Why Are African Americans Five Times More Likely to Purchase a Chrysler 300 Than...

Why Are African Americans Five Times More Likely to Purchase a Chrysler 300 Than Other Ethnic Groups? ''It's in their vehicle DNA,'' says Strategic Vision

SAN DIEGO--(Business Wire)--"Driver's desires, needs and attribute priorities are called the
customer's vehicle DNA," according to Alexander Edwards, Strategic
Vision President of Automotive. "When you understand the emotional
payoff delivered by each vehicle attribute measured against the
customer's vehicle DNA, you will know why an African American views
the Chrysler 300 as a vehicle of choice while an Asian American
chooses an Acura MDX or BMW 3-Series (accounting for price). This
understanding can provide automotive manufacturers with the knowledge
of how to create the right product and communicate the right messages
that will sell more vehicles, build brand equity, increase customer
advocacy and develop future loyalty and retention."

Everyone wants a great deal on a quality vehicle that meets his or
her needs and desires (e.g. affordable with great styling, performance
and innovation). However, according to Dr. Darrel Edwards, CEO and
Founder of Strategic Vision, "Attitudes, images and personal values
ranging from desired security and trust to displaying one's
individuality and success are distinctive in that they differ in the
strength or magnitude of their importance among ethnic groups. When
the essences of these values are accurately addressed in product,
communication and dealership, the best opportunity to capture shopping
and purchasing interests and priorities becomes available."

Differences that clearly stand out with African Americans are
greater desires for success and the ability to show it. African
Americans are much more likely to advocate vehicles that express their
individuality and success to family and friends. Latinos have a
greater concern for the impact on the environment while also
exhibiting a greater desire to experience exhilarating driving and
performance than others. Asian Americans have stronger demands for a
balanced, complete vehicle performance and style that matches their
lives.

"Understanding the hearts and minds of the ethnic buyer is
relevant for the entire automotive industry as the likes and
preferences of African Americans, Asian Americans and Latinos are more
likely to shape opinions in the US," reports Christopher Chaney,
Director of Special Projects for Strategic Vision. "For example, the
true or pure innovators (sometimes called early adopters) - those
whose reactions usually best predict the success of new and innovative
ideas and products - are more likely to be African Americans (11%) and
Latinos (13%) while only 6.5% of Caucasians and Asians see themselves
as true innovators."

So what is the essence of the images that the ethnic profiles of
the African American, Hispanic and Asian communities are looking for?
When examining Strategic Vision's New Vehicle Experience Study
(NVES(TM)) some trends become clear. African Americans are attracted
to vehicles that are Powerful and Classy (e.g. Chrysler 300). Hispanic
buyers look for Aggressive and Powerful, but Confident and Protective
vehicles (e.g. Kia Sedona). Asian buyers, looking for the "complete"
package, choose vehicles that are Pleasant yet Powerful, Easy Going
yet Protective - all with modern design and technology (e.g. Acura
MDX).

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Top Characteristics of New Vehicle Purchased By...
African American Buyers
Top Characteristics Col% (a) Index (b)
Cute 23% 266 (c)
Leader 18% 190
Aggressive 13% 158
Bold 16% 156
Honest 15% 150
Powerful 35% 145 (c)
Energetic 21% 140 (c)
Easy going 19% 138
Classy 36% 132 (c)

Hispanic Buyers
Top Characteristics Col% (a) Index (b)
Aggressive 21% 250 (c)
Carefree 13% 167
Leader 15% 162
Powerful 37% 154 (c)
Bold 14% 137
Easy going 19% 134
Competitive 13% 134
Confident 29% 130 (c)
Protective 27% 121 (c)

Asian Buyers
Top Characteristics Col% (a) Index (b)
Athletic 17% 272
Pleasant 35% 236 (c)
Easy going 31% 221 (c)
Helpful 19% 187
Cute 12% 138
Powerful 32% 133 (c)
Protective 27% 122 (c)
Aggressive 10% 120
Modern 33% 119 (c)

(a) Col % is what percent reported their vehicle having this
characteristic (e.g. 23% of all African Americans reported they
purchased a Cute vehicle).
(b) Index score is magnitude of ethnic representation (e.g. African
Americans are almost 2x likely to purchase a vehicle with Leadership
(Index 190) imagery).
(c) Characteristics that signify a strong attraction for vehicles with
this ethnic group.
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How do the various manufacturers rate in meeting the desires of
the ethnic communities? One rating used throughout the industry is
Strategic Vision's Total Quality Index (TQI). TQI captures the more
complete experience buyers have with his or her vehicle including
rational and emotional connection. TQI calculates the owners'
responses to product weighted by the overall emotional response that
the experience creates and transforms the responses to a 1000 point
scale for comparisons. Following is an array of TQI scores for luxury
and non-luxury brands that were leaders for the various ethnic
communities in 2007:

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2007 Strongest Brands Among Minority New Vehicle Buyers (a)
African American Buyers
Luxury Brand/Model TQI
Lexus 938
Mercedes-Benz 918
Infiniti 913
Infiniti FX 952
Mercedes R-Class Wagon 942
Chrysler 300C 941

Standard Brand/Model TQI
Honda 895
Ford 889
Chevrolet 889
Chrysler PT Cruiser 929
VW Passat 912
Ford Fusion 906

Hispanic Buyers
Luxury Brand/Model TQI
Mercedes-Benz 922
BMW 918
Acura 911
Mercedes E-Class 955
Infiniti G35 Sedan 940
BMW 3-Series Coupe 933

