Survey Data on Owner-Reported Car Problems: How Useful to Prospective Purchasers of Used Cars?

Abstract

This study assesses the predictive validity of aggregate frequency data yielded by Consumer Reports' annual surveys of problems experienced by owners of used cars. For cars representing each of five model years (1975-1979), bivariate and multivariate correlational techniques were used to analyze the data of six annual surveys. The data report owner problems experienced in 15 to 17 individual categories as well as an overall category. The study findings indicate that each year's reported frequencies of problems are highly predictive of next year's, both for the overall and individual categories. Predictability was found to differ significantly by individual problem category and by the recency of the survey data. Policy implications of the findings are discussed for consumer magazines, such as Consumer Reports, and for consumer educators and consumer researchers.