A Consumer Look AtA Consumer Look At
Dealer Web Sites:Dealer Web Sites:
A Marketing Research StudyA Marketing Research StudyWave IIWave II
Copyright © 2000, Friedman-Swift Associates. All Rights Reserved.
Conducted by:
Cyber Car & AutoMark
FRIEDMAN-SWIFT ASSOCIATES
in conjunction with
Friedman-Swift Associates (October 2000)
A Consumer Look at Dealer Web Sites:A Marketing Research Study
STUDY METHODOLOGY
• 1,439 shoppers who visited The DealerNet home page (www.dealernet.com) were surveyed in June, July and August, 2000.
• Margin of error is plus or minus 2.58%, at a 95% confidence level.
Profile of Survey Respondents
A Consumer Look At Dealer Web Sites
Friedman-Swift Associates (October 2000)
21%
11%14% 14%
27%
13%
0%
20%
40%
Within thenext month
One to twomonths
from now
Three to sixmonths
from now
Sevenmonths toone yearfrom now
Over a yearfrom now
Recentlymade a
purchase orlease
Profile of Survey Respondents
Timeframe of Purchase Horizon
Friedman-Swift Associates (October 2000)
New vs. Used Vehicle Shoppers
Profile of Survey Respondents
Shopping for both new and used vehicles
38%
Shopping fora used vehicle
24%
Shopping fora new vehicle
38%
Friedman-Swift Associates (October 2000)
Average: $55,4709%
23%
15%
10%8%
16%
20%
0%
20%
40%
Under $20,000
$20,000 to under $40,000
$40,000 to under $60,000
$60,000 to under $80,000
$80,000 to under $100,000
$100,000 and over
Declined to answer
Household Income Distribution
Profile of Survey Respondents
Friedman-Swift Associates (October 2000)
Average age: 40 years14%
37%
25%
19%
4%1%
0%
25%
50%
Under 24 years
25 - 39 years
40 - 49 years
50 - 64 years
65 years and over
Declined to answer
Age Distribution
Profile of Survey Respondents
Friedman-Swift Associates (October 2000)
Female47%
Male53%
Gender
Profile of Survey Respondents
Content of Dealer Web Sites
A Consumer Look At Dealer Web Sites
Friedman-Swift Associates (October 2000)
What Should a Dealer Web Site Contain?
5%
5%
4%
26%
26%
14%
69%
69%
83%
0% 20% 40% 60% 80% 100%
Quick Quoteprices/online price
quotes
MSRP & DealerInvoice pricecomparisons
Prices of vehicles ininventory
Price Information
Veryimportant
Somewhatimportant
Not at allimportant
Content of Dealer Web Sites
Friedman-Swift Associates (October 2000)
4%21%
55%
65%
67%
74%
75%
16%
8%
6%
5%21%
27%
27%
29%
0% 20% 40% 60% 80% 100%
Lists of used car and truck inventory byvehicle
Lists of new car and truck inventory byvehicle
Pictures of new and used vehicles at thedealership
Options available on a new vehicle
Descriptions of new and used vehiclesin stock
Inventory Information
Veryimportant
Somewhatimportant
Not at allimportant
Content of Dealer Web Sites
What Should a Dealer Web Site Contain?
Friedman-Swift Associates (October 2000)
13%36%
30%
35%
45%
46%
51%
31%
28%
19%
15%40%
36%
37%
39%
0% 20% 40% 60% 80% 100%
Online credit application
Pre-qualification for financing
Loan payment estimate calculator
Extended warranty information
Online trade-in value estimatecalculator
Financing & Warranty Information
Veryimportant
Somewhatimportant
Not at allimportant
Content of Dealer Web Sites
What Should a Dealer Web Site Contain?
Friedman-Swift Associates (October 2000)
Content of Dealer Web Sites
What Should a Dealer Web Site Contain?
