a report of trust and car purchasing habits
TRANSCRIPT
A Report of Trust and Car Purchasing Habits
1. Consumers
a. Pulse of the consumers in general
“IT TAKES YEARS TO BUILD AND
A FEW SECONDS TO DESTROY IT”
a. Pulse of the consumers in general
Identity Builders Loyalty, Parents, Friendship, Health, Doing the job they like, Me and my money, A warm and peaceful place, Quality, A big amount of money in bank, Experience, Persuasiveness
Career Builders Friendship, Motherhood, Honesty, Sincerity, Health, Peace, Money, Advertisements of the banks
Family Builders Husband, Guarantee, Quality, Comfort, Cleanliness, Insurance, Peace, Stability, Health, Income that comes regularly
“Trust” means to consumers
a. Pulse of the consumers in general
Trust to the Conditions in Turkey
Robbery and Pickpockets
Global Terrorism
Economical Instability
Distrust to the Politicians
Traffic Terror
Natural Disasters
Football Terror
Among all of the Pulse groups, the common outcome about feeling safe in Turkey was unfortunately negative.
“Even if something bad happens in the middle of the crowd, nobody helps us lately.”
“If U.S.A. attacks Iraq and Iran, it can possibly attack Turkey one day.”
“If I am not the one driving the car, I do not feel safe on traffic.”
“We can not go to watch our team with our children or wife.”
a. Pulse of the consumers in general
Identity Builders Mother, Father, Girl/Boy Friend, Brothers- Sisters, University Friends
Career Builders Mother, Brothers- Sisters, Husband-Wife, Themselves, Close friends, Relatives, Their dogs, Nobody
Family Builders Father, Husband, Their Children, Nobody
Trustworthy People in the Consumers’ Life
a. Pulse of the consumers in general
Identity Builders Mithat Bereket, Fatih Kısaparmak, Hulki Cevizoğlu, Mehmet Ali Birant, Kıraç, Zülfü Livaneli, Hakan Şükür, Okan Bayülgen
Career Builders Okan Bayülgen, Kenan ışık, Bay J, Cem Ceminay, Emin Çölaşan, Hulki Cevizoğlu , Doğu Perinçek
Family Builders Bülent Ecevit, Demet Akbağ, Levent Kırca, Yasemin Yalçın, Muazzez abacı, Kenan İmirzalıoğlu, Zerrin Özer
Most Trusted Celebrities in Turkey
a. Pulse of the consumers in general
What “Fear” means to consumers?Identity Builders Nightmares, The future of Turkey, Horror movies,
Death, Death of the beloved ones, Failing at job, Loneliness, Being handicapped, Being bankrupt, Cats, Losing their mums
Career Builders Fire, Darkness, Streets, Guns, Robbers, Being kidnapped, Earthquake, Knife, Snake, Dogs, Death, Being left alone
Family Builders Insecurity, Horror films, Screams, Sorrow, Being shocked, Depression, Walking on the streets at night, Being startled
a. Pulse of the consumers in general
a. Pulse of the consumers in general
• “Fear” is one of the most innate, powerful, and secluded instincts of human beings.
• For this reason, the need to be protected from danger and fears is crucial.
a. Pulse of the consumers in general
• For this reason, it is the duty of the corporations to elude the financial, product quality and hygiene, and security fears of their consumers.
