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The Consumer
Journey:
Auto-Buyers
Influences & Mindsets along
the Path to Purchase
                              Storyforward
Table of
Contents
                                                                                                                                                                Storyforward




 Executive summary .............................................................................................................. 	 3
 Introduction .............................................................................................................................. 	 4
 Methodology ............................................................................................................................. 	 5
 Market overview ..................................................................................................................... 	 6
 Journey model .......................................................................................................................... 	 7
 The ecosystem of influence ............................................................................................. 	11
 Ready, set, drive                  ..................................................................................................................... 	 2
                                                                                                                                                          1
           01 Open to Possibility ............................................................................................. 	12
           02 Decision to Change ........................................................................................... 	12
 Influencers and mindsets along the journey....................................................... 	14
           03 Evaluating ................................................................................................................. 	14
           04 Shopping: The Terrain ..................................................................................... 	17
           04 Shopping: The Car & The Deal ................................................................. 	23
           05 Experiencing ........................................................................................................... 	27
 Reach and engage consumers ....................................................................................... 	30
Executive Summary
 1.  onsumers across markets experience five
    C                                                   5.  onsumers seek enrichment opportunities
                                                           C
    distinct stages as they travel along the auto          where they can experience the car before they
    path to purchase, and digital media plays              get to the dealership. Rich media, video and
    a critical role at each stage.                         interactive gaming can bring the test drive
                                                           experience and feeling of driving the car alive
 2.  S consumers move through the path
    U                                                      and foster more confidence before consumers
    with relative ease due to a long legacy of             interact with dealers.
    home-grown industry knowledge. But many
    consumers experience “switchbacks” to earlier       6.  onsumers are more likely to purchase
                                                           C
    stages, based both on unique cultural and              from a dealer they like, but there are myriad
    infrastructural realities, as well as needs that       opportunities to enhance the dealership
    go unfulfilled by media and technology.                experience through touch screen technology
                                                           and ongoing mobile communication.
 3.  ost consumers establish their consideration
    M
    set by determining the best fit for their current   7.  onsumers who personalize their vehicle
                                                           C
    lifestyle. Marketers should leverage content           post-purchase, via mobile apps and
    such as “Top Ten Family Cars” or “Best City            communication technologies, are more likely
    Vehicles” to help consumers establish their            to become loyal advocates for the brand.
    “early fits” before they embark on heavier             Marketers should leverage the window of
    eliminate-and-compare research.                        opportunity after a new purchase to encourage
                                                           consumers to fully integrate mobile and
 4.  onsumers seek ways to avoid “switchbacks”
    C                                                      in-car technologies.
    to earlier stages of the journey through a
    combination of authoritative content, expert        8.  hile knowing where consumers go for
                                                           W
    reviews, consumer opinions and local dealer            information is a critical part of media
    information across PCs, tablets and mobile             planning, marketers who understand the
    phones. Marketers should consider ways to              emotional or functional needs of consumers
    help consumers triangulate and store their             at each stage in the journey will be better
    research to keep it accessible at home, at work        able to develop effective messages across
    and on-the-go.                                         media channels that build brands and enable
                                                           decision simplicity.
Introduction
   “ hen I first drove, the car was everything.
    W
    It meant freedom.”
     Female, US




 F
        rom famous movie stars leaping into           For “The Consumer Journey: Auto-Buyers”
        getaway cars to beloved childhood             study, we partnered with Ipsos Media CT and
        cartoons that bring vehicles to life, the     Iposo OTX to transform the traditional sales
 iconic imagery of the automobile has been with       funnel into a consumer-centric model, one
 most of us since our earliest memories. Cars         where consumer behavior and need-states
 evoke freedom, lifestyle, status and mobility.       drive marketer opportunities and solutions.
 And for many consumers, they represent one of        “The Consumer Journey: Auto-Buyers”
 the biggest purchase decisions they make over        addresses the following questions:
 their lifetimes. But while our grandparents had
 a finite and well-known set of influences when       •  ow do consumers travel along the path
                                                        H
 purchasing a car, it’s a different story today.        to purchase?
 The proliferation of digital channels is reshaping   • What points of influence—including media,
                                                        
 the way consumers make purchase decisions;             activities and other people—do consumers
 they take more time, complete more research,           encounter when researching cars?
 and travel through more points of influence than
 ever before. As a result, consumers are faced        • How are local markets unique? How can
                                                        
 with an overabundance of information, while            manufacturers in emerging markets such
 marketers are also facing new challenges: how          as Brazil and India start to create brand
 to engage their audiences at the most relevant         equity with a large and influential emerging
 points of influence.                                   middle class?

 At Microsoft Advertising, we believe                 • What types of interactions trigger specific
                                                        
 marketers can get closer to consumers in a             outcomes, such as making a purchase, sharing
 more meaningful way by gaining a deeper                recommendations or experiences with a friend,
 understanding of consumer needs throughout             going to the dealership or changing long-term
 their journey, and how digital channels can            associations with brands?
 meet those needs.
                                                      • What emotions and consumer need-states
                                                        
                                                        are involved when people are considering car
                                                        brands, researching, searching or discussing
                                                        autos with their friends and family?
                                                      • Where are the gaps in the journey? At what
                                                        
                                                        points do consumers need help, and what are
                                                        the opportunities for specific platforms to assist
                                                        in making the process smoother?
METHODOLOGY
Quantitative and qualitative:
Brazil, India, UK  US




          M
                     icrosoft Advertising partnered with                              For the quantitative segment, we built a
                     Ipsos Media CT and Iposo OTX over                                questionnaire for a panel of 1,000 consumers in
                     a five-month period from February                                each market (Brazil, India, UK, US)* where we
          to June 2012, leveraging both quantitative                                  mapped the influences, triggers and emotions at
          and qualitative methodologies to uncover the                                each step along the path to purchase. This enabled
          influences, behavioral themes and mindsets of                               us to draw out the influencers and milestones, and
          consumers as they make buying decisions for                                 subsequently quantify the channels, people and
          economy and mid-size cars.                                                  brand experiences along the journey in order to
                                                                                      identify successful connection points, as well as
          The first stage consisted of qualitative and                                gaps where opportunities for interaction between
          consumer-led discussions, where we sought to                                marketers and consumers could be improved.
          understand each individual purchase journey,
          while exploring influences in terms of people,
          place, content, media and devices. With 12-16 in-
          depth interviews in each country—Brazil, India,
          the UK and the US—we uncovered the patterns
          of decision-making with a unique emphasis
          on emotions, behaviors and triggers for action
          throughout the path to purchase. We followed up
          with consumer online diaries, where we tracked
          and validated behavior over the following month.




 *  uantitative Sample = 1002 (Brazil), 1022 (India), 761 (UK), 1106 (US); +/- 3.10% (Brazil),
   Q
   3.07% (India), 3.55% (UK), 2.95%(US) at the 95% confidence level.
Market
overview
Brazil, India, US  UK




             “ saved from my first job in a fish and chip shop to
              I
              buy my first car—and was very proud of myself!”
               Female, UK




          M
                    ore than 60 million passenger cars                   The United States and the United Kingdom,
                    will be produced in 2012, according to               where markets are more saturated, offer a
                    the International Association of Auto                compelling contrast. The homegrown US
          Manufacturers—that’s 165,000 new cars on the                   automotive industry carries a long brand lineage,
          market every day. And much of that growth is                   and average consumers have bought and owned
          driven through emerging markets.                               cars for several generations. Throughout US
                                                                         history, commercial content and American
          In Brazil, where business is thriving and                      literature have associated cars with freedom,
          the emerging middle class is acquiring new                     rugged individuality and the myriad options
          consumption patterns, the automotive industry                  available on the open road (“Whither goest thou,
          has beaten its forecast for five years running.*               America, in thy shiny car in the night?” – Jack
          But we found that overall cost considerations,                 Kerouac, On the Road).
          including fuel consumption, availability of parts
          and ease of maintenance are all still significant              Despite a reduction in car manufacturing in the
          factors in choosing a car. The feeling or                      UK, commercial auto imagery is still associated
          experience of driving was also critically important            with classic, urbane style—think James Bond—
          to the consumers we spoke to, more so than the                 and often drenched in sex appeal. But petrol and
          image the car projects.                                        tariffs are high, and the UK consumers we spoke
                                                                         to tended to take a slightly more hesitant path to
          India, where local sales are up 7% this year**,                purchase as a result.
          is reaching the very first stages of mass
          motorization. For middle class consumers, we
          found that image is important—and so is the
          feeling of driving the right car. As one consumer
          put it, cars “define you in the same way that
          technology does.” Perhaps not surprisingly in
          a market where the tech industry is booming,
          the desire for new and better features is more
          predominant in India than in other markets
          (39% vs. a global average of 33%).




 * “Brazil’s Record Car Sales to Continue,” The Rio News, January 2012
 ** “India Car Sales Rise 6.7%,” The Wall Street Journal, August 2012
JOURNEY MODEL
The right fit for where you are now



   C
           ars are a major purchase for most               “The Consumer Journey: Auto-Buyers” research
           consumers and demand a rational                 reveals five key stages on the path to purchase.
           decision-making process, but we often           The first three stages build clarity, and the last two
   underplay the emotional factors that persist            build confidence. Both the clarity and confidence
   throughout the journey. In established markets          need-states have a dynamic range that varies by
   in particular, people start out with pre-conceived      country, from clarity to confusion, and then from
   ideas and brand preferences that are difficult to       confidence to uncertainty.
   change. But consumers still feel pressure to work
   out what they want and how they approach the
   buying process.




    Each stage contains at least one phase that is specific to the automotive category, described overleaf.
JOURNEY MODEL
The right fit for where you are now


   OPEN TO POSSIBILITY
                                                     “When I first
   Current state
                                                     drove, the car
   From what our parents drove and what we’ve        was everything.
   owned in the past, to the influence of glossy
   advertising campaigns, cars are everywhere—       It meant
   and every encounter we have with them shapes      freedom.”
   our perceptions. Some consumers, especially       Female, US
   in developed markets such as the US and UK,
   have established solid brand preferences over
   the course of their lives, which help them move
   through their auto-buying journey faster and
   with more certainty. Other individuals may
   approach car buying in a more open way.
   This openness, however, can often prolong
   the process.




