2009 Mazda Customer Loyalty Report Bentley Project Feb 20.2008

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A marketing research project I did for Mazda North America on the 2009 Mazda6.

A marketing research project I did for Mazda North America on the 2009 Mazda6.

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  • 1. 2009 MAZDA 6 CUSTOMER LOYAL REPORT Bentley College February 20 2008 Leading Faculty: Perry Lowe Student Team: Alex Sun Kristin Hebert Jonah Burstein
  • 2. EXECUTIVE SUMMARY 1. Purpose The purpose of the Bentley College Mazda Research Project was to determine current MAZDA6, MAZDA3, and Mazda 626 owner’s purchase probability for the 2009 MAZDA6 and what incentives might maximize their repurchase behavior. 2. Methodology Primary and secondary research was conducted during December 2007 and January 2008. Two internet sites (www.edmunds.com and www.carsurvey.com) representing 1,985 Mazda owner’s data was coded into ten different factors which could influence overall satisfaction. A regression analysis was then run on MAZDA3 and MAZDA6 owners to predict which factors most influenced overall satisfaction. In addition, 212 Eastern Massachusetts current MAZDA3, MAZDA6, and Mazda 626 owners completed an online survey on customer satisfaction, intent to purchase, as well as demographic, and psychographic information before receiving a series of color pictures and facts about the 2009 MAZDA6. Respondents were then asked intent to purchase questions about any Mazda, the 2009 MAZDA6, and whether they would recommend Mazda to a friend or family member. 3. Conclusions Primary research results indicate high correlation between Mazda customer satisfaction (95%) and intent to repurchase (87%), high likelihood to recommend Mazda to a friend or family member (93%), and opportunity for Mazda to generate 2009 MAZDA6 sales from current Mazda owners after receiving information about that model (70%). MAZDA3, MAZDA6, and Mazda 626 owners all increased their intent to purchase any Mazda/MAZDA6 after seeing the 2009 MAZDA6. In addition, results from secondary research indicate that “Reliability”, “Fun to drive” and “Fuel Economy” are the top factors that affect MAZDA6 and MAZDA 3 owners’ purchasing behavior. 4. Key Primary Research Findings (N=212) A. There is a high correlation (.624 at the 99% significance level) between Mazda customer satisfaction and intent to repurchase. B. MAZDA3 owners are the best prospects to repurchase another Mazda (92%) C. MAZDA6 owners are the best prospects to purchase the 2009 MAZDA6 (76%) D. Mazda 626 owners are least likely to repurchase a Mazda (79%) E. Cash Rebates are not the most compelling incentives to repurchase a Mazda. F. Improved Dealer Service provides an opportunity to increase customer satisfaction. G. There are psychographic and demographic differences between Mazda owners and how they see the Mazda brand. 2
  • 3. 5. Key Edmunds.com Research Findings (N=1,327) A. There is a high correlation (9.45 versus 8.99) between customer satisfaction and intent to repurchase. B. MAZDA3 owners (9.11) are the most satisfied Mazda owners compared with MAZDA6 owners (8.99) and Mazda 626 owners (7.81) C. MAZDA6 owners are the best prospects to purchase a 2009 MAZDA6 (25.8 intent to repurchase score) D. Mazda 626 owners are least likely to repurchase another Mazda (7.81 lowest satisfaction) E. Cash might not be the best incentive to increase brand loyalty. 