Table of Contents
Executive Summary
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- Figure 1: Short, medium and longer term impact of COVID-19 on auto and Black consumers’ loyalty, April 2020
- Market overview
- Top takeaways
- Automotive loyalty and the Black consumer
- Black car buyers are almost always in the market . . .
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- Figure 2: Black consumers’ purchasing time frame, December 2019
- . . . but they’re not all shopping the same way
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- Figure 3: Blacks’ loyalty in automotive attitudinal segments, December 2019
- The issues
- COVID-19 hurts carmakers and car buyers
- Auto brands are failing to capture the loyalty of Black drivers
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- Figure 4: Post-purchase loyalty, Black vs White, December 2019
- Black consumers switch brands for advanced tech features
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- Figure 5: Reasons for switching auto brands, Black vs White, December 2019
- The opportunities
- A car is more than a car
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- Figure 6: Attitudes toward car culture, Black consumers indexed to total, December 2019
- Give the people what they want
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- Figure 7: Types of vehicles, Black vs White, December 2019
- What it means
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The Impact of COVID-19 on Black Consumers’ Loyalty in Automotive
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- What you need to know
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- Figure 8: Short, medium and longer term impact of COVID-19 on auto and Black consumers’ loyalty, April 2020
- Opportunities and threats
- Auto purchasing will be lower on Black consumers’ priorities
- Response to COVID-19 by automakers is geared toward the general market
- Multicultural outreach is likely to be cut from automaker consideration
- “Sea of sameness” means opportunity for automakers to stand out with something different
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- Figure 9: Black consumers’ attitudes toward automakers, indexed to White consumers, December 2019
- Automakers and dealerships need to show that they care
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- Figure 10: Kia’s Accelerate the Good Program | Supporting Homeless Youth During This Crisis, April 2020
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- Figure 11: Ford | Built to Lend a Hand, March 2020
- Automotive brands can challenge public transit
- Impact on the market
- US auto sales drastically affected by shelter-in-place mandates
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- Figure 12: Total vehicle sales (millions of units) seasonally adjusted annual rate, January 2000-March 2020
- Used car sales could help mitigate the slide in the short- to mid-term
- Price competition from ecommerce could erode what’s left of loyalty
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- Figure 13: Lincoln Remote Sales Experience: Home | Lincoln, April 2020
- While sales are down, needs for maintenance and repair services could strengthen customer relationships
- How the crisis will affect Black consumers
- Lower incomes means lower tolerance for financial stress
- COVID- 19 and the economic slowdown disproportionately impact Black adults
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- Figure 14: Employed persons by certain detailed healthcare, transportation and sales occupations, by race and Hispanic origin, 2019
- Black workers likely to face longer road ahead to financial recovery
- How a COVID-19 recession will reshape the automotive industry
- US auto industry impacted by global disruption to the supply chain
- Automakers are going to have to become more human
- Brands and dealerships will need to work together to digitize even more
- COVID-19: US context
The Market – What You Need to Know
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- The Black population is young and growing
- Loyalty comes from functionality
- Black consumers spend to stay in motion
- Built trust by building credit
The Black Population by the Numbers
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- The Black population is growing
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- Figure 15: Population by race, 2014-24
- Most Black people are under 35
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- Figure 16: Population by age, total and Black, 2019
- Black households earn less, auto purchases have greater impact on budgets
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- Figure 17: Median household income, by race and Hispanic origin of householder, 2018
- More than half of Blacks call the South home
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- Figure 18: Distribution of the Black population, by census region, 2018
Market Overview
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- The Black consumer experience in automotive
- Black car buyers know what they want . . .
