Storyforward. Journey: Auto-Buyers. Influences & Mindsets along the Path to Purchase

Transcription

1 Storyforward The Consumer Journey: Auto-Buyers Influences & Mindsets along the Path to Purchase

2 Table of Contents Storyforward Executive summary... 3 Introduction... 4 Methodology... 5 Market overview... 6 Journey model... 7 The ecosystem of influence Ready, set, drive Open to Possibility Decision to Change Influencers and mindsets along the journey Evaluating Shopping: The Terrain Shopping: The Car & The Deal Experiencing Reach and engage consumers... 30

3 Executive Summary 1. Consumers across markets experience five distinct stages as they travel along the auto path to purchase, and digital media plays a critical role at each stage. 2. US consumers move through the path with relative ease due to a long legacy of home-grown industry knowledge. But many consumers experience switchbacks to earlier stages, based both on unique cultural and infrastructural realities, as well as needs that go unfulfilled by media and technology. 3. Most consumers establish their consideration set by determining the best fit for their current lifestyle. Marketers should leverage content such as Top Ten Family Cars or Best City Vehicles to help consumers establish their early fits before they embark on heavier eliminate-and-compare research. 4. Consumers seek ways to avoid switchbacks to earlier stages of the journey through a combination of authoritative content, expert reviews, consumer opinions and local dealer information across PCs, tablets and mobile phones. Marketers should consider ways to help consumers triangulate and store their research to keep it accessible at home, at work and on-the-go. 5. Consumers seek enrichment opportunities where they can experience the car before they get to the dealership. Rich media, video and interactive gaming can bring the test drive experience and feeling of driving the car alive and foster more confidence before consumers interact with dealers. 6. Consumers are more likely to purchase from a dealer they like, but there are myriad opportunities to enhance the dealership experience through touch screen technology and ongoing mobile communication. 7. Consumers who personalize their vehicle post-purchase, via mobile apps and communication technologies, are more likely to become loyal advocates for the brand. Marketers should leverage the window of opportunity after a new purchase to encourage consumers to fully integrate mobile and in-car technologies. 8. While knowing where consumers go for information is a critical part of media planning, marketers who understand the emotional or functional needs of consumers at each stage in the journey will be better able to develop effective messages across media channels that build brands and enable decision simplicity.

4 Introduction When I first drove, the car was everything. It meant freedom. Female, US From famous movie stars leaping into getaway cars to beloved childhood cartoons that bring vehicles to life, the iconic imagery of the automobile has been with most of us since our earliest memories. Cars evoke freedom, lifestyle, status and mobility. And for many consumers, they represent one of the biggest purchase decisions they make over their lifetimes. But while our grandparents had a finite and well-known set of influences when purchasing a car, it s a different story today. The proliferation of digital channels is reshaping the way consumers make purchase decisions; they take more time, complete more research, and travel through more points of influence than ever before. As a result, consumers are faced with an overabundance of information, while marketers are also facing new challenges: how to engage their audiences at the most relevant points of influence. At Microsoft Advertising, we believe marketers can get closer to consumers in a more meaningful way by gaining a deeper understanding of consumer needs throughout their journey, and how digital channels can meet those needs. For The Consumer Journey: Auto-Buyers study, we partnered with Ipsos Media CT and Iposo OTX to transform the traditional sales funnel into a consumer-centric model, one where consumer behavior and need-states drive marketer opportunities and solutions. The Consumer Journey: Auto-Buyers addresses the following questions: How do consumers travel along the path to purchase? What points of influence including media, activities and other people do consumers encounter when researching cars? How are local markets unique? How can manufacturers in emerging markets such as Brazil and India start to create brand equity with a large and influential emerging middle class? What types of interactions trigger specific outcomes, such as making a purchase, sharing recommendations or experiences with a friend, going to the dealership or changing long-term associations with brands? What emotions and consumer need-states are involved when people are considering car brands, researching, searching or discussing autos with their friends and family? Where are the gaps in the journey? At what points do consumers need help, and what are the opportunities for specific platforms to assist in making the process smoother?