6. Key CarSurvey.com Research Findings (N=658) A. MAZDA3 owners (88%) versus MAZDA6 owners (71%) and Mazda 626 owners (56%) are the most likely to buy another Mazda B. Mazda 626 owners (31%) versus MAZDA6 owners (15%) and MAZDA3 owners (7%) would be the least likely to buy another Mazda 7. Indicated Action A. Significant additional research may not be necessary given the identical findings from the primary research of over 200 Eastern Massachusetts Mazda owners compared with the national secondary research of almost 2,000 Mazda owners. B. The most reliable predictor of customer loyalty (Net Promoter Score) scored highest of all owner responses, we could consider letting Mazda owners to speak for the MAZDA brand to maximize the word-of-mouth effect. C. Despite limited information (pictures and facts), the 2009 MAZDA6 seems to have resonated with Mazda owners and an immediate and aggressive targeted marketing campaign to MAZDA6 owners and future marketing campaign to MAZDA3 owners should be initiated. D. Marketing incentives like free gas in place of cash rebates may be preferred by Mazda owners and should be test marketed as soon as possible. E. Dealer service scored the lowest of all responses in Mazda owner satisfaction and should be further researched on a priority basis. F. Further marketing promotion on 2009 Mazda6 could use the findings on psychographic information and car features. 3
  • 4. DETAILED PRIMARY RESEARCH FINDINGS 1. MAZDA3 owners (compared to other Mazda owners) are the best prospects for any Mazda repurchase a. MAZDA3 owners have the highest overall consumer satisfaction levels (97%1) compared to MAZDA6 or Mazda 626 owners b. MAZDA3 owners have the highest overall Mazda Dealer service satisfaction levels (92%) compared to MAZDA6 or Mazda 626 owners c. MAZDA3 owners have the lowest Non Mazda Dealer service satisfaction levels (83%) compared to MAZDA6 or Mazda 626 owners d. MAZDA3 owners have the highest likelihood to purchase any Mazda for their next car (92%) compared to MAZDA6 or Mazda 626 owners e. MAZDA3 owners have the highest likelihood to purchase any Mazda for their next car (95%) after having received information about the 2009 MAZDA6 compared to MAZDA6 or Mazda 626 owners f. MAZDA3 owners have the highest likelihood to recommend any Mazda to a friend or family member (96%) compared to MAZDA6 or Mazda 626 owners 2. MAZDA6 owners (compared to other Mazda owners) are the best prospects to purchase a 2009 MAZDA6 a. MAZDA6 owner’s likelihood to purchase a MAZDA6 for their next car (75%) was higher than MAZDA3 or Mazda 626 owners before having received information about the 2009 MAZDA6 b. MAZDA6 owner’s likelihood to purchase a MAZDA6 for their next car (76%) was higher than MAZDA3 or Mazda 626 owners after having received information about the 2009 MAZDA6 c. MAZDA6 owner’s likelihood to recommend any Mazda to a friend or family member (94%) was higher than MAZDA3 owners or Mazda 626 owners. d. MAZDA6 owner’s likelihood to recommend a 2009 MAZDA6 to a friend or family member after having received information about the 2009 MAZDA6 (88%) was higher than MAZDA3 owners or MAZDA6 owners e. MAZDA6 owner’s likelihood to purchase any Mazda for their next car increased (8%) more than MAZDA3 or Mazda 626 owners after having received information about the 2009 MAZDA6 1 All percentages are from “very likely” and “somewhat likely” Mazda owners 4
  • 5. 3. Mazda 626 owners (compared to other Mazda owners) are the worst prospects for any Mazda repurchase a. Mazda 626 owners have the lowest overall consumer satisfaction levels (87%) compared to MAZDA3 or MAZDA6 owners b. Mazda 626 owners have the lowest overall Mazda Dealer service satisfaction levels (71%) compared to MAZDA3 or MAZDA6 owners c. Mazda 626 owners have the highest overall Non Mazda Dealer service satisfaction levels (92%) compared to MAZDA3 or MAZDA6 owners d. Mazda 626 owners have the lowest likelihood to purchase any Mazda (81%) after having received information on the 2009 MAZDA6 compared to MAZDA3 or MAZDA6 owners e. Mazda 626 owners have the lowest