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Global Auto Shopper Study Mexico June 2014

Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

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Page 1: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Global Auto Shopper Study

Mexico

June 2014

Page 2: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Agenda

Brand Power Brand Selection Driving the Decision

Search Central

Video Impact

Cross-Shopping

Market Insights

Dealer Support Buyer Outreach

Dealer Visits

Buying Online

Post-Purchase

Page 3: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

United States

New auto buyer markets

Mexico

Brazil

Argentina

India

Japan

Korea

China

Thailand

Saudi Arabia

United Arab Emirates

United Kingdom

France

Germany

Italy

Portugal

Denmark

Spain

Russia

Page 4: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Sample groups/sizes per country

*After-sales market

Country New Used ASM*

1 Argentina XXX

2 Brazil 702

3 China 700

4 Denmark 700

5 France 701 504 1001

6 Germany 700 502 1005

7 India 702

8 Italy 700 501 1000

9 Japan 700

10 Korea 700

Country New Used ASM*

11 Mexico 701

12 Portugal XXX

13 Russia 702

14 Saudi Arabia XXX

15 Spain 700 501 XXX

16 Thailand 700

17 United Arab Emirates XXX

18 United Kingdom 702 501 1001

19 United States 702

Page 5: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Method Overview

•  Study conducted annually with Google since 2009 •  Online survey method used consistently in all countries •  Global Field dates: Spring/Summer 2014 (individual countries vary)

Recruiting •  General population Internet research panels using best practices •  Double opt-in, recruited from broad base of online, CATI and postal sources •  Comply with CASRO best practices guidelines; ongoing relationship with panelists

Sampling/selection

•  Access to survey managed using stratified random sampling based on joint distribution of age/gender categories throughout the duration of data collection

•  Suspect respondents are removed (based on data integrity, straight-lining and speedsters)

Screening criteria •  Purchased a new automobile within the last 12 months; exit survey of those who plan to purchase next 6 months •  Decision-makers/influencers •  Eligibility masked by time of purchase and type of automobile

Weighting

•  Minor weights applied to correct for skews in age, gender, Internet usage per country •  Weighting is based on each market’s Internet population (Source: Connected Consumers 2014 - TNS Infratest (CATI/In-person) which exhibits

similar compositions to other 3rd party (e.g. Pew) data sources.)

Page 6: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Executive Summary

Page 7: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Decision-making happens everywhere

Mobile devices empower buyers to explore more, learn more, and decide with confidence. Smartphones are on-hand, even at the dealer.

Cross-shopping is the norm Armed with information, buyers are engaged and discerning. Buyers are open to options—many with initial favorites change their minds and some even buy brands they discover during research.

Search is indispensable Search engines are where many buyers go first and are used more than any other source to decide. Buyers say search engines help them discover new brands and stay in touch with the brands they love.

Video makes research easy, informative and social

Auto videos help buyers connect with brands, features, dealers—and other buyers. Like search engines, they help buyers get answers and stay in touch with the brands they love.

The role of the dealer is changing

Informed buyers visit dealerships already knowing the models and features they want. To help close the sale, offer a pleasant experience with knowledgeable salespeople and many models to see.

Executive Summary

Mobile Devices

Digital buyers drive the purchase decision

Cross-Shopping

Search Central

Video Impact

Role of Dealer

Brands win by meeting buyers on their terms – throughout the purchase journey

Page 8: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Buyer Power

Page 9: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Driving the Decision

Page 10: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Key decisions 7 in 10 need to decide brand and/or model

15% 32% 6%

Source: When you first started shopping for your automobile, did you have …? Base: All auto buyers n=596

41%

An exact idea of the brand and

model to buy

Few models in mind, but no idea about brands

Few brands and models in mind

Few brands in mind

No idea

85% Need to decide

brand and/or model

7%

Page 11: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Going online to decide

86% 76% 61%

Source: Did you use this device for auto research? Base: Use device n= Computer 512, Smartphone 471, Tablet 388

Buyers are using multiple devices to decide

Computer/Laptop Smartphone Tablet

Page 12: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

57%25%

18%

Mobile time Nearly a quarter of research time is spent on mobile devices

Source: Approximately what percent of that time was spent on each device? Base: Used at least one device for auto research n=549

