Tracking Consumer Buying Behavior in Both Mature and Emerging Markets
Explore the Cars Online 08/09 study
Thought Leadership
10th Annual Global Automotive Study: Tracking Consumer Buying Behavior in Both Mature and Emerging Markets
Read moreTracking Consumer Buying Behavior in Both Mature and Emerging Markets
Capgemini’s 10th annual Cars Online study expands the coverage of consumer buying behavior beyond traditional mature markets such as the United States and Western Europe to include several emerging markets: Brazil, Russia and India, in addition to China, which we have covered since 2004.
As these developing markets become increasingly vital for the automotive industry, companies must understand how consumer purchase patterns in these countries differ from or mirror the behavior of car buyers in established markets.
10-Year Review: What a Difference a Decade Makes
During the past 10 years, Capgemini has surveyed almost 42,000 consumers across 15 countries, as well as 300 automotive Original Equipment Manufacturers (OEMs) and 2,500 dealers, which adds up to significant insight into vehicle buying behavior.
The first Cars Online report noted that 11% of respondents used the Internet to research vehicles. That number has climbed over the decade, reaching 88% this year. This growing consumer usage of the Internet as a research tool has had a profound impact on the power dynamics in the automotive industry.
A decade ago, the balance of power in the vehicle buying process lay squarely with dealers and manufacturers. They had the knowledge and information that consumers lacked, giving them an upper hand in negotiations. Today the power balance has shifted dramatically, with many consumers one step ahead of dealerships and automotive companies.
Highlights of the Study
- For the first time in the report’s history, a vehicle’s fuel economy has been found to be as important to consumers as safety and reliability, a result of rising fuel prices and increased concern about the environment.
- There are significant differences between the mature and developing markets, and also within the key emerging markets of Brazil, Russia, India and China (the BRIC nations). Manufacturers must understand these differences in buying behavior in order to maximize sales in these fast-growing markets.
- There are important implications for vehicle manufacturers that do not meet customer needs – three-quarters of respondents surveyed said they would switch from a particular brand or dealer if their needs were not met, such as receiving a speedy response to inquiries.
- People are looking more and more to complete their vehicle purchases online, which represents is a sales channel with vast potential for manufacturers.
