Brand loyalty on the decline, says new JD Power study
In the highly contested SUV segment – Volvo leads the way for premium brands with BMW in a close second.
According to a new JD Power study, new vehicle buyers are becoming less loyal to the brand they currently drive.
Tyson Jominy, VP of Data & Analytics, JD Power, stated that the decline in brand loyalty is due to the increased number of choices available in the market for customers. Jominy also stated that due to the supply chain disruptions, car owners are holding on to their vehicles for much longer than before, resulting in a higher chance of them experiencing problems with their vehicles. Having said that, Jominy does argue that when customers experience excellent build quality or good ownership, car buyers do tend to return to brands.
In JD Power’s latest brand loyalty index, Porsche leads the ranking among premium car brands for the second year in a row. The German carmaker received a loyalty rating of 56.8%; followed by Mercedes-Benz at 50.5%. Similarly, among the mass-market brands, Toyota ranked the highest with a 60% loyalty rating. It was followed by Honda, rated at 55%.
In the highly contested SUV segment – Volvo leads the way for premium brands with BMW in a close second place at 56.5% and 56.1% loyalty rates, respectively. Subaru beats Toyota among the mass-market SUV brands with a loyalty rate of 61.1%.
Toyota also has the second highest loyal customers in the truck segment with a loyalty rate of 60.4%. This segment is led by Ford with a 64.6 per cent loyalty rating.
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