Crisis started with the fall of financial giant Lehman Brothers seems no end atleast in the near future. One after the other company’s, sectors and many more are coming under the limelight every day. This is a serious issue and a matter of concern since no one knows where it will end.
Auto sector is not un-affected by the current crises, in every country whether its US or Japan, it’s there everywhere…
It’s the public, which is hit hardest by current scenario and is clearly visible by the change in their buying patterns.
According to the latest survey by the research giant TNS Global, consumers have delayed there Vehicle Purchase Decisions and there are many reasons to it, including:
1) Recession
2) Lack of confidence, and
3) A weak stock market.
Result was drawn on the basis of responses collected from more than 2500 respondents from USA.
Adding further, there are two camps: Excluding those that they do not buy new vehicles, 43% have not changed their purchase horizon. But nearly half said they have delayed a purchase by over 6 months or are opting for a used vehicle instead. Few have delayed for less than 6 months or are buying sooner (to capitalize on deals).
When asked that what would re-start vehicle sales, resolving the banking crisis was the top answer, which may be tied to consumers’ inability to get credit. Opposite to established notions, only 13% felt incentives and related deals on vehicles would help.
Results indicate that current crises have segregated customers into two broad categories, one who are still in market and others who are now out of the market. For the former, it is crucial to quantify and influence consideration and shopping behavior continuously, and to address the credit challenge. For the latter, consider tapping into revenue associated with delayed (and used vehicle) purchases, such as from parts and service.
But it is also crucial that brands remain top of mind with those consumers when they do come back.
1) Recession
2) Lack of confidence, and
3) A weak stock market.
Result was drawn on the basis of responses collected from more than 2500 respondents from USA.
Adding further, there are two camps: Excluding those that they do not buy new vehicles, 43% have not changed their purchase horizon. But nearly half said they have delayed a purchase by over 6 months or are opting for a used vehicle instead. Few have delayed for less than 6 months or are buying sooner (to capitalize on deals).
When asked that what would re-start vehicle sales, resolving the banking crisis was the top answer, which may be tied to consumers’ inability to get credit. Opposite to established notions, only 13% felt incentives and related deals on vehicles would help.Results indicate that current crises have segregated customers into two broad categories, one who are still in market and others who are now out of the market. For the former, it is crucial to quantify and influence consideration and shopping behavior continuously, and to address the credit challenge. For the latter, consider tapping into revenue associated with delayed (and used vehicle) purchases, such as from parts and service.
But it is also crucial that brands remain top of mind with those consumers when they do come back.
Based on recent study by TNS-global.
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