Computer/Laptop

Smartphone

Tablet

Page 13: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Mobile activities All devices are useful for reading reviews and looking up pricing info

Source: Which of these activities did you do on each device? Base: Use device for auto research n= Computer 467, Smartphone 409, Tablet 335

Top Activities per Device

1 Learn about brands/models

2 Read reviews of brands/models

3 Look up pricing info

1 Read reviews of brands/models

2 Look for rebates/offers

3 Look up pricing info

1 Read reviews of brands/models

2 Learn about brands/models

3 Look up pricing info

Page 14: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

20%

17%

17%

15%

15%

On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones

Auto Research at Dealerships

Source: Which of these activities did you do on your smartphone while visiting a dealership? Base: Did at least one activity on smartphone n=367

Read reviews of brands/models

Look up pricing info

Look for rebates/offers

Learn about brands/models

Compare prices from various dealers

do research at dealerships on smartphones

79% 20%

Page 15: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

3.4

2.3 2.4 2.7 2.3

4.9

Quick + confident Older buyers and first-time buyers take longer to decide

18-24 25-34 35+

Source: How much time passed from when you first started researching which automobile to buy to the time you bought it? Base: All auto buyers n=596,18-24 191, 25-34 252, 35+ 153, loyalist 183, switchers 363, 1st time buyer 49

Age Type of Buyer

2014

2.6 Months

Avg.

Loyalist Switchers 1st time buyer

Page 16: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Search Central

Page 17: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

28%

11%5% 4% 4%

30%

14%8% 5% 6%

33%

19%

11% 9% 8%

Search brands Google is the search engine of choice

Percent Using Brand for Auto Research

Loyalists   35+  All  

95% 99% 99%

Source: Which search engines did you use? Base: Used search engines n= All 402, loyalists 109, 35+ year-olds 95

Page 18: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

61%

55%

50%

47%

44%

Awareness Search engines make buyers aware

Where Buyers See/Hear Brands

Source: Where, if anywhere, have you heard or seen information about automobiles in the last month? Base: Plan to purchase in the next 6 months n=608

Friends, family, colleagues

Search engines

Television

Social sites

Newspapers (print)

55%

Page 19: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

67%

46%

43%

42%

41%

Decision 2 in 3 use search engines to decide

Where Buyers Go to Decide

Source: Which sources did you use, and how did you typically access the online sources you used? Base: All auto buyers n=596

Search engines

Friends, family, colleagues

Dealer salespeople

Automobile brand sites

Flyers/brochures

67%

Page 20: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Search trends More buyers are using search engines for auto research

Use Search Engine as Primary or Secondary Source

Trending

+34pp

2009

33%

2014

67%

Source: Which sources did you use, and how did you typically access the online sources you used? Base: All auto buyers 2009 (n=500), 2014 (n=596)

Page 21: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Benefits of search

Source: How much do you agree or disagree with each of these statements about search engines? Base: Used search engines n=402

Introduced me to brands I had not heard of before

61% 68% 74%

Key Benefits of Search Engines*

Search introduces buyers to brands and helps them stay in touch

Helps me stay in touch with the auto brands I like

Is the first place I go to research

* Top 2 box on 5-point Agree scale

Page 22: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Video Impact

Page 23: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

YouTube action

What Buyers Do on YouTube

Source: On which of the following websites did you watch auto videos? Base: Watched videos n=471 Source: What kinds of activities did you do on YouTube? Base: Use YouTube n=344

Nearly 3 in 4 buyers go to YouTube for auto videos

73% use YouTube

74% Search for Brands/Models

Evaluate Ads

Read/Post Reviews

56%

45%

Page 24: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

YouTube growth More buyers turn to YouTube for auto videos

Websites for Auto Videos

Trending

+22pp

2009 2014

73% use YouTube 51%

use YouTube

Source: On which of the following websites did you watch auto videos? Base: Watched videos 2013 (n=237), 2014 (n=471)

Page 25: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Beyond auto Auto buyers watch other types of videos too

Comedy

35%

Music & musicians

33%

Movies & TV

33%

33%

Technology 28%

Animation

News

24% 24%

Gaming

23%

Cooking, food & drink

Source: What other kinds of online videos did you watch over the time you were shopping for an automobile? Base: All auto buyers n=596

23%

Sports & fitness

22%

Consumer electronics

other types of videos watched (avg.)

