This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Mobile "Showrooming" Now Mainstream In Automotive Retail

CHICAGO, Jan. 24, 2014 /PRNewswire/ -- According to Placed Inc., 63% of car shoppers now use their smartphones to do research and make decisions while at automotive dealerships. In an independent study commissioned by Cars.com, Placed Inc. found that on-lot mobile "showrooming" significantly influences both dealership and vehicle selection, with pricing information, inventory availability and mobile advertisements persuading shoppers to visit competing dealerships – behavior that mirrors traditional retail shopping. To download the full report, please visit: http://dealeradvantage.cars.com/on-lot-mobile-study.

"In the same way online advertising revolutionized the automotive retail industry over the past decade, mobile shopping has exploded in just the past year, fundamentally changing the way dealers need to engage with customers," said Alex Vetter, senior vice president at Cars.com. "Retailers should take immediate action to make mobile a cornerstone of their marketing strategy or risk losing out to mobile-savvy competitors."

The study examined survey response and location data from more than 500 participants following visits to automotive dealerships, through the Placed smartphone app.

The study's findings include:

  • Universal adoption: 81% of auto shoppers used smartphones to do research when purchasing a vehicle, including 63% who used their smartphone while physically at an automotive dealership. A quarter (25%) of auto shoppers conducted research using a smartphone only, prior to visiting a dealership.
  • Automotive "showrooming": The study found that mobile auto shoppers were 72% more likely to visit an additional dealership than shoppers who did not use a smartphone. Top on-lot activities included calculating price and payment information, confirming vehicle availability and comparing local competitors. Of shoppers who visited more than one dealership, more than half (52%) did so because of information gathered on their mobile device.
  • Mobile ad Influence: Advertising played a key role in influencing decisions as 33% of shoppers were lured to a competing dealership based on a mobile advertisement found while on a dealer lot.

"There's been similar research around showrooming across other retail categories, but this is the first time anyone has been able to look quantitatively at mobile consumer behavior within automotive with this level of detail," said David Shim, Founder and CEO at Placed. "A vehicle is one of the largest retail purchases a consumer makes, so it's understandable that shoppers use every resource available - including their smartphone - to make what is often a very complex, calculated decision."

The study also analyzed the role of third-party automotive marketplace sites in on-lot mobile auto research. The top 4 third-party in-market shopping websites (Cars.com, AutoTrader, KBB, Edmunds) were utilized by 56% of on-lot mobile users in the study, far surpassing use of manufacturer websites, dealership websites and search engines. This signals a consumer need for unbiased third-party information while on the lot in order to confirm car buying decisions.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs