Arecent study conducted by J. D. Power Asia Pacific has revealed interesting insights into car buying preferences across various regions in India. The study, conducted between March- July 2011 and based on responses from about 9,000 people, analyzes the reasons for shoppers considering and then either buying or rejecting various car s.
According to the study, a cars high purchase price is the single most important reason for rejection across all four regions in the country, but each region still has its own unique pattern of buyer behaviour and preferences.
In the North, cars'exterior design and styling is the most frequently cited reason for purchase - and also rejection - as the case may be. Newvehicle shoppers in the West, on the other hand, display sensitivity to not only the acquisition cost of the vehicle but also running and maintenance costs. Meanwhile, in the South, high price and the opinion of family and friends are the top two most important reasons for rejection.
'The same consumption choices are made for very different reasons among the incredibly diverse regions of India. The often expressive and image- conscious Northerner tends to place greater emphasis on the style quotient associated with the vehicle. Conversely, purchase consideration for more price- conscious buyers in the South revolves around the utility function of the vehicle. To crystallize needs of the target buyer, marketers need to therefore embrace these differences in motivations across the vastly dynamic regions of India,'says Mohit Arora, executive director, J. D. Power Asia Pacific.
The study also finds that prospective new- vehicle buyers in India go to various sources of information before making a purchase decision, but friends'advice remains the most important source of information for most - as many as 89% of new car buyers in the country take advice from friends, relatives or other owners of the same make/ during their vehicle selection process. In contrast, the proportion of new- vehicle buyers who rely on salespersons'recommendations declined from 20% in 2008 to just 12% in 2011. 'In India, advice of friends, relatives and other owners of the same make play an influential role in the decision- making process. This advice helps to ratify the prospective buyers perceptions of the brand and provide information about the post- purchase experience, such as overall performance and driving appeal of the car,'says Arora.
High price continues to be the most- often- cited reason for vehicle rejection for yet another year, with about 33% of new car buyers rejecting a because the price was too high.
Another interesting find was that cross- shopping activity among new- vehicle buyers in India has declined ( albeit marginally), with buyers considering fewer s during their shopping process. Cross- shopping rates declined from 24% in 2010 to 23% in 2011, despite the fact that many new s were added to car manufacturers'line- ups this year.
Coming to manufacturer- specific buying habits, Maruti Suzuki was on top for the seventh consecutive year, with as many as 40% of all buyers opting for this brand. Buyers of Ford, Hyundai and Volkswagen s tended to shop around the most before purchasing their vehicle, while buyers of Honda and Mahindra s were found least likely to consider another during the shopping process.