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Middleof the roadAn analysis of US consumer perception towards the automotive sector
2
ContentsIntroduction........................................................................................3
Ad Awareness and Purchase Consideration ..............4
Car makers with highest Impression scores ..............6
Car makers with the highest Quality scores ...............7
Car markers with the highest Recommendation
scores............................................................................................9
Popular luxury cars ............................................................. 10
Popular car models around the US .............................. 11
Rankings
Electric vehicles.....................................................................12
SUVs and CUVs .......................................................................15
Car-buying by gender .........................................................18
Consumer segments
Tesla.. ......................................................................................... 22
Buying foreign versus American-made. ....................26
Case studies
Key Findings ..................................................................................... 30
About YouGov....................................................................................29
Introduction
3
A century ago, the mass-manufacturing of automobiles disrupted American life. It forever changed the way people conduct business and transformed locomotion into a personal experience.
The automotive industry revitalized the American economy in the early half of the 20th century. In the US today, the sector accounts for more than 8 million jobs. Cars have been around for awhile now but remain an evolving technology. The digitalization of automotive features today allows for some exceptional capabilities – including smartphone integrations, assisted turning and driving features, and automatic parking.
As eyes turn to where the automotive industry will go next, look again to technological trends to point the way. Concerns over climate change have more consumers considering electric vehicles, and these people are particularly tuned-in to automakers’ plans to go all-electric. Volvo and Chevrolet have already announced their intentions and saw an uptick in Impression as a result.
Larger cars, especially sports utility vehicles, have been popular in the last few years. In fact, while sales for sedans and coupes are currently declining, SUVs and pickup trucks this year saw a boost. Data from YouGov Profiles, a consumer segmentation tool, points to three key groups who may be spurring the uptick in sales for SUVs – boomers, people starting families, and women.
This report relies on YouGov BrandIndex to show which brands fare well across a range of brand health metrics. Particularly in the car industry, car makers whose ads do well in attracting the attention of in-market consumers end up high on the list when it comes time to consider which automakers to buy from.
The white paper later moves to explore an idea that has proved contentious, particularly in today’s political climate. While a vast majority of Americans say they buy American-made products when they can, does that same logic apply to car-buying? YouGov also looks at how the debate to buy domestic or foreign vehicles plays out for two dominate car makers – Toyota and Ford.
Ad Awareness and Purchase Consideration
ACCORDING TO THOSE IN-MARKET FOR A CAR OR TRUCK
4
Car ads are big business: the automotive industry spent $15.2 billion nationwide on ads in 2017, effectively clinching the top spend spot above the retail ($13.3 billion) and medicine ($10 billion) categories. With such a focus on advertising, which automakers are best at attracting the attention of the 19% of Americans who are currently in-market to buy a car?
Toyota comes in first, with 37% of the in-market group saying they’ve seen one of the car maker’s ads in the last two weeks. Ford (36%) and Chevrolet (35%) are close on the Japanese automaker’s trail, and are followed at a distance by Honda (27%) and Jeep (25%).
1
2
4
3
5
37
36
35
27
25
Car makers with the highest Ad Awareness
Which of the following car makers have you seen an advertisement for in the last two weeks?
Asked of US adults who report that they are ‘likely’ or ‘very likely’ to buy a car or truck in the next 12 months (%)
Rank Car maker Score
5
The aforementioned brands all do well in capturing the attention of at least a quarter of people looking to buy a car or truck. Their advertising efforts appear to translate well at a pivotal point in a buyer’s journey – the moment they decide which brands they will consider purchasing from.
As a measure indicative of potential future revenue, Purchase Consideration is highest for Toyota (33%), followed again by Ford (28%), Chevrolet (27%), and Honda (26%). Nissan (19%), which trailed Jeep in Ad Awareness, but actually beats out the brand in Consideration.
Ad Awareness and Purchase Consideration
1
2
4
3
5
33
28
27
26
19
Rank Car maker Score
Car makers with the highest Purchase Consideration
When you are in market next to purchase a car or truck, from which of the following would you consider purchasing?Asked of US adults who report that they are ‘likely’ or ‘very likely’ to buy a car or truck in the next 12 months (%)
Car makers with thehighest Impression scores
ACCORDING TO PARENTS WHO SAY CAR SAFETY AFFECTS THEIR PURCHASE DECISION
6
Parents who consider car safety in their purchase decision make up 12% of the US population (market size of ~30 million). Japanese car makers boast some of the highest Impression scores among these parents, taking four out of the five top spots. Chevrolet enjoys the third highest Impression score ranking and is the only American manufacturer to crack the top five. This metric is a measure of brand image and may be a reflection of the cars parents trust their kids in the most.
