Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: Fan chart forecast of U.S. unit sales of new cars, 2007-17
- Market factors
- Rising fuel prices forcing consumers to consider more fuel-efficient vehicles
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- Figure 2: U.S. regular conventional retail gasoline prices, October 2002-12
- Recession caused consumers to hold onto cars longer, creating pent-up demand
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- Figure 3: Average age of cars, light trucks on the road, 1995-2011
- Consumers driving fewer miles, seeking alternates to driving
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- Figure 4: Consumer vehicle miles traveled, all U.S. roads and streets, 1998-2011
- Segmentation
- Unit sales of cars surpassing light truck unit sales in 2012
- Smaller, midsize cars growing more than luxury, large cars
- SUV/CUVs control more than 60% of light truck market
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- Figure 5: Unit sales of new cars and light trucks, cars vs. light trucks, 2007-17
- The consumer
- Majority of households owning midsized cars, followed by small cars
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- Figure 6: Small, midsized, full-sized car ownership or lease, by car segment, June 2012
- One third of respondents intending to buy a car are looking to mid-size cars
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- Figure 7: Type of new vehicle consumers intending to buy, by gender, June 2012
- 40% of respondent households considering purchase/lease of new, not used vehicles
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- Figure 8: Anticipated age of vehicle to purchase next, by gender, June 2012
- Respondents aged 18-34 most likely to purchase within six months
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- Figure 9: When new car will be purchased, by age - all vs. 18-34 year olds, June 2012
- Affordability top reason for not buying new
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- Figure 10: Reasons for not purchasing new cars, by age - 18-24 vs.65+, June 2012
- Better fuel economy top reason that is motivating purchasing
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- Figure 11: Reasons for purchasing new cars, by gender, June 2012
- Asian respondents more likely than white, black, Hispanic to purchase new
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- Figure 12: Anticipated age of proposed vehicle purchase, by race/Hispanic origin, June 2012
- What we think
Issues in the Market
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- Fuel economy becoming primary factor in consumer decision to buy
- Pent-up demand hitting threshold, forcing consumers to buy
- Consumers turning to lighter, smaller cars, crossover utility vehicles
Insights and Opportunities
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- Expanding customer interaction through real-time technology
- Car rental programs give consumers chance to test drive vehicles
- Emphasizing the vehicle’s personality quirks to draw in consumers
- Creating opportunities for kids to help groom future buyers
Trend Application
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- Inspire trend: Minimize Me
- Inspire trend: The Unfairer Sex
- Inspire 2015 trends
- Old Gold
Market Size and Forecast
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- Key points
- New car market unit sales in 2014 will represent greatest peak in 7 years
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- Figure 13: Total U.S. unit sales and forecast of new cars, 2007-17
- Fan chart forecast
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- Figure 14: Fan chart forecast of U.S. unit sales of new cars, 2007-17
Market Drivers
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- Escalating fuel prices forcing consumers to smaller, midsize vehicles
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- Figure 15: U.S. regular conventional retail gasoline prices, by first week in October, 2002-12
- Consumers holding onto cars, trucks longer creating pent-up demand
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- Figure 16: Average age of cars, light trucks and total light vehicles, 1995-2011
- Declines in vehicle use reflects consumer hesitation at gas pump
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- Figure 17: Consumer vehicle miles traveled, all U.S. roads and streets, 1998-2011
- New fuel efficiency standards to serve consumer demand at gas pump
- Consumer sentiment rising, but lower than prerecession levels
Segment Performance—Overview
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- Key points
- Unit sales of cars, trucks evenly split new vehicle market share in 2011
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- Figure 18: Total U.S. unit sales and market share of cars and light trucks, 2009, 2011 and 2013
- Figure 19: Unit sales and forecast of new cars and light trucks, by segment, 2007-17
Segment Performance—Cars
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- Key points
- Unit sales of cars estimated to grow 23% in 2012
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- Figure 20: Total U.S. unit sales and forecast of new cars, 2007-17
- Midsize cars showing greatest growth in unit sales over 12-month period
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- Figure 21: Total U.S. unit sales of new car segments, 12-month total for August 2012 and August 2011
- Majority of top 20 cars sold over 12 months are small, the rest midsize
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- Figure 22: Top 20 new car unit sales and market share, by 12-month totals for August 2012 and August 2011
Segment Performance—Light Trucks
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- Key points
