8 million Toyota vehicles recalled, but owners still remain loyal
ANI
Updated Sat 6th Mar 2010 14:34:03 / Published Sat 6th Mar 2010 14:33:38
Washington, March 6:  Despite the 8 million Toyota vehicles recalled since October 2009, its customers are still maintaining high overall satisfaction, a report claims.

Rice University's Jones Graduate School of Business conducted a survey-based study of a national sample of U.S. vehicle owners.

It was learnt that the level of overall satisfaction with their vehicles' quality was equally high among Toyota owners and owners of other vehicles.

In fact, Toyota owners held a more positive view of the company than their counterparts.

Vikas Mittal, the J. Hugh Liedtke Professor of Marketing at Rice, said: “The recall does not seem to have dampened Toyota owners' evaluations of their vehicles.”

"Before the recalls, Toyota's reservoir of brand equity was seen as unparalleled among its customer base. That didn't just vanish.”

“The consistent and high level of satisfaction with the brand experience means that their current customers are viewing this performance lapse as an anomaly."

Mittal and his co-authors Rajan Sambandam, chief research officer at TRC, and Utpal Dholakia, associate professor of marketing at Rice, observed that Toyota's goodwill led to a "brand insulation effect" that protected the company from the recall's negative effects coming from current customers.

Dholakia said: “All the findings from our survey support one compelling and consistent conclusion: Toyota's customer base is insulated because of its consistent and high customer satisfaction levels in the past. The long-term prognosis is promising. Toyota can become a textbook example of how consistent customer-satisfaction can insulate the brand, even if it falters."

As part of the study, Toyota owners were asked to rate on the 0-to-10 scale whether they would consider Toyota if they were to buy a new vehicle today, their ratings averaged an 8, whereas other automobile owners' ratings averaged a 4.

Dholakia ended: "If Toyota does return to its traditional focus of product quality and safety, it will claw its way out of this recall. It might lose some sales in the short run, but Toyota owners say they are still likely to buy a Toyota in the future."

Comments on this story
8
Toyota
by Babayan on 2010-03-23 00:00:00
My all cars were Toyota models: Corolla, Camry, RAV4, and now Lexus. First thing that comes to my mind to describe these cars that they are very reliable with minimum maintenance requirements. Just pump gas and drive. I will get another Toyota when time comes. This can not be right that car with the highest consumer rating through so many years now become dangerous.
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Toyota
by Babayan on 2010-03-23 00:00:00
My all cars were Toyota models: Corolla, Camry, RAV4, and now Lexus. First thing that comes to my mind to describe these cars that they are very reliable with minimum maintenance requirements. Just pump gas and drive. I will get another Toyota when time comes. This can not be right that car with the highest consumer rating through so many years now become dangerous.
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Toyota still good
by Zac on 2010-03-07 00:00:00
I have a 2008 Toyota Camry and although it wasn't involved in the recall, I highly recommend the brand. I think people are getting on the bandwagon by blaming Toyota for a manner of ills because it is not an American company. Much of the news, blogs, articles, opinions are coming from America. Because of the state of the US economy where American business and image are floundering blaming a foreign company is an acceptable sport.
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Toyotas

by lisa581 on 2010-03-22 00:00:00
I've had a couple of Toyotas before and my Dad's always had them and they've always been great, but I'm not sure how I'd react if I had one of this bad batch!
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Run Away from Toyota

by Triatomic Tortoise on 2010-03-14 00:00:00
You are dead wrong. The real reason of the resistance is completely different, more to do with American consumer psychology. I own a Toyota that started breaking apart during warranty. I consider Toyota quality now behind the American models. I have a solid Honda that never breaks and I rate it very high.
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Vain Hopes
by irlandes on 2010-03-07 00:00:00
Darn, I was hoping the market for used Toyotas would tank long enough for me to get a two year old Sienna for $5,000, then it could go back up. My 2002 has 167,000 miles, love it, expect to run it another five years, but a newer one would be cool.
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8
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