Car makers with the highestImpression scores
1
2
4
3
5
49
46
37
31
31
Of which of the following car makers do you have a positive impression? Now which of the following car makers do you have an overall negative impression?Impression scores range from -100 to +100 (% positive - % negative).Asked of parents with children under the age of 18 who say ‘safety’ factors into their purchase decision
Rank Car maker Score
Car makers with the highest Quality scores
ACCORDING TO EARLY TECH ADOPTERS
7
Cars are an evolving platform for technology. At one point in time, the introduction of power steering, car radios, and anti-lock brake systems were viewed by the masses as technological marvels. Today, car technology tends to trend towards being ”smarter”, more connected, and to some extent, autonomous.
Some Americans prove very receptive to new technologies, particularly the 19% who say they are always first among their friends to know about and try new technology. These early tech adopters are more likely than the general population to consider adding technological features such as automatic parking, turning assistance, and smartphone integrations to a car.
Early tech adopters rank luxury car makers such as BMW, Mercedes, and Lexus highly in their perception of Quality. The fact that two mainstream car makers – Toyota and Honda – make the list proves that there’s more to a car’s quality than its price tag.
“I am often among one of the first of my friends to try new technology products and services”
19%
1
2
4
3
5
38
35
31
31
30
Which of the following car makers do you think represents good quality? Now which of the following car makers represents poor quality?
Quality scores range from -100 to +100 (% positive - % negative).
Asked of early adopters of technology
Rank Car maker Score
Car makers with the highest Quality scores
of Americans say,
8
Car makers with the highest Quality scoresACCORDING TO EARLY TECH ADOPTERS
When buying a new or second-hand car, which, if any, of the following features would you consider adding? Please select all that apply.
Early tech adopters Nat rep
Turning assistant10%
7%
19%
14%
9%
6%
14%
10%
12%
9%
10%
7%
26%
22%
14%
13%
15%
12%
14%
11%
12%
10%
7%
5%
7%
6%
11%
10%
Touchscreen/Unified multimedia control
interface
Autonomous driving
Advanced driver assistance systems
Hybrid drive
Electric car
Hydrogen fuel cell vehicle
Biofuel engine
Plug-in hybrid drive
Smartphone integration (CarPlay/
Android Audio)
Automatic parking
Emergency telemetrics (eCall/
OnStar)
Driver drowsiness detection
Traffic sign recognition/intelligent
speed adaptation
Car makers with the highest Recommend scores
ACCORDING TO THE CAR MAKERS CUSTOMERS
9
A customer’s account of their experience can be a powerful predictor of business growth. Brands that are able to make their customers happy also have a chance to turn them into brand evangelists. That is, happy customers may often put friends, colleagues, and family onto a brand through their positive review and endorsement of it.
Toyota and Honda customers, for example, are the most likely to recommend the respective brands to others. In fact, the two Japanese automakers are parent brands of two other car makers that come highly recommended: Lexus (Toyota) and Acura (Honda).
Car makers with the highest Recommend scores
1
2
4
3
5
66
66
60
59
54
Rank Car maker Score
Which of the following car makers would you recommend to a friend or colleague? And which of the following car makers would you tell a friend or colleague to avoid?Recommend scores range from -100 to +100 (% positive - % negative).
Asked of customers of the car makers
Popular car modelsACCORDING TO THOSE IN-MARKET
TO SPEND OVER $25K ON A NEW CAR
10
Car models preferred by buyers willing to spend more than $25k
hold a strongly positive opinion
38%vs 29% nat rep
Did you know? The Toyota Camry is one of the top three most popular cars overall among prospective car buyers willing to spend more than $25k.
1
2
4
3
5
42
40
34
36
37
Rank Car model Target group
Please tell us what you think of the following car models…
% of those in-market to spend more than $25,000 on a new car (target group) and of Nat Rep who have a ‘strongly positive’ opinion of the following models…
22
21
18
20
20
Nat rep
6
5
5
5
5
Z-score
BMW 5 Series
Audi A5
Audi A3
BMW X3
Audi Q7
A car’s make isn’t the only consideration that impacts a prospective customer’s decision to buy. Whether it be a coupe, sedan, hatchback, or SUV, a car’s model must suit the buyer’s lifestyle and needs. According to YouGov Ratings, which provides a nationally representative popularity score for thousands of things, those in-market to spend at least $25,000 on a new car are more likely to rate certain models higher than the rest of the US population.
