CONSUMER CATCH-UP: Consumers value experiences over goods, and new law reimburses dealers for retail cost of warranty and recall repairs

ByMichael Finney and Simone Chavoor via KGO logo
Wednesday, October 16, 2019

SAN FRANCISCO (KGO) -- Consumers value experiences over things, new study finds

Would you rather own a shirt with your favorite band on it - or would you rather see that band live in concert?

A new study has shown that consumers increasingly value experiences, such as travel, over tangible goods. This shift in spending attitude had already been attributed to Millennials, but advertising agency Momentum Worldwide found this attitude across the board. Their international survey found that 76 percent of consumers would rather put their money toward experiences, not products.

"In just a few short years we've seen an enormous shift in consumer sentiments towards brands and their involvement in live experiences," said Momentum CEO Chris Weil.

New law allows car dealerships to be more fairly compensated for warranty or recall repairs

Governor Gavin Newsom signed CA AB179 into law this Saturday, which will change the rate for auto dealers getting reimbursed by the carmaker for warranty or recall work.

Previously, franchised auto dealerships were compensated for warranty or repair work at a significantly lower rate than what a regular customer would be charged - sometimes 40 percent less than retail. Now, carmakers must reimburse dealerships at rates "equal to the franchisee's retail labor rate and retail parts rate."

Take a look at more stories and videos by Michael Finney and 7 On Your Side.

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