Thursday, October 2, 2008

Google warns: "Drastic shift in car buying trend pose serious threat to manufacturers."

A startling result by Google's research reveals that an alarming change in car buyer's habit will prove detrimental to their traditional selling and promoting methods. The research reveals that more and more car buyers now just visits one dealership before making their purchase. Director of Automotive at Google, Adrian Joseph said during a pre-conference "We are arguably in the midst of the biggest change in recent times within the automotive industry – a change driven by significant shifts in consumer behaviour enabled by technology and, in particular, the internet. Understanding these changes, and the opportunities they present, is key to managing business in a tough trading environment."

The research reveals that in the last 12 months, the number of car buyers who've pre-determined their purchase decision visited only one car dealer (amongst various brands) before landing their deposits had increased in twin fold to 32% of all car buyers; whereas the number of car buyers who requested a test drive before making their purchase had decreased by a shocking 50%, both dramatic figures were further magnified when we consider that its just a comparison with the prior year, further trends will definitely show an even more alarming trend change. The change was mainly due the drastic falling of the influence of traditional media, where mere 30 or 60 second ads that costs a few hundred thousands were incomparable with what online media consisting of buying guides, websites and blogs that more oftenly gave in depth coverage on car models and most importantly the verdicts and findings from these media. It became even apparent where consumers prefer 'honest' opinions rather than all-out-selling ads that were shown on TV or Radio.

This finding pose serious implications for dealerships, where a big showroom with highly paid service personnels were no longer enough in securing buyers, of which had their decisions made before they even stepped out of their homes.

1 comment:

Anonymous said...

Good... the car buyers are getting cleverer

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