

• The dealer is still the strongest channel across all brands for light maintenance and other repairs

• Asian vehicle owners and especially Honda vehicle owners were very loyal to the dealership channel

• The strongest threat to GM and Ford dealerships are the independent repairers for both maintenance services and other repairs. Convenience and confidence are the strong draw for that channels

• All owners of all vehicle brands were showing use of service specific centers; (LOF for oil changes and tire chains for tire rotation and balancing) but usage was stronger amongst domestic brand vehicle owners

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Recommendations

• All brand owners showed an increased tendency to increase the interval between maintenance and repair services.

• Declining job counts

• Declining value per job

• Reduced opportunities for inspection/identification of other issues

• Asian brand vehicle owners are still loyalty to the dealership channel because of their confidence in the quality of the service. Asian brand vehicle owners are less motivated by convenience than domestic brands

• European brand vehicle owners are showing strong agreement with environmental statements

• OE brands are the primary choice for all vehicle brands but domestic vehicle owners as well as “other Asian brand vehicle owners” appear to be more open to other types of parts. Investigate alternatives products for alternative vehicles.

• No matter what the vehicle brand, owners are adopting similar methods for dealing with the economic downturn. Cost saving promotions should be directed to all makes/models

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For Additional Information

Rolando Barrera

Research Analyst

Customer Research

Tel: 210-247-2465

E-mail: [email protected]

Mary-Beth Kellenberger

Global Program Manager

Automotive Aftermarket

Tel: 416-490-1997

E-mail: [email protected]

Jake WengroffGlobal Director

Corporate Communications

Tel: 210-247-3806

E-mail: [email protected]