5.9

Page 26: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

91%

84%

81%

Video watching

79% watch auto videos

Luxury auto buyers

4 in 5 buyers watch auto videos

Source: Did you watch any auto videos online? Base: All auto buyers n= All 596, Luxury 98, Switchers 363, Open to influence 508

Switchers

Need to decide make/model

Video Watching by Sub-Group

Page 27: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Video watching Watching auto videos is becoming more common

Watch Auto Videos

Trending

+7pp

2013 2014

79% watch auto videos 72%

watch auto videos

Source: Did you watch any auto videos online? Base: All auto buyers 2013 (n=503), 2014 (n=596)

Page 28: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

51%

39%

36%

31%

30%

Brand showcase

Videos highlighting a particular brand or feature of an automobile

Online versions of TV commercials

Videos comparing two or more automobiles

Videos of individuals giving their review/opinion on an automobile

Email marketing videos (videos that you viewed within an email)

Source: What types of online auto videos did you watch? Base: Watch auto videos n=471

Types of Auto Videos Watched

Buyers watch many types of auto videos

97% Watch at least one type of video, not

including TV commercials

Page 29: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Value of video

65% Introduces me to auto brands

I have not heard of before

Videos introduce buyers to new brands and help them stay in touch

Source: How much do you agree or disagree with each of these statements about the online videos you watched? Base: Watch videos n=471

Key Benefits of Auto Videos*

74% 71% Helps me get answers to questions I

have about automobiles Helps me stay in touch with the auto brands I like

* Top 2 box on 5-point Agree scale

Page 30: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Brand Selection

Page 31: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Cross-Shopping

Page 32: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

36%

40%

40%

Consideration set Buyers consider 5.1 brands on average

Source: Which of these brands did you consider? Base: All auto buyers 2014 (n=596), 2009 (n=500)

Nissan

Chevrolet

Volkswagen

Avg. Brands Considered

5.1 Top Brands Considered

Trending

+.3 since 2009

Ford 36% Chrysler 28%

Page 33: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

34%

Switchers Switchers consider 5.3 brands on average

Source: Which of these brands did you consider? Base: Switchers n=363

Avg. Brands Considered

5.3 38%

36%

33%

30%

Ford

Volkswagen

Chevrolet

Chrysler

Top Brands Considered

Nissan

Page 34: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

39%

37%

36%

35%

28%

Younger set 18 to 24 year-olds consider 5.5 brands on average

Source: Which of these brands did you consider? Base: 18-to-24-year-olds n=191

Avg. Brands Considered

5.5

Nissan

Chevrolet

Volkswagen

Audi

Top Brands Considered

Ford

Page 35: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Final choice Many change their mind during research

Source: Did you have a favorite brand in mind to buy when you started? Base: Had brand in mind at start n= 520 / Did you purchase a brand that was not your initial favorite? Base: Had favorite brand at start n= All 368, 25-34 years-old 176, open to influence 286, watch auto videos 305

46% Watch auto

videos

Have a favorite brand at start

71% Purchase a brand not favorite at start

43%

51% Open to influence

52% 25-34

year-olds

25-34

Page 36: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Brand discovery Many purchase a brand they discover

Source: Was the brand you ultimately purchased one that you knew of or discovered during research? Base: Had brand in mind at start n= All 520, 1st time buyer 38, 18-24 152, luxury 90

Purchase a brand they discover during research

1st time buyer

39%

46% luxury

61% 48% 18-24

year-olds

Page 37: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Brand discovery More buyers are purchasing brands they discover

Purchase a Brand Discovered During Research

Trending

+23pp

2009

16%

2014

39%

Source: Was the brand you ultimately purchased one that you knew of or discovered during research? Base: Had brand in mind at start 2009 (n=451), 2014 (n=520)

Page 38: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

37%

33%

33%

30%

27%

What buyers care about Buyers look for fuel efficiency, exterior style and an auto that fits their needs

Source: Select up to 6 reasons you purchased this automobile Base: All auto buyers n=596; Luxury n=98, Volume n=498

Fuel efficiency

Fits my needs

Exterior style

High-quality

Interior style

Top Reasons for Choosing Luxury vs. Volume

(top 3 per subgroup)

