Transcript THE ROLE OF INTERACTIVE MEDIA IN THE LOCAL

LOCAL AUTOMOTIVE
DEALERSHIPS
THE ROLE OF INTERACTIVE MEDIA IN THE
LOCAL CAR SHOPPING PROCESS
Yahoo! Search Marketing Proprietary and Confidential. © 2007. All Rights Reserved.
1
How Consumers “Pre-Shop” for a
Dealership
2
Engaging Consumers Before They
Set Foot on Your Lot
3
How Consumers Use Search When
Pre-Shopping
4
The Impact of Price Quotes
5
Connecting with Your Most
Important Consumer
6
Executive Summary & Implications
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OBJECTIVES
• To understand how the dealership
research process has changed over time
• To understand the impact of search in
the overall media mix for automotive
dealership research
• To identify which resources consumers
are using and whether their research is
fruitful
• To determine which resources are most
important to the decision making process
• To identify the most valuable consumers
auto dealerships should engage
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METHODOLOGY
Methodology
25 minute online questionnaire
Interview Dates
May
30th
to June
4th
2007
Sample Size
N = 550 Respondents
• Next 6 Month Auto
Purchase Intenders (262)
• Past 3 Month Auto
Purchasers (288)
Sample Characteristics
• Live in major metropolitan areas
• Primary/shared auto purchase decision
maker
• Visited at least one dealership
• Exclude specialty brands
• Critical industry screen
(Advertising/Market Research,
Automotive sales/products/services,
Internet service provider/website portal)
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HOW CONSUMERS
“PRE-SHOP”
FOR A DEALERSHIP
4
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The majority of
consumers spend
more than a week
pre-shopping for
dealerships before
they step foot on
your lot
How long did you research before you
started dealership visits?
34%
23%
None
A week or less
More than a week but less than a month
12%
1-2 months
3-6 months
Over 6 months
4%
19%
8%
5
Base:
Q8
Total Respondents (550)
About how long did you research vehicles on your own before you started visiting dealerships?
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…with the
majority
researching
online & using
search for
vehicle
dealership
research
Base:
Q4
QS10
Q0
88%
Did research before
walking into a
dealership
83%
Used the Internet to
research vehicles
79%
Used Search to research
auto dealerships
Total Respondents (550)
When researching auto dealerships, which of these online search engines did you use to obtain
information? (Please select all that apply.)
Which of the following resources ‘did you use to gather information while shopping for your new
vehicle?’ OR ‘are you using to gather information while shopping for your new vehicle?’
You mentioned that you used the resources shown below to research and shop for new vehicles.
How did you reach each of these websites?
6
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Consumers proactively pre-shop dealerships online
before their actual visit…
Did you do any of the following before actually visiting
the dealership? (Select all that apply)
Viewed cars/models available at the
dealerships online
48%
37%
See if they had a dealership website
23%
Find reviews about the dealership online
Called to see what cars/models were
available
20%
Checked newspaper classifieds to try to
12%
find more information on the dealership
Used the yellow pages to look for the
11%
dealership
Base:
Q14
Total Respondents (550)
Thinking about the last dealership you visited, did you do any of the following before actually visiting
the dealership?
7
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Compared to my last vehicle purchase (2002
on avg), I rely on these sources more…
Social networking
tools
…in fact, they
rely more on the
Internet today in
helping them find
the right dealer
41%
E-mails from
dealership
Dealership sites
Manufacturer sites
30%
25%
23%
Search engines 16%
Independent vehicle
sites 16%
Base:
Q17
Q19
Total Respondents (550); Purchased a new vehicle prior to 2007 (492); Relied less on resources during
last purchase: Social networking tools (37); E-mails from dealership (107); Dealership sites (171);
Manufacturer sites (168); Search engines (184); Independent vehicle sites (117)
Prior to 2007, when was the last time you were in market to purchase or lease a brand new vehicle?
Compared to your [INSERT THE YEAR ENTERED AT Q14] vehicle purchase, please tell us whether you
relied on the following in helping you find dealerships to visit, the same amount, or less compared to
your 2007 vehicle research experience. [… relied on more]
8
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Consumers visit an
average of 6
dealerships, but
tend to shop for
only one brand per
dealership
Base:
QS6
QS7
Total Respondents (550); Those Responding
Please select the statement that best describes your consideration of each make listed below.
How many dealerships did you visit for each make?
9
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… a third of
consumers will
drive more than
20 miles from
home
How far away were each of the
dealerships you visited?
68% of consumers are
not willing to travel
more than 20 miles
32% of consumers are
willing to travel farther
than 20 miles
Base:
*
QS8
Total Respondents (546)*
Don’t know responses removed
Again thinking about the dealerships you visited, think about how far each dealership was from your
home. In miles, please tell us the distance between your home and the farthest dealership you
visited for each make.
10
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How far away were each of the
dealerships you visited?
21% of total visits
are over 20 miles
from their homes
79% of consumer visits
are within 20 miles of
their home
21% of consumer visits
are over 20 miles of
their home
Base:
QS8
Total Respondents (546)
Again thinking about the dealerships you visited, think about how far each dealership was from your
home. In miles, please tell us the distance between your home and the farthest dealership you
visited for each make.
11
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ENGAGING CONSUMERS
BEFORE THEY SET FOOT
ON YOUR LOT
12
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Search is one of the top sources used to become
aware and locate car dealerships
How do consumers find and choose which dealerships
to visit? (Choose from a list of 18 sources)
Made me AWARE of dealerships
Helped me LOCATE the dealerships
67% 64%
40%
30%
Driven by
or seen
before
Friends &
Family
36%
30%
Search
engines
Base:
Total Respondents (550)
Q1a-Q1d Thinking about dealerships you’ve visited, which of the following… made you aware of the
dealerships?/helped you locate the dealerships?
31%
26%
Dealer
websites
29%
29%
20%
OEM
websites
20%
TV ads
19% 21%
Yellow
Pages
13
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Online sources are critical throughout the dealership
purchase funnel
I used the following online sources to…
Learn about vehicle
makes/models
SEARCH
ENGINES
DEALERSHIP
WEBSITES
OEM
WEBSITES
3RD PARTY
CONTENT
SITES




