Bose Wins J.D. Power Award For Audio Makers

Bose achieves the highest brand power score among audio manufacturers for a third consecutive year, according to the J.D. Power and Associates 2005 Automotive Component Branding Study released this month.

Brand strength in the market is measured by assessing consumers’ top-of-mind awareness (unaided awareness), brand name/logo recognition (aided awareness) and favorability (impression). High brand power scores indicate positive impressions and strong awareness among consumers.

With a combination of strong consumer awareness and favorability, Bose ranks highest in the study, receiving the highest brand power score. Sony follows Bose in the rankings, receiving both strong top-of-mind and aided awareness among consumers. Pioneer, which receives high ratings in unaided awareness, follows Sony in brand power. Dolby performs well in the area of favorability and Panasonic performs well in aided awareness to rank fourth and fifth, respectively. Although Dolby is not a manufacturer of end-use consumer products, its technology is common in many facets of audio entertainment and is employed by the majority of audio equipment manufacturers.

While superior sound quality is important to consumers, brand name still commands a premium. The study finds brand strength plays an integral part in how much consumers are willing to pay for upgraded or premium audio systems. An upgraded audio system might include a satellite radio-ready AM/FM/in-dash six CD player/changer with eight speakers. A premium audio system might additionally include eight to 14 speakers plus surround sound.

Consumers who would purchase an upgraded system report they would pay $358 on average for a non-branded system, and 87 percent say they would pay more for a brand name system. Additionally, consumers who would purchase a premium audio system report they would pay, on average, $616 for a non-branded system. Ninety-three percent say they would be willing to pay more for a brand name system. Within both upgrade and premium audio options, Bose is cited most often as the brand consumers would be willing to pay an additional amount to own.

"When we asked consumers about the importance of branding, one-third believe it is important to know the brand of the AM/FM CD player/changer in their vehicle," said Larry Wu, senior director of automotive emerging technologies at J.D. Power and Associates. "Consumers associate certain brand names with a specific level of quality."

Other automotive component brands that have achieved high awareness ratings include OnStar, Sirius Satellite Radio and XM Satellite Radio. Consumers associate OnStar with safety, security and reliability/dependability. Sirius and XM are associated with being widely available and innovative.

"These component brand names are becoming more recognizable to consumers with the increase of factory installations into new vehicles and heavy promotion in the media," said Wu.

The 2005 Automotive Component Branding Study is based on a Web-based survey of nearly 7,500 consumers who purchased or leased a new vehicle in the past six years.

posted by Consumer Help Web Editorial Team at 12:16 PM |