The document discusses the results of a survey of over 1,800 car owners in India regarding their vehicle purchase considerations and brand perceptions. Some key findings:
- For first-time buyers, needing a vehicle for their family's use was the top purchase driver, rather than brand image. Repeat buyers prioritized new technology.
- Both first-time and repeat buyers typically consider 3-5 brands before purchasing. SUV/van owners consider more brands than those looking at hatchbacks/sedans.
- Rural buyers tend to consider fewer brands than urban or suburban buyers due to fewer options and price points available.
- On average, buyers keep their vehicle for 6-7 years or until it reaches 50,
This is part of our presentation for the paper 'Understanding Consumers in India' taken at Amity Business School, Noida. Our Presentation was based on the study done by Deloitte India for the same.
This is part of our presentation for the paper 'Understanding Consumers in India' taken at Amity Business School, Noida. Our Presentation was based on the study done by Deloitte India for the same.
Changing Dynamics of IT and Marketing Teams in the Procurement of Marketing T...Anurag Anwariya
With the increase of digitization in marketing, marketers are steering towards the purchase of technologies which enables them to make informed decisions. Initially marketers in association with their agencies were making the purchase decision of these marketing technologies without defining technical specifications. This ultimately led to the role conflict between IT and Marketing due to implementation challenges and lack of IT compliance. This white paper tries to bring forth the necessary viewpoints on how IT can play a vital role in executing marketing strategies and be the revenue generator of the organization. By collaborating both IT and Marketing teams can define each other’s responsibilities, draw a strategy road map and work towards the shared goal of the organization.
Best Branding Practices in China: Automotive IndustryLabbrand
品牌 (PINPAI) is the Chinese word for “brand”. With its unique culture and economic growth, China is one of the most ideal markets for international brands. For similar reasons, China is also at the center of media attention in terms of economy, politics and performance. Unlike most foreign market, the concept of branding is relatively new. Thus, the process of building PINPAI is different.
For 10 years, from 2001 to 2010, the Chinese automotive industry has experience tremendous growth at a staggering rate of 25.3% per year. This rate is much higher than the average global growth and led to a competitive industry with more than 100 different brands from both local and foreign companies.
In 2011, China has ended its high-speed growth and entered a stage of single digital expansion rate. On the macro level, factors that caused the slow-down include the Chinese Central Bank raising its deposit-reserve ratio for six times in 2011, which increased the difficulties to finance certain enterprises. In terms of regulations, the Chinese government has ended its stimulus packages and introduced tightening limit for new vehicle licensing in major cities. The soaring fuel prices also influenced purchase intention among Chinese consumers. The importance of establishing a strong brand in times like these could not be more evident.
Digital marketing Competitive Analysis of Apollo TyresAkhil Chaubal
Digital Marketing Competitive Analysis of Apollo Tyres.
Assignment Includes Company Profiles, SEO Rankings, SEM Rankings, Social Media Statistics, Content uploaded by Brands, Info & Ads made by Brands and Analysis.
This assignment is made for a project of Indian Institute of Digital Education.
The Buyer decision process is the decision-making process used by consumers regarding market transactions before, during, and after the purchase of a good or service.
The mission of TIS Legacy Capital:
To increase the pool of “bankable” projects by providing technical assistance to entrepreneurs, and
To help businesses increase access to “capital” by presenting their enterprise to the local and global, individual, community and corporate “universe of lenders.”
Changing Dynamics of IT and Marketing Teams in the Procurement of Marketing T...Anurag Anwariya
With the increase of digitization in marketing, marketers are steering towards the purchase of technologies which enables them to make informed decisions. Initially marketers in association with their agencies were making the purchase decision of these marketing technologies without defining technical specifications. This ultimately led to the role conflict between IT and Marketing due to implementation challenges and lack of IT compliance. This white paper tries to bring forth the necessary viewpoints on how IT can play a vital role in executing marketing strategies and be the revenue generator of the organization. By collaborating both IT and Marketing teams can define each other’s responsibilities, draw a strategy road map and work towards the shared goal of the organization.
Best Branding Practices in China: Automotive IndustryLabbrand
品牌 (PINPAI) is the Chinese word for “brand”. With its unique culture and economic growth, China is one of the most ideal markets for international brands. For similar reasons, China is also at the center of media attention in terms of economy, politics and performance. Unlike most foreign market, the concept of branding is relatively new. Thus, the process of building PINPAI is different.
For 10 years, from 2001 to 2010, the Chinese automotive industry has experience tremendous growth at a staggering rate of 25.3% per year. This rate is much higher than the average global growth and led to a competitive industry with more than 100 different brands from both local and foreign companies.
