The Role of Social Media Recommendations in the Online-Supported Purchase-Decision Process

Dave Howlett, Senior Director, Consumer Insights and Strategy,

J.D. Power and Associates

&

Jerry Orban, Vice President of Business Development,

VerticalScope Inc. / AutoGuide.com

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

What does your buying journey look like?

And what sources do you consult?

The New Informed Purchase Decision

The Shopping Experience
Yesterday Today

The New Model

Automotive Social Media User Survey Objective

Provide insights into the role of social media among automotive forum purchase intenders

ZMOT Purchase Intenders:

Plan to purchase in next 6 months

U.S. Internet Automotive Landscape Automotives reach is significant

Total Manufacturer Web Sites

US Internet Audience

216,006

100%
(UV 000s)

22,625

10.5%
Total Auto Resource

71,184

33.0%
Source: comScore US Market August 2011

Automotive Resource Web Sites Forum communities reach 1 in 4 resource visitors

US Automotive Internet Audience

71,814

Automotive Forum Communities

100%
(UV 000s)

17,891

25.1%

Source: comScore US Market August 2011

AutoGuide.com User Survey

Methodology
17 questions on purchase behavior and social media use n=1907 respondents 99% completion rate conducted September 29 October 7

Intenders Group Profile How likely are you to purchase a new vehicle in the next 6 months?
N = 517 of 1907 respondents (27%)

10

Intenders Social Engagement Which statement best describes the type of interaction you have when you visit various automotive Web sites?
I like to share my views and opinions about automotive topics and products I ask for opinions and recommendations but don't express my own thoughts very often I just prefer to read what others have to say and not get involved.

62% 27% 11%

11

Intenders Top Social Shopping Activities Which of the following online social shopping activities do you engage in?
Visiting forums and reading posts Reading blogs where products are discussed Posting on forums/engaging in dialog Liking a company or vehicle on Facebook Posting on blogs and engaging in dialog Getting an online referral from a friend Following a company or vehicle on Twitter

97% 63% 79% 35% 32% 25% 13%

Passive Active

12

Intenders Visitation Frequency On average, how frequently have you visited the following in the last 6 months?
4% 13% 6% 18% 81% 54% 31%
Forums Facebook YouTube

17% 15% 45% 22% 26% 29% 12%

Expert reviews (Portals) Manufacturer sites

Daily

36%

Weekly Monthly

9% 7% 8%
Twitter

13

Intenders Source Reliability How likely are you to rely on each of the following when shopping for a vehicle?
27% 30% 47% 29% 26%
Forums Definitely

30%
Very

23% 15% 7%
YouTube

46% 34% 18%

Expert reviews (Portals) Somewhat

15% 7%
Facebook

16%
Manufacturer sites

14% 9% 2%
Twitter

14

Intenders Importance to Purchase Decision How important do you think each of the following would be in your personal automotive purchase decisions?
26%
Definitely

20% 44% 24% 28%

Forums

35%
Very

28% 11% 6%
YouTube

31%

35% 11%

Somewhat

13% 7%
Facebook

21%
Expert reviews (Portals)

19%
Manufacturer sites

7% 2%
Twitter

15

Intenders Visitation, Reliability, Importance Comparison of highest visitation, reliability and importance ratings
28% 26% 6% 7% 81% 54% 41% 29%
Forums Facebook YouTube Expert reviews (Portals) Daily Use

7% 19% 7% 18% 22% 16% 12%

Manufacturer sites

Most Reliable Most Important

2% 8% 2%
Twitter

16

Social Media Sources where Purchase Intent is expressed

Others
News: 2% Professional Reviews: 2% Comments: 1% Consumer Reviews: <1%

n=92,069 Sept. 10 Sept. 11

17

Different sourcesdifferent contentdifferent use cases

Forum Post
We are in the market for a new car, a more spacious vehicle like the Ford Explorer Crossover. Re: We had a Ford Explorer which had been nickle and diming us for quite some time...we spend thousands on new bearings because "they just wear out sometimes", among other things. So we decided it was time for a new car. Our requirements: 1. it had to seat 8 people so we could take a whole other family with us if we were driving somewhere (we have 4 people, so apparently the only families we can be friends with have to have 4 people too ).

Tweet
I have decided that my new car is either going to be a Honda CRV or a BMW X3/5 - Would appreciate your thoughts either way?

Facebook Post
I need advice...went car shopping....its between a silver durango (1 of my fav cars) or a red ford explorer. i cant decide....if any1 has either of these..mess me and tell me pros and cons pls!

Topic Depth

Topic Breadth

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And what sources do you consult?

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