New Car Buyers Behaviour

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    Consumer New Car Buying

    Programme Framework

    The Profitable

    3DayCar

    The Profitable

    3DayCarSystem

    Marketing Technology

    Environment Organisation

    Finance

    BTO

    System

    Measures&Roles

    KeyIssues

    New

    Technologies

    Outline

    ofCosts &

    Profits

    Customer

    Needs &

    Selling

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    What the Customer Wants

    New Car Buyer Behaviour-Quantifying Key Stages & Activities in

    the Consumer Buying Process

    Year End Conference, December 2000

    Simon Elias

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    Consumer New Car Buying

    Contents

    Research context & aims

    Method & response

    Results

    Conclusions

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    Consumer New Car Buying

    Research Context

    Managing demand

    Understanding influences on timing ofpurchase decisions

    Validate current positions on consumerbehaviour complement qualitative research

    data triangulation

    First major independent

    quantitative survey in this area

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    Consumer New Car Buying

    Methodology

    Self-completion questionnaire 13 questions

    prize draw incentive

    c 3000 distributed to recent newcar buyers

    12 months to October 2000

    Selected ARM programmedealers & 3DayCar sponsors

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    Consumer New Car Buying

    Research Topics

    Lead time expectations & experience

    Information sources Alternative specifications / service level

    inducements received for accepting alternatives

    Time of order placement, collection Time & lags between the key stages in the

    buying process decision to order, order to collection

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    Consumer New Car Buying

    Response

    Excellent response rate

    1,030 replies received & analysed

    Representative of UK new cars buyers

    sex, age, car ownership, region

    Good statistical base & validity

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    Consumer New Car Buying

    Response: Brands CoveredVolume

    CitroenFiat

    Ford

    MazdaPeugeot

    Toyota

    RoverVauxhall

    VW

    Specialist:

    Alfa Romeo

    Audi

    BMWJaguar

    Land Rover

    Lexus

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    Consumer New Car Buying

    Respondent Region Profile

    0

    5

    10

    15

    20

    25

    30

    35

    40

    L on /S /S E W ales /S

    W e s t

    Mids / E

    Anglia

    N E n glan d S c otlan d

    %

    S ample U K total drivers *

    * Lex/RAC Report on Motoring 1999Base: all respondents

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    Age & Buying Information

    Sources

    Analysis

    20 40 60 80 100 120 140 160 180

    Car magazine

    TV programme

    Friend, relative

    Brochure

    Newspaper ads

    WWW

    Dealer sales staff

    Which?

    Car shows

    TV ads

    Index: 100 = Norm

    55+

    35-55

    25-35

    u25

    Norm

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    Analysis Sex& Buying Information

    Sources

    0 20 40 60 80 100 120

    Car magazine

    T V programme

    Friend, relative

    Brochure

    News paper ads

    W W W

    Dealer s ales s taff

    Which?

    C ar s h o ws

    TV ads

    Index: 100 = Norm

    malefemale

    Norm

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    Consumer New Car Buying

    Length of Time from

    Initial Decision to Buy to Placing Order

    44%

    11%

    20%

    25%

    < 2 weeks

    2 weeks - 1 mth

    1 mth - 3 mths

    >3 months

    Base: all respondents

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    Volume Brand& Length of Time from

    Decision to Order

    Base: all respondents

    Analysis

    0 20 40 60 80 100 120 140 160 180

    Citroen

    Fiat

    Ford

    Mazda

    Peugeot

    Rover

    Toyota

    Vauxhall

    VW

    In dex: 100 = N orm

    more than 3 months

    1 month to 3 months

    2 weeks to 1 month

    les s than 2 weeks

    Norm

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    Specialist Brand& Length of Time from

    Decision to Order

    Base: all respondents

    Analysis

    0 20 40 60 80 100 120 140 160 180

    Alfa Romeo

    Audi

    B MW

    J ag u ar

    Land Rover

    Lexus

    Index: 100 = Norm

    more than 3 months

    1 month to 3 months

    2 weeks to 1 month

    les s than 2 weeks

    Norm

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    Consumer New Car Buying

    Length of Time from

    Placing Order to Delivery of Car

    3%

    19%

    40%

    38%

    less than 2 weeks

    2 weeks to 1 month

    1 month to 3 months

    more than 3 months

    Base: all respondents

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    Region & Length of Time from

