J.D. Power and Associates is a marketing information firm based in California that is known for its automotive customer satisfaction and product quality surveys that are often touted by manufacturers in advertising. The company also studies the electronics, healthcare, home improvement, insurance, and travel industries. And since 1997, J.D. Power has undertaken studying the buying habits of motorcyclists across the U.S., of both motorcycles and even some riding gear.
The Californian firm released information from its latest "2010 U.S. Motorcycle Competitive Information Study" recently, and one aspect of its press release regarding the study has caused a stir among some motorcyclists.
The majority of the press release discussed findings that - for those of us who have ever purchased a motorcycle from both good and bad dealerships - seem painfully obvious. For instance, the first was that dealers (and manufacturers) that go out of their way to help a customer ("including a fluid and seamless process in servicing their motorcycle") are much more likely to have the customer either recommend or repurchase the same brand. Umm...you think?
Another staggering discovery was that new motorcycle owners who experienced at least one problem had significantly lower overall satisfaction than owners who did not experience a problem. And then there was the gem, "Sales volumes and revenue of ancillary goods and services tend to be considerably higher - by an average of $957 - at motorcycle dealerships that provide a highly satisfying experience vs. dealerships that do not." I'm not sure what dealership/manufacturer would consider this breaking news, but I wonder how they stay afloat if so.
But the statement that has some forums and websites all wound up was the one regarding the average age of motorcycle buyers. According to the study, "The population of motorcycle buyers is aging, with the average rider age increasing from 40 to 49 years since 2001 - an indication that many owners may soon exit the market. Additionally, the percentage of first-time buyers has declined for a second consecutive year, making it more critical now than ever for manufacturers to focus on attracting new customers."
The mention of the declining percentage of new motorcyclists had some Internet forums buzzing with debate - but what was overlooked was the real cause behind it. The vast majority of new motorcycle sales in the U.S. are made on credit, and the credit market really began to freeze up in 2009 as the subprime mortgage crisis reached critical mass and banks suddenly became very picky about who they lent their money out to. Motorcycles are viewed as a luxury item in the U.S., and first-time buyers are not exactly high on the banks' list of low-risk debtors. And once the global economic meltdown made its impact on consumer spending in 2010, disposable income became a virtually non-existent term.
Regarding the aging population of motorcycle buyers, the largest portion of bike sales are by far in the cruiser segment, and have been for over two decades. The so-called "baby boomer" generation (not coincidentally, the 40-year-plus age group) has been largely responsible for the cruiser segment's sales domination of the motorcycle market. With such a huge proportion from this population sector, it's easy to see why the numbers are skewed in that direction.
Nonetheless, the fact remains that a very substantial portion of that cruiser segment will soon age itself out of the market. And because of its large percentage of sales, the cruiser market's health on both the manufacturers' bottom line - and the overall wellbeing of the motorcycle industry - is still very influential. The other motorcycle market sectors (including sportbikes) currently aren't growing fast enough to fill the void that would be created should the bottom fall out from the cruiser segment's numbers.
Is this an indication of another crisis heading our way? Possibly. Even though any voluntary survey's results are always subject to debate (due to the poor response percentages that hover in the single digits), there's no arguing the aforementioned aging of the cruiser market. More beginner motorcyclists are interested in something sporty, so it's good to see other manufacturers beginning to follow Kawasaki's lead in offering hospitable and economical sportbikes (Honda's new CBR250R is one) at reasonable prices. But the issue of attracting new blood to our sport is something we'll need to tackle sooner or later.