the role of the internet in the car purchasing process julie forey head of research msn uk

The Role of the Internet in the

Car Purchasing Process

Julie ForeyHead of Research

MSN UK

Agenda

• Objectives

• Methodology

• Main Findings- Sources used - Role of the internet- Advantages & disadvantages

• Summary

Objectives

• Understand the role of the Internet in the car purchasing decision making process

• Establish its relative importance compared to other information sources

• Understand specifically what the Internet is used for

• Establish perceived advantages and disadvantages of the online medium

Methodology

Stage 1

• 2 Group discussions to better understand the car purchasing procedure to aid quant questionnaire- Intender audience (next 6 months)

- Purchaser audience (last 6 months)

Stage 2

• 1000 interviews among GB adults (face to face omnibus survey of both online and offline respondents) to establish market size & priority of information sources

Stage 3

• Bespoke online survey among Internet users- 280 respondents that had purchased a new/used car in the last 6 mths

- 200 respondents that intended to purchase a new/used car in the next 6 mths

Fieldwork for all three stages conducted between May and June 2004 by NOP World

Who has bought a car in the last six months?

Base: All GB adults

16%

22%

11%13%

22%24%

21%

12%

7%

0%

5%

10%

15%

20%

25%

30%

AllMen

Wom

en

17-2

425

-34

35-4

445

-54

55-6

465

+

Net users are more likely to have bought a car in the last 6 months

20%

13%

16%

0%

5%

10%

15%

20%

25%

All GB Adults Internet Users Non Net Users

Base: All GB adults

Sources Used

The internet is 3rd most popular source used in decision making process

48%

36%

33%

31%

29%

23%

19%

19%

18%

16%

15%

12%

11%

8%

12%

Car dealership personnel

Friends' advice

Internet

Car magazines

Brochures

Newspaper ads

Consumer reports

Magazine ads

Online advertising

TV ads

TV programmes

Posters

Leaflets

Radio ads

None of these

Base: All GB adults who have bought a car in last 6mths

And the No.1 Media Source …..

33%

31%

29%

23%

19%

18%

16%

15%

12%

11%

8%

12%

Internet

Car magazines

Brochures

Newspaper ads

Magazine ads

Online advertising

TV ads

TV programmes

Posters

Leaflets

Radio ads

None of these

Base: All GB adults who have bought a car in last 6mths

The internet scores highest for importance

68%

62%

61%

57%

40%

36%

Internet

Consumer reports

Friends' advice

Car dealershippersonnel

Car magazines

Brochures

Base: All users who used … as an information source

Top sources ranked according to those scoring Extremely/Very important

Extremely important rating

27%

22%

25%

27%

12%

8%

The net is usually the FIRST used source

Source 1st used 2nd used 3rd used Total used 1st/2nd/3rd

Base: All who used …. as an information source

Car dealership personnel

Internet

Friends’ advice

Car mags

Consumer reports

26% 25% 33% 84%

57% 28% 6% 91%

38% 26% 18% 82%

22% 19% 28% 69%

19% 32% 24% 76%

The role of the Internet

4.1

4.9

3.7

2.93.2

2.7

0

1

2

3

4

5

6

All New Car Buyers Used Car Buyers

Intention to purchase Research conducted

Mean no. mths prior to purchase

Research is started on average threemonths prior to purchase

Base: All car purchasers using Internet for research

The majority use the internet throughout the process

Only at the very early stages Only once I had/have decided on a particular make/model of car

Only towards the end of the decision making process

Throughout

Other/DK

14%

17%

10%

56%

3%


19

25

16

11

0

5

10

15

20

25

30

Total Hrs Total Hrs - New carbuyers

Total Hrs - Usedcar buyers

Hrs Online

Mean No. Hrs

Online accounts for over half the total research hours

58% of Total Hrs


General car websites are most popular

32%

48%

60%

67%General car related

Car manufacturer

Car dealership

Other


What the car buyers said….

“You can easily see all the deals

out there”

“If you get the right site you should

receive impartial information”

“When I had my mind made up I went to the actual

Toyota web site and it gave me loads of things I hadn’t

thought of”

“Ability to compare many models in one place, to see all the options available”

“A vast amount of unbiased information”

79%

52%

49%

49%

38%

37%

17%

12%

8%

2%

Price Range

How to pay for car

Make/brand of car

Model

Specifics about spec/extras

Part exchange

Insurance provider

Dealer(s)

Any financing institutions

None of these


Decisions made prior to online research:

Car buyers using the internet are open to Influence

79%

52%

49%

49%

38%

37%

17%

12%

8%

2%

Price Range

How to pay for car

Make/brand of car

Model


Part exchange

Insurance provider

Dealer(s)


None of these


Decisions made prior to online research:

Car buyers using the internet are open to Influence

BUT 42% will have changed their mind in at least one area as a direct result of online research ….

