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Know Your Brands: Tailoring Maintenance Service by Vehicle Brand
An Analysis of Vehicle Owners’ Maintenance and
Repair Attitudes and Behaviors by Vehicle Brand
N69D-18
August 2009
Know Your Brands: Tailoring Maintenance
Service by Vehicle Brand
An Analysis of Vehicle Owners’ Maintenance
and Repair Attitudes and Behaviors by Vehicle Brand
Mary-Beth KellenbergerGlobal Program Manager, Automotive Aftermarket
Rolando Barrera
Research Analyst, Customer Research
September 23, 2009N69D-18
2N69D-18
Research Objectives
The primary objective of this research was to assess United States (U.S.) vehicle owners’ behaviors and attitudes regarding the routine maintenance of their primary vehicles at a vehicle brand level.
Supporting this primary objective, this research was designed to determine if significant variances exist between vehicle brands for:
• Minor and other maintenance service “take rates”
• Attitudes and beliefs towards minor maintenance and other maintenance services
• Service location choice
• Do-It-Yourself maintenance
• Oil change and fuel purchase behaviors
• Replacement part choices (OE vs. Aftermarket vs. remanufactured vs. salvage)
• Ownership and usage patterns for roadside assistance
• Understanding changes in attitudes and purchase behaviors toward minor maintenance and other maintenance services resulting from economic or social changes
3N69D-18
Method Details/Respondent Demographic Profile
Methodology
A web-based survey methodology was utilized.
Sample
• Frost & Sullivan partnered with a trusted web-panel based
supplier to achieve the targeted number of responses.
• Targeted 1,085 U.S. vehicle owners who have had general
vehicle maintenance performed on their primary vehicle within
the past 12 months.
• Respondents had to own or lease the vehicle and be primarily or
jointly responsible for vehicle maintenance and repair
• Responses were for primary household vehicle
• All vehicle brands were invited to participate
• Vehicles were limited to model years 1998 or less, to maximize
responses from vehicles in peak repair years
• Data was collected in April 2009.
Age of Respondents
(N=1085)
3%
16%
23%
40%
17%
0% 15% 30% 45%
17-25 Years
26-35 Years
36-45 Years
46-60 Years
Over 60 Years
Source: Frost & Sullivan
Gender
(N=1085)
58%
42%
Male Female
Employment Status
(N=1085)
45%
11%
13%
1%
18%
6%
6%
0% 15% 30% 45% 60%
Full-time
Part-time
Homemaker
Student
Retired
Unemployed
Self Employed
4N69D-18
Vehicle Manufacturers/Makes
(N=1085)
28%
20%
15%
11%
10%
8%
5%
4%
0% 20% 40%
GM
Ford
Chrysler
Toyota
Other Asian Makes
Honda
Nissan
European Makes
Vehicle Demographic Profile vs. Vehicles in Operation
Source: Frost & Sullivan
The vehicle manufacturers/brands listed below represent the research perspective throughout this document.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014 2015
% o
f V
IO P
op
ula
tio
n
GM Ford Chrysler Toyota Honda Nissan Other
Vehicle Population: Percentage of Vehicles in Operation (VIO) by Brand (United States), 2009-2015
• VIO population of survey respondents is consistent with overall U.S. VIO population
• By 2015 domestic brands GM, Ford, and Chrysler are expected to lose 2.9% of share dropping from 63.1% to 60.2%
• Toyota, Honda and Nissan are expected to gain up to 7.5% share, capturing if from domestic brands as well as European and other Asian brands.
5N69D-18
Demand for Routine Services have Also Declined. Demand Dropped an Average of 37% for Routine Services Other than Engine Oil Change
Most Recent Minor Maintenance Performed
95%
48%
42%
26%
8%
100%
94%
76%
59%
0% 20% 40% 60% 80% 100%
Engine Oil Change
Air Filter Change
Tire Rotation
Tire Balance
Other
2008 (N=1085) 2006 (N=526)
“Source: Frost & Sullivan"
Q1: Considering the most recent minor scheduled maintenance that was performed on your vehicle, which of the following types of maintenance were performed?
