Luxury consumers don�t typically purchase a non-luxury vehicle - unless it�s a hybrid version of that vehicle, an Acxiom� Corporation (NASDAQ: ACXM) study said today. But just because those consumers are taking a �step down� from their normal luxury category doesn�t mean they expect anything less in terms of technology features and advanced amenities such as GPS and other onboard diagnostics, Bluetooth compatibility and other technologies. Key findings from the Automotive Consumer Dynamics study revealed hybrid buyer behavior and discovered consumer trends in conquesting, technology and geographic location, which can further improve automotive marketing and distribution of hybrids. Top findings include: Room at the Top: Upper Rung consumer groups as defined by Acxiom, which comprise affluent buyers, are fueling hybrid buying trends and present a large opportunity for hybrid sales growth Conquesting: Hybrid models are driving brand switching, or conquesting, by as much as 10 percentage points higher than their non-hybrid counterparts Technology: Hybrid technology is causing mid-market hybrid models to make inroads with tech-savvy, luxury consumers Geographic Differences: Consumers with a high propensity toward hybrids demonstrate a striking difference in their geographic location from their non-hybrid counterparts The study, which focused on U.S. consumers likely to purchase a hybrid vehicle in the near future, finds that non-luxury brands are attracting a previously untapped consumer market. These affluent customers continue to set buying trends for this category of vehicles, and by reaching only 5 percent of the 17 million households within this population, manufacturers could double the number of hybrids sold in 2008 over 2007. �Clearly, these hybrid buyers are the trendsetters that are helping to shape the modern automotive landscape,� said Tim Longnecker, automotive industry executive for Acxiom. �They�re tech-savvy and demand the performance and amenities of luxury brand vehicles and are willing to pay for it. This presents an opportunity to position hybrid vehicles to a very different consumer set.� Furthermore, Acxiom found that hybrid vehicles drive brand switching, referred to as conquesting, as buyers choose a different manufacturer when purchasing hybrids at a greater rate than non-hybrid buyers. For example, 77 percent of Toyota Highlander hybrid buyers come from other manufacturers as opposed to 67 percent of Toyota Highlander non-hybrid buyers. �There is great opportunity for manufacturers of hybrids to tune into consumers� preferences and grow their customer base at the expense of the competition,� said Longnecker. �For many manufactures, hybrids are reaching prospects that their traditional models could only dream of.� The study also looks at the typical characteristics of a hybrid buyer and paints a contemporary portrait of lifestyle traits shared by these consumers. When comparing buyers of mid-market gasoline-fueled models to hybrid buyers of those same models, Acxiom found that hybrid buyers are more interested in science and space, environmental issues, reading science fiction, music collection and camping, than their non-hybrid counterparts. Additionally, Acxiom�s research found that more than 50 percent of consumers with a high propensity for the hybrid Ford Escape are located along the East and West Coasts, while traditional Ford Escape prospects are more evenly dispersed throughout the middle of the U.S., again pointing to the striking differences among these consumer groups. The implications of these geographic findings provide further insight into hybrid consumers, and by understanding these findings, automotive manufacturers can significantly impact their hybrid sales through strategic marketing. This is the second in an ongoing series of monthly, consumer-centric studies of the North American automotive industry, titled Automotive Consumer Dynamics. To download a copy of the study, or to subscribe to receive future editions, please visit www.acxiom.com/automotive (no registration required). About Automotive Consumer Dynamics Automotive Consumer Dynamics differs from other studies and analysis available to the industry in that it focuses on all U.S. consumers versus a sample, is prospective (what specific vehicles consumers intend to purchase next) versus historical (what aggregate consumers purchased last, and the findings are immediately actionable by automotive marketers because they provide addressability to specific individuals and households of interest. By exposing the attitudes, behaviors and intentions of vehicle buyers across the country and slicing them into 10 automotive consumer groups, the study offers predictive, timely information that can improve automotive marketing effectiveness and overall business performance dramatically through more timely and targeted communications to key prospects. About Acxiom Acxiom Corporation (NASDAQ: ACXM) integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world, including nine of the top 10 automotive manufacturers. The core components of Acxiom�s innovative solutions are Customer Data Integration (CDI) technology, data, database services, IT outsourcing, risk mitigation, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, with locations throughout the United States and Europe, and in Australia, China and Canada. For more information, visit www.acxiom.com.
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