Indiantelevision.com Team

(24 July 2007 6:30 pm)

MUMBAI: Internet and auto shows are credible sources of information that the Chinese rely on before purchasing cars. Traditional marketing channels such as magazines and advertisements in media has less impact on them, reveals a survey conducted by KPMG and TNS.

TNS China automotive director Klaus Paur said, "If car manufacturers develop a strong online presence and deliver a rich stream of online news into the marketplace through chat rooms, blogs, press releases and trade reviews, then they are doing the right thing. Our research also shows that car manufacturers investing in international, regional and local auto shows are also putting their money where it counts. "

TNS research found that over 30 per cent of car buyers rank the Internet as a quality source of information prior to a purchase, and that close to 25 per cent see the Internet as credible when deciding which car to buy. Auto shows are also having a strong influence on buyers evaluating car brands and models, scoring close to 30 per cent in terms of both credibility and quality.

According to the survey, China's car buyers rely heavily on Internet content as a source of purchasing information, with more than 40 per cent ranking the Internet as 'extremely important' or 'very important' in making a decision. The Internet is making the process of car purchasing increasingly transparent for China's consumers - in the same way it has done for car buyers in more developed car markets.

Chinese consumers use the Internet extensively for pre-purchase information, and actively browse auto websites, read up on news about brands, compare prices or join web-based discussions.

Marketing channels such as sports sponsorship, billboards, radio or TV commercials, and dealer promotional activity achieved scores as low as 5 per cent. Less than 15 per cent of car buyers responded saying that they would prefer car dealers as source of information.

Said Paur, "In a market where car buyers rely to a great extent on recommendations from family and friends, each individual dealership experience becomes critical, since positive word-of-mouth will help to bring new customers into the showroom. With consumers empowered by an ever-widening range of vehicles to choose from, a competent performance by the dealer at the point of sale will help secure a sale. But right now, China's car buyers have little trust in China's car dealers."