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US Black Consumers's Loyalty in Automotive: Incl Impact of COVID-19 Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the US - Black Consumers' Loyalty in Automotive: Incl Impact of COVID-19 market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Loyalty in automotive is rooted in four pillars: shared trust between carmakers and buyers, transparency in communication, automakers’ understanding of drivers’ wants and needs, and demonstrated reliability. Prior to the COVID-19 outbreak, Black consumers were more likely than the average to be considering a vehicle purchase. However, the economic disruption caused by the pandemic and resulting financial pressure Black consumers will face as a result will likely delay purchasing.

All reports purchased from the Mintel Store now come with free access to our COVID-19 Global Insights Hub, allowing you to understand how industries and consumer behaviour is changing worldwide.


What does the COVID-19 Global Insights Hub give you access to?

  • Over 450 pieces of research (with more published each week) addressing markets across the globe.
  • Discover how people in countries at different stages of the crisis are adjusting to the 'new normal'.
  • Trending industries which have seen growth due to the changes in circumstance.
  • Our latest consumer research surveys, allowing you to see customers views right now.

Expert analysis from a specialist in the field

Written by Madelyn Franz, a leading analyst in the Automotive sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The automotive industry will be one of the hardest hit by the COVID-19 outbreak and the economic downturn. Past recession periods show that new car sales plummet when the economy contracts. Meanwhile, Black consumers are also disproportionately impacted by job losses and experience greater financial insecurity relative to the total population. However, under normal conditions, Black consumers are more likely than the average to be in car shopping mode, and their automotive aspirations and needs haven’t gone away – though they are likely to delay purchasing. With this in mind, it’s more vital than ever before for automakers to open lines of a communication in. Madelyn Franz
Automotive Analyst

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What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Scope
        • Executive Summary

            • Figure 1: Short, medium and longer term impact of COVID-19 on auto and Black consumers’ loyalty, April 2020
          • Market overview
            • Top takeaways
              • Automotive loyalty and the Black consumer
                • Black car buyers are almost always in the market . . .
                  • Figure 2: Black consumers’ purchasing time frame, December 2019
                • . . . but they’re not all shopping the same way
                  • Figure 3: Blacks’ loyalty in automotive attitudinal segments, December 2019
                • The issues
                  • COVID-19 hurts carmakers and car buyers
                    • Auto brands are failing to capture the loyalty of Black drivers
                      • Figure 4: Post-purchase loyalty, Black vs White, December 2019
                    • Black consumers switch brands for advanced tech features
                      • Figure 5: Reasons for switching auto brands, Black vs White, December 2019
                    • The opportunities
                      • A car is more than a car
                        • Figure 6: Attitudes toward car culture, Black consumers indexed to total, December 2019
                      • Give the people what they want
                        • Figure 7: Types of vehicles, Black vs White, December 2019
                      • What it means
                      • The Impact of COVID-19 on Black Consumers’ Loyalty in Automotive

                        • What you need to know
                            • Figure 8: Short, medium and longer term impact of COVID-19 on auto and Black consumers’ loyalty, April 2020
                          • Opportunities and threats
                            • Auto purchasing will be lower on Black consumers’ priorities
                              • Response to COVID-19 by automakers is geared toward the general market
                                • Multicultural outreach is likely to be cut from automaker consideration
                                  • “Sea of sameness” means opportunity for automakers to stand out with something different
                                      • Figure 9: Black consumers’ attitudes toward automakers, indexed to White consumers, December 2019
                                    • Automakers and dealerships need to show that they care
                                        • Figure 10: Kia’s Accelerate the Good Program | Supporting Homeless Youth During This Crisis, April 2020
                                        • Figure 11: Ford | Built to Lend a Hand, March 2020
                                      • Automotive brands can challenge public transit
                                        • Impact on the market
                                          • US auto sales drastically affected by shelter-in-place mandates
                                              • Figure 12: Total vehicle sales (millions of units) seasonally adjusted annual rate, January 2000-March 2020
                                            • Used car sales could help mitigate the slide in the short- to mid-term
                                              • Price competition from ecommerce could erode what’s left of loyalty
                                                  • Figure 13: Lincoln Remote Sales Experience: Home | Lincoln, April 2020
                                                • While sales are down, needs for maintenance and repair services could strengthen customer relationships
                                                  • How the crisis will affect Black consumers
                                                    • Lower incomes means lower tolerance for financial stress
                                                      • COVID- 19 and the economic slowdown disproportionately impact Black adults
                                                          • Figure 14: Employed persons by certain detailed healthcare, transportation and sales occupations, by race and Hispanic origin, 2019
                                                        • Black workers likely to face longer road ahead to financial recovery
                                                          • How a COVID-19 recession will reshape the automotive industry
                                                            • US auto industry impacted by global disruption to the supply chain
                                                              • Automakers are going to have to become more human
                                                                • Brands and dealerships will need to work together to digitize even more
                                                                  • COVID-19: US context
                                                                  • The Market – What You Need to Know