    Placing Order to Delivery of Car

    0 20 40 60 80 100 120 140 160 180 200

    London/S/SE

    Wales, SWest

    Midlands

    North

    Scotland

    Index: 100=Norm

    more than 3 months

    1 month to 3 months

    2 weeks to 1 month

    less than 2 weeks

    Norm

    Analysis

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    Volume Brand& Length of Time

    from OTD

    0 20 40 60 80 100 120 140 160 180 200

    Citroen

    Fiat

    Ford

    Mazda

    Peugeot

    Rover

    Toyota

    Vauxhall

    VW

    Index: 100 = Norm

    more than 3 months

    1 month to 3 months

    2 weeks to 1 month

    less than 2 weeks

    Norm

    Analysis

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    Specialist Brand& Length of

    Time from OTD

    0 20 40 60 80 100 120 140 160 180 200 220 240

    Alfa Romeo

    Audi

    BMW

    Jaguar

    Land Rover

    Lexus

    Index: 100 = Norm

    more than 3 months

    1 month to 3 months

    2 weeks to 1 month

    less than 2 weeks

    Norm

    Analysis

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    Consumer New Car Buying

    Importance of Waiting Time to

    Final Car Choice

    27%

    28%

    7%

    38%

    not at allimportant

    not very

    important

    quiteimportant

    veryimportant

    Base: all respondents

    65%

    very or

    quite

    important

    65%

    very or

    quite

    important

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    Age & Importance of Waiting

    Time to Final Car Choice

    Analysis

    0 50 100 150

    not at all important

    not very important

    quite important

    very important

    Index: 100 = Norm

    55+

    36-55

    25-35

    u25

    Norm

    Base: all respondents

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    Brand& Importance of Waiting

    Time to Final Car Choice

    Analysis

    0 10 20 30 40 50

    not at all important

    not very important

    quite important

    very important

    %

    volume

    specialist

    Base: all respondents

    Volume

    Citroen

    Fiat

    FordMazda

    Peugeot

    Toyota

    Rover

    Vauxhall

    VW

    Specialist:

    Alfa Romeo

    AudiBMW

    Jaguar

    Land Rover

    Lexus

    Volvo

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    Consumer New Car Buying

    Alternative Specification Takeneg when first preference not available, would take too long,

    offered alternative in stock

    Were

    alternativesspecifications

    taken?

    Were

    alternativesspecifications

    taken?

    Yes

    24%

    Yes24%

    No76%No

    76%Base: all respondents

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    Brand& Alternative Specification TakenAnalysis

    20 40 60 80 100 120 140 160 180

    Alfa Romeo

    Audi

    BMW

    Citroen

    Fiat

    Ford

    Jaguar

    Land Rover

    Lexus

    Mazda

    Peugeot

    Rover

    Toyota

    Vauxhall

    VW

    Index: 100 = Norm

    Norm

    Base: all those taking alternative spec

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    Age, Sex& Alternative Specification

    Taken

    Analysis

    20 40 60 80 100 120 140 160

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    Consumer New Car Buying

    Alternative Specification Taken

    0 10 20 30 40 50

    Colour, paint type

    Engine size/type

    Interior options

    Body shape

    Exterior options

    % taking alternative specBase: all accepting

    alternative spec

    Mattered Index

    105

    110

    98

    122

    88

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    Consumer New Car Buying

    Benefits Received for Accepting

    Alternative Specification

    Were benefitsaccepted?(for taking alternative spec to

    preferred choice)

    Were benefits

    accepted?(for taking alternative spec to

    preferred choice)

    Yes

    53.3%

    Yes53.3%

    No46.7%

    No46.7%

    Base: all those accepting

    alternative specification

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    Brands & Benefits Received for

    Accepting Alternative SpecificationAnalysis

    20 40 60 80 100 120 140 160 180

    Alfa Romeo

    Audi

    BMW

    Citroen

    Fiat

    Ford

    Jaguar

    Land Rover

    Lexus

    Mazda

    PeugeotRover

    Toyota

    Vauxhall

    VW

    Index: 100 = Norm

    Norm

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    Consumer New Car Buying

    Benefits Received

    for taking an alternative specification to preferred choice

    0 5 10 15 20 25 30 35 40

    New car discount

    Spec upgrade

    Better trade in price

    Good finance deal

    After sales offer

    % receiving benefitBase: all who receivedbenefits due to alternative

    spec

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    Consumer New Car Buying

    Day of Order & Collection

    0 5 10 15 20 25 30 35

    Monday

    Tuesday

    Wednesday

    Thursday

    Friday

    Saturday

    Sunday

    % taking place on day

    Day of collection

    Day of order

    Base: all respondents

    Dealer survey:

