Web carbuyinginternetresearch102000

A Consumer Look AtA Consumer Look At

Dealer Web Sites:Dealer Web Sites:

A Marketing Research StudyA Marketing Research StudyWave IIWave II

Copyright © 2000, Friedman-Swift Associates. All Rights Reserved.

Conducted by:

Cyber Car & AutoMark

FRIEDMAN-SWIFT ASSOCIATES

in conjunction with

Friedman-Swift Associates (October 2000)

A Consumer Look at Dealer Web Sites:A Marketing Research Study

STUDY METHODOLOGY

• 1,439 shoppers who visited The DealerNet home page (www.dealernet.com) were surveyed in June, July and August, 2000.

• Margin of error is plus or minus 2.58%, at a 95% confidence level.

Profile of Survey Respondents

A Consumer Look At Dealer Web Sites


21%

11%14% 14%

27%

13%

0%

20%

40%

Within thenext month

One to twomonths

from now

Three to sixmonths

from now

Sevenmonths toone yearfrom now

Over a yearfrom now

Recentlymade a

purchase orlease


Timeframe of Purchase Horizon


New vs. Used Vehicle Shoppers


Shopping for both new and used vehicles

38%

Shopping fora used vehicle

24%

Shopping fora new vehicle

38%


Average: $55,4709%

23%

15%

10%8%

16%

20%

0%

20%

40%

Under $20,000

$20,000 to under $40,000

$40,000 to under $60,000

$60,000 to under $80,000

$80,000 to under $100,000

$100,000 and over

Declined to answer

Household Income Distribution



Average age: 40 years14%

37%

25%

19%

4%1%

0%

25%

50%

Under 24 years

25 - 39 years

40 - 49 years

50 - 64 years

65 years and over

Declined to answer

Age Distribution



Female47%

Male53%

Gender


Content of Dealer Web Sites



What Should a Dealer Web Site Contain?

5%

5%

4%

26%

26%

14%

69%

69%

83%

0% 20% 40% 60% 80% 100%

Quick Quoteprices/online price

quotes

MSRP & DealerInvoice pricecomparisons

Prices of vehicles ininventory

Price Information

Veryimportant

Somewhatimportant

Not at allimportant



4%21%

55%

65%

67%

74%

75%

16%

8%

6%

5%21%

27%

27%

29%

0% 20% 40% 60% 80% 100%

Lists of used car and truck inventory byvehicle

Lists of new car and truck inventory byvehicle

Pictures of new and used vehicles at thedealership

Options available on a new vehicle

Descriptions of new and used vehiclesin stock

Inventory Information

Veryimportant

Somewhatimportant

Not at allimportant




13%36%

30%

35%

45%

46%

51%

31%

28%

19%

15%40%

36%

37%

39%

0% 20% 40% 60% 80% 100%

Online credit application

Pre-qualification for financing

Loan payment estimate calculator

Extended warranty information

Online trade-in value estimatecalculator

Financing & Warranty Information

Veryimportant

Somewhatimportant

Not at allimportant






38%

38%

46%

50%

15%

15%

19%

18%

36%

40%

44%

44%

0% 20% 40% 60% 80% 100%

Links to N.A.D.A.Used Car Guide

Links to onlinepublications like

Consumer Reports

Links to KelleyBlue Book

Links to "LemonCheck" Web sites

Links to Consumer Information

Veryimportant

Somewhatimportant

Not at allimportant


39%

38%

47%

23%

33%

20%

0% 20% 40% 60% 80% 100%

Links to autoinsurance

information

Links to automanufacturers' Web

sites

Links to Other Sites

Veryimportant

Somewhatimportant

Not at allimportant




32%

37%

34%

40%

25%

17%

22%

16%

43%

45%

45%

44%

0% 20% 40% 60% 80% 100%

Service reminders e-mailed to you

Printable servicecoupons

Ability to makeservice appointments

online

Service departmenthours of operation

Parts & Service Support

Veryimportant

Somewhatimportant

Not at allimportant




12%

41%

38%

47%

50%

12%

0% 20% 40% 60% 80% 100%

Model reviews

Side-by-sidevehicle

comparisons

Vehicle Information

Veryimportant

Somewhatimportant

Not at allimportant






41%

38%

22%

27%

32%

35%

37%

35%

27%

19%

41%

46%

0% 20% 40% 60% 80% 100%

Real-time chatservices

Vehicles brought tohome/office for test

drive

Sales paperworkcompleted viaFederal Express

Interactivedirections to the

dealership

Dealer Services

Veryimportant

Somewhatimportant

Not at allimportant


40%50%50%

83%75%

51%

0%

50%

100%

Prices ofvehicles ininventory

Descriptionsof new and

used vehiclesin stock

Online trade-in valueestimatecalculator

Side by sidevehicle

comparisons

Links to"lemon

check" Websites

Servicedepartment

hours ofoperation

Very Important Ratings Linear (Very Important Ratings)