In 2011, China has ended its high-speed growth and entered a stage of single digital expansion rate. On the macro level, factors that caused the slow-down include the Chinese Central Bank raising its deposit-reserve ratio for six times in 2011, which increased the difficulties to finance certain enterprises. In terms of regulations, the Chinese government has ended its stimulus packages and introduced tightening limit for new vehicle licensing in major cities. The soaring fuel prices also influenced purchase intention among Chinese consumers. The importance of establishing a strong brand in times like these could not be more evident.
Digital marketing Competitive Analysis of Apollo TyresAkhil Chaubal
Digital Marketing Competitive Analysis of Apollo Tyres.
Assignment Includes Company Profiles, SEO Rankings, SEM Rankings, Social Media Statistics, Content uploaded by Brands, Info & Ads made by Brands and Analysis.
This assignment is made for a project of Indian Institute of Digital Education.
The Buyer decision process is the decision-making process used by consumers regarding market transactions before, during, and after the purchase of a good or service.
The mission of TIS Legacy Capital:
To increase the pool of “bankable” projects by providing technical assistance to entrepreneurs, and
To help businesses increase access to “capital” by presenting their enterprise to the local and global, individual, community and corporate “universe of lenders.”
MyCapitalPitch™ (MCP) is one of the primary resources used by TIS Legacy Capital to help enterprises connect with the universe of funders seeking to fund projects.
MyCapitalPitch™ helps entrepreneurs:
-perfect their pitch
-complete their paperwork
-secure the needed “capital resources”
Asian Integrated Medical Sdn Bhd (AIM) aims to offer integrative medicine, conventional plus complementary and alternative medicine – a holistic medicine approach designed to meet your health goals.
This will help you visually communicate slide tips nice and easy from the presentation by Garr Reynolds.
http://www.garrreynolds.com/preso-tips/design/
Driving Through The Consumer’s Mind: Steps In The Buying Processaditya848
The passenger car market, after a period of slow and no growth, seems to be showing signs of turning around. Based on the encouraging growth numbers, automotive manufacturers are counting on the general mood of optimism to see the sales change gears and accelerate.
5
Understanding Consumer Behavior
LEARNING OBJECTIVES
After reading this chapter you should be able to:
LO 5-1Describe the stages in the consumer purchase decision process.
LO 5-2Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving.
LO 5-3Identify the major psychological influences on consumer behavior.
LO 5-4Identify the major sociocultural influences on consumer behavior.
ENLIGHTENED CARMAKERS KNOW WHAT CUSTOM(H)ERS VALUE
Who makes 60 percent of new-car buying decisions? Who influences 80 percent of new-car buying decisions? Women. Yes, women.
Women are a driving force in the U.S. automobile industry. Enlightened carmakers have hired women designers, engineers, and marketing executives to better understand and satisfy this valuable car buyer and influencer. What have they learned? While car price and quality are important, women and men think and feel differently about car features and key elements of the new-car buying decision process and experience.
•The sense of styling. Women and men care about styling. For men, styling is more about a car’s exterior lines and accents or “curb appeal.” Women are more interested in interior design and finishes. Designs that fit their proportions, provide good visibility, offer ample storage space, and make for effortless parking are particularly important.
•The need for speed. Both sexes want speed, but for different reasons. Men think about how many seconds it takes to get from zero to 60 miles per hour. Women want to feel secure that the car has enough acceleration to outrun an 18-wheeler trying to pass them on a freeway entrance ramp.
•The substance of safety. Safety for men is about features that help avoid an accident, such as antilock brakes and responsive steering. For women, safety is about features that help to survive an accident. These features include passenger airbags and reinforced side panels.
•The shopping experience. The new-car-buying experience differs between men and women in important ways. Generally, men decide up front what car they want and set out alone to find it. By contrast, women approach it as an intelligence-gathering expedition. Referred to as CROPing, women shoppers look for CRedible OPinions. They actively seek information and postpone a purchase decision until all options have been evaluated. Women, more frequently than men, visit auto-buying websites, read car-comparison articles, and scan car advertisements. Still, recommendations of friends and relatives matter most to women. Women typically shop three dealerships before making a purchase decision—one more than men.
Page 111
Carmakers have learned that women, more than men, dislike the car-buying experience—specifically, the experience of dealing with car salespeople. In contrast to many male car buyers, women do not typically revel in the gamesmanship of car buying. “Men get all excited about going out to buy a car and talk about how they’re g.
Nowadays, cars have become synonymous with the modern city market. The development and
splendor of the city can also portray by the use of cars. The purpose of this study is to analyze the factors
affecting car buying in an urban market. This research used descriptive and causal research design. Primary
data were collected
How Automotive Brand Affects Used Vehicles Prices.
Brand perception plays an important role in used
vehicle demand as well. Used vehicles from brands
with an established history of successfully meeting
buyers’ most critical needs usually sell for more
than the competition. This consistent ability to
satisfy core purchase drivers gives stronger brands
an innate advantage in cost-of-ownership and
residual value. To better explain this cause and
effect, this report explores the brand characteristics
that drive auto purchase behavior, and their impact
on used vehicle prices.
