Ten Million Consumers to Initiate an Auto Transaction Online by 2004
5 October 2000
Ten Million Consumers to Initiate an Auto Transaction Online by 2004; Gomez Releases Key Findings on Online Auto Buying; Market Opportunity Estimated At $200 Billion in 2004
CHICAGO--Oct. 4, 2000--According to a study released today by Gomez, the Internet quality measurement firm, the market opportunity for online auto sales is growing substantially. This year alone, it is estimated that 1.3 million used vehicle sales and 1.8 million new vehicle sales will be initiated online. By 2004, Gomez forecasts that ten million consumers will be initiating an automobile transaction online annually, translating to nearly $200 billion. The Gomez study, The State of Online Auto Buying 2000, presents a detailed analysis of the various auto buyer segments, and makes strategic and tactical recommendations to the major constituencies in the automotive sector - manufacturers, dealers, online vehicle buying services and suppliers. These research findings will be released and presented at eAutoWorld in San Diego, October 3-5, 2000."The Internet is becoming more and more important as a channel to reach prospective auto buyers and increasingly is a critical element in the actual transaction process," explains Dawn McGreevey, analyst at Gomez. "Online auto sites, both third-party and manufacturer, need to be sure they understand customers' needs and tailor their offerings accordingly in order to successfully capitalize on this growing market. Major market players may need to readjust or realign their existing business models in order to optimize customer acquisition. This execution will be key to their success."
The State of Online Auto Buying 2000 is an extensive research report that identifies and evaluates key trends in the rapidly evolving automotive market. Auto professionals can learn from this analysis and consequently target consumers more effectively. The study surveyed more than 12,000 U.S. Internet users to identify different auto customer segments that exist on the Internet today and examine their defining characteristics, such as demographics, behaviors, preferences, price sensitivity, and future purchase intent. The four segments identified in this study include Initiators (consumers that have already used the Internet to initiate a vehicle purchase), Short-Term New Vehicle Intenders (consumers intending to buy a new vehicle within 6 months), Short-Term Used Vehicle Intenders (consumers intending to buy a used vehicle within 6 months), and Long-Term Intenders (consumers intending to buy a vehicle outside of 6 months). Initiators and Short-Term Intenders represent roughly 16 percent of the adult Internet population who intend to purchase a vehicle.
The State of Online Auto Buying 2000 points out that understanding these consumers is imperative, especially as individuals increasingly turn to the Internet in the search of their next vehicle. The study also reveals that the majority of prospective buyers will use online vehicle buying services instead of auto manufacturer sites for their purchase.
"Of those consumers that have already used the Internet to initiate a vehicle purchase, 56 percent used an online buying service, whereas only 44 percent used a manufacturer Web site," continued Ms. McGreevey. "The real challenge for manufacturers will be to maintain brand strength and enhance their sites' current offerings. In this way, they can attract consumers to their sites and away from the third-party vendors."
Ms. McGreevey will discuss The State of Online Auto Buying 2000 in more detail at her session entitled "Leveraging Consumer Buying Habits & Preferences To Your Company's Advantage" at eAutoWorld on October 5th at 8:45 AM. To learn more about this report, including how to order it, please contact Tim King at 781.257.2092.
