global auto shopper study...17% 17% 15% 15% on-the-spot research nearly 4 in 5 smartphone owners...
TRANSCRIPT
Global Auto Shopper Study
Mexico
June 2014
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
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
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
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.)
Executive Summary
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
Buyer Power
Driving the Decision
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%
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
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
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
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%
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
Search Central
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
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%
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%
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)
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
Video Impact
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%
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)
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
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
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)
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
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
Brand Selection
Cross-Shopping
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%
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
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
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
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
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)
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
Market Insights
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
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%
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
Dealer Support
Buyer Outreach
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)
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
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%
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
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%
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%
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
Buyer Visits
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%
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.
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
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.)
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
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)
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
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
Buying Online
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
Post-Purchase
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%
Appendix
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
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)
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
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
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
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
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
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
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