J.D. Power and Associates Reports on Automotive Shopping - From Showroom to Cyberspace
20 August 1997
J.D. Power and Associates Reports on Automotive Shopping - From Showroom to Cyberspace
AGOURA HILLS, Calif., Aug. 20 -- Close to 3 million new
vehicle buyers will use a shopping service to help them shop for a new vehicle
this year, a number that has almost doubled over the past few years, according
to the J.D. Power and Associates 1997 Alternative Shopping Services Study:
From Showroom to Cyberspace(SM).
The report shows that about half of new vehicle buyers who use shopping
services do so via the Internet. Auto-By-Tel as well as manufacturer-
sponsored web sites are part of these Internet services. J.D. Power and
Associates expects this part of the market to grow even more with new
entrants, like Microsoft's CarPoint; increasing dealer participation; and
improved Internet and dealer service.
"This is a significant finding because it shows consumers have quickly
turned away from shopping only at dealerships as Internet sources have become
available," said Jon Osborn, manager of auto sales research at J.D. Power and
Associates. "For years only 11 percent of new vehicle buyers had turned to
sources other than dealers for vehicle shopping assistance, now more than 20
percent are using shopping services. This is just the beginning of vehicle
shopping outside of the showroom."
The study also found those shopping through alternative sources are mostly
considering four or more makes and were disenchanted with their past dealer
purchase experience. They are using these alternative services to help them
narrow down their list and make an educated, value-conscious decision.
The profile of the shopper using these services is distinctive:
* Younger than the traditional dealer shopper
* Higher income than dealer shoppers
* Buy European nameplates 1.5 times as often
* Less satisfied with prior purchase experience at a dealership
* Consider a larger number of nameplates
"New vehicle buyers that are considering multiple makes are prime
candidates for these new shopping methods," commented Mr. Osborn. "We believe
more multi-make shoppers will move into 'cyberspace' as they become more
familiar and more comfortable with on-line vehicle services."
J.D. Power and Associates is an international firm best known for its
marketing information services in key business sectors including market
research, forecasting, and customer satisfaction. The firm's quality and
satisfaction measurements are based on actual customer responses from more
than a million consumers annually. With its headquarters in Agoura Hills,
California, the firm also has U.S. offices in Torrance, California; Michigan;
and Connecticut. Its international locations include Japan, Korea, England,
Canada and Brazil, J.D. Power and Associates can be accessed through the World
Wide Web at http://wwwjdpower.com. Email: info@power.com.
No advertising or other promotional use can be made of the information in
this release or J.D. Power and Associates survey results without the express
prior written consent of J.D. Power and Associates.
J.D. Power and Associates
Automotive Shopping Services:
From Showroom to Cyberspace
Segments of Non-Traditional Shoppers
Electronic Pricing & Buying Services 4%
Conventional Pricing & Buying Services 8%
Shopped Both On-Line and Con?tional Pricing
Buying Services 3%
Online Shoppers 6%
SOURCE J.D. Power and Associates
