'Rice rocket' madness

With import vehicles comprising nearly 49 percent of the US auto market, country of origin plays a crucial role in consumers' choice of which make and model to purchase, according to the J.D. Power and Associates "2007 Escaped Shopper Study," reports MarketingCharts.

The study evaluates why consumers may consider one model but purchase another.

Among the study's findings:

• Nearly 80 percent of new-vehicle buyers limit consideration to either only domestic models or only import models.
• Among those cross-shopping for both import and domestic models, consumers who ultimately buy a domestic frequently do so because they simply decide they do not want an import.
• Buyers of domestic new vehicles also frequently decide against import brands for financial reasons, most often citing that the import didn't offer aggressive rebates or other incentives.
• Conversely, import buyers who reject a domestic model more frequently point to perceived vehicle attribute deficiencies, such as concerns about reliability, gas mileage or poor resale value.

(MarketingCharts provides additional findings from the study here.)

"These findings point to continued difficulties for the Big Three in Detroit as they try to win back some of the market share they lost to the imports," said Kara Steslicki, research manager of the automotive retail practice at J.D. Power and Associates.

"Reliability and resale value perceptions are difficult to change overnight, especially considering that people are already rejecting domestic vehicles because of this.

"To win back market share, domestics are faced with two alternatives: either continue outspending imports on incentives, or find vehicle specific opportunities, such as styling or promoting a positive dealer experience, that can have an immediate impact on consumer perceptions of the brand."