Relative Importance of Key Features


New Vehicle Configurator


When asked to gauge the importance of dealer Web sites offering the ability to specify the exact new vehicle desired, determine MSRP and Dealer Invoice prices, search for the closest match in inventory and provide an online price quote the following responses emerged:

• 78% said very important• 21% said somewhat important

• 2% said not important

Asked only of new vehicle shoppers


Where Web Sites LoseNew Vehicle Shoppers


57%

80%

84%

0% 20% 40% 60% 80% 100%

Picture of thevehicle

Options andaccessories of the

vehicle

Price of thevehicle

Percentage of shoppers who would not contact a dealership if its Web site did not contain the items mentioned


Where Web Sites LoseUsed Vehicle Shoppers


66%

73%

84%

87%

0% 20% 40% 60% 80% 100%

Picture of thevehicle

Options andaccessories of the

vehicle

Mileage of theused vehicle

Price of thevehicle

Percentage of shoppers who would not contact a dealership if its Web site did not contain the items mentioned

Price Information Sought by

Dealer Web Site Shoppers



Price Information Sought forNew Vehicles

• Ability to generate an online price quote 75%

• Dealer Invoice price 74%

• Special prices for Internet shoppers 68%

• Manufacturer’s Suggested Retail Price (MSRP) 65%

• Prices similar to those found in dealer newspaper

advertisements 41%

Sum of percents may exceed 100% due to multiple responses

Price Information Sought by Web Site Shoppers

Asked only of new vehicle shoppers


Price Information Sought forUsed Vehicles

• Kelley Blue Book prices 74%

• The ability to generate an online price quote 70%

• Special prices for Internet shoppers 66%

• N.A.D.A. Official Used Car Guide prices 65%

• Prices similar to those found in dealer newspaper

advertisements 48%


Price Information Sought by Web Site Shoppers

Asked only of used vehicle shoppers

Dealer Interactions with

Web Site Shoppers



Dealer Web site shoppers who e-mail a dealership requesting specific information about a vehicle prefer the dealer to respond

by:

Postal mail6%

Telephone6%

No preference5%

E-mail82%

Fax1%

Dealer Interactions with Web Site Shoppers

Preferred Response to Information Requests


1 to 6 hours17%

Two days19%

Three days or more

5%

One day50%

Less than 1 hour8%


Acceptable Length of Time for Dealers

to Respond to Requests


Two days13%

Three days or more15%

One day31%

Dealer never responded

15%

1 to 6 hours18%

Less than 1 hour8%


Actual Dealer Response Time

Asked only of respondents who requested information from a dealership


8%

17% 19%

5%

15%

50%

8%

18%

31%

13% 15%

0%

30%

60%

Less than 1hour

1 to 6 hours One day Two days Three daysor more

Dealernever

responded

Acceptable dealer response time Actual dealer response time


Actual Response Time Comparedto Expectations


40%

60%

Requested an online price quote

Did not request an online price quote

• Of those Web site shoppers who asked for an online price quote, 59% received one from a dealer.

• Conversely, 41% did not.


Online Price Quotes


36%47%

53%64%

0%

45%

90%

Income less than $40,000 Income greater than $80,000

Requested an online price quoteDid not request an online price quote


Online Price Quote Requestsby Household Income


43%36%

64%57%

0%

45%

90%

Male Female

Requested an online price quoteDid not request an online price quote


Online Price Quote Requests by Gender




How Online Price Quotes Will be Used

Asked of shoppers who had requested an online price quote

• To compare it to prices given by other dealerships to

see whether it is the best price available 68%

• To compare against what you can afford 58%

• To compare prices of one make of vehicle to another50%

• As a negotiating tool when you visit the dealership that

provided you with the price quote 44%

• To compare it to prices listed by an independent source

such as Kelley Blue Book or Edmunds 41%

• As a negotiating tool to get a better price at another

dealership 36%

Online Referral Services



Have used an online referral service40%

Have not used an online referral service60%


Online Referral Service Usage



Preferences Between Dealer Web Site Versus Online Referral

Service

Prefer dealer Web site

61%

Prefer online referral service39%


Research highlights can be found at:

www.friedmanswift.comSpecific questions can be addressed to:

[email protected]

Web carbuyinginternetresearch102000

Documents

dealer web site shoppers

importance of dealer

dealer invoice prices

internet shoppers

consumer look

online price quote

new vehicle configurator

prices similar