•  Exterior Style •  Powerful engine •  Good warranty

•  Fuel efficient •  Fits my needs •  Exterior style

Page 39: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Market Insights

Page 40: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

40% 40%36% 36%

28% 26% 23% 23%19% 19%

16% 15% 14% 13% 13% 12% 12% 11%11% 12% 11% 9%5% 5%

2%5% 4% 3% 2% 4%

2% 3% 0% 1% 3% 1%

Brand equity

Source: Which of these automobile brands did you consider, and which did you purchase? Base: All auto buyers n=596

28% 29% 31% 26% 18% 19% 8% 23% 21% 15% 15% 29% 17% 22% 3% 9% 26% 6%

Consider vs. Purchase Brand

Volkswagen has the highest purchase-to-consider ratio

Ratio

Nissan Chevrolet Volkswagen Ford Chrysler Honda Dodge Toyota Audi Mazda BMW Cadillac Jeep Renault Fiat Acura Mitsubishi Bentley

Consider

Purchase

Page 41: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Brand migration Nissan is attracting more buyers from VW and Chevrolet than it is losing

Source: Which brand did you purchase previously, and which brand did you purchase recently? Base: Auto buyers n= Chevrolet 70, Nissan 68, Volkswagen 68

Migration To/From Top Brands

Chevrolet

Volkswagen Nissan

8% 16% 12% 7%

6% 9%

Page 42: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

59% 58% 54%

43% 49% 40%

17% 10%4%

Brand health Volkswagen shows a net-loss of buyers, while Nissan shows a slight net-gain

Net gain/loss 0 +1 -11

Chevrolet Nissan Volkswagen

Switchers (new to brand)

First-time buyers

Defectors

Source: Which brand did you purchase previously, and which did you purchase recently? Base: Inflow n= Chevrolet 70, Nissan 68, Volkswagen 68 / Outflow n= Chevrolet 70, Nissan 66, Volkswagen 84

Page 43: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Dealer Support

Page 44: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Buyer Outreach

Page 45: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Why contact Buyers typically have questions about price/financing

Source: Why did you try to contact a dealer? Base: Contacted a dealer n=546

43% Had questions about price/

financing

37% 35% 34%

Reasons for Contacting Dealers

To book a test drive Had questions about models/features

To get all of my questions answered first (before visiting)

Page 46: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Contacting dealers 4 in 5 buyers attempt to contact dealers online

Source: How many times did you try to contact a dealer through each method? Base: Contacted a dealer n=546

81%

Try to Contact Dealers Online

62% 43% 40% 32% Email Social media Webform Livechat/

Video chat

Page 47: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Source: How many times did you try to contact a dealer through each method? Base: Contacted a dealer 2013 (n=468), 2014 (n=546)

Online contact It is becoming more common to contact dealers online

Try to Contact Dealers Online

Trending

+13pp 81% 2013 2014

68%

Page 48: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

72% 69% 67%54%

46%

Poor response

Percent Who Receive Slow/Incomplete Response

Source: Through which method did you receive a slow/incomplete response? Base: Contacted dealer via channel n= Social media 234, Webform 220, Live chat/video chat 175, Email 340, Phone 422

Most responses to online outreach are unsatisfactory

Social media Email Webform Phone Livechat/Video chat

Page 49: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Higher expectations

Percent Who Receive Slow/Incomplete Response from Email

Source: Through which method did you receive a slow/incomplete response? Base: Received at least one slow/incomplete response 2013 (n=253), 2014 (n=340)

More buyers complain of receiving poor responses to email outreach Trending

+12pp

2013 2014

67% 55%

Page 50: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

35%

27%

25%

24%

23%

What went wrong

Source: What made the response slow/incomplete? Base: Received at least one slow/incomplete response n=389