5 Warning Signs Your BMW's Intelligent Battery Sensor Needs AttentionBertini's German Motors
IBS monitors and manages your BMW’s battery performance. If it malfunctions, you will have to deal with an array of electrical issues in your vehicle. Recognize warning signs like dimming headlights, frequent battery replacements, and electrical malfunctions to address potential IBS issues promptly.
What Exactly Is The Common Rail Direct Injection System & How Does It WorkMotor Cars International
Learn about Common Rail Direct Injection (CRDi) - the revolutionary technology that has made diesel engines more efficient. Explore its workings, advantages like enhanced fuel efficiency and increased power output, along with drawbacks such as complexity and higher initial cost. Compare CRDi with traditional diesel engines and discover why it's the preferred choice for modern engines.
In this presentation, we have discussed a very important feature of BMW X5 cars… the Comfort Access. Things that can significantly limit its functionality. And things that you can try to restore the functionality of such a convenient feature of your vehicle.
Core technology of Hyundai Motor Group's EV platform 'E-GMP'Hyundai Motor Group
What’s the force behind Hyundai Motor Group's EV performance and quality?
Maximized driving performance and quick charging time through high-density battery pack and fast charging technology and applicable to various vehicle types!
Discover more about Hyundai Motor Group’s EV platform ‘E-GMP’!
What Does the PARKTRONIC Inoperative, See Owner's Manual Message Mean for You...Autohaus Service and Sales
Learn what "PARKTRONIC Inoperative, See Owner's Manual" means for your Mercedes-Benz. This message indicates a malfunction in the parking assistance system, potentially due to sensor issues or electrical faults. Prompt attention is crucial to ensure safety and functionality. Follow steps outlined for diagnosis and repair in the owner's manual.
Fleet management these days is next to impossible without connected vehicle solutions. Why? Well, fleet trackers and accompanying connected vehicle management solutions tend to offer quite a few hard-to-ignore benefits to fleet managers and businesses alike. Let’s check them out!
Why Is Your BMW X3 Hood Not Responding To Release CommandsDart Auto
Experiencing difficulty opening your BMW X3's hood? This guide explores potential issues like mechanical obstruction, hood release mechanism failure, electrical problems, and emergency release malfunctions. Troubleshooting tips include basic checks, clearing obstructions, applying pressure, and using the emergency release.
Comprehensive program for Agricultural Finance, the Automotive Sector, and Empowerment . We will define the full scope and provide a detailed two-week plan for identifying strategic partners in each area within Limpopo, including target areas.:
1. Agricultural : Supporting Primary and Secondary Agriculture
• Scope: Provide support solutions to enhance agricultural productivity and sustainability.
• Target Areas: Polokwane, Tzaneen, Thohoyandou, Makhado, and Giyani.
2. Automotive Sector: Partnerships with Mechanics and Panel Beater Shops
• Scope: Develop collaborations with automotive service providers to improve service quality and business operations.
• Target Areas: Polokwane, Lephalale, Mokopane, Phalaborwa, and Bela-Bela.
3. Empowerment : Focusing on Women Empowerment
• Scope: Provide business support support and training to women-owned businesses, promoting economic inclusion.
• Target Areas: Polokwane, Thohoyandou, Musina, Burgersfort, and Louis Trichardt.
We will also prioritize Industrial Economic Zone areas and their priorities.
Sign up on https://profilesmes.online/welcome/
To be eligible:
1. You must have a registered business and operate in Limpopo
2. Generate revenue
3. Sectors : Agriculture ( primary and secondary) and Automative
Women and Youth are encouraged to apply even if you don't fall in those sectors.
Things to remember while upgrading the brakes of your carjennifermiller8137
Upgrading the brakes of your car? Keep these things in mind before doing so. Additionally, start using an OBD 2 GPS tracker so that you never miss a vehicle maintenance appointment. On top of this, a car GPS tracker will also let you master good driving habits that will let you increase the operational life of your car’s brakes.
"Trans Failsafe Prog" on your BMW X5 indicates potential transmission issues requiring immediate action. This safety feature activates in response to abnormalities like low fluid levels, leaks, faulty sensors, electrical or mechanical failures, and overheating.
Symptoms like intermittent starting and key recognition errors signal potential problems with your Mercedes’ EIS. Use diagnostic steps like error code checks and spare key tests. Professional diagnosis and solutions like EIS replacement ensure safe driving. Consult a qualified technician for accurate diagnosis and repair.
