Vehicle Styling Can Offset Quality Deficiencies, Spur Sales Increases, Says A.T. Kearney Study

Research Also Shows That Interior Styling Often More Important Than Exterior Design

SOUTHFIELD, Mich., Dec. 14 -- As new vehicle quality rankings converge, styling is emerging as a key differentiator for consumers as they decide on the make and model of their next purchase. This is according to a study recently conducted by the automotive practice of global management consulting firm A.T. Kearney.

The study found new and dynamic body styling can serve as a positive substitute for quality deficiencies in the short-term. In recent years, consumers have come to expect a satisfactory level of quality in most new vehicles. Accordingly, as quality has become less of a factor in purchase decisions, vehicle styling has grown in importance as a key differentiator.

"A clear trend indicates that sales generally increase for vehicles with new or freshened styling. In case after case, this has held true even when quality ratings for these vehicles are less than stellar," said Paul Carrannanto, co-author of the study and principal at A.T. Kearney.

Carrannanto also noted increased sales for vehicles with new styling continue for about two years. After that time period, sales fall off to previous levels and, in some cases, decline even more.

"To maximize consumer interest and subsequent sales, exterior styling should be new or freshened every two to three years," said Carrannanto.

According to Carrannanto, over the past five years, brands with high styling scores tended to be sales growth leaders. These included BMW, Lexus, Acura, Nissan, Volvo, Cadillac and Chrysler.

The styling research also revealed that interior design is often more important than exterior styling and may be, in many instances, the key factor in the purchase decision.

"New and interesting exteriors draw consumers to showrooms, but it's the interior styling that closes the deal," said Carrannanto. "For the consumer, a vehicle interior is a lot like a living room and they have to like it before they'll go through with the purchase."

Methodology

The A.T. Kearney study was conducted by comparing information contained in the 2004 J.D. Power Appeal Survey, 2000-2005 J.D. Power Initial Quality Study and the 2000 -- 2004 Ward's North American Vehicle Sales Summary.

About A.T. Kearney

A.T. Kearney is one of the world's largest management consulting firms. With a global presence that includes offices in 34 countries, A.T. Kearney provides consulting services in the areas of strategic operations management, transformation and organization, and technology strategy to leading private and public sector clients around the world.

Over the past three years, A.T. Kearney has provided management consulting services to 69 companies out of the Fortune 100 in North America and to 73 of the Fortune Global 100 worldwide.

  For more information, visit http://www.atkearney.com/