Front/Cover PanelBack Panel

© 2012 AutoTrader.com, Inc., All Rights Reserved. “AutoTrader,” “AutoTrader Classics,” “AutoTraderClassics.com,” and the AutoTrader Classics logo are trademarks or registered trademarks of TPI Holdings, Inc., all used under exclusive license.

NEW LUXURY VEHICLELOYALTY STUDY

A total of 1,485 “Loyalists” and “Defectors” among six luxury brands were interviewed (Acura, Audi, BMW, Cadillac, Lexus, and Mercedes-Benz) via telephone survey from September 2011 through November 2011. Loyalty data for the study was derived from Polk household loyalty data, which leverages registration information from June 2010 to May 2011.

METHODOLOGY

LUXURY LOYALIST:A luxury new vehicle buyer/household that purchases a replacement vehicle or an additional vehicle from the same luxury brand that they already own.

LUXURY DEFECTOR: A luxury new vehicle buyer/household that purchases a replacement vehicle or an additional vehicle from a luxury brand different from the one they already own.

50985_Polk Luxury_Bro.indd 150985_Polk Luxury_Bro.indd 1 1/30/12 12:27 PM1/30/12 12:27 PM

Inside SpreadPanel 1-left Panel 2/MiddlePanel 3 - Right

ABOUT THE STUDYIt is widely accepted that luxury brands enjoy the highest rates of customer loyalty in the automotive industry. But what motivates high loyalty among this segment, and what causes luxury buyers to defect to other luxury brands? These are the key questions about luxury car buying behavior that the 2012 New Luxury Vehicle Loyalty Study seeks to answer. Specifically:

WHY DO DEFECTORS LEAVE FOR ANOTHER LUXURY BRAND?Price, body style, and brand affinity are the top three reasons defectors choose a different brand. There was very little difference among the reasons for defection between men and women.

The six makes that comprise the study are considered premium luxury brands and tend to have strong overall images. However, notable strengths about each brand emerged during the study based on the perception of their drivers.

WHY DO LOYALISTS STAY WITH THEIR BRAND?According to the study, brand affinity and quality/reliability are the top reasons loyalists stay with their brand.

Of all the reasons cited for brand loyalty, significantly more females stay loyal to a luxury brand because they are loyal to a dealership. Vehicle safety also ranks significantly higher among women versus men. On the other hand, significantly more males than females stay loyal to a luxury brand due to value/special financing. When loyalty is analyzed by age group, age 55+ have a strong affinity for the brand and are more likely to stay loyal as a result, whereas younger luxury vehicle owners are more likely to remain loyal due to quality/reliability.

*2011

*

54% Mercedes-Benz

51% BMW

46% Lexus

45% Cadillac

42% Audi

41% Acura

buyers toward six core luxury brands:

TOP BRAND PERCEPTIONS AMONG LOYALISTS

OVERALL TOP FIVE REASONS CAR BUYERS STAY LOYAL

*Brand Affinity reasons include: “good past brand experience,” “always buy this brand,” “like the brand/better brand,” “trust the brand,” “customer service–brand,” “brand reputation,” “stand behind the brand.”

TOP REASONS FOR LOYALTY BY BRANDDifferent brands appeal to loyalists for different reasons. Understanding what loyalists value most about their brand of choice is important for retaining existing customers and attracting new ones. Among the “top five” overall reasons that car buyers stay loyal to a luxury brand, the charts below demonstrate how each brand compares to one another as well as to the combined total of all loyalists who participated in the study.

For example, 44% of all survey respondents stated they are loyal to their brand because they have an affinity for the brand. While brand affinity ranks high among all the makes, it ranks significantly higher among one brand’s customers versus the other brands in the study. Furthermore, this is a pattern that emerges for each of the “Overall Top Five Reasons Car Buyers Stay Loyal.” For each reason, a different brand rises to the top of the category, revealing a compelling and unique strength that differentiates the brand.

BRAND AFFINITY

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

44%

34%

43%47%

53%

42% 43%

QUALITY/RELIABILITY

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

33%

22%

32% 31%

40%

34%39%

PRICE/FINANCE/VALUE

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

16%

10%7%

20%

31%

17%

11%

DRIVING PERFORMANCE

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

24%

20%

30%

24%

33%

21%21%

IMPLICATIONSIt is important for luxury manufacturers, agencies, and dealers to closely monitor the behaviors their owners exhibit in choosing their next vehicle, but just understanding conquest and defection patterns is not enough. Understanding the brand-specific reasons why owners stay or leave a brand can uncover opportunities to take advantage of and threats to mitigate. It is equally important to monitor shopping behaviors before a purchase so that competitive sets can be identified and consideration patterns and trends can be acted upon. For example, these insights may impact advertising messages around value, quality, price, performance, and service as well as reveal conquest advertising needs.