Decisions shifted after researching online

5%

7%

8%

9%

12%

13%

14%

14%

17%Insurance provider

Dealer(s)


Model

Price Range

Make/brand of car

Part exchange


How to pay for car

Base: All who had made a decision on … prior to net research

% of those having made the decision prior to researching online

What did they use the Internet for?

10%

12%

13%

14%

20%

68%

64%

58%

57%

56%

48%

41%

35%

34%

29%

Compare prices

View images of car exterior

General research about make of car

Read vehicle reviews

Compare makes/models of cars

View images of car interior

Research details about vehicle spec

Research insurance options

Find a dealership

Research special offers/discounts

Order a brochure

Customise a vehicle

Vehicle financing

Dealership quote

Book a test drive


How useful were the activities?

39%

41%

63%

72%

72%

78%

86%

71%

79%

75%

88%

82%

75%

71%

62%

Compare prices




Compare makes/models of cars


Research details about vehicle spec


Find a dealership

Research special offers/discounts

Order a brochure

Customise a vehicle

Vehicle financing

Dealership quote

Book a test drive

Base: All who used each activity

19%

10%

9%

6%

2%

17%

14%13%

2%3%

2%1%

Base: All considering the Internet useful to conduct activities online

Compare prices


Compare makes/models of car



Order a brochure

Dealership quote

Research vehicle spec


Find a dealership


Customise a vehicle

Price Comparison is considered the Most Useful Activity to Conduct Online

Attitudes towards the use of the internet for car purchasing

59%

19%

28%

28%

11%

9%

31%

Tend to Agree Agree Strongly

10%

18%

22%

4%

11%

19%

Tend to Disagree Disagree Strongly

The Internet has had a significant impact on the decisions I have

made about my recent vehicle purchase

In the future I would consider buying a

new car online

In the future I would consider

buying a used car online

TOTAL DISAGREE TOTAL AGREE

14%

29%

41%

37%

30%


Advantages & disadvantages of the internet

Perceived advantages of the internet

4%4%

4%

6%

7%

8%

8%

9%

10%

15%

4%

3%

3%

3%3%

Faster/Saves time

Allows price/deal/offer comparisons

Easy access to information

Easy comparsions of makes/models

No sales pressure

Breadth of information

No need to leave the house

Wider choice of vehicles available

Can acess 24/7

Easy/convenient

Cheaper

Browse at own pace

Good information source

Independent unbiased opinions

Car spec/tech details

Spontaneous mentions

Base: All car purchasers

What the car buyers said… advantages

“The main advantages are that you don’t have to spend time searching garage forecourts or

showrooms”

“It makes finding out stuff less

pressurised and less intimidating”

“I can research any car I wish without all the leg

work and annoying/pushy salesmen”

“Fast access to information, easy to

compare similar spec cars”

Perceived disadvantages of the internet

2%

2%

3%

3%

3%

4%

5%

6%

6%

18%

2%

2%

Can't see vehicle in person

Can't test drive

Can't touch/feel vehicle

Inaccurate/biased info

Can't examine car

Impersonal/ no face to face contact

Time consuming

Can't ask questions

Difficult to find relevant info

Not safe/security concerns

Out of date info

Cannot Trust Sellers

Base: All car purchasers

Spontaneous mentions:

“Can only really judge the vehicle in

the flesh”

“Its not the same as seeing the car for yourself”

“You can’t get a feel for the car, especially if it is

not new”

“It doesn’t always give a true likeness, it’s

easy to put up pictures of a better spec vehicle and to hide damage ”

What the car buyers said… disadvantages

Summary

• A third of all adults who’ve bought a car in the last 6mths, used the internet in the decision making process.

• The internet is the 3rd most popular source of information used in the car purchase decision making process. Only Car Dealers (52%) and advice from friends and family (38%) are more popular.

• The internet is the no.1 MEDIA source of information for all car buyers - beating car magazines into 2nd place.

• Nearly 7 out of 10 (68%) purchasers who used the net for car research claimed that it was extremely or very important making it the highest rated source of information

Summary

• When looking at the order that information sources were used, 57% of recent purchasers using the internet claimed it was the first source used with more than nine out of ten (91%) using it as either their first, second or third source.

• Even though some purchasers claim to have made decisions before using the internet nearly half change their mind on some aspect of their purchase following online research. Insurance, dealer, price & model seem most likely to be reconsidered

• Similarly, more than half (59%) of purchasers using the Internet agree that the Internet has had a significant impact on the decisions made about their recent purchase

Summary

• Price comparisons were the most popular activity conducted online by purchasers and were considered the most useful activity to conduct online

• Saving time, price & model comparisons, easy access and lack of sales pressure were the most commonly mentioned advantages of researching car purchases online.

the role of the internet in the car purchasing process julie forey head of research msn uk

Documents

internet slide

research slide

car purchasers

online slide

car buyers

newused car

makesmodels of car

new car