Table of Contents
Executive Summary
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- The issues
- Domestic mid-tier brands deliver the best value, which is the leading purchase driver
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- Figure 1: Correspondence analysis – Black consumers’ perceptions of domestic auto brands, November 2016
- Foreign brands own positive attributes across the board, but may be perceived as expensive
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- Figure 2: Correspondence analysis – Black consumers’ perceptions of foreign auto brands, November 2016
- Black consumers associate foreign cars with base- and advanced-level attributes more than domestic
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- Figure 3: Black consumers’ perceptions of domestic and foreign auto brands – None, November 2016
- Car sites and inner circle provide trusted information
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- Figure 4: Blacks’ trusted information sources, November 2016
- The opportunities
- Mid-tier brands should highlight both practical and abstract attributes
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- Figure 5: Blacks’ purchase influences, top influences (nets), November 2016
- Meet the consumer where they are looking for more information
- Maintain communication with buyers post sale to increase brand loyalty
- What it means
The Market – What You Need to Know
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- Blacks over index on used vs new car purchases
- Blacks gravitate more toward cars vs any other type of auto
- Consumer confidence is rising for most Americans, except for Blacks
The Black Population by the Numbers
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- Black population growth expected to remain steady
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- Figure 6: Population projections, by race, 2012-22
- Black population generational distribution mirrors the total US
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- Figure 7: Black and total US population percentages, by generation, 2017
Market Perspective
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- Fewer Blacks own cars across all income strata
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- Figure 8: Vehicle ownership – any car, by Black and household income, index to all, July 2015-August 2016
- Black auto ownership outside of standard cars varies greatly
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- Figure 9: Vehicle ownership – type, by Black and all, index to all, July 2015-August 2016
- Blacks over index on buying used cars, especially luxury
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- Figure 10: Non-premium and premium ownership and method of acquisition, by Black and all, July 2015-August 2016
- Blacks link prestige and trends to their car preferences
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- Figure 11: Attitudes about autos, by Black and index to all, July 2015-August 2016
Market Factors
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- Consumer confidence increasing, but Blacks don’t share the same sentiment
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- Figure 12: Consumer confidence and unemployment, Black and total US, 2000-January 2017
- Percentage of middle-income Black households on par with other groups
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- Figure 13: Household income distribution, by race/ Hispanic origin of householder, 2015
- Gas prices experience slight uptick at the end of 2016 due to expected decrease in oil production
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- Figure 14: US gasoline and diesel retail prices, January 2007-January 2017
- Light truck and SUV sales surged in 2016, but 2017 estimates in flux
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- Figure 15: Seasonally adjusted domestic and foreign auto and truck sales, January 2016-January 2017
Key Players – What You Need to Know
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- Practicality competes with attraction
- Ride-sharing services poised to impact Blacks’ car ownership
What’s Working?
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- Millennials hold more favorable opinions on domestic cars vs older generations
What’s Struggling?
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- Blacks want high-tech auto features, but can live without them
- Black Millennials’ loyalty to car brands is minimal
What’s Next?
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- Future auto manufacturer preferences tied to ride-sharing economy
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- Figure 16: Lyft’s “June: Life is Better When You Share the Ride,” short film, December 2016
The Consumer – What You Need to Know
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- Blacks more likely to link positive attributes to foreign over domestic cars
- Black Millennials focus on features, older Blacks on brand identity
- Price rules among car purchase drivers, but expected product quality and value are close behind
- Blacks trust car-specific sites to shape their opinion on cars
Blacks’ Perceptions of Domestic Auto Brands
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- Blacks’ purchase considerations guide their brand perceptions of domestic cars
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- Figure 17: Correspondence analysis – Black consumers’ perceptions of domestic auto brands, November 2016
- GM brands have the greatest association across product attributes
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- Figure 18: Chevrolet “Mo’ne Davis: Throw Like a Girl – Chevy Baseball,” short film, October 2014
- Figure 19: Black consumers’ perceptions of domestic auto brands, November 2016
- Chevrolet and Ford own good value marks among Blacks, but under index for ownership vs general market
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- Figure 20: Domestic auto brand ownership, Black households and index to all, July 2015-August 2016
- Muscle and truck brand attributes resonate among Black men
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- Figure 21: GMC “Destination: Inspiration – A Day in the Life of June Ambrose (Episode 1),” online series, January 2017
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- Figure 22: Black consumers’ perceptions of domestic auto brands – Trucks, November 2016
- Upper-income Blacks assign positive attributes to standard and luxury brands
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- Figure 23: Black consumers’ perceptions of domestic auto brands, by household income, November 2016
Blacks’ Perceptions of Foreign Auto Brands
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- Foreign luxury brands embody desired attributes, but price weakens their value