Standard Brand/Model TQI
Scion 902
Pontiac 896
Saturn 895
Kia Sedona 924
Scion xB 920
Ford Expedition 920

Asian Buyers
Luxury Brand/Model TQI
Mercedes-Benz 909
Audi 909
BMW 906
Mercedes GL-Class 931
BMW 3-Series Coupe 925
BMW X5 920

Standard Brand/Model TQI
Hyundai 871
Honda 865
Ford 858
Mazda3 Hatchback 907
Hyundai Sonata 902
Honda Civic 896

(a) TQI scores listed were for each group where adequate sample was
available for 2006-2007.
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Once personal priorities and vehicle/brand perceptions of the new
vehicle customer are understood, it becomes clearer why those of
differing ethnicities purchase the brands and models they do. For
example: for African Americans the Chrysler 300 matches their desired
imagery of being Powerful and Classy. The Chrysler 300 is also one of
the highest TQI rated vehicles for African Americans and therefore, it
should be no mystery as to why 2% of all vehicles sold to African
Americans are Chrysler 300s. In short, if you understand customer
values and provide a vehicle that delivers the right product and
message, you will sell more vehicles.

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Top Brands And Models Sold To Minority New Vehicle Buyers (1)
African American Buyers
Top Brands Volume %Index
Nissan 13% 201 (c)
Toyota 13% 83
Chevrolet 10% 89
Ford 8% 72
Honda 6% 58
Dodge 6% 109
Chrysler 5% 205 (c)
Mercedes 3% 173 (c)
Hyundai 3% 102
Kia 3% 189 (c)

Top Models Volume %Index
Nissan Altima 4% 221 (c)
Toyota Corolla 3% 127
Nissan Sentra 2% 315 (c)
Ford F-Series (F-150) 2% 84
Toyota Camry 2% 102
Chrysler 300 2% 504 (c)
Honda Accord Sedan 2% 69
Honda Civic 2% 62
Suzuki Forenza 1% 591 (c)
Chev. Silverado 1500 1% 67
Dodge Charger 1% 273 (c)
Dodge Ram 1500 1% 85

Hispanic Buyers
Top Brands Volume %Index
Toyota 15% 95
Chevrolet 11% 97
Ford 11% 102
Nissan 11% 164 (c)
Honda 10% 94
Dodge 5% 91
Jeep 3% 110
Hyundai 3% 101
Volkswagen 3% 153 (c)
BMW 3% 121

Top Models Volume %Index
Ford F-Series (F-150) 4% 127
Toyota Corolla 3% 116
Chev. Silverado 1500 3% 128
Honda Civic 2% 99
Honda Accord Sedan 2% 93
Nissan Altima 2% 131
Toyota Tacoma 2% 146
Toyota Camry 2% 76
Dodge Ram 1500 2% 114
Chevrolet Tahoe 2% 167 (c)
Nissan Sentra 2% 195 (c)
Honda CR-V 1% 93

Asian Buyers
Top Brands Volume %Index
Toyota 27% 172 (c)
Honda 22% 200 (c)
Nissan 6% 96
BMW 5% 241 (c)
Mercedes 5% 265 (c)
Lexus 4% 189 (c)
Acura 4% 236 (c)
Ford 3% 29
Hyundai 2% 85
Mazda 2% 129

Top Models Volume %Index
Toyota Camry 6% 275 (c)
Honda Civic 6% 231 (c)
Toyota Corolla 6% 235 (c)
Honda Accord Sedan 5% 181 (c)
Honda Odyssey 3% 242 (c)
Honda CR-V 3% 217 (c)
Toyota Sienna 3% 443 (c)
Honda Pilot 2% 191 (c)
BMW 3-Series 2% 299 (c)
Nissan Altima 2% 105
Toyota RAV4 2% 150 (c)
Acura MDX 1% 307 (c)

(a) Volume % is market share of each ethnic group (e.g. 13% of all
African Americans purchase a Nissan brand).
(b) Index score shows ethnic representation within brand (e.g. with
index of 201, Nissan has 2x as many African Americans as found in
macro population).
(c) Brands/models that signify a strong attraction to this ethnic
group.
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The purchase behaviors of new vehicle buyers are directly
influenced by the ability of the manufacturer and dealer to satisfy
their needs and desires. Those who understand the essence of
cross-cultural and cultural distinction will be the ones to lead the
automotive industry among the innovative and early adopters. Also, it
is through understanding the desired and chosen imagery connected to
personal values that correct messages increase sales, higher advocacy,
better retention and greater customer loyalty.

Strategic Vision is part of StrategicVision Worldwide, a
research-based consultancy with thirty-five years of experience in
understanding the consumers' and constituents' decision-making systems
for a variety of clients, including most automotive manufacturers,
American Airlines, Procter & Gamble and Coca-Cola. Its unique
expertise is in identifying individuals', groups' and societies'
comprehensive motivational hierarchies, including the descriptive
attributes, personal consequences associated with experiences, the
values and emotions that establish priorities and set motivation, and
the personal images that reveal meaning. ValueCentered(R) psychology
and methods were defined by Dr. Darrel Edwards in 1968.

For further information, contact Alexander Edwards, President
Automotive; Christopher Chaney, Director of Special Projects; Susan
Johnson, President of Strategic Vision; or Dr. Darrel Edwards, CEO at
(858) 576-7141; or visit www.strategicvision.com.

Strategic Vision
Alexander Edwards, President Automotive
Christopher Chaney, Director of Special Projects
Susan Johnson, President
Dr. Darrel Edwards, CEO
858-576-7141
www.strategicvision.com

Copyright Business Wire 2008