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AutomotiveUnravel today’s complex route to market© TNS

Unravel today’s complex route to market.TAPPS: Developments for 2013


Understanding the Chinese car buyer

We talked to 1,000 people in China as they made a decision about which car to buy. We gathered the information in real-time to understand how people make decisions and what really is influential at each stage of the purchase journey.

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Consumer buying behaviour has changed


The traditional funnel fails to capture today’s complex world…

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Today’s buying process takes place within a multi-faceted path to purchase

5


Consumers and brands now co-create the buying process

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Traditional “look back” study designs are no longer adequate

Tracking the same people through their buying process is optimum

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A new approach TAPPS


a

What is TAPPS?

Snakes and ladders

Provides a micro-level analysis of the path to purchase

4-month online continuous interaction measuring all touch points

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Valuable insights in real time with online data reporting

TAPPS’ provides an in-depth understanding of:

Actual buying process timeline

Role and use of digital and social media

Interactions between, and influence of, brand and consumer generated content

Key touch points at different stages of the car-buying process

Triggers of vehicle consideration, rejection and purchase

The changing role(s) of dealers

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TAPPS’ unique insights build into your marketing strategies…

TAPPSMedia planning

Communications

Pricing, promotions & incentives

Targeting

Positioning

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2012 TAPPSA positive first step


Months 0 1 2 3 4

1

2

3

4

The operational framework consists of 4 components

Screening of the panelists & initial interview

Weekly online ‘touch point’ survey and photo journal

Online focus groups & click-stream data for a sub-sample

Post-purchase interview (as soon as a consumer buys a vehicle)

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Representative sample with wide geographic coverageSampled from 184 cities in 27 provinces

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Actionable TAPPS insights

Media spend adjustments to reflect the importance of TV and social media

CRM use adaptations to identify and activate committed brand owners to act as brand spokespersons in specific social media

Brand website content adjustments to better reflect use throughout the buying cycle, not just at the end

Communication styles adaptations in those media used extensively by ‘fast decision’ takers, to reflect their decision making style

Dealer follow up behavior adaptations to enhance conversion of ‘confused’ shoppers

Promotions and Incentives adaptation to reflect the parameters of what’s acceptable for specific brands.

The benefits of a clear understanding of the buying process havemultiple applications

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TAPPS has been further optimizedChanges for 2013


Months 0 1 2 3 4

1

2

3

4

The 2013 operational framework again consistof 4 components

Screening of the panelists & initial interview

Weekly online ‘touch point’ survey and photo journal

Online focus groups & click-stream data for a sub-sample

Post-purchase interview (as soon as a consumer buys a vehicle)

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Study BackgroundConsistent data collection method over time

Field work period

Methodology

Year 1 Oct. 2011 – Feb. 2012Year 2 Oct. 2012 – Feb. 2013

Online Panel Survey

Market / Location Sample from 214 cities in 32 provinces in China

Consumer criteria

• Aged 18 -50 yrs old;

• Live in Tier 1, Tier 2 and Tier 3 cities

• Did not participate in auto related survey in the past 3 months

• Plan to purchase a vehicle in the next 6 months

• Plan to purchase a new vehicle

• Is the decision maker or one of the main decision makers for the

purchase of the intended vehicle

Compared Brand/Model 121 brands and 460 models available on the market

Sample size Initial n=1607, Diary n=864, Clickstream n=482

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Representative of the new car buying public60% of respondents are first time car buyers

Unit: %N = 1,670

Family

Living in Personal monthly income

AgeGender

60

Note: TAPPS focussed on intending buyers of sub-compact, compact and mid-size vehicles

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Robust sample available for most brands

Brands under consideration Sample size

Audi 466

BMW 270

Buick 418

Cadillac 63

Chevrolet 351

Citroen 202

Ford 227

Honda 348

Hyundai 390

Mercedes 200

Nissan 212

Peugeot 207

Toyota 347

Volkswagen 745

Only selected brands shown of 78 under consideration by shoppers

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Large sample (1399 of luxury and near luxury brand considerers)

Brands under consideration Sample size

Audi 466

BMW 270

Bentley 15

Ferrari 22

Infiniti 33

Jaguar 29

Land Rover 71

Lamborghini 14

Lexus 88

Lincoln 12

Lotus 18

Mercedes 200

Porsche 58

Volvo 79

Small samples also exist of Aston Martin, Bugati, Maserati and Maybach considerers

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More detailed analysis on specific sites: e-Nissan.com.cn is attractive and sticky among shoppers

Num

ber

of

min

ute

s on t

he s

ite

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NewCompare TAPPS results in China with US results

How TAPPS helps our customers


Influence-Performance-Matrix of one specific or an overall purchase stage for any desired target group

