December 2014 Top - b2b.autotrader.com · collision avoidance) ... either through the Internet or...

Top

TRENDS OF 2014

December 2014

10

Top 10 Trends of 2014

2

1. In-vehicle technology can tip the scale on vehicle consideration

2. Connectivity can be a vehicle feature that differentiates

3. Consumers are not ready for fully-autonomous vehicles

4. Recalls do not always negatively impact brand opinion and consideration

5. Shopper interest in electric and hybrid vehicles continues to grow

6. Familiarity and consideration of CPO is at an all-time high

7. Millennials want New – but settle on CPO for now

8. Mobile rules Millennials’ car shopping

9. Millennials are anti-social in car shopping

10. New-vehicle buyers know what they want by the initial dealer visit

In-Vehicle Technology Can Tip The

Scale On Vehicle Consideration

3

1

4 Source: 2014 AutoTrader.com In-Vehicle Technology Shopper Influence Study

WOULD SWITCH

BRANDS… 56%

48%

Technology can make or break a sale

if the one they were

considering didn’t offer

the technology they want

WILL WALK

AWAY… from a car they like if

the technology is

difficult to use


DON’T HAVE

ENOUGH TIME… 60%

48%

The test drive is an opportunity to showcase

during the test drive to

fully test out a car’s

technology features

SHOULD TAKE

LESS THAN 15

MINUTES… to learn how to use the

technology in their car

6

1 2014 AutoTrader.com In-Vehicle Technology Shopper Influence Study

2 2013 AutoTrader.com Millennials Research

PRIORITIZE…

16%

72%

Safety is more important than infotainment

infotainment features

over safety features1

OF YOUNG

MILLENNIALS… say infotainment is a

“must-have”2

Connectivity Can Be A Vehicle

Feature That Differentiates

7

2

8

1 2013 AutoTrader.com User Profile

2 AutoTrader.com Homepage QuickPoll

Not a “must-have” but a “want-to-have”

OF AUTOTRADER.COM

VISITORS “MUST HAVE”

4%

Internet in their next vehicle1

BUT…

“WANT IT”

49%

in their next vehicle2

Consumers Are Not Ready For

Fully-Autonomous Vehicles

9

3


DANGEROUS

IDEA 65%

61%

…but are ready to give up some control

say self-driving

cars are a…

AUTONOMOUS

FEATURES

are likely to consider a

vehicle with…

(automatic braking &

collision avoidance)

Recalls Do Not Always Negatively Impact

Brand Opinion And Consideration

11

4

12

1 AutoTrader.com Homepage QuickPoll

2 AutoTrader.com Site Survey

Recalls do impact vehicle consideration

OF AUTOTRADER.COM

VISITORS ARE

LESS CONFIDENT

50%

AND…

RECALLS IMPACTED

74%

brands considered2

in the automotive industry’s

ability to produce safe vehicles1

13 Source: AutoTrader.com Site Survey

54%

Voluntary recalls can positively impact a brand

more favorably if

the recall was

done voluntarily

would view a brand…

HOWEVER…

Shopper Interest In Electric And Hybrid

Vehicles Continues To Grow

14

5

Shopper interest in hybrid and electric grows year-over-year

15

Hybrid Electric

-6% +23% +59%

Diesel

…with the most listings for both electric and hybrid vehicles on AutoTrader.com.

Los Angeles is the leading alternative fuel market

15 Source: AutoTrader.com Site Data

16

Source: AutoTrader.com Alternative Fuel Survey

Base: Aware of Electric (n=174)

say an electric vehicle

should travel 150 miles

per charge.

59%

Distance is the key for adoption of electric

16

Consumers understand the benefits of alternative fuel vehicles

17

Source: AutoTrader.com Alternative Fuel Survey

Better Fuel Economy Cost of Savings on Gas Cleaner Emissions Better for the Environment Federal Tax Credit

70% 56% 37% 28% 24%

Familiarity And Consideration Of CPO

Is At An All-Time High

18

6

Familiarity with CPO is growing

New Shoppers

19

75% in 2014

63% in 2013

Used Shoppers

45% in 2014

40% in 2013

Source: 2014 AutoTrader.com CPO Study

A1. On a scale from 5 to 1, where 5 is Very Familiar and 1 is Not At All Familiar, how familiar are you with the concept of Certified Pre-Owned (CPO) vehicles?

19

20


E1. How has the current economy situation impacted your vehicle purchase decision?

44% in 2014

22% in 2013

Used Shoppers

30% in 2014

18% in 2013

New Shoppers CPO Shoppers

48% in 2014

29% in 2013


E1. How has the current economy situation impacted your vehicle purchase decision?

Considering CPO for the first time

20

Millennials Want New –

But Settle On CPO For Now

21

7


Q10. What are the benefits you have experienced with owning a CPO vehicle? [OPEN END]

Millennials cite price as a benefit of CPO Millennials are more likely to say price/value is a benefit of CPO than older owners.

