Luxury Models 2009 Automotive Lease Guide (ALG) Perceived Quality Study (2010 added)
08-17-09, 04:25 PM
#1
Lexus Champion
Thread Starter
Luxury Models 2009 Automotive Lease Guide (ALG) Perceived Quality Study (2010 added)
http://www.businesswire.com/portal/s...46&newsLang=en
Lexus Maintains Leadership in ALG’s Luxury Models Summer 2009 Perceived Quality Study
Luxury brands show resilience in economic downturn
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Automotive Lease Guide (ALG), a subsidiary of DealerTrack Holdings, Inc. (Nasdaq: TRAK), a leading provider of on-demand software and data solutions for the U.S. automotive retail industry, today announced that Lexus maintained its top position in ALG’s Luxury Models Summer 2009 Perceived Quality Study (PQS). Only four brands out of the 15 surveyed showed a year-over-year improvement, with Cadillac registering the strongest performance with a four-point increase in its overall score, helping it jump two places to number nine in the 2009 rankings. Mercedes-Benz, BMW, Acura, Infiniti and Porsche rounded off the top five positions in the study, which also were unchanged from the 2008 study (Infiniti and Porsche tied for fifth).
“Luxury brand value has proven to be resilient even during this severe economic downturn,” said James Clark, general manager of ALG. “However, manufacturers’ retail strategies to push volume, such as exceedingly high sales and leasing incentives, pose a threat to sustaining strong perceptions for many of these luxury brands in the future.”
Lexus’ top performance in PQS correlates with its exceptional resale and residual performance. The brand currently holds a considerable advantage in residual performance relative to the luxury average, consistently ranking in the top two in ALG’s Residual Value Awards over the past five years.
“Lexus is a repeat winner because of Toyota Motor Corporation’s dedication and focus on maintaining industry-leading manufacturing standards, market-based vehicle production that limits incentives, and providing an exceptional dealership experience in both the sales and service areas. These factors create an ideal environment for building and maintaining strong brand perception and residual performance,” said Mr. Clark.
Now in its 9th year, ALG’s PQS is based on a proprietary rating scale derived from surveys of car-owners in the U.S., which then determines the relative positions of mainstream and luxury brands. The survey includes a variety of topics ranging from attitudes towards the economy, interest in and valuation of new vehicle content, and consumer perceptions of quality.
The complete list with scores is available at https://www.alg.com/pdf/pqs_luxury_models.pdf
Luxury brands show resilience in economic downturn
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Automotive Lease Guide (ALG), a subsidiary of DealerTrack Holdings, Inc. (Nasdaq: TRAK), a leading provider of on-demand software and data solutions for the U.S. automotive retail industry, today announced that Lexus maintained its top position in ALG’s Luxury Models Summer 2009 Perceived Quality Study (PQS). Only four brands out of the 15 surveyed showed a year-over-year improvement, with Cadillac registering the strongest performance with a four-point increase in its overall score, helping it jump two places to number nine in the 2009 rankings. Mercedes-Benz, BMW, Acura, Infiniti and Porsche rounded off the top five positions in the study, which also were unchanged from the 2008 study (Infiniti and Porsche tied for fifth).
“Luxury brand value has proven to be resilient even during this severe economic downturn,” said James Clark, general manager of ALG. “However, manufacturers’ retail strategies to push volume, such as exceedingly high sales and leasing incentives, pose a threat to sustaining strong perceptions for many of these luxury brands in the future.”
Lexus’ top performance in PQS correlates with its exceptional resale and residual performance. The brand currently holds a considerable advantage in residual performance relative to the luxury average, consistently ranking in the top two in ALG’s Residual Value Awards over the past five years.
“Lexus is a repeat winner because of Toyota Motor Corporation’s dedication and focus on maintaining industry-leading manufacturing standards, market-based vehicle production that limits incentives, and providing an exceptional dealership experience in both the sales and service areas. These factors create an ideal environment for building and maintaining strong brand perception and residual performance,” said Mr. Clark.