Problems with Responses

Had to wait a long time to get a response

Did not answer all my questions

Website crashed/page would not load

Received a generic/canned response

Website was too hard/confusing to use

Buyers complain of slow responses

35%

Page 51: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

23%

61%

16%

Impact of poor responses Some switch dealers due to poor responses – some even switch brands

evaluate other dealers

75%

Source: What impact did a slow/incomplete response have on your choice of dealer? Base: Received at least one slow and/or incomplete response n=389 Source: Did you switch to a new brand? Base: Switched to a new dealer n=89

switch to a new dealer

No impact

switch brands

Page 52: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Buyer Visits

Page 53: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

First dealer visit

Mid-way Start of search

Time of purchase

Younger buyers visit dealers later in the process

When Buyers First Visit Dealership

Source: How far into the purchase process did you first visit a dealer? Base: All auto buyers n= All 596, 18-24 191, 25-34 252, 35+ 153

32% 39% 29%

33% 18-24

30% 25-34

22% 35+

Age Users

6%9% 8%

9%

7%

22%

11%

6%8%

7%

7%

Page 54: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

32%

57%

11%

Research prior to visit 1 in 3 buyers do extensive research prior to visiting

Source: Which of these statements best describes how you typically felt when you visited dealerships? Base: All auto buyers n=596

A lot of research. I was close to a decision and wanted to confirm

my choice.

Some research. I wanted to see the brands/models and talk to a salesperson as a next step.

Very little research. Visiting dealerships helped me understand my

options.

Page 55: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Research prior to visit Younger buyers are more likely visit the dealer after they research

87% 88%

18 to 24 25 to 34 35+

Visit Dealership After Some/Lots of Research by Age

93%

Source: Which of these statements best describes how you typically felt when you visited dealerships? Base: All auto buyers n= 18-24 191, 25-34 252, 35+ 153

Page 56: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Test drives 1 in 5 do not take any test drives

Source: How many test drives did you take before buying your automobile? Base: All auto buyers n=596

19% No test drives

35% 1 test drive

46% 2+ test drives

1.8 Drives (avg.)

Page 57: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

76%

51%

36%

Booking online Over 1 in 3 buyers book test drives online

How Book Test Drives

Source: How did you book your test drives? Base: Took any test drives n= 483

In-person Phone Online

Page 58: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Booking test drives More buyers are booking test drives online Trending

Booked Test Drives Online

+15pp

2013 2014

21% 36%

Source: How did you book your test drives? Base: Took any test drives 2013 (n=360), 2014 (n=483)

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Make dealer visits count Buyers want an informative and comfortable dealership experience

How to Increase Impact of Dealer Visits:*

Source: How much did dealership visits impact your final decision, and how important were each of these factors? Base: All auto buyers n=596

Variety of models available to see Quick/not a lot of time

Model(s) considering in stock

Time alone to think/explore

Info accessible via wifi/computers

Helpful/knowledgeable salespeople

Impact on Purchase Decision

Importance

High

Low

Low High * Top 2 box on 7-point Importance scale

Inviting/comfortable showrooms

Page 60: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

41%

57% 62%

48%

72%77%

Impact of visits and test drives Heavy online users value dealer visits more; older buyers value test drives more

Source: How much did dealership visits impact your final decision? Base: All auto buyers n=596 How much did test drives impact your final decision? Base: Took any test drives n=483

Dealer Visits* Test Drives*

Light Online Med Online

Heavy Online

62% 77%

18-24 25-34 35+

* Top 2 box on 7-point Impact scale

Page 61: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Buying Online

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58% 60%63%

46%

Buying online Nearly 3 in 5 buyers would consider buying online

Would Consider Buying Online*

All 18-24 25-34 35+

Source: How likely would you be to purchase an automobile online? Base: All auto buyers n= All 596, 18-24-year-olds 191, 25-34-year-olds 252, 35+ 153 Source: Why would you be likely to buy an automobile online? Base: Very/somewhat likely n=344

Reasons To Consider Buying Online

I research online so I should be able to purchase online Easier/more

convenient

No need to take test drives

* Top 2 box on 4-point Likely scale

Page 63: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

Post-Purchase

Page 64: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

53% 56%

26% 25% 25%

65%55%

34% 32% 28%

Phone vs. email Buyers prefer to be contacted by email

Source: How, if at all, has the dealer/manufacturer contacted you since you purchased your automobile, and how would you prefer to be contacted? Base: All auto buyers n=596

Phone calls

Brochures/ flyers in mail Text messages Email Social site

How Dealers Contact Buyers How Buyers Prefer to be Contacted

65% 56%

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Appendix

Page 66: Global Auto Shopper Study...17% 17% 15% 15% On-the-spot research Nearly 4 in 5 smartphone owners research at dealerships on phones Auto Research at Dealerships Source: Which of these