Get a feel for the
dealership

Find other buyer reviews
on dealerships

Find out how many
dealers were close to
where I live




Find out dealership
inventory on cars/models I
want




Base:

Q3



Find out if dealerships had
any special offers
Look up dealership
address and contact info
SOCIAL
NETWORKING
Those Responding: Search engines (229); Dealership websites (204); Manufacturer websites (190);
OEM websites (190); Independent websites (125); Social networking tools (43)
Indicates percentage is significantly higher than the all-source average at 95% confidence
Now, thinking specifically about each of the resources you used to research dealerships, which of
the following helped you…
14
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Offline sources are less comprehensive than online
resources when offering dealership information
I used the following offline sources to…
NEWSPAPER
CLASSIFIEDS
RADIO
ADS
YELLOW
PAGES
Learn about vehicle
makes/ models
TV
ADS
MAGAZINES

Get a feel for the
dealership

Find other buyer reviews
on dealerships
Find out how many
dealers were close to
where I live
Find out if dealerships had
any special offers


Find out dealership
inventory on cars/ models
I want
Look up dealership
address and contact info
Base:

Q3
Those Responding: Newspaper inserts/classified ads (173); Radio ads (105) ; Local phone books
(147); TV Ads (177); Magazines (68)
Indicates percentage is significantly higher than the all-source average at 95% confidence
Now, thinking specifically about each of the resources you used to research dealerships, which of
the following helped you…

