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Automotive Industry

Consumers Feeling Better About Branded Components - Brief Article

Automotive Industries, Sept, 2000 by Dale Jewett

Suppliers looking to boost their business with automakers might want to consider this strategy -- get better name recognition with consumers, either via increased marketing or linking up with an already established company.

The reason is that consumers put more trust in popular brand names in areas such as audio and entertainment systems, which can be a deciding factor in a purchase decision, according to the results of the Supplier Branding Study compiled by The Planning Edge of Farmington Hills, Mich.

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That interest is becoming increasingly important in the arena of telematics, notes Kathleen Rizk, managing partner of The Planning Edge. The number of respondents who believe it important to know the companies behind navigation systems, in-car computers, vehicle entertainment systems and service providers has risen dramatically from last year's survey.

"As electronics are used in more applications, consumers definitely want brand names," Rizk says.

Also, more than two-thirds of the people surveyed said they preferred a navigation system and on-board computer installed at the factory rather than purchasing one from the aftermarket.

"In this area, branding is important," Rizk says. "All of OnStar's marketing this past year has paid off, recognition of the brand has soared. This isn't saying that people are buying it, but they do recognize the brand."

Other areas that garner high consumer interest in brand names are audio systems and brakes. "Because of the bad publicity of anti-lock brakes, people want to know who made these, is it a company they trust," Rizk says. "Bosch did very well in brakes." Areas that consumers don't appear to be concerned about brand names include heating and air conditioning systems, and seats.

"Seating just hasn't been a big area, although awareness of the Recaro and Johnson Controls Inc. has increased," Rizk says.

A second phase of the study, focused on the mini sport-utility segment, will be released in September. "Those owners had such interesting responses that we broke that part of the study into a separate piece," Rizk says.

Automotive Industry

Consumers Feeling Better About Branded Components - Brief Article

Automotive Industries, Sept, 2000 by Dale Jewett

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