Importance to brand preference

Perf

orm

an

ce

low

hig

h

low high

TP 1

TP 2

TP 3

TP 1 TV

TP 2 Billboard

TP 3 Independent expert in newspaper/magazine

TP 4 Friends/relatives

TP 5 Visit Car Dealer

TP 6 Ad in newspaper

TP 7 Radio

TP 8 Social Media

TP 9 Manufacturer web sites

TP 10 Blogs/Forums

TP 11 Saw vehicle on the road

TP 12 Visit price comparison web sites

TP 13 Dealer web sites

TP 14 Independent expert opinion online

Importance to preferenceDerived by Hierarchical Bayes Regression

Performance:Stated performance for touchpoint

Bubble size:Frequency of touchpoint usage

SAMPLE ONLY

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Allocating resource to the right channels at the right time

In the early stage of shopping brand generated content is most influential and is widely used. TV Ads have the most impact.

1=TV ad 2=Press as 3=Billboard ad 4=Discussed cars with family and friends 5=Vehicle on the road

6=Radio ad 7=Discussed on social media 8=Online review 9=Car-related comments 10=Saw vehicle in public space

11=Car brand website 12=Car dealer website 13=Car dealer 14=Car promotional offer

Importance of Touchpoint for Preference Score HighLow

Perf

orm

ance

of

Touch

poin

t

High

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Identifying the key hubs to influence

Although they have limited impact in the final stage of decision making TV Ads and car dealers are crucial hubs.

They drive the use of other touch-points that impact brand preference

Family and friendsVehicle on the

roadPress ad

TV ad Billboard ad Radio ad

Promotional offerOnline review Social media Car dealer

Car brand website Car dealer website

Other touchpoints

Brand preference

14% 4% 8% 4%

17% 4% 6% 14%

9% 3% 5%

5% 7%

Effects of Touchpoint (1 to 2 weeks ago)…

Significantly positive on usage of different touchpoints Significantly negative on usage of different touchpointsOn brand preference (combined effect of contact yes/no and helpfulness) in terms of relative importance%

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Managing non-brand generated online content

Ensuring good presence and content in multiple forums and blogs is important to impact consumers to buy Brand X

Respondents who finally purchase Brand X N=51Note: The websites marked in Pink are the websites that are only relevant to the PURCHASERS rather than those CONSIDERING the make

Life service: ganji.com

Life service:58.com

Mirco blog:t.qq.com

Blog: Blog. hexun.com

Auto:51auto.com0.2046 0.4038 0.3596 0.5511 0.1658

Auto:Auto .sina.com.cn

Blog:Live.com

Blog: blog.10 jqka.com.cmn

SNS: yy365.com

Blog: Blog. Sina.com.cn

Auto: Auto home.com.cn0.2052 0.7374 0.4762 0.3653 0.5767

Auto:Xcar.com.cn

Blog: zhidao. baidu.com

Auto: auto.163.com

SNS: qzone.qq.com

SNS: renren.com0.1139 0.6982 0.6682

Micro blog: weibo.com

Buy

Forum: tangdou.com

Blog: Blog.163.com

Auto:Bitauto.com0.5153 0.4533 0.2101

SNS: pengyou.com

Forum: taoguba.com.c

n

Life service: baixing.com0.1228 0.5256

Auto:52che.com

0.6987

0.2786

0.4603

0.4552

0.5946

0.1342

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Getting personal

XXXX40 years oldEmployed as Secondary level staff in hotelPersonal salary: Around 17,000 RMB per monthLives together with his wife and children in QingdaoEducation: University

Time consumption on internet

Morning Afternoon Evening

Looking through the lens of individual consumers brings the data to life

v1

v v

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Getting personal

Looking through the lens of individual consumers brings the data to life

Forum of Auto

Study the instruction for taking the delivery in 4S store via forum of auto

Browse and investigate the maintenance/repair/technics information for “Buick” on forum of www.autohome.com.cn

Forum of Auto

Compare “Lavida” and “Excellent” in terms of the evaluation from forum of www.autohome.com.cn

Forum of Auto

Start

Visit the specific channels of “Lavida” and “Excellent” to collect basic information for these two models

Forum of Auto

Visit www.autohome.com.cn for first browsing

Auto Portal

Visit forum of www.autohome.com.cn to collect the information and read other people’s comments for first selection of model/brand

Forum of Auto

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http://www.autohome.com.cn/





Valuable insights in real time

To summarise, TAPPS’ provides an in-depth understanding of:

Actual buying process timeline

Role and use of digital and social media

Interactions between, and influence of, brand and consumer generated content

Key touch points at different stages of the car-buying process

Triggers of vehicle consideration, rejection and purchase

The changing role(s) of dealers

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Visit www.tnsglobal.com/automotive

Andy [email protected]+ 44 (0)203 130 7350

Kelvin [email protected]+86 21 2310 0995 ext. 156

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