                                                     DECISION TO CHANGE
                                                     Motivation
                                                     Over time, a consumer’s new car becomes his
                                                     current car. Some purchases are driven by the
                                                     age of the car, while for some, the motivation
                                                     to purchase a new car is linked to a life-change:
                                                     the birth of a child, a new job in a new city or
                                                     the freedom of becoming an empty nester. Very
                                                     occasionally the motivation may be the strong
                                                     desire for a specific car—a desire that can be
                                                     driven purely through advertising.
JOURNEY MODEL
The right fit for where you are now

     EVALUATING
     Worldview
     In the Worldview phase, there are generally four steps that the
     consumer has to work through: confirming if he or she is going
     to buy a new car, working out what he or she wants from a new
     car, determining how he or she is going to make the decision, and
     establishing a level of brands or models. Those with solid brand
     preferences or past experience get through this stage quickly and
     easily, but most consumers have trouble with some, or all, of these
     steps. In some cases, it may be difficult for the consumer to work
     out how to get the information needed to move on to the next stage.




  “ use the Internet for all kinds
   I
   of information online.”
   Male, Brazil


     SHOPPING
     Th
      e Shopping or In-store stage happens in a        The Car
     unique manner for car buying. Most of the
     eliminate-and-compare activity that consumers      At this point, consumers are focused on “the
     naturally exhibit when researching purchases       one”. They’ve narrowed the choice down to a
     happens online, well before people make it to      car, specification and options. For some,
     the dealership. Three phases make up this stage    The Car phase comprises planning negotiation
     for auto buyers.                                   tactics and knowing where to compromise.
                                                        Others are determined to hunt down the one
     The Terrain                                        ideal car at exactly the right price.
     In The Terrain phase, consumers commit to          The Deal
     buying a new car. Their consideration set is
     based on experience, trusted recommendations,      Ideally, the consumer wants to go to the
     advertising and some light research. Some          dealer to buy a specific car, armed with
     makes and models will not be the right fit and     all the facts that he or she
     consumers will eliminate these quickly. After      needs to get the best price
     a bit more light exploration, they’re down to      possible. He or she will
     a smaller group. At this point, the real work      want to meet his or her
     begins: a compare-and-contrast task based on       objective—and then get
     more detailed specs, reviews, seeing the vehicle   out as fast as he or she can.
     in person, and—for a few—an early test drive.
JOURNEY MODEL
The right fit for where you are now


   EXPERIENCING
   Ownership
   The final stage of the consumer journey is focused on the car, how
   it performs and how others react to it. More than ever, consumers
   personalize their vehicles through technology, and often discover
   unexpected features that can drive their advocacy, such as integration
   with their smartphones via apps and other technologies. This is where
   consumers not only determine their personal satisfaction with the
   vehicle, but also seek out external post-purchase validation
   through reviews, friends, family and even media.




   Clarity  Confidence
   The following figures (clarity, then confidence) are derived from market-level index
   data, where 100 is average.


                                                                             The Car 
       Country          Worldview         Eliminate         Compare                       Ownership
                                                                              The Deal

      Clarity/Confidence

        Brazil             92/92           109/93            93/99            100/102      104/112

        India              86/90           105/95           104/102           103/102      102/108

          UK               90/91            88/92            98/99            102/99       119/116

          US               80/80            99/94            96/91            114/120      109/113
The ecosystem
of influence
People, media and activities


                                                                       Aspirational




   “f I’m honest,
    I                                                                                                  Key
                                                                                                                 Effectiveness/impact



    I’m driven and
                                                                                                                 of influence



                                                                                                                                   People


    influenced by
                                                      Functional




                                                                                           Emotional
                                                                                                                                   Media




    media more than
                                                                                                                                   Activities


                                                                                                         Size: degree
                                                                                                         of influence


    I’d like to admit.”                                                                                Location :
                                                                                                       Alignmentw ith segment (closer to
    Female, UK                                                                                         edge = more specific)



                                                                      Informational




    At each part of the journey described above, we highlight the influencers at play, as well
    as the consumer mindset.
    Effectiveness                                                  Consumer need-states
    The outer-ring of the bubble shows the degree                  Comprehension: Making sense of the
    to which an influence has ‘a lot’ of influence vs.             information I have to help me make a
    ‘a little’ influence at this stage (more complete              smart decision.
    = more effective). The size of the bubble is
    determined by the following data:                              Projection: Thinking about what might
       • 70% and above = more coverage from outer ring             work and how the car would fit my lifestyle.
       •  5-70% = middle-weight coverage from outer ring
         5
                                                                   Visualization: Imagining or dreaming
       • 55% = smallest coverage from outer ring
                                                                   about what I want.
    Specificity                                                    Discovery: Getting ideas to help me
    How closely aligned an influence is with the                   figure out what fits.
    specific role in which it is placed (closer to
    edge = more specific).                                         Enrichment: Going deeper and learning
                                                                   more about the cars I’m considering.
    Frequency                                                      Confidence: Being certain that I have
    This is the degree to which an influence                       what I need to make the right decision.
    is sought (larger = more used).
       • 48% and above = largest circle                            Validation: Getting evidence and support
       • 32-48% = mid-sized circle                                 that confirms my thinking.
       • 32% = smallest circle
                                                                   Investigation: Getting very specific
    Function of influence                                          information that fills knowledge gaps.
    Placement of the bubble and its relationship
    with other bubbles within the segment shows
    the role the influence is primarily serving.
READY, SET, DRIVE
01 OPEN TO POSSIBILITY
02 DECISION TO CHANGE




   CURRENT STATE  MOTIVATION


   I
      n the US, consumers generally begin their        eliminating the cars that don’t feel right before
      journey with more clarity than people in         they begin comparing and contrasting a shortlist.
      other markets. Assessing what they want          They are subsequently able to focus on a narrow
   and what else is available is relatively quick      consideration set and hunt down the best car
   and painless. American consumers are used to        for them.



     “Cars to me are more than transportation. They define you as person.”
     Male, US



   Where they begin
   We asked our consumers how they would rate their levels of knowledge, interest and
   understanding at the very start of the journey. Here’s how they compare:


            KNOWLEDGE*                        INTEREST*                       CONFIDENCE*

             29%                               40%                             35%


             34%                               40%                             60%


             48%                               55%                             50%


             36%                               54%                             47%

                                                                                                      * top 2 box
READY, SET, DRIVE
01 OPEN TO POSSIBILITY
02 DECISION TO CHANGE




   Purchase Considerations


   I
       n other countries, personal factors (i.e.       A consumer’s current state and motivation drive
       increase in wealth, changing family dynamic,    the first two stages of the journey, and these tend
       change in commute, etc.) tend to weigh more     to be very specific to an individual’s circumstance.
   heavily on the decision-making process than         As a result, we’ll focus on influences during the
   in the US. This comparative lack of extraneous      Evaluating, Shopping and Experiencing stages.
   concerns is another contributor to the smoother
   consumer journey we see in the US relative to the
   other countries examined.



    IN BRAZIL AND INDIA, ALMOST EVERYTHING IS TAKEN INTO CONSIDERATION
              Fuel efficiency    85%          91%                    89%                     85%

                      Safety     82%          91%                    89%                     85%

              Price/payment      83%          90%                    88%                     80%

               Performance       76%          87%                    84%                     84%

                   Warranty      76%          87%                    83%                     81%

                  Body/style     72%          74%                    81%                     77%

                      Brand      61%          75%                    75%                     75%

     Specific models/options     59%          69%                    70%                     73%

           Innovation  tech     47%          75%                    57%                     73%

         Green/environment       39%          66%                    40%                     68%

          Stereo equipment       41%          53%                    50%                     62%

          Location of dealer     44%          56%                    42%                     60%

           GPS/navigation        31%          53%                    39%                     58%

          Hybrid technology      26%          62%                    32%                     63%

     Hands-free mobile tech      30%          43%                    39%                     55%

       Voice command tech        19%          41%                    26%                     43%
    Av. number of factors
    considered important        8.7          11.1                    9.8                    11.2


    ...Whereas in the US and the UK, auto-buyers focus on fewer factors
INFLUENCERS AND
MINDSETS ALONG
THE JOURNEY
03 Evaluating


   Worldview—How consumers navigate the journey

     Consumers in the Worldview phase make four key decisions:

     1.  ey confirm that they are going to buy a new car.
        Th
     2.  ey determine what they want from a new car.
        Th
     3.  ey decide how they’re going to make their decision.
        Th
     4.  ey establish a base consideration set of brands and models.
        Th



   T
           his early stage is critical for automobile   seeking out a new category of car that’s
           marketers. For consumers, anticipation is    less familiar to them. US auto-buyers are
           the dominant emotion here, although it’s     predominantly looking for enrichment,
   often tinged with some regret at the passing of      confidence and investigation.
   their current car and, in some markets, anxiety
   about how to make the best possible choice.          Brazilian consumers approach the Evaluating
                                                        stage quite differently as there is mistrust of media
   In the UK, deciding between a new or used car        sources and less knowledge of the auto market
   is a common and often complex decision.              in general, mostly due to a lack of strong brand
   And even once committed to a new car, some           legacy. As a result, many Brazilian consumers
   consumers don’t know exactly what they want          cycle through a “vortex of doubt” as they turn
   from it. Different emotional and functional need-    to many different sources to try to make up
   states are fulfilled through car comparison and      their minds. Partners inspire confidence here,
   review sites, with close family members such         while cars on the street and seen at work provide
   as partners and parents also providing input.        aspirational guidance.
   The influencers are slightly more diffuse than
   in other markets, however.                           For an Indian consumer, family acceptance of the
                                                        proposed purchase is key, so the Worldview phase
   In the US, clarity and confidence are at their       is focused on convincing friends and family what
   lowest in the Worldview phase; they both index at    type of car should be pursued. First, a consumer
   80, which is below average. Clarity and confidence   must identify the purchase that seems to fulfill
   will eventually grow to 113 and 120 respectively     their needs; then use the same logic to persuade
   at the moment before purchase. But compared          the family and get buy-in before moving forward.
   to the UK and other markets, US consumers            Indian consumers are already turning to media
   typically require only a quick assessment of what    sources here to provide evidence.
   else might be out there, particularly if they are
INFLUENCERS AND
MINDSETS ALONG
THE JOURNEY
03 Evaluating


                                   Aspirational                                               Needs and opportunities
                                                                                              How consumers navigate the journey

                                                                                              Projection                             Discovery and
                                 Partner                                                      Current state                          Enrichment
               Dad                                                                            •	 Served via partner and to a         Current state
                                                                                                 lesser extent, friends and travel   •	 Served via print and web
                                                                                              Needs  Opportunities                     autos content, particularly
  Functional




