Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 26th December 2014, 17:29   #1
Distinguished - BHPian
 
RavenAvi's Avatar
 
Join Date: Jun 2011
Location: Flying Around
Posts: 5,357
Thanked: 28,177 Times
Default Deloitte: Word-of-mouth, Car reviews are biggest influencers for buyers

Deloitte India, a client-service management company, recently conducted a survey on prospective new car buyers, their purchase-related behaviour, information collecting, interactions all around, to recommending their purchases to others, and released their report on the same titled "Driving Through The Consumer's Mind: Steps In The Buying Process".


Deloitte: Word-of-mouth, Car reviews are biggest influencers for buyers-untitled.jpg


Some key points:

- Survey conducted between 1,813 respondents: 59% in the 19-36 age group, 22% in the 37-48 age group, and 16% in the 49-67 age group.
- Word-of-mouth & car reviews are biggest influences.
- Dealerships & social media are least important influences.
- Test drives regarded as highly important during research.
- Majority spend not more than 45 minutes at dealerships (including TDs).
- Price-vis-a-vis-value & features on offer are key research parameters.
- Family needs is most important for a first-time car buyer.
- Technology & need for more comfort most important for repeat buyers.
- 50% of car buyers spend more than 10 hours on online research + reviews and comparisons on shortlisted options.
- 70% of car buyers take a Test Drive when they visit dealerships.
- 50% of respondents who have shortlisted 4 or more brands, recommend at least 1 brand to other prospective buyers, which is different from their choice.

Quote:
The Indian car buyer is quite rational when looking to buy a car, was established in the previous report. This buyer looks for value and features. Some of the key considerations for the OEMs are:
  • As the young buyers tend to spend less time, it is important to provide them information through the sources that they trust to get into their consideration set. It is apparent there is a clear hierarchy of information sources in terms of credibility and the manufacturers may want to direct their promotional budgets suitably. Further, it is also clear that the dominant social media presence alone is not sufficient to win customers.
  • It is apparent that the number of products in the consideration set determines the buying process of the customer. It may be important for the manufacturer to think of different ways to stay in consideration. Therefore, it may be worthwhile to understand what the buyer is considering and how much time has already been spent on the buying process to determine the probability of closing the sale.
  • Focus on reference from existing customers. Given the influence they can have over their friends/relatives, getting them to be the brand ambassadors would be of critical importance.
  • Lost customers may be recommending the brand. Therefore, continued engagement with a lost customer even for a short time is likely to be profitable.
  • It is clear the dealership represents limited influence in the buying process and the customers desire to spend limited time there. Therefore, the way to endear to the customer is to be highly efficient about the processes. Further, it is important to be on the final shortlist by the time the buyer is ready to test-drive.
SOURCE - Deloitte India (via IAB)
Official Report (Download Link) - Driving Through The Consumer's Mind

Last edited by RavenAvi : 26th December 2014 at 17:34.
RavenAvi is offline   (8) Thanks Reply With Quote
Old 27th December 2014, 00:01   #2
Distinguished - BHPian
 
libranof1987's Avatar
 
Join Date: Sep 2010
Location: All over!
Posts: 3,718
Thanked: 2,795 Times
Default Re: Word-of-mouth, Car reviews are biggest influences for new car purchases: Deloitte Indi

So true!

It's become a habit to check online reviews and ask those who own a particular product before actually buying it. Rarely has it happened that the reviews for something have differed drastically from what I thought when I checked it out myself.

Social media has clearly taken over the way we do a lot of things. Now, there's a good amount of competition to the traditional means of advertising.

Must be giving a lot of product managers nightmares
libranof1987 is online now   (2) Thanks Reply With Quote
Old 27th December 2014, 05:04   #3
BHPian
 
Join Date: Aug 2007
Location: Mumbai/BLR/USA
Posts: 928
Thanked: 190 Times
Default Re: Word-of-mouth, Car reviews are biggest influences for new car purchases: Deloitte Indi

Interesting findings! Quite true that most of the urban buyers will check out reviews before shortlisting a product therefore manufacturers must focus on good product and service. Negative service reviews impact sales in the long run and consequently spoil the image of a brand example Fiat, Skoda etc.