5 METHODOLOGY Quantitative and qualitative: Brazil, India, UK & US Microsoft Advertising partnered with Ipsos Media CT and Iposo OTX over a five-month period from February to June 2012, leveraging both quantitative and qualitative methodologies to uncover the influences, behavioral themes and mindsets of consumers as they make buying decisions for economy and mid-size cars. The first stage consisted of qualitative and consumer-led discussions, where we sought to understand each individual purchase journey, while exploring influences in terms of people, place, content, media and devices. With indepth interviews in each country Brazil, India, the UK and the US we uncovered the patterns of decision-making with a unique emphasis on emotions, behaviors and triggers for action throughout the path to purchase. We followed up with consumer online diaries, where we tracked and validated behavior over the following month. For the quantitative segment, we built a questionnaire for a panel of 1,000 consumers in each market (Brazil, India, UK, US)* where we mapped the influences, triggers and emotions at each step along the path to purchase. This enabled us to draw out the influencers and milestones, and subsequently quantify the channels, people and brand experiences along the journey in order to identify successful connection points, as well as gaps where opportunities for interaction between marketers and consumers could be improved. * Quantitative Sample = 1002 (Brazil), 1022 (India), 761 (UK), 1106 (US); +/- 3.10% (Brazil), 3.07% (India), 3.55% (UK), 2.95%(US) at the 95% confidence level.

6 Market overview Brazil, India, US & UK I saved from my first job in a fish and chip shop to buy my first car and was very proud of myself! Female, UK More than 60 million passenger cars will be produced in 2012, according to the International Association of Auto Manufacturers that s 165,000 new cars on the market every day. And much of that growth is driven through emerging markets. In Brazil, where business is thriving and the emerging middle class is acquiring new consumption patterns, the automotive industry has beaten its forecast for five years running.* But we found that overall cost considerations, including fuel consumption, availability of parts and ease of maintenance are all still significant factors in choosing a car. The feeling or experience of driving was also critically important to the consumers we spoke to, more so than the image the car projects. India, where local sales are up 7% this year**, is reaching the very first stages of mass motorization. For middle class consumers, we found that image is important and so is the feeling of driving the right car. As one consumer put it, cars define you in the same way that technology does. Perhaps not surprisingly in a market where the tech industry is booming, the desire for new and better features is more predominant in India than in other markets (39% vs. a global average of 33%). The United States and the United Kingdom, where markets are more saturated, offer a compelling contrast. The homegrown US automotive industry carries a long brand lineage, and average consumers have bought and owned cars for several generations. Throughout US history, commercial content and American literature have associated cars with freedom, rugged individuality and the myriad options available on the open road ( Whither goest thou, America, in thy shiny car in the night? Jack Kerouac, On the Road). Despite a reduction in car manufacturing in the UK, commercial auto imagery is still associated with classic, urbane style think James Bond and often drenched in sex appeal. But petrol and tariffs are high, and the UK consumers we spoke to tended to take a slightly more hesitant path to purchase as a result. * Brazil s Record Car Sales to Continue, The Rio News, January 2012 ** India Car Sales Rise 6.7%, The Wall Street Journal, August 2012

7 JOURNEY MODEL The right fit for where you are now Cars are a major purchase for most consumers and demand a rational decision-making process, but we often underplay the emotional factors that persist throughout the journey. In established markets in particular, people start out with pre-conceived ideas and brand preferences that are difficult to change. But consumers still feel pressure to work out what they want and how they approach the buying process. The Consumer Journey: Auto-Buyers research reveals five key stages on the path to purchase. The first three stages build clarity, and the last two build confidence. Both the clarity and confidence need-states have a dynamic range that varies by country, from clarity to confusion, and then from confidence to uncertainty. Each stage contains at least one phase that is specific to the automotive category, described overleaf.

8 JOURNEY MODEL The right fit for where you are now OPEN TO POSSIBILITY From what our parents drove and what we ve owned in the past, to the influence of glossy advertising campaigns, cars are everywhere and every encounter we have with them shapes our perceptions. Some consumers, especially in developed markets such as the US and UK, have established solid brand preferences over the course of their lives, which help them move through their auto-buying journey faster and with more certainty. Other individuals may approach car buying in a more open way. This openness, however, can often prolong the process. When I first drove, the car was everything. It meant freedom. Female, US DECISION TO CHANGE Motivation Over time, a consumer s new car becomes his current car. Some purchases are driven by the age of the car, while for some, the motivation to purchase a new car is linked to a life-change: the birth of a child, a new job in a new city or the freedom of becoming an empty nester. Very occasionally the motivation may be the strong desire for a specific car a desire that can be driven purely through advertising.