• It is essential for the organizations to create a trustworthy and reputable image, to have consistency in all operations, and to have strong firewalls against defraudation in on-line operations.
a. Pulse of the consumers in general
• Only by this way, by coping “trust” bond with the target market, and being in one-to- one communication with the consumers, long- term loyalty can be achieved.
a. Pulse of the consumers in general
Most Trusted Brands in Consumers’ Lives:
• The consumers perceive certain brands as “trustworthy” due to these reasons:• The brand being part of a reputable, well- established
organization• Having well- qualified employees at all levels of the
organization• Being in one- to- one contact with the consumers• Having high quality, hygenic, tasteful, and fashionable
products without any defects
a. Pulse of the consumers in general
Most Trusted Brands in Consumers’ Lives:
• The consumers perceive certain brands as “trustworthy” due to these reasons:• Proving the safety of the products in time, being always
consistent with its products, services, and brand image• Producing high quality products for affordable prices and
products being guaranteed for long years. • Having “inspiring and true” communication.• The brand name being settled in the consumers’ minds and
the brand name being associated with the sector. For instance, Nescafe brand being associated with the coffee sector.
a. Pulse of the consumers in general
What the brands need to be “trustworthy”: • Corporate reputation
• The organizations and brands should be careful to protect their reputation that takes years to build and only a few seconds to destroy due to a single event.
• Consistency• Having consisteny over years in the quality of the products/ services
and in the brand image is a “must”.
• Trustworthy perceived celebrities• Associating the brand with a liked and reputable famous role model
can add value to the brand and effect the target market. On the other hand, the companies should be careful about the celebrities that they choose for their promotional activities as the sensations/ bad events that can occur to the celebrities in their personal lives can harm also the brand and the corporation’s image.
a. Pulse of the consumers in general
What the brands need to be “trustworthy”:
• Security concerns• Also, to benefit from the potential of on- line marketing, the
corporations should resolve the “security concerns” and lack of trust of the consumers about on- line shopping due to hackers and fraud. Better protected web sites and precautions against the hackers can foster the potential of on- line shopping.
a. Pulse of the consumers in general
Implications of these findings to automotive category:
“IT TAKES YEARS TO BUILD AND A FEW SECONDS TO DESTROY IT”
• Trust is very important criteria in automotive sector. Especially, word of mouth can destroy the trust to brand in a few seconds.
• Car buyers and users, want to know that when they are in car, nothing can demage them & their family. That’s why they choose the brands which are perceived as trustworthy and technologic. • Volvo is a very good case. Every car buyer and user knows that Volvo
produce very safety cars, without aesthetic. But if buyer gives importance nothing but the safety, he/she will choose a Volvo.
Implications of these findings to automotive category:
• Car buyers and users want a “road fellow” which never gives up him/her. Because when user in car, trust her/his life with her/his car.
• And also car users want a company which will help him/her everytime and in every condition. Especially service network is important. If the repair prices/ service quality is change service by service, customers lose their trust to company. • We see the same concern in VW users. ( Opportunity area)
a. Pulse of the consumers in general
Implications of these findings to automotive category:
• But car users need something more than safety.
• Some car users give importance to their friends’/relatives’/wives’ opinions when they are in the car buying process. • Because all car buyers and users want to use a car which is
perceived as good quality and prestigious. • We see this concern in Fiat, Renault, Opel and VW users. (Opportunity
area)
a. Pulse of the consumers in general
1. Consumers
b. Pulse of the consumers in automotive category
b. Pulse of the consumers in automotive category
The automobile; A symbol
for social progress.
Inclination to move to upper segments or desired brands in new car buying decision.
A healthy brand should satisfy the consumer both rationally and emotionally.
• A symbol of social progress.• Selects brands with high
credibility and reputation.• Inclination to move to upper
segments or more desired brands in new car buying decision.
Brand is a personal reflection.
The automobile
• A symbol of who we want to be.
• Symbolises aspired life style.
b. Pulse of the consumers in automotive category
Prefers brands that understand his/her needs.He/She will respect brands that show empathy to his/her needs
and desires.
Tomorrow’s consumer will demand young, innovative, smart, reliable and functional brands.
b. Pulse of the consumers in automotive category
(*)
(*) You can detaily see the process in appendix part.
