Auto brand loyality fading

carsWhereas in the 1980s nearly four in five Americans were repeat buyers of the same brand of automobile, a new survey shows only 20 percent show such loyalty today.  School of Management marketing Professor Shuba Srinivasan, who studies auto-industry marketing, says increased reliance on sales promotions is partly to blame.

“Over the last decade, the auto industry has seen an excessive reliance on sales promotions rather than an emphasis on ‘getting the products right’ through innovations.  In fact, promotion escalation can lead to erosion in brand loyalty in the long run.”

Contact Shuba Srinivasan, 617-353-5978, ssrini@bu.edu

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