German-made luxury cars tend to be more popular with this in-market group. Audi, in particular, takes three of the five spots with their A3 (luxury small car), A5 (luxury small car), and Q7 (luxury midsize SUV) models. The BMW 5 series (luxury midsize sedan), with a manufacturer’s suggested retail price starting at $53,400, takes the top rank .
The chart is sorted by z-score, which is the statistical measure of significance for the differences between two groups.
Popular car modelsaround the US
ACCORDING TO REGIONAL PREFERENCES
11
America’s exceptional diversity extends to its perception of cars. Just as different parts of America are home to various accents, mannerisms, and climates, each geographical region has a car model that tends to be more popular there than compared to other parts of the US.
For example, people living in East North Central (i.e. Michigan) and East South Central (i.e. Alabama) are more likely to have a ‘strongly positive’ perception of American-made cars like the Chevrolet Malibu or Ford Edge. The Model 3, which Tesla builds at its Gigafactory in Nevada, tends to be more popular among those who live in the Mountain region.
Popular car models by region
Model 3
A7
A6
Optima
The data shows that there are some regional variations in ‘strongly positive’ perception of car models. This map of the US demonstrates what makes each region “unique” in terms of their perception of car models.
It shows which car models are significantly more popular in one region compared to the nation overall.
Encore
Malibu
Edge Civic
MKZ
Electric vehiclesHOW PLANS TO GO ELECTRIC HELP
BOOST A CAR BRAND’S IMAGE
12
General Impression scores rise after announcing plans to go all-electric
Volvo Impression: Nat Rep
Chevrolet Impression: Nat Rep
6/2017
35
Volvo Impression: those considering an electric vehicle
Chevrolet Impression: those considering an electric vehicle
30
25
20
15
10
5
08/2017 10/2017 12/2017 2/2018 4/2018
Autonomous, self-driving cars may one day be the future of driving but automotive giants are readily placing stock in another technology over the coming years. The route to an all-electric future appears simpler to navigate; companies like Volvo and General Motors have both announced plans to be diesel- and gasoline-free and this type of news tends to have a pronounced effect among people considering an electric vehicle (EV).
Both Volvo and Chevrolet enjoyed an uptick in general Impression (a measure of brand image) days after they declared their commitment to an all-electric future. Volvo’s announcement, for example, led to minute changes among the general public but among those who were considering an electric vehicle, Impression soared to a score of +37, marking an 11-point improvement from the day the brand made the news public.
Chevrolet saw an even more dramatic effect; the brand’s announcement actually helped its Impression score among EV considerers catch up to Chevrolet’s already-high Impression score among the general public. The brand peaked after a 14-point improvement among those considering an electric vehicle.
Volvo announces plans to be all-electric by 2019
GM announces plan to go all-electric
13
Electric vehiclesWHO ARE THE PEOPLE THAT WOULD CONSIDER AN ELECTRIC VEHICLE?
One in nine Americans who hold a driver’s license (11% – a market size of about 21 million) say they would consider an electric vehicle (EV) when buying a new or used car. The increasing number of car manufacturers dedicating resources to the development of electric vehicles is a reflection of that demand.
While the EV market is still in its infancy, accounting for just a 1% share of all auto sales in 2017, an early understanding of who the potential EV customer is can lead to insights on how to best reach that audience. Compared to those with a driver’s license, EV considerers tend to earn more, identify as Democrat, and say they are concerned over the environment. Their progressive views also extend to other social issues.
Are aged 25 to 44 years old.
53%
Contribute to a household that earns more than $60,000
Identify as Democrat
Say climate change is a top issue
Those considering an electric vehicle are more likely to...
And are more likely to agree with...
“We should drive less to save the environment”
78% vs 54% of all driver’s license holders
“Across history, religion has done more bad than good”
65% vs 41% of all driver’s license holders
“The federal government should make sure everyone has health insurance”
78% vs 60% of all driver’s license holders
“I don’t mind paying more for organic food”
59% vs 40% of all driver’s license holders
vs 40% of all driver’s license holders
43%vs 32% of all driver’s license holders
42%vs 35% of all driver’s license holders
53%vs 26% of all driver’s license holders
14
Electric vehiclesCONSUMER HABITS OF EV CONSIDERERS
There are core demographic and attitudinal differences between EV considerers and other drivers but YouGov finds that their consumer habits vary drastically as well. For example, those considering an electric vehicle are nearly twice as likely to have leased a car compared to license holders overall.
