(J.D. Power and Associates: Westlake Village, CA) -- New-vehicle owners are increasingly citing fun-to-drive vehicles as a top reason to remain loyal to their brand, while shifting away from expected resale value as a loyalty reason, according to the recently released J.D. Power and Associates 2010 Customer Retention Study.

Now in its eighth year, the study measures the rate at which automotive brands retain their existing customers and the reasons why owners remain loyal. Customer retention is critical to a brand’s market success, particularly during the current period of slow recovery, in which each new-vehicle sale is vital.

The study finds that the importance of fun-to-drive vehicles as a reason for owner loyalty has increased by eight percentage points in 2010, compared with 2009. Meanwhile, the importance of resale value as a reason to stay loyal has decreased by 10 percentage points from 2009.

In addition to customer retention, the study also examines rates at which automotive brands capture customers from their competitors, a process known as “conquesting.” The importance of a fun-to-drive vehicle has also increased as a reason why brands appropriate new customers from their competitors, as has vehicle styling.

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