Internet Car Shopper Behavior

Ford Lincoln Mercury Digital Team

Compiled by Trace Ordiway, DMC Dallas Region

from multiple sources

05/04/2010


• 19% of all new FLM sales in 2009 can be directly traced to FLM eLeads.

• Allowing for those sales RDR’d w/out an email address, the true number is possibly 25% +/-.


76%75%

70%68%67%

64%

54%

60% 60%64%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Pe

rce

nt

AIU

s

Note: 2000-2008 data from J.D. Power and Associates New Autoshopper.com Studies. 2009 data from 2009 Web Site Performance Tools Wave 1

Automotive Internet Usage among New–Vehicle Buyers: 10-Year Trend


Automotive Internet Usage

76%

14%

10%

Automotive InternetUsers (AIUs)

Non-InternetShoppers (NISs)

Non-Internet Users(NIUs)


Cumulative Site ReachLeading to Purchase

18%23%

30%36%

47%48%

61%

70%

77%

32%

48%

62%

70%

77%

10%

87%

32%

86%

0%

25%

50%

75%

100%

6 mos. prior 5-6 mos. prior 4-6 mos. prior 3-6 mos. prior 2-6 mos. prior Anytime w/in 6mos. prior

Pe

rce

nt

Vis

itin

g

Dealers OEM Third Party

6 months prior to purchase, 1/3 of Buyers have already visited at least one OEM and Third Party Site

At 3 months prior to purchase, over 2/3 of Buyers will have visited at least one OEM and one Third Party Site

<30 days before purchase almost 90% of Buyers have visited at least one OEM and one 3rd Party Site. Almost ½ have visited a Dealer site


Ford Lincoln Mercury

2009 Consumer Survey Results


11% (237,596)Completed 2009

Sent 24 hours after lead arrives

Resent 30-45 days later


Q2 09 Sample Size: (19,269)


Internet Search Reasons

Research the price or deal

Research the style of vehicle I was looking for

Research the features or options that were available on a vehicle I

wanted

Find out about incentives/rebates

To search a specific dealer's inventory

Reduce the number of dealers I would visit/Save gas

(Top 5)

65%

61%

48%

37%

32%

28%

65%

61%

47%

43%

33%

30%

4th Qtr 2009 3rd Qtr 2009



Internet Search Reasons

Research the price or deal

Research the style of vehicle I was looking for

Research the features or options that were available on a vehicle I

wanted

Find out about incentives/rebates

To search a specific dealer's inventory

Reduce the number of dealers I would visit/Save gas

(Top 5)

65%

61%

48%

37%

32%

28%

65%

61%

47%

43%

33%

30%


Base: N11:

Only 32% lookingat inventory


Q4 09 Sample Size: (3,397) Q3 09 Sample Size: (5,741)

Purpose for Visiting Web Site

40%

29%

11%

9%

5%

3%

3%

38%

26%

10%

12%

9%

3%

2%

I was gathering information for me

I was in the market for a new vehiclein the next few months

I was doing research on new vehicles

I was in the market for a new vehiclein the next month

I was in the market for a new vehiclein the next week

I was gathering information fora friend or family

Other


Q4 09 Sample Size: (3,397) Q3 09 Sample Size: (5,741)

Purpose for Visiting Web Site

40%

29%

11%

9%

5%

3%

3%

38%

26%

10%

12%

9%

3%

2%

I was gathering information for me

I was in the market for a new vehiclein the next few months

I was doing research on new vehicles

I was in the market for a new vehiclein the next month

I was in the market for a new vehiclein the next week

I was gathering information fora friend or family

Other


Only 8.75% avg say in market w/in 30 days


Sample Size: (6,489) (6,779) (7,040) (9,061) (4,132)

56% 58% 57% 56% 56%

0%

20%

40%

60%

80%

100%

4th Qtr 2008 1st Qtr 2009 2nd Qtr 2009 3rd Qtr 2009 4th Qtr 2009

Would Like to be Contacted(% Yes)

Sample Size: (6,489) (6,779) (7,040) (9,061) (4,132)

56% 58% 57% 56% 56%

0%

20%

40%

60%

80%

100%


Would Like to be Contacted(% Yes)

Customers who have not yet received contact after 48 hours would still like to be contacted by the dealership.

