• by Karl Greenberg , March 7, 2008

One would think that with gasoline prices heading up--again--there might be a corresponding increase in the number of hybrids hitting U.S. roads. Not really, according to J.D. Power & Associates' "Spring Offline Media Report."

Only 11% of consumers seem willing to pay more to get a hybrid versus a traditionally powered vehicle, per the firm, whose study is based on responses from 44,931 drivers of new cars and trucks.

The study measures media viewing and readership habits of new-vehicle buyers, focusing primarily on magazine readership and also including television viewing, radio listening, Internet usage and newspaper readership. The study also examines consumer opinions and attitudes regarding vehicle ownership.

Among that 11% of new-vehicle buyers ready to pay more for environmentally friendly vehicles, females predominate, as do the highly educated. Green buyers inhabit a geographic footprint favoring the West. The smallest percentage of these buyers is in the Midwest, per J.D. Power. Still, even among environmentally conscious consumers, only about one in 10 actually purchased a new hybrid vehicle.

Said Jon Osborn, research director at J.D. Power and Associates: "While most consumers immediately think of hybrids when considering an environmentally friendly vehicle, the price premium of hybrids may be prohibitive. However, consumers don't have to buy a hybrid vehicle to be environmentally friendly. One can still be environmentally conscious by buying a more fuel-efficient vehicle that gets good gas mileage."

The study also finds that new-vehicle buyers who say they are very willing to pay more for a vehicle that is environmentally friendly are not forcing themselves to make a big sacrifice. While these buyers are more likely to buy a compact vehicle than the average buyer, they are also more likely to have owned smaller vehicles previously.

"Despite heavy media attention on hybrid vehicles and the emergence of a greener auto industry, the hybrid market is still in its infancy, and currently comprises only about 2.2% of the new-vehicle market," said Osborn. "However, this segment will continue to grow as more hybrid models are offered in the marketplace, particularly since gasoline prices are likely to increase and more stringent gas mileage standards are expected to be imposed on automakers."

Hybrid buyers--judging from JD Powers' media-grazing study--are a little older, and better-educated. Those who purchase hybrids average 54 years of age, per JD Power, versus 50 for the average buyer. They also tend to be much more voluble about their cars, and voice many more positive recommendations about their ownership experience than do other new vehicle buyers.

In addition, hybrid buyers and potential hybrid buyers tend to read magazines such as The New Yorker, Sunset, and Wired and are likely to watch cable television channels such as CNN and CNN Headline News.

"For the most part they are putting their money where their mouth is," says Osborn. "But you don't have to buy hybrid to be environmentally conscious."

He also points out that consumers who happen to buy so-called "green" cars are motivated by economics not environmentalism. "A lot of people aren't worrying about the greenhouse effect, but want to get better mileage. It's more about the price. Environmental reasons are on the tail end of buyer needs."

Although Osborn notes that consumers are generally shifting toward smaller, more gas-efficient vehicles, he says that doesn't mean bad timing for Dodge and Chevrolet, who are both bringing out Mustang-fighters this year in the form of Challenger and Camaro, respectively.

"Those vehicles are more niche vehicles. Remember, Mustang has been wonderful for Ford. Such cars are flagship models to show off technology and design cues."