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- Figure 24: Correspondence analysis – Black consumers’ perceptions of foreign auto brands, November 2016
- Top-owned foreign brands provide the greatest value and safety, but average benefits in other areas
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- Figure 25: Black consumers’ perceptions of foreign auto brands, November 2016
- Black ownership under represented among foreign brand volume leaders
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- Figure 26: Top 10 foreign auto brand ownership, Black index to all, July 2015-August 2016
- Middle-income Blacks assign good value to mid-range brands
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- Figure 27: Black consumers’ perceptions of foreign auto brands – Good value, by household income, November 2016
- Blacks assign desired auto attributes to foreign over domestic brands
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- Figure 28: Black consumers’ perceptions of domestic and foreign auto brands – None, November 2016
Factors Influencing Blacks’ Perceptions of Car Brands
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- Price is king, but product perception and attributes are important
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- Figure 29: Factors influencing Blacks’ perceptions of car brands, November 2016
- Black Millennials rely on the most criteria for their car purchase
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- Figure 30: Factors influencing Blacks’ perceptions of car brands, by generation, November 2016
- Middle-income buyers depend on outside sources, upper-income buyers rely on their experience
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- Figure 31: Factors influencing Blacks’ perceptions of car brands, by household income, November 2016
- Black women express greater concern for safety ratings
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- Figure 32: Factors influencing Blacks’ perceptions of car brands, by gender, November 2016
Blacks’ Attitudes toward Car Brands
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- Driving for Blacks is fun and an extension of their image
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- Figure 33: Blacks’ attitudes toward car brands, November 2016
- Millennials continuously shop for cars while Baby Boomers demonstrate the greatest loyalty
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- Figure 34: Blacks’ attitudes toward car brands, by generation, November 2016
- Middle-income Blacks focused on image, upper-income Blacks focused on value
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- Figure 35: Blacks’ attitudes toward car brands, by household income, November 2016
- Black male Millennials are searching for their dream car, while Boomers are already driving it
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- Figure 36: Blacks’ attitudes toward car brands, by male and generation, November 2016
- Foreign car recalls may have eroded quality measures in the minds of Black women
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- Figure 37: Blacks’ attitudes toward car brands, by female and generation, November 2016
- Married Blacks are more loyal to car brands, perhaps because their criteria expands beyond just function
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- Figure 38: Blacks’ attitudes toward car brands, by marital status, November 2016
Reasons for Most Recent Auto Acquisition
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- “You get what you pay for” and Blacks expect durability for their money
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- Figure 39: Blacks’ reasons for most recent auto acquisition, November 2016
- Black women are influenced by traditional performance, but older women tend to value experience
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- Figure 40: Blacks’ reasons for most recent auto acquisition, by female and generation, November 2016
- Black men, especially the younger ones, value advanced technology
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- Figure 41: Blacks’ reasons for most recent auto acquisition, by male and generation, November 2016
- Safety and performance technology top Black parents’ concerns
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- Figure 42: Blacks’ reasons for most recent auto acquisition – Safety and performance technology, by parental status, November 2016
- Advanced performance and technology drive purchase among upper- income Blacks
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- Figure 43: Blacks’ reasons for most recent auto acquisition – Brand and performance, by household income, November 2016
- Blacks’ ownership of car features skews toward the basics
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- Figure 44: Auto feature ownership, Black households vs all, July 2015-August 2016
Blacks’ Trusted Information Sources
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- Blacks go straight to car sources for product information
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- Figure 45: Blacks’ trusted information sources, November 2016
- Young men most likely to trust their peers’ car knowledge
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- Figure 46: Blacks’ trusted information sources – Select items, by male and generation, November 2016
- Black women across generations rely on family and friends
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- Figure 47: Blacks’ trusted information sources – Select items, female and generation, November 2016
- Secondary sources vary across income strata
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- Figure 48: Blacks’ trusted information sources – Media, by household income, November 2016
Appendix – Data Sources and Terms
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- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- Figure 49: Vehicle ownership – Any car, by Black and household income, index to all, July 2015-August 2016
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- Figure 50: Vehicle ownership – Type, by Black and all, index to all, July 2015-August 2016
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- Figure 51: Non-premium and premium ownership and method of acquisition, by Black and all, July 2015-August 2016
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- Figure 52: Attitudes about autos, by Black and index to all, July 2015-August 2016
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- Figure 53: Domestic auto brand ownership, Black households and index to all, July 2015-August 2016
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- Figure 54: Foreign auto brand ownership, Black households and index to all, July 2015-August 2016
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