More vehicle buyers turn to Internet for information

Buyers of new vehicles in Vietnam are increasingly turning to the Internet to search for information, according to the J.D. Power Asia Pacific 2011 Vietnam Sales Satisfaction Index (SSI) Study.

The results of the study were released in a statement by Hyundai Thanh Cong on Wednesday.

The study found that seven in 10 new-vehicle buyers in Vietnam use the Internet to research vehicles during the shopping process. Buyers who have researched vehicles on the Internet have a greater propensity to shop across brands and dealerships, with 70% of them visiting at least one other dealer, compared with only 45% among non-Internet users.

“With growing Internet penetration and an increasing number of younger buyers, the Internet plays a critical role in influencing the vehicle purchase decision of customers in Vietnam,” Rajeev Nair, senior manager at J.D. Power Asia Pacific said in the statement. “The information buyers see on the Internet influences their perceptions and expectations. Manufacturers and dealerships that can proactively use this platform to engage customers stand to benefit from this trend.”

Now in its third year, this study examines seven factors that contribute to overall satisfaction with the new-vehicle buyer sales experience in Vietnam (listed in order of importance): delivery process, delivery timing, sales initiation, paperwork, salesperson, dealer facility and deal.

Among the six brands ranked in the study, Hyundai came first with an overall score of 875 on a 1,000- point scale, performing particularly well in six of the seven SSI factors: salesperson, sales initiation, deal, delivery process, dealer facility, and paperwork. Following Hyundai in the rankings are Honda (869) and Toyota (861). GM Daewoo improves more than any other brand from 2010.

Overall sales satisfaction has increased by 20 points from 2010 to an average of 861 in 2011. The industry improves from 2010 in all seven factors, with the largest gain in delivery timing.

“Customers are excited about their new-vehicle purchase and eagerly look forward to receiving their vehicle,” said Nair. “Dealerships that are able to best manage customer expectations on delivery time through accurate initial estimates and then meet the time promised to the customer benefit from increased customer satisfaction.”

The study found that among owners who are highly satisfied with their purchase experience at the dealership (SSI scores averaging above 910), 53% said they “definitely will” recommend their purchase dealer to a friend or relative. These owners are also three times more likely to repurchase the same brand in the future.

Almost 82% of customers indicated that when deciding which make and model to purchase, they asked for recommendations from their friends and relatives—the most commonly sought source of information. “Satisfied customers can strongly support manufacturers’ branding initiatives through strong word of mouth recommendations,” said Nair. “Dealerships that provide customers with a delightful sales experience stand to gain from the positive recommendations they provide to friends and relatives who are considering a new vehicle purchase.”

The 2011 Vietnam Sales Satisfaction Index Study is based on responses from 900 new-vehicle owners who purchased their vehicle between October 2010 and June 2011. The study was fielded from May to July 2011.