Jumpstart Automotive Group

Jumpstart Buyer Intent Index shows “Window Shopping” Pattern of American Consumers Increased Dramatically in the Last Year, Cash For Clunkers Spiking Interest

Jumpstart announced findings from an 18-month-long study of American car shoppers showing that despite decreased sales and shaky economic conditions, consumers have remained consistently interested in online shopping for vehicles. Consumers were found to continue their online research for cars at consistent levels, though planning vehicle purchases further in the future than in recent years. The data shows that the new consumer pattern of vehicle “window shopping” has lengthened the vehicle shopping process considerably.

Data from the Jumpstart network of in-market car shoppers across its 10 sites, including Vehix.com, Consumer Guide Automotive, JD Power Autos, Shopping.com, CarandDriver.com, and RoadandTrack.com, and others, showed that despite slowing buying patterns, consumers continued to actively shop in the face of plummeting consumer confidence.

By comparing online shopping demand with vehicle sales, the Jumpstart team created a “buyer intent index,” showing the impact when online shopping rates differ from vehicle sales, with a higher index reflecting consistency between online shopping and vehicle sales. The index reveals that January and February of 2009 marked the lowest buyer intent level over the 18-month period.

* Buyer Intent Index = Correlation between shopper demand and vehicle sales

• At or above the average indicates shopping demand and sales were on a similar trajectory
• Below the average indicates shopping demand was greater than resulting sales during the given month

The index showed that with the second quarter of 2009, shopper demand and sales began to coincide again, starting with the month of April corresponding with the incentive programs heavily promoted by Ford, GM, and Hyundai. The remainder of the spring has shown less consistency with the trend lines, with vehicle sales dropping again in June while shopping continued to grow. June growth in demand could be driven by the government-sanctioned Cash-for-Clunkers program, which has generated a lot of buzz over the past few weeks. In fact, in a recent poll of 165 Jumpstart visitors, 38% of them indicated that the program would make them more likely to purchase a vehicle within the next six months.

Jumpstart also gathered qualitative data on the increased window shopping trend from consumers visiting Jumpstart’s websites over the past year. In June of 2008, 49% of surveyed shoppers said they were ready to purchase a vehicle in six months or less (12% within a month). A year later in June of 2009, that number fell to 40%, with 28% of shoppers indicating they plan to be prepared to make a purchase within 7-12 months.

“The key takeaway from this highly unique pattern of vehicle ‘window shopping’ is simple: consumers are still very interested in cars, and actively researching future purchases, even if they are not imminent,” said Joe Kyriakoza, VP, Strategic Insights at Jumpstart Automotive Group, “Marketers need to respond to this longer-term sales cycle with appropriate messaging to engage with this new consumer trend.”

About Jumpstart Automotive Group
The Jumpstart Automotive Group brings together the most diverse audience of in-market automotive shoppers with the industry’s most influential auto enthusiast brands to dramatically improve the effectiveness and efficiency of automotive marketing across digital, print, and mobile platforms. Fueled by a passion for performance, the Jumpstart Automotive Group is committed to the development of quality content and services for consumers and to maximizing publisher revenue and advertiser results through innovative products and services. The portfolio of publishing partners include Vehix, Consumer Guide Automotive, JD Power Autos, Shopping.com, Car and Driver, Road & Track, CarSoup.com, U.S.News.com, HybridCars, and CarGurus. Additionally, Jumpstart has been on the forefront of behavioral targeting and is now developing leading research and strategic insight products.