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<ul><li> Automotive the way we see it Cars Online 08/09 10th Annual Global Automotive Study: Tracking Consumer Buying Behavior in Both Mature and Emerging Markets </li> <li> Contents Introduction 3 Executive Summary 4 10-Year Review: What a Difference a Decade Makes 6 Emerging Markets: The Key to Future Growth 8 Brazil: Vehicle Buyers Know Green 8 Russia: Western Purchase Patterns Emerge 9 India: Tech-Savvy Consumers Turn to Online Tools 10 China: High-Growth Market, Demanding Consumers 11 Vehicle Research: Market Maturity Impacts Behavior Patterns 12 Going Green: Emerging Markets Focus on Fuel Efficiency 14 Web Usage: Interest in Online Vehicle Buying Jumps 17 Customer Interaction: A Holistic Approach to Building Loyalty 22 Customer Satisfaction: What Needs to Change? 25 The Next 10 Years: Conclusion and Recommendations 27 2008 Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior written permission from Capgemini. </li> <li> Automotive the way we see it Introduction Welcome to the 10th annual The research for this years study Capgemini global automotive study involved more than 3,100 consumers Cars Online 08/09. in the United Sates, Western Europe (especially Germany, France and the This years study expands our coverage UK), Brazil, Russia, India and China. of consumer buying behavior beyond The executive summary provides an traditional mature markets such as the overview of key findings from the United States and Western Europe to research, and the sections that follow include several emerging markets: offer more in-depth data and analysis Brazil, Russia and India, in addition to on each of the emerging markets as China, which we have covered since well as key topics such as vehicle 2004. As these developing markets research, lead management and become increasingly vital for the customer loyalty. We also look at the automotive industry, companies must changes consumers expect to see in understand how consumer purchase the way they buy a vehicle in the patterns in these countries differ from coming 10 years. The whole vehicle or mirror the behavior of car buyers in buying process will be done with a established markets. click of the mouse, said a consumer from India, reflecting a sentiment This year we also take a deeper look expressed by the majority of at top-of-mind issues like fuel respondents in our study. efficiency and alternative-fuel vehicles, the use of new online tools such as We hope the findings of Cars Online blogs and discussion forums, and 08/09 will provide automotive customer satisfaction with the vehicle manufacturers and dealers with buying process, including consumer insights into changing consumer suggestions on what would improve dynamics in both mature and the buying experience. As this is the developing markets, and will help the 10th annual issue of Cars Online, we industry gain a better understanding have also reviewed results from the of how to successfully anticipate past decade to see just how much has evolving consumer needs and changed and what clues that can demands. provide about the decade ahead. During the past 10 years, Capgemini has surveyed almost 42,000 consumers across 15 countries, as well as 300 automotive Original Equipment Manufacturers (OEMs) and 2,500 dealers, which adds up to significant insight into vehicle buying behavior. Some of the consumer knowledge gained over the course of this research has been highlighted in fact boxes. Look for them throughout the report. Cars Online 08/09 3 </li> <li> Executive Summary It will be as easy to buy a vehicle online consistently rated among the most as it is to buy a book or bottle of perfume important decision criteria, there are over the Internet. significant differences beyond these common factors. In particular, Combustion engines will be just for consumers in emerging markets put classic cars. greater emphasis on more short-term factors such as 0% financing, cash- I hope we will be able to buy direct from back incentives and additional the manufacturer at the cost the dealer warranty coverage. pays so as to be able to get a better model for a fair price. All emerging automotive markets are not alike. Understanding both the Buying a car will be like putting together similarities and differences among the a Lego kit. You will choose standardized four developing markets studied is components from different manufacturers essential to succeeding in these high- that will be assembled into your car. growth regions. Brazilian consumers, for example, are far more likely than As these quotes from our Cars Online those in China, India or Russia to own 08/09 research make clear, consumers or have interest in fuel-efficient and have some very definitive ideas about alternative-fuel vehicles. Russian the way they expect to buy cars in the consumers demonstrate buying future. These qualitative comments, behavior that is