New Data from Phoenix Reveals Unprecedented Amount of Automotive Recalls Negatively Impacting Consumer Perception of Vehicle Safety and Brands

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Researchers also find awareness of recalls is affecting near-term intent to purchase

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However, this most recent wave [of recalls] seemed to overwhelmingly impact consumer’s perception of vehicle safety

Phoenix Marketing International, a global marketing services firm, has released findings around the unprecedented volume of automobile recalls. The research revealed that more than 60% awareness of vehicle recalls negatively affects the perception that consumers have on safety and brands. Additionally, awareness of the recalls was somewhat higher among consumers who were in the market for luxury vehicles, when compared to those in the non-luxury segment. Truck shoppers were least aware of the recalls.

“Recalls have been a part of the industry landscape for many years and have become a more common occurrence,” said Dennis Syrkowski, President of the Automotive Practice at Phoenix Marketing International. “However, this most recent wave seemed to overwhelmingly impact consumer’s perception of vehicle safety, as these recalls covered critical items like seatbelts, airbags, and most notably, an ignition switch defect that could result in an engine shut-off rendering the vehicle’s steering, brakes and airbags inoperative.”

When asked which brands had recently announced a recent recall, Chevrolet, Toyota and Cadillac were mentioned by a sharply higher proportion of consumers compared to other brands. GM was most often cited overall, but this is likely due to GM being the corporate parent for the Chevrolet, Saturn and Pontiac brands which were associated with the large-scale ignition switch recall.

Brand impression was also affected. As consumers entered the market to begin looking for their next vehicle, the impact of recalls on their willingness to consider a brand easily knocked several brands suffering from recall attention,off their shopping lists. Among non-luxury brands, Chevrolet was most impacted, with close to one half of automotive shoppers indicating they were somewhat to much less likely to consider Chevrolet. Around a third cited a similar sentiment for Toyota.

About Phoenix Marketing International
Phoenix Marketing International is a premier global marketing services firm providing its clients with tailored, unique insight into their customers and markets via a wealth of existing proprietary data. Coupled with custom research products and the latest qualitative and quantitative techniques, Phoenix has extensive research experience across the Automotive, Financial Services, Healthcare, Converged Technology and Media, Restaurant, and Travel/Leisure sectors. From the strategic definition of consumer needs to effective marketing program implementation, PMI provides profit-driven market solutions and is committed to maximizing a client’s Return on Marketing Investment (ROMI) by leveraging the ability to attract and retain new business through cost efficient data acquisition and statistical modeling techniques. Founded in 1999 by Chairman and CEO, Allen R. DeCotiis and President, Martha Rea, Phoenix Marketing International has established its global presence with offices in major locations such as New York, New Jersey, Boston, Philadelphia, Raleigh/Durham, Detroit, and London.

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Kristin Johnson
Phoenix Marketing International
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