It has been a known fact that a dealer with good reputation does not indulge in unfair trade practices. Interested buyers often approach such well-known dealers who have their reputation at stake and would not mind selling a vehicle at a higher cost rather than wooing customers with a problematic vehicle at a lower cost. As per a study conducted by J.D. Power 2014 India Sales Satisfaction Index (SSI), new car buyers prefer approaching dealers who have been well known for their operational effectiveness and hold a good reputation in the market.
As per the survey, about 11% increase has been noted in last five years wherein buyers have approached a particular dealer due to reputation factor. Mohit Arora, Executive director at J.D. Power Asia Pacific, Singapore Moreover said, “The Indian automotive industry has been facing significant challenges over the past two years, but dealers that are able to present their offerings to customers in a transparent manner, aided with availability of the exact model and commitment of a faster delivery time are often rewarded because customers are willing to spend more for their vehicle.” The study has also noted that about 29% buyers search the internet and make a study before buying a new vehicle.
Mohit Arora further added, “Automakers need to work on a strategy to continuously monitor and respond to any feedback posted on such websites, as reviews and comments posted on these websites are likely to impact perceptions consumers have of the brands during their shopping process. With heightened competitive intensity in the Indian automotive market, most automakers are ensuring better implementation of standard practices, faster vehicle delivery and creating an engaging customer experience through proactive communications resulting in an increase in the overall purchase process satisfaction.”
It has been noted that new car buyers do not mind spending an additional 4% cost on new vehicle from reputed dealers as they are assured of factors like proper delivery timelines, availability of required shades and variants and other additional benefits. Among 29% online users, 40% have been researching on online automotive portals, whereas about 52% visit manufacturer website.
