Download - 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