Consumers in India Are Increasingly Cross-Shopping Multiple Models When Buying a New Vehicle
Share This Page
Desire for Better Fuel Efficiency Tops Price Concerns as Reason for Vehicle Choice
SINGAPORE: 27 SEPT. 2012 — Cross-shopping activity in India increases year over year, as more prospective vehicle buyers are considering one or more models during their shopping process, according to the J.D. Power Asia Pacific 2012 India Escaped Shopper StudySM (ESS) released today.
The study, which examines the reasons why new-vehicle shoppers consider but ultimately reject certain models in favor of another, finds that 28 percent of new-vehicle buyers considered one or more vehicles before selecting the vehicle they ultimately purchased, up from 23 percent in 2011. The increase in cross-shopping rates is primarily driven by repeat new-vehicle buyers--shoppers who are either purchasing an additional vehicle or replacing their household vehicle--as more than one-third of repeat buyers considered one or more models during their shopping activity, an increase of nearly 9 percent from 2011. The cross-shopping rate among first-time vehicle buyers remains largely unchanged from 2011 at 20 percent.
"Repeat buyers tend to shop more than first-time buyers, but this has further increased in 2012 with the launch of several new models in the country," said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore. "Repeat buyers typically have a greater willingness to experiment with new models that are launched in the market. With the significant increase in new-model launches in 2012, this set of shoppers clearly has a wider range of choices."
Arora also noted that repeat vehicle buyers show greater involvement in the shopping process and are more likely to visit dealerships and test drive new models before making their final purchase decision.
One-third of customers rejected the vehicle they initially considered purchasing because they wanted a vehicle with better fuel economy. Price continues to be among the major reasons for rejecting a vehicle. However, shoppers cite price less often in 2012 compared with 2011 as buyers increasingly prefer vehicles that provide a cost-of-operation advantage.
"The increases in fuel prices during the past year appear to have a significant impact on vehicle shopping preferences and vehicle-buying decisions," said Arora. "Vehicle operating costs are therefore superseding initial acquisition costs in the buying decision process, as shoppers increasingly choose between similar priced vehicles."
In terms of consideration, Maruti Suzuki continues to be the most considered nameplate among vehicle buyers, despite a decline in consideration rate year over year. Conversely, the consideration rates of such makes as Toyota and Mahindra sharply increase from 2011.
The 2012 India Escaped Shopper Study is based on responses of 7,382 buyers and 2,721 rejecters of new cars and new utility vehicles who purchased their vehicle between September 2011 and April 2012. The study was fielded from March to July 2012.
About J.D. Power Asia Pacific
J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: firstname.lastname@example.org
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial's leading brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.
Media Relations Contacts:
XingTi Liu; J.D. Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; email@example.com
John Tews; J.D. Power and Associates; Troy, Mich.; (248) 680-6218; firstname.lastname@example.org
Follow us on Twitter: @JDPower
No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate
# # #