                                                                                  Emotional




                                                  Car review sites
                                                  –Autos                                      •	 Portable lifestyle-related autos       consumer opinions
                                                                     Car
                                                                     comparison                  content: “most fuel efficient       Needs  Opportunities
                                                                     sites –
                                                                     Opinions
                                                                                                 small hatchbacks”                   •	 Video from experts to build
                     Car                                       Car review                     •	 Video: help auto-buyers                confidence that consumer
                     comparison sites                          sites –                           experience the car, engaging           opinions alone cannot provide
                                                               Opinions
                                                                                                 them with sight, sound              •	 Early “fit” and “experience”
                                           Car review sites                                      and motion                             comparison: more general,
                                                                                                                                        “softer” version of an
                                                                                                                                        Eliminate opportunity

                                  Informational




                                                                                              Projection                             Enrichment
                                                                                              Current state                          Current state
                                                                                              •	 Served via partner, and to a        •	 Currently served via autos
                                                                                                 lesser extent, Mom, search             and dealer sites, and to a lesser
                                                                                                 (deals), and travel                    extent, friends and some TV
                                                                                              Needs  Opportunities                  Needs  Opportunities
                                                                                              •	 Portable autos content:             •	 Expert opinions (text or
                                                                                                 “most fuel efficient small             video): bridges enrichment
                                                                                                 sedans”, “safe family cars”, etc.      and boosts confidence
                                                                                                 —distributed across network,        •	 Early “fit” and “experience”
                                                                                                 including lifestyle                    comparison: more general,
                                                                                              •	 Video: help auto-buyers                ‘softer’ version of an
                                                                                                 experience the car, engaging           Eliminate opportunity
                                                                                                 them with sight, sound
                                                                                                 and motion
INFLUENCERS AND
MINDSETS ALONG
THE JOURNEY
03 Evaluating


                Needs and opportunities
                How consumers navigate the journey

                Discovery  Projection                   Enrichment
                Current state                            Current state
                •	 Discovery not served                  •	 Served via autos and dealer
                •	 Projection served traveling              sites, friends and to a lesser
                   to work                                  extent, TV

                Needs  Opportunities                    Needs  Opportunities
                •	 Portable autos content:               •	 Expert opinions (text or video):
                   “most fuel efficient small               bridges enrichment and boosts
                   sedans”, “safe family cars”, etc.        confidence
                   —distributed across network,          •	 Early “fit” and “experience”
                   including lifestyle                      comparison: general, “softer”
                •	 Video: help auto-buyers                  version of an Eliminate
                   experience the car, engaging             opportunity
                   them with sight, sound
                   and motion




                Discovery  Projection                   Enrichment
                Current state
                                                         Current state
                •	 Discovery not served
                                                         •	 Served via autos and
                •	 Projection not served                    dealer sites
                Needs  Opportunities                    Needs  Opportunities
                •	 Portable autos content: “most         •	 Expert opinions (text or video):
                   fuel efficient small sedans”, “safe      bridges enrichment and
                   family cars”, etc.—distributed           boosts confidence
                   across network, including             •	 Early “fit” and “experience”
                   lifestyle and family needs               comparison: general,
                •	 Video: help auto-buyers                  ‘softer’ version of an
                   experience the car, engaging             Eliminate opportunity
                   them with sight, sound
                   and motion
influencers and
mindsets along
the journey
04 shopping: the terrain


   As consumers move into the active Shopping stage, they travel through three
   distinct phases: The Terrain, The Car  The Deal.




   The Terrain: Eliminate


   T
           he Terrain consists of two steps: a deeper    In the US, this step is where an assessment of
           analysis that starts with elimination of      “fit” is made—an emotionally-led route where
           any car that doesn’t fit, which is followed   consumers discard the cars that really won’t
   by a rigorous comparison of those that make           work for them. This is a fairly clean, straight-
   it through.                                           forward process.

   In the UK, eliminate and compare behaviors            For Brazilians, this step tends to happen in
   exist, but they are often combined, and happen        combination with comparison behavior, making
   in a more haphazard way. We call this “The Fog        it a painful part of the consumer journey, and
   of Consideration”. No single source of influence      sometimes causing a “vortex of doubt” that can
   stands out here, but car review and comparison        reset the consumer’s Worldview, and set them
   sites, manufacturer sites and dealer sites help—      back an entire stage.
   often found through search engines. There is great
   potential in the UK for consumers to “switch          Indian consumers, however, often rely on family
   back” to their earlier Worldview.                     to help them eliminate options; this trust in the
                                                         opinions of others helps them move through this
                                                         phase relatively smoothly.
influencers and
mindsets along
the journey
04 shopping: the terrain


                     The Terrain: Eliminate
                     Needs and opportunities
                     How consumers navigate the journey
                     Projection                            Enrichment
                     Comprehension                          Current state
                     Current state
                                                            •	 Served via cars in street, travel,
                     •	 Served via partner and work            print and review sites
                     Needs  Opportunities                  Needs  Opportunities
                     •	 Virtual test drives, video          •	 General ‘fit’ and ‘experience’
                        and 360 degree views: Must             comparison: incorporating
                        be prominently positioned              factors of lifestyle, life stage—
                        to encourage and facilitate            perhaps with game elements
                        Eliminate behavior before
                                                            •	 Comparison that gets local:
                        Compare begins
                                                               prominently connect ‘fit’ and
                                                               ‘experience’ elements to local
                                                               dealers, influencing later stages
                                                            •	 Again, a key benefit to
                                                               consumers is in disentangling
                                                               Eliminate and Compare,
                                                               making their path smoother



                     Projection                             Enrichment
                     Current state                          Current state
                     •	 Served via partner, as well as      •	 Served via autos sites,
                        some travel, work                      primarily comparison
                     Needs  Opportunities                  Needs  Opportunities
                     •	 Virtual test drives and             •	 General “fit” and “experience”
                        360 degree views—makes                 comparison: incorporating
                        eliminating options by how             factors of lifestyle, life stage—
                        well they fit, relatively hassle-      perhaps using game elements
                        free and accelerates this stage     •	 Localized comparison:
                        of the Journey                         prominently connect “fit” and
                     •	 Video                                  “experience” elements to local
                     •	 Cross-category opportunities,          dealers, influencing later stages
                        especially in Travel content
influencers and
mindsets along
the journey
04 shopping: the terrain


                     The Terrain: Eliminate
                     Needs and opportunities
                     How consumers navigate the journey

                     Projection                             Enrichment
                     Current state                          Current state
                     •	 Served via travel                   •	 Served via autos sites,
                     Needs  Opportunities                     primarily comparison
                     •	 Virtual test drives and             Needs  Opportunities
                        360 degree views—makes              •	 General “fit” and “experience”
                        eliminating options by how well        comparison: incorporating
                        they ‘fit’ relatively hassle-free      factors of lifestyle, life stage—
                        and accelerates this stage of          perhaps using gaming elements
                        the Journey                         •	 Localized comparison:
                     •	 Video                                  prominently connect “fit” and
                     •	 Cross-category opportunities,          “experience” elements to local
                        especially in Travel content           dealers, helping influence
                                                               “hunt” and “deal”, and making
                                                               the path smoother




                     Projection                             Enrichment
                     Current state                          Current state
                     •	 Not served                          •	 Served via autos sites,
                     Needs  Opportunities                     primarily comparison
                     •	 Virtual test drives and             Needs  Opportunities
                        360 degree views—makes              •	 General “fit” and “experience”
                        eliminating options by how well        comparison: incorporating
                        they fit, relatively hassle-free       factors of lifestyle, life stage—
                        and accelerates this stage of          perhaps using gaming elements
                        the Journey                         •	 Localized comparison:
                     •	 Video                                  prominently connect “fit” and
                     •	 Cross-category opportunities,          “experience” elements to local
                        especially in Travel content           dealers, helping influence
                                                               “hunt” and “deal”, and making
                                                               the path smoother
influencers and
mindsets along
the journey
04 shopping: the terrain


   The Terrain: Compare


   I
      n the Compare step, the real work begins:          Clarity and confidence is no higher here than
      comparing the options. This is a compare-          in previous stages—not until they come to a
      and-contrast task based on more detailed           decision, at least. Consumers want a detailed
   auto specs, consumer and expert reviews, the          understanding of the cars they are comparing,
   experience of seeing the vehicle in person,           adding to their knowledge and ultimately building
   and—for a few—a test drive. But confidence            the confidence to make the final decision.
   dips slightly as a result of diving deep into so
   many choices.                                         In Brazil, there is a marked contrast with the
                                                         US: influencers are still clustered on the more
   UK consumers are still enmeshed in “The Fog of        emotional side of the ecosystem. As with the
   Consideration” at this point and risk backtracking    Eliminate step, a lack of trust, knowledge and
   to earlier stages if they don’t start to build        authority add to the “vortex of doubt.” Most
   enrichment and confidence. As consumers start         consumers have no choice but to compare a larger
   feeling more organized, however, inspiration and      number of options at a detailed level without first
   confidence starts to build.                           filtering them down to a manageable list.

   In the US, consumers compare detailed specs           The opinions of family members guide Indian
   for all models in their consideration set. This is    consumers through the onset of confusion,
   more serious, fact-based research, as we see from     and this support continues into test drives. It’s
   the influencers clustered at functional side of the   common to drive four to five cars—and to do
   ecosystem. There can be a slight dip in emotions      so with family. There’s plenty of information to
   and mindset here; as the search becomes more          consume too, including content from car review,
   intense and detailed, people are searching for a      comparison and manufacturer sites.
   right answer.