Note: Multiple mention question.
2009
Key Take Away: Overall, vehicle owners adhere to their vehicle’s minor maintenance schedules –
with oil changes performed more frequently compared to other types of minor maintenance.
6N69D-18
Vehicle Brand had Very Little Influence on Service “Take Rates”
Percentage of Vehicle Owners by Brand Who Completed Service in Last 12 months (United States), 2009
• Generally, the service demand sequence for these minor services is similar across vehicle brands
• There are very similar “take rates” for engine oil but as well for air filters and tire rotation services across brands
• Honda owners and European brand vehicle owners have stronger association between engine oil change and air filter change
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Engine Oil Air Filter Tire
Rotation
Tire
Balance
Other
GM
Ford
Chrysler
Toyota
Honda
Nissan
European
Other Asian
7N69D-18
Frequency of Minor Maintenance
Frequency of Minor Maintenance Performed Within Past 12 Months
(N=1085)
6%
73%
76%
84%
78%
24%
21%
14%
16%
3%
3%
2%
0% 20% 40% 60% 80% 100%
Engine Oil Change
Air Filter Change
Tire Rotation
Tire Balance
0-2 Times 3-4 Times More than 4 times
Source: Frost & Sullivan
S7: Within the past 12 months, approximately how many times did you have the following types of minor maintenance performed on you vehicle?
Key Take Away: Overall, vehicle owners adhere to their vehicle’s minor maintenance schedules –
with oil changes performed more frequently compared to other types of minor maintenance.
8N69D-18
Locations of Minor Maintenance Work
Location of Most Recent Minor Maintenance Work
24
19
46 6
21
3
13
27
10
4 46
17
4
19
30
16
46
47
19
6
31
12
46
36
25
2
0
10
20
30
40
My Vehicle
Dealer
An
Independent
or Franchise
Repair Shop
Gas Station
Service
Center
Mass
Merchant
Retailer or
Department
Store Chain
Automotive
Retailer With
Service Bays
Service
Center that
Specializes in
Lube, Oil,
and Filter
Changes
Tire Company
Chain
Did It Myself
(DIYers)
Engine Oil Change (N=1028) Air Filter Change (N=524) Tire Rotation (N=458) Tire Balance (N=277)
Source: Frost & Sullivan
Q2: Where did you have your most recent (minor maintenance) performed?
Perc
en
t o
f F
req
ue
nc
ies
Key Take Away: The largest proportion of vehicle owners depend on their dealerships to perform minor maintenance.
9N69D-18
General Motors Vehicle Owner Minor Maintenance Services by Channel
Locations for Minor Maintenance Work - GM
(N=303)
21
16
47 7
23
3
14
23
10
4
86
19
3
27
2118
3
7
3
8
23
9
25
17
35
25
29
2
0
10
20
30
40
My Vehicle
Dealer
Independent
or Franchise
Repair Shop
Gas Station
Service
Center
Mass
Merchant
Retailer or
Departement
Store Chain
Automotive
Retailer with
Service Bays
Service
Center that
Specializes in
Lube, Oil,
and Filter
Changes
Tire Company
Chain
Did it Myself
Engine Oil Change Air Filter Change Tire Rotation Tire Balance
Source: Frost & Sullivan
Q2: Where did you have your most recent minor maintenance performed?
Perc
en
t o
f F
req
ue
nc
ies
Among GM Owners
Key Take Away: The largest proportion of GM owners trust tire company chains to perform tire-related maintenance over other and/or their own dealers.
10N69D-18
Honda Vehicle Owner Minor Maintenance Services by Channel
Locations for Minor Maintenance Work - Honda
(N=84)
42
14
62 1
21
14
51
2
9
2 4
19
2 4
42
74 4 4
139 7
42
4 40
48
19
8
0
20
40
60
My Vehicle
Dealer
Independent
or Franchise
Repair Shop
Gas Station
Service
Center
Mass
Merchant
Retailer or
Departement
Store Chain
Automotive
Retailer with
Service Bays
Service
Center that
Specializes in
Lube, Oil, and
Filter
Changes
Tire Company
Chain
Did it Myself
Engine Oil Change Air Filter Change Tire Rotation Tire Balance
Source: Frost & Sullivan
Q2: Where did you have your most recent minor maintenance performed?
