Communications of the IIMA


Before purchasing a car, consumers review the information on the quality, reliability, safety and customer satisfaction to minimize their risk of purchasing a car with defects. Two major sources of such information are Consumer Reports and surveys by J. D. Power and Associates: Initial Quality Survey and Vehicle Dependability Study). These reports have established a reputation for their independence, reliability and unbiased opinions. The purpose of this paper is to determine whether consumers rely on these reports in purchasing a new car, and if this is the case, which report has more impact on consumer purchasing behavior. The impact of these reports on the market share of the foreign and domestic automobile manufacturers in the U. S. market between 2001 and 2012 was analyzed using the event study methodology.