2002 Internet Car Buyers - JDPowers

J.D.
Power and Associates

2002 New Autoshopper.com
SM
Presented by:
Steve Witten
Senior Director
J.D. Power and Associates
2002 J.D. Power and Associates. All Rights Reserved
Introduction
Summary of Key Terms

Objectives
Methodology
Study Highlights
Industry Overview
Automotive Internet Users
Questions
Summary of Key Terms

Segments
Non-Internet User (NIU)
Non-Internet Shopper (NIS)
Accesses Internet but does not research online
Non-Automotive Internet User (Non-AIU)
Has no Internet access
Non-Internet Shopper + Non-Internet User
Automotive Internet User (AIU)
Researches vehicle online
Summary of Key Terms (continued)

Types of Web Sites
Independent/3rd party
Yahoo! Autos, Autobytel, etc.
Manufacturer
Toyota.com, Ford.com, etc.
Dealership
Individual dealer Web sites
Newspaper
LATimes.com, NYTimes.com, etc.
Chat rooms/Bulletin boards
Understanding the Role of the Internet
Objectives
Automotive information sought and found

by consumers
Internet Impact on vehicle selection,
purchase and finance decision
Types of Web sites visited
Demographic profile by segment
Internets role as a referral service
Methodology
Retail purchasers and lessees of new 2002 and
2003 MY cars and light trucks
Registered January and February 2002
Randomly drawn national sample obtained from

R.L. Polk and Co.
Average return target of 138 per model
Weighted to reflect retail sales mix during the
sample period
Mailout = 116,317; Returns = 27,383; Response
Rate = 24%
Study Highlights
Study Highlights
The percentage of new-vehicle buyers, across all

brands, who use the Internet to research and/or
purchase their automobile online has leveled off at
60% - consistent with last year's figures.
Four percent (4%) of all new-vehicle purchases are
made through online buying services - also
consistent with 2001 figures.
The average automotive Internet user (AIU) visits
nearly 7 different automotive Web sites and spends
4.75 hours online.
Study Highlights (continued)

Independent third-party Web sites are visited by
82% of AIUs, approximately equal with 2001
(83%).
Manufacturer Web sites are gaining in popularity

among AIUs--- 76% of AIUs visit a manufacturer
site; dealership-site visitation is also up in 2002.
Autobytel.com continues to generate more online
sales than any other site, though its market share has
declined in recent years.
The use of bulletin boards and chat rooms by AIUs
has dropped from 2001 levels (12% from 17%).
Study Highlights (continued)

Kelley Blue Book (kbb.com) tops the list for the
fifth straight year as the most frequently visited
automotive Web site
Edmunds.com is rated as the most useful Web site

for the second year in a row.
Online financing of vehicles declined in 2002 (0%
financing likely played a role).
AIUs continue to be younger, more affluent, and far
less brand-loyal than Non-AIUs.
AIUs invest more time in the shopping process, are
more distrustful of dealers, and are more price
sensitive than Non-AIUs.
Industry Overview
AIUs Remain Younger, More

Educated, with Higher Incomes
Demographic Profile
AIU
NIS
NIU
Age (median)
45
50
58
Income (median)
$81,300
$75,300
$54,100
58%
43%
25%
74%
69%
61%
Education
(% College Grad)
% Small City or
Metropolitan
The Top 5 & Bottom 5 Makes in AIU Rate

Audi
82%
Acura
82%
Porsche
81%
BMW
81%
78%
Volkswagen
Industry Average
60%
Dodge
52%
Mercury
51%
Lincoln
41%
Cadillac
41%
Buick
Based to Total New-Vehicle Buyers
Based to total respondents
39%
Luxury Makes Appealing to Younger Buyers have Highest AIU Rates

