Chinese car buyers look to internet as credible source

National - Family and friends, the Internet and auto shows are more effective marketing channels than traditional advertisements in newspapers, car magazines, TV/radio, billboards or sports sponsorship in China, according to a KPMG and TNS survey into consumer perceptions of car brands and purchasing motivation.

 "Our survey raises the question of whether car manufacturers, both domestic and foreign, are spending their money in the best way. If they develop a strong online presence and deliver a rich stream of online news into the marketplace through chat rooms, blogs, press releases and trade reviews, then they are doing the right thing," Klaus Paur, automotive director for TNS China said.

"Our research also shows that car manufacturers investing in international, regional and local auto shows are also putting their money where it counts. China has grown at a breathtaking pace over recent years and has now overtaken Japan to become the world's second-largest auto market after the United States. Today, China represents the single largest sales opportunity for all car manufacturers worldwide."

Over 40 percent of car buyers ranked family and friends as the most credible source of information when making a car purchase, with over 30 percent ranked the Internet as a quality source of information prior to a purchase and 25 percent perceived the Internet as credible when deciding which car to buy. Auto shows also yield a strong influence on buyers scoring close to 30 percent in terms of both credibility and quality in evaluating car brands and models.

Only five percent look to marketing channels such as sports sponsorship, billboards, radio or TV commercials and dealer promotional activity with less than 15 percent cite China's car dealers as credible or informative factors in buying a car.

The survey revealed China's car buyers rely heavily on Internet content as a source of purchasing information, with more than 40 percent ranking the Internet as "extremely important" or "very important" in making a decision. The internet is used extensively for pre-purchase information, to actively browse auto websites, read up on news about brands and compare prices or join web-based discussions.

Other key findings include Chinese car buyers make careful purchase decisions, considering up to three brands and likely to visit each dealership for the brand before buying and owners of Chinese car brands are less loyal than owners of overseas brands as well as dealers of Chinese auto brands have a higher probability of losing their customers compared to those of foreign brands.