Brand Value Ranking - RX8Club.com

10-02-2003 | 07:37 PM

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Brand Value Ranking

There's more evidence that import brands rule - at least when it comes to what U.S. owners think about the value of their vehicles.

European brands finished exceptionally well, taking five of the top 10 places in the latest Strategic Vision Inc. study of brand value as perceived by customers. The Japanese were close behind with four brands in the top 10.

1. Mini
2. Lexus
3. Audi
4. BMW
5. Mercedes-Benz
6. Infiniti & Hyundai
7. Honda
8. Volvo
9. Cadillac
10. Acura

Strategic Vision, a San Diego consulting firm, compiles the list each year. It bases its results on a formula for measuring what owners think of their new vehicles. Called the Total Value Index, the formula includes such factors as price, warranty, expected trade-in and resale value, operating costs and consumers' perceptions of quality.

Trust plays a huge role in how a consumer feels about a vehicle, Strategic Vision Vice President Daniel Gorrell says. "People don't buy vehicles from brands they don't trust," he says. "Strong brands have that element of trust associated with them."

Strategic Vision surveyed more than 63,900 consumers who bought 2003 model vehicles.
"We ask the traditional things about satisfaction, the various aspects of the car," Gorrell says. "Then we ask how people feel and how they respond emotionally to the vehicle."

Cadillac's appearance marks the first time in two years that the Big 3 brand has cracked the top 10. Cadillac, which is seeing strong sales from products such as the CTS and Escalade, moved to No. 9 from No. 16 in 2002.

Hyundai had a strong showing, moving up from 11th to sixth. Both the Sonata and Elantra gave the brand a big boost, Strategic Vision reports. "They went from absolutely terrible product just within the space of a couple of years to product that is really in many cases better than the domestics' product," Gorrell says.

Suzuki was the most improved brand, moving from last place in 2002 to 22 this year.
Whether consumers trust a brand has a lot to do with their perception of value, Gorrell says. That's why, for example, import automakers can sell vehicles with fewer incentives than those from the Big 3.

"The domestics keep pace on immediate economic issues like price and warranty," he says, "but they fall behind import manufacturers on expectations of reliability, durability and resale value. This tends to undermine buyers' sense of trust in the domestics and forces them to offer more incentives to sell their vehicles."

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