Source: “ How people buy cars” report by Roderick white
b. Pulse of the consumers in automotive category
Some of the ways in which manufacturers (or dealers) may best expect to influence consumers through this long-drawn-out process:
At stages 1–3 and 10–11, the main (or perhaps only) influence will be from the owned/bought marque. The use of direct mail in stages 1–2, especially, is likely to be various forms of 'welcome'. Competitive influences can really start to come into play
about stage 4.
Source: “ How people buy cars” report by Roderick white
b. Pulse of the consumers in automotive category
b. Pulse of the consumers in automotive category
• But these workings and plannings are not enough to sell a car to consumers. Because there is external influences on consumers which we can’t control directly.
1. Media; competition communication can influence the buyers. 2. Talks about between friends and colleagues; and in bars,
and are subject to regular attention due to servicing and repairs keeps awareness of cars – your own or other people's – high.
3. Dealers; according to consumers, dealers are not trusted sources, but we have to admit that dealers have influences on uninformative buyers.
4. Kids; can be bitterly disappointed if their parents make what they perceive as a dull or uncool choice.
Source: “ How people buy cars” report by Roderick White, “ Understanding The Role Of Media In Buying A Car” by Stuart McDonald
b. Pulse of the consumers in automotive category
• But these workings and plannings are not enough to sell a car to consumers. Because there is external influences on consumers which we can’t control directly.
5. Women; in practice, are the primary buyers of a substantial proportion of new cars sold. But by no means exclusively smaller models; they undoubtedly increasingly influence the car choices of their husbands, partners and boyfriends.
6. Internet, is an extremely valuable source of information, empowering the car purchaser. It enabled some members of the group to research the car they were interested in, prior to visiting a dealership. They noted that this helped them to appear knowledgeable and to avoid 'being ripped-off' by the dealer.
Source: “ How people buy cars” report by Roderick White, “ Understanding The Role Of Media In Buying A Car” by Stuart McDonald
2. Competitive Analysis
Interior comfortErgonomic superioityUse of high techPerformanceRoominess +
Exterior designBody strengthLow, not for Turkish roadsHigh cost of ownership
Superior technologyReliableSafe / strong bodyDurableCreate confidenceQuality of finishing
Price
Japanese Cars
German Cars
-
+ -
2. Competitive Analysis
Source: New car buyers survey 2004
Exterior design (Peugeot)Esthetic qualitiesInterior design detailingEconomic choice + Cost of ownership
DurabilitySafety
SpeedModern LinesPowerEleganceEstheticsHigh Quality
SafetyMeintenance cost
French Cars
Italian Cars
-+ -
2. Competitive Analysis
Source: New car buyers survey 2004
Male35-45 years oldAB, C1 ses groupLive in metropolsPrimary SchoolMarried
PriceLow cost of ownershipStrong 2nd hand market
Who is buying? Why?
Consumers think that Renault improved its brand image and technology. Today Renault perceived as durable, aesthetıc and accesible car. Economical spare parts and widespread service network make Renault an optimal car for B,C1 SES group.
Reasons to purchase
2. Competitive Analysis
Source: TGI
Male ,25-45 - Tofaş, (18-34)ABC1 SES group- Tofaş C1, C2, DEPrimary/ Secondary school degreeLive in metropols Marmara and Ege Regions, Tofaş AnatoliaMarried
Low purchase price Economical Low fuel consumption Economical spare parts
After sales serviceEveryday car
Who is buying? Why?
Low
co
st o
f ow
ner
ship
Fiat: “My first car.” , “ We bought it for my wife”. Consumers choose it only for economical and functional reasons. It’s cheap, small city car for young people and for women.
2. Competitive AnalysisReasons to purchase
Source: TGI
Male35-44 years old ( In 2003, Ford has younger profile)ABC1 SES group Primary degreeLive in metropols Mostly in Marmara and Ege regions
Married ( In 2003, more single user)
PriceStrong 2nd hand market
Who is buying?
Why?
Ford is losing market share because of the variety and price wars in automotive market. Consumers want to buy more prestigious cars instead of Ford. Only price sensitive and loyal users choose brand.
