Nearly 45 per cent of buyers of recently launched vehicle models tend to evaluate
at least one other new-vehicle model during the shopping process more frequently
than buyers of new models (37 per cent) that have been on the market for two or
more years, according to the J D Power Asia, in its report titled, Pacific 2007
India Escaped Shopper Study.
study analyses the reasons why new-vehicle shoppers consider, but ultimately reject,
certain models in favour of another and identifies a possible 48 reasons why shoppers
may reject a new vehicle. The study compares the shopping behaviour of two groups
of customers - buyers of recently launched models and buyers of models that have
been on the market for more than two years.
price remains a major driver for rejection, buyers of new models seek products
with better design and performance, as they reject other models mostly on these
study also finds that a higher proportion of buyers (42 per cent) in the four
metro cities of Chennai, Delhi, Kolkata and Mumbai shop around for another model
before purchasing their vehicle, while buyers in non-metro areas and other cities
are less likely to do so (33 per cent). In addition, the study finds that buyers
with higher income levels and higher education are more inclined to consider additional
models while shopping.
a third consecutive year, Maruti Suzuki performs well in persuading shoppers to
purchase the brand, with 43 per cent of its shoppers eventually purchasing a Maruti
Suzuki model. However, this figure has dropped by 8 percentage points since 2006.
The study revealed
that among the nine vehicle makes covered in the study:
buyers shop around the most before purchasing their new Hyundai car
buyers are least likely to consider another model in their shopping process
Suzuki benefits from its large model range
to Arora, the wider choice of Maruti models offers a wider choice to shoppers
and enables the brand to retain customers within its brand portfolio. Further,
delivery of superior sales processes at the dealership increases the chance of
converting enquiring shoppers into buyers.
study is based on responses from more than 5,000 buyers and 2,300 rejections of
new cars and utility vehicles from buyers who purchased their vehicles between
September 2006 and April 2007. Fieldwork for the study was conducted between March
and June 2007 across 15 major cities in India. A total of nine makes and 40 models.
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