                   What car will
                   fit me best?
influencers and
mindsets along
the journey
04 shopping: the terrain


                     The Terrain: Compare
                     Needs and opportunities
                     How consumers navigate the journey

                     Discovery                           Enrichment 
                     Current state                       Confidence
                     •	 Served via travel and cars       Current state
                        in street                        •	 Served via partner, friends and
                     Needs  Opportunities                  review sites
                     •	 This behavior should really be   Needs  Opportunities
                        pushed earlier in the Journey.   •	 Focus on communication: as
                        By encouraging Eliminate            people make comparisons they
                        behavior, the confusion that        want to reach out to the people
                        new discovery causes at this        they know and trust
                        stage can be removed
                                                         •	 Goal is reaching confidence,
                                                            hence important to link their
                                                            enrichment information to
                                                            thoughts of family and friends
                                                         •	 Consumer reviews need
                                                            triangulation—or approval—
                                                            by inner circle




                     Enrichment                         Needs  Opportunities
                     Confidence                          •	 Localized comparison:
                     Current state                          prominently connect “fit” and
                                                            “experience” elements to local
                     •	 Overlaps between the two roles      dealers, helping influence
                     •	 Served with expert reviews,         “hunt” and “deal”, and making
                        manufacturer and dealer sites       the path smoother
                        pulling toward enrichment        •	 A focus on communication: as
                     •	 Buyer and partner opinions          people make comparisons, they
                        pull toward confidence              want to reach out to the people
                                                            they know and trust
                                                         •	 The goal is reaching confidence:
                                                            it’s important to link their
                                                            “enrichment” information to
                                                            thoughts of family and friends
                                                         •	 Consumer reviews need
                                                            triangulation—or approval—
                                                            by inner circle
influencers and
mindsets along
the journey
04 shopping: the terrain


                     The Terrain: Compare
                     Needs and opportunities
                     How consumers navigate the journey

                     Projection                             Enrichment
                     Current state                          Current state
                     •	 Served via travel                   •	 Served via autos sites,
                     Needs  Opportunities                     primarily comparison
                     •	 Virtual test drives and             Needs  Opportunities
                        360 degree views—makes              •	 Triangulate authoritative
                        eliminating options by how well        information with
                        they ‘fit’ relatively hassle-free      customer reviews
                        and accelerates this stage of
                        the Journey
                     •	 Video
                     •	 Cross-category opportunities,
                        especially in Travel content




                     Projection                             Enrichment
                     Current state                          Current state
                     •	 Served via Dad                      •	 Not served
                     Needs  Opportunities                  Needs  Opportunities
                     •	 Virtual test drives and             •	 General “fit” and “experience”
                        360 degree views—makes                 comparison: incorporating
                        eliminating options by how well        factors of lifestyle, life stage—
                        they fit, relatively hassle-free       perhaps using gaming elements
                        and accelerates this stage of       •	 Localized comparison:
                        the Journey                            prominently connect “fit” and
                     •	 Video                                  “experience” elements to local
                     •	 Cross-category opportunities,          dealers, helping influence
                        especially in Travel content           “hunt” and “deal”, and making
                                                               the path smoother
influencers and
mindsets along
the journey
04 shopping: The car  The deal


   The Car  The Deal


   B
         y the time they reach the midway point         In Brazil, however, the Shopping stage is yet
         of the Shopping stage, auto-buyers have        another where consumers don’t have all the pieces
         finally zeroed in on “the one.” They           they need to feel good about their decision. A
   know the specs and options they want—and             Brazilian auto-buyer can become focused on one
   how much they’re willing to pay for them.            particular make and model, but if it doesn’t feel
   For some consumers, this stage is focused            right, he’s pushed back several stages, to the messy
   on planning negotiation tactics and knowing          process again. But if a consumer successfully
   where to give in. For others, it’s about finding     settles into this phase, confidence starts to build,
   a specific car at exactly the right price and        with commitment (at least partially) to a car.
   hunting it down remorselessly.                       Six out of ten consumers in Brazil will revert to
                                                        earlier stage behavior here.
   Once consumers in the UK have finished
   their comparison work, they take one last look       With test drives complete, consumers in India
   before they leap—there’s a pause to reflect on       need confirmation from their families that their
   the purchase and plan the negotiation phase.         intended decision is the right one. Again, it’s
   Confidence is rising and relief starts to kick in.   a matter of keeping up the confidence in their
                                                        preferred car, while seeking to get a better sense of
   For US auto-buyers, confidence and clarity are       it and understanding all the options. As in Brazil,
   at an all-time high at this point. But maintaining   six out of ten Indian consumers will revert to the
   confidence in their decision is key. Consumers       Compare and Eliminate steps here.
   seek the final details they need to achieve full
   understanding of what they are getting into, as
   they think about how the car will fit into their
   daily lives.
influencers and
mindsets along
the journey
04 shopping: The car  The deal


                     Needs and opportunities
                     How consumers navigate the journey

                     Projection                            Confidence
                     Current state                         Current state
                     •	 Served via partner                 •	 Not served
                     Needs  Opportunities                 Needs  Opportunities
                     •	 Lending Tree for cars/sharing      •	 Local reviews of dealers
                        data with dealers to reach out        to build confidence going
                        with deals                            into deal
                     •	 Link between MSN Autos and         •	 Maintain confidence in the car
                        MSN Money content                     throughout deal and delivery
                     •	 Location-based links to dealers,      via communication of features
                        combined with easy lifestyle          and driver testimony
                        data-sharing
                     •	 Price comparisons and deal
                        location via smartphone
                        barcode scan




                     Projection                           •	 Interesting partnership
                     Comprehension                            opportunities—and great link
                                                              between MSN Autos and MSN
                     Current state                            Money content
                     •	 Not served                         •	 Location-based links to dealers,
                     Needs  Opportunities                    combined with easy data
                     •	 Lending Tree for cars/sharing         sharing (less personal data,
                        data with dealers so they can         more needs/lifestyle/fit data)
                        reach out with deals: exists but   •	 Price comparison and deal
                        is not well known                     location via smartphone
                                                              barcode scan
influencers and
mindsets along
the journey
04 shopping: The car  The deal


                     Needs and opportunities
                     How consumers navigate the journey

                     Projection                           Needs  Opportunities
                     Comprehension                         •	 Authoritative content from car
                     Current state                            experts would better serve the
                                                              comprehension need-state
                     •	 Served only by car review sites




                     Projection                           •	 Interesting partnership
                     Comprehension                            opportunities—and great
                                                              link between Autos and
                     Current state                            Money content
                     •	 Not served                         •	 Location-based links to dealers,
                     Needs  Opportunities                    combined with easy data
                     •	 Lending Tree for cars/sharing         sharing (less personal data,
                        data with dealers so they can         more needs/lifestyle/fit data)
                        reach out with deals: exists but   •	 Price comparisons and deal
                        is not well known                     location via smartphone
                                                              barcode scan
influencers and
mindsets along
the journey
04 shopping: The car  The deal


   DealERS


   M
             ost consumers go to the dealer with the      When it comes to the actual purchase, consumers
             intention of buying a specific car, armed    tend to buy from dealers they like. Our research
             with all the facts they need to get to the   showed that 49% of purchasers globally liked the
   best price possible—and then get out as fast as        dealer they bought from “a lot”. Consumers who
   they can. They typically begin relying on mobile       are less confident generally are less positive about
   technology to locate dealerships and get on-the-       dealers overall.
   fly information. Once there, consumers may be
   lucky enough to have a favored and friendly
   dealer; otherwise the dealership experience is
   somewhere between a game and a battle.

   On a scale of 1-5 with 5 as ‘liked a lot’, how did you like the dealer you bought from
   compared to other dealers?
   120




   100




   80
                                                                                     1

                                                                                     2
   60
                                                                                     3

                                                                                     4
   40
                                                                                     5


   20




    0

                     Dealer Bought From         Other Dealers




        “My smartphone is my rock, my life.
        It’s portable and discreet.”
        Female, US
influencers and
mindsets along
the journey
05 experiencing


   Ownership


   A
            t an average of just over five months into   From filtering through unhelpful information to
            the journey globally, consumers have their   securing the financing, navigating the journey for
            vehicle. Now, the focus is on the car: how   Brazilians is not easy. At this point, consumers
   it performs and how others react to it. Consumers     tend to feel relief that the process is over. Most
   personalize cars just as they would a new mobile      can’t help making a few checks though, just to
   phone. There’s a period of discovery, where           be sure they made the right choice. They are still
   people explore unexpected features. Typically, the    seeking to understand the car better, but this time,
   honeymoon period isn’t long-lasting, though. The      they only have one vehicle to research
   amount of ongoing dealer contact and warranty         and explore.
   activity required by consumers helps validate their
   decision—or fill them with regret.                    Car-buyers in India tend to expect an easy post-
                                                         purchase relationship with the dealer, but this
   In the UK, new owners try to work out how to          phase is primarily about the family reconfirming
   make the most of their purchase, and this often       the choice and fully experiencing the new car.
   results in quick checks against review sites to       Consumers will subsequently get comfortable
   make sure they got the best deal on the ideal         with the technical elements and show off their
   car. They’ll also seek the opinion and judge the      new purchase on their social networks.
   reaction of their partner.

   US auto-buyers tend to swing back over to the
   emotion side of the ecosystem. Clear, confident,
   relieved and proud of their decision, they tend to
   trust the way they made the decision and the end
   result. They might even love their new purchase
   so much that they give their new car a name.
influencers and
mindsets along
the journey
05 experiencing


                  Needs and opportunities
                  How consumers navigate the journey

                  Projection                           Confidence
                  Current state                        Current state
                  •	 Not served                        •	 Not served
                  Needs  Opportunities
                                                       Validation  Advocacy
                  •	 Later ownership stage to be
                                                       Needs  Opportunities
                     served through portable autos
                     content and video—as covered      •	 Encourage greater linkage
                     in Worldview stage                   between validation
                                                          and advocacy
                  Comprehension                        •	 Reviews easily linked or co-
                  Needs  Opportunities                   published on social networks
                  •	 Facilitate contact between        •	 More sharing of decision
                     manufacturer and consumer            process (e.g. ‘Pinterest for cars’)
                  •	 Encourage driver testimony
                     to validate choices and inspire
                     usage of newly purchased car




                  Projection                           Validation
                  Current state                        Needs  Opportunities
                  •	 Served only via partner           •	 Encourage greater linkage
                  Needs  Opportunities                   between validation
                                                          and advocacy
                  •	 Later “ownership” stage to be
                     served through portable autos     •	 Enable reviews on MSN Autos
                     content and video                    to be easily linked or co-
                                                          published on social networks
                  Comprehension                        •	 Allow for greater sharing of
                  Current state                           decision process (e.g. “Pinterest
                  •	 Not served                           for cars”)
                  Needs  Opportunities
                  •	 Facilitate contact between
                     manufacturer and consumer
influencers and
mindsets along
the journey
05 experiencing


                  Needs and opportunities
                  How consumers navigate the journey

                  Projection                            Validation ( Advocacy)
                  Current state                         Needs  Opportunities
                  •	 Served via dealer sites            •	 Encourage greater linkage
                  Needs  Opportunities                    between popular validation and
                                                           less common advocacy
                  •	 Show how the new purchase fits
                     into his/her life via customized   •	 Enable reviews on MSN Autos
                     mobile content                        to be easily linked or co-
                                                           published on social networks
                                                        •	 Allow for greater sharing of
                                                           decision process (e.g. “Pinterest
                                                           for cars”)