𝘼𝙣𝙩𝙞𝙦𝙪𝙚 𝙋𝙡𝙖𝙨𝙩𝙞𝙘 𝙏𝙧𝙖𝙙𝙚𝙧𝙨 𝙞𝙨 𝙫𝙚𝙧𝙮 𝙛𝙖𝙢𝙤𝙪𝙨 𝙛𝙤𝙧 𝙢𝙖𝙣𝙪𝙛𝙖𝙘𝙩𝙪𝙧𝙞𝙣𝙜 𝙩𝙝𝙚𝙞𝙧 𝙥𝙧𝙤𝙙𝙪𝙘𝙩𝙨. 𝙒𝙚 𝙝𝙖𝙫𝙚 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙥𝙡𝙖𝙨𝙩𝙞𝙘 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙪𝙨𝙚𝙙 𝙞𝙣 𝙖𝙪𝙩𝙤𝙢𝙤𝙩𝙞𝙫𝙚 𝙖𝙣𝙙 𝙖𝙪𝙩𝙤 𝙥𝙖𝙧𝙩𝙨 𝙖𝙣𝙙 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙛𝙖𝙢𝙤𝙪𝙨 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙗𝙪𝙮 𝙩𝙝𝙚 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙛𝙧𝙤𝙢 𝙪𝙨.
Over the 10 years, we have gained a strong foothold in the market due to our range's high quality, competitive prices, and time-lined delivery schedules.
3. Key Terms
Gen X
Born between 1965 - 1976
falling in the age group of 37 to 48 years
Gen Y
Born between 1977-1994
falling in the age group of 19 to 36 years
OEM
Original equipment manufacturers
Driving through the consumer’s mind 3
4. Introduction
Today, India stands as one of the top ten automotive
markets in the world and is likely to scale-up to third
position by 2020, thanks to the expanding middle-class
population with buying potential. This expectation
has already led to a number of key global Original
Equipment Manufacturers (OEMs) to establish their
operations in India.
In spite of the longer term promise, the OEMs have had
to deal with a very sluggish market in the recent past.
While some individual products have had spectacular
success, the others are struggling to maintain volumes.
In this context, we wanted to explore the purchase
considerations that can potentially help the OEMs in
targeting better. We also wanted to explore if there has
been any behavioural change in the slow years that the
marketers can take advantage or be wary of.
During the year 2013, we surveyed over 1800
respondents in India. This was a part of a global
initiative where our survey covered over 23,000 people
in 19 countries. We have used the responses received
from the sample population in India alone to draw
inferences and conclusions in this report.
While there were some respondents who did not
own a vehicle or owned a two-wheeler, the sample
4
is significantly car owning and as a result is skewed
towards the current geographical dispersion of car
population in India. This results in the dominance of
urban consumers in the sample size. Further, the sample
may not represent the various brands proportionate to
market share those brands may enjoy. Though we have
attempted to cover a large cross-section of consumers,
this random sample may have limitations of representing
all the strata of car owners or car buyers. Please refer to
the Appendix-1 for details of respondent profiles.
While analysing data or drawing inferences, we
have taken only statistically significant data into
consideration. As true to most surveys, the analysis
presented in this report may be taken as directionally
valid and may not accurately reflect the realities relating
to a brand, customer category, etc. The reader is advised
not to take the conclusions or the inferences drawn as
professional counsel or assume these to be premises on
which they would make decisions.
We hope that this report will help provide additional
perspectives to OEMs in devising their marketing
strategies to drive future growth.
5. About the study
Based on the dataset we had, our endeavour was to
answer the following:
1. What are drivers for the new vehicle purchase
decision?
2. How many brands are considered by the potential
consumers for vehicle purchase both car owners and
non–owners?
3. What are the key attributes that consumers look in a
vehicle during the purchase process?
We have attempted to answer the above questions as
per the consumer decision making process illustrated
below:
Purchase Drivers
Identify the drivers
which may impact the
vehicle purchase using
the past purchasing
behavior and next
purchase inputs
Consideration Set
Determine the
consideration set for
different consumer
types and their
requirements
Brand Perception
of Car Owners
Understand the
perception of
the brands in the
consideration set and
identify key attributes
required in the vehicle
Demographic factors such as age,
gender, residential location etc.
# of brands in consideration set
Past purchasing behavior
Current preferences & lifestyle
Key brands on different attributes
Next purchase considerations
Brands by vehicle price range
Driving through the consumer’s mind 5
7. Capturing the purchase triggers
This section covers the reasons the car buyers
look to buy a car. It also explores the difference
between the first- time and repeat buyers.
First-time buyers
Relative scale with respect to Brand Image
(1X= % respondents for whom Brand image
acted as purchase trigger)
Top Reasons for Vehicle Purchase
9
8
7
8x
6
5
4
3
2
1
0
x
My family
members or
dependents can
use it
Need for more New technology Can afford to
space/larger
available
buy/lease
vehicle
another vehicle
Unlike the developed markets where a car is bought
to cater to an individual’s requirement, the Indian first
time car buyer, looks to buy a car for his family primarily.
