Customers are moving to online “tyre kicking”

There has been a lot of reports recently that quote anecdotal evidence that customers are shopping online, rather than going to a dealership.

Customers are moving to online “tyre kicking”

Dealerfloor met with Hannes Oosthuizen, Consumer Experience Manager at Cars.co.za, to find out if the research bears this out.

Cars.co.za conducts an online survey to track consumer behaviour and brand preferences for their annual Cars.co.za Consumer Awards, Powered by WesBank. This survey has been ongoing since 2015, and in 2019, over 10 000 consumers completed the questionnaire.

“When it comes to buying from a specific dealer, we ask customers if the choice was informed by reputation, convenience (that the location is easy to access or the only option), if it was based on the best deal available or if it was related to an online search or advertisement,” says Hannes.

“Over the past couple of years, and especially in 2019, the number of customers who chose a dealer based on ‘convenient location’ or ‘previous experience with the dealership’ has declined, while ‘service reputation’ and ‘online advertising and availability of a specific vehicle’ have increased.”

To better understand these shifts, Cars.co.za and their data partner Lightstone Consumer, indexed their findings in 2018 and 2019, against those of 2017. This analysis showed that online search was eight times more significant in 2019 than in 2017.

“One should keep in mind that these findings refer to our research in 2019, and that it has in all likelihood increased at an even faster rate during the lockdown period in 2020, as more customers were stuck at home and Internet research became the only way of shopping for a car,” says Hannes

More Industry News stories

Barloworld dealership sale completed

Barloworld dealership sale completed

JSE-listed Barloworld has finalised the sale of its motor retail business, comprising 38 motor franchise dealerships in South Africa and Botswana.

  • 11 June 2021
Better training for young drivers

Better training for young drivers

MasterDrive and Castell Projects and Services will be launching a driver training programme during June, which is also youth month, aimed at young drivers.

  • 11 June 2021
R2RSA welcomes NADA commitment to Guidelines

R2RSA welcomes NADA commitment to Guidelines

Right to Repair South Africa (R2RSA) has welcomed the pledge by the National Automobile Dealers’ Association (NADA) to support the Competition Commission Guidelines for Competition in the South African Automotive Aftermarket.

  • 11 June 2021