1. The Role of the Internet in the Car Purchasing Process Julie Forey Head of Research MSN UK

2. Agenda Objectives Methodology Main Findings -Sources used -Role of the internet -Advantages & disadvantages Summary

3. Objectives Understand the role of the Internet in the car purchasing decision making process Establish its relative importance compared to other information sources Understand specifically what the Internet is used for Establish perceived advantages and disadvantages of the online medium

4. Methodology Stage 1 2 Group discussions to better understand the car purchasing procedure to aid quant questionnaire - Intender audience (next 6 months) - Purchaser audience (last 6 months) Stage 2 1000 interviews among GB adults (face to face omnibus survey of both online and offline respondents) to establish market size & priority of information sources Stage 3 Bespoke online survey among Internet users - 280 respondents that had purchased a new/used car in the last 6 mths - 200 respondents that intended to purchase a new/used car in the next 6 mths Fieldwork for all three stages conducted between May and June 2004 by NOP World

5. Who has bought a car in the last six months? Base: All GB adults 16% 22% 11% 13% 22% 24% 21% 12% 7% 0% 5% 10% 15% 20% 25% 30% All Men Women 17-2425-3435-4445-5455-64 65+

6. Net users are more likely to have bought a car in the last 6 months Base: All GB adults

7. Sources Used

8. The internet is 3 rd most popular source used in decision making process Base: All GB adults who have bought a car in last 6mths

9. The internet is 3 rd most popular source used in decision making process Base: All GB adults who have bought a car in last 6mths

10. And the No.1 Media Source ….. Base: All GB adults who have bought a car in last 6mths

11. The internet scores highest for importance Base: All users who used … as an information source Top sources ranked according to those scoring Extremely/Very important Extremely important rating 27% 22% 25% 27% 12% 8%

12. The net is usually the FIRST used source Source1 st used2 nd used3 rd used Total used 1 st /2 nd /3rd Base: All who used …. as an information source Car dealership personnel Internet Friends advice Car mags Consumer reports 26%25%33% 84% 57% 28%6% 91 % 38%26%18% 82% 22%19%28% 69% 19%32%24% 76 %

13. The role of the Internet

14. Mean no. mths prior to purchase Research is started on average three months prior to purchase Base: All car purchasers using Internet for research

15. The majority use the internet throughout the process Only at the very early stages Only once I had/have decided on a particular make/model of car Only towards the end of the decision making process Throughout Other/DK Base: All car purchasers using Internet for research

16. Mean No. Hrs Online accounts for over half the total research hours 58% of Total Hrs Base: All car purchasers using Internet for research

17. General car websites are most popular Base: All car purchasers using Internet for research

18. What the car buyers said…. You can easily see all the deals out there If you get the right site you should receive impartial information When I had my mind made up I went to the actual Toyota web site and it gave me loads of things I hadnt thought of Ability to compare many models in one place, to see all the options available A vast amount of unbiased information

19. Base: All car purchasers using Internet for research Decisions made prior to online research: Car buyers using the internet are open to Influence

20. Base: All car purchasers using Internet for research Decisions made prior to online research: Car buyers using the internet are open to Influence BUT 42% will have changed their mind in at least one area as a direct result of online research ….

21. Decisions shifted after researching online Base: All who had made a decision on … prior to net research % of those having made the decision prior to researching online

22. What did they use the Internet for? Base: All car purchasers using Internet for research

23. How useful were the activities? Base: All who used each activity

24. Base: All considering the Internet useful to conduct activities online Compare prices General research about make of car Compare makes/models of car Read vehicle reviews Research insurance options Order a brochure Dealership quote Research vehicle spec View images of car exterior Find a dealership View images of car interior Customise a vehicle Price Comparison is considered the Most Useful Activity to Conduct Online

25. Attitudes towards the use of the internet for car purchasing 59% The Internet has had a significant impact on the decisions I have made about my recent vehicle purchase In the future I would consider buying a new car online In the future I would consider buying a used car online TOTAL DISAGREETOTAL AGREE 14% 29% 41% 37%30% Base: All car purchasers using Internet for research

26. Advantages & disadvantages of the internet

27. Perceived advantages of the internet Spontaneous mentions Base: All car purchasers

28. What the car buyers said… advantages The main advantages are that you dont have to spend time searching garage forecourts or showrooms It makes finding out stuff less pressurised and less intimidating I can research any car I wish without all the leg work and annoying/pushy salesmen Fast access to information, easy to compare similar spec cars

29. Perceived disadvantages of the internet Base: All car purchasers Spontaneous mentions:

30. Can only really judge the vehicle in the flesh Its not the same as seeing the car for yourself You cant get a feel for the car, especially if it is not new It doesnt always give a true likeness, its easy to put up pictures of a better spec vehicle and to hide damage What the car buyers said… disadvantages

31. Summary A third of all adults whove bought a car in the last 6mths, used the internet in the decision making process. The internet is the 3rd most popular source of information used in the car purchase decision making process. Only Car Dealers (52%) and advice from friends and family (38%) are more popular. The internet is the no.1 MEDIA source of information for all car buyers - beating car magazines into 2nd place. Nearly 7 out of 10 (68%) purchasers who used the net for car research claimed that it was extremely or very important making it the highest rated source of information

32. Summary When looking at the order that information sources were used, 57% of recent purchasers using the internet claimed it was the first source used with more than nine out of ten (91%) using it as either their first, second or third source. Even though some purchasers claim to have made decisions before using the internet nearly half change their mind on some aspect of their purchase following online research. Insurance, dealer, price & model seem most likely to be reconsidered Similarly, more than half (59%) of purchasers using the Internet agree that the Internet has had a significant impact on the decisions made about their recent purchase

33. Summary Price comparisons were the most popular activity conducted online by purchasers and were considered the most useful activity to conduct online Saving time, price & model comparisons, easy access and lack of sales pressure were the most commonly mentioned advantages of researching car purchases online.