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".
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.
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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.
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