Additionally, dealership loyalty ranked within the top seven reasons for all brands in the study, ultimately revealing that the dealership can play a significant role in a customer’s loyalty to the brand. Therefore, dealers and manufacturers should consider working closely together to scrutinize existing loyalty programs and/or explore opportunities to develop new ones as needed.

Acura owners consider the brand to be a good value for the money.

Audi drivers note good fuel economy for the brand as a significant strength.

Cadillac is perceived to have unique technology by its drivers.

Mercedes-Benz owners perceive the brand as “prestigious.”

BMW is perceived to have high-performance vehicles and high innovation among owners.

Lexus is perceived to have strong resale value among owners.

TOP FIVE REASONS SHOPPERS LEAVEBrand Affinity3Price/Finance/Value 1

4 Time to Change

2 Body Style

5 Driving Performance

Brand Affinity* 1

Driving Performance3

Price/Finance/Value 4

Styling/Design5

Quality/Reliability 2

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

16%19%

14% 13%

25%

11%

20%

STYLING/DESIGN

% BUYERS LOYAL TO BRAND

50985_Polk Luxury_Bro.indd 250985_Polk Luxury_Bro.indd 2 1/30/12 12:27 PM1/30/12 12:27 PM

Inside SpreadPanel 1-left Panel 2/MiddlePanel 3 - Right

ABOUT THE STUDYIt is widely accepted that luxury brands enjoy the highest rates of customer loyalty in the automotive industry. But what motivates high loyalty among this segment, and what causes luxury buyers to defect to other luxury brands? These are the key questions about luxury car buying behavior that the 2012 New Luxury Vehicle Loyalty Study seeks to answer. Specifically:

WHY DO DEFECTORS LEAVE FOR ANOTHER LUXURY BRAND?Price, body style, and brand affinity are the top three reasons defectors choose a different brand. There was very little difference among the reasons for defection between men and women.

The six makes that comprise the study are considered premium luxury brands and tend to have strong overall images. However, notable strengths about each brand emerged during the study based on the perception of their drivers.

WHY DO LOYALISTS STAY WITH THEIR BRAND?According to the study, brand affinity and quality/reliability are the top reasons loyalists stay with their brand.

Of all the reasons cited for brand loyalty, significantly more females stay loyal to a luxury brand because they are loyal to a dealership. Vehicle safety also ranks significantly higher among women versus men. On the other hand, significantly more males than females stay loyal to a luxury brand due to value/special financing. When loyalty is analyzed by age group, age 55+ have a strong affinity for the brand and are more likely to stay loyal as a result, whereas younger luxury vehicle owners are more likely to remain loyal due to quality/reliability.

*2011

*

54% Mercedes-Benz

51% BMW

46% Lexus

45% Cadillac

42% Audi

41% Acura

buyers toward six core luxury brands:

TOP BRAND PERCEPTIONS AMONG LOYALISTS

OVERALL TOP FIVE REASONS CAR BUYERS STAY LOYAL

*Brand Affinity reasons include: “good past brand experience,” “always buy this brand,” “like the brand/better brand,” “trust the brand,” “customer service–brand,” “brand reputation,” “stand behind the brand.”

TOP REASONS FOR LOYALTY BY BRANDDifferent brands appeal to loyalists for different reasons. Understanding what loyalists value most about their brand of choice is important for retaining existing customers and attracting new ones. Among the “top five” overall reasons that car buyers stay loyal to a luxury brand, the charts below demonstrate how each brand compares to one another as well as to the combined total of all loyalists who participated in the study.

For example, 44% of all survey respondents stated they are loyal to their brand because they have an affinity for the brand. While brand affinity ranks high among all the makes, it ranks significantly higher among one brand’s customers versus the other brands in the study. Furthermore, this is a pattern that emerges for each of the “Overall Top Five Reasons Car Buyers Stay Loyal.” For each reason, a different brand rises to the top of the category, revealing a compelling and unique strength that differentiates the brand.

