Brand loyalty declines among Canadian automotive consumers | WARC | The Feed

Brand loyalty declines among Canadian automotive consumers

Brand loyalty fell by double digits among new car buyers in Canada last year, partly due to supply chain and vehicle availability issues.

Why it matters

Supply chain disruption has represented a major challenge in the automotive industry, leading to many consumers facing greater difficulty in finding their preferred vehicle. One consequence of that trend is that many people switch from their preferred manufacturer, either voluntarily or by necessity.

Takeaways

A study from tech giant Google and research company Kantar, which surveyed 3,015 new car purchasers in Canada, found:

• Brand loyalty registered a decline of 11% overall last year.
• A 22% decline in loyalty was seen in the country’s premium and luxury car categories.
• Roughly 14% of participants had modified their purchasing choices due to wait times or availability issues.
• Instead of keeping consumers on standby, greater transparency about vehicle availability is one method to retain loyalty when brands can’t give consumers their top-choice car.