9 JOURNEY MODEL The right fit for where you are now EVALUATING Worldview In the Worldview phase, there are generally four steps that the consumer has to work through: confirming if he or she is going to buy a new car, working out what he or she wants from a new car, determining how he or she is going to make the decision, and establishing a level of brands or models. Those with solid brand preferences or past experience get through this stage quickly and easily, but most consumers have trouble with some, or all, of these steps. In some cases, it may be difficult for the consumer to work out how to get the information needed to move on to the next stage. I use the Internet for all kinds of information online. Male, Brazil SHOPPING The Shopping or In-store stage happens in a unique manner for car buying. Most of the eliminate-and-compare activity that consumers naturally exhibit when researching purchases happens online, well before people make it to the dealership. Three phases make up this stage for auto buyers. The Terrain In The Terrain phase, consumers commit to buying a new car. Their consideration set is based on experience, trusted recommendations, advertising and some light research. Some makes and models will not be the right fit and consumers will eliminate these quickly. After a bit more light exploration, they re down to a smaller group. At this point, the real work begins: a compare-and-contrast task based on more detailed specs, reviews, seeing the vehicle in person, and for a few an early test drive. The Car At this point, consumers are focused on the one. They ve narrowed the choice down to a car, specification and options. For some, The Car phase comprises planning negotiation tactics and knowing where to compromise. Others are determined to hunt down the one ideal car at exactly the right price. The Deal Ideally, the consumer wants to go to the dealer to buy a specific car, armed with all the facts that he or she needs to get the best price possible. He or she will want to meet his or her objective and then get out as fast as he or she can.

10 JOURNEY MODEL The right fit for where you are now EXPERIENCING Ownership The final stage of the consumer journey is focused on the car, how it performs and how others react to it. More than ever, consumers personalize their vehicles through technology, and often discover unexpected features that can drive their advocacy, such as integration with their smartphones via apps and other technologies. This is where consumers not only determine their personal satisfaction with the vehicle, but also seek out external post-purchase validation through reviews, friends, family and even media. Clarity & Confidence The following figures (clarity, then confidence) are derived from market-level index data, where 100 is average. Country Worldview Eliminate Compare Clarity/Confidence The Car & The Deal Ownership Brazil 92/92 109/93 93/99 100/ /112 India 86/90 105/95 104/ / /108 UK 90/91 88/92 98/99 102/99 119/116 US 80/80 99/94 96/91 114/ /113

11 The ecosystem of influence People, media and activities Aspirational If I m honest, I m driven and influenced by media more than I d like to admit. Female, UK Functional Emotional Key Size: degree of influence Effectiveness/impact of influence People Media Activities Location : Alignmentw ith segment (closer to edge = more specific) Informational At each part of the journey described above, we highlight the influencers at play, as well as the consumer mindset. Effectiveness The outer-ring of the bubble shows the degree to which an influence has a lot of influence vs. a little influence at this stage (more complete = more effective). The size of the bubble is determined by the following data: 70% and above = more coverage from outer ring 55-70% = middle-weight coverage from outer ring <55% = smallest coverage from outer ring Specificity How closely aligned an influence is with the specific role in which it is placed (closer to edge = more specific). Frequency This is the degree to which an influence is sought (larger = more used). 48% and above = largest circle 32-48% = mid-sized circle <32% = smallest circle Function of influence Placement of the bubble and its relationship with other bubbles within the segment shows the role the influence is primarily serving. Consumer need-states Comprehension: Making sense of the information I have to help me make a smart decision. Projection: Thinking about what might work and how the car would fit my lifestyle. Visualization: Imagining or dreaming about what I want. Discovery: Getting ideas to help me figure out what fits. Enrichment: Going deeper and learning more about the cars I m considering. Confidence: Being certain that I have what I need to make the right decision. Validation: Getting evidence and support that confirms my thinking. Investigation: Getting very specific information that fills knowledge gaps.

