Current regulatory and technological change factors force the development of an integrative multi channel approach over the whole car purchasing process to increase customer value and profit. Since the decade of multi channel services, the understanding and analysing of consumers behaviour gains more and more part in literature. Although if the adoption of new channels and particular channel usage is researched, further need of understanding why consumers use some channels rather than others, although purchasing the same products, is identified. Especially the automotive market is mainly focussed on product and manufacturer branding topics rather than distribution and service development.
Using the example of the automotive industry this paper explores factors of influence on channel choice. Based on current literature and exemplified by a quantitative explorative study the present paper focuses mainly on the question asking after the main determinants on consumers channel choice during car purchasing and their nature of influence on it. A conceptual framework is developed, which argues that channel decision making in the automotive market is based on product, consumer, channel and organisational dimensions of determinants. Product and consumer characteristics are basic considerations influence the evaluated importance of channel related factors like experience, convenience, risk, price, entertainment and service. Finally the organisation itself with their reputation and offered range of products and services has to taken into account. The preliminary model could be viewed as a starting point structuring the understanding of the complex area of channel choice in a particular context like the automotive market.
Table of Contents
1 INTRODUCTION
1.1 CURRENT SITUATION AND PROBLEMATIC
1.2 AIM AND PROCEDURE OF THE STUDY
2 MULTI CHANNEL RETAILING IN THE AUTOMOTIVE INDUSTRY
2.1 DESIGN OF A MULTI CHANNEL SYSTEM
2.1.1 Distribution structure in the automotive industry
2.1.2 Vertical marketing system
2.1.3 Multi channel system
2.2. RETAILING FORMATS
2.2.1 Direct retailing by the manufacturer
2.2.2 Indirect retailing by dealers
2.2.3 Indirect retailing by agents/ intermediaries/ leasing companies
2.3. ECOMMERCE
2.3.1 Online direct retailing
2.3.2 Online dealer
2.3.3 eBroker
2.4. POTENTIALS FOR THE AUTOMOTIVE DISTRIBUTION FROM TECHNOLOGICAL AND LEGAL CHANGES
3 CONSUMER CHANNEL CHOICE IN CAR PURCHASING
3.1. CONSUMER DECISION MAKING
3.1.1 Decision making process
3.1.2 High involvement decision
3.1.3 Trends in consumer behaviour
3.2. DETERMINANTS ON CHANNEL CHOICE
3.2.1 Product related determinants
3.2.2 Consumer related determinants
3.2.3 Channel related determinants
3.2.4 Organisation related determinants
3.3 SUMMARY
4 PRIMARY RESEARCH APPROACH
4.1 INTRODUCTION
4.1.1 Target population
4.1.2 Aim
4.1.3 Objectives, research questions and hypotheses
4.2 METHODOLOGY
4.2.1 Research design and data collection method
4.2.2 Sampling plan
4.3 LIMITATIONS
4.3.1 Validity
4.3.2 Reliability & generalability
4.4 RESULTS FROM PRIMARY RESEARCH
4.4.1 Pre-work
4.4.2 Analysis of the results
5 DISCUSSION AND IMPLICATIONS
5.1 Discussion of findings
5.2 Implications for a multi channel automotive distribution
5.3 Conclusions and further research
Objectives and Research Themes
The primary objective of this dissertation is to identify and analyze the key factors influencing consumer channel choice behavior during the car purchasing process, particularly within the UK automotive market. The study seeks to understand the nature of these influences and how they interact to help suppliers develop more effective, value-adding multi-channel distribution strategies.
- The impact of technological and legal changes on automotive distribution structures.
- Consumer decision-making processes for high-involvement products like automobiles.
- Determinants of channel choice categorized into product, consumer, channel, and organization-related dimensions.
- An explorative quantitative analysis of the 25-34 age segment in Edinburgh.
- Development of a preliminary model for channel selection in the automotive industry.
Excerpt from the Book
1.1 Current situation and problematic
For decades the automotive distribution system has been dominated by indirect distribution formats. Cars are sold and serviced by the same, independently owned, franchised dealer (Jullens & Smend 2003). But at present the European automotive distribution structure shows an enormous change. This is mainly based in the development of the internet as sales and communication channel and the impact on consumer’s behaviour as well as a more open market and higher level of competition by changes in the industry block exemption rules (BER) 1400/ 2002.
