Brand Loyalty Recalls: Ford, General Motors, Hyundai, & Toyota - Forbes | Toyota cars catalog with specifications, pictures, ratings, reviews

Brand Loyalty Recalls: Ford, General Motors, Hyundai, & Toyota — Forbes

15 Фев 2015 | Author: | No comments yet »

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Brand Loyalty Recalls: General Motors, Hyundai,

In the face of a traffic jam of recent recalls, it may help automotive to also recall their has faced times like before. It turns out that auto brands come out less brand-damage than But why is that? Why do some auto manage to steer through a better than others?

PR? Better lawyers? More More advertising? More, advertising and discounts? Not insofar as we can All those things turn out to be moves right out of the “Automotive Recall Handbook: What to Do Cars Go Bad,” with all the doing pretty much all the things at pretty much all the budget levels. So, all things pretty much equal, we ask Why do some auto brands out of a recall better than

To a large degree, the answer can be in a marketing model called Rule of Six,” which is directly to consumers’ levels of engagement, and thus loyalty, to a This has been tested, applied to B2B and B2C categories, and has been validated. It works like Brands that possess levels of engagement and loyalty a crisis are six times more to be given the benefit of the doubt some catastrophe transpires. a big recall for an automotive brand. are other “six-times” benefits to sales and recommendations and shunning of price offers, but in this we looked at what effects the problematic recalls had on the brand levels of four major Ford, GM, Hyundai, and Toyota. what we found.

The emotional brand engagement – the pre-recall engagement levels are from our Customer Loyalty Index, where, precisely of “The Rule of Six,” rankings correlate very with positive consumer toward brands. Pre-recall come from the auto customers (compared to the Category calculated to be 100%), and post-recall were collected from who had their cars recalled.

A of years ago, for reasons previously discussed in our blogs and when it came to engagement and GM was parked toward the bottom of the of brands (about 25) we examined Through lots of problems – having to be bailed out by the U.S. i.e. you, the taxpayer – managed to drive the brand up the to find a pretty good currently at the bottom of the top-third of but below the other 3 brands we

The GM brand ended up with the post-recall decline of 10%, their own customers are, in less engaged and, less inclined to give GM the of the doubt. Of course, as opposed to the brands’ recalls, GM’s switch problem has been to 13 deaths and the fact that GM actually knew about the for at least a decade, although, as is business,” it’s likely had some calculation of what downside potential liability was to be.

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That said, on last conference call, GM CEO Mary said so far the bad publicity regarding the of 7 million cars and trucks has not had a impact” on sales. No, she was not standing too to the exhaust pipe of a Chevy at the time. In fairness, it’s noting that she also “. Although it is early. ” which is an observation of current conditions. and engagement metrics are leading-indicators of behavior – harbingers of what’s the road for a brand. But customer and loyalty assessments are not the only down for GM. Last week GM net income for the 1st Quarter fell 85% due to costs directly associated the recall. And, we’re guessing, staggering amounts of fees.

Earlier last week GM asked a federal bankruptcy to dismiss dozens of lawsuits to GM’s handling of the defective switches and – wait for it – to bar similar in the future. This is related to GM to duck litigation based on contained in their post-bankruptcy agreement. Yes, the bankruptcy you paid for. Oh, and the SEC has opened an too. But that was last and, legal issues the bad publicity has clearly has resulted in an of loyalty and engagement for the brand and has doubt in the minds of those who at one had GM on their car-buying shopping

And you know what they say consumers and brand-doubt. When doubt, they don’t.

Robert is author of “ Predicting Success .” Connect with on LinkedIn .

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