J.D. Power and Associates Reports: Tire Brand Recommendations Not Necessarily Tied to Salesperson Affiliation
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WESTLAKE VILLAGE, Calif., Aug. 19, 2009; The J.D. Power and Associates Retail Tire Experience Report compiles the findings of more than 4,000 anonymous mystery shops by telephone at 2100 different retail tire locations during 2008 and 2009. The report examines which tire brands are recommended by salespeople at major tire retailers and how effectively retailers handle telephone shoppers.
Telephone shopping is a critical element of success for both tire manufacturers and retailers. From information gathered over the phone, a large proportion of shoppers not only decide which store they will purchase from but also choose the specific tire brand they will purchase prior to visiting a retail location.
Prior to contacting a retailer, most customers view tires as a commodity and have not decided on a specific brand or model. Accordingly, the sales staff at the tire retailers has a unique opportunity to influence brand choice in a way unlike salespeople in other industries. Therefore, for tire manufacturers, improving recommendation rates among retail salespeople is one of the most effective means of increasing market share.
J.D. Power and Associates Tire Retail Experience Report findings include:
-- The study finds that salespeople at manufacturer-affiliated stores
such as Goodyear and Firestone typically recommend a tire affiliated
with that manufacturer. For example, Firestone salespeople
recommended Firestone 49 percent of the time and Bridgestone 28
percent. At independent retailers salespeople often direct customers
towards the brand that is their personal preference. This results in
no single brand dominating the recommendation rates at most
independents. Increasing the recommendation rates at the independent
tire retailers is a key metric for manufacturers desiring to increase
market share.
-- Reasons that salespeople recommend a particular tire brand vary
considerably by brand and manufacturer. For example, salespeople who
recommend either Goodyear or Michelin brands most frequently focus on
performance and handling. However, compared to Goodyear, Michelin
recommenders are nearly twice as likely to stress attributes related
to quiet ride and gas mileage. Goodyear recommenders tend to focus on
price, value, and special sales or promotions, compared with
salespersons who recommend Michelin tires.
-- Each retailer's price quote is influenced by the tire being
recommended; it does not necessarily mean that the retailer charges a
higher price when the model of tire is held constant. But, this
subtle distinction is often lost on consumers who frequently look at
tires as a commodity purchase and are calling stores to compare
prices.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at http://www.mcgraw-hill.com/.
