Car Buying Research

From my email:

Upscale Consumers Prefer to Trade Down to Hybrids

If you own a Lexus, you are more likely to swap or supplement it with a Prius or other hybrid than any other non-luxury car, per a new study.

The report, released on March 4 by Acxiom, a marketing services firm in Little Rock, Ark., found luxe car owners were more than twice as likely to downgrade to a hybrid than a standard non-luxe model.

The survey found, not surprisingly, that such consumers are willing to make the trade to make a statement about their commitment to the environment. Hybrids typically cost $6,000 or more than non-hybrid versions of the same models and boast better gas mileage, which makes them more environmentally friendly.

The study also found that hybrid buyers are more interested in science, reading science fiction, music collections and camping than those who are not as likely to buy a hybrid. Hybrid buyers also tend to live on the coasts and are twice as likely to have a household income of $125,000 or more than those who buy gasoline-powered cars.

"The media mix and placement for the hybrid versions of these vehicles needs to be different than the traditional version," said Tim Longnecker, auto industry executive at Acxiom. "I don't think there's a true understanding of what this consumer looks like."

The study also compared hybrid buyers to buyers of high-tech gadgets like the iPhone. Both products are desirable and come with higher price tags, which gives their buyers "in-crowd" status.

Hybrids last year represented 2.6% of a total of 351,000 vehicles sold in the U.S., per Power Information Network, Westlake Village, Calif. They are projected to make up 6% of sales by 2012. U.S. adspend on hybrid vehicles increased 41% to $215 million through November (not including online), per Nielsen Monitor-Plus, with the highest spend coming for Toyota's Prius, at $51.9 million.

(Source: Brandweek, 3/5/08)

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