2. Competitive Analysis
Source: TGI
Males 35-44 years oldAB SES group Primary (%27) and University (%28) degreeLive in metropolsMarried
SafetyPrestigeDurablity
Who is buying?
Why?
VW, entered the automotive market as a public and accesible car; but now everyone buy it for prestige. The way of advertising, the way of production and style VW is perceived as a car which has a personelity. ( Smart, cool and witty) Durability, safety, technology and comfort concepts are consubstantıate with the brand.
2. Competitive Analysis
Source: TGI
Unisex 25-45 years oldAB SES groupHigh school and university degreeMarmara and Ege regionsMarried
Design/Style Distinctive
Fuel consumption
Who is buying?Why?
3-4 years ago Peugeot was a car which style and speed seekers prefered. But with easy drive feature and compact size, today Peugeot is the favored car to women. “ Peugeot is passion.” says users. And trend seekers feel themselves closer to brand.
2. Competitive Analysis
Source: TGI
Male 25-34 years old ( In 2003, older profile)AB, C1 ses groupLive in metropolsPrimary (%26),University (% 23) degreeMarried
Problem freenessInterior comfortStrong 2nd hand market
Who is buying?
Why?
Toyota is a brand whose want guaranty, problem freeness and durability in their lifes. Conservative thinkers generally prefer brand. And big firms prefer brand as a fleet car. Toyota want s to reach younger consumers but Toyota’s style is too much classic and not trendy for this group.
2. Competitive Analysis
Source: TGI
Male 35-44 years oldAB Ses groupMarriedUniversity degree (%23)Live in metropols and Central Anatolia.
Gerrman heritageFunctionalDurableFuel consumption
Who is buying?
Why?
“ Reliable but classic and its service network not good” in these days consumers perceived Opel like this. It was a prestigious brand. Still the most educated users are Opel users, they are environmentalist, safe seeker, good businessmen and good fathers.
2. Competitive Analysis
Source: TGI
Male 35-44 years oldAB Ses groupMarriedUniversity degree (%34)Live in metropols and Central Anatolia.
PriceComfortFuel Consumption
Who is buying?
Why?
Hyundai, users are educated groups. Also they are trend seeker and price oriented.
2. Competitive Analysis
Source: TGI
2. Competitive Analysis
Decoding the competitive language:
• The German design and positioning is taken as benchmark.• Deceptively similar designs across brands• Feature focused approach• Techno speak• Highly metal, futuristic environments• Cutting edge design look• Muscle car image
• Car is portrayed as a power tool, a desire item.• Humor is seldomly used.
2. Competitive Analysis
Decoding the competitive language:
• Nationality is coded in brand language.• Opel is reliable, cutting edge technology.• Renault and Peugeot are design and life style oriented brands.• Toyota acts like a Europen brand and never highlights being
Japanese.
The focus is on the car, not the consumer.(except VW)
Appendix
THE BUYING PROCESS
1. Post-purchase
• This is (hopefully) a period of euphoria, when you admire, enjoy, and boast about the new vehicle; and when you find out whether the car – or dealer – really lives up to the sales pitch. You enthusiastically justify your purchase to friends and colleagues, and you notice your own model on the road when you meet one. Disasters, if they occur, hurt.
2. Fallow period – non-interest
• Other models are only thought about if things go badly wrong. This is a period when the owner can – hopefully – bond with the new car. But you still talk to your friends about cars – and watch the TV, so you are exposed to some outside messages about cars, though you may ignore press ads.
Source: “ How people buy cars” report by Roderick white
THE BUYING PROCESS
3. Fallow period – 'I'll need a replacement sometime'
• May be triggered by an expensive repair – or simply a desire for change, or the simple fact that regular change is an employer's policy. You start to notice other marques/models on the road more carefully.
