Canadian Automotive Consumer Confidence “Fear Factor” Study – March /April 2009

Prepared by TJAA Analytics Group


Abstract

This quarterly study analyses fundamental psychological issues and socioeconomic vectors facing the Canadian automotive consumer in the next several months – for services and products alike.

Employment prospects
    The Complexity Theory suggests that once an organization/corporate entity achieves a certain level of complexity it becomes increasingly prone to failure. As recent history shows us, the last decade’s obsessive structural over-optimization has changed the employment game forever. Be very aware of the danger that lies below the new lows.

Financial propaganda

   Explaining the ecology of theautomotive financing system has never been easy, but the current paucity of relevant information makes things worse.
It could pay off handsomely to be on guard (and prepared) – as at intuitive level the consumer knows the game and expects YOU to deliver.

The “Recency Effect”
    Could the recent debt-fueled ‘conspicuous consumption’  - Thorstein Veblen’s gift to OEMs – be preserved? Will consumer remember it? It’s essential to understand – correctly – this phenomenon and its relationship to consumer's confidence. 
   
Canada’s international diasporas
 The ever-shrinking information circles have a tremendous effect on Canada’s huge immigrant population. Find out how real-time global information impacts Canadians' purchasing decision makers.

‘Emotional Purchase’ boomerangs back
    After spending billions of dollars in persuading masses that purchasing a vehicle is an ‘emotional’ life-styled event, the industry has got its whish. Now dealing with the aftermath, may require even more billions - just to get back to 'transportation'.  What are YOU going to do about IT ?

Stimulus programs
    After April 01, everyone is expecting a technical market break and credit acceleration. Will it happen? We’re focusing on the pro and contra consumer arguments as related to the policy attempts to induce more debt rather than allowing financial prudence and consumer’s obligations to align. Strategy Bonus: How to avoid a real costly April Fool's Day joke.

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