                  Projection                            Validation ( Advocacy)
                  Current state                         Needs  Opportunities
                  •	 Only served via partner            •	 Encourage greater linkage
                  Needs  Opportunities                    between popular validation and
                                                           less common advocacy
                  •	 Later ownership stage to be
                     served through portable autos      •	 Enable reviews to be easily
                     content and video                     linked or co-published on
                                                           social networks
                  Comprehension                         •	 Allow for greater sharing of
                  Current state                            decision process (e.g. “Pinterest
                  •	 Not served                            for cars”)
                  Needs  Opportunities
                  •	 Facilitate contact between
                     manufacturer and consumer
Reach and engage
consumers at
every step
HOW MICROSOFT advertising CAN HELP


   At Microsoft, we’re developing new ways to bring marketers and consumers closer
   together along the path to purchase. Here’s just one example:



   T                                                     DECISION TO CHANGE
           he study “The Consumer Journey: Auto-
           Buyers” demonstrates that marketers no
           longer have a captive audience reached
   through a select few points of influence. As a        Motivation
   result, it’s difficult to know and understand where   Consumers are usually motivated to make a
   you should invest marketing dollars along the         change because of personal circumstances. But
   path to purchase for optimal impact.                  some consumers admit they simply buy a new
                                                         car because they want one. Microsoft enables
   Both consumers and marketers find themselves          consumers to investigate something that catches
   in a challenging new environment, where too           their eye, without doing any hard work, via
   many choices and complexity can often obfuscate       Kinect’s integration with Bing.
   the right solution or purchase decision at any
   given time. But knowing how to harness digital        EVALUATING
   channels can help start to close that divide,
   reaching and inspiring consumers at the right
   place and time, clarifying their choices and          Worldview
   enabling easier decision-making.                      In the Evaluating stage, the Worldview phase
                                                         provides consumers with a route into their early
                                                         research using lifestyle content. MSN Autos in
   OPEN TO POSSIBILITY                                   the US—with 5.5 million unique users—provides
                                                         top ten lists and other helpful ways to start
   Current state                                         researching in a way that helps establish early ‘fit.’
   While consumer brand associations run deep in
   the US and UK, they’re more open in emerging
   markets. Xbox LIVE drives high brand lift when
   consumers are paying attention in a lean-forward
   gaming environment. Ad effectiveness research
   on more than 20 campaigns shows double-digit
   lifts across key brand metrics (Microsoft Internal,
   2012). And in fact, in the Consumer Journey:
   Auto-Buyers study, 30% of consumers in the
   US and UK said they would be interested in
   experiencing a test drive through a
   gaming environment.
Reach and engage
consumers at
every step
HOW MICROSOFT advertising CAN HELP


   SHOPPING                                               EXPERIENCING
   The Terrain                                            Ownership
   As consumers begin the heavy job of eliminating        Windows 8 apps on Microsoft’s new Surface
   and comparing options, MSN Autos provides a            tablet are an ideal way for consumers to continue
   single location for reviews, professional ratings      interaction with the car manufacturer throughout
   and compelling video, bringing to life a consumer’s    the ownership process. Now, the brand becomes an
   consideration set.                                     information source—and helps drive validation.


   The Car
   The easy integration of MSN Autos and
   MSN Money makes it easy for consumers to
   feel confident before entering negotiations with
   the dealerships.


   The Deal
   Local dealership listings on the MSN Autos mobile
   app enable consumers to leave a dealership they
   don’t like, and easily find one nearby that they do.
About Microsoft
Advertising
Global Insights
 Analytics

 Natasha Hritzuk                                                                       Kelly Jones
 Senior Director of Global Insights                                                    Head of Marketing Insights
 natashah@microsoft.com                                                                kellyjon@microsoft.com
 New York, NY                                                                          New York, NY




 W
              hile many tech and media companies conduct market research that
              describes what consumers are doing, the Microsoft Advertising
              Global Insights  Analytics team believes innovation stems from
 getting at the why. As a result, we go beyond behavior to focus on why consumers
 do what they do—whether that’s choosing one brand over another, or exhibiting
 a preference for a specific platform. Our goal is to create more robust, insights-
 driven narratives that put a human face on our audience, making it easier for
 customers to tell creative, relevant and connected stories across platforms.




 ©2012 Microsoft Corporation. All rights reserved. This document is provided “as-is.” Information and views expressed in this document,
 including URL and other Internet Web site references, may change without notice. You bear the risk of using it.

 Some examples are for illustration only and are fictitious. No real association is intended or inferred.

 This document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use
 this document for your internal, reference purposes.

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Path to purchase consumer journey microsoft advertising 2012

