Google Automotive Shopper Influence Study

Pre-shopping | In-store | In-home Decision making model Stimulus First Moment of Truth Second Moment of Truth Pre-shopping | In-store | In-home At shelf In-store In-home Consumption

Objectives How is shopper behavior changing in a digitally powered world? What role do new media like social & mobile play in shopping? How are shoppers’ expectations of the physical retail dealership changing? How does automotive pre-shopping change actual purchasing?

500 total respondents Methodology Intercept decision makers in digital form Connect as close to purchase decision as possible Interactive, game-like online construct Looks at influencers to purchase throughout the process 500 total respondents Purchased new automobile, within the last 1-24 months

Automotive Shoppers Understanding Purchase Influence WHEN did you start shopping? WHERE did you go for advice or information? HOW did it influence your purchase decision? WHY was it influential?

When? purchase timeline When did shoppers begin their journey and how long did it take to get to purchase?

Purchasing an automobile is a very considered decision for shoppers. Over 14% shopped & bought within a week or less from purchase 1% 5-8 hours 0% One day 2% 2-3 days 3% 4-6 days 2% A week 6% 2 weeks 5% 3 weeks 4% A month 17% 2-3 months 23% 4-6 months 17% 7-12 months 10% More than a year 7%

Where? source usage Where did shoppers go for advice or information to help them make their purchase decision?

Categories of influence

Source usage: Automotive Used 18.2 sources on average 34% Average Usage Stimulus ZMOT FMOT Q2 When you were considering purchasing/leasing a new automobile, what sources of information did you seek out to help with your decision? Base N=500

Breakout by Age: Automotive 18–34 (n=181) 35–49 (n=81) 50+ (n=238) Source Node Usage SMOT participation 82% 83% 76% Tactical Internet Behaviors Attitudes towards the Internet

Breakout by Age: Automotive 18–34 (n=181) 35–49 (n=81) 50+ (n=238) 25.6 Source Node Usage Younger shoppers use over 25 sources of information before purchase! SMOT participation 82% 83% 76% Tactical Internet Behaviors 38% say internet is necessary. Attitudes towards the Internet

How? net influence How influential were the sources you used in your purchase decision?

Net Influence – Source Category Nets Retail Online General Dealer Specific Online Offline Social Direct/Event Print/Outdoor Online Social Mobile TV/Radio Outside of the dealership experience itself, digital sources are the leading influencer on purchase of any advertising medium Q5 We’d like you to tell us how influential each of these sources of information was to you at the time. Please select a number from 1-10 for each of the sources below where 1 is “least influential” and 10 is “most influential.” You may select any number in between 1 and 10. Base: N=500 Automotive

Automotive: Source Usage & Net Influence WHERE did you go for advice or information? HOW did it influence your purchase decision?

Why? heat mapping influence why were your sources influential in decision making?

Automotive Heat Map: Searched Online 71% Usage 86% Repeat Usage Fewest People Most People Degree of Influence 10 9 8 7 6 5 4 3 2 1 7-12+ mos before 4-6 mos before 2-3 mos before 1 month before 3 weeks before 2 weeks before 1 week before 4-6 days before 2-3 days before Day of purchase Time From Purchase Base N=500

Automotive Heat Map: Dealer Website 56% Usage 18% Repeat Usage Fewest People Most People Degree of Influence 10 9 8 7 6 5 4 3 2 1 7-12+ mos before 4-6 mos before 2-3 mos before 1 month before 3 weeks before 2 weeks before 1 week before 4-6 days before 2-3 days before Day of purchase Time From Purchase Base N=500

Automotive Heat Maps: Select Source Nodes Fewest People Looked on the dealership lot Searched dealership inventory Searched online Comparison shopped automobiles online Sought information manufacturer website Sought info from a dealership website Most People Talked with friends & family Saw an ad in a newspaper Saw TV ad

Post purchase refraction effect: SMOT Participation 80% of automotive shoppers engage in refraction post purchase, with nearly half sharing their purchase experience digitally Mentioned it to a co-worker or took an online survey More than 30% 63% 9% Mentioned it to friends/family Wrote a customer review on a website 18% 7% Wrote about it in a blog and posted Tweets Wrote about it on a Facebook page

Conclusions Highly considered purchase, but impulse shoppers exist in surprising numbers High ZMOT usage & influence for the category Even higher for younger shoppers ZMOT drives more purchase influence than all traditional advertising Retail effects still highly influential It’s a Price-Plus world

Invest in both brand and local dealership online presence Opportunities Websites, search and comparison shopping online outweigh all other advertising effects – are they getting the attention they deserve? Invest in both brand and local dealership online presence Optimize content for both price / value messaging, and performance / style Harness repeat source usage – retargeting, content optimization for early, middle late stage shoppers Dealership + ZMOT =Win High refraction effect = opportunity. reward shoppers who share good news

Thank you! Questions?