% Change from 1999
Acura
82%
34%
Audi
82%
24%
Porsche
81%
47%
BMW
81%
23%
77%
Saab
75%
Volvo
13%
23%
Infiniti
72%
25%
Land Rover
71%
34%
Jaguar
71%
63%
Luxury Average
70%
37%
68%
Lexus
66%
Mercedes-Benz
23%
31%
Lincoln
41%
77%
Cadillac
41%
73%
Based
BasedtotoTotal
totalNew-Vehicle
respondents Buyers
Highest AIU Rates of Non-Luxury Makes
% Change from
1999
Volkswagen
78%
Subaru
76%
31%
20%
Isuzu
71%
32%
Mazda
70%
54%
Honda
69%
32%
Toyota
68%
42%
Nissan
67%
45%
Hyundai
65%
74%
Suzuki
64%
60%
Jeep
61%
Mitsubishi
60%
GMC
60%
Non-Luxury Average
59%

Makes with less than 30 respondents not shown
25%
49%
67%
50%
AIU Rates of Non-Luxury Makes (Continued)

59%
Non-Luxury Average
% Change from
1999
50%
33%
Chrysler
56%
Pontiac
55%
Kia
54%
Saturn
54%
Ford
54%
Oldsmobile
53%
Chevrolet
52%
77%
Dodge
52%
40%
Mercury
51%
69%
Buick

Makes with less than 30 respondents not shown
39%
42%
60%
28%
59%
45%
76%
Highest Rate of AIUs by Model
Top 15 Model in AIUs
Bottom Model 15 in AIUs
Volkswagen EuroVan*
88%
Ford Crown Victoria*
38%
Toyota Highlander
87%
Chevrolet Malibu
38%
Mazda MPV*
86%
Cadillac Seville*
37%
Toyota Sequoia*
86%
Oldsmobile Intrigue
37%
Isuzu Axiom*
86%
Buick Regal
36%
Audi A4
86%
Mercury Grand Marquis
36%
Subaru Impreza
85%
Buick LeSabre
35%
BMW Z3*
85%
Chevrolet Prizm
34%
Acura MDX
85%
Dodge Neon
34%
Acura TL
84%
Cadillac DeVille
33%
Honda S2000
84%
Buick Park Avenue33% Lincoln
Lexus IS 300*
84%
Continental*
30% Lincoln
Porsche Boxster*
84%
Town Car
30% Cadillac
BMW 3 Series
83%
Eldorado*
28%
Volkswagen GTI*
83%
Buick Century*
24%
*Caution: Small Sample

Models with less than 30 respondents not shown
Automotive Internet Users
KBB is the Most Frequently Visited Site

Mean
Usefulness1
Percent of AIU Visiting Site

Kelley Blue Book (kbb.com)
44%
26%
Edmunds.com
21%
20%
19%
19%
Ford
Consumer Reports Online
Toyota
Yahoo! Autos
14%
13%
12%
12%
11%
10%
9%
9%
9%
6%
Chevrolet
Honda
Autobytel.com
AutoTrader.com
AOL Autos
NADA.com
Microsoft CarPoint
Car & Driver Online
Cars.com
Volkswagen
Audi
2%
7.6
7.9
7.2
7.5
7.3
6.7
7.4
7.5
6.0
6.6
6.3
6.9
7.0
6.8
6.7
7.3
7.2
Based to AIUs
1
Based to those visiting each individual site. Based on a 10-point scale, where 1 is
Unacceptable, 10 is Outstanding, and 5 is Average
Usefulness Rating by Web Site Category for AIUs1

7.4
Manufacturer Web Site
7.4
7.1
Research Web Site2
7.3
6.4
Portal Web Site
6.5
6.3
Lead Generator Web2

Site
6.5
6.0 *
Chat Room/Bulletin
Board Web Sites
5.8
5.4
Dealership Web Sites
Newspaper Web Site
Euro-Luxury
AIUs
Luxury AIUs
6.3
#N/A
5.7
4
Based to AIUs
1
Based to those visiting each individual site. Based on a 10-point scale,
where 1 is Unacceptable, 10 is Outstanding, and 5 is Average.
2
Sub component of Independent Site Category (weighted mean)
*Caution: Small Sample, #N/A: Insufficient Sample
Usefulness Rating by Web Site Category for AIUs1