- Light truck unit sales estimated to grow 12% in 2012
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- Figure 23: Total U.S. unit sales and forecast of new light trucks, 2007-17
- SUV/CUVs control more than 60% of light truck market
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- Figure 24: Total U.S. unit sales of light truck segments, 12-month total for August 2012 and August 2011
- Half of segment’s top 20 best-selling vehicles are CUVs
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- Figure 25: Top 20 new light truck unit sales and market share, by 12-month totals for August 2012 and August 2011
Innovation and Innovators
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- VW partners with makeup celebrity to discourage distracted driving
- Chrysler launches industry’s first in-car wireless recharging system
- Nissan introduces system to alert drivers of low, high tire pressure
- Ford develops system that forecasts traffic congestion
- GM introduces industry’s first front-center air bag
- Michigan dealership group encourages social media test drives
Brand Research
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- Brand map
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- Figure 26: Attitudes toward and usage of brands in the car sector, August 2012
- Brand attitudes
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- Figure 27: Attitudes by car brand, August 2012
- Brand personality
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- Figure 28: Car brand personality – macro image, August 2012
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- Figure 29: Car brand personality – micro image, August 2012
- Brand experience
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- Figure 30: Car brand usage, august 2012
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- Figure 31: Satisfaction with various car brands, August 2012
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- Figure 32: Consideration of car brands, August 2012
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- Figure 33: Consumer perceptions of current car brand performance, August 2012
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- Figure 34: Car brand recommendation—Net Promoter Score, August 2012
- Brand index
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- Figure 35: Car brand index, August 2012
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- Figure 36: Car brand index vs. recommendation, August 2012
- Target group analysis
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- Figure 37: Target groups, August 2012
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- Figure 38: Car brand usage, by target groups, August 2012
- Group One—Conformists
- Group Two—Simply the Best
- Group Three—Shelf Stalkers
- Group Four—Habitual Shoppers
- Group Five—Individualists
Marketing Strategies
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- Strategy: Allow users to reimagine vehicle via Batman franchise
- Strategy: Targeting young buyers through talent contest
- Strategy: Launching website to build community among owners
- Strategy: Zombie-inspired novelty cars used to target young buyers
- Strategy: Emphasizing trust in exchange, no-haggling promotions
- Strategy: Position the vehicle’s fuel efficiency against the competition
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- Figure 43: Chevrolet Cruze Amazing Car TV ad, July 2012
- Strategy: Shaping driver testimonial as impromptu press conference
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- Figure 44: Classic Funny Quirky Ford TV ad, November 2011
- Strategy: Creating a striking visual to emphasize fuel efficiency
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- Figure 45: “Legendary” Toyota TV ad, September 2012
- Strategy: Emphasizing male component of vehicle through comedy, action
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- Figure 46: “Back and Better” Volkswagen Beetle ad, February 2012
New Vehicle Ownership/Lease
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- Key points
- Majority of households own midsized cars, followed by small cars
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- Figure 47: Small, midsized, full-sized car ownership or lease, June 2012
- More households with SUVs/CUVs than trucks
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- Figure 48: SUV/CUV, truck, van, minivan ownership or lease, June 2012
- Small car, midsized car ownership highest among youngest respondents
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- Figure 49: Small, midsized, full-sized car ownership or lease, by age, June 2012
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- Figure 50: SUV/CUV, truck, van, minivan ownership or lease, by age, June 2012
- SUV/CUV ownership, leasing highest among wealthiest households
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- Figure 51: Small, midsized, full-sized car ownership or lease, by household income, June 2012
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- Figure 52: SUV/CUV, truck, van, minivan ownership or lease, by household income, June 2012
Anticipated Age of Vehicle to Purchase Next
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- Key points
- About 40% of respondents say next vehicle will be new
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- Figure 53: Anticipated age of vehicle to purchase next, by gender, June 2012
- Preference for purchasing new increases with age
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- Figure 54: Anticipated age of vehicle to purchase next, by age, June 2012
- Respondents from $50K+ households most likely to consider purchasing new
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- Figure 55: Anticipated age of vehicle to purchase next, by household income, June 2012