likelihood to recommend any Mazda to a friend or family member (82%) compared to MAZDA3 or MAZDA6 owners f. Mazda 626 owners have the lowest likelihood to recommend a 2009 MAZDA6 (79%) to a friend or family member after having received information of the 2009 MAZDA6 4. Both MAZDA3 and MAZDA6 owner brand loyalty increased after receiving information about the 2009 MAZDA 6 MAZDA6 MAZDA3 Mazda 626 Owners Owners Owners Intent To Repurchase Before Seeing 2009 Any Mazda MAZDA6 75.7% 92.1% 78.9% After Seeing 2009 MAZDA6 83.5% 94.7% 81.6% Percentage Increase 7.8% 2.6 % 2.7% Intent To Repurchase Before Seeing 2009 a MAZDA6 MAZDA6 75.7% 60.5% 73.7% After Seeing 2009 MAZDA6 75.8% 65.8% 65.8% Percentage Increase 0.1% 5.3% -7.9% 5. Purchase Incentives other than cash rebates are preferred by MAZDA3 and MAZDA6 owners a. Mazda 626 owners are most interested in cash rebates while MAZDA3 owners are least interested in cash rebates (% selecting cash after excluding higher value loan down payments) b. MAZDA3 and MAZDA6 owners would rather have free gas than cash rebates (gas value calculated at 12,000 miles/year, 25 MPG, and $3.00/gallon = $120/month) c. MAZDA3 owners would rather have either free gas or free consumables than cash rebates (consumables like the BMW plan calculated at $40/month) d. MAZDA6 owners would rather have free gas than cash rebates, but their preference for cash increases as the dollar amount of the rebate increases) 5
  • 6. 6. Satisfaction with Mazda Dealer Service is lower than any other metric and offers the greatest potential to further increase Mazda brand loyalty a. Mazda 626 owners are the least satisfied with Mazda Dealer Service (71%) and the most satisfied with Non Mazda Dealer Service (92%) b. MAZDA3 owners are the most satisfied with Mazda Dealer Service (92%) and the least satisfied with Non Mazda Dealer Service (83%) c. MAZDA6 owners are equally satisfied with Mazda Dealer Service (89%) and Non Mazda Dealer Service (91%) 7. Psychographic Differences a. MAZDA3 owners see themselves more responsible, tech-savvy, and creative than the Mazda brand, while they see the Mazda brand as more stylish and impulsive. b. MAZDA6 owners see themselves more responsible, insightful, sophisticated and passionate than the Mazda brand, while they see the Mazda brand as more stylish and fun. c. Mazda 626 owners see themselves more responsible, sophisticated and creative than the Mazda brand, while they see the Mazda brand as more stylish. d. Very Satisfied Mazda owners2 are more balanced people; still they see themselves more responsible and conservative, and less stylish than the Mazda brand. e. Mazda owners generally see the brand as more “stylish” and less “responsible” indicates how to find potential target customers. Mazda-3 Owners Psychographic Impulsive Stylish 5 Responsible 4 Fun 3 Insightful 2 1 they see MAZDA Free Spirited 0 Passionate they see themselves Creative Sophisticated Tech Savvy Conservative Confident 2 Mazda owners who chose “very satisfied” with their MAZDAs. 6
  • 7. Mazda-6 Owner Psychographic Impulsive Stylish 5 Responsible 4 Fun 3 Insightful 2 1 they see MAZDA Free Spirited 0 Passionate they see themselves Creative Sophisticated Tech Savvy Conservative Confident Mazda-626 Owner Psychographic Impulsive Stylish 5 Responsible 4 Fun 3 Insightful 2 1 they see MAZDA Free Spirited 0 Passionate they see themselves Creative Sophisticated Tech Savvy Conservative Confident Very Satisfied Mazda Owners Impulsive Stylish 5 Responsible 4 Fun 3 Insightful 2 1 they see MAZDA Free Spirited 0 Passionate they see themselves Creative Sophisticated Tech Savvy Conservative Confident (*MAZDA owners who chose “very satisfied with their MAZDA”) 7