7.6
Research Web Site 2
7.4
7.3
7.3
Manufacturer Web
Site
6.5
6.5
Lead Generator Web2

Site
6.4
6.4
Portal Web Site 2
6.2
6.4
Dealership Web Sites
5.5 *
5.5
Chat Room/Bulletin
Board Web Sites
Non-Luxury AIUs
Total AIUs
5.4 *
5.4
Newspaper Web Site

4
Based to AIUs
1
where 1 is Unacceptable, 10 is Outstanding, and 5 is Average
2
Sub component of Independent Site Category (weighted mean)
GM BuyPower, Edmunds, and Saturn Rate as the Most Useful Web Sites
Web Site Usefulness (Top 10)
8.3
GM BuyPower*
Edmunds.com
7.9
Saturn
7.9
Isuzu*
7.7
Acura
7.6
BMW
7.6
kbb.com
7.6
Mercedes-Benz
7.5
Lincoln
7.5
Jeep
7.5
Volkswagen
7.3
Audi
7.2
6
Based to AIUs
1
where 1 is Unacceptable, 10 is Outstanding, and 5 is Average
The Majority of AIUs Pre-Negotiation Occurs Over the Phone:
Dealer May Not Realize the Lead

Occurred from the Internet
Pre-Visit Negotiation1
Negotiation Method2
Phone
AIUs
21%
79%
Phone
YES
E-Mail
85%
39%
Phone
YES
1
2

Based to those respondents who pre-negotiated by telephone or e-mail.
Multiple responses allowed.
89% of AIUs Go Online Before Visiting a Dealership

59% Go Online 3 weeks or more before visiting a dealership
When Auto Shoppers First Go Online
30.0%
22.4%
15.3%
12.0%
9.0%
7.3%
1.9%
13 or
More
Weeks
9 to 12
Weeks
5 to 8
Weeks
3 to 4 1 Day to 1 Day to 2 Weeks

Weeks 2 Weeks 1 Week
Before Visiting First Dealer
2.2%
3 or
More
Weeks
After Visiting First Dealer
Based to AIUs
Vehicle Options and Pricing Information are the Most Important Information Found Online
Importance Rating of Online Information (Top 16)

Options and Features
8.7
Dealer Cost/Invoice
8.5
MSRP Calculator
8.4
Reliability Ratings
8.2
Discount Info
8.1
Vehicle Specs
8.1
True Market Price
7.8
Side-By-Side Comparison
7.7
Photograph of Exterior
7.7
Safety Info
7.7
Trade-In Values
7.5
Road Tests and Reviews
7.3
Monthly Payment Calculator
6.9
Dealer Inventory Info
6.8
Local Dealer Info

Referral w/Best Price
6.3
5.7
Based on a 10-point scale, where 1 is Not at all Important, 10 is Extremely Important, and 5
is Average
1
AIUs Trust Manufacturers for Accurate Option

Info and Independents for Pricing Information
Manufacturer
Site
Most Helpful
Overall
32%
Options and
Features
Independent Site
60%
69%
Dealer Invoice
19%
Discount
Information
25%
6%
7%
75%
40%
Importance
Rating1
8%
73%
17%
Online Dealer
Referral*
Dealer Site
8%
60%
8.7
8.5
8.1
5.7
0%
20%
40%
60%
80%
100%
% Trust Most for Info
Based to AIUs
*Online dealer referral does not include dealer sites
1
Based on a 10-point scale, where 1 is Not at all Important, 10 is Extremely
Important, and 5 is Average
Internet's Impact on Car Buying Decisions

All AIUs
Toyota
Subaru
Nissan
Toyota
Nissan
Honda
Ford
Chevrolet
9%
3%
31%
8%
4%
3%
3%
33%
8%
32%
7%
4%
5%
4%
32%
7%
4%
33%
9%
11%
9%
33%
21%
20%
% Big Impact
Based to AIUs
36%
43%
32%
12%
3%
40%
31%
28%
37%
Fair Price
37%
Make/Model
37%
Dealer
37%
Lender
54%
Jeep
Honda
52%
Chevrolet
52%
50%
Pontiac
Volkswagen
49%
Nissan
48%
46%
Ford
45%
Dodge
44%
Toyota
39%
Mercury
36%
GMC
35%
Chrysler
34%
Buick
33%
Volvo
32%
Mazda
Lincoln
% of Web Site Visitors