BRAND AFFINITY

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

44%

34%

43%47%

53%

42% 43%

QUALITY/RELIABILITY

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

33%

22%

32% 31%

40%

34%39%

PRICE/FINANCE/VALUE

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

16%

10%7%

20%

31%

17%

11%

DRIVING PERFORMANCE

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

24%

20%

30%

24%

33%

21%21%

IMPLICATIONSIt is important for luxury manufacturers, agencies, and dealers to closely monitor the behaviors their owners exhibit in choosing their next vehicle, but just understanding conquest and defection patterns is not enough. Understanding the brand-specific reasons why owners stay or leave a brand can uncover opportunities to take advantage of and threats to mitigate. It is equally important to monitor shopping behaviors before a purchase so that competitive sets can be identified and consideration patterns and trends can be acted upon. For example, these insights may impact advertising messages around value, quality, price, performance, and service as well as reveal conquest advertising needs.

Additionally, dealership loyalty ranked within the top seven reasons for all brands in the study, ultimately revealing that the dealership can play a significant role in a customer’s loyalty to the brand. Therefore, dealers and manufacturers should consider working closely together to scrutinize existing loyalty programs and/or explore opportunities to develop new ones as needed.

Acura owners consider the brand to be a good value for the money.

Audi drivers note good fuel economy for the brand as a significant strength.

Cadillac is perceived to have unique technology by its drivers.

Mercedes-Benz owners perceive the brand as “prestigious.”

BMW is perceived to have high-performance vehicles and high innovation among owners.

Lexus is perceived to have strong resale value among owners.

TOP FIVE REASONS SHOPPERS LEAVEBrand Affinity3Price/Finance/Value 1

4 Time to Change

2 Body Style

5 Driving Performance

Brand Affinity* 1

Driving Performance3

Price/Finance/Value 4

Styling/Design5

Quality/Reliability 2

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

16%19%

14% 13%

25%

11%

20%

STYLING/DESIGN

% BUYERS LOYAL TO BRAND

50985_Polk Luxury_Bro.indd 250985_Polk Luxury_Bro.indd 2 1/30/12 12:27 PM1/30/12 12:27 PM

Inside SpreadPanel 1-left Panel 2/MiddlePanel 3 - Right

ABOUT THE STUDYIt is widely accepted that luxury brands enjoy the highest rates of customer loyalty in the automotive industry. But what motivates high loyalty among this segment, and what causes luxury buyers to defect to other luxury brands? These are the key questions about luxury car buying behavior that the 2012 New Luxury Vehicle Loyalty Study seeks to answer. Specifically:

WHY DO DEFECTORS LEAVE FOR ANOTHER LUXURY BRAND?Price, body style, and brand affinity are the top three reasons defectors choose a different brand. There was very little difference among the reasons for defection between men and women.

The six makes that comprise the study are considered premium luxury brands and tend to have strong overall images. However, notable strengths about each brand emerged during the study based on the perception of their drivers.

WHY DO LOYALISTS STAY WITH THEIR BRAND?According to the study, brand affinity and quality/reliability are the top reasons loyalists stay with their brand.

Of all the reasons cited for brand loyalty, significantly more females stay loyal to a luxury brand because they are loyal to a dealership. Vehicle safety also ranks significantly higher among women versus men. On the other hand, significantly more males than females stay loyal to a luxury brand due to value/special financing. When loyalty is analyzed by age group, age 55+ have a strong affinity for the brand and are more likely to stay loyal as a result, whereas younger luxury vehicle owners are more likely to remain loyal due to quality/reliability.

*2011

*

54% Mercedes-Benz

51% BMW

46% Lexus

45% Cadillac

42% Audi

41% Acura

buyers toward six core luxury brands:

TOP BRAND PERCEPTIONS AMONG LOYALISTS

OVERALL TOP FIVE REASONS CAR BUYERS STAY LOYAL

*Brand Affinity reasons include: “good past brand experience,” “always buy this brand,” “like the brand/better brand,” “trust the brand,” “customer service–brand,” “brand reputation,” “stand behind the brand.”

TOP REASONS FOR LOYALTY BY BRANDDifferent brands appeal to loyalists for different reasons. Understanding what loyalists value most about their brand of choice is important for retaining existing customers and attracting new ones. Among the “top five” overall reasons that car buyers stay loyal to a luxury brand, the charts below demonstrate how each brand compares to one another as well as to the combined total of all loyalists who participated in the study.

For example, 44% of all survey respondents stated they are loyal to their brand because they have an affinity for the brand. While brand affinity ranks high among all the makes, it ranks significantly higher among one brand’s customers versus the other brands in the study. Furthermore, this is a pattern that emerges for each of the “Overall Top Five Reasons Car Buyers Stay Loyal.” For each reason, a different brand rises to the top of the category, revealing a compelling and unique strength that differentiates the brand.