closer to that of About the Study together with the extensive respondents in western markets. For quantitative data from the study, point instance, 21% of Russian respondents to the importance of understanding said they were likely to buy a used Capgemini worked with SmartRevenue, a Ridgefield, Connecticut-based consumer needs and behavior vehicle, the highest of the emerging research firm, to conduct the survey for patterns, particularly as automotive markets. Cars Online 08/09. All analysis and companies turn to new growth interpretation of the data has been markets to offset static sales in At the same time, the research made by Capgemini in collaboration traditional western markets. uncovered some consistent trends with the Car Internet Research Program among the emerging markets. (CIRP) of the University of Ottawa, Key Findings Respondents in all four developing Canada. In total more than 3,100 The research uncovered a number of economies indicated strong interest in consumers were surveyed in eight key findings: buying vehicles over the Internet, countries: Brazil, China, France, heavy use of new online tools such as Germany, India, Russia, the United Fuel economy is as important a blogs and web forums, and higher Kingdom and the United States. The composition of the consumer sample in factor in a consumers choice of levels of customer satisfaction with the each country was based on projectable vehicle as are safety and reliability. overall vehicle buying process. In national samples representative of the The impact of volatile gasoline prices some respects consumers in emerging population from the standpoint of can be seen in all markets, with nine markets demonstrate less sophisticated region, age and gender. All consumers out of 10 respondents pointing to fuel buying behavior than those in western surveyed were in-market (20% plan to economy as an important or very countries, but they are also extremely buy or lease a vehicle within three important consideration in their technology enabled, indicating the months; 25% in three to six months; vehicle choice. In Brazil, it was the potential to leapfrog established 40% in six to 12 months; and 15% in 12 number one factor, cited by 97% of practices in western markets in a short to 18 months). respondents. While reliability, safety, time. fuel economy and price are 4 </li> <li> Automotive the way we see it Consumers latent demand for This year saw a rise in green vehicle said they were satisfied with the online vehicle buying continues to ownership: 36% of all respondents process of buying a car. Its interesting grow. This year 44% of consumers said they own a fuel-efficient or to note that there appears to be an said they were likely or very likely to alternative-fuel vehicle, up from 28% inverse relationship between market purchase a car entirely over the last year. And half said they plan to maturity and satisfaction levels: The Internet if that capability were buy or are thinking seriously about more sophisticated the market, the available, up from 20% last year. The buying such a vehicle. However, most lower the degree of satisfaction. For interest level was particularly consumers are not prepared to pay a example, in the U.S. only 40% said pronounced in emerging markets like high premium to go green: The they were satisfied, compared with Brazil (88%) and India (67%). Interest research found that 85% of 84% of consumers in India. in online buying extended to parts respondents expect to pay less than and accessories, with 55% of all 10% extra for a fuel-efficient or And even those respondents who are consumers saying they were likely to alternative-fuel car. satisfied see room for improvement. At buy these items over the Internet. the top of the list is the vehicle negotiation Consumers are increasingly process at the dealership. Consumers said Interestingly, the barriers to online demanding about the speed of less haggling and pressure by dealer vehicle buying seem to be response they expect from dealers salespeople would increase their addressable. We expected respondents and manufacturers. Half of satisfaction level. Other areas for to voice concern about the inability to consumers said they expect a response improvement include better customer interact face to face or negotiate a to a web or e-mail inquiry within four service and greater transparency in trade-in over the Internet, but instead, hours, up from 39% last year. That pricing. they cited the inability to test drive a number jumps to 60% for respondents vehicle (43%) and the lack of full who are within three months of buying While this topline review provides a price and product information (36%) a car. Respondents in developing summary of key findings from this as more significant blockers. countries are particularly demanding: years Cars Online study, the sections Two-thirds of Chinese consumers that follow offer more in-dep...</li></ul>