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- Figure 19: Influences on perceptions of car brands, by total and Black, April 2019
- The cost of mobility
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- Figure 20: Household annual expenditures on transportation, by White and Black, 2018, Consumer Expenditure Survey, 2018
- The cost of vehicle ownership
- It’s all about the money
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- Figure 21: How Black consumers paid for their most recently acquired vehicle, indexed to all, October 2018-December 2019
- Not here for a good time, but definitely here for a long time
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- Figure 22: Black consumers’ length of finance plan or lease for their most recently acquired vehicle, indexed to all, October 2018-December 2019
- Trading trade wars
Driving Loyalty Behaviors – What You Need to Know
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- Trend Drivers help explain what Black drivers want
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- Figure 23: Mintel Global Trend Drivers
Driving Loyalty Behaviors
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- Assembling the automotive loyalty jigsaw puzzle
- Identity: Brands and consumers can empower each other
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- Figure 24: Ford: Built Phenomenally – Own It, January 2020
- Technology: Safety first, but not only
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- Figure 25: Chevrolet: A Family of SUVs, September 2019
- Value: Budget is best, but tough to beat
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- Figure 26: CarMax Haggle-Free Creative, March 2020
The Consumer – What You Need to Know
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- Automotive loyalty is hard to come by
- Reliability and affordability encourage repeat purchases
- New tech can prompt interest in switching
- A car is more than just a car
- Who’s behind the wheel?
Black Car Owners
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- Black households have (and need) fewer cars
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- Figure 27: Number of vehicles in household, Black vs total and White, December 2019
- Sedans are simple, standard, reliable – but getting harder to find
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- Figure 28: Types of vehicles in household, Black vs White, December 2019
- Foreign budget brands spark interest
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- Figure 29: Black consumers’ vehicle ownership, by brand, October 2018-December 2019
- Black consumers have one foot in the market
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- Figure 30: Black consumers’ purchasing time frame, December 2019
- Younger Black consumers are in-market
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- Figure 31: Black consumers’ purchasing time frame, by age, December 2019
Understanding Black Consumers’ Automotive Loyalty
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- Automotive loyalty is a moving target
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- Figure 32: Post-purchase loyalty, Black vs White, December 2019
- Brand power still needs horsepower
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- Figure 33: Black consumers’ reasons for buying the same auto brand, December 2019
- There’s tension between fandom and freedom
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- Figure 34: Black consumers’ reasons for switching auto brands, December 2019
- Men buy with their hearts
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- Figure 35: Black consumers’ reasons for switching auto brands, by gender, December 2019
- Black consumers move on to move up
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- Figure 36: TURF analysis – brand switching motivators, December 2019
- Methodology
Black Consumers and Car Culture
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- Car is an extension of self
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- Figure 37: Black consumers’ attitudes toward car culture, indexed to total, December 2019
- There’s a difference between love and respect
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- Figure 38: Black men’s attitudes toward car culture, index to total males, December 2019
- Kids are (luckily) the future
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- Figure 39: Black consumers’ attitudes toward car culture, by generation, December 2019
- Aspirations of luxury
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- Figure 40: Reasons for switching brands, Black vs White, December 2019
Classifying Car Owners
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- Brand value is in the eyes of the buyer
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- Figure 41: Black consumers’ loyalty in automotive attitudinal segments, December 2019
- Brand ambassadors
- Brand Loyalists (24%)
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- Figure 42: Brand loyalty determinants, by consumer segment, December 2019
- Automotive Enthusiasts (20%)
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- Figure 43: Brand loyalty determinants, by consumer segment, December 2019
- Disloyal detractors
- Disengaged Drivers (29%)
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- Figure 44: Brand loyalty determinants, by consumer segment, December 2019
- Disillusioned Experts (27%)
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- Figure 45: Brand loyalty determinants, by consumer segment, December 2019
Brand Impact on Black Consumer Loyalty
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- Black buyers need to know that they’re being heard
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- Figure 46: Attitudes toward automotive loyalty – automaker/brand relations, Black vs White, December 2019
- Performance is vital, but brand has some equity
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- Figure 47: Attitudes toward automotive loyalty – brand value, Black vs White, December 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – Market Overview
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- Figure 48: How consumers paid for their most recently acquired vehicle, by race, Black indexed to all, October 2018-December 2019
- Figure 49: Length of finance plan or lease for their most recently acquired vehicle, by race, Black indexed to all, October 2018-December 2019
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- Figure 50: Black consumers’ attitudes toward automobiles – NET: any agree, by gender, October 2018-December 2019
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Appendix – Driving Loyalty Behaviors
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- Four Pillars of Automotive Loyalty
Appendix – The Consumer
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- Figure 51: Vehicle ownership, by race, October 2018-December 2019
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- Figure 52: Number of vehicles in Black households, indexed to total, December 2019
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- Figure 53: Black consumers’ purchasing time frame, indexed to total, December 2019
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