Now in its 9th year, ALG’s PQS is based on a proprietary rating scale derived from surveys of car-owners in the U.S., which then determines the relative positions of mainstream and luxury brands. The survey includes a variety of topics ranging from attitudes towards the economy, interest in and valuation of new vehicle content, and consumer perceptions of quality.
The complete list with scores is available at https://www.alg.com/pdf/pqs_luxury_models.pdf
08-17-09, 04:26 PM
#2
Lexus Champion
Thread Starter
Methodology
ALG measures perceived quality by asking consumers to tell us what they believe about the quality of the
vehicles associated with each brand. ALG has partnered with Zogby International, a well known market
research and polling firm, to survey approximately 3,000 * 4,000 U.S. consumers biannually.
- Survey respondents are asked, among a variety of other questions, to rate the quality of the vehicles from a particular brand. The survey was tested by using questions based on specific vehicle models.
- Respondents' answers confirmed that consumer perceptions were on the brand and not the model. Respondents' scores were weighted based on familiarity or ownership with each particular brand and associated substitute brands.
- In the tracking survey, where individual drivers are examined, consumers were first asked which
components of a vehicle (engine, safety, etc.) were most important to their opinion of overall
quality, and then to rank to what extent they associate each brand with each of the components.
- They were also asked for similar rankings regarding other quality indicators (resale value, green
reputation, etc.), information sources (Consumer Reports, JDPower, etc.), and awards (North
AmericanACar of the year, Motor Trend Car of the Year, etc.
ALG measures perceived quality by asking consumers to tell us what they believe about the quality of the
vehicles associated with each brand. ALG has partnered with Zogby International, a well known market
research and polling firm, to survey approximately 3,000 * 4,000 U.S. consumers biannually.
- Survey respondents are asked, among a variety of other questions, to rate the quality of the vehicles from a particular brand. The survey was tested by using questions based on specific vehicle models.
- Respondents' answers confirmed that consumer perceptions were on the brand and not the model. Respondents' scores were weighted based on familiarity or ownership with each particular brand and associated substitute brands.
- In the tracking survey, where individual drivers are examined, consumers were first asked which
components of a vehicle (engine, safety, etc.) were most important to their opinion of overall
quality, and then to rank to what extent they associate each brand with each of the components.
- They were also asked for similar rankings regarding other quality indicators (resale value, green
reputation, etc.), information sources (Consumer Reports, JDPower, etc.), and awards (North
AmericanACar of the year, Motor Trend Car of the Year, etc.
08-17-09, 05:48 PM
#3
Guest
Posts: n/a
Wow if people percieve BMW/Benz quality on par or better than Acura/INfiniti, thats going to hurt them.
Lexus still has a big edge here. When you think Lexus, you think top quality (I am not saying they don't have problems, just agreeing with the results)
Lexus still has a big edge here. When you think Lexus, you think top quality (I am not saying they don't have problems, just agreeing with the results)
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08-18-09, 12:03 PM
#9
Lexus Test Driver
I would like to see them release data of what criteria drivers of each brand perceive as measures of "quality." It was part of their survey it looks like, but its not published. Until you see that, these are not going to be apples-to-apples comparisons.
08-19-09, 03:03 PM
#12
Lexus Champion
Thread Starter
I'm thinking that since this is a perceived quality study, perceived value has something to do with it "you get what you pay for" and so the more expensive brand benefit to a degree. The study also says that it takes 10 years for quality shifts to be ingrained in the public's perception.
08-19-09, 03:31 PM
#13
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You get what you pay for. Sure Infiniti models offer nice performance and value for the price, but they had to cut corners somewhere. You can't expect Lexus quality for Infiniti price, unless Infiniti raises their prices (which they are starting to do) and the characteristics and strengths of buying an Infiniti change.
