Consumers Trust Toyota

If you would ask anyone why Toyota is such a huge hit among consumers, I think the answer will be either the fuel efficiency of their vehicles but more importantly, it is the reliability that makes consumers trust the Toyota brand. The Japanese automaker's power of creating good vehicles that make consumers keep coming back is certified in the newest study conducted by J. D. Power and Associates.

Said firm's research entitled the 2007 Consumer Retention Study is a measure of how much of an automaker's buyer base bought a new vehicle from the same automaker. At the end of the day, Toyota is still number one with 64.6 percent of its previous customers coming back and buying a new vehicle from the Japanese brand. This is the second year that Toyota has achieved the feat.

Neal Oddes of J.D. Power had this to say according to The Auto Channel: "Toyota's high customer retention rate is particularly notable, considering that new-vehicle sales have declined in the past year. Toyota maintains its high retention rates by providing high-quality vehicles and service to its existing customers, which in turn generates favorable word-of-mouth recommendations that attract new customers."

Toyota is almost the largest automaker in the world right now. For the company to achieve that goal, it has to continue coming up with great vehicles that consumers would surely come back for. Oddes expects the competition to heat up somewhere down the road so Toyota has to keep its lead in developing vehicles which are even more reliable that Dodge tie rod ends.

Oddes said: "Competition for a dwindling number of new-vehicle buyers will likely intensify in the next seven years, meaning that brands will need to retain more of their existing customers in order to increase, or even maintain, market share. In addition, it is approximately four times more costly to attain a new customer than it is to retain an existing one, so in the face of a very competitive new-vehicle market, a strong focus on customer retention becomes particularly important."