15
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The emergence of social networks will ultimately drive
consumers to actively participate in dealership ratings
How likely would you be to…?
Top 2 Box:
Very likely
72%
47%
58%
31%
Somewhat likely
Base:
Q7a
Q7b
26%
27%
…use a dealership
review site?
… post comments on a
dealership review site?
Total Respondents (550); Open to using a review site (543)
Now we’d like you to imagine there was a dealership review site providing customer satisfaction
ratings generated by other customers who visited or did business with the dealerships in your area.
How likely would you be to use this type of site?
And how likely would you be to post your own reviews or comments about local dealerships on this
site?
16
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HOW CONSUMERS
USE SEARCH WHEN
PRE-SHOPPING
17
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Search is the top source used to navigate to
automotive websites
How did you reach each of the websites you
used to research and shop for new vehicles?
AUTO
MANUFACTURER
WEBSITES
DEALERSHIP
WEBSITES
3RD PARTY CONTENT
WEBSITES
56%
58%
57%
Knew the website address
45%
29%
41%
Guessed the website address
36%
23%
19%
From an independent vehicle help
website
22%
21%
-
Got the web address from an
advertisement
21%
27%
19%
Clicked on Internet display
advertising
16%
18%
18%
Used an e-mail link
13%
23%
18%
-
40%
23%
Used a search engine
From an auto manufacturer website
Base:
Q0
Used Source: Auto Manufacturer Websites (285); Dealership Websites (270); Independent Vehicle
Help Websites (214)
You mentioned that you used the resources shown below to research and shop for new vehicles.
How did you reach each of these websites?
18
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Which of the following resources
helped you…?
SEARCH ENGINES
Search is the desired
research tool for
identifying, locating,
and reviewing
dealerships
Find out how many dealers
were close to where I live
49%
Look up dealership address
and contact info
49%
Learn about vehicle
makes/models
Find other buyer reviews on
dealerships
Find out dealership inventory
on cars/models I want
Find out if dealerships had any
special offers
Get a feel for the dealership
Base:
Q3
47%
Those Responding: Search Engines (229)
Now, thinking specifically about each of the resources you used to research dealerships, which of
the following helped you…
43%
33%
29%
21%
19
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Consumers use a variety of search strategies to find
auto dealerships
What types of keywords did you use
when looking for a dealer?
Make and/or model I
was interested in
City and/or state
Zip code
Specific dealership
name
General automotive
keywords
Base:
Q5
70%
44%
44%
43%
29%
Used a Search Engine to Shop for Dealerships (433)
Thinking about all the search engine queries you made to try to find auto dealerships, what types of
keywords did you enter into the search engines to generate results?
MM & city
and/or state
34%
MM & zip code
32%
MM & specific
dealership
name
29%
MM & general
keywords
21%
MM [Only]
17%
20
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Searchers cross shop heavily and are willing to go out
of their way to find dealerships
Searcher vs. Non Searcher - Differences
SEARCHERS
(79% of car shoppers)
NON-SEARCHERS
(21% of car shoppers)
7
3
35%
18%
Average number of sources used to find
and locate dealerships
6
3
Average number of price quotes
requested
3
1
# Dealerships visited (total)
Willing to drive over 20 miles to visit a
dealership
Base:
o/
QS7
QS8
Searchers (433); Non-Searcher (117)
Indicates percentage is significantly higher/lower than Non-Searchers at 95% confidence
How many dealerships did you visit for each make?
Again thinking about the dealerships you visited, think about how far each dealership was from your
home. In miles, please tell us the distance between your home and the farthest dealership you
visited for each make.
Q1a/Q1b/Q1c/Q1d Thinking about dealerships you’ve visited, which of the following… made you aware of
the dealerships?/helped you locate the dealerships?
Q11
How many requests for price quotes did you submit on the Internet? Your best guess is fine.
21
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THE IMPACT OF
PRICE QUOTES
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Consumers frequently submit their quotes on
dealership websites
Did you submit any requests for
prices quotes on the internet?
What types of sites did you use to
submit your price quote?
Dealership
websites
DID NOT
GET A
QUOTE
63%
67%
3rd Party Content
Portals
42%
Auto manufacturer
websites
GOT A QUOTE
Other
Base:
Q11
Q12
Total (550); Submitted a price quote (346)
How many requests for price quotes did you submit on the Internet?
What kind of site(s) did you use to submit your price quote?
36%
5%
23
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Dealerships need to proactively service and answer
questions in order to convince a consumer to visit
Actions done to convince you to visit dealership…
(Among Those Who Submitted a Quote and Visited a
Dealership)
59%
Received an email
53%
Answered all of my questions
50%
Offered me a competitive price
29%
Offered competitive amount for my trade-in
Received direct mail
Did not proactively contact me
Base:
Q15
Visited a dealership to which submitted price quote (231)
Earlier, you said a visited a dealership from which you submitted a price quote to. Thinking about
that visit, which of the following best describes the actions taken by the dealership staff to get you to
visit? (Please select all that apply.)
22%
5%
24
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Among those that chose not to visit, price and
location are barriers to dealership visits
Why didn't you visit?
PRICE (NET)
Too expensive
Better deal elsewhere
LOCATION (NET)
32%
DIDN'T VISIT
Too far/not in my area
Prefer to buy from local dealership
SELECTION (NET)
Wanted other type of vehicle
BOUGHT FROM ANOTHER DEALERSHIP
NO RESPONSE FROM DEALER
‘’
“They did not respond in a
timely manner.”
Base:
Q13b
‘’ ‘’
“Took too long to
respond… I bought
within 72 hours.”
Did not visit a dealership to which submitted a price quote (95)
You mentioned that you did not visit any of the dealerships to which you submitted price quotes.
Why did you not visit any of those dealerships?
26%
21%
5%
20%
16%
7%
5%
4%
5%
5%
“Because they never sent
me a quote.”
25
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CONNECTING WITH YOUR
MOST IMPORTANT CONSUMER
26
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I GO OUT OF MY WAY TO
RECOMMEND GOOD PRODUCTS
AND BRANDS TO MY FRIENDS AND
FAMILY
I AM A NATURAL LEADER;
PEOPLE ALWAYS LISTEN TO MY
OPINIONS
I TEND TO BE ONE OF THE FIRST
AMONG MY FRIENDS TO TRY
NEW PRODUCTS
OTHERS LOOK TO
ME FOR ADVICE
WHEN IT COMES TO
TECHNOLOGY
A GOOD
BRAND IS
WORTH
TALKING
ABOUT
I CONSIDER
MYSELF SOCIAL
AND WELLCONNECTED
OF THE
POPULATION
What makes a
brand advocate?
I OFTEN TELL FRIENDS
ABOUT PRODUCTS THAT
INTEREST ME
27
SOURCE: Y! Study |December 2006
"Engaging Advocates through Search & Social Media" - Consumer Electronics
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Why Advocates Should Be Important to You

