28
1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

Embed Size (px)

Citation preview

Page 1: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

1

Automotive Industry Survey – Millennials’ Technology PreferencesMay 2010

Page 2: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

2

This research was designed to understand how Millennials feel about the technology features and options offered in cars and how they use technology to research potential cars for purchase.

This study also explores Millennials’ attitudes towards technology in the workplace and what they are or are not using.

Introduction

Research MethodologyFrom April 6th – 12th 2010, Wakefield Research conducted 1,149 online interviews among American Millennials (ages 18-29 years old).

The margin of error for this study is +/- 2.89 at the 95% confidence level. Margins for sub-audiences are slightly higher.

Page 3: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

3

Key Findings•Intimidating Buyer Experience: For the majority of Millennials, buying a car is the most intimidating purchase they can make and many dislike at least one part of the car buying experience. Most commonly, they don’t like relying on sales people to see vehicles, nor the lack of transparency when speaking with the dealer.

•Expert Consumers: Millennials see themselves as car experts and conduct thorough research on the vehicles they’re considering. Nearly three in four will know what type, what features and what options they want before they ever step foot in the dealership.

•Improving the Dealer/Consumer Relationship: The majority of Millennials actually would like a relationship with their car dealer. The most direct way to improve the relationship and make the sales process easier is to provide access to information. This enhancement impacts consumer decision. Having access to research and information at a dealership will motivate Millennials to seek out specific locations over others.

Page 4: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

4

Key Findings

•Leveraging Tech to Bring Consumers Back to the Dealership: Millennials will make additional trips back to the dealerships if it means receiving free software updates for their car’s technology.

•High-Tech Cars: Millennials also want the technology in their cars to be as advanced as their smartphones. More than half of these consumers believe that advanced features, such as GPS and a port to plug in their digital music players, should be standard options.

Page 5: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

5

Detailed Research Findings

Page 6: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

6

Assessing the Dealer/Consumer Relationship

Page 7: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

7

Buying a car is one of the most intimidating purchases someone can make. For Millennials, negotiating with a dealer can be a difficult process.

Millennials are attempting to relieve some of the anxiety associated with the buying process by conducting their own research and deciding on the type of car, features and options they want before stepping into a dealership. They no longer believe that the dealer is the only channel to purchase a vehicle.

Section Summary

Page 8: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

8

Buying a Car is Intimidating

How strongly do you agree or disagree with the following statement – buying a car is one of the most intimidating purchases someone can make.

More than 2 in 3 Millennials believe that buying a car is one of the most intimidating purchases someone can make. Women, in particular, find the experience stressful.

33% disagree

67% agree

Page 9: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

9

Millennials Prefer a Dentist to a Car Salesman

Which of the following is more painful?

Today’s car buying process is something that many consumers dread. More than half of Millennials feel that negotiating with a car salesman is more painful than going to the dentist.

Page 10: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

10

Dealerships Make the Buying Process Harder

When it comes to buying a car, do car dealerships generally make that process harder or easier?

Millennials view dealerships as more of an obstacle than a benefit. Seven in ten consumers, and especially women, feel dealerships are making the purchasing process harder than it should be.

70% saying harder

30% saying easier

Page 11: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

11

Millennials are arming themselves with information before buying. On average, they spend 16 hours seeking out information before entering into the car buying process.

Millennials Spending the Time to Research

The last time you purchased a car, approximately how many hours of research did you do, if any, before making the purchase?

Page 12: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

12

Decisions All Made Pre-Dealership Visit

How strongly do you agree or disagree with the following statement – I’ve already made my decision on the car model, features, and options I want to buy even before I step into a dealership.

After two full workdays of research, nearly 3 in 4 have identified which car, features and options they want before they ever step foot into a dealership.

74% saying agree

25% saying disagree

Page 13: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

13

I Am the Car “Expert”

How strongly do you agree or disagree with the following statement – with all the research I do on my own before stepping into a dealership, I am just as much of an “expert” on some models and features as the dealers at the showrooms.

As a result of hours of research, Millennials identify themselves as car “experts.” More than half believe they are as much of an expert on the specific model they hope to buy as the dealers in the showroom.

58% saying agree

42% saying disagree

Page 14: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

14

Improve the Purchasing Process

Page 15: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

15

Millennials are frustrated with the sales process – particularly the secrecy and lack of access to information once they get into the dealership.

Providing access to information makes this process easier for them. Offering special services, such as a computer to get research online while in the dealership, will motivate Millennials to seek out specific locations.

Section Summary

Page 16: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

16

Frustrations with the Sales Process

Which of the following do you dislike about the sales process when buying a car?

