Auto Shoppers Continue Internet Intensity
19 April 2000
Auto Shoppers Continue Internet Intensity; Polk Study Also Finds Buyers of European Models Lead the Pack
NEW YORK, April 19 Automotive consumer Internet usage and
vehicle shopping increased significantly from the 1998 to the 1999 model
years, according to findings released today by The Polk Company.
General Internet usage by automotive shoppers increased nearly 12 percent,
from 51.6 percent to 57.7 percent, while Internet vehicle shopping for new
vehicles increased by nearly 27 percent, from 26.9 percent to 34.1 percent,
compared to 1998 model year figures. Polk's study, the Automotive Internet
Activity Analysis, is based on a mail survey of more than 27,500 new vehicle
owners who acquired a new vehicle between October 1, 1998 and September 30,
1999.
Findings also indicate that of the Designated Market Areas (DMAs)
registering the largest number of new vehicle buyers during the 1999 model
year, Washington, D.C. ranks first in general Internet usage and vehicle
shopping. Nearly three-quarters of new vehicle buyers in Washington, D.C.
indicated that they use the Internet on an ongoing basis, and more than half
specifically used the Internet to shop for their new vehicle purchase.
INTERNET USAGE BY SELECTED MARKET AREAS
General Internet Internet Usage Internet Usage
Usage By New For Vehicle For Vehicle
Vehicle Buyers Shopping Buying#
Washington, D.C. 74.0%* 52.5%* 5.7%
Los Angeles 69.6% 44.5% 6.2%*
New York 64.7% 36.0% 3.9%
U.S. Average 57.7% 34.1% 3.0%
Source: Polk Automotive Internet Usage Study -- 1999 Model Year
#Purchased through Internet buying service. *Leader
Los Angeles ranked second among the DMAs in new vehicle buyers using the
Internet to shop for their new vehicle, while New York finished eighth at 36
percent. New Yorkers ranked above the national average in general Internet
usage, vehicle shopping and buying.
Although Washington, D.C. had the highest percentage of general Internet
users and vehicle shoppers, Los Angeles led in terms of Internet buyers.
Nationally, almost three percent of new vehicle buyers purchased their new
vehicle through an Internet vehicle-buying service, such as AutoByTel. More
than six percent of new vehicle buyers in Los Angeles, however, purchased
their new vehicle on-line -- double the national average.
"The ultimate potential of Internet Buying Services continues to be a
mystery in the automotive industry," said Karen Piurkowski, Polk's Director of
Loyalty. "While many manufacturers and dealers are worried about the impact
these types of services will have, only a small percentage of U.S. new vehicle
buyers are actually participating in these types of programs. Our research
shows that, although there has been growth in the percentage of consumers
using new vehicle buying Internet services over the past few years, the figure
is still much lower than the number of consumers buying through traditional
purchasing channels."
In addition to examining Internet trends, the Polk study also compared the
importance of several other information sources for automotive Internet
shoppers. The test drive, experience with a previous vehicle and consumer
magazines were found to be the three most important information sources to
automotive Internet shoppers nationwide in their new vehicle searches.
Analysis by market area indicates this also holds true within Washington, D.C.
and New York. Surprisingly, awards for superior performance held the third
position in Los Angeles, relegating consumer magazines to fourth place and
demonstrating, once again, that awards still carry value in L.A.
Polk's data also indicate that success rates in terms of on-line customer
interaction vary by automotive manufacturer. Overall, European manufacturers
were found to have the highest proportion of both general Internet users and
vehicle shoppers. Specifically, four of the top five manufacturers were
European, with Saab topping the list in terms of Internet users. Volvo and
BMW -- both with North American headquarters located in the New York area --
had the highest proportion of Internet vehicle shoppers.
INTERNET USE/VEHICLE SHOPPING RATES BY MANUFACTURER
General Internet Users Internet Vehicle Shoppers
1. Saab 83.8% 57.0%
2. BMW 79.6% 57.9%
3. Isuzu 76.9% 50.6%
4. Volvo 76.8% 57.9%
5. Volkswagen/Audi 75.5% 54.5%
U.S. Average 57.7% 34.1%
Source: Polk Automotive Internet Usage Study - 1999 Model Year
"Our findings indicate that the Internet will continue to grow in
importance for new vehicle buyers during their shopping process, particularly
for shoppers of upscale brands," said Piurkowski. "The challenge to the
manufacturer will be to provide a Web site that is easily accessible and
provides the needed information to shoppers who have access to so many
different sources of information on the Internet. Providing additional
services to Internet users after the initial new vehicle sale will help the
manufacturers and dealers to secure future business by building stronger bonds
with their customers," she added. "Online scheduling of service visits, e-
mail communications to inform customers of sales, and just simple, friendly
correspondence will help to build loyal customer bases."
Attitudinal data for the Automotive Internet Activity Analysis was
obtained from Polk's Manufacturer Loyalty Excelerator(TM) product. Introduced
to the automotive industry in 1995, Polk's Manufacturer Loyalty
Excelerator(TM) is used to determine Polk's Automotive Loyalty Award winners,
to provide loyalty percentages for the entire automotive industry, to allow
for cross-industry comparisons of loyalty behavior, and to examine loyalty at
various levels.
Polk is a global company, delivering multi-dimensional marketing
information solutions to the automotive industry to enhance the relationships
consumers have with brands. Through lifetime understanding of individuals,
Polk helps its clients maintain current customers, win new ones and build
their brand loyalty. The company has served the automotive industry for 78
years and is the longest-standing steward of automobile records in the United
States. Founded in Detroit in 1870, Polk launched its motor vehicle
statistical operations in 1922 when the first car registration reports were
published. It now serves nearly every segment of the motor vehicle industry
as an analytical consultant and statistician, a provider of database-marketing
services, a supplier of vehicle histories and a data enabler for geographic
information systems. Based in Southfield, Mich., Polk is a privately held
firm that employs more than 2,500 people worldwide, currently operating in
Australia, Canada, China, France, Germany, Holland, Spain, the United Kingdom
and the United States.