38%
38%
46%
50%
15%
15%
19%
18%
36%
40%
44%
44%
0% 20% 40% 60% 80% 100%
Links to N.A.D.A.Used Car Guide
Links to onlinepublications like
Consumer Reports
Links to KelleyBlue Book
Links to "LemonCheck" Web sites
Links to Consumer Information
Veryimportant
Somewhatimportant
Not at allimportant
Friedman-Swift Associates (October 2000)
39%
38%
47%
23%
33%
20%
0% 20% 40% 60% 80% 100%
Links to autoinsurance
information
Links to automanufacturers' Web
sites
Links to Other Sites
Veryimportant
Somewhatimportant
Not at allimportant
Content of Dealer Web Sites
What Should a Dealer Web Site Contain?
Friedman-Swift Associates (October 2000)
32%
37%
34%
40%
25%
17%
22%
16%
43%
45%
45%
44%
0% 20% 40% 60% 80% 100%
Service reminders e-mailed to you
Printable servicecoupons
Ability to makeservice appointments
online
Service departmenthours of operation
Parts & Service Support
Veryimportant
Somewhatimportant
Not at allimportant
Content of Dealer Web Sites
What Should a Dealer Web Site Contain?
Friedman-Swift Associates (October 2000)
12%
41%
38%
47%
50%
12%
0% 20% 40% 60% 80% 100%
Model reviews
Side-by-sidevehicle
comparisons
Vehicle Information
Veryimportant
Somewhatimportant
Not at allimportant
Content of Dealer Web Sites
What Should a Dealer Web Site Contain?
Friedman-Swift Associates (October 2000)
Content of Dealer Web Sites
What Should a Dealer Web Site Contain?
41%
38%
22%
27%
32%
35%
37%
35%
27%
19%
41%
46%
0% 20% 40% 60% 80% 100%
Real-time chatservices
Vehicles brought tohome/office for test
drive
Sales paperworkcompleted viaFederal Express
Interactivedirections to the
dealership
Dealer Services
Veryimportant
Somewhatimportant
Not at allimportant
Friedman-Swift Associates (October 2000)
40%50%50%
83%75%
51%
0%
50%
100%
Prices ofvehicles ininventory
Descriptionsof new and
used vehiclesin stock
Online trade-in valueestimatecalculator
Side by sidevehicle
comparisons
Links to"lemon
check" Websites
Servicedepartment
hours ofoperation
Very Important Ratings Linear (Very Important Ratings)
Content of Dealer Web Sites
Relative Importance of Key Features
Friedman-Swift Associates (October 2000)
New Vehicle Configurator
Content of Dealer Web Sites
When asked to gauge the importance of dealer Web sites offering the ability to specify the exact new vehicle desired, determine MSRP and Dealer Invoice prices, search for the closest match in inventory and provide an online price quote the following responses emerged:
• 78% said very important• 21% said somewhat important
• 2% said not important
Asked only of new vehicle shoppers
Friedman-Swift Associates (October 2000)
Where Web Sites LoseNew Vehicle Shoppers
Content of Dealer Web Sites
57%
80%
84%
0% 20% 40% 60% 80% 100%
Picture of thevehicle
Options andaccessories of the
vehicle
Price of thevehicle
Percentage of shoppers who would not contact a dealership if its Web site did not contain the items mentioned
Friedman-Swift Associates (October 2000)
Where Web Sites LoseUsed Vehicle Shoppers
Content of Dealer Web Sites
66%
73%
84%
87%
0% 20% 40% 60% 80% 100%
Picture of thevehicle
Options andaccessories of the
vehicle
Mileage of theused vehicle
Price of thevehicle
Percentage of shoppers who would not contact a dealership if its Web site did not contain the items mentioned
Price Information Sought by
Dealer Web Site Shoppers
A Consumer Look At Dealer Web Sites
Friedman-Swift Associates (October 2000)
Price Information Sought forNew Vehicles
• Ability to generate an online price quote 75%
• Dealer Invoice price 74%
• Special prices for Internet shoppers 68%
• Manufacturer’s Suggested Retail Price (MSRP) 65%
• Prices similar to those found in dealer newspaper
advertisements 41%
Sum of percents may exceed 100% due to multiple responses
Price Information Sought by Web Site Shoppers
Asked only of new vehicle shoppers
