Car Buyers Record Great Value
SAN DIEGO--Sept. 9, 2002--Unprecedented incentives to revive the auto industry post-September 11 and great products gave consumers a real value bonanza. That shows up in dramatic increases across the industry on Strategic Vision's 2002 Total Value Index(TM) (TVI). The index, calculated annually by the San Diego-based research firm, correlates all economic issues against the quality of the ownership experience.While the Japanese continued to dominate, led by Toyota's strength in truck categories, the Korean brands gained a firm foothold. Backed by a strong warranty and improved products, Hyundai and Kia offer their owners real value, not just cheap pricing.
However, a European product, the Mini Cooper (831) topped the Total Value Index(TM). Its owners found outstanding quality combined with affordability and a high expected resale value. "A vehicle from the BMW family starting under $20,000 gets people really excited," says Strategic Vision vice president Daniel Gorrell.
Despite heavy incentives, the domestics had only one winner. The Oldsmobile Aurora headed the list of Larger Cars that consists of only domestics. Among all vehicles the Chevrolet Corvette coupe at 805 was the only American vehicle ranked in the top 10.
More than 76,000 buyers rated the following vehicles the best values in their segments:
Small Car Honda Insight 774
Compact Car Hyundai Sonata 764
Mid-Size Car Volkswagen Passat 795
Larger Car Oldsmobile Aurora 740
Small Specialty (<$25,000) Mini Cooper 831
Mid-Specialty Car Honda Accord Coupe(a) 790
Near-Luxury Car Mercedes Benz C-Class 808
Luxury Car Lexus LS 430 813
Convertible (<$30,000) Mazda Miata MX-5 754
Convertible (>$30,000) Audi TT 812
Minivan Kia Sedona 747
Small SUV Honda CR-V /
Hyundai Santa Fe(a) (tie) 782/781
Medium SUV Toyota 4Runner 748
Large SUV Toyota Sequoia(a) 745
Luxury SUV Lexus RX 300(a) 790
Compact Pickup Toyota Tacoma(a) 718
Full-Size Pickup Toyota Tundra(a) 745
(a)2001 Total Value Award(TM) winners
Strategic Vision calculates TVI by assessing both immediate economic rewards (value for the money, affordability, price/deal offered, warranty and standard equipment level) and anticipated value (durability, future trade-in, mileage, economical to own and reliability). These scores are then considered against measures of the total perceived ownership experience.
"The judgment of value is created when vehicles generate emotional commitment by delivering a positive ownership experience," says Dr. Darrel Edwards, Strategic Vision president. "Being inexpensive is not required or sufficient to create a strong sense of value. The quality of the ownership experience has to be calculated in the value equation."
Lexus was the top-scoring brand (790), followed by mostly European brands in the top 10. Volkswagen, the only non-luxury brand in the top 10, continued to lead both full-line corporations (764) and brands $22,000 - $30,000 (759). Hyundai (758) retained its lead in brands under $22,000, while Jeep, gaining 67 points, was the most improved brand.
"Value is far more than price," says Gorrell. "That's why incentives alone didn't make the domestics Total Value leaders. The Koreans, for example, didn't score well in value when the major incentive was a cheap price. Now that they offer a quality ownership experience backed by the security of a strong warranty, they're heading for the top."
Owners who participated in the study purchased their new vehicles between October 2001 and March of 2002. They had at least 90 days to experience their vehicles before they were surveyed. All Total Value Award(TM) winners had to be 2002 models.
The top ten scoring vehicles are:
MODEL TVI MEDIAN PRICE
Mini Cooper 831 $21,000
Volkswagen Beetle 820 $21,000
Lexus LS 430 813 $58,600
Audi TT* 812 $38,000
Mercedes Benz C-Class 808 $36,500
Acura RSX 807 $23,400
Chevrolet Corvette(a) 805 $45,000
BMW 5-Series 803 $46,000
Volkswagen GTI 799 $22,500
Volvo S60 796 $34,000
(a)Excludes convertibles
Strategic Vision is a pioneer in measuring the complete ownership experience, including the emotional impact that drives satisfaction. It has calculated the Total Quality Index(TM) annually since 1995, and the Total Value Index(TM) since 1996. Additionally, the firm's Problem Impact Measure(TM) gauges the impact of defects on buyers' perception of quality. A Customer Delight Index(TM) to understand the dynamics that make vehicles exceptional is in development.
Founded in 1986, the company conducts leading-edge research in consumer and constituent decision-making for diverse companies. Clients include various auto manufacturers, as well as many Fortune 100 companies and governments worldwide.
For further information, contact Daniel Gorrell at 714/544-3466, Dr. Darrel Edwards or Alexander Edwards at 858/576-7141