Electric vehicle considerers All US driver’s license holders
11%
6%
Leasing their main car
As car consumers...
And can be reached via...
They are twice as likely to have leased a car
They are more motivated by the following purchase influencers
48%
14%
The vehicle’s impact on the environment
75%
59%
Gas mileage
49%
35%
Interior comfort
8%
At least one in nine own a...
13%
10%
Their cars run on the following fuel type
13%
2%
7%
4%
12%Electric Hybrid
Ads on podcasts and newspapers Podcasts they have a strongly positive perception of
Ted Talks
This American Life
All Things Considered
26%
9%
25%
9%
26%
11%
19%vs 15% of all driver’s license holders
Movie theatres
33%vs 29% of all driver’s license holders
Radio
20%vs 15% of all driver’s license holders
Printed magazines
25%vs 19% of all driver’s license holders
Billboards
54%vs 42% of all driver’s license holders
Online (e.g. apps)
21%vs 10% of all driver’s license holders
Podcasts
SUVs and CUVsACCORDING TO THOSE PLANNING TO BUY A NEW MIDSIZE SUV/CUV IN THE NEXT TWELVE MONTHS
15
According to Bloomberg, sales of sedans, coupes, and sports cars continue to plunge for the third straight year. If things don’t pick up in 2019, US passenger car sales may fall to a thirty-year low comparable to sales in 2009 – the year new-vehicle deliveries were at a sector wide low and two major American automakers went through bankruptcy.
That’s not to say that all cars are flailing though; since 2009, sport utility vehicles (SUVs) have seen a steady uptick in sales. In 2016, the SUV officially supplanted passenger cars in total sales and continues to see growth through 2018. The evolution of the sport utility into the crossover utility vehicle (CUVs) is evidence of the direction automakers believe the preference for American cars is moving. The CUV comes close to the fuel-efficiency of a midsize sedan without sacrificing the cargo space found in an SUV. It may not be going off-road but there’s plenty of room for the needs of a suburban family.
Automotive experts point to two groups for the current climate: baby boomers who prefer larger cars and young Gen Xers who move to the suburbs to start a family. YouGov’s own data shows that the 3% of Americans who plan to buy a midsize SUV/CUV in the next year (market size of ~7.9 Americans) fits that very description.
Who in-market SUV buyers tend to be
Are 35-44 years old
23%vs 16% nat rep
Are 55-64 years old
22%vs 17% nat rep
Own a home
71%vs 52% nat rep
Live in a household that collectively earns $60k or more
54%vs 51% nat rep
Are married61%vs 44% nat rep
Have children under the age of 18
42%vs 29% nat rep
16
SUVs and CUVsCONTINUED
Understanding how those in-market for an SUV or CUV go about their car research helps in identifying the moments that automakers can potentially connect with the audience. While 37% of this in-market group say they don’t do any research online, that points to a majority (63%) who do, to some extent, read up on cars online. Potential SUV owners are especially likely to research on sites such as the car manufacturer’s website (37%), Car.com (23%), or Carmax.com (22%).
How to reach in-market SUV consumers
26%
14%
The gym
In a typical week, those in-market for a new SUV are nearly twice as likely to have gone to...
In-market for an SUV Nat rep
30%
14%
The movie theatre
34%
18%
Printed newspapers
And say that advertising on... would catch their attention
64%
51%
TV
31%
18%
Billboards
Websites used to research buying a new or second-hand car
Attitudes they tend to agree with
“I dont mind paying extra for quality”
91%vs 77% nat rep
“I look for profitable ways to invest money”
73%vs 52% nat rep
“My partner and I treat each other as equals”
82%vs 68% nat rep
“I value the opinion of experts when choosing products”
82%vs 68% nat rep
Car manufacturer’s website 37% vs 18%
nat rep
Cars.com 23% vs 13% nat rep
Carmax.com 22% vs 13% nat rep
Kbb.com 18% vs 11% nat rep
Autotrader.com 16% vs 13% nat rep
I don’t research buying a new/
second-hand car37% vs 53%
nat rep
17
SUVs and CUVsHOW THE IN-MARKET CROWD DIFFERS FROM OTHER DRIVERS
Compared to those who hold a driver’s license, those looking to buy a midsize SUV are more likely to say they would consider getting additional car features (87% vs. 70%). The feature they’re most interested in is a blind spot monitor. Other features they are more likely to consider include smartphone integration, a collision avoidance system, and pedestrian detection features.