12 READY, SET, DRIVE 01 OPEN TO POSSIBILITY 02 DECISION TO CHANGE CURRENT STATE & MOTIVATION In the US, consumers generally begin their journey with more clarity than people in other markets. Assessing what they want and what else is available is relatively quick and painless. American consumers are used to eliminating the cars that don t feel right before they begin comparing and contrasting a shortlist. They are subsequently able to focus on a narrow consideration set and hunt down the best car for them. Cars to me are more than transportation. They define you as person. Male, US Where they begin We asked our consumers how they would rate their levels of knowledge, interest and understanding at the very start of the journey. Here s how they compare: KNOWLEDGE* INTEREST* CONFIDENCE* 29% 40% 35% 34% 40% 60% 48% 55% 50% 36% 54% 47% * top 2 box

13 READY, SET, DRIVE 01 OPEN TO POSSIBILITY 02 DECISION TO CHANGE Purchase Considerations In other countries, personal factors (i.e. increase in wealth, changing family dynamic, change in commute, etc.) tend to weigh more heavily on the decision-making process than in the US. This comparative lack of extraneous concerns is another contributor to the smoother consumer journey we see in the US relative to the other countries examined. A consumer s current state and motivation drive the first two stages of the journey, and these tend to be very specific to an individual s circumstance. As a result, we ll focus on influences during the Evaluating, Shopping and Experiencing stages. IN BRAZIL AND INDIA, ALMOST EVERYTHING IS TAKEN INTO CONSIDERATION Fuel efficiency 85% 91% 89% 85% Safety 82% 91% 89% 85% Price/payment 83% 90% 88% 80% Performance 76% 87% 84% 84% Warranty 76% 87% 83% 81% Body/style 72% 74% 81% 77% Brand 61% 75% 75% 75% Specific models/options 59% 69% 70% 73% Innovation & tech 47% 75% 57% 73% Green/environment 39% 66% 40% 68% Stereo equipment 41% 53% 50% 62% Location of dealer 44% 56% 42% 60% GPS/navigation 31% 53% 39% 58% Hybrid technology 26% 62% 32% 63% Hands-free mobile tech 30% 43% 39% 55% Voice command tech 19% 41% Av. number of factors considered important % 43%...Whereas in the US and the UK, auto-buyers focus on fewer factors

14 INFLUENCERS AND MINDSETS ALONG THE JOURNEY 03 Evaluating Worldview How consumers navigate the journey Consumers in the Worldview phase make four key decisions: 1. They confirm that they are going to buy a new car. 2. They determine what they want from a new car. 3. They decide how they re going to make their decision. 4. They establish a base consideration set of brands and models. This early stage is critical for automobile marketers. For consumers, anticipation is the dominant emotion here, although it s often tinged with some regret at the passing of their current car and, in some markets, anxiety about how to make the best possible choice. In the UK, deciding between a new or used car is a common and often complex decision. And even once committed to a new car, some consumers don t know exactly what they want from it. Different emotional and functional needstates are fulfilled through car comparison and review sites, with close family members such as partners and parents also providing input. The influencers are slightly more diffuse than in other markets, however. In the US, clarity and confidence are at their lowest in the Worldview phase; they both index at 80, which is below average. Clarity and confidence will eventually grow to 113 and 120 respectively at the moment before purchase. But compared to the UK and other markets, US consumers typically require only a quick assessment of what else might be out there, particularly if they are seeking out a new category of car that s less familiar to them. US auto-buyers are predominantly looking for enrichment, confidence and investigation. Brazilian consumers approach the Evaluating stage quite differently as there is mistrust of media sources and less knowledge of the auto market in general, mostly due to a lack of strong brand legacy. As a result, many Brazilian consumers cycle through a vortex of doubt as they turn to many different sources to try to make up their minds. Partners inspire confidence here, while cars on the street and seen at work provide aspirational guidance. For an Indian consumer, family acceptance of the proposed purchase is key, so the Worldview phase is focused on convincing friends and family what type of car should be pursued. First, a consumer must identify the purchase that seems to fulfill their needs; then use the same logic to persuade the family and get buy-in before moving forward. Indian consumers are already turning to media sources here to provide evidence.

15 INFLUENCERS AND MINDSETS ALONG THE JOURNEY 03 Evaluating Aspirational Needs and opportunities How consumers navigate the journey Functional Dad Partner Car comparison sites Car review sites Autos Car comparison sites Opinions Car review sites Car review sites Opinions Emotional Projection Served via partner and to a lesser extent, friends and travel Portable lifestyle-related autos content: most fuel efficient small hatchbacks Video: help auto-buyers experience the car, engaging them with sight, sound and motion Discovery and Enrichment Served via print and web autos content, particularly consumer opinions Video from experts to build confidence that consumer opinions alone cannot provide Early fit and experience comparison: more general, softer version of an Eliminate opportunity Informational Projection Served via partner, and to a lesser extent, Mom, search (deals), and travel Portable autos content: most fuel efficient small sedans, safe family cars, etc. distributed across network, including lifestyle Video: help auto-buyers experience the car, engaging them with sight, sound and motion Enrichment Currently served via autos and dealer sites, and to a lesser extent, friends and some TV Expert opinions (text or video): bridges enrichment and boosts confidence Early fit and experience comparison: more general, softer version of an Eliminate opportunity

