Understanding consumer behaviors in the automotive industry
The automotive industry is constantly evolving. Staying on top of the latest trends is crucial for companies to stay competitive. Apart from this, companies must not lose sight of the fundamentals of the business, especially understanding the consumers’ ever changing behaviors.
Household size and purchase decision-maker in the automotive industry
One such behavior is the fact that purchasing a car is more of a group decision. According to research, the number of decision makers involved in the car buying process increases as the household size increases. In fact, 65% of those living in a single household in Germany consider themselves as purchase decision makers for vehicles. In reality, this means that adults who live alone are still heavily influenced by their family, friends, or network in general.
Source: Global Consumer Survey. (December 13, 2022). Statista
Household size as a car purchase trigger
Another explanation for this is how a growing family is an important trigger to purchase a car. As families grow, their need for a larger, more spacious vehicle increases. Automotive companies can take advantage of this trend by targeting their marketing efforts towards families. Companies can highlight the spaciousness and practicality of their vehicles. This means that automotive companies need to take a more holistic approach to their marketing efforts. This can be done by targeting not just the individual who will be driving the car, but also their family members who may be involved in the decision-making process. However, this can be challenging as having more than one target audience in a campaign or even a material can make it less effective.
Source: Global Consumer Survey. (December 13, 2022). Statista
Majority of potential car buyers are already car owners
Majority of those with intentions to purchase a car already own a car, either through their own means or through a company car. This means that convincing existing car users to buy a new car will be easier than those who have never owned a car. Automotive companies then need to focus on building brand loyalty. One way to do this is to incentivize existing customers to upgrade to newer models or to at least stay with the brand.
Source: Global Consumer Survey. (December 13, 2022). Statista
Building loyalty is easier said than done. Even with the cost barriers, research shows that 50% of car owners are willing to change car brands. Unsurprisingly, the main driver for this is dissatisfaction with their current vehicle.
Source: Global Consumer Survey. (December 13, 2022). Statista
How Marketing Mix Modelling can help the automotive industry
Automotive companies need to carefully craft their campaigns and strategize how to cut through all the clutter in the digital space. In order to do this, companies can leverage the power of Marketing Mix Modelling and Data Science to optimize their marketing efforts and reach their target audience more efficiently. By analyzing customer data, companies can gain a better understanding of their customers’ preferences and behavior. They should be able to tailor their marketing efforts accordingly.
Source: Global Consumer Survey. (December 13, 2022). Statista
This is where Indaru can help. Indaru specializes in Marketing Mix Modelling (MMM) and provides a range of services. These services include Media Audits, Data Analytics, and Media Consulting, all of which can help automotive companies improve their marketing efforts. By conducting a Media Audit, Indaru can help automotive companies identify areas of their marketing strategy that need improvement. We can also provide recommendations for optimizing their media spend. Through Data Analytics, Indaru can help companies analyze customer data to gain insights into their behavior, preferences, and needs. Finally, through Media Consulting, Indaru can help automotive companies develop effective marketing strategies that leverage the latest trends in the industry.
In conclusion, the automotive industry is constantly evolving, and staying on top of the latest trends is crucial for companies to stay competitive. By taking a more holistic approach to their marketing efforts, leveraging the latest trends, and working with partners like Indaru, automotive companies can optimize their marketing efforts and reach their target audience more efficiently.
Contact us to learn more about how Indaru and Marketing Mix Modelling can help your company stay competitive in the ever-evolving automotive industry.
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