Are SUV Buyers Torn Between Luxury and Economy?

Are SUV Buyers Torn Between Luxury and Economy?
Kelley Blue Book's latest report series, Brand Watch, which reveals key decision factors among consumers in the purchase consideration process, shows the two most important factors of luxury SUV shoppers are driving comfort and driving performance, whereas the non-luxury SUV shopper considers fuel efficiency and durability/reliability the two most important factors in considering an SUV.

Falling in the middle of the top five consideration factors for both of these groups is safety. Among luxury SUV shoppers Lexus ranked No. 1 for driving comfort, their top consideration factor. Among non-luxury SUV considerers, Toyota ranked No. 1 for fuel efficiency, durability/reliability and safety, the segment's top three consideration factors.

Brand Watch asked both luxury and non-luxury SUV intenders their opinions and perceptions regarding up to 17 different attributes associated specifically with SUVs. New-vehicle shoppers were asked to not only rank these attributes in importance, but to also rate each manufacturer on those important factors. The price-point difference between luxury and non-luxury SUV considerers leads the top five attributes among these two consideration groups to be nearly opposites.

"Shoppers who can afford a luxury vehicle can also afford gas at $3.50 a gallon and are much more concerned with driving performance and driving comfort than fuel efficiency and reliability," said Jack R. Nerad, executive editorial director and executive market analyst. "Those concerned with fuel efficiency and reliability are much more cost-conscious overall and less likely to consider a luxury vehicle."

In the luxury SUV shoppers group, GMC's luxury Denali line topped the rankings for seating-capacity, towing and being family-friendly, but tied for last place with Saab among considerers when it comes to prestige and brand status. In the prestige and brand status category, consumers ranked Mercedes-Benz at the top. For brand cachet and perception among consumers, HUMMER and Cadillac came in close behind Mercedes-Benz among luxury SUV shoppers. And while Hummer placed high for brand and prestige, the military-style vehicle ranked last for luxuriousness and sophistication, where again Mercedes-Benz garnered the top slot.

Perceptions of vehicle brands in the non-luxury shopping group placed Toyota and Honda high for the majority of attribute categories including comfort, reliability and safety, but when it comes to stylishness, layout/design and versatility/flexibility, non-luxury SUV intenders rate Ford highest for those attributes.

"In-market shoppers' make/model choices are clearly influenced by brand perceptions and brand-level campaigns," said Rick Wainschel, vice president of marketing research and brand communications for Kelley Blue Book. "It appears that the branding campaigns executed by some of the domestic luxury SUV brands are paying off."

Available to vehicle manufacturers and auto industry professionals, Brand Watch taps into more than 12,000 active and in-market shoppers annually to determine their perception of vehicle makes within specific automotive segments. Brand Watch further delves into how each manufacturer's brand equity differs across vehicle segments, compares the relative standing of each make vs. competitive makes, and the decision factors of shoppers within each make and segment. Detailed demographic and psychographic information is also collected, reported and detailed throughout Brand Watch's comprehensive study available quarterly from Kelley Blue Book Marketing Research.



david999david999 - 3/20/2007 11:25:19 AM
+1 Boost
Mercedes/Lexus/Toyota know what their customers like and that is why they succeed in the luxury SUV market. I am looking forward to the new LX570 and re-designed RX350 to be debuted this year.


AMGC55AMGC55 - 3/20/2007 12:28:50 PM
0 Boost
people that want a range rover get it because its a range rover not cause there worried about 4$ gas and 15mpg

obviously people that are worried will have to compromise on somthing different ... say a highlander hybrid/Rx400h


1970toyotamarc1970toyotamarc - 3/20/2007 2:11:46 PM
+1 Boost
I hope that when buying a $75,000 luxury SUV you can and do still care about fuel efficiency. Not because of what you pay at the pump, but because of your environmental footprint. Everyone, especially the rich, have a responsibility to protect (or at least lessen their harm of) the Earth.


Agent63Agent63 - 3/20/2007 2:33:52 PM
+1 Boost
I don't think most of the Luxury SUV buyers think about the fuel economy or the environment as much. They clearly show they can afford it but I don't think the environment is the first that comes into mind. Just what I think that's all. Most are too ignorant to believe that one less gas guzzler can make a difference.



jt716jt716 - 3/20/2007 4:15:11 PM
+1 Boost
I wish a Range Rover was in my near future


S4cabriofoxoneS4cabriofoxone - 3/20/2007 4:43:14 PM
+1 Boost
I don't think there's such thing as an "economical" SUV.

Have a smug face when you buy an Escape Hybrid? Go check out the Honda Civic, and not just the Si. It has better mileage, looks better, costs less and goes better. You really have to NEED the trunk space to justify it.


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