Executive Current
Consumers Take the Wheel in Car Negotiation and Buying Strategies
Consumers are becoming increasingly savvy when it comes to negotiating and buying automobiles compared to a few years ago. The proliferation of information across the Internet, combined with word-of-mouth, print and broadcast media gives consumers access to a wealth of knowledge, and in turn, equips them with negotiating clout when visiting the dealership. What most manufacturers don't realize, however, is that once consumers enter the showroom, most have already narrowed their choices within a target price. Am I Being Taken? The Impact of Consumer Negotiation Preferences and Strategy, conducted by the Car Internet Research Program (CIRP) in conjunction with Capgemini, argues that the dealer is faced with customers, who, to a large extent, already know what they want. In an effort to better educate dealerships and Original Equipment Manufacturers (OEMs), this study examines buyer perceptions during the car negotiation process and in turn, how their interaction affects their level of satisfaction with the salesperson, dealership, and ultimately the OEM.
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