  • 1. The Consumer Journey: Auto-Buyers Influences & Mindsets along the Path to Purchase Storyforward
  • 2. Table of Contents Storyforward Executive summary .............................................................................................................. 3 Introduction .............................................................................................................................. 4 Methodology ............................................................................................................................. 5 Market overview ..................................................................................................................... 6 Journey model .......................................................................................................................... 7 The ecosystem of influence ............................................................................................. 11 Ready, set, drive ..................................................................................................................... 2 1 01 Open to Possibility ............................................................................................. 12 02 Decision to Change ........................................................................................... 12 Influencers and mindsets along the journey....................................................... 14 03 Evaluating ................................................................................................................. 14 04 Shopping: The Terrain ..................................................................................... 17 04 Shopping: The Car & The Deal ................................................................. 23 05 Experiencing ........................................................................................................... 27 Reach and engage consumers ....................................................................................... 30
  • 3. Executive Summary 1. onsumers across markets experience five C 5. onsumers seek enrichment opportunities C distinct stages as they travel along the auto where they can experience the car before they path to purchase, and digital media plays get to the dealership. Rich media, video and a critical role at each stage. interactive gaming can bring the test drive experience and feeling of driving the car alive 2. S consumers move through the path U and foster more confidence before consumers with relative ease due to a long legacy of interact with dealers. home-grown industry knowledge. But many consumers experience “switchbacks” to earlier 6. onsumers are more likely to purchase C stages, based both on unique cultural and from a dealer they like, but there are myriad infrastructural realities, as well as needs that opportunities to enhance the dealership go unfulfilled by media and technology. experience through touch screen technology and ongoing mobile communication. 3. ost consumers establish their consideration M set by determining the best fit for their current 7. onsumers who personalize their vehicle C lifestyle. Marketers should leverage content post-purchase, via mobile apps and such as “Top Ten Family Cars” or “Best City communication technologies, are more likely Vehicles” to help consumers establish their to become loyal advocates for the brand. “early fits” before they embark on heavier Marketers should leverage the window of eliminate-and-compare research. opportunity after a new purchase to encourage consumers to fully integrate mobile and 4. onsumers seek ways to avoid “switchbacks” C in-car technologies. to earlier stages of the journey through a combination of authoritative content, expert 8. hile knowing where consumers go for W reviews, consumer opinions and local dealer information is a critical part of media information across PCs, tablets and mobile planning, marketers who understand the phones. Marketers should consider ways to emotional or functional needs of consumers help consumers triangulate and store their at each stage in the journey will be better research to keep it accessible at home, at work able to develop effective messages across and on-the-go. media channels that build brands and enable decision simplicity.
  • 4. Introduction “ hen I first drove, the car was everything. W It meant freedom.” Female, US F rom famous movie stars leaping into For “The Consumer Journey: Auto-Buyers” getaway cars to beloved childhood study, we partnered with Ipsos Media CT and cartoons that bring vehicles to life, the Iposo OTX to transform the traditional sales iconic imagery of the automobile has been with funnel into a consumer-centric model, one most of us since our earliest memories. Cars where consumer behavior and need-states evoke freedom, lifestyle, status and mobility. drive marketer opportunities and solutions. And for many consumers, they represent one of “The Consumer Journey: Auto-Buyers” the biggest purchase decisions they make over addresses the following questions: their lifetimes. But while our grandparents had a finite and well-known set of influences when • ow do consumers travel along the path H purchasing a car, it’s a different story today. to purchase? The proliferation of digital channels is reshaping • What points of influence—including media, the way consumers make purchase decisions; activities and other people—do consumers they take more time, complete more research, encounter when researching cars? and travel through more points of influence than ever before. As a result, consumers are faced • How are local markets unique? How can with an overabundance of information, while manufacturers in emerging markets such marketers are also facing new challenges: how as Brazil and India start to create brand to engage their audiences at the most relevant equity with a large and influential emerging points of influence. middle class? At Microsoft Advertising, we believe • What types of interactions trigger specific marketers can get closer to consumers in a outcomes, such as making a purchase, sharing more meaningful way by gaining a deeper recommendations or experiences with a friend, understanding of consumer needs throughout going to the dealership or changing long-term their journey, and how digital channels can associations with brands? meet those needs. • What emotions and consumer need-states are involved when people are considering car brands, researching, searching or discussing autos with their friends and family? • Where are the gaps in the journey? At what points do consumers need help, and what are the opportunities for specific platforms to assist in making the process smoother?
  • 5. METHODOLOGY Quantitative and qualitative: Brazil, India, UK US M icrosoft Advertising partnered with For the quantitative segment, we built a Ipsos Media CT and Iposo OTX over questionnaire for a panel of 1,000 consumers in a five-month period from February each market (Brazil, India, UK, US)* where we to June 2012, leveraging both quantitative mapped the influences, triggers and emotions at and qualitative methodologies to uncover the each step along the path to purchase. This enabled influences, behavioral themes and mindsets of us to draw out the influencers and milestones, and consumers as they make buying decisions for subsequently quantify the channels, people and economy and mid-size cars. brand experiences along the journey in order to identify successful connection points, as well as The first stage consisted of qualitative and gaps where opportunities for interaction between consumer-led discussions, where we sought to marketers and consumers could be improved. understand each individual purchase journey, while exploring influences in terms of people, place, content, media and devices. With 12-16 in- depth interviews in each country—Brazil, India, the UK and the US—we uncovered the patterns of decision-making with a unique emphasis on emotions, behaviors and triggers for action throughout the path to purchase. We followed up with consumer online diaries, where we tracked and validated behavior over the following month. * uantitative Sample = 1002 (Brazil), 1022 (India), 761 (UK), 1106 (US); +/- 3.10% (Brazil), Q 3.07% (India), 3.55% (UK), 2.95%(US) at the 95% confidence level.
  • 6. Market overview Brazil, India, US UK “ saved from my first job in a fish and chip shop to I buy my first car—and was very proud of myself!” Female, UK M ore than 60 million passenger cars The United States and the United Kingdom, will be produced in 2012, according to where markets are more saturated, offer a the International Association of Auto compelling contrast. The homegrown US Manufacturers—that’s 165,000 new cars on the automotive industry carries a long brand lineage, market every day. And much of that growth is and average consumers have bought and owned driven through emerging markets. cars for several generations. Throughout US history, commercial content and American In Brazil, where business is thriving and literature have associated cars with freedom, the emerging middle class is acquiring new rugged individuality and the myriad options consumption patterns, the automotive industry available on the open road (“Whither goest thou, has beaten its forecast for five years running.* America, in thy shiny car in the night?” – Jack But we found that overall cost considerations, Kerouac, On the Road). including fuel consumption, availability of parts and ease of maintenance are all still significant Despite a reduction in car manufacturing in the factors in choosing a car. The feeling or UK, commercial auto imagery is still associated experience of driving was also critically important with classic, urbane style—think James Bond— to the consumers we spoke to, more so than the and often drenched in sex appeal. But petrol and image the car projects. tariffs are high, and the UK consumers we spoke to tended to take a slightly more hesitant path to India, where local sales are up 7% this year**, purchase as a result. is reaching the very first stages of mass motorization. For middle class consumers, we found that image is important—and so is the feeling of driving the right car. As one consumer put it, cars “define you in the same way that technology does.” Perhaps not surprisingly in a market where the tech industry is booming, the desire for new and better features is more predominant in India than in other markets (39% vs. a global average of 33%). * “Brazil’s Record Car Sales to Continue,” The Rio News, January 2012 ** “India Car Sales Rise 6.7%,” The Wall Street Journal, August 2012
  • 7. JOURNEY MODEL The right fit for where you are now C ars are a major purchase for most “The Consumer Journey: Auto-Buyers” research consumers and demand a rational reveals five key stages on the path to purchase. decision-making process, but we often The first three stages build clarity, and the last two underplay the emotional factors that persist build confidence. Both the clarity and confidence throughout the journey. In established markets need-states have a dynamic range that varies by in particular, people start out with pre-conceived country, from clarity to confusion, and then from ideas and brand preferences that are difficult to confidence to uncertainty. change. But consumers still feel pressure to work out what they want and how they approach the buying process. Each stage contains at least one phase that is specific to the automotive category, described overleaf.
  • 8. JOURNEY MODEL The right fit for where you are now OPEN TO POSSIBILITY “When I first Current state drove, the car From what our parents drove and what we’ve was everything. owned in the past, to the influence of glossy advertising campaigns, cars are everywhere— It meant and every encounter we have with them shapes freedom.” our perceptions. Some consumers, especially Female, US in developed markets such as the US and UK, have established solid brand preferences over the course of their lives, which help them move through their auto-buying journey faster and with more certainty. Other individuals may approach car buying in a more open way. This openness, however, can often prolong the process. DECISION TO CHANGE Motivation Over time, a consumer’s new car becomes his current car. Some purchases are driven by the age of the car, while for some, the motivation to purchase a new car is linked to a life-change: the birth of a child, a new job in a new city or the freedom of becoming an empty nester. Very occasionally the motivation may be the strong desire for a specific car—a desire that can be driven purely through advertising.
  • 9. JOURNEY MODEL The right fit for where you are now EVALUATING Worldview In the Worldview phase, there are generally four steps that the consumer has to work through: confirming if he or she is going to buy a new car, working out what he or she wants from a new car, determining how he or she is going to make the decision, and establishing a level of brands or models. Those with solid brand preferences or past experience get through this stage quickly and easily, but most consumers have trouble with some, or all, of these steps. In some cases, it may be difficult for the consumer to work out how to get the information needed to move on to the next stage. “ use the Internet for all kinds I of information online.” Male, Brazil SHOPPING Th e Shopping or In-store stage happens in a The Car unique manner for car buying. Most of the eliminate-and-compare activity that consumers At this point, consumers are focused on “the naturally exhibit when researching purchases one”. They’ve narrowed the choice down to a happens online, well before people make it to car, specification and options. For some, the dealership. Three phases make up this stage The Car phase comprises planning negotiation for auto buyers. tactics and knowing where to compromise. Others are determined to hunt down the one The Terrain ideal car at exactly the right price. In The Terrain phase, consumers commit to The Deal buying a new car. Their consideration set is based on experience, trusted recommendations, Ideally, the consumer wants to go to the advertising and some light research. Some dealer to buy a specific car, armed with makes and models will not be the right fit and all the facts that he or she consumers will eliminate these quickly. After needs to get the best price a bit more light exploration, they’re down to possible. He or she will a smaller group. At this point, the real work want to meet his or her begins: a compare-and-contrast task based on objective—and then get more detailed specs, reviews, seeing the vehicle out as fast as he or she can. in person, and—for a few—an early test drive.
  • 10. JOURNEY MODEL The right fit for where you are now EXPERIENCING Ownership The final stage of the consumer journey is focused on the car, how it performs and how others react to it. More than ever, consumers personalize their vehicles through technology, and often discover unexpected features that can drive their advocacy, such as integration with their smartphones via apps and other technologies. This is where consumers not only determine their personal satisfaction with the vehicle, but also seek out external post-purchase validation through reviews, friends, family and even media. Clarity Confidence The following figures (clarity, then confidence) are derived from market-level index data, where 100 is average. The Car Country Worldview Eliminate Compare Ownership The Deal Clarity/Confidence Brazil 92/92 109/93 93/99 100/102 104/112 India 86/90 105/95 104/102 103/102 102/108 UK 90/91 88/92 98/99 102/99 119/116 US 80/80 99/94 96/91 114/120 109/113