Perc
en
t o
f F
req
ue
nc
ies
Among Honda Owners
Key Take Away: The largest proportion of Honda owners trust their dealers to perform the surveyed minor vehicle maintenance work.
11N69D-18
Dealership Loyalty for Minor Maintenance by Vehicle ManufacturerBrand
Minor Maintenance Performed At Vehicle Dealer Since Purchase of Vehicle
(N=1085)
67%
55% 54%50% 49%
45%43%
38%
0%
20%
40%
60%
80%
Honda European
Makes
Ford Nissan "Other"
Asian Makes
Chrysler GM Toyota
Source: Frost & Sullivan
Q3: From the time you acquired your vehicle, did you ever have minor scheduled maintenance performed at your vehicle dealership?
Key Take Away: Significantly more Honda owners return to their dealership for minor maintenance compared to other vehicle
owners. Conversely, only 38 percent of Toyota owners have returned to their dealership.
12N69D-18
Important Features Contributing to Selection of Engine Oil Change at Dealership:
Percent Extremely/Somewhat Important
80%
93%
100%
88%
100%100%
89%93%
86% 88%
80% 80%
89%
60%
88%86%
78% 78% 80%82%
100%
10%
85%80%
10%
67%
50%
80%
10%
100%
60%
85% 86%
50%
100%
0%
20%
40%
60%
80%
100%
It is conveniently
located
Its hours of operation fit
my schedule
It offers very competitive
rates
It offers the best value
for money
The service personnel
explain things to me in
terms I can understand
Ford GM Chrysler Toyota Honda Nissan European Makes Other Asian Makes
Features that Drive Dealership Loyalty for Oil Change
Source: Frost & Sullivan
Q2A. Please indicate how important each of the following is as to why you selected to have your most recent engine oil change performed at your dealership.
13N69D-18
Influencing Factors for Selecting Dealership for Engine Oil Change
Q2A1: How did you choose the dealership for your most recent engine oil change?
Source: Frost & Sullivan
Influencing Factor for Why Dealership Was Selected for Most Recent Engine Oil Change
65%
18%
8%3%
0%
8%
82%
3%8%
0% 0%5%
63%
3%
13%10%
3%7%
73%
12%9%
0%3% 3%
71%
6%
12%
3% 3%6%
55%
18%
9%
0%
9% 9%
62%
16%
0%
23%
0% 0%
75%
4%7%
11%
4%0%
0%
20%
40%
60%
80%
100%
Previous ExperiencePerception About the
Location
Friend
Recommendation/Word
of Mouth
Internet Telephone Other Advertising
Ford (N=214) GM (N=303) Chrysler (N=167) Toyota (N=117)
Honda (N=84) Nissan (N=50) European Makes (N=44#) Other Asian Makes (N=106)
Key Take Away: Past behavior tends to indicate future behavior. Thus, if a customer has a good experience with an engine
oil change at their dealership, that experience will likely influence their decision to return to the dealership.
Secondary point: More GM owners are influenced by their previous dealer
experience to return to the dealership,
compare to other vehicle owners.
14N69D-18
Other Maintenance Services Recently Performed
Other Types of Maintenance Performed Within the Past 12 Months
(N=1085)
49%
29%
23%
20%
17%
17%
15%
0% 20% 40% 60%
Brake Service or
Inspection
Transmission Maintenance
Engine Cooling System
Maintenance
Air Conditioning System
Maintenance
Fuel Injection Service
Suspension System
Maintenance
Muffler and Exhaust
Service
Source: Frost & Sullivan
Q4: Thinking about other scheduled maintenance or mechanical repairs you have had performed on your vehicle, which of the following types of other scheduled
maintenance or repairs were performed within the past 12 months?
