A study that came out today from Gfk Automotive revealed that dealers and OEMs might have a hard time fostering brand loyalty among the younger generations.

The Gfk Automotive Intentions and Purchases Study — which monitors consumer demand for vehicles — showed that car buyers from the X and Y generations may be more concerned with new technology and electronics than automobiles.

Moreover, according to the survey, Generation X (born 1965–1980) and Generation Y (1981–1994) have demonstrated much lower tendencies towards brand loyalty than their older counterparts.

As a result, overall brand loyalty might begin to slide even lower in the next few years, proving to be a problem for dealers and OEMs working to retain their customer base.

Also, dealers might find this trend to be particularly challenging while searching for quality trade-ins from current customers to add to their certified pre-owned stock — as wholesale prices continue to soar.

Doug Scott, senior vice president of Gfk Automotive, also offered his opinion on the potential drop in loyalty, noting automakers need to ramp up marketing efforts: "Automotive brands need to be aware of the effect of disenfranchisement among both Generation X and Generation Y and ensure appropriate product and marketing efforts.

"Younger purchasers, Generations X and Y, are least brand loyal, while Boomers and Pre-Boomers remain brand loyal,"  he added, stressing that at the moment, manufacturers are still enjoying the brand loyalty of the older generations.

According to the study, the struggling economy is not what is affecting the younger buyers’ vehicle purchase choices.

Rather, the study results showed that these generations are apparently more concerned with things like home entertainment systems, smartphones and the Internet — not the car they drive.

Consequently, Gfk asserts that automakers must “develop a method to reach these consumers and offer them automobiles that may incorporate some of the connectivity technology they consider most important to them.”

While manufacturers face the challenge of pulling in younger buyers, “determining the needs of this ‘mobile’ generation will become critical for marketers to understand in the years ahead,” company officials concluded.