  • 11. The ecosystem of influence People, media and activities Aspirational “f I’m honest, I Key Effectiveness/impact I’m driven and of influence People influenced by Functional Emotional Media media more than Activities Size: degree of influence I’d like to admit.” Location : Alignmentw ith segment (closer to Female, UK edge = more specific) Informational At each part of the journey described above, we highlight the influencers at play, as well as the consumer mindset. Effectiveness Consumer need-states The outer-ring of the bubble shows the degree Comprehension: Making sense of the to which an influence has ‘a lot’ of influence vs. information I have to help me make a ‘a little’ influence at this stage (more complete smart decision. = more effective). The size of the bubble is determined by the following data: Projection: Thinking about what might • 70% and above = more coverage from outer ring work and how the car would fit my lifestyle. • 5-70% = middle-weight coverage from outer ring 5 Visualization: Imagining or dreaming • 55% = smallest coverage from outer ring about what I want. Specificity Discovery: Getting ideas to help me How closely aligned an influence is with the figure out what fits. specific role in which it is placed (closer to edge = more specific). Enrichment: Going deeper and learning more about the cars I’m considering. Frequency Confidence: Being certain that I have This is the degree to which an influence what I need to make the right decision. is sought (larger = more used). • 48% and above = largest circle Validation: Getting evidence and support • 32-48% = mid-sized circle that confirms my thinking. • 32% = smallest circle Investigation: Getting very specific Function of influence information that fills knowledge gaps. Placement of the bubble and its relationship with other bubbles within the segment shows the role the influence is primarily serving.
  • 12. READY, SET, DRIVE 01 OPEN TO POSSIBILITY 02 DECISION TO CHANGE CURRENT STATE MOTIVATION I n the US, consumers generally begin their eliminating the cars that don’t feel right before journey with more clarity than people in they begin comparing and contrasting a shortlist. other markets. Assessing what they want They are subsequently able to focus on a narrow and what else is available is relatively quick consideration set and hunt down the best car and painless. American consumers are used to for them. “Cars to me are more than transportation. They define you as person.” Male, US Where they begin We asked our consumers how they would rate their levels of knowledge, interest and understanding at the very start of the journey. Here’s how they compare: KNOWLEDGE* INTEREST* CONFIDENCE* 29% 40% 35% 34% 40% 60% 48% 55% 50% 36% 54% 47% * top 2 box
  • 13. READY, SET, DRIVE 01 OPEN TO POSSIBILITY 02 DECISION TO CHANGE Purchase Considerations I n other countries, personal factors (i.e. A consumer’s current state and motivation drive increase in wealth, changing family dynamic, the first two stages of the journey, and these tend change in commute, etc.) tend to weigh more to be very specific to an individual’s circumstance. heavily on the decision-making process than As a result, we’ll focus on influences during the in the US. This comparative lack of extraneous Evaluating, Shopping and Experiencing stages. concerns is another contributor to the smoother consumer journey we see in the US relative to the other countries examined. IN BRAZIL AND INDIA, ALMOST EVERYTHING IS TAKEN INTO CONSIDERATION Fuel efficiency 85% 91% 89% 85% Safety 82% 91% 89% 85% Price/payment 83% 90% 88% 80% Performance 76% 87% 84% 84% Warranty 76% 87% 83% 81% Body/style 72% 74% 81% 77% Brand 61% 75% 75% 75% Specific models/options 59% 69% 70% 73% Innovation tech 47% 75% 57% 73% Green/environment 39% 66% 40% 68% Stereo equipment 41% 53% 50% 62% Location of dealer 44% 56% 42% 60% GPS/navigation 31% 53% 39% 58% Hybrid technology 26% 62% 32% 63% Hands-free mobile tech 30% 43% 39% 55% Voice command tech 19% 41% 26% 43% Av. number of factors considered important 8.7 11.1 9.8 11.2 ...Whereas in the US and the UK, auto-buyers focus on fewer factors
  • 14. INFLUENCERS AND MINDSETS ALONG THE JOURNEY 03 Evaluating Worldview—How consumers navigate the journey Consumers in the Worldview phase make four key decisions: 1. ey confirm that they are going to buy a new car. Th 2. ey determine what they want from a new car. Th 3. ey decide how they’re going to make their decision. Th 4. ey establish a base consideration set of brands and models. Th T his early stage is critical for automobile seeking out a new category of car that’s marketers. For consumers, anticipation is less familiar to them. US auto-buyers are the dominant emotion here, although it’s predominantly looking for enrichment, often tinged with some regret at the passing of confidence and investigation. their current car and, in some markets, anxiety about how to make the best possible choice. Brazilian consumers approach the Evaluating stage quite differently as there is mistrust of media In the UK, deciding between a new or used car sources and less knowledge of the auto market is a common and often complex decision. in general, mostly due to a lack of strong brand And even once committed to a new car, some legacy. As a result, many Brazilian consumers consumers don’t know exactly what they want cycle through a “vortex of doubt” as they turn from it. Different emotional and functional need- to many different sources to try to make up states are fulfilled through car comparison and their minds. Partners inspire confidence here, review sites, with close family members such while cars on the street and seen at work provide as partners and parents also providing input. aspirational guidance. The influencers are slightly more diffuse than in other markets, however. For an Indian consumer, family acceptance of the proposed purchase is key, so the Worldview phase In the US, clarity and confidence are at their is focused on convincing friends and family what lowest in the Worldview phase; they both index at type of car should be pursued. First, a consumer 80, which is below average. Clarity and confidence must identify the purchase that seems to fulfill will eventually grow to 113 and 120 respectively their needs; then use the same logic to persuade at the moment before purchase. But compared the family and get buy-in before moving forward. to the UK and other markets, US consumers Indian consumers are already turning to media typically require only a quick assessment of what sources here to provide evidence. else might be out there, particularly if they are
  • 15. INFLUENCERS AND MINDSETS ALONG THE JOURNEY 03 Evaluating Aspirational Needs and opportunities How consumers navigate the journey Projection Discovery and Partner Current state Enrichment Dad • Served via partner and to a Current state lesser extent, friends and travel • Served via print and web Needs Opportunities autos content, particularly Functional Emotional Car review sites –Autos • Portable lifestyle-related autos consumer opinions Car comparison content: “most fuel efficient Needs Opportunities sites – Opinions small hatchbacks” • Video from experts to build Car Car review • Video: help auto-buyers confidence that consumer comparison sites sites – experience the car, engaging opinions alone cannot provide Opinions them with sight, sound • Early “fit” and “experience” Car review sites and motion comparison: more general, “softer” version of an Eliminate opportunity Informational Projection Enrichment Current state Current state • Served via partner, and to a • Currently served via autos lesser extent, Mom, search and dealer sites, and to a lesser (deals), and travel extent, friends and some TV Needs Opportunities Needs Opportunities • Portable autos content: • Expert opinions (text or “most fuel efficient small video): bridges enrichment sedans”, “safe family cars”, etc. and boosts confidence —distributed across network, • Early “fit” and “experience” including lifestyle comparison: more general, • Video: help auto-buyers ‘softer’ version of an experience the car, engaging Eliminate opportunity them with sight, sound and motion
  • 16. INFLUENCERS AND MINDSETS ALONG THE JOURNEY 03 Evaluating Needs and opportunities How consumers navigate the journey Discovery Projection Enrichment Current state Current state • Discovery not served • Served via autos and dealer • Projection served traveling sites, friends and to a lesser to work extent, TV Needs Opportunities Needs Opportunities • Portable autos content: • Expert opinions (text or video): “most fuel efficient small bridges enrichment and boosts sedans”, “safe family cars”, etc. confidence —distributed across network, • Early “fit” and “experience” including lifestyle comparison: general, “softer” • Video: help auto-buyers version of an Eliminate experience the car, engaging opportunity them with sight, sound and motion Discovery Projection Enrichment Current state Current state • Discovery not served • Served via autos and • Projection not served dealer sites Needs Opportunities Needs Opportunities • Portable autos content: “most • Expert opinions (text or video): fuel efficient small sedans”, “safe bridges enrichment and family cars”, etc.—distributed boosts confidence across network, including • Early “fit” and “experience” lifestyle and family needs comparison: general, • Video: help auto-buyers ‘softer’ version of an experience the car, engaging Eliminate opportunity them with sight, sound and motion
  • 17. influencers and mindsets along the journey 04 shopping: the terrain As consumers move into the active Shopping stage, they travel through three distinct phases: The Terrain, The Car The Deal. The Terrain: Eliminate T he Terrain consists of two steps: a deeper In the US, this step is where an assessment of analysis that starts with elimination of “fit” is made—an emotionally-led route where any car that doesn’t fit, which is followed consumers discard the cars that really won’t by a rigorous comparison of those that make work for them. This is a fairly clean, straight- it through. forward process. In the UK, eliminate and compare behaviors For Brazilians, this step tends to happen in exist, but they are often combined, and happen combination with comparison behavior, making in a more haphazard way. We call this “The Fog it a painful part of the consumer journey, and of Consideration”. No single source of influence sometimes causing a “vortex of doubt” that can stands out here, but car review and comparison reset the consumer’s Worldview, and set them sites, manufacturer sites and dealer sites help— back an entire stage. often found through search engines. There is great potential in the UK for consumers to “switch Indian consumers, however, often rely on family back” to their earlier Worldview. to help them eliminate options; this trust in the opinions of others helps them move through this phase relatively smoothly.
  • 18. influencers and mindsets along the journey 04 shopping: the terrain The Terrain: Eliminate Needs and opportunities How consumers navigate the journey Projection Enrichment Comprehension Current state Current state • Served via cars in street, travel, • Served via partner and work print and review sites Needs Opportunities Needs Opportunities • Virtual test drives, video • General ‘fit’ and ‘experience’ and 360 degree views: Must comparison: incorporating be prominently positioned factors of lifestyle, life stage— to encourage and facilitate perhaps with game elements Eliminate behavior before • Comparison that gets local: Compare begins prominently connect ‘fit’ and ‘experience’ elements to local dealers, influencing later stages • Again, a key benefit to consumers is in disentangling Eliminate and Compare, making their path smoother Projection Enrichment Current state Current state • Served via partner, as well as • Served via autos sites, some travel, work primarily comparison Needs Opportunities Needs Opportunities • Virtual test drives and • General “fit” and “experience” 360 degree views—makes comparison: incorporating eliminating options by how factors of lifestyle, life stage— well they fit, relatively hassle- perhaps using game elements free and accelerates this stage • Localized comparison: of the Journey prominently connect “fit” and • Video “experience” elements to local • Cross-category opportunities, dealers, influencing later stages especially in Travel content
  • 19. influencers and mindsets along the journey 04 shopping: the terrain The Terrain: Eliminate Needs and opportunities How consumers navigate the journey Projection Enrichment Current state Current state • Served via travel • Served via autos sites, Needs Opportunities primarily comparison • Virtual test drives and Needs Opportunities 360 degree views—makes • General “fit” and “experience” eliminating options by how well comparison: incorporating they ‘fit’ relatively hassle-free factors of lifestyle, life stage— and accelerates this stage of perhaps using gaming elements the Journey • Localized comparison: • Video prominently connect “fit” and • Cross-category opportunities, “experience” elements to local especially in Travel content dealers, helping influence “hunt” and “deal”, and making the path smoother Projection Enrichment Current state Current state • Not served • Served via autos sites, Needs Opportunities primarily comparison • Virtual test drives and Needs Opportunities 360 degree views—makes • General “fit” and “experience” eliminating options by how well comparison: incorporating they fit, relatively hassle-free factors of lifestyle, life stage— and accelerates this stage of perhaps using gaming elements the Journey • Localized comparison: • Video prominently connect “fit” and • Cross-category opportunities, “experience” elements to local especially in Travel content dealers, helping influence “hunt” and “deal”, and making the path smoother
  • 20. influencers and mindsets along the journey 04 shopping: the terrain The Terrain: Compare I n the Compare step, the real work begins: Clarity and confidence is no higher here than comparing the options. This is a compare- in previous stages—not until they come to a and-contrast task based on more detailed decision, at least. Consumers want a detailed auto specs, consumer and expert reviews, the understanding of the cars they are comparing, experience of seeing the vehicle in person, adding to their knowledge and ultimately building and—for a few—a test drive. But confidence the confidence to make the final decision. dips slightly as a result of diving deep into so many choices. In Brazil, there is a marked contrast with the US: influencers are still clustered on the more UK consumers are still enmeshed in “The Fog of emotional side of the ecosystem. As with the Consideration” at this point and risk backtracking Eliminate step, a lack of trust, knowledge and to earlier stages if they don’t start to build authority add to the “vortex of doubt.” Most enrichment and confidence. As consumers start consumers have no choice but to compare a larger feeling more organized, however, inspiration and number of options at a detailed level without first confidence starts to build. filtering them down to a manageable list. In the US, consumers compare detailed specs The opinions of family members guide Indian for all models in their consideration set. This is consumers through the onset of confusion, more serious, fact-based research, as we see from and this support continues into test drives. It’s the influencers clustered at functional side of the common to drive four to five cars—and to do ecosystem. There can be a slight dip in emotions so with family. There’s plenty of information to and mindset here; as the search becomes more consume too, including content from car review, intense and detailed, people are searching for a comparison and manufacturer sites. right answer. What car will fit me best?
