Car decision purchase journey

Trends and latest insights on the luxury automotive purchase decision journey2014 summary

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An overview of the latest

insights of the car purchase

decision journey1. Time frames of the Purchase Decision Journey

2. Order of ‘places’ that influence

Timeframes of the

Purchase Decision

Journey

Automotive ‘average’

timescales for shopping are

getting shorter

Maritz ‘Car Consumer Purchase Journey’ November 2013

Autotrader ‘The Internet is making Car Shopping More Efficient’ June 2013

and spend on average only 3.75hrs in the dealership

(compared to 7.5hrs in 2011)

google.com/think

AVERAGE NUMBER OF DIGITAL SOURCES USED

7.3

8.1 8.1

<1 month research 1-3 months research 3+ months research

Time is no longer a factor

Source: Millward Brown Digital/Google Vehicle Shopper Path to Purchase Study, September 2013

RT1. Which of the following online sources, if any, did you use to look for information on cars/trucks using these types of devices? N=1591 / O7. How much time passed from when you first

started shopping to when you actually purchased a [Car Type]? N=1591

82% of purchasers are

in-market for

3 months or less

As purchasers use many online sources regardless of time in-market

6

The majority of ‘shoppers’

decide within 3 months

Google ‘Automotive Shopping Behaviour Study’ 2011

Google ‘Digital drives auto shopping’ November 2013

‘Explore’ happens between 3-2

months towards being ‘in-

market’

27 27

purchasers search to navigate to online sources

2009 2010

awareness

interest

consideration

test-drive

purchase

6 Months

share of new buyers referred to OEM sites by search

3 Months

2 Months

1 Month

1 Week

Auto Shopper Behavior Study, Google/Compete, 2011. Clickstream data, by time periods, discrete months, January 2010-December 2010.

30%

37%

42%

48%

38%

25%

37%

36%

40%

34%

search directs at least a third of traffic within 3 months of purchase


Digital resources are helpful,

irrespective of how close to

replace they are

google.com/think

AVERAGE NUMBER OF DIGITAL SOURCES USED

7.3

8.1 8.1

<1 month research 1-3 months research 3+ months research

Time is no longer a factor


RT1. Which of the following online sources, if any, did you use to look for information on cars/trucks using these types of devices? N=1591 / O7. How much time passed from when you first

started shopping to when you actually purchased a [Car Type]? N=1591

82% of purchasers are

in-market for

3 months or less

As purchasers use many online sources regardless of time in-market

6

With over 80% consumers

visiting an OEM and dealers

in their final month*

25 25

5%5%

6%7%

8%

14%

4%4%

6%7%

8%

23%

0%

5%

10%

15%

20%

25%

6 months prior 5 months prior 4 months prior 3 months prior 2 months prior Within the month of

purchase

2009 Purchasers 2010 Purchasers

dealership visitation peaked in purchase month

Dealership Site Visitation by Purchase Month (Clickstream Data; Share of Purchasers 6-Months Prior to Purchase)

Auto Shopper Behavior Study, Google/Compete, 2011. Clickstream data, January 2009-December 2010

+64%

*McKinsey Global ‘Innovating Automotive Retail’ Feb 201418 18

oem/ 3rd party visitation peaked during purchase month

OEM and 3rd Party Site Visitation by Purchase Month (Clickstream Data; Share of Purchasers 6-Months Prior to Purchase)

13%11%

17%18%

20%

34%

13%

17%

25%

21%22%

39%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

6 months prior 5 months prior 4 months prior 3 months prior 2 months prior Within the month of

purchase

OEM Sites 3rd Party Sites

Auto Shopper Behavior Study, Google/Compete, 2011. Clickstream data, January 2010-December 2010


But sometimes the process

isn’t as ‘final’ as we’d like

http://www.nielsen.com/in/en/insights/reports/2014/how-indian-consumers-navigate-the-car-buying-journey.html

Confirmed by McKinsey

McKinsey Global ‘Innovating Automotive Retail’ Feb 2014

80% new and 100% used start

their journey online*

* McKinsey Global ‘Innovating Automotive Retail’ Feb 2014

google.com/think

The research process often kicks off online


MI3. What role did each of the following advertisements play while you were shopping for cars/trucks? Please select all of the responses that apply for each type of advertisement. N=101-1,030.

25%

26%

27%

28%

28%

29%

34%

34%

34%

35%

Magazine ad

Newspaper ad

Online site ad

Email ad

Search ad

TV ad

Tablet ad

Mobile ad

Video ad

Direct mail

AD TYPES THAT PROMPTED CONSUMERS TO START RESEARCHING

3 OF 5 top ad formats for

prompting research

were digital

9

With an increasing number of

digital touchpoints used for

research

Digital hugely influences ‘in

person’ action at the

dealers

google.com/think

19%

27%

35%

38%

53%

26%

32%

37%

37%

40%

43%

56%

57%

62%

69%

77%

81%

83%

59%

82%

89%

89%

Radio

Flyers & brochures

Magazines

Newspapers

TV

Auction sites

Newspaper sites

Social media

Video sites

Classified/listing sites

Online mapping tools

Regional dealer sites

Consumer review sites

Professional review sites

Third party sites

Family & friends

Salesperson

Test drive

Dealer visit

Digital plays a big role leading up to purchase

Source: Millward Brown Digital/Google Vehicle Shopper Path to Purchase Study, September 2013 RT1. Which of the following online sources, if any, did you use to look for information on cars/trucks using these types of devices? Please select all options that apply for each source. N=1,591

(2013); N=1072 (2012) / RT2. Which of the following sources, if any, did you use to look for information on cars/trucks? N=1,591 (2013); N=1072 (2012)

+20% YoY

+23% YoY

+28% YoY

In Person

Online

Offline

Dealer sites

Manufacturer sites

Search engines

8


With some consumers are

already doing the entire

journey on their mobilesMobile in particulars use has increased by 460% year

on year and is increasingly used for all stages of the

purchase decision journey

google.com/think

Shoppers turn to mobile for a variety of research & comparison activities


RT11. Which of the following, if any, did you do on your mobile device (e.g., tablet and/or mobile phone) while shopping for cars/trucks? Please select all that apply. N=715 (2013)/N=338 (2012)

29%

35%

35%

37%

37%

38%

38%

39%

39%

44%

Searched dealer inventory

Read auto reviews

Read car/truck features & specs

Compared vehicles

Read general car/truck info

Located dealer

Viewed current offers

Read consumer reviews

Called dealer

Viewed images of cars/trucks

MOBILE ACTIONS TAKEN WHILE SHOPPING

+47% YoY

+46% YoY

+57% YoY

11


Car decision purchase journey

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