INDUSTRY WATCHStudy: Consumers Reacting to
Gas Price HikesTOLEDO, OH (Oct. 15, 2005) - Research by Maritz Research's Automotive Research Group (ARG) has revealed that the recent hikes in gas prices are impacting all aspects of consumers' behavior in ways that could impact the entire automotive industry - aftermarket and OEMs. Specifically, their driving habits, vehicle purchases and maintenance decisions are changing.
The "New Vehicle Customer Study" looked at how gasoline pricing was changing consumer behavior in terms of driving habits, maintenance and new vehicle purchasing. The study was conducted when the last reported price paid for gasoline was averaging $2.15 per gallon, the results have only been amplified since breaking through the $3.00 per gallon level in the wake of Hurricane Katrina, says the company.
Maritz concluded that consumers are becoming more interested in hybrids, fuel cells and gasoline options, such as ethanol, as choices for managing gasoline costs. The company added it was reasonable to expect preferences and behaviors to become more pronounced with higher fuel.
A boost for the service industry In reaction to rising gas prices over the past year, significantly more people reported they are reducing unnecessary driving (79 percent in 2005, compared to 65 percent in 2004), not going on long trips or vacations (52 percent in 2005 to 39 percent in 2004) and driving more conservatively (73 percent in 2005 to 63 percent in 2004) this year, compared to 2004.
Consumers surveyed were consciously making behavioral adjustments in reaction to higher gas prices, according to Maritz. Three out of four consumers stated they would make sure their vehicles were in the best working order to improve fuel economy, which could lead to a boost in business for the service industry.
Trend towards downsizing "Interestingly, now that gas prices are spiking up to $3 [per gallon] and beyond, as opposed to the gradual increases of last year and earlier this year, a recent trend has some Americans ending their SUV love affairs," said David Ensing, director of Maritz ARG's Research and Development.
Two-thirds of the respondents said that gas prices have had an effect on the size of vehicle they will consider buying. Nearly half (45 percent) agreed with the statement, "I think about buying or have bought a smaller vehicle." Maritz shared that while trucks still made up more than 50 percent of new vehicle sales, moving toward smaller vehicles within a purchase class, rather than a shift in cars, was an emerging trend.
What price breakpoints drive major shifts? The Maritz study also analyzed what gas price points would determine changes in driving habits and vehicle choices. According to Ensing, "The breaking point at which those surveyed said they would begin changing their buying and driving habits is upon us." More than 94 percent of consumers stated an intention to drive less when gas prices reach $2.76 per gallon; 85 percent stated they would think about purchasing a more fuel-efficient vehicle at $2.75 per gallon; and 93 percent would shop for a more fuel-efficient vehicle as soon as possible at $3.22 per gallon.
The study found that while hybrids continue to be desirable, diesel engine vehicles have not been met with much enthusiasm despite the attention new-generation "clean diesel" vehicles have garnered as an alternative to gasoline. Nearly 60 percent of respondents said they would not consider buying a diesel vehicle. These responses reflect U.S. consumer views on diesel fuel, which are vastly different than the rest of the world and indicate diesel is not a key option for any short-term relief for gasoline volume concerns.
The study also asked about the appeal of various powertrains. While 27 percent did not state a preference, 24 percent preferred hybrids,12 percent indicated fuel cells, 10 percent preferred alternative gasoline blends and 7 percent preferred diesel.
(Source: Maritz
Research)
