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Consumer Attitude On Pricing Presented by   Rick Wainschel Kelley Blue Book VP, Marketing Research & Brand Communications  October 18, 2007
Source: Recruited From Kbb.com New Car Pricing Reports   Why Kelley Blue Book?
Consumers Are Split Regarding Best Price/ Dealer Relationship Source: Kelley Blue Book Survey (October 2007) Q: Which statement below best describes your feelings about the vehicle purchase process?  I am seeking the absolute lowest price and will buy my next vehicle from any dealer who can give me the best deal 52% I am seeking a dealer who I can trust and have a relationship with, even if it means paying a little more than the absolute lowest price for my next vehicle 48%
Important Drivers & Attitudes In Choosing A Dealer Less important… ,[object Object],Source: Dealer Evaluation Study (February 2007) Q: Assuming that prices were the same at all dealerships, how important are each of the following factors in your decision to purchase a vehicle from a particular dealership? [4-point scale: very important, somewhat important, somewhat unimportant, very unimportant] What Factors Are Important? -- % Very Important -- Proximity from dealership location 33% Discounts on future purchases 32% Number of different services offered 27% Trustworthiness 83% Good Customer  Service 81% Good reputation  72% Honest repair people/service 80% Friendliness of employees  67% Selection of vehicles available  60%
Majority Of Consumers Prefer A Single Set Price ,[object Object],[object Object],Source: Dealer Evaluation Study (February 2007) Q: Which statement below best describes your feelings about the vehicle purchase process?  Q: You mentioned that you prefer to have a single set price for a vehicle, how important are the following factors to ensure a haggle-free / negotiation free buying experience?  [4-Point Scale: Very important, Somewhat important, Somewhat unimportant, Very unimportant] Ease in obtaining price quote Ease of obtaining pre-approval Quicker buying process Clear costs,  no surprises
Factors Important In Negotiating Price ,[object Object],[object Object],Source: Dealer Evaluation Study (February 2007) Q: Which statement below best describes your feelings about the vehicle purchase process?  Q:  How important are the following factors to help you negotiate the best deal? [4-point scale: very important, somewhat important, somewhat unimportant, very unimportant] Being in control Better price
Consumers Prefer to Work Their Way Up From Invoice Price Source:  Automotive Purchasing and Pricing Attitude Study (September 2006) Q: When you purchase or lease your next new vehicle, are you more likely to negotiate...? ,[object Object]
Consumers Acknowledge Need for Dealer Profits Source:  Automotive Purchasing and Pricing Attitude Study (September 2006) Q: Recognizing that dealers have to make money to stay in business, what do you feel is a fair profit for them to make per vehicle? ,[object Object]
Consumer Decisions Go Beyond Pure Price Source:  Automotive Purchasing and Pricing Attitude Study (September 2006) Q: When you purchase or lease your next new vehicle, which of the following offers is most appealing to you? ,[object Object]
Types of Online Information Sought Source:  Dealer Best Practices Survey (August 2007) Q: While shopping for your vehicle online, please select which of the following you used in your research? ,[object Object],[object Object],Expected selling price 81% Price with options 83% Vehicle photos/360s 70% Consumer reviews/ratings 70% Expert reviews 69%% Side-by-side comparisons 63%
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Takeaways
[object Object]

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Rick Wainschel at JD Power and Associate Automotive Internet Roundtable

  • 1. Consumer Attitude On Pricing Presented by Rick Wainschel Kelley Blue Book VP, Marketing Research & Brand Communications October 18, 2007
  • 2. Source: Recruited From Kbb.com New Car Pricing Reports Why Kelley Blue Book?
  • 3. Consumers Are Split Regarding Best Price/ Dealer Relationship Source: Kelley Blue Book Survey (October 2007) Q: Which statement below best describes your feelings about the vehicle purchase process? I am seeking the absolute lowest price and will buy my next vehicle from any dealer who can give me the best deal 52% I am seeking a dealer who I can trust and have a relationship with, even if it means paying a little more than the absolute lowest price for my next vehicle 48%
  • 4.
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