Advocates are more open to
influence, considering more brands
prior to making an auto purchase

They come out of the buying process
more satisfied with their purchases leading to longer lifetime value

Half of these advocates write about
their purchases online, with a
significant majority writing something
positive (90%)

Advocates convert their friends to buy
the same auto make & brand they've
purchased at a 2 to 1 ratio versus a
normal consumer
28
SOURCE: Y! Study |December 2006
"Engaging Advocates through Search & Social Media" - Consumer Electronics
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Advocates are much heavier researchers and
leverage online sources significantly more
Brand Advocate vs. Non Brand Advocate - Differences
BRAND
ADVOCATES
NON-BRAND
ADVOCATES
Average number of sources used to find
and locate dealerships
7
5
Average number of sources used to
research vehicles
6
4
Used a search engine when shopping for
dealership
85%
76%
Used an independent website when
shopping for a dealership
28%
20%
Used an independent website when
shopping for the actual vehicle
43%
37%
Base:
Brand Advocates (180); Non-Brand Advocates (370)
Q1a-Q1d Thinking about dealerships you’ve visited, which of the following… made you aware of the
dealerships?/helped you locate the dealerships?
Q4
When researching auto dealerships, which of these online search engines did you use to obtain
information? (Please select all that apply.)
QS10
Which of the following resources ‘did you use to gather information while shopping for your new
vehicle?’ OR ‘are you using to gather information while shopping for your new vehicle?’
o/
Indicates percentage is significantly higher/lower than Non Brand Advocates at 95% confidence
29
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Advocates are significantly more likely to use or post
on potential dealership review sites
How likely would you be to use a
dealership review site?
Top 2 Box:
How likely would you be to post
comments on a dealership review
site?
82%
Top 2 Box:
70%
68%
51%
Very likely
61%
46%
40%
23%
Somewhat likely
21%
Brand
Advocates
Base:
Q7a
Base:
Q7b
o/
28%
24%
28%
Non-Brand
Advocates
Brand
Advocates
Non-Brand
Advocates
Brand Advocates (180); Non-Brand Advocates (370)
Now we’d like you to imagine there was a dealership review site providing customer satisfaction
ratings generated by other customers who visited or did business with the dealerships in your area.
How likely would you be to use this type of site?
Open to using a dealership review site (Brand Advocates/Non-Brand Advocates) (178/365)
And how likely would you be to post your own reviews or comments about local dealerships on this
site?
Indicates percentage is significantly higher/lower than Brand Advocates at 95% confidence
30
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Have you referred any friends or family
to a specific dealership before?
Brand Advocates
are +50% more
likely to
recommend
dealerships to
friends and family…
60%
41%
Brand Advocates
Base:
o/
Q20
Brand Advocates (180); Non-Brand Advocates (370)
Indicates percentage is significantly higher/lower than Brand Advocates at 95% confidence
Have you referred any friends or family members to a specific dealership before?
Non-Brand Advocates
31
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After you told your friends and family
about the dealership, what did they do?
… and as a result
of W-O-M, their
friends will visit
and more likely
purchase from
these dealers
Base:
o/
Q22
46%
28%
Visited the dealership
26%
Purchased a vehicle
from the dealership
Plan on visiting soon
34%
19%
10%
10%
27%
Brand
Advocates
Non-Brand
Advocates
Don't Know
(Brand Advocates/Non-Brand Advocates) Recommended a dealership: (107/150)
Indicates percentage is significantly higher/lower than Brand Advocates at 95% confidence
And after you told your friends or family members about the dealership, did they do any of the
following?
32
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Implications for Marketers
33
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Implications
1. Customers are now viewing the dealership website as an
extension of the showroom, and as such dealers need to provide
a top quality online experience to generate new car sales
2. 4 in 5 new car shoppers use search to find and research
dealerships, which creates a huge opportunity for marketers
seeking to target customers low in the purchase funnel
3. Dealership and brand loyalty declining as consideration sets for
both are growing
4. Dealers can extend their footprint by marketing online, as search
users are significantly more willing to travel long distances to visit
dealerships
5. Dealership reputation is becoming increasingly important as
customers have the tools and inclination to affect that reputation
through social media outlets
34
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THANK
YOU
QUESTIONS?
contact [email protected]
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