Black Consumers' Perceptions of Auto Brands - US - March 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Domestic mid-tier brands deliver the best value, which is the leading purchase driver
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
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
Figure 3: Black consumers’ perceptions of domestic and foreign auto brands – None, November 2016
Car sites and inner circle provide trusted information
Figure 4: Blacks’ trusted information sources, November 2016
The opportunities
Mid-tier brands should highlight both practical and abstract attributes
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
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
Black population growth expected to remain steady
Figure 6: Population projections, by race, 2012-22
Black population generational distribution mirrors the total US
Figure 7: Black and total US population percentages, by generation, 2017
MARKET PERSPECTIVE
Fewer Blacks own cars across all income strata
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
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
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
Figure 11: Attitudes about autos, by Black and index to all, July 2015-August 2016
MARKET FACTORS 
Consumer confidence increasing, but Blacks don’t share the same sentiment
Figure 12: Consumer confidence and unemployment, Black and total US, 2000-January 2017
Percentage of middle-income Black households on par with other groups
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
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
Figure 15: Seasonally adjusted domestic and foreign auto and truck sales, January 2016-January 2017
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Practicality competes with attraction
Ride-sharing services poised to impact Blacks’ car ownership
WHAT’S WORKING?
Millennials hold more favorable opinions on domestic cars vs older generations
WHAT’S STRUGGLING?
Blacks want high-tech auto features, but can live without them
Black Millennials’ loyalty to car brands is minimal
WHAT’S NEXT?
Future auto manufacturer preferences tied to ride-sharing economy
Figure 16: Lyft’s “June: Life is Better When You Share the Ride,” short film, December 2016
THE CONSUMER – WHAT YOU NEED TO KNOW 
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
Blacks’ purchase considerations guide their brand perceptions of domestic cars
Figure 17: Correspondence analysis – Black consumers’ perceptions of domestic auto brands, November 2016
GM brands have the greatest association across product attributes
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
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
Figure 21: GMC “Destination: Inspiration – A Day in the Life of June Ambrose (Episode 1),” online series, January 2017
Figure 22: Black consumers’ perceptions of domestic auto brands – Trucks, November 2016
Upper-income Blacks assign positive attributes to standard and luxury brands
Figure 23: Black consumers’ perceptions of domestic auto brands, by household income, November 2016
BLACKS’ PERCEPTIONS OF FOREIGN AUTO BRANDS
Foreign luxury brands embody desired attributes, but price weakens their value
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
Figure 25: Black consumers’ perceptions of foreign auto brands, November 2016
Black ownership under represented among foreign brand volume leaders
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
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
Figure 28: Black consumers’ perceptions of domestic and foreign auto brands – None, November 2016
FACTORS INFLUENCING BLACKS’ PERCEPTIONS OF CAR BRANDS 
Price is king, but product perception and attributes are important
Figure 29: Factors influencing Blacks’ perceptions of car brands, November 2016
Black Millennials rely on the most criteria for their car purchase
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
Figure 31: Factors influencing Blacks’ perceptions of car brands, by household income, November 2016
Black women express greater concern for safety ratings
Figure 32: Factors influencing Blacks’ perceptions of car brands, by gender, November 2016
BLACKS’ ATTITUDES TOWARD CAR BRANDS
Driving for Blacks is fun and an extension of their image
Figure 33: Blacks’ attitudes toward car brands, November 2016
Millennials continuously shop for cars while Baby Boomers demonstrate the greatest loyalty
Figure 34: Blacks’ attitudes toward car brands, by generation, November 2016
Middle-income Blacks focused on image, upper-income Blacks focused on value
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
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
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
Figure 38: Blacks’ attitudes toward car brands, by marital status, November 2016
REASONS FOR MOST RECENT AUTO ACQUISITION 
“You get what you pay for” and Blacks expect durability for their money
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
Figure 40: Blacks’ reasons for most recent auto acquisition, by female and generation, November 2016
Black men, especially the younger ones, value advanced technology
Figure 41: Blacks’ reasons for most recent auto acquisition, by male and generation, November 2016
Safety and performance technology top Black parents’ concerns
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
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
Figure 44: Auto feature ownership, Black households vs all, July 2015-August 2016
BLACKS’ TRUSTED INFORMATION SOURCES
Blacks go straight to car sources for product information
Figure 45: Blacks’ trusted information sources, November 2016
Young men most likely to trust their peers’ car knowledge
Figure 46: Blacks’ trusted information sources – Select items, by male and generation, November 2016
Black women across generations rely on family and friends
Figure 47: Blacks’ trusted information sources – Select items, female and generation, November 2016
Secondary sources vary across income strata
Figure 48: Blacks’ trusted information sources – Media, by household income, November 2016
APPENDIX – DATA SOURCES AND TERMS
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE CONSUMER
Figure 49: Vehicle ownership – Any car, by Black and household income, index to all, July 2015-August 2016
Figure 50: Vehicle ownership – Type, by Black and all, index to all, July 2015-August 2016
Figure 51: Non-premium and premium ownership and method of acquisition, by Black and all, July 2015-August 2016
Figure 52: Attitudes about autos, by Black and index to all, July 2015-August 2016
Figure 53: Domestic auto brand ownership, Black households and index to all, July 2015-August 2016
Figure 54: Foreign auto brand ownership, Black households and index to all, July 2015-August 2016