Base: NO_Q2:


Sample Size: (3,397)

Currently In Market to Purchase Vehicle

Still in the market

66%

Not in the market

16%

Don't Know18%


Currently In Market to Purchase Vehicle

Still in the market

66%

Not in the market

16%

Don't Know18%

Follow Up: F2B:Follow Up: F2B1: What type of vehicle are you primarily shopping for?

Note: Totals may not add up to 100% due to rounding.

Of those who have not purchased 30-45 days after the lead generation, 2/3 are still in the market for a vehicle !



Type of Vehicle

New Only56%

Used Only7%

New or Used36%

Don't Know1%Sample Size: (2,233)

Type of Vehicle

New Only56%

Used Only7%

New or Used36%

Don't Know1%

Follow Up: F2B: Are you currently (still) in the market for a vehicle?Follow Up: F2B1: What type of vehicle are you primarily shopping for?


Nearly everyone who remains in the market

is shopping for a NEW vehicle.

Ford Lincoln Mercury Digital TeamSample Size: (1,979)

44%

37%

36%

29%

24%

22%

19%

19%

16%

11%

19%

Price

Better customer service

Information received

Selection of vehicles

Faster follow-up

Online request

More knowledgeable

Method of contact

Number of times contacted

Better financing

Other

Suggestions for Improvement4th Qtr 2009


44%

37%

36%

29%

24%

22%

19%

19%

16%

11%

19%

Price

Better customer service

Information received

Selection of vehicles

Faster follow-up

Online request

More knowledgeable

Method of contact

Number of times contacted

Better financing

Other

Suggestions for Improvement4th Qtr 2009

They want Customer Service

andInformation

Follow Up: F4D: What areas could be improved to increase your satisfaction with the <LEAD DEALER FROM E-CONSUMER DATA> experience?




Time When Likely to Purchase

4th Qtr 2009

22%

31%

26%

18%

2%

Within the next month

1 month but less than 3 months

3 months but less than 6 months

6 months - 1 year

Over 1 year


Time When Likely to Purchase

4th Qtr 2009

22%

31%

26%

18%

2%




6 months - 1 year

Over 1 year

Follow Up: F2F: When are you likely to purchase/lease this new vehicle?

18% are likely to purchase w/in the next 6-12 mos.



30 Day

Follow Up: F2F: When are you likely to purchase/lease this new vehicle? Note: Totals may not add up to 100% due to rounding.

Sample Size: (2,641) (3,115) (4,133) (3,373) (2,086)

24% 20% 20% 24% 22%

32%31% 33%

32% 31%

26%28% 27%

26%26%

16% 19% 18% 16% 18%

2% 2% 2% 2% 2%


Length of Time Until Purchase

Over 1 year

6 months - 1 year






Shopping Timeline of AIU's

8%

15%

10%

2%

18%

22%

13%13%

0%

5%

10%

15%

20%

25%

53 ormore

25 to 52 21 to 24 9 to 20 5 to 8 4 3 to 2 1 week

Weeks Before Purchase

Decide time to buy

34% = 1 month

27% = >6 months

Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.

39% = 2 – 6 months


Decide on typeof vehicle

Start visitingdealers

Decide it was time to purchase

Shop vehicleson the Internet

Start activelyresearching vehicles

Decide onmodel

Purchasenew vehicle

14.7

11.7

11.0

10.4

7.6

6.3

0

Purchase Milestones of New-Vehicle AIU's

012345678910111213141516

Weeks Before Purchase (Mean)








Decide onmodel

Purchasenew vehicle

14.7

11.7

11.0

10.4

7.6

6.3

0


Walk-Ins







Decide onmodel

Purchasenew vehicle

14.7

11.7

11.0

10.4

7.6

6.3

0


CUSTOMERS STARTSENDING ELEADS HERE

WE GIVE UP ON THEM HERE (NON-RESPONSIVE)

THEY BUY HERE



1. Our records indicate that you purchased or leased a new vehicle since you were online gathering information. Can you confirm this is correct?

