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Car Shopping Insights: Dealership Loyalty

Jul 16, 2015

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Automotive

Media Usage and Loyalty by Age

Car Shopping insights: Loyalty to Dealership

Mudd.comWhos More Loyal?Are older car buyers or younger buyers more loyal to their dealer?Are women or men more loyal?Does media preference affect loyalty?

The answer to each of these questions isNO!There are no significant differences in dealer loyalty based on age or genderNo matter which media buyers prefer, there is no significant difference in their dealer loyaltyGood news - the majority of buyers (about 60%) consider themselves somewhat loyal and another 25% consider themselves extremely loyal

Important Buying FactorsAcross the board, price and the salesperson influence buying the mostAs buyers age, price is the only factor that does not trend upwardThe salesperson, location, future service, and availability all become more importantFor buyers 25 and under, 50% consider location an important factorFor buyers age 55+, 70% consider location importantUsing mobile marketing? Price is a great messageOlder customers take less time to consider a purchaseSouthern customers are more concerned with decision-making factors like location than Midwest customersResponders with no prior experience at this business consider all factors important

Selling Used Cars?Target younger peopleBuyers under 25 are twice as likely to buy a used car as age 55+ buyersMarket onlineSmart phone penetration is still much higher for younger buyersDifferent aged buyers consult different web sites18-34 index high on AutoTrader and Cars.com55+ index high on KBB and EdmundsFemales make up 45% of the survey responders, but only 30% of the visitors to EBayMotors.com

These metrics do not show any surprisesThe younger the buyer, the more likely they are to buy a used car as opposed to a new oneLoyalty crosses all age demographicsMedia Usage and Loyalty by AgeBoth male and female consumers listen to radio news and/or watch TV news than reading trade papers.There is not much difference in the use of smart phoneMedia Usage and Loyalty by GenderNo significant difference in media usage or loyalty for consumers that bought cars in the past 12 months.Media Usage and Loyalty by purchase/ lease timeframeSmart phone users seem to prefer TV news in comparison to radio news.No significant difference in loyalty.Media Usage and Loyalty by smart phone usersNon-radio users seem to be marginally more loyal than radio users.Media Usage and Loyalty by radio usersTV news viewers seem to prefer used cars a little more than non-viewers.Media Usage and Loyalty by TV NewsViewersSimilarly, Trade magazine readers seem to prefer used cars a little more than non-readers.

Media Usage and Loyalty by Newspaper/Trade Magazine ReadersPrice and the salesperson influence the purchase the most no matter what age groupLocation is more important as patrons agePrice is the only factor that does not trend up with age it trends downScore is calculated by taking the sum of the top 2 boxes (4 and 5) and subtracting the sum of the bottom two boxes (1 and 2)

Factor Score by AgeWhile price is the most important factor for smart phone users, future service is the 2nd most important factor.Score is calculated by taking the sum of the top 2 boxes (4 and 5) and subtracting the sum of the bottom two boxes (1 and 2)

Factor Score by Smartphone users73% of Smartphone owners consider Location an important factor in buying. 69% of non-smartphone users consider Location importantFuture service seem to influence female consumers a little more than their male counterparts.Score is calculated by taking the sum of the top 2 boxes (4 and 5) and subtracting the sum of the bottom two boxes (1 and 2)

Factor Score by GenderThere is a correlation between responders stating they are loyal and their repeat purchase activityMore responders who said they are extremely loyal had purchased from the dealer before than had notFewer responders who said they are not loyal had purchased from the dealer before than had not

Loyalty:What they say and what they do65+ responders have highest stated extreme loyalty compared to other age groups.

Loyalty:What they say and what they doThere is no difference between genders on stated loyalty

Loyalty:What they say and what they doResponders that have purchased in the 12+ months time frame have highest stated loyalty.

Loyalty:What they say and what they doThe higher the monthly payment, the more likely responders are to have a smart phoneOther relationships (trade paper, radio, TV news) do not have a significant correlation

Monthly Payment LevelNot surprisingly, the older consumers seem to have higher monthly payments.Similarly, male consumers seem to have higher monthly payments than female consumers.

Monthly Payment LevelNo significant correlation between media habits and monthly payment amounts.

Monthly Payment Levelurl16-2425-3435-4445-5455-6465+Total MentionsAutoTrader.com 164 126 97 83 59 52 11,411 Edmunds.com 47 86 110 109 121 129 8,740 KBB.com 82 92 100 103 115 121 8,243 Cars.com 141 125 100 85 66 63 8,106 Honda.com 89 96 102 102 110 89 5,649 Toyota.com 89 91 100 108 116 85 5,528 Lexus.com 30 73 94 121 153 151 3,203 Ford.com 84 89 102 115 102 110 2,955 Carmax.com 137 119 100 84 78 67 2,907 ConsumerReports.org 44 81 104 112 130 146 2,762 Yahoo.com 116 107 105 97 86 68 2,477 Chevrolet.com 94 99 103 96 103 109 2,440 Google.com 138 94 89 93 102 123 2,360 Hyundai.com 84 78 90 109 127 166 2,030 Nissan.com 94 111 102 105 84 78 1,949 Kia.com 102 89 98 110 104 99 1,906 EBayMotors.com 156 111 99 89 75 50 1,656 Dodge.com 88 115 119 88 75 98 1,385 Vehix.com 166 99 92 96 92 39 1,219 Acura.com 74 75 100 103 123 199 1,098 Due to buying more used cars, younger buyers are more likely to shop buying sitesOlder buyers are more likely to consult the auto brand sitesOlder buyer are more likely to consult the old guard sites: ConsumerReports.org, Edmunds.com, and KBB.comAutoTrader.com is by far the most popular web siteYounger customers consult car buying sitesWomen overindex on Kia, Honda, Carmax, Nissan, Hyundai, and Toyota brand sitesMen overindex on the car buying sites, like Ebay Motors, AutoTrader, and Cars.comFemales are more likely to visit auto brand sites28% of 16-34 year old customers made a decision within one month, while 38% of 65+ customers made a decision within one monthOlder customers take less time to consider a purchaseStatePRICESALESPERSONAVAILABILITYFUTURE SERVICELOCATIONIL 99 93 98 95 92 FL 105 104 109 108 112 IN 99 99 94 91 93 IA 96 93 93 89 90 CA 99 97 99 113 104 MI 97 88 83 81 74 OK 97 110 105 101 105 TN 103 107 112 102 102 PA 101 99

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