Contrary to the popular belief that the car buyer is
motivated by the opportunity to make a statement of
success, it is interesting that this is a very rational and
practical requirement. Given that the first time buyer
has really no comparable reference, it is natural that this
buying decision is not influenced by the ‘improvement
of fuel efficiency’ factor.
Improve fuel
efficiency
Improve
reliability
Purchase
vehicle with a
better
brand/image
Family needs is rated as the top trigger
in purchase decision of a car, and is 8x
more important as a trigger than better
brand image.
Respondents from both Gen X and Gen Y categories
have expressed similar requirements for their first car,
irrespective of their gender.
Driving through the consumer’s mind 7
8. Rating of Attributes for Choosing a Vehicle (First time buyers)
100%
% of Respondents
80%
60%
40%
20%
0%
Overall Female Male
Dealership’s ability to
repair and service
Important
Neutral
Overall Female Male
Ability to repair / service
vehicle on your own
Overall Female Male
Re-sale value
Overall Female Male
Reliability (e.g., low
maintenance required)
Not Important
Note: Ratings / points were captured on a 5 point scale. Rating of 4 & 5 as important, 3 as neutral and 1&2 as not important
Once the decision to buy is made, the study reveals that
the first-time buyers use reliability, the dealer services
and resale value as filters while making brand choices.
However, it was observed that female respondents
attached less importance to reliability and dealer ability
as compared to the male respondents.
Technology and need for more space are
rated as the top triggers in purchase
decision of a car, and are 3x more
important as a trigger than better brand
image.
Repeat buyers
Top Reasons for Vehicle Re-purchase
Relative scale with respect to Brand Image
(1X= % respondents for whom Brand
image acted as purchase trigger)
4
3
3x
3x
2
1
x
0
New technology
available
My family members or
dependents can use it
Need for more space/
larger vehicle
8
Can afford to buy/
lease another vehicle
Improve fuel
efficiency
Purchase vehicle with a
better brand/image
Improve
reliability
9. Unlike the first time buyer, the repeat buyer
understandably looks to upgrade, going by the reasons
cited by the respondents. A more sophisticated product
is the primary requirement. While most purchase drivers
were common across the repeat buyers, the responses
given by Gen X and Gen Y presented an interesting mix.
While technology stood out as a ruling factor for Gen
Y, Gen X gave precedence to larger space requirement.
This trend held true irrespective of the respondent’s
gender.
Interestingly, Gen X male alone have rated ‘can afford to
buy’ as a reason ahead of the utility for family members,
thereby suggesting their desire to use the car as a
statement of success.
As is the case of first time buyers, the repeat buyers
also use reliability, the dealer services and resale value
as filters to making brand choices. However, the Gen X
attached more importance to the vehicle reliability as
compared to Gen Y.
Rating of Attributes for Choosing a Vehicle (Repeat buyers)
100%
% of Respondents
80%
60%
40%
20%
0%
Overall Gen X Gen Y
Overall Gen X Gen Y
Overall Gen X Gen Y
Dealership’s ability to
repair and service
Ability to repair / service
vehicle on your own
Re-sale value
Overall Gen X Gen Y
Reliability (e.g., low
maintenance required)
Note: Ratings / points were captured on a 5 point scale. Rating of 4 & 5 as important, 3 as neutral and 1&2 as not important
Important
Neutral
Not Important
Driving through the consumer’s mind 9
10. Are the usage patterns undergoing changes?
Time & Distance between Purchases
80
70
8.00
60
7.00
50
6.00
40
30
5.00
Distance (‘000) km
Time in years (Year)
9.00
20
4.00
10
3.00
0
Overall
Time
Female
Male
Gen X
Gen Y
Distance
Note: The average time between purchases has been calculated as the sum of the average vehicle age and average time to next vehicle
purchase for each respondent. The total distance travelled per year has been calculated based on the average working travel time. It has been
assumed that the number of working days per year is 300 days to accommodate the travel not related to work.
The study suggests that the average time between
purchases of two cars was almost 6-7 years.
Respondents considered changing their car after it had
clocked a distance of 50,000 to 55,000 km.
Size of the vehicle also matters. Vehicles like van and
wagons are driven for more than 60,000 km before
changing.
It is perhaps understandable that consumer’s preferences
change faster as the price of vehicles goes up.
While males typically drive a car for 55,000 km or more
before making a new purchase, female consumers
change cars after 45,000 km.
The distance consideration also varied between Gen
X and Gen Y consumers, as the former preferred to
change their cars after driving a longer distance as
compared to the other sub-set.
