Auto Customer Satisfaction High During Economic Uncertainty; Study Debunks Myth About Gender Differences in Auto-Buying Experience

Study Debunks Myth About Gender Differences in Auto-Buying Experience

MCLEAN, Va., Dec. 13 -- Although the American auto industry is experiencing some economic uncertainty, customers continue to positively rate their car-buying experience. Auto dealers are serving as the industry's "shock absorbers" to maintain balance in a turbulent marketplace, according to Automotive Retailing Today (ART), a coalition of all major automobile manufacturers and dealer organizations.

"Unlike economic and market turmoil in other industries where the customer has unwillingly suffered, auto dealers appear to have cushioned the customer from the effects of a shifting marketplace," said ART Chairman Carter Myers. "This study confirms that dealers continue to meet consumer demands and maintain high levels of customer satisfaction."

The new research, commissioned by ART and conducted by Harris Interactive(R) between July and August 2006, surveyed 932 new car buyers, 108 shoppers, 694 non-shoppers and 101 professionals involved in automotive media.

  Findings include:

  * 91 percent of new car purchasers were satisfied (extremely, very or
    somewhat) with their purchase experience;

  * Minority vs. non-minority overall shopping experiences remain positive
    (85 percent versus 84 percent);

  * Improved satisfaction with financing, particularly among minorities;

  * Women rate the purchase experience highly (87 percent extremely, very,
    or somewhat positive experience / 92 percent extremely, very, or
    somewhat satisfied with their overall experience) and exhibit
    confidence in buying vehicles; and

  * Shopping multiple dealerships is a function of seeking the best price
    (46 percent) or obtaining a specific vehicle (66 percent).

  Women's Buying Experience

By gathering scientific data about customers, the study easily debunks old myths about gender differences in the auto-buying experience. It is a misperception that most women bring their spouses or partners to showrooms out of apprehension or lack of confidence. Rather, women bring their spouses or partners to shop with them because it is a family investment requiring serious deliberation.

The most-cited reasons why the women who said they brought a man with them did so focus on lifestyle:

  * Man was their spouse/significant other (39 percent);
  * Man was more knowledgeable (15 percent);
  * We share the decision-making (13 percent); and
  * We shop/do things together (8 percent).

Less than 1-in-10 women who brought a man with them said they did so out of discomfort with the dealership process.

Consumers Report Positive Experience

Since ART began its biennial Attitudes and Perceptions surveys in 1998, customers have consistently demonstrated satisfaction with their purchase experience. Ninety-one percent of new car purchasers are satisfied (extremely, very or somewhat) with their dealership, while 84 percent of new car purchasers report a positive experience overall.

"While the satisfaction levels are high, dealers are not resting on their laurels," notes Myers. "We still strive to improve. One of the keys to this is recruiting highly-qualified employees to improve our professionalism. The other is the need for the customer to be well educated before visiting the dealership. An educated consumer makes the transaction efficient and smooth for all parties."

  Areas of continued concentration within the industry include:

  * Attracting quality employees (there are currently approx. 105,000
    available jobs in the auto retailing industry);
  * Focusing on improved training and professionalism;
  * Building communications with customers by streamlining transactions,
    providing more information on websites, education campaigns, etc.; and,
  * Increasing transaction transparency.

The Internet continues to aid consumers in the decision-making process and has become a major tool for consumers. Half (51 percent) of new car buyers have researched online and the number of consumers who check prices online continues to increase. A majority among those under 45 years old (63 percent) use the Internet to gather vehicle purchase information.

Media Perception of the General Public's Experience

The perception gap between customer experiences and the media perceptions of customer experiences is closing, yet it remains large. There is a 35 percentage point gap between the positive experience (extremely, very, somewhat positive) the media perceives of the consumers' shopping (49 percent) versus what the consumer reports (84 percent). The media's personal satisfaction with their experience in purchasing a new vehicle tracks the general population (91 percent extremely, very, somewhat satisfied), although more than half (55 percent) of journalists believe their experience is unique.

Dealers Offer Advice on Making Your Car Buying Experience Pay-Off

Separate from the survey findings, there are many excellent resources that already exist for consumers looking to buy a car. The following checklist is what dealers suggest to make the car buying experience pay-off.

  * Do Your Homework: An informed customer increases bargaining power.
  * Shop for Financing: Know your eligibility, shop around and seek pre-
    approval. Rates can be negotiable.
  * Research Options: What extras do you really need? What is the additional
    cost?
  * Educate Yourself on Rebates and Incentives: Paying attention to ads and
    factory incentives can help save money.
  * Understand Trade-in Values:  Values of vehicles vary day-by-day and by
    dealership.
  * Test-drive the Vehicle:  Test drive the exact type of vehicle you want
    to purchase.
  * Set a Realistic Budget: Before you enter negotiations, set a realistic
    limit for yourself.
  * Make Sure Everything is Agreed to in Writing: For the protection of both
    you and the dealer, put everything in writing and review everything
    before signing it.

"The auto industry is one of the most competitive industries in the world," adds Myers. "With so many rivals vying for the car-buyer's business, it's the educated customer who ultimately benefits. Informed consumers are uniquely positioned to negotiate with strength and confidence."

Since 1998, Automotive Retailing Today has been measuring perceptions of the auto-retailing marketplace using a unique survey that interviews buyers, shoppers, non-shoppers and the media. For a copy of the complete survey and for past surveys, visit: http://www.autoretailing.org/research.

Methodology:

These surveys were conducted by telephone within the United States by Harris Interactive on behalf of Automotive Retailing Today (ART) between July 7 and August 24, 2006 among new car buyers who purchased or leased a new car in the past 18 months (N=932), adults who shopped for but did not purchase a lease a new car in the past 18 months (N=108), adults who did not shop for a new car in the past 18 months (N=694) and automotive media (N=101) (aged 18 and over). Figures for race/ethnicity, and region were weighted in the consumer surveys where necessary to bring them into line with their actual proportions in the population.

With pure probability samples of 932, 108, 694 and 101 one could say with a ninety-five percent probability that the overall results would have a sampling error of +/- 3, +/- 9, +/- 4 and +/- 10 percentage points, respectively. Sampling error for data based on sub-samples would be higher and would vary. However, that does not take other sources of error into account. These telephone surveys are not based on a probability sample and therefore no theoretical sampling error can be calculated.

About ART

ART, a coalition of all major automobile manufacturers and dealer organizations, works to promote a better understanding of the retail side of the automotive industry and to build stronger customer relationships through shared research and development programs. ART attempts to dispel outdated perceptions of franchise auto dealerships and automotive careers. For more information, visit http://www.autoretailing.org/ or http://www.autocareerstoday.org/

About Harris Interactive

Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides research-driven insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world's largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiary Novatris in France and through a global network of independent market research firms. The service bureau, HISB, provides its market research industry clients with mixed-mode data collection, panel development services as well as syndicated and tracking research consultation. More information about Harris Interactive may be obtained at http://www.harrisinteractive.com/.