Market Research Logo

Black Consumers' Attitudes toward Car Buying - US - June 2015

Black Consumers' Attitudes toward Car Buying - US - June 2015

“Currently at more than $1 trillion, Black spending power is expected to climb to $1.4 trillion by 2019 – and growth continues to outpace that of Whites, despite lower incomes. Black consumers’ love for cars, the role they play in shaping their image, attraction to technology, and high receptivity to advertising makes them a prime target for marketers.”

– Tonya Roberts, Multicultural Analyst

This report covers the following areas:

How do Blacks feel about the car buying process?
What are some resources Blacks turn to when shopping for a new vehicle?
Which brands are on their consideration list? Which brands would they definitely not consider?
How brand loyal are Blacks?
What should manufacturers consider including in advertising messages?


OVERVIEW
What you need to know
Definition
Data sources
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
Market drivers
Leading companies and marketing strategies
Brand Analysis: Ford
Brand Analysis: Toyota
The consumer
New vehicle consideration is up, interest in trucks is strong
Figure 1: Blacks' expected car buying timing, by gender and age, January 2015
Financial needs and emotional wants motivate search
Different tactics may be required to reach the right consumer
Blacks are positive about shopping, especially those ready within two years
Figure 2: Correspondence analysis – Black consumers' attitudes toward the car shopping process, by Blacks' expected car buying timing, January 2015
Ford, Toyota, and Nissan among top three brands considered
Figure 3: Top 10 vehicle brands that Blacks are seriously considering, January 2015
Asian and domestic owners less likely to switch to European imports
Figure 4: Loyalty among European, Asian, and domestic owners, January 2015
Blacks willing to pay more for safety technology, education needed
Safety is critical, but more personal and cultural connection will attract Millennials
Blacks want connectivity and integration with their personal devices
What we think
ISSUES AND INSIGHTS
Safety technology not enough to woo Black Millennials
The issues
The opportunity
Financing is the elephant in the room
The issue
The opportunity
Brands without targeted efforts are suffering
The issue
The opportunity
TREND APPLICATION
Trend: Make it Mine
Trend: Prepare for the Worst
Trend: Life Hacking
MARKET DRIVERS
Key points
Lower gas prices may pump more into truck and luxury car sales
Reverse migration likely to add fuel to fire in Blacks’ love for cars
LEADING COMPANIES AND MARKETING STRATEGIES
Key points
Technology and Innovation
Brand Analysis: General Motors
Brand Analysis: Mercedes Benz
OVERVIEW
What you need to know
Definition
Data sources
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
Market drivers
Leading companies and marketing strategies
Brand Analysis: Ford
Brand Analysis: Toyota
The consumer
New vehicle consideration is up, interest in trucks is strong
Figure 1: Blacks' expected car buying timing, by gender and age, January 2015
Financial needs and emotional wants motivate search
Different tactics may be required to reach the right consumer
Blacks are positive about shopping, especially those ready within two years
Figure 2: Correspondence analysis – Black consumers' attitudes toward the car shopping process, by Blacks' expected car buying timing, January 2015
Ford, Toyota, and Nissan among top three brands considered
Figure 3: Top 10 vehicle brands that Blacks are seriously considering, January 2015
Asian and domestic owners less likely to switch to European imports
Figure 4: Loyalty among European, Asian, and domestic owners, January 2015
Blacks willing to pay more for safety technology, education needed
Safety is critical, but more personal and cultural connection will attract Millennials
Blacks want connectivity and integration with their personal devices
What we think
ISSUES AND INSIGHTS
Safety technology not enough to woo Black Millennials
The issues
The opportunity
Financing is the elephant in the room
The issue
The opportunity
Brands without targeted efforts are suffering
The issue
The opportunity