The in-market SUV crowd is also significantly more likely than other drivers to have auto insurance with one in three reporting they either have comprehensive or collision coverage.
The group clearly expresses a willingness to pay for peace of mind and may be a mentality that car makers should consider.
Brands that they are more likely to prefer (YouGov Ratings)Household goods and personal care
• Blue Buffalo• Dove• Beggin’ Strips• Gillette• Right Guard
Skincare
• Estee Lauder• Aveeno & Aveeno Baby• Neutrogena• Clarins• Ulta Beauty
Apparel and shoes
• Polo Ralph Lauren• Under Armour• Nautica• Nike• Anne Klein
Snacks• Wheat Thins• Baked Lay’s• Fritos• Nature Valley• Kettle Brand Chips
TV networks• History Channel• Bravo• Bloomberg Television• The Golf Channel• HGTV
Online brands• eBay• Netflix• iHeartRadio• WhatsApp• Atom Tickets
Car features to consider adding to car
Car insurance coverage typeComprehensive (i.e., coverage which pays for damages to your vehicle resulting from anything other than a collision, e.g. theft, vandalism or contact with persons)
33%vs 21% nat rep
38%31%Blind spot monitor
37%25%
Smartphone integration
35%24%
Collision avoidance system
33%19%
Pedestrian detection
28%20%
Lane departure warning system
12%
30%None of these
Collision coverage (i.e., coverage which reimburses you for any damage sustained to your vehicle when you are at fault)29%
vs 23% nat rep
Medical payments (i.e., coverage that pays for reasonable medical expenses or death benefits to anyone covered under your policy in the event of an accident)
4%vs 2% nat rep
Car buyingby gender
18
Car type preferenceWhich, if any of the following types of car would you be most interested in purchasing next?
13%
8%Small SUV/CUV
6%3%Minivan/van
23%19%Midsize SUV/CUV
9%8%
Compact small sedan
8%
8%Large SUV/CUV
2%
2%Coupe
6%9%Large Sedan
17%20%
Midsize sedan
3%5%
Sports car
9%16%Pickup Truck
Women are significantly more likely to choose this type of car
There are no significant differences between men and women
Men are significantly more likely to choose this type of car
At a point when SUV sales far outpace that of sedans, brands may want to focus on appealing to a group that skews towards the vehicle type: in-market women. A look at vehicle preference shows that in-market women are significantly more likely than men to say they’re interested in small (13%) or midsized SUVs (23%) while men tend to prefer performance vehicles such as sports cars or trucks.
The seismic shift from sedans to SUVs represents an equally significant opportunity to reevaluate marketing tactics. Advertising for an SUV is certainly different from advertising for a sedan and since women are more interested in the former, should marketers do anything differently in their messaging towards women and men?
In-market women In-market men
19
Car buying by genderCONTINUED
Attitudes around automotive, by gender
This section will further explore in-market car buyers who have sole or joint responsibility for buying a car. In-market women who meet the group definition make up 7% of Nat Rep and turns out to be quite similar to the share of in-market men (8%).
When it comes to their attitudes around cars, in-market women are more likely than their male counterparts to make sure their car has the basics (e.g. air conditioning) or look for as many safety features as possible.
But more often than not, in-market men and women tend to agree on a range of attitudes surrounding the auto industry, including the idea of buying a vehicle that best suits the needs of a family.
Group definition
Men or women who say…
• They are ‘very likely’ or ‘likely’ to be in-market for a car or truck in the next twelve months
• They have sole or joint responsibility for buying cars
My car should be equipped with as many safety features as possibleWomen are significantly more likely to agree with this
There are no significant differences between men and women
Men are significantly more likely to agree with this
In-market women In-market men
I always look whether the basic version of a car has what I need (e.g. air conditioning)
I couldn’t live without a GPS in my car
Having a car that works well for the whole family is important to me
Everyone should have an emergency kit in their car
We should all drive less to save the environment
I would never drive an ugly car
MPG is the most important feature when buying a new car
I think foreign-made cars are better quality
I like to shop around for the best gas prices
I think public transport is gross
Electric cars are clearly the way of the future
I only buy American-made cars
I prefer to wash my car myself
I like a car with a powerful engine
I don’t need a mechanic - I can generally fix my car
I can definitely change a tire
93% | 77%
88% | 78%
95% | 92%94% | 92%60% | 59%
50% | 47%
47% | 48%65% | 69%54% | 57%68% | 72%
44% | 50%56% | 63%34% | 42%60% | 71%62% | 74%21% | 43%52% | 89%
20
Car buying by genderCONTINUED
Car buying considerations
When it comes to the car-buying experience as a whole, in-market women are more likely to reiterate that safety is a top purchase factor and were also more likely to say that gas mileage, insurance costs, and overall price were important to them. Men were more likely to say performance is a key factor in their purchase decision.
