Female New-Vehicle Buyers in India Consider More Models before Making a Purchase Decision than Males

Female New-Vehicle Buyers in India Consider More Models before Making a Purchase Decision than Males

JD Power Asia Pacific 2006 India Escaped Shopper Study

Female new-vehicle buyers are increasingly considering more models before making their final purchase decision, while vehicle-shopping activity among males remains flat, according to the JD Power Asia Pacific 2006 India Escaped Shopper Study^SM released on 26th September 2006.

Now in its second year, the study analyses the reasons why new-vehicle shoppers consider, but ultimately reject, certain models in favour of another. The study identifies a possible 48 reasons why shoppers may reject a new vehicle.

The study finds that 50 per cent of female new-vehicle buyers in India consider at least one other model before purchasing their vehicle. In general, shopping activity within the new-vehicle market has increased slightly in 2006 - up 1 per cent from the 2005 study.

"The introduction of new competitively priced models in the small car segment partly explains the surge in female shopping activity," said Mohit Arora, India Director at JD Power Asia Pacific, Singapore.

Additionally, while price and finance related issues are the most influential reasons for vehicle rejection among male shoppers, female shoppers overwhelmingly cite reasons related to vehicle styling. Among new vehicle shoppers in general, however, when two or more models are being considered, the less expensive model is usually the one selected.

Maruti Suzuki performs well in persuading shoppers to consider the brand, with nearly 45 per cent of shoppers eventually purchasing a Maruti Suzuki model. While a greater proportion of buyers of Hyundai, Tata and Toyota models tend to shop around before purchasing their vehicle; fewer Skoda, Mahindra and Chevrolet buyers shop around for other models.

"This is possibly reflective of the unique selling propositions offered by these brands in an attempt to discourage shoppers from considering other models," said Arora. "Ideally, a manufacturer hopes that every consumer will consider only its models and then go on to purchase one. However, given the vast number of options available in the new-vehicle market, the challenge for manufacturers is to persuade shoppers to at least consider their models, while simultaneously working to improve sales processes at the dealership. These practices help manufacturers close more deals and maximise their return on investment."

The study is based on responses from more than 2,150 buyers of new cars and utility vehicles who purchased their vehicles between September 2005 and March 2006.

Fieldwork for the study was conducted between March and May 2006 across 15 major cities in India. A total of nine makes and 23 models were covered in the study.