DealerRefresh

Obstacles, Observations and Opinions of an Automotive Internet Sales & Marketing Manager

  • Blog
  • Forum
  • Sponsors
  • Home
  • About
    • Contact
  • Jobs
  • Newsletter
  • Archives
  • Advertise
  • Marketing
  • Lead Sources
  • Mobile
  • Social Media
  • Video
  • Reputation
  • Dealer Forums
  • Tech & Tools
  • News

September 26 by Jeff Kershner -

Shoppers Cite Dealer-Related Issues Among Top Reasons for Rejecting a New Vehicle – J.D. Power and Associates Reports

Jdpa
WESTLAKE VILLAGE, Calif., Sept. 24, 2008 – A majority of vehicles are rejected only after a new-vehicle shopper has visited a dealership, according to the J.D. Power and Associates 2008 Escaped Shopper Study(SM) released today.

The study, which analyzes the reasons why consumers consider a model but ultimately purchase a different make or model, finds that 80 percent of vehicles are rejected after a new-vehicle shopper has visited a dealership. Three dealer-related issues are among the top reasons for not purchasing a vehicle: another dealer has better service; limited availability of the specific vehicle shoppers are looking for on dealer lots; and lack of professionalism among personnel at the dealership.

“Given today’s challenging automotive market, both sales and service experiences at the dealership are particularly critical in the decision-making process of shoppers,” said Tom Gauer, senior director of automotive retail research at J.D. Power and Associates. “Sales personnel can play a key role in improving close rates by viewing customer visits as an opportunity to demonstrate a vehicle’s value and by successfully matching shoppers with the new vehicle that best suits their needs.”

The study also finds that an increasing number of shoppers have considered buying an Asian brand — 63 percent in 2008, up from 60 percent in 2007. Conversely, the proportion of shoppers who considered buying a domestic brand has decreased — down to 55 percent in 2008 from 58 percent in 2007. Shoppers who cross-shop among Asian and domestic brands are more likely to purchase an Asian brand and most often cite retained value, reliability and gas mileage as primary reasons for their choice. In contrast, those customers who purchase a domestic brand instead of an Asian brand most commonly cite a desire to “buy American” as their primary reason for purchase, followed by rebates and incentives offered, and vehicle price.

“As shoppers move away from larger-vehicle segments in growing numbers, domestic manufacturers — more so than Asian and European manufacturers — must focus on rapidly aligning their U.S. product portfolios with this shift in consumer preferences,” said Gauer.

The percentage of shoppers who cite gas mileage as a reason for rejecting a vehicle has increased in 2008-up to nearly 20 percent this year from nearly 17 percent in 2007. Unsatisfactory gas mileage is the third-most-common reason to reject a vehicle, with particularly high rates of rejection in the large, midsize and compact utility vehicle segments.

Nearly 40 percent of all new-vehicle shoppers cite price as the most influential reason for not purchasing a vehicle. Additionally, nearly one-half of shoppers 40 years of age and younger reject vehicles based on price- or finance-related issues. In contrast, only one in three shoppers who are 60 years of age or older reject vehicles for the same reasons.

“Interestingly, nearly 40 percent of all shoppers who reject a vehicle because of price say they can afford the vehicle, but don’t believe the vehicle is worth the price,” said Gauer. “This presents an opportunity for dealership personnel to focus on demonstrating the different features contributing to the vehicle’s total value to these shoppers, which can eventually lead to increases in close rates.”

The 2008 Escaped Shopper Study is based on responses from 29,903 new-vehicle buyers surveyed between May and July 2008.

Categories: Latest News & Trends

Premium Sponsor

RSS Join the latest discussions in the DealerRefresh Forums

  • Best FCA Certified Digital SEM Vendor Near Me?
    Starting in May of this year, off-program paid search providers will no longer be PAP eligible under the FCA program. My question is - Who is the best FCA Certified vendor if we decide to switch and why? Why is it... Best FCA Certified Digital SEM Vendor Near Me?
  • It's Customer Valuation, not Attribution
    Marketing attribution has been a hot topic for several years now, especially with the increasing availability of technology and metrics that can show marketers almost every step in a customer’s journey. Greater and deeper visibility into these touchpoints has... It's Customer Valuation, not Attribution
  • Anyone use Facebook ads and have had success?
    I've used FB ads once and did not go too bad but I know I can do better that's for sure.. A lot of testing and tweaking How about you guys? How's your FB ads going?
  • Unique Opportunity with startup company
    Looking in the Austin, TX area for someone familiar with automotive dealerships and management. This is a commissioned outside sales job with a base salary and car allowance. Also, need detail-oriented individual for account management. www.nuvinair.com... Unique Opportunity with startup company
  • Digital Retailing - do you?
    Do you have a digital retailing solution in your website or process? Something like Roadster, Dealer Science, Cox's Accelerate (or whatever they call it), Dealer Inspire's Online Shopper, etc. I know I'm missing at least 8 others.... Digital Retailing - do you?
  • Digital Retailing - What are your results?
    *If there is a thread out there that is similar to this please send me the link* Not looking to get into a long draw out discussion about Digital Retailing (DR). I personally think it scares your customers away but that is just my stubborn self. All I really want to know is five things […]
  • Calling all ladies in Automotive!
    Calling all ladies in Automotive! We want to hear from you!! View attachment 4068 Dealer Authority will be hosting an all-female, Facebook Live round table March 19th | 3PM and we want to include you!!​ This is an open call to the automotive industry....​ Calling all ladies in Automotive!

Editors

  • Jeff Kershner

    Jeff Kershner

    I’m the founder of DealerRefresh. I got my start in the dealer business when I was 18. From there I've worked throughout several departments within fixed to variable ops. Whether it’s managing the desk, perfecting sales process or studying online marketing and media trends, I absolutely love this business and the challenges it brings. On top of keeping up with DealerRefresh, I consult with dealerships and key industry businesses. My passion has been and continues to be helping dealers leverage new media to sell and improve customer service.
  • Alex Snyder

    Alex Snyder

    2019 marks Alex's 30th year in the car business. In that time he has had a front-row seat for the rise of the Internet and has been working to bring the online and offline dealership experience closer. Whether you knew him from his life at Checkered Flag or his years with Dealer.com/DealerTrack/Cox Alex has remained an opinionated DealerRefresh contributor who enjoys nothing more than to poke at the unsaid truths in our industry. He also helped found FRIKINtech.

Our Sponsers

Contributors

  • Steve Stauning

    Steve Stauning

  • Joe Webb

    Joe Webb

  • Kevin Frye

    Kevin Frye

  • Eric Miltsch

    Eric Miltsch

  • Matt Murray

    Matt Murray

  • Ilana Zur

    Ilana Zur

  • Adam Robinson

    Adam Robinson

  • Joe Pistell

    Joe Pistell

  • Todd Smith

    Todd Smith

Copyright ©2019 · DealerRefresh - All Rights Reserved · Website by ForumCube

  • Blog
    • Advertise
    • Automotive Industry Job Board
    • Archives
    • Contact
    • About
  • Forum
  • Affiliates