The respondents provided the indication of the point of
purchase which typically falls between 6 and 7 years
after having travelled 50,000 to 55,000 kilometers
10
11. Future usage trends
Usage of Transportation Means - Overall
Time Period between Vehicle Purchases
6.40
Increase in usage
of personal cars
by ~5% over the
next 5 years
60%
40%
20%
0%
Current Usage
PersonalCar
PvtCarpool
PublicTransportation
Usage after 5 Years
Moped
RentalCar
Bike
Taxi
PublicCarPool
Walking
6.3
6.20
Time in Years
80%
Impact on Purchase of New Vehicles
% of Total Requirement
100%
6.00
5.80
5.6
5.60
5.40
5.20
Time Period between Time Period between
Purchases - Current Purchases - 5 years
later
Note: The expected time period between purchases after 5 years has been calculated based on the change in the usage of personal cars
from 35% to 40%. Considering that the distance between purchases typically remain same, the time period reduces in the same ratio as the
increase in the usage (i.e. 40%/35% = 1.13)
Consequent to the increased usage, it is expected that
the time for which people would own a car to reduce
from the current 6+ years to about 5.5 years.
The share of the personal car is expected to increase
over the next five years, at the cost of other mobility
solutions. This increased usage is driven largely by Gen
Y and women drivers
Driving through the consumer’s mind 11
13. Mapping the consumer mindset
Once the decision is made to buy a car, and after
the respondents cited their selection parameters,
we asked them as to how they made their brand
choices.
Brand consideration
Most of the car buyers – both first time and repeat –
consider 3 – 5 brands from which they make their final
selection.
This trend seems to be true for the last seven years
covering both the high growth and difficult periods.
Clearly, the buyer goes through a detailed evaluation
irrespective of the economic circumstances that he/she
may be in.
However, SUV and mini-van owners tend to look for
more number of brands before they make their selection
as compared to consumers who consider a hatchback
and sedan.
No. of Brands Typically Considered (By Car Age)
25%
% of Respondents
20%
15%
10%
5%
0%
1
2
3
4
5
6
7
8
9
10
Number of Brands Considered
< 1 year (2013)
2 years (2011)
3 years (2010)
4 years (2009)
5 years (2008)
6 years (2007)
7 years (2006)
Note: The sum of all the stacks in the graph does not add to 100% as data has been depicted only for the last six years and some did not
respond. Please read the graph on incremental basis and not on cumulative basis while you transition from one year to next.
Driving through the consumer’s mind 13
14. Price-point buying patterns
Respondents Considering 6 or more Brands (By Car Value)
50%
% of Respondents
40%
30%
20%
10%
0%
2 - 4 Lakhs
4 - 6 Lakhs
6 - 8 Lakhs
As the buyers go through the repeat purchase, they
don’t necessarily behave any different from the first time
buyer in shopping around. It does not seem to be a case
where they identify themselves with a brand in terms of
personality or performance.
8 - 12 Lakhs
12 - 16 Lakhs
16 - 30 Lakhs
We asked the owners of different brands as to how
many other brands they considered before they
made their selection of the brands they owned. Not
surprisingly, we found a large number of them looking
at several options, with some interesting variations
across brands.
Respondents Considering >= 4 Brands (By Car Brand)
100%
8
7
6
5
60%
4
40%
3.7
3.7
3.8
3.8
3.9
3.9
3.8
3.7
3.8
4.0
3.6
4.3
4.0
3
2
20%
1
0%
0
Brand
1
Brand
2
Brand
3
Greater or equal to 4 brands
Brand
4
Brand
5
Brand
6
Brand
8
Brand
9
Less than 4 brands
Brand
10
Brand
11
Brand
12
Brand Luxury
13
Cars
Median
Note: We are not drawing any brand comparisons and therefore the brand names have been masked
The number of brands considered remains similar for
non-luxury as well as luxury cars, indicating
importance of value proposition in both the consumer
segments.
14
Number of brands
% of Respondents
80%
15. The urban, sub-urban and rural trends
No. of Brands Typically Considered by Location
100%
% of Respondents
80%
60%
40%
20%
0%
1
Rural
2
3
4
5
Suburban
6
7
8
9
Urban
10 or more
Note: The sum of all the stacks in the graph may not add to 100% as some of the individuals did not respond
Rural buyers tend to look at a more limited number
of options. This could be a function of the choices
available and the price points they consider. The analysis
in the following two graphs gives the number of brands
considered by the buyers over the last seven years.
Rural consumers take lesser number of brands into
consideration as compared to the semi-urban or urban
consumers.
Driving through the consumer’s mind 15
16. No. of Brands Considered during Last Purchase (Urban)
100%
% of Respondents
80%
60%
40%
20%
0%
2013
2012
2011
2010
2009
2008
2007
2008
2007
Vehicle Purchase Year
1
2
3
4
5
6
7
8
9
10 or more
Note: The sum of all the stacks in the graph may not add to 100% as some of the individuals did not respond
There is an increasing trend amongst the urban
population of going with a single brand, which could be
on account of familiarity of the brand, loyalty programs
of OEMs, or the aspirational value offered by a brand at
that point of time for a particular product.
