Latest JD Power India Sales Satisfaction Index Study reveals that 49 percent of buyers went online before deciding to spend their money on a vehicle of their choice.
12 Oct 2017 | 3880 Views | By Autocar Pro News Desk
A high level of digital connect in a young India is impacting the way passenger vehicles are retailed in the country. The findings of the JD Power 2017 India Sales Satisfaction Index Study reveal that 49 percent of new-vehicle buyers in India researched for vehicles online, an increase of 15 ...
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A high level of digital connect in a young India is impacting the way passenger vehicles are retailed in the country. The findings of the JD Power 2017 India Sales Satisfaction Index Study reveal that 49 percent of new-vehicle buyers in India researched for vehicles online, an increase of 15 percentage points from last year. The primary information searches relate to vehicle pricing and product specifications, resulting in an increasing number of customers visiting showrooms with more clarity on pricing and the variants of choice available.
Commenting on the study, Kaustav Roy, director, JD Power Singapore, said: “The digital medium is enabling customers to collect a significant amount of information in advance of their vehicle purchase. However, they still need relevant advice to be provided at the showrooms to formulate it into a purchase decision, as a large proportion of customers are still undecided before their visit. Ultimately, brands that effectively help their customers bridge the online and offline purchase journey are likely to benefit from positive word of mouth and an enhanced brand image.”
The study finds that nearly 50 percent of customers, who use the Internet to research their new vehicle seriously considered other models before making a final decision — 19 percent higher than those who relied only on word of mouth and showroom visits for their information needs (30 percent).
The majority of customers using online tools in advance are younger, more educated and more affluent. More than 58 percent of customers who browsed the Internet in advance are less than 35 years old, with the median age of this group two years younger than those who did not use the Internet. Additionally, these customers are more educated – 80 percent are university graduates, compared with 66 percent of those who did not use the Internet.
Customers who used the Internet to research their purchase decision also have a mean income 20 percent higher than those who did not, as well as a preference for purchasing the higher variants of vehicles— even those shopping for smaller cars tend to buy at the higher end of the segment.
Customers now more satisfied, M&M a surprise topper
The overall sales satisfaction index for the industry has improved significantly: Overall satisfaction is up by 31 points (on a 1,000-point scale) from 2016. The key factors include a higher implementation rate on process standards; an increase in the number of amenities made available at dealer facilities; and a drop in pressures and problems experienced by customers during the shopping experience.
The study found that satisfaction in the dealer facilities factor has improved year over year, with 65 percent of customers — a 5-percentage-point increase from 2016 — saying their dealer offered all the amenities measured, including, Wi-Fi access, comfortable seating space and product brochures, among others.
The industry has improved in terms of the number of problems and the level of pressure experienced by customers, with the proportion of those who experienced either a problem or pressure during the buying process dropping by 4 percent this year (2017:37% Vs 2016:33%).
As per the findings of the latest study, Mahindra & Mahindra has topped the sales satisfaction index for the first time, with a score of 866. Toyota Kirloskar Motors rank second with 856 and Ford India ranks third with 846.
The 2017 India Sales Satisfaction Index (Mass Market) Study is based on responses from 7,831 new-vehicle owners who purchased their vehicle from September 2016 through April 2017. The study, now in its 18th year, examines six factors that contribute to overall customer satisfaction with their new-vehicle purchase experience – sales initiation (17 percent); dealer facility (17 percent); deal and paperwork (17 percent); delivery timing (17 percent); salesperson (16 percent); and delivery process (16 percent).