- About half of married respondents considering purchasing new vehicle
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- Figure 56: Anticipated age of vehicle to purchase next, by marital/relationship status, June 2012
- Suburban respondents most likely to consider purchasing, leasing new
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- Figure 57: Anticipated age of vehicle to purchase next, by urban status, June 2012
When New Car Will Be Purchased
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- Key points
- One third of respondents planning to purchase in two years or more
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- Figure 58: When new car will be purchased, by gender, June 2012
- Those aged 18-34 most likely to plan purchasing sooner than later
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- Figure 59: When new car will be purchased, by age, June 2012
- Waiting to purchase two years or more relatively even among all earners
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- Figure 60: When new car will be purchased, by household income, June 2012
- Millennial respondents most likely to say they will purchase less than a year
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- Figure 61: When new car will be purchased, by generation, June 2012
Type of New Vehicle Intending to Buy
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- Key points
- One third of respondents intend to purchase midsized cars
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- Figure 62: Type of new vehicle intending to buy, by gender, June 2012
- Small cars appeal most to youngest respondents
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- Figure 63: Type of new vehicle intending to buy, by age, June 2012
- Highest earners least likely to intend to purchase small cars
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- Figure 64: Type of new vehicle intending to buy, by household income, June 2012
- Small-car preference dominated by urban respondents
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- Figure 65: Type of new vehicle intending to buy, by urban status, June 2012
Reasons For Not Purchasing New Cars
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- Key points
- More than one third of respondents say they can’t afford buying new
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- Figure 66: Reasons for not purchasing new cars, by gender, June 2012
- More than half of those 18-24 most likely to say they can’t afford buying new
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- Figure 67: Reasons for not purchasing new cars, by age, June 2012
- Inability to afford reaches to middle/upper-income households
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- Figure 68: Reasons for not purchasing new cars, by household income, June 2012
- Affordability greatest obstacle for urban, rural respondents
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- Figure 69: Reasons for not purchasing new cars, by urban status, June 2012
How Consumers Research Vehicles
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- Key points
- Family, friends top preference for buyers when researching new vehicles
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- Figure 70: Information sources considered useful when deciding on a new vehicle, by gender, June 2012
- Younger respondents more reliant on family, friends
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- Figure 71: Information sources considered useful when deciding on a new vehicle, by age, June 2012
- Auto shows stand out for lowest-income households
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- Figure 72: Information sources considered useful when deciding on a new vehicle, by household income, June 2012
Reasons For Purchasing New Vehicles
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- Key points
- Better fuel economy most preferred reason that motivates purchasing
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- Figure 73: Reasons likely to motivate the purchase of a new vehicle, by gender, June 2012
- New technology, safety, style preferred most by youngest respondents
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- Figure 74: Reasons likely to motivate the purchase of a new vehicle, by age, June 2012
- Technology motivates respondents from wealthiest households
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- Figure 75: Reasons likely to motivate the purchase of a new vehicle, by household income, June 2012
- Better fuel economy top motivation for parents with children 18+
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- Figure 76: Reasons likely to motivate the purchase of a new vehicle, by parents and age of children, June 2012
Impact of Gas Prices on Purchasing
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- Key points
- About 45% of respondents say gas prices are not a factor in buying new
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- Figure 77: Impact of gas prices on purchasing, by gender, June 2012
- Respondents aged 45+ most likely to not be concerned about gas
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- Figure 78: Impact of gas prices on purchasing, by age, June 2012
- Gas prices least likely to impact buying by wealthiest households
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- Figure 79: Impact of gas prices on purchasing, by household income, June 2012
- Urban dwellers less concerned about gas prices in buying
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- Figure 80: Impact of gas prices on purchasing, by urban area, June 2012
Features Impacting New Vehicle Purchasing
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- Key points