No. of Brands Considered during Last Purchase (Rural/Semi Urban)
100%
% of Respondents
80%
60%
40%
20%
0%
1
2013
2
3
4
2012
5
6
2011
7
8
9
2010
Vehicle Purchase Year
2009
10 or more
Note: The sum of all the stacks in the graph may not add to 100% as some of the individuals did not respond
When you look at the 80 percentile level, the number of
brands considered remains comparable. However, the
number of buyers considering lesser number of brands
has been reducing.
16
17. Car type & pricing trends
No. of Brands Typically Considered (By Car Price and Age Groups)
100%
% of Respondents
80%
60%
40%
20%
0%
Gen X
Gen X
Gen Y
2 - 4 Lakhs
1
2
3
4
5
6
Gen Y
4 - 6 Lakhs
7
8
9
Gen X
Gen Y
6 - 8 Lakhs
Gen X
Gen Y
8 - 12 Lakhs
10 or more
Note: The sum of all the stacks in the graph may not add to 100% as some of the individuals did not respond
The consideration set increases with the rise in the
car price point across Gen X and Gen Y car owners.
Gen X consumers, who own a car between Rs 6 to 8
Lakhs, tend to evaluate more number of brands, with
more than 40% evaluating 6 or more cars for their last
purchase. However, less than 20% of Gen Y consumers
evaluated 6 or more cars across the price range.
With the increase in the car price, consumers tend to
evaluate greater number of brands, with Gen X
considering more brands as compared to Gen Y
consumers
Driving through the consumer’s mind 17
18. No. of Brands Typically Considered (By Car Type)
100%
% of Respondents
80%
60%
40%
20%
0%
Hatchback
Sedan
Hatchback
Gen X
1
2
3
4
5
6
7
8
Sedan
Gen Y
9
10 or more
Note: The sum of all the stacks in the graph may not add to 100% as some of the individuals did not respond
The trend further differs in case of the type of vehicle
owned by the respondents; both Gen X and Gen Y
have a consideration set of 3 to 5 cars while evaluating
sedans and hatchbacks.
Car Type Selected for Next Vehicle Purchase
100%
% of Respondents
80%
60%
40%
20%
0%
Hatchback
Sedan
SUV
Van/Minivan
Current Vehicle Type
Sedan
SUV
Hatchback
Coupe
Sedans are placed at the top of the consideration set
by the current hatchback owners for their next vehicle
purchase while SUVs are preferred by the current sedan
owners.
18
Wagon
Van/Minivan
Convertible
19. Car Type Selected for Next Vehicle Purchase
100%
% of Respondents
80%
60%
40%
20%
0%
2 - 4 Lakhs
4 - 6 Lakhs
6 - 8 Lakhs
8 - 12 Lakhs
12 - 16 Lakhs
Current Vehicle Price Range
Sedan
SUV
Hatchback
Coupe
Wagon
Van/Minivan
Convertible
Similarly, respondents with cars in the price range of Rs
2 to 6 Lakhs are more likely to consider sedans for their
next purchase. This highlights the consumer aspiration
to purchase a larger car and move up the segment.
However, SUVs owners buck the trend with more
than 50% of SUV owners expressing a desire to go for
another SUV in their next purchase.
Driving through the consumer’s mind 19
21. Identifying key influencers
Last purchase considerations by type of vehicle
Brands Considered for Last Purchase (By Vehicle Type)
% of Respondents
100%
80%
60%
40%
20%
0%
Van/Minivan
Hatchback
Sedan
SUV
Current Vehicle Type
Brand 1
Brand 2
Brand 3
Brand 4
Brand 5
Brand 6
Brand 7
Brand 8
Brand 9
Brand 10
Brand 11
Brand 12
Brand 13
Others
Note: We are not drawing any brand comparisons and therefore the brand names have been masked
Interestingly, when customers were asked to specifically
mark the brands they considered before making their
selection, they ended up with more number than their
stated position of considering 3 to 5 brands. This would
suggest they started with a long list of several brands
but seem to think of a smaller number as a serious set
of possibilities
When we looked at the brands considered by existing
car owners, we are able to see that the SUV owners
tend to consider more brands as compared with van/
mini-van users. From the number of brands that are
considered, it is apparent that product types other than
what they eventually select are considered. This further
strengthens the view that India is a price-point driven
market.
Consumers tend to look at offerings
across brands and also offerings at the
price band they are considering, while
making the purchase.