TREND APPLICATION
Trend: Make it Mine
Trend: Prepare for the Worst
Trend: Life Hacking
MARKET DRIVERS
Key points
Lower gas prices may pump more into truck and luxury car sales
Reverse migration likely to add fuel to fire in Blacks’ love for cars
LEADING COMPANIES AND MARKETING STRATEGIES
Key points
Technology and Innovation
Brand Analysis: General Motors
Brand Analysis: Mercedes Benz
Strong commitment to Blacks pays off, Ford and Toyota are examples
Brand Analysis: Ford
Brand Analysis: Toyota
Black advertising clusters and automotive intenders
Cluster #1: Cultural Activists (53% of the Black population)
Cluster #2: Cultural-listics (28% of the Black population)
Cluster #3: Cultural Advocates (19% of the Black population)
THE OPPORTUNITIES
Key points
Nearly three in 10 Blacks in market for new car in less than a year
Figure 5: Blacks' expected car buying timing, by gender and age, January 2015
Financial needs and emotional wants drive vehicle intention and timing
Figure 6: Financial motivations for buying a new car within the next three years, January 2015
Figure 7: Emotional motivations for buying a new car within the next three years, January 2015
Only two in 10 say finances are preventing them from buying a vehicle
Figure 8: Reasons why Blacks are not buying a new car within the next three years, by gender, January 2015
Intention to buy new up from previous purchase
Figure 9: New versus used next vehicle intentions, by race/Hispanic origin, November 2013 - December 2014
SUVs and crossovers are among top models Blacks want next
Figure 10: Types of vehicles Blacks are considering, January 2015
RESEARCH RESOURCES USED
Key points
Websites, whether OEM, dealer, or third-party highly effective resources
Figure 11: Sources of information that Blacks use when shopping for a vehicle, January 2015
Different strategies required to reach Blacks of different generations
Figure 12: Sources of information that Blacks use when shopping for a vehicle, by generation, January 2015
ATTITUDES TOWARD THE CAR SHOPPING PROCESS
Key point
Correspondence analysis
Methodology
Shopping for car evokes positive emotions, particularly among those shopping sooner
Figure 13: Correspondence analysis – Black consumers' attitudes toward the car shopping process, by Blacks' expected car buying timing, January 2015
VEHICLE CONSIDERATION SET
Key points
European imports lagging Asian imports and domestics on ownership and consideration
Figure 14: Blacks’ interest in purchasing a domestic, Asian import and European import, January 2015
Toyota, Nissan, GM, Ford doing well, targeted efforts may be paying off
Figure 15: Top 10 make of vehicles that Blacks are seriously considering next, January 2015
LOYALTY, RETENTION, AND DEFECTION
Key points
Only one in 10 Blacks own a European import, about four in 10 own domestic or Asian imports
Figure 16: Automotive brands Blacks own, January 2015
European owners more likely to go domestic than other way around
Figure 17: Loyalty among European, Asian, and domestic owners, January 2015
ATTITUDES TOWARD TECHNOLOGY AND INNOVATION
Key point
As technology evolves, dealer staff will be critical in education and driving the need
Figure 18: Blacks’ attitudes toward automotive technology and innovation, January 2015
Three in 10 Blacks willing to pay more for safety features
Figure 19: Impact technology and innovation have on willingness to pay more, January 2015
DESIRED SAFETY FEATURES
Key points
Blind spot warnings are leading safety feature Blacks want
Figure 20: Blacks’ interest in new safety innovations, January 2015
Safety technology less appealing to Black Millennials
Figure 21: Appeal of certain safety features, by generations, January 2015
Integrated technology has more appeal
Figure 22: Appeal of certain technology features, by generation, January 2015
DESIRED ENTERTAINMENT AND CONVENIENCE FEATURES
Key points
Two-thirds want a built-in GPS, cell phone laws may be a driver
Figure 23: Blacks’ interest in convenience features, January 2015
Figure 24: Interest in other convenience and comfort features, January 2015
Blacks drawn to entertainment features that connect them to personal devices
Figure 25: Blacks’ interest in entertainment features, January 2015