  • 8. 8. Demographic Information a. Gender: More women are Mazda 626 owners Gender MAZDA6 MAZDA3 Mazda 626 Male 62.1% 59.2% 47.4% Female 37.9% 40.8% 52.6% b. Age: MAZDA3 owners are younger Age MAZDA6 MAZDA3 Very Satisfied Customer 60+ 9.7% 1.3% 5.8% 51-60 21.4% 12.0% 18.8% 41-50 22.3% 20.0% 22.1% 31-40 24.3% 16.0% 18.2% 21-30 21.4% 47.4% 32.5% 20- 1.0% 4.0% 2.6% c. Marital Status: More Mazda 626 owners are married Marital Status MAZDA6 MAZDA3 Mazda 626 Married 50.5% 48.7% 60.5% Living with partner/common law 6.8% 5.3% 2.6% Single/never married 35.0% 43.4% 23.7% Divorced/separated 6.8% 1.3% 10.5% Widowed 1.0% 1.3% 2.6% d. Children: More Mazda 626 owners have children Children MAZDA6 MAZDA3 Mazda 626 Yes 32% 26% 42% No 68% 74% 58% e. Occupation: More MAZDA3 owners are students MAZDA6 MAZDA3 Mazda 626 Student 10.7% 17.1% 5.3% Unemployed 1.9% 0 5.3% A home-maker 2.9% 1.3% 0 Retired/pensioned 5.8% 1.3% 5.3% None of the above 78.6% 80.3% 84.2% 8
  • 9. f. Education: MAZDA3 and MAZDA6 owners have more graduate degrees MAZDA6 MAZDA3 Mazda 626 Some high school 0 3.9% 0 High school graduate 4.9% 2.6% 0 Some college 10.7% 7.9% 18.4% College graduate 41.7% 39.5% 34.2% Graduate degree 24.3% 25.0% 13.2% Some post-graduate study 4.9% 11.8% 10.5% Post-graduate degree 12.6% 7.9% 13.2% Other (trade school, vocational training ...) 1.0% 1.3% 10.5% g. Income: MAZDA3 owners have lower incomes Income MAZDA6 MAZDA3 Mazda 626 $25,000 or less 2.9% 6.6% 5.3% $25,001-$50,000 11.7% 11.8% 5.3% $50,001-$75,000 22.3% 25.0% 26.3% $75,001-$100,000 17.5% 19.7% 21.2% $100,001-$125,000 13.6% 17.1% 13.2% $125,001-$150,000 9.7% 3.9% 13.2% $150,001-$175,000 9.7% 10.5% 5.3% $175,001-$200,000 7.8% 3.9% 10.5% Over $200,000 4.9% 1.3% 0 9
  • 10. DETAILED SECONDARY RESEARCH FINDINGS 1. MAZDA6 owners are the best prospects to purchase a 2009 MAZDA6. a. In order to determine the relationship between overall satisfaction scores and the likelihood to repurchase, 55 Loyal Mazda Owners* were analyzed. The overall satisfaction average was 9.45, the overall satisfaction score for average MAZDA6 owners is only 8.99, then we run a t- test between the two samples, the difference is significant at the 95% level, so we could safely make the assumption that the higher the score is, the more likely a Mazda owner will make repurchase. (* Loyal Mazda Owners either own more than one Mazda or they said they would buy a Mazda again.) b. A regression analysis based on 485 owners was run where the dependent variable was overall satisfaction and the independent variables are listed below: SUMMARY OUTPUT Coefficients Standard Error t Stat P-value Intercept 8.36155644 0.071885191 116.3182 0 Performance 0.221447698 0.063070316 3.511124 0.000489 Comfort 0.162163902 0.072238458 2.244842 0.025239 Roomy 0.22832378 0.101269666 2.254612 0.024613 Fuel Economy 0.408205418 0.074265554 5.496565 6.34E-08 Fun to Drive 0.497911697 0.080047921 6.22017 1.09E-09 Standard Options 0.230786868 0.0721047 3.200719 0.001463 Interior Design 0.32216031 0.075697587 4.255886 2.51E-05 Build Quality 0.397435455 0.127661735 3.113192 0.001963 Reliability 1.381674934 0.11738694 11.77026 3.11E-28 c. We are 99.99% confident that our model is statistically significant, and it can explain 40.2% of the entire data. In addition, we are 97% confident that each factor listed above has a significant impact on the dependent variable. Among them the four most important factors are: Reliability: +1.38, Fun to drive: +0.50, Fuel Economy: +0.41 and Build Quality: +0.40 10
