Can a Ford beat a Toyota in Total Value? Yes! Although Ford Motor
Company obtained only four Total Value leadership positions over the
past four years, in 2007 Ford has added three additional wins to its
collection: the Lincoln MKX, Ford Edge and Expedition EL. The Lincoln
MKX is especially worthy, as it outscored the undefeated Lexus RX350.
Although the Lexus brand name offers its customers a stronger belief
in reliability and durability, the MKX product characteristics and
features, specifically in areas as interior design, quality and
roominess, offered at a lower price, makes each dollar spent on the
MKX a better choice than the RX350.
The San Diego-based research firm Strategic Vision today announced
the 2007 Total Value Index(TM) (TVI) results, based on the ratings of
new vehicle owners. The calculation of TVI incorporates explicit
statements that owners make about value (e.g. expected reliability,
expected fuel economy, price paid, expected resale value, etc.). TVI
also incorporates the importance of the variables that make up the
ownership experience, and it is here that Strategic Vision finds "True
Value" -- the worth of the attribute weighed against the costs.
Toyota Motor Sales is still the company to beat in customer value;
they have had 20 leaders in Strategic Vision's Total Value Index(TM)
(TVI) over the past four years. In 2007 they add four more, three for
Toyota (Yaris, Yaris hatchback and 4Runner) and one for the Lexus
LS430 (the leader in its segment since 2004). "Toyota has preached
their foundational messages of quality and reliability consistently
over many years, and customers have responded by placing their trust
and their money into Toyota products, making Toyota the juggernaut it
is today," says Dr. Darrel Edwards, Founder and CEO of Strategic
Vision.
American Honda has taken more leadership positions this year than
any other corporation with six leading vehicles in five competitive
segments. Honda's Total Value winners are the Civic, Civic Hybrid,
Accord Coupe, Odyssey, and Ridgeline for Honda and the TSX for Acura.
At times Honda's strong quality cues were matched by other
competitors, but it was Honda's brand name that was associated with
resale value that provided the final reassurance, making Honda the
better investment.
Hyundai earned two Total Value wins with the Hyundai Azera and
Santa Fe. Although the Hyundai brand name currently does not carry the
same level of reassurance that more established brands do, the Azera
and Santa Fe both led their segments by providing products high in
perceived quality, providing exceptional features, and being
exceptionally priced -- all supported with Hyundai's warranty.
Kia improved its overall perceived value even though it had no top
spots in 2007. Models such as the Kia Amanti, Sedona, Sportage and
Sorento all found themselves ranked 2nd or 3rd in Total Value.
Executive VP and COO of Kia, Len Hunt has stated that he looks for Kia
to be a brand that customers are passionate about -- a passion based
in integrity and confidence. "Kia products are inspiring its
expectations among their customers, delivering security and passion
that have allowed Kia to remain near the top in value even though Kia
has raised the price of some models," says Alexander Edwards,
President of Strategic Vision's Automotive Division.
Volkswagen of America was seen as the best full-line corporation
in value overall with two Total Value leaders -- Volkswagen Jetta and
Audi A3. In addition, Volkswagen and Audi brands consistently
delivered what their consumers have wanted for their money. They seem
to have responded positively to Volkswagen's repositioning of their
vehicle prices, equating the lower price combined with the ability to
join the Volkswagen community in overall strong value.
For the second year, GM was the top domestic corporation
presenting four 2007 Total Value leaders. The Chevrolet Corvette Coupe
and Convertible, GMC Sierra 1500 and Sierra 2500/3500 led in Total
Value in their respective segments. Most interesting is Sierra 1500's
lead over the Toyota Tundra. As seen in multiple instances in 2007,
the Toyota brand name stood for reliability, but the product cues were
where the Tundra was slightly behind the Sierra. For the Sierra, GM's
new warranty also had a strong impact in reassuring customers that
their investment was more secure. Last year, Strategic Vision noted
that as GM communicated the right quality cues with a reassuring
warranty, it would be positioned for success.
"The customer can perceive exceptional value in vehicles that are
more expensive. They get what they want in terms of quality, product
characteristics and features, innovation and image," states Dr.
Edwards. Value leader MINI Cooper leads its segment for the sixth
year. Other winners were the Volvo V50 and Mercedes ML.
"Value isn't simply the cheap alternative, the choice with the
largest incentive, or the option with the biggest warranty. Value
begins with the promises inherently made by the brand name, is then
supported by the economic implications of purchase, and is ultimately
defined by and ends with the product quality cues," Alexander Edwards
concluded. "With so many high quality choices today and new choices
coming (perhaps) from places like China in the future, understanding
how brand equity combined with the right product will be the keys to
success in tomorrow's market."
Buyers rated the following vehicles tops in Total Value (TVI) in
their segments:
-0-
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Small Car Toyota Yaris, Honda 774 / 773 / 772(b)
Civic(a) & Civic Hybrid
Small Multi-Function Toyota Yaris Hatchback 792
Medium Car Volkswagen Jetta 799
Medium Multi-Function Volvo V50 Wagon 755
Larger Car Hyundai Azera(a) 778
Near-Luxury Car Acura TSX 799
Luxury Car Lexus LS 430(a) 802
Luxury Multi-Function Audi A3 768
Small Specialty (less MINI Cooper(a) 824
than $28,000)
Small Specialty Chevrolet Corvette(a) 826
(greater than $28,000)
Mid-Specialty Car Honda Accord Coupe(a) 804
Convertible (less than MINI Cooper Convertible(a) 802
$30,000)
Convertible (greater Chevrolet Corvette(a) 812
than $30,000)
Minivan Honda Odyssey 770
Small SUV Hyundai Santa Fe 781
Medium SUV Toyota 4Runner 762
Medium Crossover Ford Edge 764
Large SUV Ford Expedition EL 747
Near Luxury SUV Lincoln MKX 798
Luxury SUV Mercedes ML 777
Compact Pickup Honda Ridgeline(a) 736
Full-Size Pickup GMC Sierra 1500 747
Heavy Duty Pickup GMC Sierra 2500/3500 694
Classic
(a) 2006 Total Value Award(TM) winners / (b) Differences of 1-2 points
are not statistically significant.
*T
Strategic Vision is 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 and Procter & Gamble. Its
unique expertise is in identifying consumers' comprehensive
motivational hierarchies, including the product attributes, personal
benefits, values and emotions, and images that drive perceptions and
behaviors. The ValueCentered(R) psychology and research methods were
defined by Dr. Darrel Edwards in 1968.
For further information, contact Alexander Edwards or Dr. Darrel
Edwards at (858) 576-7141; or visit www.strategicvision.com.
