Sunday, January 4, 2009

Hyundai Alleviates Consumer Uncertainty

Hyundai gets my award for Most Relevant Automotive Consumer Campaign. Ok, no such award exists but if it did - Hyundai would take it in a second. The Hyundai Assurance program promotes the idea of relieving car shoppers from the concern of job loss. What with Economists talking about a possible national 11% unemployment rate, it certainly is something very top of mind. Besides, who really wants to buy a car if one is concerned about not receiving paychecks weeks or months after adding a sizable car payment to one's monthly bills?

So, Hyundai came up with a program to let customers return a newly leased vehicle if they suffer a job loss. They teamed up with, a company that insures people from their commitment when "unforeseen life events occur." The "We've Got Your Back for One Full Year" message is concise, culturally relevant, and hits a macro economic issue that has dramatically deterred car sales. It also gets a company away from more money on the hood to try to entice buyers. The discounts going on today have hit $7,000 to $8,000 in December on truck products with tons of promotions across the industry like 0% financing, employee pricing, or both.

Hyundai essentially gets to the root of the problem -- Uncertainty. Price isn't the issue. "The question for consumers right now is what is going to happen to their income in 2009," Joel Ewanick, Hyundai Motor America's vice president of marketing, told Automotive News. "That's what is keeping them on their couches. No matter how big the rebate you put out, the real issue is fear."

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