New car retail and contemporary consumer behaviour – Understanding car buyers and how to meet their expectations

Abstract

New car retail and its sustainability in terms of consumer behaviour is a topic that in particular, should interest automotive brands and authorised brand dealers. In addition, this thesis might provide valuable insights to used car dealers and retailers in general. Interest in this topic should exist among knowledgeable industry operators, as showroom floor traffic has slowed and OEM`s and dealers should question what and how they should invest in on the retail front, in order to efficiently interact with customers and maintain their significance to the market in the future. The author’s personal interest in the topic developed during a two-year period spent as a Customer Quality Intern and Customer Quality and Dealer Network Development Coordinator, at an Automotive OEM`s Nordic Head Quarters.

This thesis focuses on indicating which factors have changed in consumer behaviour and understand how these reflect on new car retail. Gives arguments for why the approach to new car retail should be reformed to maintain sustainability from a consumer behavioural perspective and presenting existing alternatives, through real life examples and case studies.

Findings in this paper illustrate that new car retailers should shift their retailing strategy towards the combination of online sales and brick-and-mortar showrooms relocated in areas of high customer flow. These findings could be relevant to sales and marketing departments of OEMs, importers and dealers who are interested in improving the customer experience and approachability of their represented brands, throughout the buying process and improving overall brand opinion and loyalty.