  • 21. influencers and mindsets along the journey 04 shopping: the terrain The Terrain: Compare Needs and opportunities How consumers navigate the journey Discovery Enrichment Current state Confidence • Served via travel and cars Current state in street • Served via partner, friends and Needs Opportunities review sites • This behavior should really be Needs Opportunities pushed earlier in the Journey. • Focus on communication: as By encouraging Eliminate people make comparisons they behavior, the confusion that want to reach out to the people new discovery causes at this they know and trust stage can be removed • Goal is reaching confidence, hence important to link their enrichment information to thoughts of family and friends • Consumer reviews need triangulation—or approval— by inner circle Enrichment Needs Opportunities Confidence • Localized comparison: Current state prominently connect “fit” and “experience” elements to local • Overlaps between the two roles dealers, helping influence • Served with expert reviews, “hunt” and “deal”, and making manufacturer and dealer sites the path smoother pulling toward enrichment • A focus on communication: as • Buyer and partner opinions people make comparisons, they pull toward confidence want to reach out to the people they know and trust • The goal is reaching confidence: it’s important to link their “enrichment” information to thoughts of family and friends • Consumer reviews need triangulation—or approval— by inner circle
  • 22. influencers and mindsets along the journey 04 shopping: the terrain The Terrain: Compare Needs and opportunities How consumers navigate the journey Projection Enrichment Current state Current state • Served via travel • Served via autos sites, Needs Opportunities primarily comparison • Virtual test drives and Needs Opportunities 360 degree views—makes • Triangulate authoritative eliminating options by how well information with they ‘fit’ relatively hassle-free customer reviews and accelerates this stage of the Journey • Video • Cross-category opportunities, especially in Travel content Projection Enrichment Current state Current state • Served via Dad • Not served Needs Opportunities Needs Opportunities • Virtual test drives and • General “fit” and “experience” 360 degree views—makes comparison: incorporating eliminating options by how well factors of lifestyle, life stage— they fit, relatively hassle-free perhaps using gaming elements and accelerates this stage of • Localized comparison: the Journey prominently connect “fit” and • Video “experience” elements to local • Cross-category opportunities, dealers, helping influence especially in Travel content “hunt” and “deal”, and making the path smoother
  • 23. influencers and mindsets along the journey 04 shopping: The car The deal The Car The Deal B y the time they reach the midway point In Brazil, however, the Shopping stage is yet of the Shopping stage, auto-buyers have another where consumers don’t have all the pieces finally zeroed in on “the one.” They they need to feel good about their decision. A know the specs and options they want—and Brazilian auto-buyer can become focused on one how much they’re willing to pay for them. particular make and model, but if it doesn’t feel For some consumers, this stage is focused right, he’s pushed back several stages, to the messy on planning negotiation tactics and knowing process again. But if a consumer successfully where to give in. For others, it’s about finding settles into this phase, confidence starts to build, a specific car at exactly the right price and with commitment (at least partially) to a car. hunting it down remorselessly. Six out of ten consumers in Brazil will revert to earlier stage behavior here. Once consumers in the UK have finished their comparison work, they take one last look With test drives complete, consumers in India before they leap—there’s a pause to reflect on need confirmation from their families that their the purchase and plan the negotiation phase. intended decision is the right one. Again, it’s Confidence is rising and relief starts to kick in. a matter of keeping up the confidence in their preferred car, while seeking to get a better sense of For US auto-buyers, confidence and clarity are it and understanding all the options. As in Brazil, at an all-time high at this point. But maintaining six out of ten Indian consumers will revert to the confidence in their decision is key. Consumers Compare and Eliminate steps here. seek the final details they need to achieve full understanding of what they are getting into, as they think about how the car will fit into their daily lives.
  • 24. influencers and mindsets along the journey 04 shopping: The car The deal Needs and opportunities How consumers navigate the journey Projection Confidence Current state Current state • Served via partner • Not served Needs Opportunities Needs Opportunities • Lending Tree for cars/sharing • Local reviews of dealers data with dealers to reach out to build confidence going with deals into deal • Link between MSN Autos and • Maintain confidence in the car MSN Money content throughout deal and delivery • Location-based links to dealers, via communication of features combined with easy lifestyle and driver testimony data-sharing • Price comparisons and deal location via smartphone barcode scan Projection • Interesting partnership Comprehension opportunities—and great link between MSN Autos and MSN Current state Money content • Not served • Location-based links to dealers, Needs Opportunities combined with easy data • Lending Tree for cars/sharing sharing (less personal data, data with dealers so they can more needs/lifestyle/fit data) reach out with deals: exists but • Price comparison and deal is not well known location via smartphone barcode scan
  • 25. influencers and mindsets along the journey 04 shopping: The car The deal Needs and opportunities How consumers navigate the journey Projection Needs Opportunities Comprehension • Authoritative content from car Current state experts would better serve the comprehension need-state • Served only by car review sites Projection • Interesting partnership Comprehension opportunities—and great link between Autos and Current state Money content • Not served • Location-based links to dealers, Needs Opportunities combined with easy data • Lending Tree for cars/sharing sharing (less personal data, data with dealers so they can more needs/lifestyle/fit data) reach out with deals: exists but • Price comparisons and deal is not well known location via smartphone barcode scan
  • 26. influencers and mindsets along the journey 04 shopping: The car The deal DealERS M ost consumers go to the dealer with the When it comes to the actual purchase, consumers intention of buying a specific car, armed tend to buy from dealers they like. Our research with all the facts they need to get to the showed that 49% of purchasers globally liked the best price possible—and then get out as fast as dealer they bought from “a lot”. Consumers who they can. They typically begin relying on mobile are less confident generally are less positive about technology to locate dealerships and get on-the- dealers overall. fly information. Once there, consumers may be lucky enough to have a favored and friendly dealer; otherwise the dealership experience is somewhere between a game and a battle. On a scale of 1-5 with 5 as ‘liked a lot’, how did you like the dealer you bought from compared to other dealers? 120 100 80 1 2 60 3 4 40 5 20 0 Dealer Bought From Other Dealers “My smartphone is my rock, my life. It’s portable and discreet.” Female, US
  • 27. influencers and mindsets along the journey 05 experiencing Ownership A t an average of just over five months into From filtering through unhelpful information to the journey globally, consumers have their securing the financing, navigating the journey for vehicle. Now, the focus is on the car: how Brazilians is not easy. At this point, consumers it performs and how others react to it. Consumers tend to feel relief that the process is over. Most personalize cars just as they would a new mobile can’t help making a few checks though, just to phone. There’s a period of discovery, where be sure they made the right choice. They are still people explore unexpected features. Typically, the seeking to understand the car better, but this time, honeymoon period isn’t long-lasting, though. The they only have one vehicle to research amount of ongoing dealer contact and warranty and explore. activity required by consumers helps validate their decision—or fill them with regret. Car-buyers in India tend to expect an easy post- purchase relationship with the dealer, but this In the UK, new owners try to work out how to phase is primarily about the family reconfirming make the most of their purchase, and this often the choice and fully experiencing the new car. results in quick checks against review sites to Consumers will subsequently get comfortable make sure they got the best deal on the ideal with the technical elements and show off their car. They’ll also seek the opinion and judge the new purchase on their social networks. reaction of their partner. US auto-buyers tend to swing back over to the emotion side of the ecosystem. Clear, confident, relieved and proud of their decision, they tend to trust the way they made the decision and the end result. They might even love their new purchase so much that they give their new car a name.
  • 28. influencers and mindsets along the journey 05 experiencing Needs and opportunities How consumers navigate the journey Projection Confidence Current state Current state • Not served • Not served Needs Opportunities Validation Advocacy • Later ownership stage to be Needs Opportunities served through portable autos content and video—as covered • Encourage greater linkage in Worldview stage between validation and advocacy Comprehension • Reviews easily linked or co- Needs Opportunities published on social networks • Facilitate contact between • More sharing of decision manufacturer and consumer process (e.g. ‘Pinterest for cars’) • Encourage driver testimony to validate choices and inspire usage of newly purchased car Projection Validation Current state Needs Opportunities • Served only via partner • Encourage greater linkage Needs Opportunities between validation and advocacy • Later “ownership” stage to be served through portable autos • Enable reviews on MSN Autos content and video to be easily linked or co- published on social networks Comprehension • Allow for greater sharing of Current state decision process (e.g. “Pinterest • Not served for cars”) Needs Opportunities • Facilitate contact between manufacturer and consumer
  • 29. influencers and mindsets along the journey 05 experiencing Needs and opportunities How consumers navigate the journey Projection Validation ( Advocacy) Current state Needs Opportunities • Served via dealer sites • Encourage greater linkage Needs Opportunities between popular validation and less common advocacy • Show how the new purchase fits into his/her life via customized • Enable reviews on MSN Autos mobile content to be easily linked or co- published on social networks • Allow for greater sharing of decision process (e.g. “Pinterest for cars”) Projection Validation ( Advocacy) Current state Needs Opportunities • Only served via partner • Encourage greater linkage Needs Opportunities between popular validation and less common advocacy • Later ownership stage to be served through portable autos • Enable reviews to be easily content and video linked or co-published on social networks Comprehension • Allow for greater sharing of Current state decision process (e.g. “Pinterest • Not served for cars”) Needs Opportunities • Facilitate contact between manufacturer and consumer
  • 30. Reach and engage consumers at every step HOW MICROSOFT advertising CAN HELP At Microsoft, we’re developing new ways to bring marketers and consumers closer together along the path to purchase. Here’s just one example: T DECISION TO CHANGE he study “The Consumer Journey: Auto- Buyers” demonstrates that marketers no longer have a captive audience reached through a select few points of influence. As a Motivation result, it’s difficult to know and understand where Consumers are usually motivated to make a you should invest marketing dollars along the change because of personal circumstances. But path to purchase for optimal impact. some consumers admit they simply buy a new car because they want one. Microsoft enables Both consumers and marketers find themselves consumers to investigate something that catches in a challenging new environment, where too their eye, without doing any hard work, via many choices and complexity can often obfuscate Kinect’s integration with Bing. the right solution or purchase decision at any given time. But knowing how to harness digital EVALUATING channels can help start to close that divide, reaching and inspiring consumers at the right place and time, clarifying their choices and Worldview enabling easier decision-making. In the Evaluating stage, the Worldview phase provides consumers with a route into their early research using lifestyle content. MSN Autos in OPEN TO POSSIBILITY the US—with 5.5 million unique users—provides top ten lists and other helpful ways to start Current state researching in a way that helps establish early ‘fit.’ While consumer brand associations run deep in the US and UK, they’re more open in emerging markets. Xbox LIVE drives high brand lift when consumers are paying attention in a lean-forward gaming environment. Ad effectiveness research on more than 20 campaigns shows double-digit lifts across key brand metrics (Microsoft Internal, 2012). And in fact, in the Consumer Journey: Auto-Buyers study, 30% of consumers in the US and UK said they would be interested in experiencing a test drive through a gaming environment.
  • 31. Reach and engage consumers at every step HOW MICROSOFT advertising CAN HELP SHOPPING EXPERIENCING The Terrain Ownership As consumers begin the heavy job of eliminating Windows 8 apps on Microsoft’s new Surface and comparing options, MSN Autos provides a tablet are an ideal way for consumers to continue single location for reviews, professional ratings interaction with the car manufacturer throughout and compelling video, bringing to life a consumer’s the ownership process. Now, the brand becomes an consideration set. information source—and helps drive validation. The Car The easy integration of MSN Autos and MSN Money makes it easy for consumers to feel confident before entering negotiations with the dealerships. The Deal Local dealership listings on the MSN Autos mobile app enable consumers to leave a dealership they don’t like, and easily find one nearby that they do.
  • 32. About Microsoft Advertising Global Insights Analytics Natasha Hritzuk Kelly Jones Senior Director of Global Insights Head of Marketing Insights natashah@microsoft.com kellyjon@microsoft.com New York, NY New York, NY W hile many tech and media companies conduct market research that describes what consumers are doing, the Microsoft Advertising Global Insights Analytics team believes innovation stems from getting at the why. As a result, we go beyond behavior to focus on why consumers do what they do—whether that’s choosing one brand over another, or exhibiting a preference for a specific platform. Our goal is to create more robust, insights- driven narratives that put a human face on our audience, making it easier for customers to tell creative, relevant and connected stories across platforms. ©2012 Microsoft Corporation. All rights reserved. This document is provided “as-is.” Information and views expressed in this document, including URL and other Internet Web site references, may change without notice. You bear the risk of using it. Some examples are for illustration only and are fictitious. No real association is intended or inferred. This document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal, reference purposes.