AUTOMOTIVE BUYER INFLUENCE STUDY
FEBRUARY 26, 2015
2015
® 2015 Cox Automotive
Today’s Presenters
Vice President Research & Market Intelligence
Cox Automotive
Senior Analyst IHS Automotive
Isabelle Helms Stephanie Brinley
MARKET OVERVIEW
2015 AUTOMOTIVE BUYER
INFLUENCE STUDY
Q&A | RAFFLE
Overview | Agenda
MARKET OVERVIEW
® 2015 Cox Automotive
More and more difficult to increase market share
Nameplates growing again, after recession eliminated brands
Consumers have a lot to learn: New landscape, new technology
New technology and powertrains increase level of complexity in vehicle selection
Highly Competitive Market
® 2015 Cox Automotive
U.S. Light Vehicle Sales
Share
2000
Share
2010
Share
2014
Share
2020
Ford 20% 15% 14% 15%
Chevrolet 15% 13% 12% 12%
Toyota 8% 13% 12% 11%
Hyundai/Kia 2% 8% 8% 8%
Honda 6% 9% 8% 8%
17.8%
15.0%
14.4% 12.7%
10.9%
9.3%
8.4%
7.9% 3.6%
17.1%
15.4%
12.9%
12.1%
12.4%
9.1%
7.6%
8.3%
5.0%
GM
16.8%
Ford
15.6%
Toyota
13.0%
Fiat Chrysler
11.0%
Other
12.6%
Honda
9.4%
Renault/
Nissan
7.6%
Hyundai
8.8%
VW
5.1%
Market Share:
Harder to Gain
a Point
©2015 IHS
® 2015 Cox Automotive
Source: IHS ©2015 IHS
U.S. Light Vehicle Sales
US Sales versus Nameplates
0
50
100
150
200
250
300
350
400
10
11
12
13
14
15
16
17
18
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
Mil
lio
ns
U
S S
ale
s
Nu
mb
er
of
Nam
ep
late
s
® 2015 Cox Automotive
Sales, Top 20 US Brands
U.S. Light Vehicle Sales
Source: IHS / ©2015 IHS
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2000 2005 2010 2015 2020
Chevrolet Ford Toyota Honda Nissan Hyundai Kia
Chrysler Jeep Volkswagen Subaru GMC Mercedes-Benz BMW
Mazda Ram Lexus Audi Buick Cadillac
® 2015 Cox Automotive
Brand 2010 2015 2020
Mercedes-Benz 16 21 24
Chevrolet 21 21 21
Nissan 18 20 19
BMW 11 19 23
Ford 21 18 20
Toyota 17 18 17
Honda 14 13 12
Hyundai 10 12 13
Audi 10 12 18
Lexus 10 11 11
Kia 12 10 12
Volkswagen 11 10 13
Cadillac 8 9 12
Infiniti 6 9 11
GMC 9 8 9
Mazda 11 8 8
Jeep 7 7 7
Dodge 11 7 3
Lincoln 7 7 8
Subaru 5 7 8
Sales Parent 2010 2015 2020
General Motors 58 44 49
Toyota 30 36 33
Volkswagen 35 36 48
Fiat 33 34 41
BMW 18 30 33
Renault/Nissan 24 29 30
Ford 33 25 28
Daimler 18 22 25
Hyundai 22 22 25
Honda 20 19 18
Tata (Jaguar Land Rover) 7 10 13
Mazda 11 8 8
Fuji Heavy (Subaru) 5 7 8
Geely (Volvo) 10 6 6
U.S. Nameplate Evolution
©2015 IHS
® 2015 Cox Automotive
U.S. Technology Evolution
First-Generation MyFord Touch Apple Car Play, Mercedes-Benz
SYNC III, Ford
Hyundai Genesis, Remote Start App
Cadillac CUE
Toyota Enform
BMW i3 Valet Park Audi Connect, On-Board 4G LTE
©2015 IHS
® 2015 Cox Automotive
U.S. Technology Evolution
Availability of Select Advanced Drive Assist Systems
Source: IHS / ©2015 IHS
0
50
100
150
200
250
2006
2012
® 2015 Cox Automotive
U.S. Powertrain Evolution
BMW i8
Acura NSX
General Motors 8AT
Ram 1500 EcoDiesel
Mercedes-Benz F-Cell
2015 Ford 2.7-liter EcoBoost
2012 Mustang
©2015 IHS
® 2015 Cox Automotive
A total of 2,297 buyers participated
2015 Automotive Buyer Influence Study
• 1,313 new buyers
• 984 used buyers
Representative of online and offline car buyers
Fourth year conducting this study
SHOPPER FRAME OF MIND
® 2015 Cox Automotive
New buyers more likely to purchase out of “want”
Purchased due to a need
Purchased due to a want
39%
61%
® 2015 Cox Automotive
New buyers “research” vehicles first
Set budget first
64% Research first
36%
® 2015 Cox Automotive
2 out of 3 not sure what they want
Knew Exact
Knew Make
Knew Something
Knew Nothing
Knew the exact vehicle 38%
Knew the body style but not the make or model 26%
Didn't know specific vehicle but knew vehicle class 14%
Didn't know specific vehicle but knew features 8%
Knew the vehicle make 12%
Didn't know anything when research began 3%
RESEARCHING & SHOPPING RESOURCES
® 2015 Cox Automotive
Time spent researching online has increased from 59% to 70%
2015
2011
11hrs 12min
online
7hrs 54min
offline
11hrs 38min
online
5hrs 16min
offline
16hrs 54min
Total Shopping Time
19hrs 6min
Total Shopping Time
® 2015 Cox Automotive
Internet continues to be the top source used for shopping
Internet
Referral
Television
Magazine
Newspaper
Direct Mail
Outdoor Ads
Radio
75%
23%
20%
14%
9%
9%
5%
5%
® 2015 Cox Automotive
Internet is the most effective source leading to dealer
Internet
Prior experience
with dealership
Drove by /
Walked in
Referral from
friend / family
Direct Mail
Newspaper
Outdoor Ads