22

33% Good Price/Value

Comes With Warranty/Guarantee 23%

% TOP MENTIONS

n=620

AGE 18 – 34

25%

21%

n=575

AGE 35+

22

Millennials are more likely to find disadvantages to CPO

23


Q12.What are some of the disadvantages to owning a CPO vehicle? [OPEN END]

% TOP MENTIONS

24% Already Has Miles On It /It's Used

Vehicle History /Might Have Problems 18%

n=620

AGE 18 – 34

n=575

AGE 35+

None 26%

14%

10%

48%

Millennials are more likely to buy New next

24


Q29. If you were to purchase another [Q3 Make], how likely are you to purchase a NEW [Q3 Make]?

CPO Owners Likely to Buy New Vehicle From Same Brand

54%

43%

AGE 18 – 34 n=620

AGE 35+ n=575

Mobile Rules

Millennials’ Car Shopping

25

8

Mobile use grows; PC use declines

26

Significantly higher / lower than previous year

28% 28%

88%

19% 19%

91%

Source: 2014 IHS/AutoTrader.com Automotive Buyer Influence Study Q99. Prior to purchasing your vehicle, which of the following devices did you use to access automotive information, either through the Internet or by using a mobile device?

Total AIUs, 2013

Total AIUs, 2014

Changes even sharper for Millennials

27

50%

32%

78%

28% 28%

88%

19% 19%

91%

Total AIUs, 2013

Total AIUs, 2014

Millennial AIUs, 2014

Significantly higher / lower than previous year


Significant increase in multi-device

28

Total AIUs, 2014

(23% in 2013)

32% 44%

Millennial AIUs, 2014

(36% in 2013)


Millennials drive multi-device adoption rates

2014

2020

32%

80%

44%

Total AIUs

Millennial AIUs

29


Not having a mobile site hurts brands

(Total AIUs = 29%)

negative impact on brand. MILLENNIALS

30 Source: 2014 IHS/AutoTrader.com Automotive Buyer Influence Study Q300. Summary of "would feel more negatively about the website/brand" if they did or did not offer…Did not offer a Mobile website

A poor mobile experience is even worse

negative impact on brand! (Total AIUs = 52%)

(Total AIUs = 29%)

negative impact on brand. MILLENNIALS

MILLENNIALS

31 Source: 2014 IHS/AutoTrader.com Automotive Buyer Influence Study Q300. Summary of "would feel more negatively about the website/brand" if they did or did not offer…Mobile website was poor quality

Millennials Are Anti-Social

In Car Shopping

32

9

Usage of social media is low

33

TOTAL

MILLENNIALS

1%

Source: 2014 IHS/AutoTrader.com Automotive Buyer Influence Study Q6a: You mentioned using the Internet while shopping for your vehicle. Please tell me the names of the specific website that you used?

Millennials apathetic about brands using social media

(Total AIUs = 83%)

no impact on brand perception

34

Source: 2014 IHS/AutoTrader.com Automotive Buyer Influence Study Q300. Please indicate how your feelings about an automobile website or brand would change if they did or did not have the following - Utilized social networking (e.g., Facebook, Twitter, Google+)

New-Vehicle Buyers Know What They

Want By The Initial Dealer Visit

35

10

More Difficult Decisions

36 Source: Mintel/SEC filings/ Automotive News

325+ individual

models in U.S.

Among the top 9 automakers:

2-out-of-3 new-vehicle buyers start shopping without an exact vehicle in mind

37

Base: New-vehicle Buyers; n = 736 (Web Survey Only)

Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com

Knew Exact

Knew Make

Knew

Something

Knew Nothing

2014

You knew the exact vehicle that you wanted 36%

You knew the body style of the vehicle that you

wanted, but not the make or model 25%

You didn't know the specific vehicle you wanted,

but you had a certain class of vehicle in mind 14%

You didn't know what you wanted, but the vehicle

had to have certain features 9%

You knew the vehicle make that you wanted 12%

You didn't know what vehicle you wanted when

you started looking 3%

Internet is 3.5x more helpful

38


Base: New-vehicle Buyers (Internet = 842; TV = 183; Newspaper = 132)

VERY HELPFUL (Top 2 Boxes)

67% INTERNET

12%

TV

19%

NEWSPAPER

51%

12%

11%

14%

3%

2%

1%

1%

1%

1%

0%

Internet

Referral from friend/family

Drove by/Walked-in

Prior experience with this dealership

Newspaper in print

Television

Direct Mail

Online news site

Outdoor ads

Radio

Magazine

Internet is the most effective source at leading new-vehicle buyers to purchase

39

Base: Online New-Vehicle Buyers (n = 842)


Opportunity for influence most likely happens in the process prior to initial dealership visits

40


Base: New-vehicle Buyers (Buyers who purchased from a dealership n = 1008)

76% purchased model had in mind prior to initial dealership visit

41


Base: New-vehicle Buyers (Buyers who purchased from a dealership and purchased different model than originally planned n = 255)

24% Switched

Top Reasons:

Car specific (i.e. features, etc.) 25%

18% Salesperson showed me a different car

15% Special incentive offered for a different vehicle

14% Saw a car I didn’t originally know about

Opportunity for influence most likely happens in the process prior to initial dealership visits

Top

TRENDS OF 2014

10

December 2014 Top - b2b.autotrader.com · collision avoidance) ... either through the Internet or...

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