                                                                    • The Black population is young and growing
                                                                      • Loyalty comes from functionality
                                                                        • Black consumers spend to stay in motion
                                                                          • Built trust by building credit
                                                                          • The Black Population by the Numbers

                                                                            • The Black population is growing
                                                                              • Figure 15: Population by race, 2014-24
                                                                            • Most Black people are under 35
                                                                              • Figure 16: Population by age, total and Black, 2019
                                                                            • Black households earn less, auto purchases have greater impact on budgets
                                                                              • Figure 17: Median household income, by race and Hispanic origin of householder, 2018
                                                                            • More than half of Blacks call the South home
                                                                              • Figure 18: Distribution of the Black population, by census region, 2018
                                                                          • Market Overview

                                                                            • The Black consumer experience in automotive
                                                                              • Black car buyers know what they want . . .
                                                                                • Figure 19: Influences on perceptions of car brands, by total and Black, April 2019
                                                                              • The cost of mobility
                                                                                • Figure 20: Household annual expenditures on transportation, by White and Black, 2018, Consumer Expenditure Survey, 2018
                                                                              • The cost of vehicle ownership
                                                                                • It’s all about the money
                                                                                  • Figure 21: How Black consumers paid for their most recently acquired vehicle, indexed to all, October 2018-December 2019
                                                                                • Not here for a good time, but definitely here for a long time
                                                                                  • Figure 22: Black consumers’ length of finance plan or lease for their most recently acquired vehicle, indexed to all, October 2018-December 2019
                                                                                • Trading trade wars
                                                                                • Driving Loyalty Behaviors – What You Need to Know

                                                                                  • Trend Drivers help explain what Black drivers want
                                                                                    • Figure 23: Mintel Global Trend Drivers
                                                                                • Driving Loyalty Behaviors

                                                                                  • Assembling the automotive loyalty jigsaw puzzle
                                                                                    • Identity: Brands and consumers can empower each other
                                                                                      • Figure 24: Ford: Built Phenomenally – Own It, January 2020
                                                                                    • Technology: Safety first, but not only
                                                                                      • Figure 25: Chevrolet: A Family of SUVs, September 2019
                                                                                    • Value: Budget is best, but tough to beat
                                                                                      • Figure 26: CarMax Haggle-Free Creative, March 2020
                                                                                  • The Consumer – What You Need to Know

                                                                                    • Automotive loyalty is hard to come by
                                                                                      • Reliability and affordability encourage repeat purchases
                                                                                        • New tech can prompt interest in switching
                                                                                          • A car is more than just a car
                                                                                            • Who’s behind the wheel?
                                                                                            • Black Car Owners

                                                                                              • Black households have (and need) fewer cars
                                                                                                • Figure 27: Number of vehicles in household, Black vs total and White, December 2019
                                                                                              • Sedans are simple, standard, reliable – but getting harder to find
                                                                                                • Figure 28: Types of vehicles in household, Black vs White, December 2019
                                                                                              • Foreign budget brands spark interest
                                                                                                • Figure 29: Black consumers’ vehicle ownership, by brand, October 2018-December 2019
                                                                                              • Black consumers have one foot in the market
                                                                                                • Figure 30: Black consumers’ purchasing time frame, December 2019
                                                                                              • Younger Black consumers are in-market
                                                                                                • Figure 31: Black consumers’ purchasing time frame, by age, December 2019
                                                                                            • Understanding Black Consumers’ Automotive Loyalty

