TREND TRUTH
Cash for Clunkers Aids Auto Makers
This month, FGI Research conducted several social media scans on a wide variety of subjects. Blog sites were incredibly impacted by the untimely passing of pop music legend, Michael Jackson. Jackson’s fans reached out across the web to show their support and condolence. Currently, however, social media has been buzzing about the government’s stimulus program, “Cash for Clunkers” This program promises an incentive to consumers who would be willing to trade their inefficient ‘clunker’ for a new, more fuel efficient automobile.
The impact of this news on social media was huge; FGI Research noticed a sizeable spike in blog traffic surrounding this subject and Google Trends rated the term ‘Cash for Clunkers’ ‘Volcanic’ as it earned a number one spot on their most frequently searched list. Although this trend is spreading rapidly on the internet, the question for automakers is: Is this social media trend as ‘volcanic’ for all consumers, or is there a difference, in awareness when consumer demographics are considered?
FGI Research conducted an independent study this week on the impact of “Cash for Clunkers” on the purchasing habits of nationally representative consumers. Our results were quite surprising. 82% of respondents said that they had heard of the government program. We also found that the awareness of this program was impacted slightly by some demographic factors; for example, 70% of Hispanics said they had heard of this program, as opposed to 84% for non Hispanics. There was also a significant drop in the awareness of people ages 31-34 (57%) when compared to the average respondent awareness (87%). The highest two age groups in terms of awareness are 35-44 and 65+.
The future looks brighter for the auto industry this year as a result of “Cash for Clunkers”. Only 12% of respondents said that they had bought a car in the past six months, but 23% of respondents said that they planned to buy a car in the next six months. Of respondents who had not bought a car in the past six months, and had not heard of “Cash for Clunkers” before taking the survey, 17% said that they were more likely to buy a new car after learning of the program. It’s simple to see what a tremendous impact this government program has had on the American consumer in terms of new car purchases. The chart below highlights the sentiment of our respondents on the subject of “Cash for Clunkers.”
August 27th, 2009 at 1:12 pm
I couldn’t use Cash for Clunkers because I would have no way to pay for a new car. I’m sure there are a lot of others who are in the same boat. Even the $4,500 incentive wouldn’t help me or them.
August 27th, 2009 at 1:22 pm
In the area where I live, there was a lot of information about “Cash for Clunkers” on local and network TV. Numerous auto dealers had great sales during this program. However, it seems that the program ended almost a soon as it began!
August 27th, 2009 at 2:37 pm
cash for clunkers is great fore some people but didn’t really do anything for me
August 28th, 2009 at 5:15 am
It definitely is boosting the car industry in term of sale. But, at the same time, it is such a “waste of money” move by the government. We can call it a Spending Frenzy. Why? First, clearly, the environment issues will not be solved by “Cash for Clunker” program. Gasoline-fueled car will continue to damage the environment. Second, this program is the “good” way to contribute more to our nation outstanding debt. Third, during the recession, trading in our cars and buying new ones do not make any sense since there are many people are suffering and desperately in need for help.
February 15th, 2010 at 4:04 pm
What a farce! People who used it to buy a new car were going to buy a new car anyway. It was an effort to buoy up the Big Three, who still face big obstacles. They were just able to unload a large amount of the 2009 models that littered their lots. With the exception of Ford, GM and Chrysler are now run by the Fed. Again, what a farce!
February 19th, 2010 at 4:54 am
Thank you for the excellent article. Best thing I read all day. Look forward to reading more from you in the future