Key Take Away: Brake service or inspection is the most performed other maintenance.
15N69D-18
Dealers and Independents Capture Majority of Other Maintenance Service Work
Locations for Other Maintenance Work
3229
10 95 4
37
28
8 6 53
43
25
5 6 7
0
37
23
0
5 5 4
32 31
10
5 53
3531
64
8
2
35
27
8 7 6
1
0
20
40
60
My Vehicle
Dealer
Independent or
Franchise Repair
Shop
Did it Myself Automotive
Retailer with
Service Bays
Gas Station
Service Center
Mass Merchant
Retailer or
Department
Store Chain
Fuel Injection Service (N=182) Transmission Maintenance (N=310)Air Conditioning (N=213) Engine Cooling System Maintenance (N=252)Brake Service or Inspection (N=530) Muffler and Exhaust Service (N=166)Suspension System Maintenance (N=182)
Source: Frost & Sullivan
Q5: What type of vehicle maintenance service provider performed your most recent other maintenance or repair?
Perc
en
t o
f F
req
ue
nc
ies
Key Take Away: Vehicle dealers are the most popular location for other maintenance work.
However, independent or franchise repair shops pose threats to dealers.
16N69D-18
Ford Vehicle Owner Location Choice for Other Maintenance Service
Locations for Other Maintenance Work - Ford
(N=214)
26
32
5
2
6
15
36
27
9
0
5
9
34
20
6
0
6
11
0
20
40
My Vehicle Dealer Independent or
Franchise Repair
Shop
Gas Station
Service Center
Mass Merchant
Retailer or
Departement Store
Chain
Automotive
Retailer with
Service Bays
Did it Myself
Brake Service or Inspection Muffler & Exhaust Service or Inspection Suspension System Service
Source: Frost & Sullivan
Q5: What type of vehicle maintenance service provider performed your most recent other maintenance service?
Perc
en
t o
f F
req
ue
nc
ies
Among Ford Owners
Key Take Away: For brake service or inspection, nearly one-third of Ford vehicle owners trusts independent or franchise repair shops. However, roughly the same proportion trust Ford dealers to perform their muffler/exhaust service/inspection and
suspension system service than any other service provider.
17N69D-18
General Motors Vehicle Owner Locations for Other Maintenance Work
Locations for Other Maintenance Work - GM
(N=303)
29
34
5
24
12
33
5
0
3
8
27
33
2 2
1012
38
0
20
40
My Vehicle Dealer Independent or
Franchise Repair
Shop
Gas Station
Service Center
Mass Merchant
Retailer or
Departement Store
Chain
Automotive
Retailer with
Service Bays
Did it Myself
Brake Service or Inspection Muffler & Exhaust Service or Inspection Suspension System Service
Source: Frost & Sullivan
Q5: What type of vehicle maintenance service provider performed your most recent other maintenance service?
Perc
en
t o
f F
req
ue
nc
ies
Among GM Owners
Key Take Away: The largest proportion of GM owners selected an independent or franchise repair shop for brake service/inspection, muffler/exhaust service/inspection, and suspension system service.
18N69D-18
Other Asian Vehicle Owner Locations for Other Maintenance Work
Locations for Other Maintenance Work - Other Asian Makes
(N=106)
35
24
6 6
12
6
37
21
5
0
11
5
52
20
40
4 4
33
24
6
0
12
6
0
20
40
60
My Vehicle Dealer Independent or
Franchise Repair
Shop
Gas Station
Service Center
Mass Merchant
Retailer or
Departement Store
Chain
Automotive
Retailer with
Service Bays
Did it Myself
Fuel Injection Service Transmission Service A/C System Service Engine Cooling System Service
Source: Frost & Sullivan
Q5: What type of vehicle maintenance service provider performed your most recent other maintenance service?
Perc
en
t o
f F
req
ue
nc
ies
Among Owners of Other Asian Makes
Key Take Away: For all other maintenance work shown below, the largest proportion of other Asian make owners trusted their dealers over other repair locations.
