6 5 15 FINAL IIeX Doyle Research Presentation QRCA Track

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ì!KICKING  THE  TIRES  THE  AUTOMOTIVE  PATH  TO  PURCHASE  

ALICE MORGAN!DOYLE RESEARCH ASSOCIATES!

Goals  

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Understand actions at the dealership that influence consumer perceptions 1 Define key experiences that lead to engagement or kill the opportunity 2 Identify what car shoppers want in a retail experience 3

Approach  

ì  Webcam  interviews  (6)  

ì  In-­‐home  ethnographies  (18)  

ì  Geo-­‐Stories℠  (18)  

ì  Dealership  shopalongs  (6)  

ì  Online  survey  (1,300)  

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Geo-­‐Stories℠  

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Real-time, geo-validated phone interviews conducted at the moment of product experience

Geo-­‐Stories℠  

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Roadblocks  

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Communication

BREAKDOWN

Great

EXPECTATIONS

A Serious Lack of

TRUST

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GREAT

EXPECTATIONS

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New Car Buyers Seek: •  Convenience •  Fairness •  Control •  Autonomy

Great  Expectations  

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COMMUNICATION

BREAKDOWN

…of cases, shoppers’ first interaction with a dealership is walking on the lot

Communication  Breakdown  

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61%!

Communication  Breakdown  

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Vehicle!Research!

Preferred!Dealership!

Communication!

STUCK IN NEUTRAL Vehicle Purchase Phases!

Dealership !Comm.!

Dealership!Visit!

Inventory!Exploration!

Communication  Breakdown  

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Dealership Websites •  Confusing •  Cluttered •  Intrusive •  Not credible

Communication  Breakdown  

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Give Me Space •  Shoppers circumvent phone

contact •  Wary of salespeople on the lot •  No self-guided channel exists

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Serious lack of

TRUST

Lack  of  Trust  

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What Heightens Suspicion •  Not asking about my needs!•  Failing to post prices!•  Requiring personal financial

information up-front!•  Lengthy back-and-forth negotiations!

Lack  of  Trust  

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TOO LITTLE TOO LATE •  New car buyers avoid

interacting with the dealership until late in the process

•  Buying a car from someone they just met/don’t trust further tarnishes the industry

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56%!...of car shoppers said they would buy a vehicle more often if the process was not so difficult.

Ripe  for  Disruption?  

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①  Complacent from past success!②  Lost touch with their customers!③  Don’t take new entrants seriously!④  Out-of-date business model!

CAR DEALERSHIPS

Moving  Forward  

Dealerships working to improve the car-buying experience ì  SONIC AUTOMOTIVE: shoppers get a new car in 90 minutes,

no haggling, technology facilitates a self shopping experience

ì  SUBURU OF WICHITA: non-commissioned salespeople, “no gimmicks” pricing

ì  AUTONATION: launching a completely online sales channel

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Alice  Morgan  312.863.7615  Twi9er:  AliceJMorgan  amorgan@doyleresearch.com  

 Doyle  Research  Associates,  Inc.  20  N.  Wacker  Drive,  Suite  2027  Chicago,  IL  60606  

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