Again though, prospective car-buyers tend to agree on a number of points, regardless of gender. These shared purchase considerations include the convenience and reputation of a dealer, the size and space a vehicle offers, the built-in features that come standard, and even the vehicle’s impact on the environment. Car brands don’t necessarily have to change their tune when it comes to women and men since they both share many of the same concerns when it comes buying a car.
Which, if any, of the following do you consider when choosing which car to buy? Please select all that apply.
69%
59%Gas mileage
Women are significantly more likely to agree with this
There are no significant differences between men and women
Men are significantly more likely to agree with this
In-market women In-market men
Safety
Insurance costs
Overall price
Space and size of the vehicle
Warranty included at purchase
Interior comfort
Convenience of the dealer
Vehicle’s impact on the environment
Reputation of the dealer
Built-in features (e.g. air conditioning)
Image the vehicle portrays
Performance
57%
49%
56%53%
74%70%
32%
26%
35%32%
41%
39%
17%
15%
17%
16%
21%21%
46%45%
13%
14%
52%
57%
21
Car buying by genderCONTINUED
Reasons for choosing a fuel brandThinking about the brand you primarily use to purchase fuel, which of the following reasons, if any, describe why you choose that brand? If you do not have a primary brand, please think about your motivation for choosing where to purchase fuel. Please select all that may apply.
Gas mileage is an important consideration when buying a car. Among in-market women, it ranks second-highest among all purchase factors and women were more likely than men to say that gas mileage factors into their purchase decision. YouGov’s data goes even further to examine if men and women differ in how they fuel their cars.
When asked for the reasons why they choose certain gas station brands, in-market women were more likely than men to say that convenience of location and loyalty programs were their motivators for continuing to use that gas brand. Conversely, in-market men were more likely to be motivated by fuel quality and brand image. The two in-market groups tend to agree on other motivators including low prices, ease of access, and whether they like the convenience store on site.
As to the gas brands themselves, two stand out in the eyes of in-market women, according to YouGov Ratings. These women are more likely than their male counterparts to have a ‘strongly positive’ opinion of Shell and Valero.
In-market women In-market men
39%23%
23%14%
% who hold a ‘strongly positive’ opinion of...
43%
36%Convenient location (close to home, on
regular route)Women are significantly more likely to agree with
There are no significant differences between men and women
Men are significantly more likely to agree with
24%
18%
30%
37%
29%
40%
20%
16%
9%
7%
46%
44%
40%
42%
18%
20%
The brand has a good loyalty program
I like the convenience store on the same site
I had a discount voucher which gave me money off the pole sign price
Low prices on fuel
Easy in and out
Station facilities (e.g. carwash, air & water, ATM)
Brand I like or trust
High fuel quality
Case study: Tesla
22
Tesla is often credited with popularizing the electric car. Mass production of the Tesla Roadster in 2008 proved to the world that electric cars were no longer a gimmick and that a battery-powered vehicle can actually be a joy to drive.
Fast-forward to present day and Tesla stands out as an outlier within the US car industry. People tend to talk about Tesla more than a majority of car brands but just 5% of Americans say they would consider buying a vehicle from the brand. That marks a low Consideration score relative to its higher than average level of Word-of-Mouth Exposure.
WOM Exposure vs. Consideration
Consideration
WO
M E
xpo
sure
20
10
0 4020
23
Case study: TeslaCONTINUED
The rise and fall of Tesla’s Reputation and Impression scores
Through the years, Tesla’s efforts at brand-building helped the company reach a Reputation score that stayed consistently above the sector average. Tesla’s share prices trended upward throughout much of 2017 and in the beginning of 2018, in anticipation of the new Model 3 – Tesla’s attempt at a mass-market electric vehicle. This period coincides with an uptick in both Reputation and Impression scores for the car maker. Tesla’s good fortune took a turn for the worse by April when a string of incidents set off a decline in both metrics and the electric vehicle has yet to recover from it.
Tesla’s bad news came all at once. At the end of March, Tesla recalled over 100,000 Model S vehicles over a flawed power steering component. Not soon after, a Model X was involved in a fatal crash while its Autopilot feature was activated. Just two days after the crash, Tesla’s CEO Elon Musk tweeted an April Fool’s joke stating the company was bankrupt. All of this in conjunction with the production issues delaying the Model 3’s mass release at the time may have contributed to Tesla’s declining brand image.
