Car buyers have increasingly jettisoned brand loyalty toward one automaker in favor of a more specific approach to buying individual products, according to CNW Marketing Research. In the 1980s, nearly four out of five Americans stuck with the same brand they’d previously owned when picking out a new car.
Compare that to the roughly 20% of car shoppers who have purchased the same brand this year; a trend that’s been ongoing for two decades. This is largely because cars have improved.
In any given segment, most products have the same safety and convenience features, so distinction becomes more a matter of individual taste. Rather than heading back to the local GM dealer to buy what they know, consumers can surf sites like Cars.com and comparison shopping down to the smallest detail.
This means automakers have to sell products on an individual basis rather than relying on their brand. Toyota may rake in the dough on its top-selling car, the Camry, but when it comes to selling trucks, buyers still prefer the Ford F-150 to the Tundra.
It’s also a trend that has allowed Hyundai and Kia to quietly increase their market share with well-placed products like the Hyundai Sonata that can offer a better value than the competition.
As car buyers continue to eschew brand loyalty, it will create opportunities for more targeted products, but automakers will need to continuously adapt to consumers’ increasingly fickle tastes.
Tell us what you think in the comment section below. Is brand loyalty is a fading trend?