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Jumpstart Automotive Media, a leading media, insights, and marketing solutions company and division of Hearst Autos, today released its latest auto shopper study in collaboration with Ipsos Connect, “Today’s Luxury Auto Owners: How Emotion, Experience, And Loyalty Drive Purchase Decisions.” The report looks at new trends in luxury auto shopping to better understand the luxury auto shopper mindset. Click here to download the study.
The luxury market looks significantly different today compared to a decade or two ago. Today, luxury automakers are continuously introducing a bevy of entry-level vehicles that compete with non-luxury choices filled with advanced technology and features. This, combined with more aggressive financing and CPO options, means it's never been more affordable to drive a luxury vehicle.
In response, luxury sales have grown. Today, luxury accounts for 13% of total sales, up 3% from 2014. Across Jumpstart sites, 34% of shoppers are researching luxury vehicles, up 4% from 2014.
About The Study
Working with global research firm, Ipsos Connect, Jumpstart conducted qualitative research
(18 in-home interviews with consumers who either currently own a luxury vehicle or have in the past) as well as an expert panel with professionals from the advertising, travel, food, journalism, and sociology industries. The firms then quantified those findings through a national survey of 751 auto owners to reveal new insight into today’s luxury auto owners. This study looks at general perceptions of luxury, and how emotion, experience, and loyalty drive purchase decisions.
Who Are Today’s Luxury Owners?
According to the findings, today's luxury owners are young, college educated, home owners, and willing to pay more to get what they want. What's more, they are more likely to be self-employed, and are 69% more likely to use their vehicles primarily for their personal business. This is perhaps counter to the long-held perception that luxury owners are older and more established in their lives.
One of the characteristics that motivate today’s buyers is centered around the fact that luxury owners today are looking to impress themselves, rather than others. In fact, 91% of luxury buyers interviewed said they would rather have a vehicle that is satisfying to them, rather than impressive to others. This is also counter to previous perceptions, where it was deemed important to show off luxury to family and friends.
Total Brand Experience Matters
The study found that the “total brand experience” is critical in connecting to and impressing today’s luxury auto shopper, above and beyond just offering a car with brand panache. Luxury owners today are open to experiential events and reliant on the dealership more for maintenance, which also gives dealers the chance to influence consumers even when they are not in the buying state of mind.
“Loyalty remains a strong characteristic among luxury owners, but it’s important for dealers to understand what motivates today’s luxury shopper so they can continue to improve on sales opportunities and keep satisfaction levels high,” said Aline Hilsabeck, senior director of strategic insights & analytics at Jumpstart. “This is especially critical for mass market owners, who may not be in-market immediately and ready to buy, but are always keeping one eye on their next vehicle and influenced by a number of criteria in their shopping.”
"This study highlights how brand experiences, as they do in so many categories, influence luxury auto purchase and loyalty. From the car’s performance and events to the dealership and maintenance experience, consumer perception is impacted throughout the entire shopping journey. Automotive marketers must take heed and understand and cater to the luxury buyers’ needs and expectations,” said Michael Baer, senior vice president and team lead, Ipsos: Affluent Intelligence Group.
The study also takes an in-depth look at mass market owners, luxury brand loyalty, and how emotions are driving consideration.
Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.
With offices in 87 countries, Ipsos delivers insightful expertise across five research specializations: brand, advertising and media, customer loyalty, marketing, public affairs research, and survey management.
Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.
Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,669.5 ($2,218.4 million) in 2014.
Visit www.ipsos.com to learn more about Ipsos’ offerings and capabilities.
Jumpstart Automotive Media, a division of Hearst Autos, offers high-impact and performance-driven marketing and advertising solutions that achieve optimum results. An industry thought-leader known for its in-depth shopping reports, Jumpstart connects automotive marketers with one of the largest, high-performing audiences of car shoppers and enthusiasts through partnerships with: Car and Driver,
About Hearst Autos:
Hearst Autos is the only full-service consultative resource for connecting automotive marketers with consumers from inspiration to purchase. The group brings together the enthusiast credibility of
Car and Driver and Road & Track, the performance-driven scale of Jumpstart Automotive Media’s exclusive portfolio of in-market sites, and the far-reaching consumer connectivity of Hearst’s 22 industry-leading lifestyle brands. By taking a consumer-centric approach, Hearst Autos offers manufacturers and dealers custom solutions rooted in extensive shopper data, editorial perspective, and powerful storytelling from our creative shop, the blend line™.