• by Karl Greenberg , December 15, 2010

If there is one ironclad rule in the amorphous world of automotive consumer insights, it is that perceptions are like knots in shoelaces: it is easy for an auto brand to give people a reason to think its vehicles are quality challenged, and very hard to undo that perception once it has percolated into the public's imagination.

But it appears the knots are becoming a bit looser. J.D. Power & Associates' new Avoidance Study, which looks at what keeps people away from a brand's dealerships, found that bad prior experience and poor perception of a manufacturer's reputation are more important this year than last. Concerns regarding the future of certain brands have lessened as reasons they stay away.

The study found that domestic and Korean brands like Ford, GMC, Hyundai, Kia and Dodge Ram are moving the needle in terms of how customers regard the reliability of their products. Audi, Scion and Smart have also enjoyed improvements in avoidance rates this year. The firm says this is the second consecutive year that Ford and Audi have been among the brands that have shown the most improvement in reliability perception in the industry.

Kerri Wise, director of automotive research at J.D. Power and Associates, tells Marketing Daily that Toyota's safety recalls have boosted "reputation" avoidance. She adds, however, that while Toyota consideration has dipped slightly year-over-year, it is "still one of the most considered brands in our study. What has changed is that people who avoid them are not doing so because Toyota is an import brand, where last year a third of consumers who avoided Toyota said they did so because they were a 'foreign' brand. That has gone down to 16%, and I think part of it is that there are other reasons that have taken more priority."

Still and all, it seems the right side of the human brain has the most influence on avoidance: Year after year, the top reason for consumers to avoid a brand is vehicle exterior styling. This year, styling was cited by 35% of new-vehicle owners as a reason they avoided a brand. Twenty-three percent cited purchase price; 20% said reliability; 19% said interior styling; and in fifth place bad reputation of manufacturer was cited by 16% of respondents.

"Styling is the number one hurdle to consideration," says Wise. "If consumers don't like a vehicle's styling, they just won't put it on their shopping list." Conversely, if a person likes the way a car or truck looks, the vehicle's faults don't come into play, according to Wise. "They are more forgiving of other things. Typically, the customers that felt the best in terms of the appeal of the vehicle's styling will often mention problems with the vehicle far less. Style encourages passion and makes them overlook the negative."

Vehicles whose looks make them almost universally desired (Corvette, Mustang, Audi RX-8, Camaro, Porsche 911, and maybe Jeep Wrangler within its segment, are probably examples of this) -- those that buyers love and whose styling isn't what drives away avoiders -- are more profitable and move off dealership lots much faster, according to Wise. "And manufacturers make more profit from them," she says.

But the next-best thing, she says, are vehicles blessed (or cursed, based on one's perspective) with a polarizing style. Think Nissan Cube, PT Cruiser, Ford Flex, Dodge Charger, or even BMW's Chris Bangle-designed E65 7-Series saloon from 2002. "It's love it or hate it; they are both avoided and loved because of styling. They create buzz and move up the consideration lists."