IHS Automotive is a global provider of critical information and insight to the automotive industry and part of IHS Inc. Its Recent research confirms consumer demand for these systems is high, with 95 percent of respondents across four key automotive markets saying they would prefer to have a brand name car audio system. Among these, 70 percent indicated that a brand name audio system would influence their vehicle purchase decision. In addition, 44 percent of those willing to pay for a premium audio system wished it would be standard equipment on their next vehicle.
Brand Preferences Matter
For respondents in the U.S., UK, China and Germany who indicated a brand preference for their audio system (95 percent), 70 percent said that a brand name audio system would influence the car purchasing decision, with over half of that cohort indicating that the brand in question would be the deciding factor.
With the exception of China, Bose is the most "influential" audio brand in the four countries surveyed. In China, Sony led the rankings.
Given these findings, OEMs wanting to conquest a buyer in the U.S., UK or Germany, may consider offering a Bose hi-fi system as a compelling way to improve conquest rates.
Sony, however, is the most recognized brand overall in all four countries, with established brand leadership in China. Nevertheless, when respondents were asked how they recognize the brand – whether car audio, home audio or other sources – Alpine emerged as the most recognized car audio brand.
Bose is the number one brand owned or previously owned by respondents in the U.S. and Germany, while Sony is noted as the number one brand owned or previously owned by respondents in China and the UK.
Brand Loyalty, Reputation and Quality
Respondents in all countries predominantly indicated they would choose the same brand again, with U.S. respondents reflecting the highest loyalty, at 91 percent. Respondents in the UK and Germany trailed slightly, while 23 percent of respondents in China indicated they would not buy the same brand again, significantly more than in other countries.
"According to our survey, respondents in all countries predominantly chose to stay with the same audio brand they had used previously," said Celina Li, senior analyst, infotainment systems at IHS Automotive. "In essence, if consumers can be encouraged to buy a branded audio system, they tend to stick with that brand in the future."
Among those choosing Bose as their preferred premium audio brand in the U.S., UK and Germany, primary reasons provided were reputation and good quality/sound. Other secondary factors included positive reviews and the fact that consumers use Bose products elsewhere.
For consumers surveyed in China, Sony likewise ranked highest due to good quality/sound, followed by brand reputation and word of mouth, an attribute that did not resonate as a high influencer among consumers in the other countries.
Consumers Willing to Pay for Premium Audio
Overall, consumers across the four countries generally prefer a premium car audio system. More than 67 percent of the new car intenders surveyed would be willing to invest in a premium car audio system.
From a price perspective, respondents in the U.S., UK and Germany indicated a willingness to spend, on average, between $2,224 and $2,841 on a premium audio system in their new vehicle, with respondents in China indicating an even greater willingness to pay more – up to $3,174 on a premium audio system, potentially because they value luxury systems such as premium audio that can suggest high social status, and would therefore pay a premium price for it.
Source: IHS Automotive
Enjoy curated articles directly to your inbox.