    Saturdays

    lower (18%)

    Dealer survey:

    Saturdays

    lower (18%)

    Dealer survey:More on

    collections on

    Saturday

    (29%)

    Dealer survey:

    More on

    collections on

    Saturday

    (29%)

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    Consumer New Car Buying

    Time of Day of Order & Collection

    0 5 10 15 20 25 30 35 40 45

    morning

    lunchtime

    afternoon

    evening

    % taking place at time of day

    Time ofcollection

    Time of order

    Base: all respondents

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    Consumer New Car Buying

    Ideal Length of Time from Order to

    Delivery

    19%12%

    22%

    42%

    5%

    up to 1 week

    1 to 2 weeks

    2 to 3 weeks

    3 to 4 weeks

    4 to 6 weeks

    Base: all respondents

    Cumulative

    1 week:

    19%

    2 weeks:61%

    3 weeks:

    83%

    4 weeks:95%

    Cumulative1 week:

    19%

    2 weeks:

    61%

    3 weeks:

    83%

    4 weeks:95%

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    Consumer New Car Buying

    Ideal Length of Time OTD:

    Customer v Dealer Opinion

    19%17%

    22%

    42%

    up to 1 week

    1 to 2 weeks

    2 to 3 weeks

    4 + weeks

    5%

    39%

    34%

    22%

    Customer Dealer Opinion

    Source: 3DayCar Dealer Survey, 12/1999

    Analysis

    61% v 27%

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    Age & Ideal OTD Time

    0 20 40 60 80 100 120 140 160 180

    up to 1 week

    1 to 2 weeks

    2 to 3 weeks

    3 to 4 weeks

    4 to 6 weeks

    Index: 100=Norm

    over 55

    36 to 55

    25 to 35

    under 25

    Analysis

    Norm

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    Consumer New Car Buying

    84% of Under 25s thought the ideal time is

    2 weeks or less 58% of over 55s

    62% of 36-55s

    54% of 26-35s

    Average OTD wait: 55: 18.6 days

    Analysis Age & Ideal OTD Time

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    Brand& Ideal OTD Time - 2Analysis

    20 40 60 80 100 120 140 160 180 200 220 240 260

    Alfa R omeo

    Audi

    B MW

    Citroen

    Fiat

    Ford

    Jaguar

    Land R over

    Lexus

    Mazda

    Peugeot

    Rover

    Toyota

    Vauxhall

    VW

    In dex: 100 = No rm

    4 to 6 weeks

    3 to 4 weeks

    Norm

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    Region & Ideal OTD Time

    20 40 60 80 100 120 140 160 180 200

    Lon/S/SEast

    Wales,SWest

    Mids, E Ang

    North

    Scotland

    Index: 100=Norm

    4 to 6 weeks

    3 to 4 weeks

    2 to 3 weeks

    1 to 2 weeks

    up to 1 week

    Analysis

    NormNorth -

    South

    divide

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    Consumer New Car Buying

    Summary & Conclusions

    Robust sample for analysis

    Surprisingly short time spent on makingthe purchase decision general shift in consumer behaviour?

    Waiting time is important to choice of car higher than anecdotal evidence

    Present system is an almost 2 week carsystem for almost half of buyers but driven from stock

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    Consumer New Car Buying

    Summary & Conclusions

    Significant regional variations dist centres, brands bought, congestion, expectations?

    Young motorists significant difference in behaviour & expectations

    will impact future overall market behaviour natural 3DayCar consumers?

    OTD time matters ideal time much less than industry thinks contrast with dealers survey

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    Consumer New Car Buying

    Summary & Conclusions

    Alternatives & benefits received significant - quarter of all buyers accept alternative

    one eighth receive benefits

    which are lost margins, profitability etc

    Timing of orders & delivery bias towardsweekends

    Fridays for collection

    Saturdays for order

    supports dealer research

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    Consumer New Car Buying

    Summary & Conclusions

    Research suggests that the consumer

    demand for a 3DayCar would be strong

    Latent potential ready to exploit.

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    What the Customer Wants

    New Car Buyer Behaviour-

    Quantifying Key Stages & Activities in the Consumer

    Buying Process