19N69D-18
Q8: Of the following statements, how would you rate your level of agreement?
Source: Frost & Sullivan
Note: Multiple mention question.
Attitude towards Scheduled Vehicle Maintenance:
Percent Stronly Agree/Somewhat Agree
63%
16%
33%
41% 42%
73%
18%
31%
43%
32%
64%
19%
28%32% 35%
85%
16%
39%42%
29%
86%
20%
35% 34%
20%
70%
5%
20%25%
37%
89%
18%
30%
40%
20%
80%
21%
30%
45%50%
0%
20%
40%
60%
80%
100%
I Would Perform Other
Scheduled Maintenance
Because it is
Recommended in the
Owner's Manual Provided
By my Manufacturer
I Would Not Perform Other
Scheduled Maintenance
Until There is a Vehicle
Breakdown
I Would Not Perform Other
Scheduled Maintenance
Until There is Noticable
Indication of Reduced
Performance - Reduced
Acceleration, Balding
Tires, Unpleasant Vehicle
Noises or Vibrations etc.
I Would Not Perform Other
Scheduled Maintenance
Until I Have Saved Enough
Money to Cover the
Expenses
I Have my Own Ideas
About What the
Time/Milage Interval
Between Scheduled
Maintenance
Ford (N=94) GM (N=102) Chrysler (N=78) Toyota (N=46#)
Honda (N=35#) Nissan (N=20#) European Makes (N=27#) Other Asian Makes (N=40#)
Across Vehicle Brands, Owners have Similar Attitudes Towards Scheduled Vehicle Maintenance
Key Take Away: The majority of all vehicle owners agree they would perform other scheduled maintenance because it is recommended in the owner’s manual, especially European make owners.
20N69D-18
Attitude Towards Vehicle Maintenance Behaviors:
Percent Stronly Agree/Somewhat Agree
58%53%
61%
51%46%
61% 61%
67%
52% 51%
67% 66%
54% 56% 55%
69%
63%
52%
41%
56%
74%
49%
64%
38%
52%56%
50%
57%
31%
52%
41%
50%
56% 54%59%60%
68%
62% 61%56%
0%
20%
40%
60%
80%
The Fluctuating Gas
Prices and Tight
Economy Have Made me
Look for Ways to Cut
Down on Other Types of
Vehicel Related
Expenses
I Increased the Amount
of Attention I Pay to my
Tire Pressure to
Improve Fuel Efficiency
I Have Reduced Other
Activities (e.g., Eating
Out, Going to the
Movies, Concerts, etc.)
The Fluctuating Gas
Prices and Tight
Economy Have me Look
For Ways to Cut Down
on Maintenance Costs
I Conscientiously Have
Reduced my Speed
When Driving to Reduce
Fuel Consumption
Ford GM Chrysler Toyota Honda Nissan European Makes Other Asian Makes
Q9: We would like you to think about your vehicle maintenance behaviors during the past 2-3 years, and for the following statements, please rate your level of agreement?
Source: Frost & Sullivan
Across Vehicle Brands, Owners Have Similar Attitudes and Behavior Responses to Challenges Put Forth by the Economy
21N69D-18
Q9: We would like you to think about your vehicle maintenance behaviors during the past 2-3 years, and for the following statements, please rate your level of agreement?
Source: Frost & Sullivan
Note: Multiple mention question.
Attitude Towards Vehicle Maintenance Behaviors:
Percent Stronly Agree/Somewhat Agree
18%
32%
24%28%
15%
11%
23%
32%30%
32%
21%
6%
19%
32%
44%
32%
21%
5%
28%30% 31%
24%
31%
8%
33%
20%
30%
23%
17%
10%
22%
14%
25%28%
6%
0%
50%
44%
29%32%
15%
24%
34%
16%
35% 34%
24%
11%
0%
20%
40%
60%
Wherever it is
Available I Try to Use
Eco-friendly Fuels
Like Ethanol
I Have Used
Chemicals/Additives
for This Vehicle to
Enhance the Engine
Performance
As a Means of Saving
on Repair Costs, I
Have Increased the
Length of Time
Between Maintenance
Intervals
I Have Changed my
Work Location or
Activities So I Drive
Less
As a Means to Save
on Costs, I Am More
Likely to Buy
Maintenance
Consumables Like
Engine Oil/Filters etc.