In April 2018, news of slowed Model 3 production and fatal Model X crash breaks; Elon Musk releases “bankruptcy” tweet
Tesla’s Impression Tesla’s Reputation Sector average’s Impression Sector average’s Reputation
10/2016
5
0
10/2018
10
15
20
25
10/2017
24
Case study: TeslaCONTINUED
Tesla’s Consideration drops among key audience
Narrowing the focus to a previously discussed group – those who would consider buying an electric car – shows that Tesla’s string of incidents in March and April had an impact on this key audience’s Consideration for the brand. Before Tesla’s decline beginning in April, three in ten (30%) people considering an electric car said they would consider buying from Tesla but by June, just 21% reported the same. There is some good news for Tesla though; its Consideration score among the general public remains low but among those considering an electric vehicle, Consideration seems to have stabilized from July through October.
After surviving a trying year and finally delivering on production goals for its first mass-market vehicle, Tesla stunned everyone when it posted its 2018 third-quarter earnings. The car maker managed to turn a profit despite the delayed roll-out of the Model 3 and Elon Musk delivered on his pledge to guide the company back on track by the end of the year.
10/2016
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News of Model S recall and fatal Model X crash breaks; Elon Musk releases “bankruptcy” tweet
Tesla’s Consideration: Nat RepTesla’s Consideration: those who are considering an electric vehicle
10/2017
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Case study: TeslaCONTINUED
For some companies, it is difficult to disentangle their brand’s image from that of its leader. For good or for bad, CEOs sometime double as celebrities and in doing so, often affect their company’s reputation with their every movement. This idea aptly applies to Tesla’s Elon Musk.
The mercurial Elon Musk has often swayed public opinion of his company through his tweets, interviews, and actions. Currently, 21% of Americans have a ‘strongly positive’ perception of Tesla as a brand, according to YouGov Ratings. Just 14% of the general public say the same about Elon Musk. Those who harbor a ‘strongly positive’ opinion of Tesla (hereinafter referred to as “Tesla fans”), are significantly more likely than the general population to have a ‘strongly positive opinion of Elon Musk (38% vs. 14% of Nat Rep).
In the eyes of Tesla fans, Elon Musk can seemingly do little wrong. According to a YouGov Omnibus poll conducted earlier this year, an overwhelming majority (75%) of Tesla fans found it a sign of strong leadership and commitment to the job when Elon Musk slept overnight at his factory during the delayed production of the Model 3 (compared to 51% of Nat Rep).
What they think of Tesla
38%14%
21%Strongly positive
25%Slightly positive
30%Neutral
6%Slightly negative
5%Strongly negative
14%Not heard of
Among Nat Rep
What they think of Elon MuskTesla fan Nat Rep
Strongly positive
Slightly positive
Neutral
Slightly negative
Strongly negative
21%18%
12%
23%
1%
7%
2%
4%
26%
34%
Elon Musk, CEO of the electric automaker Tesla, recently stated that he is sleeping overnight at his factory to help with the production of his company’s latest car model. Which comes closest to your view about a boss sleeping overnight at work?
75%
51%
5%17%
4% 10% 17%22%
It’s a sign of strong leadership and
commitment to the job
It’s a sign that a leader is unorganized and not
running a company efficiently
Other Not sure
Buying foreign versus American-made
ACCORDING TO THOSE IN-MARKET FOR A CAR OR TRUCK
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If I have a choice, I buy American-made products
This may be linked to a perception of car quality: more than half (55%) of the in-market group believe that foreign cars offer better quality. This idea is further underscored by data from YouGov BrandIndex, which points to Toyota and Honda having the top two Quality scores among the in-market group.
Car makers with the highest Quality perception
1
2
4
3
5
46
39
36
36
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Which of the following car makers do you think represents good quality? Now which of the following car makers represents poor quality?Quality scores range from -100 to +100 (% positive - % negative). Asked of US adults who report that they are ‘likely’ or ‘very likely’ to buy a car or truck in the next 12 months (%)
Rank Car maker Score
I only buy American made cars
Agree
78%11% Disagree
Neither
41% 45%15%Agree Disagree
Neither
Consumers tend to care about where and how products are made and those in-market for a car this year are certainly no different. Politics has tinged views of the auto industry especially when it comes to where cars are manufactured. How do opinions of American-made and foreign-made cars play out in a climate where President Trump, with the intention of bringing back manufacturing jobs to the US, threatens to impose tariffs on foreign car imports?