2. Have you purchased or leased a vehicle since you were online gathering information?



Purchase Activity4th Qtr 2009

Lead Vehicle26%

Other FLM New7%

Other FLM Used5%

Competitor New6%

Competitor Used2%

No Purchase54%


Purchase Activity4th Qtr 2009

Lead Vehicle26%

Other FLM New7%

Other FLM Used5%

Competitor New6%

Competitor Used2%

No Purchase54%

Only 26% bought themake/model car thatthey inquired aboutinitially

54% say they are stillIn the market


Where Bought New


Lead FLM Dealer54%

Another FLM Dealer30%

Another Brand of Dealer14%

Other2%

4th Qtr 2009

Where Bought New


Lead FLM Dealer54%


Another Brand of Dealer14%

Other2%

4th Qtr 2009

More than ½ purchased from dealer who 1st received the lead

Less than 1/6th

purchased non-FLMvehicle




24%

20%

19%

18%

17%

8%

7%

6%

4%

3%

2%

9%

4%

6%

5%

4%

3%

1%

1%

1%

1%

1%

1%

3%

Better deal from another dealer

Found a vehicle I liked better at another dealer

Did not have the exact vehicle I wanted

Little or no contact from initial dealer

Bad experience with dealership personnel (salesperson, etc.)

Have purchased from other dealer in the past

Trade-in offer too low

Better location

Did not carry the brand of vehicle I wanted

Friend/Family works at another dealer

Financing issues

All other miscellaneous responses

Reasons For Purchasing From Another Dealer4th Qtr 2009

New Used


24%

20%

19%

18%

17%

8%

7%

6%

4%

3%

2%

9%

4%

6%

5%

4%

3%

1%

1%

1%

1%

1%

1%

3%

Better deal from another dealer

Found a vehicle I liked better at another dealer

Did not have the exact vehicle I wanted

Little or no contact from initial dealer

Bad experience with dealership personnel (salesperson, etc.)

Have purchased from other dealer in the past

Trade-in offer too low

Better location

Did not carry the brand of vehicle I wanted

Friend/Family works at another dealer

Financing issues

All other miscellaneous responses

Reasons For Purchasing From Another Dealer4th Qtr 2009

New Used


Sample Size: (91)

4th Qtr 2009

Primary Reason For Not Considering FLM

25%

20%

13%

12%

7%

5%

2%

1%

14%

Better Price / Better Deal from another manufacturer

Bad experience with dealership personnel

The type of vehicle I want is not available

Little or no contact from dealer

Past ownership experience

Vehicle did not meet my needs

Past dealership experience

Ford, Lincoln, or Mercurys vehicle quality

Other

Sample Size: (91)

4th Qtr 2009

Primary Reason For Not Considering FLM

25%

20%

13%

12%

7%

5%

2%

1%

14%

Better Price / Better Deal from another manufacturer

Bad experience with dealership personnel

The type of vehicle I want is not available

Little or no contact from dealer

Past ownership experience

Vehicle did not meet my needs

Past dealership experience

Ford, Lincoln, or Mercurys vehicle quality

Other

Follow Up: F2J:

2nd Place!


Q4 09 Sample Size: (504)


24%

20%

14%

10%

10%

5%

4%

4%

30%

21%

7%

19%

8%

4%

3%

6%

Poor dealership experience/No dealer follow up

Price too high/Poor value for the money

Better deal elsewhere

Lack of selection/model availability

Prefer another vehicle (unspec.)