That Purchased Make
22%
Based to AIUs
% of Site Visitors Purchasing Make

(Top 10 Luxury)
Acura
41%
Porsche
39%
Land Rover
38%
Mercedes-Benz
37%
Lexus
37%
Infiniti
37%
Jaguar
36%
Audi
36%
BMW
34%
Cadillac
33%
Volvo
33%
Saab
Lincoln
29%
22%
Based to AIUs
Well Over Half of Visitors Who Rated the

Web Site 8 or Higher Purchased the Make
Web Sites Influence on Purchase
70%
% Purchase Make
60%
50%
40%
30%
20%
10%
0%
1 to 5*
6 or 7*
8 or 9
10*
Web Site Rating by Car Buyer
Based to Volkswagen Web site visitors

There is Interest in Online Vehicle Loans

Toyota
22%
Nissan
24%
Lincoln
17%
Honda
20%
GMC
15%
Ford
20%
Chevrolet
15%
Buick
12%
Chrysler
21%
Jeep
20%
Dodge
19%
0%
5%
10%
15%
20%
25%
30%
% Definitely/Probably Will Use Online Lender

Based to AIUs
Models with less than 30 respondents not shown
High Interest in Online Vehicle Loans for Their Next Purchase

Volkswagen
21%
Toyota
22%
Nissan
24%
Mazda
20%
Honda
20%
Ford
20%
BMW
26%
Audi
23%
Acura
23%
0%
5%
10%
15%
20%
25%
30%
% Definitely/Probably Will Use Online Lender

Based to AIUs
Percent Repurchase Same Make
Loyalty Among AIUs and Non-AIUs
80%
71%
60%
40%
57%
AIU's
67%
67%
Non AIU's
65%
57%
53%
52%
42%
45%
45%
37%
36%
48%
38%
24%
20%
0%
Make Replaced
Based to those respondents replacing same make originally bought new
Behavioral Profiles1
Automotive
Internet Users
(AIU)
Non-Internet
Shoppers (NIS)
Non-Internet
Users (NIU)
Time Investors
137
37
50
Auto Experts
113
76
85
Price Sensitive
112
73
91
Dealerphobes
112
89
74
Empowered
Negotiators
100
96
103
Profile Index of 100 equates to the industry average
Psychographic Profile of AIUs

200
Chevrolet AIUs
Chrysler AIUs
Ford AIUs
Honda AIUs
Nissan AIUs
Toyota AIUs
Total AIUs
Total Non-AIUs
Total Total
156
149
141
137
131
150
Index Score
129
100
89
94
117
113
112
120120
113
108 109
115
111 110
108
100
89
132
100
94
92
84
81
50
130
123
117
117
114
113112
112
100100100
100
83
81
100
82
43
0
Auto Experts
Time Investors
Empowered
Negotiators
Dealerphobes
Psychographic Profiles
Price Sensitive
Auto Experts are Influenced the Least, Time Investors the Most
Internet's Impact Decisions of AIUs

How much to pay
60%
Make/model puch
54%
50%
% "Big Impact"
50%
40%
47%
40%
47%
47%
43%
41%
40%
35%
30%
20%
Auto Experts
Based to AIUs
* Small sample
Time Investors
Empowered
Negotiators*
Dealerphobes*
Price Sensitive*
AIUs Spend an Above Average Amount of Time Shopping

Psychographic Profile of AIUs
200
Chevrolet AIUs
Ford AIUs
Honda AIUs
Nissan AIUs
Toyota AIUs
Total AIUs
129
130
156
149
150
141
Index Score
131
137
132
120 120
117
108 109
112
100
113
112
94
89
117
123
117
113 112
111 110
100
94
92
84
83
50
Time Investors
Dealerphobes
Auto Experts
Price Sensitive
Empowered
Negotiators
Segments Most Influenced by the Internet