Radio
Television
Magazine
37%
19%
14%
11%
2%
2%
1%
<1%
1%
1%
® 2015 Cox Automotive
Internet is the most effective source leading to dealer
Internet
Prior experience
with dealership
Drove by /
Walked in
Referral from
friend / family
Direct Mail
Newspaper
Outdoor Ads
Radio
Television
Magazine
37%
19%
14%
11%
2%
2%
1%
<1%
1%
1%
® 2015 Cox Automotive *Source: NADA 2014 Report, does not add exactly to 100% due to rounding
Dealer advertising expenditures*
5%
16%
11%
33%
21%
15%
Other
Newspaper
Radio
Television
Direct Mail
Internet
® 2015 Cox Automotive
Reasons for using Internet
Compare different
models using reviews,
options, or pictures
Research car
pricing
Find info on
special offers
Find out what
current car
is worth
62%
61%
43%
37%
Find actual vehicles
listed for sale 42%
ROLE OF WEBSITES
® 2015 Cox Automotive
Online sources used to shop
Third
Party
Sites
OEM
Sites
Dealer
Sites
Search
Sites
66%
64%
61%
46%
Usage
® 2015 Cox Automotive
66% | 30%
64% | 28%
61% | 23%
46% | 13%
Online sources used to shop
Third
Party
Sites
OEM
Sites
Dealer
Sites
Search
Sites
Usage Time Spent
® 2015 Cox Automotive
Top 3 shopping activities on third-party sites
Third-Party
Sites
Dealer
Sites
OEM
Sites
1 2 3
Research car pricing
Compare models using reviews,
options or pictures
56%
49%
Find out what your current car
is worth
48%
® 2015 Cox Automotive
Top activities on AutoTrader
1
2 3
Find actual vehicles listed for sale
Research vehicle pricing
Compare models using reviews, options or pictures
® 2015 Cox Automotive
Top 3 shopping activities on dealer sites
Third-Party
Sites
Dealer
Sites
OEM
Sites
1 2 3
Find actual vehicles for sale
Research car pricing
52%
48%
Find special offers
40%
Research car pricing
Compare different models using reviews,
options or pictures
56%
49%
Find out what your current car is worth
48%
® 2015 Cox Automotive
Top 3 shopping activities on manufacturer sites
Research car pricing
57%
42%
Find special offers
35%
Third-Party
Sites
Dealer
Sites
OEM
Sites
1 2 3
Find actual vehicles listed for sale
Research car pricing
52%
48%
Find special offers
40%
Research car pricing
Compare different models using reviews,
options or pictures
56%
49%
Find out what your current car is worth
48%
Compare models using reviews,
options or pictures
® 2015 Cox Automotive
Top 3 shopping activities across all sites
Compare models using reviews,
options or pictures
Research car pricing
57%
42%
Find special offers
35%
Third-Party
Sites
Dealer
Sites
OEM
Sites
1 2 3
Find actual vehicles listed for sale
Research car pricing
52%
48%
Find special offers
40%
Research car pricing
Compare models using reviews,
options or pictures
56%
49%
Find out what your current car
is worth
48%
® 2015 Cox Automotive
Most useful online source
37%
34%
19%
Third
Party
Sites
OEM
Sites
Dealer
Sites
33
AN OMNI-CHANNEL APPROACH
® 2015 Cox Automotive
Multi-device usage is on the rise
33% 2014
27%
2013
38%
2015
2013
2014
2015
® 2015 Cox Automotive
Tablet & smartphone use is also on the rise
93%
85%
Laptops & Desktops Tablets Phones
2014
2015
2013
19%
33%
2014
2013
2015
22%
32%
2014
2013
2015
® 2015 Cox Automotive
Mobile research is becoming more prevalent
61% Proportion of research & shopping time on mobile
(among mobile users)
® 2015 Cox Automotive
A poor mobile experience has a negative impact
47% Said it would have a
negative impact on their brand impression
® 2015 Cox Automotive
Top 3 shopping activities on all devices (per device)
Locate a Dealer
Compare Models
59%
45%
Research Pricing
41%
71%
61%
51%
Compare Models
Research Pricing
82%
70%
Find Special Offers
63%
Compare Models
Research Pricing
Find Special Offers
1 2 3
CLOSING THE DEAL
® 2015 Cox Automotive
purchased model they had in mind
prior to dealership visit
Opportunity to influence is online
77%
® 2015 Cox Automotive
Closing thoughts
Auto market is increasingly competitive, market share more difficult to increase
Consumers have much broader level of choice than ever before, and receiving information from a greater variety of sources
Understanding how, when and where to reach the customer is increasingly critical
Provide meaningful content that’s always available to shoppers whenever, wherever and however they want it
You can’t close the deal if you can’t get the customer in the door
Q&A RAFFLE
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Raffle Sonos PLAY:5
® 2015 Cox Automotive
Q&A