If consumers like the sound of something they hear in an ad, are they more likely to buy? Ads are a complex combination of human voice, music, images and words designed to interact with a  listener’s acculturated experiences and influence aspirations. Some ads achieve their goals while others fall flat. Could the success rate of ads be linked to gender bias based on the voice used? Harris Poll recently surveyed consumers on this topic.

On the surface, some consumers say voice makes a difference:

• Women’s voices are more persuasive: 19%
• Men’s voices are more persuasive: 18%
• Makes no difference: 64%

The typical consumer does make definite associations with specific voices. For example, 48% of consumers say a male voice is more forceful. On the other hand, 46% of consumers perceive a female voice to be more soothing.

The poll also queried consumers on the use of voice when it comes to buying two specific products: computers and cars.

For all consumers, the following voiceover would be more likely to sell a car:

• Male voice 28%
• Female voice 7%
• Makes no difference 66%

For all consumers , the  following voiceover would be more likely to sell a computer:

• Male voice 23%
• Female voice 7%
• Makes no difference 69%

In addition, nearly 1 in 3 men say a male voice is more likely to them sell a car while 1 in 4 say the same for a computer purchase. When measuring women’s responses separately, the survey revealed that just under 1 in 4 women say a male voice is more likely to sell them both a car or  a computer. Based on these results, we can expect to see more auto and computer dealers looking to use additional male voices in their ads.

[Source: Are Consumers More Responsive to Male or Female Voices in Advertisements? Harris Interactive. 12 March 2010. Web  15 March 2010]

A key aspect of any auto manufacturer’s marketing mix is the auto show. These events have long served as showcases where manufacturers can tout their latest designs for reporters and consumers. But given the expense required to participate in an auto show, can a manufacturer expect a return on investment? According to Foresight Research, a market research firm, the answer is yes. After reviewing this topic for 5 years and surveying consumers on purchase habits, Foresight released its study and emphasized the following findings:

• At least 1 in 5 new car buyers attends an auto show in the year preceding the purchase
• The Midwest markets, with larger emphasis on auto shows, experience an even higher visit rate. Over 1 in 3 new car buyers in the Detroit and Cleveland markets has visited auto shows in the year preceding the purchase
• Walking through the show and watching demonstrations influences 39% of the buyers either completely or partially when it comes to final brand selection
• Auto show participants who are lucky enough to ride and drive a demo vehicle report even higher rates of influence: 54%

Steve Bruyn, President of Foresight Research, who notes that auto shows play an integral role in consumer purchase decisions says “consider the fact that a whopping 70% of auto show attendees who said they were influenced to purchase a new vehicle by the show recalled spending 30 minutes or more at the display of the brand they ultimately purchased.”

Based on these findings, it seems that auto manufacturers would do well to continue investing in auto shows as part of their complete marketing package.

[Research Reveals Influence of Auto Shows, Foresight Research, 2.9.2010]

Light vehicle sales in 2009 were 10.4 million, the lowest level in 27 years, and 21.2% lower than 2008.  R. L. Polk & Co. predicts the light vehicle market will be 11.5 million units in 2010, according to its most recent U.S. light vehicle forecast.

Recent data have supported the view of stronger than expected economic growth for the fourth quarter of 2009.  The new orders component month-over-month increased 8.6% in December to 65.5, suggesting that new demand is entering the pipeline. These index levels are historically consistent with a sustainable recovery following a deep recession.

In addition, American household net worth is recovering. For the second consecutive quarter, household wealth climbed.  With the S&P 500 stock price index rising 5.5% in the fourth quarter of 2009 and home prices expected to appreciate by nearly 2%, wealth accumulation should continue. Rebuilt wealth will help drive personal consumption which includes purchases of durable goods, such as light vehicles.

“We believe wealth accumulation and improving consumer confidence added to GDP growth in the fourth quarter of 2009 and we see slow but steady GDP growth in 2010,” said Dave Goebel, North American forecast consultant for Polk. Polk’s forecast for Real GDP U.S. growth in 2010 is 2.9%.

Polk’s light vehicle industry sales forecast is 11.5 million units. The risks to this forecast are based on the consumer, employment and the housing market.  As government stimulus programs end, consumers must have confidence to continue spending and businesses need to invest and hire, otherwise the economic recovery could slow in 2010.

“We are encouraged by a light vehicle industry SAAR above 10 million for three consecutive months and record low inventories at dealerships. While industry levels remain far below their normal levels, there seems to be some momentum out there,” said Goebel.

“U.S. Light Vehicle Market Monthly Forecast Report,” conducted by R. L. Polk & Co., January 8, 2010.  Website: www.polk.com.

Automotive manufacturers are working hard to increase customer loyalty and attract buyers from other brands.  With the uncertainty of the economy, retaining existing owners is critical to a brand’s market success.  A new study from J.D. Power and Associates finds that resale value and vehicle quality have become increasingly important reasons for new-vehicle buyers to remain loyal to an automotive brand.  The study measures the percentage of vehicle owners and lessees who replace a previously purchased new vehicle with another from the same brand.

The study finds that the importance of resale value as a reason for owner loyalty has increased by 12 percentage points in 2009, compared with 2008. Meanwhile, the importance of vehicle quality has increased by 6 percentage points. In comparison, in 2008, the reasons with the largest increases in importance for staying loyal to a brand were safety, fuel economy and deals/incentives.

Resale value and quality have also increased in importance as reasons why brands conquest new customers from their competitors, as has the importance of appearance and styling.

“Although there are some signs of economic recovery, the outlook remains uncertain, so for many new-vehicle buyers, high resale value and quality are particularly important considerations that are driving purchase behavior,” said Raffi Festekjian, director of automotive product research at J.D. Power and Associates. “Whether manufacturers are striving to increase loyalty or conquesting buyers from other brands, offering attractively styled models and having strong customer perceptions of resale value and quality are critical.”

Mercedes-Benz ranks highest among automotive brands in retaining vehicle owners when they buy a new-vehicle, and improves their retention rate by eight percentage points from 2008 to 67% in 2009. Following in the rankings are Honda (64%) and Toyota (61%).

Overall customer retention in 2009 remained stable from 2008 at 48%. In 2009, 13 of the 36 ranked brands improved in customer retention rates from 2008, while 20 declined and three remained stable. MINI and Porsche post the greatest improvements in customer retention rates from 2008, each improving by 14 percentage points in 2009. For MINI, this improvement is driven primarily by incentives and customer perceptions of resale value of the brand’s models. For Porsche, the increase is due to resale value, fuel economy and quality.

“2009 Customer Retention Study,” conducted by J.D. Power and Associates, December 10, 2009.  Website: www.jdpower.com.