Distinct Consumer Needs And Motivations Across Different Regions In India

Regional variations in new-vehicle shoppers’ purchasing motives  strongly influence vehicle purchase considerations, as well as rejection patterns in India, according to the J.D. Power Asia Pacific 2011 India Escaped Shopper Study.

The study analyzes reasons why new-vehicle shoppers consider but ultimately reject certain models in favor of another and identifies 50 possible reasons why shoppers reject a particular vehicle.Although high price continues to be the most important reason for rejection across all four regions in India, each region displays a unique pattern of buying behavior and preferences.

In the North, exterior design and styling is not only the most frequently cited reason for purchase, but also the most frequently cited reason for rejection. In contrast, new-vehicle shoppers in the West display sensitivity to not only the acquisition cost of the vehicle, but also the running and maintenance cost. In the South, high price and the opinion of family and friends are the top two most important reasons for rejection.“The same consumption choices are made for very different reasons among the incredibly diverse regions of India,” said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore. The study also finds that prospective new-vehicle buyers tap various sources of information before making their purchase decision. In contrast, the proportion of new-vehicle buyers who rely on the recommendation of the dealer salesperson has declined to 12 percent in 2011 from 20 percent in 2008.“In India, advice of friends, relatives and other owners of the same make play an influential role in the decision-making process,” said Arora. High price continues to be the most-often-cited reason for vehicle rejection for yet another year, with nearly one-third of shoppers rejecting a model because the price is too high. The study finds that average reported transaction prices have increased by 8 percent in 2011, compared with 2010, with increases occurring across all vehicle segments. Cross-shopping activity among new-vehicle buyers in India has declined, as they are considering fewer models during their shopping process. 

Cross-shopping rates have declined marginally to 23 percent in 2011 from 24 percent in 2010.In recent years, the proportion of new-vehicle buyers who consider only one model and ultimately purchase it (non-shoppers) has grown steadily. In 2011, 81 percent of cross shoppers visited dealerships selling models on their consideration list, compared with 76 percent in 2010 and only 69 percent in 2009.

For a seventh consecutive year, Maruti Suzuki performs well in persuading new-vehicle shoppers to purchase the brand, with 40 percent of all shoppers eventually purchasing a Maruti Suzuki model. Buyers of Ford, Hyundai and Volkswagen models tend to shop around the most before purchasing their vehicle, while buyers of Honda and Mahindra models are least likely to consider another model during the shopping process. 

The 2011 India Escaped Shopper Study is based on responses from 6,840 buyers and 1,962 rejecters of new cars and utility vehicles who purchased their vehicle between September 2010 and April 2011. The study was fielded between March and July 2011.