Dealerships must step-up and focus on good customer experience rather than sales focus.

Quite surprised to see that the survey did not call safety as an important aspect, I am assuming it’s covered under New Technology.

Last edited by tj123 : 27th December 2014 at 05:12. Reason: typo
tj123 is offline   (2) Thanks Reply With Quote
Old 27th December 2014, 08:06   #4
Distinguished - BHPian
 
deetjohn's Avatar
 
Join Date: Sep 2006
Location: Kochi
Posts: 4,041
Thanked: 7,352 Times
Default Re: Word-of-mouth, Car reviews are biggest influences for new car purchases: Deloitte Indi

Quote:
Originally Posted by RavenAvi View Post
- Dealerships & social media are least important influences.
I don't agree with this, the experience at the dealer can make or break a deal. More so with the latter.

Another factors of influence are:
  1. Which car is found most in the neighborhood?
  2. Which car has the max waiting period? And the propensity to buy is directly proportional length of the waiting period.
  3. Is it available in white?
  4. Discounts

Think the sample size is little on the lower side.
deetjohn is offline   Reply With Quote
Old 27th December 2014, 11:13   #5
BHPian
 
Join Date: Sep 2013
Location: Bangalore
Posts: 400
Thanked: 572 Times
Default Re: Word-of-mouth, Car reviews are biggest influences for new car purchases: Deloitte Indi

Quote:
Originally Posted by deetjohn View Post
I don't agree with this, the experience at the dealer can make or break a deal. More so with the latter.

Another factors of influence are:
  1. Which car is found most in the neighborhood?
  2. Which car has the max waiting period? And the propensity to buy is directly proportional length of the waiting period.
  3. Is it available in white?
  4. Discounts
Think the sample size is little on the lower side.
I think that what they mean by dealerships is the sales force product knowledge and communication. Most people know that anything that sales people say is to be taken with a big pinch of salt. As for social media, I don't know anyone who really trusts Facebook with important information.
Motard_Blr is offline   (2) Thanks Reply With Quote
Old 27th December 2014, 12:44   #6
Distinguished - BHPian
 
Join Date: Oct 2012
Location: Delhi
Posts: 3,056
Thanked: 6,165 Times
Default

Quote:
Originally Posted by deetjohn View Post
I don't agree with this, the experience at the dealer can make or break a deal.

Based on what? This is a professional Organization who does a survey. How much data do you have and how much better is your data?

Jeroen
Jeroen is online now   Reply With Quote
Old 27th December 2014, 14:38   #7
Team-BHP Support
 
Rehaan's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 22,364
Thanked: 22,566 Times
Default Re: Word-of-mouth, Car reviews are biggest influences for new car purchases: Deloitte Indi

Here's a related thread i had put up earlier:

LINK (Google's Report on the Auto Industry : Search Trends & Buyer Behaviour (2012))

Quote:




LINK (Google's Report on the Auto Industry : Search Trends & Buyer Behaviour (2012))

cya
R
Rehaan is offline   (5) Thanks Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Fauji's Drivologues: Charming Chettinad - Magnificent Mansions & Mouth Watering Menus Fauji Travelogues 53 23rd August 2016 11:05
Mitsubishi Heart-in-Mouth 4x4 event in Delhi, on the 28th of August 2011 GTO 4x4 Excursions 5 30th August 2011 10:47
Pajero Heart-in-Mouth Xperiance, Offroad Event, Bangalore spittingfire 4x4 Excursions 43 30th December 2007 12:13
3 word word story! vipulG Shifting gears 175 9th March 2005 17:11


All times are GMT +5.5. The time now is 15:50.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks