Wednesday, October 10, 2007

Auto Dealership Loyalty

A brief press release of a survey of UK motorists indicated a dramatic decline in customers' loyalty to their dealerships between 2005 and 2007. The survey was performed by Capgeminis Cars Online 07/08 study that included 2800 consumers. The loyalty plunged from 46 percent to 32 percent. It appears the decline is primarily the result of increasing demands from customers on dealers. However, the UK motorists do not appear to be buying their cars online as much as other Europeans. Only 15% of UK motorists indicated they were likely to buy a car on line compared with the European average of 18%.

These numbers suggest that relationship loyalty does not appear to have a large role in automobile purchasing in the UK. It may also indicate greater price elasticity for car purchases there. It will be interesting to see how this trend will compare with the car purchases in the US where loyalty to dealerships has been near the same levels as those in England.

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