Friedman-Swift Associates (October 2000)
Price Information Sought forUsed Vehicles
• Kelley Blue Book prices 74%
• The ability to generate an online price quote 70%
• Special prices for Internet shoppers 66%
• N.A.D.A. Official Used Car Guide prices 65%
• Prices similar to those found in dealer newspaper
advertisements 48%
Sum of percents may exceed 100% due to multiple responses
Price Information Sought by Web Site Shoppers
Asked only of used vehicle shoppers
Dealer Interactions with
Web Site Shoppers
A Consumer Look At Dealer Web Sites
Friedman-Swift Associates (October 2000)
Dealer Web site shoppers who e-mail a dealership requesting specific information about a vehicle prefer the dealer to respond
by:
Postal mail6%
Telephone6%
No preference5%
E-mail82%
Fax1%
Dealer Interactions with Web Site Shoppers
Preferred Response to Information Requests
Friedman-Swift Associates (October 2000)
1 to 6 hours17%
Two days19%
Three days or more
5%
One day50%
Less than 1 hour8%
Dealer Interactions with Web Site Shoppers
Acceptable Length of Time for Dealers
to Respond to Requests
Friedman-Swift Associates (October 2000)
Two days13%
Three days or more15%
One day31%
Dealer never responded
15%
1 to 6 hours18%
Less than 1 hour8%
Dealer Interactions with Web Site Shoppers
Actual Dealer Response Time
Asked only of respondents who requested information from a dealership
Friedman-Swift Associates (October 2000)
8%
17% 19%
5%
15%
50%
8%
18%
31%
13% 15%
0%
30%
60%
Less than 1hour
1 to 6 hours One day Two days Three daysor more
Dealernever
responded
Acceptable dealer response time Actual dealer response time
Dealer Interactions with Web Site Shoppers
Actual Response Time Comparedto Expectations
Friedman-Swift Associates (October 2000)
40%
60%
Requested an online price quote
Did not request an online price quote
• Of those Web site shoppers who asked for an online price quote, 59% received one from a dealer.
• Conversely, 41% did not.
Dealer Interactions with Web Site Shoppers
Online Price Quotes
Friedman-Swift Associates (October 2000)
36%47%
53%64%
0%
45%
90%
Income less than $40,000 Income greater than $80,000
Requested an online price quoteDid not request an online price quote
Dealer Interactions with Web Site Shoppers
Online Price Quote Requestsby Household Income
Friedman-Swift Associates (October 2000)
43%36%
64%57%
0%
45%
90%
Male Female
Requested an online price quoteDid not request an online price quote
Dealer Interactions with Web Site Shoppers
Online Price Quote Requests by Gender
Friedman-Swift Associates (October 2000)
Sum of percents may exceed 100% due to multiple responses
Dealer Interactions with Web Site Shoppers
How Online Price Quotes Will be Used
Asked of shoppers who had requested an online price quote
• To compare it to prices given by other dealerships to
see whether it is the best price available 68%
• To compare against what you can afford 58%
• To compare prices of one make of vehicle to another50%
• As a negotiating tool when you visit the dealership that
provided you with the price quote 44%
• To compare it to prices listed by an independent source
such as Kelley Blue Book or Edmunds 41%
• As a negotiating tool to get a better price at another
dealership 36%
Online Referral Services
A Consumer Look At Dealer Web Sites
Friedman-Swift Associates (October 2000)
Have used an online referral service40%
Have not used an online referral service60%
Online Referral Services
Online Referral Service Usage
Friedman-Swift Associates (October 2000)
Online Referral Services
Preferences Between Dealer Web Site Versus Online Referral
Service
Prefer dealer Web site
61%
Prefer online referral service39%
A Consumer Look At Dealer Web Sites
Research highlights can be found at:
www.friedmanswift.comSpecific questions can be addressed to: