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Customer LoginsPremium and mainstream vehicle owners exhibit contrasting purchasing patterns
In four of the past five years, owners of premium vehicles have been more likely to acquire another same-make vehicle in the fourth quarter than during any other time of the year. Given the intense incentive activity at the end of the calendar years, driven by a focus on attaining year-end sales objectives, this timing makes sense. What is less intuitive, though, is the fact that mainstream buyers do not exhibit the same purchase pattern. Rather, in each of the past five years owners of mainstream vehicles have been most likely to acquire another same-make vehicle in the first quarter of the year.
IHS Automotive new vehicle registration data at the segment and make levels support these findings. Four key premium segments, including midsize CUV, compact CUV, midsize car and compact car, all display similar fourth-quarter peaks in owner loyalty; six mainstream categories, including the same four mentioned for the premium space as well as full-size half-ton pickup and midsize SUV, all consistently peak in the first quarter in brand loyalty as well. At the make level, three high-volume mainstream makes, including Ford, Chevrolet and Nissan, all clearly peak in make loyalty in the first quarter of the year. Nissan's fiscal year ends in March, which explains why its loyalty results peak at that time, but Chevrolet and Ford both use a normal calendar year for sales and financial reporting.
Lastly, these purchase patterns are supported by lease penetration data; households who originally leased a mainstream product are most likely to return to market in the first quarter of the year, driving up the loyalty results in those same quarters. And, among mainstream purchasers (rather than lessees), make loyalty peaked in the first quarter in two of the past four years.
All these data suggest purchasing patterns of luxury and mainstream customers differ significantly, at least in regard to loyalty patterns during the calendar year. These results can be used to more efficiently market to households with premium as well as mainstream vehicles in the garage.
Tom Libby is Manager, Loyalty Solutions and Industry Analysis, IHS Automotive
Posted 15 April 2016