GM fails to click with Internet shoppers

[Globalist]

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."

[Globalist]

"....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...."

More work is needed on how to reach internet users and sell GM's recent quality improvments. One way to do it is the target the 10 best searched vehicles and do comparative ads (similar to Equinox/Lexus and Malibu/Camry.)

[327]

thats just for edmunds.com though, Not everybody goes Only to that site to look up cars they want. That doesnt make GM a internet shopping failure

[AdmiralViscen]

I almost jumped at this topic as disastrous.

Then I realized that this told us more about what sort of clientele is drawn in by the Edmund's folks, than how successful domestics are with consumers.

Let's see the top 10 most-searched cars on Google, or something.

[Buick61]

Originally Posted by AdmiralViscen

I almost jumped at this topic as disastrous.

Then I realized that this told us more about what sort of clientele is drawn in by the Edmund's folks, than how successful domestics are with consumers.

Let's see the top 10 most-searched cars on Google, or something.

I didn't see anything that broad, but Yahoo! Buzz Log said the top four searches for hybrids were:

1. Toyota Prius
2. Ford Escape Hybrid
3. Honda Civic Hybrid
4. Chevy Silverado Hybrid

[327]

what about all cars searched? like on edmunds

[regfootball]

maybe only honda shoppers waste all their time on the internet.

[TimR]

I don't think this says much, however, GM could really update their websites once in a while....seems like they update their sites about 3 months after everyone else. At least the Canadian one.

And researching stuff online is not really a waste of time. Know your s**t before you go deal with the sales droids...it can be very helpful.

Later
Tim

[nailhead425]

I have found that the manufacturers websites generally have more information than Edmunds.com. That's why I don't go there. That and when doing a comparison, they list FWD as an "advantage" over RWD. Maybe in Yellowknife...

Cars.com and Carsdirect.com have some good info, I wonder what their top 10 are...

[Perian]

GM should also do something about the complexity of buypower.com.

If you compare the GM site to the Ford site (forddirect.com) the difference is night and day. The Ford site is clear and concise, the GM sight is, well; just a pain-in-the neck to use.

[Hard(l)y GM FUN]

Originally Posted by AdmiralViscen

I almost jumped at this topic as disastrous.

Then I realized that this told us more about what sort of clientele is drawn in by the Edmund's folks, than how successful domestics are with consumers.

Let's see the top 10 most-searched cars on Google, or something.

I would suggest, it is not about "Edmund's folks",
it is a direct reflection of the GM HEAVY REBATE POLICY.
No heavy discounts over internet
When I first tried to compare MRSPs on line,
I could not figure how "GM can make it",
but then when visited a dealer, I got it
Yet, many of those, whom you refer to as "Edmund's folks"
may not ever make it to the dealer...

[AdmiralViscen]

Okay.

The results of a single site don't say much of anything about the big picture.

[SSrevolution]

Did anybody notice that 9/10 of those were imports? Does anybody have a reason for this?

[327]

maybe import car people only go to edmunds

[Hard(l)y GM FUN]

Originally Posted by SSrevolution

Did anybody notice that 9/10 of those were imports? Does anybody have a reason for this?

What about HEAVY DISCOUNT POLICY of GM:
the discounts, which one can only get at the dealership.
While for "those imports", a real price is not that different from MRSP.