  • 11. d. The average score on the above factors is presented below (N=690) 10 9.71 9.56 9.5 9.49 9.5 9.27 9.29 9.18 9.15 9.15 9 8.84 Reliability 8.52 Handling 8.43 8.5 Build Quality Fuel Economy 7.9 8 7.64 7.63 7.5 2003 2004 2005 2006 2007 MAZDA6 Intent To Repurchase By Model Year has increased every year since 2003 The intent to repurchase score is a combination of the four factors. MAZDA6 Reliability Fun to drive Build Quality Fuel Economy Intent to Repurchase 2003 8.52 9.18 8.32 7.64 22.81 2004 9.15 9.56 8.87 7.63 24.08 2005 9.27 9.5 8.95 7.9 24.36 2006 9.15 9.49 8.91 8.43 24.39 2007 9.29 9.71 9.42 8.84 25.07 Coefficient 1.38 0.50 0.40 0.41 e. Since Mazda has significantly improved the MAZDA6 since 2005, MAZDA6 owners are more likely to repurchase a new MAZDA6. This is consistent with the primary research findings. 11
  • 12. Mazda Car Year * likely to purchase Mazda 6 Cross Tabulation likely to purchase MAZDA6 Total Very Somewhat Somewhat Very Very Likely Likely unlikely Unlikely Likely 2003 Count 3 6 1 1 11 % within Mazda Car 27.3% 54.5% 9.1% 9.1% 100.0% Year 2004 Count 5 17 8 1 31 % within Mazda Car 16.1% 54.8% 25.8% 3.2% 100.0% Year 2005 Count 7 10 1 3 21 % within Mazda Car 33.3% 47.6% 4.8% 14.3% 100.0% Year 2006 Count 9 9 8 2 28 % within Mazda Car 32.1% 32.1% 28.6% 7.1% 100.0% Year 2007 Count 3 7 0 0 10 % within Mazda Car 30.0% 70.0% .0% .0% 100.0% Year 2008 Count 1 0 0 0 1 % within Mazda Car 100.0% .0% .0% .0% 100.0% Year Total Count 29 50 20 8 107 % within Mazda Car 27.1% 46.7% 18.7% 7.5% 100.0% Year 2. MAZDA3 owners are the most satisfied owners. a. A regression analysis based on 667 owners was run where the dependent variable was overall satisfaction and the independent variables are listed below: Coefficients Standard Error t Stat P-value Intercept 8.834793466 0.072266196 122.2535 0 Comfort 0.224953182 0.089425049 2.51555 0.012226 Roomy 0.149978206 0.079391079 1.889107 0.059509 Fuel Economy 0.227864603 0.063286811 3.600507 0.000352 Fun To Drive 0.179731423 0.07956353 2.258967 0.024355 Interior Design 0.12472105 0.079753239 1.563837 0.118547 Interior Quality 0.148992426 0.102442856 1.454395 0.146522 Reliability 0.51381521 0.116326694 4.417002 1.25E-05 12
  • 13. These results are statistically significant with 99.99% confidence and explain 12% of the data. In addition, the four most important factors (Reliability: +0.51, Fuel Economy: +0.23, Comfort: +0.22 and Fun to Drive: +0.18) which contribute to overall satisfaction are accurate at the 97% confidence level. 10 9.77 9.56 9.6 9.61 9.5 9.52 9.37 9.31 9.35 9.14 9.1 9.12 9 8.87 8.91 8.74 8.76 8.5 8.32 8.25 8.25 8 7.98 7.88 7.5 2004 2005 2006 2007 2008 Comfort Fuel Economy Fun to Drive Reliability b. MAZDA3 owners have higher satisfaction scores than MAZDA6 owners and the satisfaction score peaked in 2007. In addition, satisfied MAZDA3 owners would purchase a MAZDA6 when in need of a bigger car or as a second car for a child or spouse. This finding came from the eight MAZDA6 owners who had previously owned a MAZDA3. 3. Mazda 626 owners are least likely to repurchase another Mazda. a. Mazda 626 owners have the lowest overall satisfaction score. (N=175) 9.5 9.34 9.28 9.12 9.21 9 9.1 9.05 8.99 9.00 8.99 8.68 8.5 8.52 8.25 Mazda 3 8 Mazda 6 7.76 7.53 Mazda 626 7.5 7 7.00 6.5 2004 2005 2006 2007 2008 *the year range for Mazda 626 model is from 1998-2002 13
  • 14. 4. Cash might not be the best repurchase incentive. a. Since the average score for the people who received a discount was 8.64 and this is lower than the satisfaction score for an average MAZDA6 owner (8.99), a t-test against the two numbers indicates that we are 95% confident there is no evidence that cash incentives increase loyalty. This is consistent with the primary research despite the small sample size of 11 owners. Model Year Overall Score Loyalty s 2006 8.8 $9000 off MSRP i 2007 8.3 2k rebate s 2006 8.8 $9000 off MSRP i 2006 9.4 $5k off sticker s 2005 9.1 $6k off MSRP s 2005 7.8 $5k below invoice s 2005 8.6 MSRP-$8000! s 2005 9.5 $2k less than invoice s 2004 6.9 $4k off ticket s 2004 9.1 $4.5k off MSRP 14