74% 17% 9%

18-­‐34 35-­‐49 50+

Profile of new car buyers Buyers are 31 years-old on average and well-educated

Source: How old are you? What is your gender? What was the 2013 total income of your household before taxes and other deductions? What is the highest level of education you have completed or the highest degree you have received? How much did your automobile cost? Base: All auto buyers n=596

Avg. Monthly Income*

$32,289 62%

Avg. age

31.0 63% Male

* See notes section for additional information

College Degree or Higher Avg. Price Paid for New Auto*

$221,123

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Length of purchase process Buyers take over two months to decide

Source: How much time passed from when you first started researching automobiles until purchase? Base: All auto buyers n=596

1 Year or More

Within the Same Month

6 Months to Less than 1 Year

3 Months to Less than 6 Months

1 Month to Less than 3 Months

44% 36%

10%

5%

4%

Purchase

2.6 Avg. Time to

Decide (Months)

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56%

53%

53%

49%

46%

43%

35%

32%

30%

29%

Auto research activities Multiple activities are involved in online research

Source: Which of these activities did you do while researching automobiles? Base: All auto buyers n=596

Top Research Activities

Learned about brands/models

Obtained a quote

Read reviews of brands/models

Looked for rebates/offers

Looked up pricing info

Compared prices from various dealers

Applied for financing

Looked up address, contact info or business hours of a dealer

Compared features

Checked stock availability

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63%

50%

38%

37%

36%

32%

27%

22%

22%

18%

Activities on auto brand sites Many buyers use auto brand sites to compare features

Source: Which of these activities did you do at least once on an auto brand’s website? Base: Used brand websites n=250

Top Research Activities on Auto Brand Sites

Learn about brands/models

Look up pricing info

Read reviews of brands/models

Look for rebates/offers

Compare prices from various dealers

Obtain a quote

Compare features

Apply for financing

Look up address, contact info or business hours of a dealer

Use a tool to configure options

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59%

55%

36%

23%

15%

10%

9%

8%

7%

Social sites Facebook and YouTube are the top social sites used by auto buyers

Source: Which of these sites did you use over the time you were shopping for an automobile? Base: All auto buyers n=596

Top Social Sites Among Auto Buyers

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49%

38%

37%

30%

30%

29%

25%

23%

20%

20%

Social research activities Buyers turn to social sites to hear from current owners

Auto Activities on Social Sites

Source: How did you use or contribute social content about automobiles while you were shopping for an automobile? Base: Use social sites for auto research n=525

Learn about an automobile

Read comments/recommendations posted by other people

“Follow” an auto brand or dealer

Watch videos of automobiles posted by others

Look at pictures of automobiles posted by others

Endorse an auto brand or dealer (e.g., Like, +1, Pin)

Post a comment on the page of an auto brand or dealer

Post a review of an auto brand or dealer

Share a link about an auto brand or dealer

Share my opinions about my shopping

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71%

68%

68%

67%

66%

63%

55%

Benefits of social sites Social sites help build confidence and get answers

Top Benefits of Social Sites

Helps me stay in touch with the auto brands I like

Makes it easy to find information about automobiles

Makes me feel more confident about my decisions

Makes it more fun to shop for automobiles

Helps me get answers to questions I have about automobiles

Provides information I can’t get from other kinds of sites

Introduces me to automobile brands I have not heard of before

Source: How much do you agree with each of these statements about using social sites while shopping for automobiles? Base: Used social sites n=483

* Top 2 Box scores on 5-point scale

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11%

20%

23%

18%

13%

9%

6%

Dealership Visits Nearly 1 in 3 buyers only make one or two visits to the dealership

Number of Dealership Visits

1 visit

2

3

4

5

6

7 or more

Source: How many visits to dealerships did you make in total? Base: All auto buyers n=596

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47%

24%

22%

5%

2%

0%

Type of auto purchased Half of buyers purchase medium-sized autos

Type of Auto Purchased

Medium-sized car

Large car

Small car

Pick-up truck

SUV (sports utility vehicle)

MPV (multiple passenger van)

Source: What type of automobile did you purchase? Base: All auto buyers n=596