16 INFLUENCERS AND MINDSETS ALONG THE JOURNEY 03 Evaluating Needs and opportunities How consumers navigate the journey Discovery & Projection Discovery not served Projection served traveling to work Portable autos content: most fuel efficient small sedans, safe family cars, etc. distributed across network, including lifestyle Video: help auto-buyers experience the car, engaging them with sight, sound and motion Enrichment Served via autos and dealer sites, friends and to a lesser extent, TV Expert opinions (text or video): bridges enrichment and boosts confidence Early fit and experience comparison: general, softer version of an Eliminate opportunity Discovery & Projection Discovery not served Projection not served Portable autos content: most fuel efficient small sedans, safe family cars, etc. distributed across network, including lifestyle and family needs Video: help auto-buyers experience the car, engaging them with sight, sound and motion Enrichment Served via autos and dealer sites Expert opinions (text or video): bridges enrichment and boosts confidence Early fit and experience comparison: general, softer version of an Eliminate opportunity

17 influencers and mindsets along the journey 04 shopping: the terrain As consumers move into the active Shopping stage, they travel through three distinct phases: The Terrain, The Car & The Deal. The Terrain: Eliminate The Terrain consists of two steps: a deeper analysis that starts with elimination of any car that doesn t fit, which is followed by a rigorous comparison of those that make it through. In the UK, eliminate and compare behaviors exist, but they are often combined, and happen in a more haphazard way. We call this The Fog of Consideration. No single source of influence stands out here, but car review and comparison sites, manufacturer sites and dealer sites help often found through search engines. There is great potential in the UK for consumers to switch back to their earlier Worldview. In the US, this step is where an assessment of fit is made an emotionally-led route where consumers discard the cars that really won t work for them. This is a fairly clean, straightforward process. For Brazilians, this step tends to happen in combination with comparison behavior, making it a painful part of the consumer journey, and sometimes causing a vortex of doubt that can reset the consumer s Worldview, and set them back an entire stage. Indian consumers, however, often rely on family to help them eliminate options; this trust in the opinions of others helps them move through this phase relatively smoothly.

18 influencers and mindsets along the journey 04 shopping: the terrain The Terrain: Eliminate Needs and opportunities How consumers navigate the journey Projection & Comprehension Served via partner and work Virtual test drives, video and 360 degree views: Must be prominently positioned to encourage and facilitate Eliminate behavior before Compare begins Enrichment Served via cars in street, travel, print and review sites General fit and experience comparison: incorporating factors of lifestyle, life stage perhaps with game elements Comparison that gets local: prominently connect fit and experience elements to local dealers, influencing later stages Again, a key benefit to consumers is in disentangling Eliminate and Compare, making their path smoother Projection Served via partner, as well as some travel, work Virtual test drives and 360 degree views makes eliminating options by how well they fit, relatively hasslefree and accelerates this stage of the Journey Video Cross-category opportunities, especially in Travel content Enrichment Served via autos sites, primarily comparison General fit and experience comparison: incorporating factors of lifestyle, life stage perhaps using game elements Localized comparison: prominently connect fit and experience elements to local dealers, influencing later stages

19 influencers and mindsets along the journey 04 shopping: the terrain The Terrain: Eliminate Needs and opportunities How consumers navigate the journey Projection Served via travel Virtual test drives and 360 degree views makes eliminating options by how well they fit relatively hassle-free and accelerates this stage of the Journey Video Cross-category opportunities, especially in Travel content Enrichment Served via autos sites, primarily comparison General fit and experience comparison: incorporating factors of lifestyle, life stage perhaps using gaming elements Localized comparison: prominently connect fit and experience elements to local dealers, helping influence hunt and deal, and making the path smoother Projection Not served Virtual test drives and 360 degree views makes eliminating options by how well they fit, relatively hassle-free and accelerates this stage of the Journey Video Cross-category opportunities, especially in Travel content Enrichment Served via autos sites, primarily comparison General fit and experience comparison: incorporating factors of lifestyle, life stage perhaps using gaming elements Localized comparison: prominently connect fit and experience elements to local dealers, helping influence hunt and deal, and making the path smoother