                                                                                              • Automotive loyalty is a moving target
                                                                                                  • Figure 32: Post-purchase loyalty, Black vs White, December 2019
                                                                                                • Brand power still needs horsepower
                                                                                                    • Figure 33: Black consumers’ reasons for buying the same auto brand, December 2019
                                                                                                  • There’s tension between fandom and freedom
                                                                                                      • Figure 34: Black consumers’ reasons for switching auto brands, December 2019
                                                                                                    • Men buy with their hearts
                                                                                                        • Figure 35: Black consumers’ reasons for switching auto brands, by gender, December 2019
                                                                                                      • Black consumers move on to move up
                                                                                                          • Figure 36: TURF analysis – brand switching motivators, December 2019
                                                                                                        • Methodology
                                                                                                        • Black Consumers and Car Culture

                                                                                                          • Car is an extension of self
                                                                                                              • Figure 37: Black consumers’ attitudes toward car culture, indexed to total, December 2019
                                                                                                            • There’s a difference between love and respect
                                                                                                                • Figure 38: Black men’s attitudes toward car culture, index to total males, December 2019
                                                                                                              • Kids are (luckily) the future
                                                                                                                  • Figure 39: Black consumers’ attitudes toward car culture, by generation, December 2019
                                                                                                                • Aspirations of luxury
                                                                                                                    • Figure 40: Reasons for switching brands, Black vs White, December 2019
                                                                                                                • Classifying Car Owners

                                                                                                                    • Brand value is in the eyes of the buyer
                                                                                                                      • Figure 41: Black consumers’ loyalty in automotive attitudinal segments, December 2019
                                                                                                                    • Brand ambassadors
                                                                                                                      • Brand Loyalists (24%)
                                                                                                                          • Figure 42: Brand loyalty determinants, by consumer segment, December 2019
                                                                                                                        • Automotive Enthusiasts (20%)
                                                                                                                            • Figure 43: Brand loyalty determinants, by consumer segment, December 2019
                                                                                                                          • Disloyal detractors
                                                                                                                            • Disengaged Drivers (29%)
                                                                                                                                • Figure 44: Brand loyalty determinants, by consumer segment, December 2019
                                                                                                                              • Disillusioned Experts (27%)
                                                                                                                                  • Figure 45: Brand loyalty determinants, by consumer segment, December 2019
                                                                                                                              • Brand Impact on Black Consumer Loyalty

                                                                                                                                  • Black buyers need to know that they’re being heard
                                                                                                                                      • Figure 46: Attitudes toward automotive loyalty – automaker/brand relations, Black vs White, December 2019
                                                                                                                                    • Performance is vital, but brand has some equity
                                                                                                                                        • Figure 47: Attitudes toward automotive loyalty – brand value, Black vs White, December 2019
                                                                                                                                    • Appendix – Data Sources and Abbreviations

                                                                                                                                      • Data sources
                                                                                                                                        • Consumer survey data
                                                                                                                                          • Direct marketing creative
                                                                                                                                            • Abbreviations and terms
                                                                                                                                              • Abbreviations
                                                                                                                                              • Appendix – Market Overview

                                                                                                                                                  • Figure 48: How consumers paid for their most recently acquired vehicle, by race, Black indexed to all, October 2018-December 2019
                                                                                                                                                  • Figure 49: Length of finance plan or lease for their most recently acquired vehicle, by race, Black indexed to all, October 2018-December 2019
                                                                                                                                                  • Figure 50: Black consumers’ attitudes toward automobiles – NET: any agree, by gender, October 2018-December 2019
                                                                                                                                              • Appendix – Driving Loyalty Behaviors

                                                                                                                                                • Four Pillars of Automotive Loyalty
                                                                                                                                                • Appendix – The Consumer

                                                                                                                                                    • Figure 51: Vehicle ownership, by race, October 2018-December 2019
                                                                                                                                                    • Figure 52: Number of vehicles in Black households, indexed to total, December 2019
                                                                                                                                                    • Figure 53: Black consumers’ purchasing time frame, indexed to total, December 2019

                                                                                                                                                About the report

                                                                                                                                                This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                                • The Consumer

                                                                                                                                                  What They Want. Why They Want It.

                                                                                                                                                • The Competitors

                                                                                                                                                  Who’s Winning. How To Stay Ahead.

                                                                                                                                                • The Market

                                                                                                                                                  Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                                • The Innovations

                                                                                                                                                  New Ideas. New Products. New Potential.

                                                                                                                                                • The Opportunities

                                                                                                                                                  Where The White Space Is. How To Make It Yours.

                                                                                                                                                • The Trends

                                                                                                                                                  What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                                Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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