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Indian buyers of new models more inclined to evaluate other models: J D Power Asia Pacificnews
18 September 2007

Bangalore: 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.

The 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.

While 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 grounds.

The 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.

For 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:

  • Hyundai buyers shop around the most before purchasing their new Hyundai car
  • Skoda buyers are least likely to consider another model in their shopping process
  • Maruti Suzuki benefits from its large model range

According 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.

The 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.
also see : Other Automotive reports

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Indian buyers of new models more inclined to evaluate other models: J D Power Asia Pacific