20 influencers and mindsets along the journey 04 shopping: the terrain The Terrain: Compare In the Compare step, the real work begins: comparing the options. This is a compareand-contrast task based on more detailed auto specs, consumer and expert reviews, the experience of seeing the vehicle in person, and for a few a test drive. But confidence dips slightly as a result of diving deep into so many choices. UK consumers are still enmeshed in The Fog of Consideration at this point and risk backtracking to earlier stages if they don t start to build enrichment and confidence. As consumers start feeling more organized, however, inspiration and confidence starts to build. In the US, consumers compare detailed specs for all models in their consideration set. This is more serious, fact-based research, as we see from the influencers clustered at functional side of the ecosystem. There can be a slight dip in emotions and mindset here; as the search becomes more intense and detailed, people are searching for a right answer. Clarity and confidence is no higher here than in previous stages not until they come to a decision, at least. Consumers want a detailed understanding of the cars they are comparing, adding to their knowledge and ultimately building the confidence to make the final decision. In Brazil, there is a marked contrast with the US: influencers are still clustered on the more emotional side of the ecosystem. As with the Eliminate step, a lack of trust, knowledge and authority add to the vortex of doubt. Most consumers have no choice but to compare a larger number of options at a detailed level without first filtering them down to a manageable list. The opinions of family members guide Indian consumers through the onset of confusion, and this support continues into test drives. It s common to drive four to five cars and to do so with family. There s plenty of information to consume too, including content from car review, comparison and manufacturer sites. What car will fit me best?

21 influencers and mindsets along the journey 04 shopping: the terrain The Terrain: Compare Needs and opportunities How consumers navigate the journey Discovery Served via travel and cars in street This behavior should really be pushed earlier in the Journey. By encouraging Eliminate behavior, the confusion that new discovery causes at this stage can be removed Enrichment & Confidence Served via partner, friends and review sites Focus on communication: as people make comparisons they want to reach out to the people they know and trust Goal is reaching confidence, hence important to link their enrichment information to thoughts of family and friends Consumer reviews need triangulation or approval by inner circle Enrichment & Confidence Overlaps between the two roles Served with expert reviews, manufacturer and dealer sites pulling toward enrichment Buyer and partner opinions pull toward confidence Localized comparison: prominently connect fit and experience elements to local dealers, helping influence hunt and deal, and making the path smoother A focus on communication: as people make comparisons, they want to reach out to the people they know and trust The goal is reaching confidence: it s important to link their enrichment information to thoughts of family and friends Consumer reviews need triangulation or approval by inner circle

22 influencers and mindsets along the journey 04 shopping: the terrain The Terrain: Compare Needs and opportunities How consumers navigate the journey Projection Served via travel Virtual test drives and 360 degree views makes eliminating options by how well they fit relatively hassle-free and accelerates this stage of the Journey Video Cross-category opportunities, especially in Travel content Enrichment Served via autos sites, primarily comparison Triangulate authoritative information with customer reviews Projection Served via Dad Virtual test drives and 360 degree views makes eliminating options by how well they fit, relatively hassle-free and accelerates this stage of the Journey Video Cross-category opportunities, especially in Travel content Enrichment Not served General fit and experience comparison: incorporating factors of lifestyle, life stage perhaps using gaming elements Localized comparison: prominently connect fit and experience elements to local dealers, helping influence hunt and deal, and making the path smoother

23 influencers and mindsets along the journey 04 shopping: The car & The deal The Car & The Deal By the time they reach the midway point of the Shopping stage, auto-buyers have finally zeroed in on the one. They know the specs and options they want and how much they re willing to pay for them. For some consumers, this stage is focused on planning negotiation tactics and knowing where to give in. For others, it s about finding a specific car at exactly the right price and hunting it down remorselessly. Once consumers in the UK have finished their comparison work, they take one last look before they leap there s a pause to reflect on the purchase and plan the negotiation phase. Confidence is rising and relief starts to kick in. For US auto-buyers, confidence and clarity are at an all-time high at this point. But maintaining confidence in their decision is key. Consumers seek the final details they need to achieve full understanding of what they are getting into, as they think about how the car will fit into their daily lives. In Brazil, however, the Shopping stage is yet another where consumers don t have all the pieces they need to feel good about their decision. A Brazilian auto-buyer can become focused on one particular make and model, but if it doesn t feel right, he s pushed back several stages, to the messy process again. But if a consumer successfully settles into this phase, confidence starts to build, with commitment (at least partially) to a car. Six out of ten consumers in Brazil will revert to earlier stage behavior here. With test drives complete, consumers in India need confirmation from their families that their intended decision is the right one. Again, it s a matter of keeping up the confidence in their preferred car, while seeking to get a better sense of it and understanding all the options. As in Brazil, six out of ten Indian consumers will revert to the Compare and Eliminate steps here.