4. First thoughts – 'I'll need a new car quite soon'
• Requirements for the next car begin to surface. Interest in cars starts to heighten. You may watch TV car programmes, look around on the road and in the car park; read the odd car review, or even a press ad.
Source: “ How people buy cars” report by Roderick white
THE BUYING PROCESS
5. Initial search – serious looking about
• Fairly unfocused searching, talking to friends, perhaps looking at car magazines. Choice criteria begin to be formed. You become far more 'car conscious'. A consideration set begins to emerge.
6. Getting seriously active – developing the short-list
• Serious searching, using a variety of sources, which may include online or offline car comparisons and ratings. Choice criteria are developed and refined (price and size/format are usually the basics). Both the internet and car magazines prove their worth. Consideration set firms up.
7. Detailed investigation
• Criteria used to eliminate non-starters. More detailed opinions sought – from any likely source. Increasingly the web, usually car comparison sites, is a key element here. Your eye may be caught by a new model or a good deal. (Short-lists typically three to four models only).
Source: “ How people buy cars” report by Roderick white
THE BUYING PROCESS
8. Shopping around
• Let's go see some cars – I'll check the Yellow Pages (or the web) for dealers
• How does the showroom look?
• Can I find and browse information?
• Can I relate to this salesperson?
• Do they have any interesting deals?
• Let's have a good look at the car – what does the family think?
• Can I set up a test drive? Do they give me freedom to do what I want, not what the salesperson tells me?
• I'm still interested in those, let's look more closely at prices: here's where the web's a bonus. (for some) Can I specify precisely what I want, online?
Source: “ How people buy cars” report by Roderick white
THE BUYING PROCESS
9. Negotiation and payment
• How do I want to pay for it?
• Can I get a good trade-in deal?
• Can I get a better deal down the road? Off the web? Abroad?
• What if I add on/take off this (extra)?
• Do I get it quicker in a different colour?
• What did you say the delivery date was?
• Anything off for cash?
• I understand this leasing scheme? Do I really want it? What does it really cost?
• My bank will only loan me $X,000 …
Source: “ How people buy cars” report by Roderick white
THE BUYING PROCESS
10. Waiting for delivery
• I wonder if I am really right
• What will my friends/neighbours think?
• How much longer?
• Is that really a colour I can live with?
• All that money …
• They said it would be three weeks, and it is four already.
Source: “ How people buy cars” report by Roderick white
THE BUYING PROCESS
11. Delivery
• Oh, wow! (or, perhaps) Oh my God!
• Thank you Mr Dealer
• I hope you are not expecting me to accept this …
• Let's get inside and take the family for a spin
• I can't wait to show the neighbours.
Source: “ How people buy cars” report by Roderick white
THE BUYING PROCESS
Source: “ How people buy cars” report by Roderick white
THE BUYING PROCESS
Source: “ How people buy cars” report by Roderick white
Car Buying Decision Criteria
• Price % 20,8
• Appearance % 20,0
• Loyalty % 16,5
• Prestige % 10,8
• Durability %10,4
• Reputation %10,1
• Fuel consumption % 7,2
• Interior design % 6,1
• Economy in General %5,4
• Car overall %5,1
• Nationality %5,0
• Equipment level %4,6
• Body type %4,1
• General comfort %3,6
• Easy to handle %3,3
• Roominess %3,3
• Performance %3,3
• Practical %3,2
• Compact size %3,2
• Dealer network %2,9
• Terms of payment %2,7
• Resale value %2,5
• Dealer after sales %2,5
• Safety %2,3
• Diesel /LPG %2,3
• New model %2,2
• Spares availability %2,2
• Acceleration %2,2
• Manoeuvrability %2,1
• Maintanance cost %2,0
• Technology %2,0
• Suits local roads %1,4
• Wanted to change %1,2
• Size of boot %1,2
• Not stated %1,1
• Value for money %1,0
Source: New car buyers survey 2004