YouGov’s data shows that at least three in four (78%) Americans in-market for a car say they would buy American-made products if given the choice. When it comes to buying a car though, just 41% of the in-market group say they only purchase from domestic brands.
11%
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Buying foreign versus American-madeCONTINUED
Ford and Toyota’s Quality and Value perception, 2013-2018
A look at two major automakers – one domestic and one foreign – through the years shows the steady decline of Ford and the gradual rise of Toyota. Examined through the lens of middle-funnel metrics like Quality and Value, Ford’s scores in 2013 were close to that of Toyota’s but the differences are much starker today.
For example, the Japanese automaker saw a Quality score of +40 in 2013 and improved to +41 by 2018. Ford saw a Quality score of +35 in 2013 but fell to a score of +22 by 2018, marking a 19-point gap in Quality at present between the American automaker and its Japanese counterpart. A similar observation can be made of the two brands’ Value perception through the years.
Ford Quality Ford Value Toyota Quality Toyota Value
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Buying foreign versus American-madeCONTINUED
Rounding out 2018, 14% of the in-market audience say they would purchase a car from Toyota. Ford, Chrevrolet, and Honda all trail with numbers similar to those in 2017. Notably, Ford sold a record-setting number of pick-up trucks in 2018 (909,330 units) – a 1.4% improvement from last year’s sales. As interest in sedans continues to decline, Ford may find an opening to improve its market share.
Purchase Intent for major automakers, 2013-2017
A lower-funnel metric like Purchase Intent, which indicates the brands someone is most likely to buy from, tells a similar story. In 2013, 16% of those in-market for a car or truck said they would buy from Ford. That score fell with every passing year while Toyota’s own Purchase Intent went up.
Purchase Intent for major automakers, 2018
Ford Chevrolet Toyota Honda
16%
10%11%
9%
15%
10%
12%
8%
13%11%
12%
8%
11%9%
12%
9%
12%11%
13%
9%
2013 2014 2015 2016 2017
Ford Chevrolet Toyota Honda
12%11%
14%
9%
2018
Key findings
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One automaker rises to the top across several measures of brand health. According to YouGov BrandIndex, Toyota leads all others in Ad Awareness and Purchase Consideration among prospective car buyers, Impression among parents who care about safety, Quality among tech adopters, and is the most likely to be recommended by its customer base.
Brand health rankings
Consumer segments
Case studies
A few trends will shape the future of the automotive industry in the upcoming years:
Those who are looking to spend more than $25,000 on a new car are more likely than the general public to have positive perception of German-made cars, according to YouGov Ratings.
The data also points to regional preferences for certain models of cars. Those who reside in America’s Rust Belt, for example, are more likely to prefer domestic cars like the Chevrolet Malibu or Ford Edge.
Identifying and isolating subsegments of the American population allows for a close look at attitudes and consumer habits that make these groups unique to the automotive industry.
Automakers that announce their plans to go all-electric tend to see a boost in Impression among people considering an electric vehicle. Their receptiveness to such news makes them a key audience and given their propensity to listen to podcasts, opportunities like TEDTalks, may be a marketing channel worth exploring.
SUVs are now more popular than sedans, thanks to Boomers who like larger cars and Gen Xers who are starting families of their own. Women in-market for a new vehicle are also another group whose preference for SUVs will be important to keep an eye on, especially as more have the sole responsibility for buying a car.
A majority of Americans say they try to buy American-made products but less than half apply that logic to car-buying. The perception that foreign cars offer better quality than American-made vehicles still holds strong. Toyota’s rise and Ford’s decline in recent years illustrates that point but Ford may be making up for lost ground this year.
Tesla’s brand image saw a decline through the first half of 2018 but a strong Q3 earnings report salvaged its brand health for the rest of the year.
About YouGov
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YouGov’s Plan & Track service combines the detailed audience segmentation power of YouGov Profiles with the brand tracking capabilities of YouGov BrandIndex. The segmentation and media planning elements run on data collected in the YouGov Cube – our connected data vault which holds 280,000 variables, collected from over 200,000 YouGov panelists in the United States.
The brand tracking portion of this service provides an authoritative measure of brand perception, monitoring thousands of brands across dozens of sectors. We interview thousands of consumers every day, yielding over 2 million interviews a year. This tool operates at national and international levels, allowing you to track brand perception in one country, compare across multiple countries or monitor a global picture.
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