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Google Auto Day shares consumers’ car buyers path to purchase study
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Google Auto Day shares consumers’ car buyers path to purchase study

by Super DaddyApril 13, 2017
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Google Malaysia organised the Google Auto Day event today and we were present to get some rather interesting insights on a rather interesting subject. If the title didn’t make much sense to you, basically, it’s a behavioural study conducted by Google-TNS on how technology is playing is part in assisting people in purchasing a car. Now, Google being a data-driven company, this is just one of the million case studies that they conduct, so this one is very targeted.

24 million out of 32 million Malaysians own an average of 3.1 devices per person. That accounts to 75% of our population that has more devices than the average user in Asia Pacific. Our reliance on technology has reached to the heights where it’s our entertainment, communication and even shopping depot now. I mean, you could trigger purchase something that is small and cheap like stationary items, or even something that is expensive but on promotion like a mobile device, but how does something that is huge and expensive like a car be triggered from just your device?

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Assuming a person is planning to purchase a device, based on Google-TNS study, it begins with videos. More like a generic search such as “SUV Malaysia” for example. This leads to a cognitive search of “car of the year 2017” which would unleash some interesting ideas of brands. Next, the visitor would land to the official websites of the brands in thought – like Toyota’s or Honda’s website. Then, it leads the person to post on social media, seeking recommendations from friends and family.

At this point, the user has pretty much has narrowed down the results to something more specific and searches for a much targeted comparison keyword like “Outlander or CR-V” which obviously leads to forums or discussion boards where the comparison is made. As more answers are obtained, the user continues browsing for detailed reviews (much like we do here for tech :P) and would probably send messages to people whom the user knows drives somewhat similar vehicle.

After all these process, the user finally starts browsing for dealers, lands on their website if they have one or finds a nearby dealer to get their contact and arranges for a visit. This, finally ends in a purchase – but wait, there’s more! At this point, several factors can play their parts in deciding whether the visitor is going to purchase the car or not. Back in 2013, visitors would have almost made up their minds when they visit the dealers and at the very most, they would visit 3 – 4 dealerships before finalising the purchase. This number is now reduced to 2 – 3 dealership visitors in 2017. This means that visitors appearing to lesser dealerships, since they require lesser information from the salesmen and have already decided their purchase upfront. Scary for dealership owners?

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Not so much actually. This is where the competition landscape diverts to little details and innovations. Chances of a visitor to end up purchasing might just get higher, in which the salesmen can play a better part now. But if the users are doing their research on internet upfront, then that’s the territory that needs to be chartered by dealers. Using tools like Google Business to make sure the Business profile is properly setup, Adwords to make sure the promotions are shared, Analytics to identify when the users are much more actively considering car purchases (which is Friday to Sunday by the way) and having a proper website are just some of the methodologies.

Infographic

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Key learnings from the research:

  • The internet is at the heart of the car buying process: 86% of car buyers research online
    before making a purchase.

    1. And mobile takes consumers to dealers: ‘car dealerships near me’ searches grew 3x
      in 2016 vs 2015 on mobile.
    2. 3 out of 5 Malaysian car shoppers have a brand in mind when they search online.
    3. Thanks to the wealth of information available online, 2017 car shoppers visit on average
      2 dealerships vs 2013 shoppers who visit 3.5 dealerships — before making up their
      minds.
    4. Online searches for car loans have increased 21% in 2016 compared to 2015.
  • Malaysian buyers want a good deal:
    1. Functional factors have more traction than emotional factors in the purchase journey.
    2. Luxury-brand consumers focus on performance, technology, and design.
    3. Mass market consumers focus on after-service, fuel economy, and resale value.
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The further the circles are, the less likely the keywords would be searched together. Surprised? ;)

The magic here is that car manufacturers and dealers have never faced a more informed consumer. While this presents challenges, if car companies can provide relevant, helpful information on mobile just when consumers want it, they will succeed in the mobile-first era.

Pokdepinion: This is a very interesting case study and I guess car manufacturers and dealers should totally venture into online marketing strategies as part of their sales and marketing campaigns. With the data that Google makes publicly available, there’s a whole lot of possibilities in converting – especially given the fact that 2016 was a very dark year for this industry.

About The Author
Super Daddy
A proof that the real fun does not actually ends, but rather begins when you become a daddy. Enterprise Application Co-ordinator, Web Developer, Hardware Enthusiast, Gadgets lover, Android Evangelist, Desktop and Consoles Gamer, Metal Music Guitarist, Audiophile, Networking Freak, Radio Controlled Toys rat, Ferrari Crazy and above all - a daddy in every kid's dream.

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