SHOPSMART AUTO – CUSTOMER INFORMATION – JANUARY 19, 2021

Fewer new car shoppers are delaying their purchases because of the COVID-19 pandemic. That’s one of the main findings of the winter edition of the J.D. Power 2021 U.S. Manufacturer Website Evaluation Study. The report also found that more consumers are using digital tools to shop for new vehicles and that Jeep has what buyers judge to be the most straightforward website to use among mass-market car brands. Land Rover has the best among the luxury nameplates. According to the study, 35% of those surveyed said they are delaying buying a new vehicle, a decrease of five percentage points from the summer of 2020. Many consumers also now express comfort with buying a car online: 45% J.D. Power said. Customer confidence is growing as manufacturer websites continue to become more sophisticated and better meet shoppers’ expectations. “The digital retail space continuously evolves, but the pandemic forced many manufacturers to speed up the process,” said Jon Sundberg, senior manager of digital solutions at J.D. Power. He said the websites are moving beyond the traditional research tools such as images and videos into a process that facilitates digital sales. “This new world of online vehicle purchasing is constantly evolving,” Sundberg added. Automakers are creating sales portals focused on mapping out payments or building a deal. That includes applying applicable incentives, taxes and fees, calculating an actual trade-in value, as well as other add-ons such as extended warranties, he said. The study is a semiannual study that looks at how consumers judge the usefulness of automotive manufacturer websites during the car buying process. It looks at four key measures: information/content, navigation, appearance, and speed. In its study, J.D. Power separated brands into mass market and luxury segments. The average consumer satisfaction rating in the mass market segment was 827 on a 1,000-point scale. The average was 832 for luxury brands. Although J.D. Power ranked the brands best to worst, the differences between companies were often minimal. Just four points separated the top four brands in the luxury segment. Consumers should look at whether a brand scores well above or below their respective segment averages rather than small differences in the rankings, Sundberg said. “Jeep and Dodge both significantly outperform the mass market average and Land Rover and Lexus significantly outperform the luxury average. This means that these brands are creating an experience that is truly differentiated from their segment average,” he said. Jeep ranked the highest regardless of segment, scoring 850. Dodge, a sister Fiat-Chrysler Automobiles brand and Toyota each rank second in a tie at 839. Ford followed them at 838 and Mitsubishi at 835. Volkswagen was the lowest scoring brand in either segment at 798. The four other lowest-scoring brands were Mini and Mazda, tied at 808, following by Kia at 815 and Ram at 818. Automakers didn’t earn consistent ratings. While Jeep was on top, its sister brand Ram—which sells trucks and vans—scored near the bottom. “This drives home the point that there is no one way to deliver the right experience – especially with digital,” Sundberg said. Truck shoppers, for example, have different expectations and online behaviors than sedan or electric vehicle buyers. Make It A Champion Day!

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