Internet's Impact Decisions of AIUs
How much to pay
110%
100%
Make/model puch
13%
15%
% "Big Impact"
90%
Dealer purch from
11%
80%
42%
70%
13%
11%
29%
31%
38%
38%
Price Sensitive*
Empowered
Negotiators*
39%
32%
60%
50%
40%
49%
30%
44%
46%
Dealerphobes
Auto Experts*
20%
Time Investors
Based to VW AIUs
* Small sample
Dealerphobes Have a High Rate of

Submitting Online Purchase Request
Submitting Purchase Requests
Submitted, Not Purchased
% Submitted Purchase Request
40%
Submitted & Purchased
33%
29%
30%
26%
9%
24 %
11%
9%
20%
21%
9%
11%
24%
10%
17%
18%
15%
10%
0%
Time Investors
Dealerphobes
Auto Experts*
Price Sensitive*
Empowered
Negotiators*
Based to All AIUs
* Small sample
Summary
Not only do import brands have above average AIU

rates, their AIU tend to be more extensive shoppers
than domestic AIUs.
Consider adding selling the low-pressure sales

experience your web site buyers go through.
Dealerphobes make up a large portion of AIUs, these

buyers have high rates of online purchase requests.
Look at possible improvements in payment calculator

and online dealer inventory information.
Many buyers had a difficult time finding them online.
Summary
Web sites would benefit from highlighting

reliability and safety information.
These two highly important items have been found

by very fewer buyers.
Consider providing a link to third-party sites with

reliability information. The independent source
may appear more credible to the consumer.
Buyers rate the BMW and MBUSA sites as

more useful than other sites. Look to them as a
benchmark.
BMW rating higher on navigation.


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J.D.

Power and Associates

2002 New Autoshopper.com

Summary of Key Terms

2002 J.D. Power and Associates. All Rights Reserved

Summary of Key Terms

Non-Internet Shopper (NIS)

2002 New Autoshopper.com

Accesses Internet but does not research online

Non-Automotive Internet User (Non-AIU)

Has no Internet access

Non-Internet Shopper + Non-Internet User

Automotive Internet User (AIU)

Researches vehicle online

2002 J.D. Power and Associates. All Rights Reserved

Summary of Key Terms (continued)

2002 New Autoshopper.com

Toyota.com, Ford.com, etc.

Chat rooms/Bulletin boards

2002 J.D. Power and Associates. All Rights Reserved

Understanding the Role of the Internet

2002 New Autoshopper.com

Automotive information sought and found

2002 New Autoshopper.com

Randomly drawn national sample obtained from

2002 J.D. Power and Associates. All Rights Reserved

2002 New Autoshopper.com

2002 J.D. Power and Associates. All Rights Reserved

2002 New Autoshopper.com

The percentage of new-vehicle buyers, across all

2002 J.D. Power and Associates. All Rights Reserved

Study Highlights (continued)

2002 New Autoshopper.com

Manufacturer Web sites are gaining in popularity

2002 J.D. Power and Associates. All Rights Reserved

Study Highlights (continued)

2002 New Autoshopper.com

Edmunds.com is rated as the most useful Web site

2002 New Autoshopper.com

2002 J.D. Power and Associates. All Rights Reserved

AIUs Remain Younger, More

2002 New Autoshopper.com

2002 J.D. Power and Associates. All Rights Reserved

The Top 5 & Bottom 5 Makes in AIU Rate

2002 New Autoshopper.com

2002 J.D. Power and Associates. All Rights Reserved

Luxury Makes Appealing to Younger Buyers have Highest AIU Rates

2002 New Autoshopper.com

Highest AIU Rates of Non-Luxury Makes

2002 New Autoshopper.com

Based to total respondents

2002 J.D. Power and Associates. All Rights Reserved

AIU Rates of Non-Luxury Makes (Continued)

2002 New Autoshopper.com

Based to total respondents

2002 J.D. Power and Associates. All Rights Reserved

Highest Rate of AIUs by Model

2002 New Autoshopper.com

Top 15 Model in AIUs

Bottom Model 15 in AIUs

Ford Crown Victoria*

Mercury Grand Marquis

Buick Park Avenue33% Lincoln

*Caution: Small Sample