Changing what drives consumers

With big gains in sales reported by most auto manufacturers for April (see this Media Post Marketing Daily story), car makers are offering significant incentives for May in an effort to keep that momentum (see this note from PR Newswire).

Implications: While the industry has made great strides in solving its over-supply problem (manufacturing more vehicles than the market can reasonably be expected to buy at full price), it still seems like the automotive world is very incentive-centric. Perhaps once reduced production capacity has filtered-down into a more realistic supply, things like distinct product, dealership service, and transaction experience will hold more influence in the vehicle purchase.

This category is a great example of how difficult it can be to restore a sense of distinction in an industry that has for so long allowed itself to be driven by price… very generally speaking.

Mike Anderson