24 influencers and mindsets along the journey 04 shopping: The car & The deal Needs and opportunities How consumers navigate the journey Projection Served via partner Lending Tree for cars/sharing data with dealers to reach out with deals Link between MSN Autos and MSN Money content Location-based links to dealers, combined with easy lifestyle data-sharing Price comparisons and deal location via smartphone barcode scan Confidence Not served Local reviews of dealers to build confidence going into deal Maintain confidence in the car throughout deal and delivery via communication of features and driver testimony Projection & Comprehension Not served Lending Tree for cars/sharing data with dealers so they can reach out with deals: exists but is not well known Interesting partnership opportunities and great link between MSN Autos and MSN Money content Location-based links to dealers, combined with easy data sharing (less personal data, more needs/lifestyle/fit data) Price comparison and deal location via smartphone barcode scan

25 influencers and mindsets along the journey 04 shopping: The car & The deal Needs and opportunities How consumers navigate the journey Projection & Comprehension Served only by car review sites Authoritative content from car experts would better serve the comprehension need-state Projection & Comprehension Not served Lending Tree for cars/sharing data with dealers so they can reach out with deals: exists but is not well known Interesting partnership opportunities and great link between Autos and Money content Location-based links to dealers, combined with easy data sharing (less personal data, more needs/lifestyle/fit data) Price comparisons and deal location via smartphone barcode scan

26 influencers and mindsets along the journey 04 shopping: The car & The deal DealERS Most consumers go to the dealer with the intention of buying a specific car, armed with all the facts they need to get to the best price possible and then get out as fast as they can. They typically begin relying on mobile technology to locate dealerships and get on-thefly information. Once there, consumers may be lucky enough to have a favored and friendly dealer; otherwise the dealership experience is somewhere between a game and a battle. When it comes to the actual purchase, consumers tend to buy from dealers they like. Our research showed that 49% of purchasers globally liked the dealer they bought from a lot. Consumers who are less confident generally are less positive about dealers overall. On a scale of 1-5 with 5 as liked a lot, how did you like the dealer you bought from compared to other dealers? Dealer Bought From Other Dealers My smartphone is my rock, my life. It s portable and discreet. Female, US

27 influencers and mindsets along the journey 05 experiencing Ownership At an average of just over five months into the journey globally, consumers have their vehicle. Now, the focus is on the car: how it performs and how others react to it. Consumers personalize cars just as they would a new mobile phone. There s a period of discovery, where people explore unexpected features. Typically, the honeymoon period isn t long-lasting, though. The amount of ongoing dealer contact and warranty activity required by consumers helps validate their decision or fill them with regret. In the UK, new owners try to work out how to make the most of their purchase, and this often results in quick checks against review sites to make sure they got the best deal on the ideal car. They ll also seek the opinion and judge the reaction of their partner. From filtering through unhelpful information to securing the financing, navigating the journey for Brazilians is not easy. At this point, consumers tend to feel relief that the process is over. Most can t help making a few checks though, just to be sure they made the right choice. They are still seeking to understand the car better, but this time, they only have one vehicle to research and explore. Car-buyers in India tend to expect an easy postpurchase relationship with the dealer, but this phase is primarily about the family reconfirming the choice and fully experiencing the new car. Consumers will subsequently get comfortable with the technical elements and show off their new purchase on their social networks. US auto-buyers tend to swing back over to the emotion side of the ecosystem. Clear, confident, relieved and proud of their decision, they tend to trust the way they made the decision and the end result. They might even love their new purchase so much that they give their new car a name.

