November 14, 2006 10:00 AM Author: Chips
16% of Proton owners interviewed will buy another Proton but 28% of first-time buyers think of Proton first
Ratera & van Galen Sdn. Bhd, retail and shopping behaviour specialists, have provided a summary of the findings of the first 500 out of a total of 1,500 interviews of their 2006/2007 syndicated automotive study amongst new car buyers. The independent study was conducted during the months of September and October this year and the participants were only from Peninsula Malaysia.
“Although Proton has the highest share of current ownership (45%), followed by Perodua (29%) when asked about their first considered next car, we see strong shifts in market shares. Perodua is holding their ground in the strong foreign competition and maintains their share at 29% but Proton is dropping to almost half their current ownership with only 23%. Strongest winners are Honda and Toyota, followed by Kia,” said the company’s director, Toon van Galen.
Of all current Proton owners only 16% will again choose a Proton; 20% will shift to a Perodua, followed by Toyota, Honda and Kia. Perodua retains a higher percentage (28%) of their current owners, but also, in turn, lose 23% to Proton, followed closely by Toyota and Honda.
First-time new car buyers show a different picture altogether: Proton is still the most considered brand at 28%, followed by Perodua (which does a better job at retaining customers) for their next car purchase.
Based on 1,800 evaluations by the 500 prospective car buyers, the hottest models are, in ranked order, the Myvi, followed at a distance by the more than twice as expensive Honda Civic and the Proton Waja.
Honda Malaysia’s advertisements were found to be the most memorable as there was the highest advertising recall with 84% of all prospective car buyers remembering at least one ad for Honda, whilst both Proton and Perodua score 81%. Rather surprisingly, Geely’s advertising was also noticed and although still on the bottom of the list, had a 13% score.
“Looking at what is happening at model level, we see that current Perodua Kancil and Kelisa drivers are most likely to upgrade to a Myvi. Proton Wira owners, with the Wira currently still the second most owned car amongst prospective car buyers, are more likely to move to a Myvi or a Naza Citra or a Toyota Vios,” said Mr van Galen. “Interestingly some of the older Proton model owners like the Iswara and Saga plan to upgrade to the Waja but current Waja owners are thinking more of models like the Honda Accord.”
The low loyalty of car owners to their current brand might be partly explained by the fact that due to high taxes and cost of ownership in Malaysia, the average car owned is more than 6 years old, and the longer people own a car, the more inclined they might be to try something else when replacing it.
Current Kancil and Kelisa owners are likely to upgrade to a Myvi
The Ratera & van Galen study identified 4 most important dimensions that determine brand choice appeared to each be made of the following factors:
1. Durability & service level
2. Design, sporty image & engine performance
3. Price & maintenance cost
4. Size of car, comfort & safety
The research showed 5 core customer segments based on these factors. The biggest group of these makes up 29% of prospective car buyers and determines their brand choice most by their expectation on their future car’s durability and dealer service level.
In that light, it is interesting that the buyers were also asked to rate their dealer’s service levels for their current cars: The highest rankings on dealer service were going to some of the smaller foreign brands like Honda and Toyota. Proton and Perodua scored pretty close around 6.5 (out of 10) for overall satisfaction with the dealer service by current owners. However, this score can probably still be improved.
“As a matter of fact, our survey revealed that many Proton owners never see the dealer’s building from the inside; 65% of them use third party service centers,” Mr van Galen said.
It is also interesting to see how important the factor of economy is - affordable price, economical engine and low maintenance cost. It is the single most important factor across all buyers. 21% of car buyers say this is almost their only determining factor when choosing a new car. Of course, this is fully understandable because 87% on those interviewed financed their current car with a loan from the bank and for their new car, even more buyers will go to the bank (93%).
The most popular source for information on new car purchase is the website of the favourite brand, followed by the actual showroom.
The study was performed using an innovative approach to automotive research, with a combination of advanced online interviewing techniques to reach higher income white-collar car owners as well as traditional house to house interviews.
For more information or to purchase the full report, contact Ratera & van Galen (Alicia Law) at 03-23008630.
http://www.motortrader.com.my/NUS/ar...695/page_m.asp
Inside the minds of Malaysian car buyers