in Bulk
I Have Recenty
Purchased a More
Fuel Efficient Vehicel
(e.g., Hybrid, Diesel,
Scooter, etc.) for
Commuting
Ford GM Chrysler Toyota Honda Nissan European Makes Other Asian Makes
Across Vehicle Brands, Owners Have Similar Attitudes and Behavior Responses to Challenges Put Forth by the Economy
22N69D-18
Replacement Parts Preferences
38%
14% 13%15%
7%
37%
15%12%
14%
5%
34%
17%14% 13%
7%
44%
16%13%
11%
3%
48%
21%
5%
10%
4%
40%
18%
8%
14%
6%
45%
9%
14%
9%
2%
29%
16%18%
16%
4%
0%
20%
40%
60%
Original Equipment (OE)
Replacement Parts (i.e.
Ford, GM, Toyota etc.)
I Have Not Purchased
Replacement Parts for
my Vehicle
Aftermarket National
Brands (i.e. Bosch,
DENSO, TRW, Moog,
etc.)
Whatever the
Dealership/Installer
Uses
Whatever is Available
Ford (N=214) GM (N=303) Chrysler (N=167) Toyota (N=117)
Honda (N=84) Nissan (N=50) European Makes (N=44#) Other Asian Makes (N=106)
Q21: When selecting replacement parts for your vehicle, which of the following do you primarily select?
Source: Frost & Sullivan
All Owners Demonstrate Strong Preference for OE Replacement Parts
Key Take Away: The largest proportion of vehicle owners selects original equipment replacement parts when performing repairs
or maintenance.
23N69D-18
Strategic Conclusions
• When it comes to service “take rates” and general attitudes and behaviors toward maintenance and repair, vehicle owners are similar across brands.
• The changes in the economy did not produce significant differences in how owners of different brands behaved.
• Demographics
• Job loss
• Vehicle type were stronger indicators than brand.
• The factors most influenced by brand were service channel and maintenance service types:
• The dealer is still the strongest channel across all brands for light maintenance and other repairs
• Asian vehicle owners and especially Honda vehicle owners were very loyal to the dealership channel
• The strongest threat to GM and Ford dealerships are the independent repairers for both maintenance services and other repairs. Convenience and confidence are the strong draw for that channels
• All owners of all vehicle brands were showing use of service specific centers; (LOF for oil changes and tire chains for tire rotation and balancing) but usage was stronger amongst domestic brand vehicle owners
24N69D-18
Recommendations
• All brand owners showed an increased tendency to increase the interval between maintenance and repair services.
• Declining job counts
• Declining value per job
• Reduced opportunities for inspection/identification of other issues
• Asian brand vehicle owners are still loyalty to the dealership channel because of their confidence in the quality of the service. Asian brand vehicle owners are less motivated by convenience than domestic brands
• European brand vehicle owners are showing strong agreement with environmental statements
• OE brands are the primary choice for all vehicle brands but domestic vehicle owners as well as “other Asian brand vehicle owners” appear to be more open to other types of parts. Investigate alternatives products for alternative vehicles.
• No matter what the vehicle brand, owners are adopting similar methods for dealing with the economic downturn. Cost saving promotions should be directed to all makes/models
25N69D-18
Next Steps
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26N69D-18
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Other?
Please inform us by taking our survey.
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27N69D-18
For Additional Information
Rolando Barrera
Research Analyst
Customer Research
Tel: 210-247-2465
E-mail: [email protected]
Mary-Beth Kellenberger
Global Program Manager
Automotive Aftermarket
Tel: 416-490-1997
E-mail: [email protected]
Jake WengroffGlobal Director
Corporate Communications
Tel: 210-247-3806
E-mail: [email protected]