Driving through the consumer’s mind 21
22. Last purchase considerations by value of car
Brands Considered for Last Purchase (By Car Value)
100%
% of Respondents
80%
60%
40%
20%
0%
2 - 4 Lakhs
4 - 6 Lakhs
6 - 8 Lakhs
8 - 12 Lakhs
12 - 16 Lakhs
Current Vehicle Price Range
Brand 1
Brand 2
Brand 3
Brand 4
Brand 5
Brand 6
Brand 7
Brand 8
Brand 9
Brand 10
Brand 11
Brand 12
Brand 12
Others
Note: We are not drawing any brand comparisons and therefore the brand names have been masked
Based on the responses obtained from car owners about
their last purchase, the number of brands contributing
mindshare of around 40% does not change in the 2~12
Lakhs price range. However, at the higher price points,
the brands that constitute the top 40% change.
22
23. Ratings of car owners of their own brands
Ratings on different attributes by brand owners
Attributes
Brand
Reputation
Reliability
Overall
Quality
Performance
& Handling
Safety
Value for
Money
Interiors
Styling
Technology
features
Fuel
Efficiency
Resale
Value
Brand 1
Brand 2
Brands
Brand 3
Brand 4
Brand 5
Brand 6
Brand 7
Brand 8
Highest Rated Attribute
Lowest Rated Attribute
for a Brand
for a Brand
Note: Ratings / points were captured on a 5 point scale (1. for Poor, 2, 3, 4, 5. for Excellent) by owners of their brands. Above heat map for
brands is for illustrating the shift in trends. The representation above is not intended for making any comparisons between brands as the
respondent datasets are independent and hence not comparative. Therefore, the brand names have been masked.
It is an interesting situation the OEMs have to deal with.
The car buyers considered several brands and made
their choices and will once again consider several brands
when they are in the market to buy their next car.
However, as owners, they seem to be reasonably happy
with what they have. It is therefore incumbent upon
the OEMs to convert this satisfaction into brand loyalty
and repeat purchase.
Driving through the consumer’s mind 23
24. Conclusion
The Indian car buyer comes across as a very rational
person during the entire process, contrary to the
popular notion of car buying being a very emotional
activity. There are very practical reasons to buy a car
– space, need of the family or to upgrade to a higher
quality of vehicle. Once the need for a car is established,
the buyer looks for quality of service, product reliability
and re-sale value.
Given these factors, the potential buyer looks at several
products, presumably at the same price point, and
tends to make the final selection. This appears to be a
deliberate and a detailed process.
The lessons for the OEMs seem to be
• It helps to appeal the rational side of the buyer.
• While the brand itself and the perceptions around it
are important, the buyer looks at the quality of the
dealership for service, vehicle reliability and resale
value to shortlist the brands.
• The chance of almost all brands to get into the
consideration of a buyer seems bright.
24
• Consumers not complaining should not to be
misunderstood to mean satisfaction and brand
loyalty! Most of the consumers would tend to look
at all possible options before making the next buying
decision, at least, at the present moment. While
only a very small number of customers seem to be
loyal to a brand, the population, however, seems to
be growing. This would, therefore, suggest a need
to revisit loyalty programs to make the ownership
experience compelling.
There may be a case for the expectations of the
customers to be managed appropriately through the
life cycle of the product, to be in a position to be
considered favourably for the next purchase. Given the
fact that there is likely to be greater usage of the car,
and lesser period for which it is owned, it may be an
imperative to plan the relationship management in an
effective way.
26. Respondent profile
By Respondent Age
Overall Respondents
Car Owners
2% 1%
2%
16%
17%
59%
24%
57%
22%
1%
16-18 years
Gen Y (19~36 years)
Gen X (37~48 years)
Boomers (49~67 years)
68 years and older
Overall, 1813 respondents were a part of the survey,
of which 1066 respondents comprising ~ 59% of the
survey population belong to Gen Y, while ~ 22% belong
to Gen X and 16% belong to the “Baby Boomers”
segment. The four-wheeler owners also show a similar
age profile.
By Used Vehicles vs. New Vehicles
Overall Respondents
Car Owners
21%
9%
91%
79%
New
Old
In the overall population almost ~ 79% had purchased
new vehicle during their last purchase. In the sample
related to car owners, ~ 91% had purchased a new car
during their last purchase. In the context of the above,
all the analysis and conclusions in the report are aligned
to behaviour exhibited by consumers during new vehicle
purchase.
26
27. Contacts
Kumar Kandaswami
Senior Director & Manufacturing Leader,
Deloitte in India
Email: kkumar@deloitte.com
Phone: +91 (0) 44 6688 5401
Ajay Tiwari
Email: ajaytiwari@deloitte.com
Phone: +91 (0) 124 679 2887
Sumeet Kumar
Email: sumkumar@deloitte.com
Phone: +91 (0) 124 679 2000
MS Mani
Email: msmani@deloitte.com
Phone: +91 (0) 22 6619 8552
Vijay Iyer
Email: viyer@deloitte.com
Phone: +91 (0) 22 6622 0504
Driving through the consumer’s mind 27