Millennials

Relying on sales people to show me a particular vehicle and to answer my questions

45%

Not being able to see what is on the car dealer’s computer screen 41%

Not having access to private conversations between the dealer and his manager

38%

Being unable to easily access any research you conducted before deciding to buy a car

26%

Sitting across a desk from the car dealer 24%

Being unable to access information abut the car on the web 24%

It starts with the sales process. Nearly 9 in 10 (85%) say they dislike at least one part of the car buying process.

Relying on sales people to show them a particular vehicle is the biggest frustration. This is followed by issues with secrecy – not being able to see the dealer’s computer screen and not having access to private conversations between the dealer and manager caused strife as well.

Page 17: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

17

Opportunity to Improve the Relationship

How strongly do you agree or disagree with the following statement – it is important to establish a real relationship with my dealer when buying a car.

There is hope that relations can be improved. The majority of Millennials want to establish a real relationship with their car dealer. This presents an opportunity for car dealers to connect with receptive Millennials.

67% saying agree

34% saying disagree

Page 18: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

18

Millennials Want Transparency & Fairness

How strongly do you agree or disagree with the following statement – having convenient internet access in the dealership during the buying process would make things seem more transparent and more fair.

To improve the dealer/consumer relationship, focus on what is most important to consumers – access to information.

Having convenient access to the internet during the buying process will make the whole experience more transparent and fair for Millennials.

84% saying agree

16% saying disagree

Page 19: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

19

Provide Access & Info to Make Buying Process Easier

Which of the following, if any, would make buying a car easier or more enjoyable?

Millennials

Having access to any research you conducted while at the salesman's desk 53%

Having access to the internet when at the salesman's desk 47%

Being able to chat with a friend or family member via IM during the negotiation 23%

Being able to video conference with a friend or family member during the negotiation

20%

None of these 20%

Access to information – in any form – is key. Having access to research conducted while at the car dealer’s desk and access to the internet will help reduce the anxiety of buying a car for Millennials.

Page 20: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

20

Offer Special Services to Draw In Millennials

How likely would you be to search out a specific car dealership if you knew that it had the following tool available to its customers – …?

Offering access to special services will also motivate visitation. Millennials are willing to seek out a specific dealership if certain services, such as online access and self touch devices that lead them through the buying process, are available at a specific dealer.

Page 21: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

21

Special Services Do Entice Visitation

Would you be willing to travel further to visit a dealership that offered these specific services?

Millennials are willing to travel farther if special services are offered at specific locations. Three in four say they would be likely to do so.

Yes No

Page 22: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

22

Modern Technological Options a Must in Cars

Page 23: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

23

Millennials want high-tech cars. They think the technology in their vehicles should be as advanced as their cellphones.

This desire can be leveraged to bring them back into dealerships more regularly. For example, Millennials are willing to come back in if additional software updates are available for their cars.

Section Summary

Page 24: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

24

Technology in Cars Needs to Be Advanced

Which of the following devices best represents the state of the technology, you’ll find in most cars today? Would you say that technology is most like…?

Access to information and technology continue to be a key part of the solution even after the purchase process. The majority of Millennials believe the technology in their cars should be as advanced as a smartphone.

Page 25: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

25

GPS - The New “Standard” Option

Which of the following, if any, do you feel should be offered as a standard option on your next car?

Millennials

GPS 67%

A port to plug in your digital music player 54%

Software that tracks fuel consumption 44%

Bluetooth 36%

Satellite radio 32%

An in-car hard drive to store media 21%

None of these 8%

GPS is King. More than two in three Millennials want GPS as a standard option in their next car . More than half prefer a port to plug in their portable music player. Interestingly, software that tracks fuel consumption ranks as the third most desirable standard option.

Page 26: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

26

Millennials Will Make Additional Trips to a Dealership

Would you be willing to make one additional visit per year to your car dealership if it meant you received free software updates to your car’s technology – such as GPS?

81% saying yes

19% saying no

Leverage the love Millennials have for technology and draw them back into dealerships more regularly by offering free software updates for their car’s technology – such as GPS upgrades. The majority will go back for an additional visit if this software is offered.

Page 27: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

27

Millennials Will Pay for Car Apps

Which of the following would you prefer – when purchasing a car?

Millennials are open to paying for new car software and applications. They are willing to pay on an individual basis – allowing them the freedom to select which apps or features they want and when to upgrade. Nearly as many would just prefer to pay a one time lump sum for unlimited access.

Page 28: 1 Automotive Industry Survey – Millennials’ Technology Preferences May 2010

28