- Fuel efficiency top attribute in vehicle buying, leasing decision
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- Figure 81: Features impacting new vehicle purchasing, by gender, June 2012
- Infotainment systems resonate for wealthiest homes
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- Figure 82: Features impacting new vehicle purchasing, by household income, June 2012
- Number of seats, cargo room most important for parents of young kids
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- Figure 83: Features impacting new vehicle purchasing, by parents with children and age, June 2012
How Last Vehicle Was Paid For
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- Key points
- One third paying for new, used, leased vehicle in cash
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- Figure 84: How last vehicle was paid for, by gender, January 2011-March 2012
- Middle-age respondents, favor cash and bank loans
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- Figure 85: How last vehicle was paid for, by age, January 2011-March 2012
- Respondents from lowest-earning households most likely to pay in cash
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- Figure 86: How last vehicle was paid for, by household income, January 2011-March 2012
Impact of Race and Hispanic Origin
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- Key points
- White respondents most likely to own SUV/CUVs, trucks
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- Figure 87: Small, midsized, full-sized car ownership or lease, by race/Hispanic origin, June 2012
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- Figure 88: SUV/CUV, truck, van, minivan ownership or lease, by race/Hispanic origin, June 2012
- Asian respondents most likely to purchase new, not used, vehicle
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- Figure 89: Anticipated age of vehicle to purchase next, by race/Hispanic origin, June 2012
- Black respondents more likely than others to purchase new within six months
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- Figure 90: When new car will be purchased, by race/Hispanic origin, June 2012
- One third of black, white, Hispanics intend to buy midsized car
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- Figure 91: Type of new vehicle intending to buy, by race/Hispanic origin, June 2012
- Half of black respondents cannot afford to buy a new vehicle
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- Figure 92: Reasons for not purchasing new vehicles, by race/Hispanic origin, June 2012
- Articles/reviews most preferred by Asian respondents
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- Figure 93: Information sources considered useful when deciding on a new vehicle, by race/Hispanic origin, June 2012
- Asian, Hispanic respondents more motivated by good financing
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- Figure 94: Reasons likely to motivate the purchase of a new vehicle, by race/Hispanic origin, June 2012
- White respondent buying decisions least impacted by gas prices
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- Figure 95: Impact of gas prices on purchasing, by race/Hispanic origin, June 2012
- Hispanics’ larger families reflected in preference for more seats
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- Figure 96: Features impacting new vehicle purchasing, by race/Hispanic origin, June 2012
- Hispanic respondents most likely to pay for vehicle in cash
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- Figure 97: How last vehicle was paid for, by race/Hispanic origin, January 2011-March 2012
Appendix—Other Useful Tables
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- Anticipated age of proposed vehicle purchase
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- Figure 98: Anticipated age of vehicle to purchase next, by region, June 2012
- Type of new vehicle intending to buy
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- Figure 99: Type of new vehicle intending to buy, by marital status, June 2012
- Figure 100: Type of new vehicle intending to buy, by region, June 2012
- Impact of gas prices on purchasing new cars
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- Figure 101: Impact of gas prices on purchasing new cars, by region, June 2012
- Features impacting new vehicle purchasing
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- Figure 102: Features impacting new vehicle purchasing, by age, June 2012
- Figure 103: Features impacting new vehicle purchasing, by region, June 2012
Appendix – Brand Research
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- Figure 104: Brand usage, August 2012
- Figure 105: Brand commitment, August 2012
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- Figure 106: Brand momentum, August 2012
- Figure 107: Brand diversity, August 2012
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- Figure 108: Brand satisfaction, August 2012
- Figure 109: Brand recommendation, August 2012
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- Figure 110: Brand attitude, August 2012
- Figure 111: Brand image – macro image, August 2012
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- Figure 112: Brand image – micro image, August 2012
- Figure 113: Profile of target groups, by demographics, August 2012
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- Figure 114: Psychographic segmentation, by target groups, August 2012
- Figure 115: Brand usage, by target groups, August 2012
- Brand index
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- Figure 116: Brand index, August 2012
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Appendix—Trade Associations
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