From JD Power the Analyst Note for June 2013

1. 1J.D. Power & Associates does not guarantee the accuracy, adequacy, or completeness of any information contained in this publication and is not responsible for any errors or omissions
or for the results obtained from use of such information. Advertising claims cannot be based on information published in this publication. Reproduction of any material contained in this
publication, including photocopying in part or in whole, is prohibited without the express written permission of J.D. Power & Associates. Any material quoted from this publication must
be attributed to J.D. Power & Associates.
© 2013 J.D. Power & Associates, McGraw Hill Financial. All Rights Reserved.
Canada
June 18, 2013
Behind the Numbers
Website Visitors Want Tools, Not Toys
virginia.connell@jdpa.com
(416) 507-3247
AFTER VISITING THE OEM WEBSITE,
A TOP BOX FUNCTIONALITY RATING INCREASES
LIKELIHOOD TO TEST DRIVE MORE OFTEN
Source: J.D. Power & Associates 2013 Manufacturer Website Evaluation Study
SM
72%
66%
62
64
66
68
70
72
74
%incidenceLikelihoodtoTest
DriveIncreased
Top box rating (10 out of 10) for functionality
Top box rating (10 out of 10) for appearance
New-vehicle shoppers want OEM websites that enable
them to accomplish their goal of researching a vehicle.
When new-vehicle shoppers are asked what is best about
the site and what needs improvement, this ability is cited
more frequently than the OEM’s brand image, a particular
vehicle model, or the aesthetics of the website. For
shoppers to accomplish their goal, OEM websites need to
be functional as a tool and not just a pillar of graphic
design or a lifestyle vignette.
Nearly three-quarters (71%) of the open-ended survey
responses in the 2013 Manufacturer Website Evaluation
Study
SM
relate to using the site as a research tool. By far,
new-vehicle shoppers using manufacturer websites focus
on the ease with which they can use the site.
 In quantifying this concept, shoppers were asked to
rate the website’s ability to help them perform the
following six tasks (on a 1-10 scale, with 1 being
“Unacceptable” and 10 being “Outstanding”):
 Determine the estimated monthly payment
 Find a dealer
 Compare a vehicle against another vehicle
 Research all of the vehicle information important
to you
 Equip the vehicle and determine price
 Browse the pictures, videos, and other images of
a vehicle
 Among shoppers who rate the site 10 for its ability
to help them perform these tasks, 72% indicate an
increase in their likelihood to test drive a vehicle
from that manufacturer. In contrast, among those
who rate the site 10 for appearance, only 66%
indicate an increase in their likelihood to test drive a
vehicle from that OEM. So, how can manufacturers
increase their vehicle sales by leveraging their
website? The answer is by developing and enhancing
research tools instead of aesthetics.
 One of the themes to emerge from the study is that
new-vehicle shoppers in Canada want OEM sites to
address the appropriate audience in terms of
content, including Canadian-specific content overall,
content specific to Canadian regions, and improved
quality in material presented in the French language.
A website’s quality and reliability as a research tool
diminishes when shoppers are able to identify
missing or inadequate information. One shopper’s
response to the survey’s open-ended question
regarding what website improvements were needed
stated, “[the] Canadian site should have the same
amount of information as the American site.”
 Tailored content that exceeds shoppers’
expectations is paramount, as disappointment
related to the lack of information and functionality
may have significant repercussions for the vehicle
brand. Arriving at a website to find that little
attention has been paid to displaying the most
relevant information from the shopper’s perspective
will likely impact the attention they pay to the
manufacturer’s brands.

2. 2
Brian Murphy
416-507-3253 ▪ brian.murphy1@jdpa.com
June 18, 2013
J.D. Power & Associates does not guarantee the accuracy, adequacy, or completeness of any information contained in this publication and is not responsible for any errors or omissions
or for the results obtained from use of such information. Advertising claims cannot be based on information published in this publication. Reproduction of any material contained in this
publication, including photocopying in part or in whole, is prohibited without the express written permission of J.D. Power & Associates. Any material quoted from this publication must
be attributed to J.D. Power & Associates.
© 2013 J.D. Power & Associates, McGraw Hill Financial. All Rights Reserved.
6120
19
4849
3
New Vehicles Used Vehicles
Cash Lease Loan
48
53
58
63
68
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
New Used
$465
$485
$505
$525
$545
$565
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
New Lease New Loan
Percent of Total Transactions (Past 12 Months)
Average per Customer
72 Months and Greater
62%
0%
10%
20%
30%
40%
50%
60%
70%
2008
2009
2010
2011
2012
2013
Data from JDPA PIN Incentive Spending Report (ISR)
20%
30%
40%
50%
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
% Negative Equity Trade-In %
Percentage of negative equity vehicles at trade-in
$27,000
$28,000
$29,000
$30,000
$31,000
$32,000
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Vehicle Price Transaction Price