BRAND AFFINITY

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

44%

34%

43%47%

53%

42% 43%

QUALITY/RELIABILITY

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

33%

22%

32% 31%

40%

34%39%

PRICE/FINANCE/VALUE

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

16%

10%7%

20%

31%

17%

11%

DRIVING PERFORMANCE

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

24%

20%

30%

24%

33%

21%21%

IMPLICATIONSIt is important for luxury manufacturers, agencies, and dealers to closely monitor the behaviors their owners exhibit in choosing their next vehicle, but just understanding conquest and defection patterns is not enough. Understanding the brand-specific reasons why owners stay or leave a brand can uncover opportunities to take advantage of and threats to mitigate. It is equally important to monitor shopping behaviors before a purchase so that competitive sets can be identified and consideration patterns and trends can be acted upon. For example, these insights may impact advertising messages around value, quality, price, performance, and service as well as reveal conquest advertising needs.

Additionally, dealership loyalty ranked within the top seven reasons for all brands in the study, ultimately revealing that the dealership can play a significant role in a customer’s loyalty to the brand. Therefore, dealers and manufacturers should consider working closely together to scrutinize existing loyalty programs and/or explore opportunities to develop new ones as needed.

Acura owners consider the brand to be a good value for the money.

Audi drivers note good fuel economy for the brand as a significant strength.

Cadillac is perceived to have unique technology by its drivers.

Mercedes-Benz owners perceive the brand as “prestigious.”

BMW is perceived to have high-performance vehicles and high innovation among owners.

Lexus is perceived to have strong resale value among owners.

TOP FIVE REASONS SHOPPERS LEAVEBrand Affinity3Price/Finance/Value 1

4 Time to Change

2 Body Style

5 Driving Performance

Brand Affinity* 1

Driving Performance3

Price/Finance/Value 4

Styling/Design5

Quality/Reliability 2

TOTAL ACURA AUDI BMW CADILLAC LEXUS MERCEDES-BENZ

16%19%

14% 13%

25%

11%

20%

STYLING/DESIGN

% BUYERS LOYAL TO BRAND

50985_Polk Luxury_Bro.indd 250985_Polk Luxury_Bro.indd 2 1/30/12 12:27 PM1/30/12 12:27 PM

Front/Cover PanelBack Panel

© 2012 AutoTrader.com, Inc., All Rights Reserved. “AutoTrader,” “AutoTrader Classics,” “AutoTraderClassics.com,” and the AutoTrader Classics logo are trademarks or registered trademarks of TPI Holdings, Inc., all used under exclusive license.

NEW LUXURY VEHICLELOYALTY STUDY

A total of 1,485 “Loyalists” and “Defectors” among six luxury brands were interviewed (Acura, Audi, BMW, Cadillac, Lexus, and Mercedes-Benz) via telephone survey from September 2011 through November 2011. Loyalty data for the study was derived from Polk household loyalty data, which leverages registration information from June 2010 to May 2011.

METHODOLOGY

LUXURY LOYALIST:A luxury new vehicle buyer/household that purchases a replacement vehicle or an additional vehicle from the same luxury brand that they already own.

LUXURY DEFECTOR: A luxury new vehicle buyer/household that purchases a replacement vehicle or an additional vehicle from a luxury brand different from the one they already own.

50985_Polk Luxury_Bro.indd 150985_Polk Luxury_Bro.indd 1 1/30/12 12:27 PM1/30/12 12:27 PM

Front/Cover PanelBack Panel

© 2012 AutoTrader.com, Inc., All Rights Reserved. “AutoTrader,” “AutoTrader Classics,” “AutoTraderClassics.com,” and the AutoTrader Classics logo are trademarks or registered trademarks of TPI Holdings, Inc., all used under exclusive license.

NEW LUXURY VEHICLELOYALTY STUDY

A total of 1,485 “Loyalists” and “Defectors” among six luxury brands were interviewed (Acura, Audi, BMW, Cadillac, Lexus, and Mercedes-Benz) via telephone survey from September 2011 through November 2011. Loyalty data for the study was derived from Polk household loyalty data, which leverages registration information from June 2010 to May 2011.

METHODOLOGY

LUXURY LOYALIST:A luxury new vehicle buyer/household that purchases a replacement vehicle or an additional vehicle from the same luxury brand that they already own.

LUXURY DEFECTOR: A luxury new vehicle buyer/household that purchases a replacement vehicle or an additional vehicle from a luxury brand different from the one they already own.

50985_Polk Luxury_Bro.indd 150985_Polk Luxury_Bro.indd 1 1/30/12 12:27 PM1/30/12 12:27 PM