In 2002 the EU Commission opened up the market “to increase competition and bring tangible benefits to European consumers” (EU Commission 2002). Regarding Fritz & Graf (2007), Jullens & Smend (2003), London Economics (2006) and Wagner et al. (2002) the main legal changes are: Manufacturers have to choose between a selective and an exclusive distribution system. Mainly all manufacturers have a selective one, which allows determining qualitative and quantitative selection criteria to limit the number of dealers in the market and to ensure that each dealer meets certain qualitative standards.
Summary of Chapters
1 INTRODUCTION: This chapter introduces the shift in the automotive distribution landscape, sets the research aims, and outlines the methodological procedure.
2 MULTI CHANNEL RETAILING IN THE AUTOMOTIVE INDUSTRY: Provides a theoretical analysis of current distribution systems, retailing formats, and the influence of e-commerce on the automotive sector.
3 CONSUMER CHANNEL CHOICE IN CAR PURCHASING: Explores the consumer decision-making process for high-involvement products and establishes a framework of determinants affecting channel choice.
4 PRIMARY RESEARCH APPROACH: Details the methodology for the quantitative explorative study conducted on the 25-34 age group in Edinburgh and presents the primary findings.
5 DISCUSSION AND IMPLICATIONS: Discusses the findings, proposes a preliminary model for channel selection, and suggests strategic implications for automotive distribution.
Keywords
Multi Channel Retailing, Automotive Industry, Consumer Channel Choice, Car Purchasing, Distribution Policy, Digital Transformation, Consumer Behavior, High Involvement Decision, Dealerships, eBroker, Marketing Strategy, Customer Value, Quantitative Research, Edinburgh, Market Segmentation.
Frequently Asked Questions
What is the core focus of this research?
This work examines the determinants of consumer channel choice when purchasing new cars, specifically analyzing how various factors influence the preference for traditional dealerships, manufacturer websites, or independent eBrokers.
What are the primary themes addressed in this paper?
The research addresses the changing automotive distribution environment, consumer decision-making in high-involvement purchases, and the impact of product, consumer, channel, and organizational determinants on channel selection.
What is the ultimate goal of the research?
The goal is to determine the main factors influencing channel choice to provide suppliers with insights on how to improve their distribution strategies, increase customer value, and enhance profitability in a multi-channel environment.
Which methodology was chosen for this study?
The study utilizes a quantitative, explorative approach, conducting structured interviews with a target population of 100 individuals aged 25-34 in Edinburgh to capture their purchasing preferences and attitudes.
What topics are covered in the main body?
The main body covers the automotive distribution structure, different retailing formats, e-commerce, consumer decision-making theories, a detailed analysis of influence factors (determinants), and the primary research findings.
Which keywords define this dissertation?
Key terms include Multi-channel retailing, Automotive distribution, Consumer behavior, Car purchasing, Channel choice determinants, and Market segmentation.
How do product-related factors influence the choice of a distribution channel?
The research suggests that the technical complexity and high involvement nature of cars make them difficult to purchase exclusively online; consumers often prefer traditional channels for their perceived lower risk and the ability to test and touch the product.
Does this research show significant differences between gender and channel choice?
The study found that while gender did not lead to major differences in past choice or future likeliness, women tend to place a higher emphasis on low perceived risk and personal contact during the decision-making process.
What role does the 'eBroker' play in the automotive market according to the study?
eBrokers serve as an alternative channel, particularly gaining interest among price-sensitive consumers, though the traditional dealership remains the primary choice due to established trust and service infrastructure.
What is the significance of the developed preliminary model?
The model acts as a starting point for understanding the complex interaction between technological, legal, and consumer-driven factors that influence how a customer eventually selects their car purchasing channel.
- Citation du texte
- Lena Fitzen (Auteur), 2007, Multi Channel Retailing in the Automotive Industry, Munich, GRIN Verlag, https://www.grin.com/document/129428