28 influencers and mindsets along the journey 05 experiencing Needs and opportunities How consumers navigate the journey Projection Not served Later ownership stage to be served through portable autos content and video as covered in Worldview stage Comprehension Facilitate contact between manufacturer and consumer Encourage driver testimony to validate choices and inspire usage of newly purchased car Confidence Not served Validation & Advocacy Encourage greater linkage between validation and advocacy Reviews easily linked or copublished on social networks More sharing of decision process (e.g. Pinterest for cars ) Projection Served only via partner Later ownership stage to be served through portable autos content and video Comprehension Not served Facilitate contact between manufacturer and consumer Validation Encourage greater linkage between validation and advocacy Enable reviews on MSN Autos to be easily linked or copublished on social networks Allow for greater sharing of decision process (e.g. Pinterest for cars )

29 influencers and mindsets along the journey 05 experiencing Needs and opportunities How consumers navigate the journey Projection Served via dealer sites Show how the new purchase fits into his/her life via customized mobile content Validation (& Advocacy) Encourage greater linkage between popular validation and less common advocacy Enable reviews on MSN Autos to be easily linked or copublished on social networks Allow for greater sharing of decision process (e.g. Pinterest for cars ) Projection Only served via partner Later ownership stage to be served through portable autos content and video Comprehension Not served Facilitate contact between manufacturer and consumer Validation (& Advocacy) Encourage greater linkage between popular validation and less common advocacy Enable reviews to be easily linked or co-published on social networks Allow for greater sharing of decision process (e.g. Pinterest for cars )

30 Reach and engage consumers at every step HOW MICROSOFT advertising CAN HELP At Microsoft, we re developing new ways to bring marketers and consumers closer together along the path to purchase. Here s just one example: The study The Consumer Journey: Auto- Buyers demonstrates that marketers no longer have a captive audience reached through a select few points of influence. As a result, it s difficult to know and understand where you should invest marketing dollars along the path to purchase for optimal impact. Both consumers and marketers find themselves in a challenging new environment, where too many choices and complexity can often obfuscate the right solution or purchase decision at any given time. But knowing how to harness digital channels can help start to close that divide, reaching and inspiring consumers at the right place and time, clarifying their choices and enabling easier decision-making. OPEN TO POSSIBILITY While consumer brand associations run deep in the US and UK, they re more open in emerging markets. Xbox LIVE drives high brand lift when consumers are paying attention in a lean-forward gaming environment. Ad effectiveness research on more than 20 campaigns shows double-digit lifts across key brand metrics (Microsoft Internal, 2012). And in fact, in the Consumer Journey: Auto-Buyers study, 30% of consumers in the US and UK said they would be interested in experiencing a test drive through a gaming environment. DECISION TO CHANGE Motivation Consumers are usually motivated to make a change because of personal circumstances. But some consumers admit they simply buy a new car because they want one. Microsoft enables consumers to investigate something that catches their eye, without doing any hard work, via Kinect s integration with Bing. EVALUATING Worldview In the Evaluating stage, the Worldview phase provides consumers with a route into their early research using lifestyle content. MSN Autos in the US with 5.5 million unique users provides top ten lists and other helpful ways to start researching in a way that helps establish early fit.

31 Reach and engage consumers at every step HOW MICROSOFT advertising CAN HELP SHOPPING The Terrain As consumers begin the heavy job of eliminating and comparing options, MSN Autos provides a single location for reviews, professional ratings and compelling video, bringing to life a consumer s consideration set. EXPERIENCING Ownership Windows 8 apps on Microsoft s new Surface tablet are an ideal way for consumers to continue interaction with the car manufacturer throughout the ownership process. Now, the brand becomes an information source and helps drive validation. The Car The easy integration of MSN Autos and MSN Money makes it easy for consumers to feel confident before entering negotiations with the dealerships. The Deal Local dealership listings on the MSN Autos mobile app enable consumers to leave a dealership they don t like, and easily find one nearby that they do.

32 About Microsoft Advertising Global Insights & Analytics Natasha Hritzuk Senior Director of Global Insights New York, NY Kelly Jones Head of Marketing Insights New York, NY While many tech and media companies conduct market research that describes what consumers are doing, the Microsoft Advertising Global Insights & Analytics team believes innovation stems from getting at the why. As a result, we go beyond behavior to focus on why consumers do what they do whether that s choosing one brand over another, or exhibiting a preference for a specific platform. Our goal is to create more robust, insightsdriven narratives that put a human face on our audience, making it easier for customers to tell creative, relevant and connected stories across platforms Microsoft Corporation. All rights reserved. This document is provided as-is. Information and views expressed in this document, including URL and other Internet Web site references, may change without notice. You bear the risk of using it. Some examples are for illustration only and are fictitious. No real association is intended or inferred. This document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal, reference purposes.