GM fails to click with Internet shoppers
05-22-2005, 03:45 PM
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GM fails to click with Internet shoppers
GM fails to click with Internet shoppers
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GM fails to click with Internet shoppers
By Jason Stein
Automotive News / May 16, 2005
Clicking with customers
Here are the top-10 researched vehicles at Edmunds.com in April.
1. Honda Accord
2. Acura TL
3. Honda Civic
4. BMW 3 series
5. Toyota Camry
6. Honda Odyssey
7. Toyota Tacoma
8. Mazda Mazda3
9. Ford Mustang
10. Honda CR-V
Source: Edmunds.com
DETROIT -- General Motors has said that one of the reasons it cut prices on 22 of its mid-sized SUVs in February was because Internet shoppers weren't giving the automaker a fair shake.
Overall, GM is moving to a more value-based pricing strategy that will result in sticker prices closer to transaction prices. That may equate to more interest from Internet shoppers.
If data from one influential Web site is any indication, GM could use the help.
According to Edmunds.com, an automotive research firm whose Web site allows consumers to compare vehicle attributes and prices, site visitors are tuning into Japanese automakers and tuning out GM.
Edmunds reports that only one GM vehicle has appeared in the top 50 most-researched vehicles each month since last November. Mostly, that vehicle has been the Chevrolet Equinox. In April it was the Pontiac Solstice, which was the 43rd most-researched vehicle on Edmunds' list.
By comparison, in April, Toyota Motor Corp. (Toyota-Lexus-Scion) placed 13 vehicles in the top 50 and four in the top 12. Honda Motor Co. (Honda-Acura) placed nine vehicles on the list in April and occupied five of the top-10 spots, including No. 1, which was held by the Accord. Ford Division placed four on the list. The Chrysler group had three.
Market demographics
Edmunds reports its site demographics as:
73 percent of visitors are between 25 and 54 years old.
70 percent of visitors are male.
89 percent of visitors earn more than $50,000 per year, with an average household income of $80,000.
90 percent of visitors that research a vehicle intend to purchase a new or used vehicle within 90 days.
"This is a coveted car-buying group that tends to be influencers in their peer groups," says Jeremy Anwyl, president of Edmunds.com.
The price is wrong
But Paul Ballew, GM's executive director of market and industry analysis, says when GM analyzes Internet traffic, there are many factors to consider. Ballew says not every Web site accurately shows the cost of ownership.
GM has set sticker prices high, then has offered high incentives. Ballew says that on some sites, consumers may see only the high sticker.
"There's a challenge for us in terms of Web sites and accurate portrayal of pricing because you have different manufacturers engaging in different pricing strategy, and we know that," he says.
Edmunds says it offers a realistic cost of ownership. "Our cost of ownership is based on transaction prices, not sticker," Anwyl says.
If GM, or other automakers, aren't connecting with Edmunds' audience, Anwyl says they are missing an opportunity.
"From a GM perspective, I would look at (the rankings) as an opportunity that shows the Internet is a target-rich environment and a chance to do some conquesting," Anwyl says. "What an opportunity to look for some sales."
--------------------------------------------------------------------------------
GM fails to click with Internet shoppers
By Jason Stein
Automotive News / May 16, 2005
Clicking with customers
Here are the top-10 researched vehicles at Edmunds.com in April.
1. Honda Accord
2. Acura TL
3. Honda Civic
4. BMW 3 series
5. Toyota Camry
6. Honda Odyssey
7. Toyota Tacoma
8. Mazda Mazda3
9. Ford Mustang
10. Honda CR-V
Source: Edmunds.com
DETROIT -- General Motors has said that one of the reasons it cut prices on 22 of its mid-sized SUVs in February was because Internet shoppers weren't giving the automaker a fair shake.
Overall, GM is moving to a more value-based pricing strategy that will result in sticker prices closer to transaction prices. That may equate to more interest from Internet shoppers.
If data from one influential Web site is any indication, GM could use the help.
According to Edmunds.com, an automotive research firm whose Web site allows consumers to compare vehicle attributes and prices, site visitors are tuning into Japanese automakers and tuning out GM.
Edmunds reports that only one GM vehicle has appeared in the top 50 most-researched vehicles each month since last November. Mostly, that vehicle has been the Chevrolet Equinox. In April it was the Pontiac Solstice, which was the 43rd most-researched vehicle on Edmunds' list.
By comparison, in April, Toyota Motor Corp. (Toyota-Lexus-Scion) placed 13 vehicles in the top 50 and four in the top 12. Honda Motor Co. (Honda-Acura) placed nine vehicles on the list in April and occupied five of the top-10 spots, including No. 1, which was held by the Accord. Ford Division placed four on the list. The Chrysler group had three.
Market demographics
Edmunds reports its site demographics as:
73 percent of visitors are between 25 and 54 years old.
70 percent of visitors are male.
89 percent of visitors earn more than $50,000 per year, with an average household income of $80,000.
90 percent of visitors that research a vehicle intend to purchase a new or used vehicle within 90 days.
"This is a coveted car-buying group that tends to be influencers in their peer groups," says Jeremy Anwyl, president of Edmunds.com.
The price is wrong
But Paul Ballew, GM's executive director of market and industry analysis, says when GM analyzes Internet traffic, there are many factors to consider. Ballew says not every Web site accurately shows the cost of ownership.
GM has set sticker prices high, then has offered high incentives. Ballew says that on some sites, consumers may see only the high sticker.
"There's a challenge for us in terms of Web sites and accurate portrayal of pricing because you have different manufacturers engaging in different pricing strategy, and we know that," he says.
Edmunds says it offers a realistic cost of ownership. "Our cost of ownership is based on transaction prices, not sticker," Anwyl says.
If GM, or other automakers, aren't connecting with Edmunds' audience, Anwyl says they are missing an opportunity.
"From a GM perspective, I would look at (the rankings) as an opportunity that shows the Internet is a target-rich environment and a chance to do some conquesting," Anwyl says. "What an opportunity to look for some sales."
05-22-2005, 09:34 PM
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Join Date: Jan 2001
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This shouldn't be news to them. If GM had cars people really wanted to buy, maybe people would research them more.
There goes the marketing team again...instead of trying to play with "marketing" and "pricing strategies" to get people interested in their cars, JUST MAKE THE CARS MORE DESIRABLE!!!
Overall, GM is moving to a more value-based pricing strategy that will result in sticker prices closer to transaction prices. That may equate to more interest from Internet shoppers.
Last edited by mrdeeno; 05-22-2005 at 09:37 PM.
05-23-2005, 12:26 AM
#3
The sizzle in the Steak
more news about GM
05-23-2005, 09:46 AM
#6
Senior Moderator
Originally Posted by mrdeeno
Maybe the title of this thread should be:
"GM Fails to click with MOST shoppers PERIOD!!!"
"GM Fails to click with MOST shoppers PERIOD!!!"
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