Features/Options

Poor trade in offer

Good experience at another brand's dealership

Reasons For Competitor Purchase(Top 8)




24%

20%

14%

10%

10%

5%

4%

4%

30%

21%

7%

19%

8%

4%

3%

6%

Poor dealership experience/No dealer follow up

Price too high/Poor value for the money

Better deal elsewhere

Lack of selection/model availability

Prefer another vehicle (unspec.)

Features/Options

Poor trade in offer

Good experience at another brand's dealership

Reasons For Competitor Purchase(Top 8)


It’s not the car!



4th Qtr 2009

31%

29%

16%

12%

12%

8%

6%

6%

6%

3%

Ford

Chevrolet

Toyota

GMC

Dodge

Honda

Nissan

Mercury

Lincoln

Hyundai

Vehicles Considering(Top 10)


4th Qtr 2009

31%

29%

16%

12%

12%

8%

6%

6%

6%

3%

Ford

Chevrolet

Toyota

GMC

Dodge

Honda

Nissan

Mercury

Lincoln

Hyundai

Vehicles Considering(Top 10)

Follow Up: F2G. What vehicles are currently in your consideration set? (Net of 3 mentions)

GMC made big gains in 2009. Hyundai has now replaced Jeep in this Top 10.


1. Our records indicate that you purchased or leased a new vehicle since you were online gathering information. Can you confirm this is correct?

2. Have you purchased or leased a vehicle since you were online gathering information?


Where Bought Used

Sample Size: (398)

Lead FLM Dealer35%


Another Brand Dealer22%

Private Owner4%

Used Car Only Dealer

9%

Internet Purchase1%

Other6%

4th Qtr 2009

Where Bought Used

Sample Size: (398)

Lead FLM Dealer35%


Another Brand Dealer22%

Private Owner4%

Used Car Only Dealer

9%

Internet Purchase1%

Other6%

4th Qtr 2009

More than 1/3bought from dealer who gottheir new car lead




• Just 42% of consumers indicated they were likely to buy from same dealer as last time1

• A third of consumers willing to travel more than 20 miles to visit a dealership2

• 63% of all car shoppers submit a request for a price quote on internet3

• But only 36% of shoppers receive a price quote email response4

• Half of respondents will look for a new dealer if response from dealership is not fast enough5

• 25% of all leads don’t get answered at all 6

• Average response time on leads that do get answered is over 5 hours7

1. CapGemini 2008 Cars Online Study 2. Cobalt/Yahoo/Polk 2007 Dealer eBusiness Study3. Ibid. 4. Cobalt 2008 Automotive eShopper Survey 5. CapGemini, op.cit. 6. Cobalt 2008 Automotive eShopper Survey 7. Ibid.


• Follow-up is key: the average shopping process is three months8

• But while 70% of dealers have some follow-up, the average number of follow-up touch points is just 3.1 attempts9

• Of those who bought elsewhere, 23% did so because of bad follow-up process at dealership10

• Only 42% of all dealers called the shopper, with 32% both emailing and calling11

• A price quote response in 20 minutes or less doubled conversion rates in an OEM study12

• 60% of car buyers said if they received a competitive price and compelling reason to buy from a Dealership they would stop shopping elsewhere13

8. JD Power 2007 New Autoshopper Study

9. Cobalt 2008 Automotive eShopper Survey

10. Cobalt/Yahoo/Polk, op. cit. 1

11. Cobalt 2008 Automotive eShopper Survey

12. Cap Gemini, op. cit.

13. Baumberger, Kurt, Adapt or Die 2010


• They’re fickle• They have options• They’ll put you on trial vs. competition• They want a price quote-- fast• They want a quick follow-up call• They want to be courted for their business• Some are ready to buy now; others will take time but will

eventually buy


The Internet shopper is not necessarily looking for a cheaper price – but they are most definitely looking for an alternative shopping experience.


END

Education

Internet Car Shopper Behavior