11-01-10, 06:21 PM
#15
Update
Fall 2010 ALG Perceived Quality Study Demonstrates Rebound of Toyota's Quality Image
Toyota jumps from 6th to 2nd place, but still trails Honda by wide margin among mainstream brands
Mercedes-Benz continues to lead luxury brands
Toyota jumps from 6th to 2nd place, but still trails Honda by wide margin among mainstream brands
Mercedes-Benz continues to lead luxury brands
SANTA BARBARA, Calif., Nov. 1, 2010 /PRNewswire/ -- ALG, a subsidiary of DealerTrack Holdings, Inc. (Nasdaq:TRAK - News) and the industry benchmark provider of residual values and depreciation data, today announced that Toyota's Perceived Quality Score (PQS) registered a sharp 5% increase in the last 6 months, with the carmaker bouncing back to 2nd place from 6th among mainstream brands in ALG's Fall 2010 Perceived Quality Study. Dodge Cars (up 4%) and Jeep (up 3%) were the other 2 mainstream brands that showed the most improvement over their Spring 2010 scores. Among luxury brands, Jaguar notched a 5% gain, although its PQS remains relatively low at 62.4.
With a PQS of 81.4 and a 10.7 point lead over Toyota (70.7), Honda continued its dominance over all other mainstream brands. The 3rd, 4th and 5th-place brands – Ford Trucks (69.9), Nissan (69.0) and Subaru (68.9) – are tightly bunched behind Toyota.
Mercedes-Benz again was the top-ranked luxury brand with a PQS of 83.9, slightly increasing its lead over runner-up Lexus in the last 6 months, which remained steady with an 81.9 PQS. BMW (81.6), Porsche (80.2) and Acura (77.4) rounded out the top 5 in the luxury category.
"The significant recovery for Toyota, which saw a dramatic 20% PQS drop in Spring 2010 due to quality issues and massive recalls, can be attributed to marketing around vehicle safety, strong customer loyalty and good service," said Eric Lyman, OEM Practice Director at ALG. "At Jaguar, recent design transitions have fostered a stronger emotional connection with the consumer, leading to an improvement in the perception of the brand."
Since the inception of ALG's PQS in the Spring of 2008, the biggest gains have been achieved by Ford Cars, Ford Trucks, Hyundai, Kia and Jaguar, respectively. The biggest declines in PQS over that period have been registered by Toyota, Saturn, Saab, Lexus and Scion, respectively.
ALG's PQS measures consumers' perceptions and beliefs about the quality of automobile brands in the U.S. market. A negative perception about a brand can prevent shopping and consideration of a brand's complete model lineup. Alternatively, a positive belief about a brand can sometimes overcome poor quality. Working with survey partner Zogby International, ALG calculates the scores based on a proprietary rating scale derived from surveys of car and truck owners, which then are used to determine the relative positions of mainstream and luxury brands. The complete list with scores is available at http://www.alg.com/pdf/pqs_2010_fall.pdf.
About ALG (www.alg.com)
Based in Santa Barbara, California, ALG is a leading provider of data and consulting services to the automotive industry. ALG publishes the "Automotive Lease Guide" – the standard for Residual Value projections in North America, and has been forecasting automotive residual values for over 45 years in both the U.S. and Canadian markets. ALG is a part of DealerTrack Holdings, Inc. (Nasdaq:TRAK - News).
About DealerTrack (www.dealertrack.com)
DealerTrack's intuitive and high-value software solutions enhance efficiency and profitability for all major segments of the automotive retail industry, including dealers, lenders, OEMs, agents and aftermarket providers. Our solution set for dealers is the industry's most comprehensive. DealerTrack operates the industry's largest online credit application network, connecting more than 17,000 dealers with over 900 lenders. Our Dealer Management System (DMS) provides dealers with easy-to-use tools and real-time data access that will streamline any automotive business. Dealers using DealerTrack AAX get the inventory management tools and services needed to accelerate turns and increase profits. Our Sales and F&I solution enables dealers to streamline the entire sales process while structuring all types of deals from a single integrated platform. DealerTrack's Compliance solution helps dealers meet legal and regulatory requirements and protect their hard-earned assets. DealerTrack's family of companies also includes data and consulting services providers ALG and Chrome Systems. For more information, visit www.dealertrack.com.
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding ALG's Perceived Quality Study, including its uses, and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of DealerTrack to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.
Factors that might cause such a difference include the reliability of the survey data, the sample size, changes in consumer opinions and other risks listed in our reports filed with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2009. These filings can be found on DealerTrack's website at www.dealertrack.com and the SEC's website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and DealerTrack disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.