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Cars Online 06/07

Understanding the Dynamics of Customer Buying Behaviour and Customer Loyalty

Vehicle ownership is a long-term, complex relationship among the consumer, the manufacturer and the dealer that is often dependent as much on emotional as rational factors. This was among the findings of the eighth annual Cars Online study from Capgemini.

Although rational factors such as safety, price and reliability play a role in consumers’ decision-making process, they are often trumped by more emotional aspects. For example, when consumers were asked why they switched to a different brand of vehicle, responses such as “fits my needs,” “wanted to try something new” and “enjoyment of the vehicle” scored higher than fuel economy and safety.

“This poses a challenge for dealers and manufacturers: How do you appeal to both the rational and the emotional aspects?” says Nick Gill, Global Automotive Leader, Capgemini. “Our Cars Online findings make it clear that automotive manufacturers and dealers must focus on better collaboration, stronger commitment to developing a long-term relationship with the customer, and increased communication throughout the vehicle lifecycle if they hope to improve customer loyalty as well as business performance.”

The study found that loyalty isn’t guaranteed. A little over half of consumers own a vehicle that is a different make from their previous vehicle. An even higher proportion of consumers switched dealers, indicating that dealers have considerable work to do in the area of customer loyalty.

The study—which surveyed consumers in China, France, Germany, the United Kingdom and the United States—examines trends in consumer buying behavior, Internet usage and customer loyalty. The report also explores the similarities and differences among the countries studied.

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