Personal tech devices diminish appeal of some features
Figure 26: Interest in new entertainment innovations among Blacks, January 2015
APPENDIX – THE US BLACK POPULATION
Key points
Buying power
Figure 27: Buying power trends among Black consumers, 1990-2019 (projections)
Black buying power is growing at a faster rate than that of White consumers
Figure 28: Changes in buying power, by race, June 2014
Black buying power more than $1 trillion
Figure 29: Top 10 states or areas ranked by share of Black buying power, 2014
Top 10 states with highest buying power represent two-thirds of buying power
Figure 30: Top 10 states ranked by value of Black buying power, 2014
Population statistics
Black population growing at a faster rate than Whites
Figure 31: Population by race and Hispanic origin, 2010-20
Children younger than 18 account for 26% of Black population
Figure 32: Black population, by age, 2010-20
Geographic concentration
Majority of Blacks reside in the South; a different marketing approach may be needed
Figure 33: Black geographic concentration, by region, 2010
Population grows in the South, reverse migration may be occurring
Figure 34: Top 20 states or areas with highest Black population and percentage change from 2000-10
New York, Chicago, Philadelphia, Detroit, and Houston are top Black metros
Figure 35: Top 10 cities with the largest population of Blacks, 2010
More than 80% of Detroit’s and Jackson’s population is Black
Figure 36: Top 10 cities with the highest percentage of Blacks [in millions], 2010
Gender
Figure 37: Men by race and Hispanic origin, 2009-19
Figure 38: Women by race and Hispanic origin, 2009-19
Generations
iGeneration and Millennials represent nearly half of Black population
Figure 39: Population of generations, by race/Hispanic origin, 2014
Figure 40: Distribution of population by race and generation, 2015
Black Families
Blacks households outnumber other multicultural groups, most headed by women
Figure 41: Number of households in US, by race/Hispanic origin, January 2015
Black households nearly four times likely as Whites to be headed by women
Figure 42: Household living situation, by race/Hispanic origin, 2014
Only one-third of Blacks are married, compared to 50% or more of others
Figure 43: Percentage of married and not married people aged 18 or older, by race and Hispanic origin, 2013
Blacks twice as likely never to marry
Figure 44: Marital status of adults aged 18 or older, by race/Hispanic origin, 2013
Figure 45: Marital status of Blacks, by age, 2013
Figure 46: Marital status of Black adults, by gender, 2013
More than one quarter of Black households are headed by women
Figure 47: Household type, by race of householder, 2013
More Black children born to unmarried women in 2012
Figure 48: Fertility rate, by race and Hispanic origin of mother, 2002-12
Figure 49: Percentage of births to unmarried mothers, by race and Hispanic origin of mother, 2002 and 2012
Figure 50: Households with own children, by race and Hispanic origin of householder, 2013
Figure 51: Who children live with, by race and Hispanic origin, 2012
Figure 52: Black households, by presence and ages of own children, 2013
Households headed by father only increased since 2010
Figure 53: Family households headed by the father only, by race/Hispanic origin, January 2015
Source: Census Bureau, Current Population Survey, 2014 Annual Social and Economic Supplement (released January 2015)/Mintel
Education
Majority of Blacks seek college, while others may be relying on entrepreneurship
Figure 54: Educational attainment of Blacks aged 25 or older, by age, 2012
Income
Blacks have lower household incomes, attributed to several factors besides occupation
Figure 55: Median household income, by race and Hispanic origin of householder, 2013
Average incomes up 17% in a 10-year period
Figure 56: Median household income for households headed by Blacks, in inflation-adjusted dollars, 2003-13
APPENDIX – TRADE ASSOCIATIONS
US METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Secondary Data Analysis
Qualitative Research
Further Analysis
Social Media Research
TRADE RESEARCH
STATISTICAL FORECASTING

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report