Do parents drive our car choices?

New research suggests there is a two in five likelihood the young lady in white will buy the same make of car as her parents did.

New research suggests there is a two in five likelihood the young lady in white will buy the same make of car as her parents did.

Published Oct 17, 2014

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East Lansing, Michigan - New research suggests dear old Mom and Dad could be the auto industry's secret weapon.

The study, co-authored by Michigan State University economist Soren Anderson, found children were 39 percent more likely to buy a particular make of car if their parents had one.

This surprisingly strong correlation could have implications for carmakers' marketing efforts.

Many car companies tend to 'invest in young customers' with attractive prices on entry-level offerings and make their money back with bigger margins on cars aimed at families and more established, possibly repeat customers.

But if first-time customers are walking in with brand loyalty inherited from their parents, loss-leader price wars on 'starter cars' are more likely to simply devalue the brand in customers' eyes.

Conversely, money invested in incentives to attract a family man away from a rival badge has a nearly two in five chance of selling the same brand of car to his children in 15 years time - and in marketing terms those are good odds.

TWELVE-YEAR RESEARCH PROJECT

The researchers studied the national survey responses related to auto ownership brands such as General Motors, Ford, Chrysler, Toyota and Honda, collecting data from more than 4300 adult children matched to nearly 2600 parents, every two years from 1999 to 2011.

Anderson concluded: "In theory, these findings could change the way manufacturers price and market their cars."

Parents and children, he found, tended to share characteristics - such as making similar amounts of money and living in the same area - and this could also influence what they buy.

Anderson said the study took this into account by factoring in where people lived, along with their income, age, education, gender and family size.

"Is this really about the cars," he asked, "or could it be other factors, such as parents and children tending to be more similar to each other than other people?"

"We're pretty sure it has something to do with the cars themselves."

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