– Motorcycle News, Editorials, Product Reviews and Bike Reviews

Motorcycle News, Editorials, Product Reviews and Bike Reviews

No Test-Rides, No Deals Means No Buyers, According to J.D. Power Survey

With new-motorcycle sales slipping, why buyers don’t buy may be more important than why they do. The customer-satisfaction gurus at J.D. Power and Associates tried to find out more in its first Motorcycle Escaped Shopper Study, a survey of over 3,000 motorcyclists who did pull the trigger and buy in September and October of 2008.

The results won’t stun anyone who has sold motorcycles or purchased a new one. Over half the shoppers cited dealership-related reasons for ignoring one brand and focusing on another. About 25 percent of them griped about not being able to test-ride the bike they thought they wanted. Eighteen percent walked out because the bike they wanted wasn’t in stock, and 15 percent found service lacking.

But the biggie is money. Fifty-seven percent of prospective buyers mentioned pricing (and I’m assuming they’re not complaining because the price was too low), and 16 percent had issues with a lack of incentives — like rebates or special finance deals. Another 23 percent of shoppers mentioned high maintenance costs as a reason they did not buy.

Expect motorcycle dealerships-at least the ones that survive-to get a whole lot friendlier and more involved with their customers. Even without this recession-we-dare-not-call-a-depression, the aging of the U.S. motorcycle-riding population alone points to shrinking sales for the foreseeable future. How the industry reacts will be interesting and will hopefully benefit riders, and in the long run dealers, alike.

Here’s the press release from J. D. Power:

WESTLAKE VILLAGE, Calif.: 10 December 2008 – A majority of new-motorcycle buyers reject a motorcycle brand because of dealer-related issues, according to the J.D. Power and Associates 2008 Motorcycle Escaped Shopper StudySM released today.

The inaugural study, which analyzes the reasons shoppers consider a particular motorcycle brand but ultimately purchase a different brand, finds that 51 percent of new-motorcycle shoppers cite dealer-related issues as a reason for rejecting a motorcycle brand. One of the primary dealer-related issues for rejecting a brand is the inability to test ride a bike, which was mentioned by one-fourth of shoppers as a reason for rejection, while 7 percent of shoppers indicate that the inability to test ride was the most influential reason for not purchasing a particular motorcycle brand. In addition, 18 percent of shoppers rejected a motorcycle because it was not available at the dealership, while the perception of being able to receive better service at another dealership is mentioned by 15 percent of shoppers as a reason for rejection.

“To avoid losing customers due to dealer-related issues, it’s important for dealers to better manage customer expectations,” said Tim Fox, research manager of the powersports practice at J.D. Power and Associates. “For example, making customers aware before they arrive at the dealership why they can or cannot test ride a particular motorcycle may help brands convert more shopper visits into sales. Since dealer-related issues can be controlled to a certain extent by dealerships and brands, focusing on meeting customer expectations in this regard can result in improved customer perception of a brand as well as lower rejection rates.”

The study also finds that price and financing are cited most often as the reason for rejecting a motorcycle brand, with 57 percent of shoppers mentioning price-related issues as a reason for rejection. Overall, price is cited by 41 percent of shoppers as a reason for rejection, and 28 percent name price as the most influential reason for rejection. Similarly, 16 percent of shoppers mention the lack of low-interest financing, rebates or other incentives as a rejection reason, while 23 percent of shoppers mention high maintenance costs.

“It is important for dealers to understand that for many of these lost sales, there was a legitimate chance of closing the sale during the shopping process,” said Fox. “Eighty-four percent of shoppers indicate they ‘seriously’ considered the brand they rejected, and 41 percent indicate they ‘very seriously’ considered the brand. While price is often a major reason for rejection, 51 percent of shoppers end up spending the same or more on the brand they purchased compared with the brand they considered but rejected.”

A vast majority of customers (81%) report having used the Internet to research motorcycles when shopping, 73 percent say they read magazine reviews, and 28 percent say they attended a trade show or motorcycle event, according to the study. Seventy-eight percent of motorcycle buyers indicated they contacted or visited a dealership for information before purchasing.

“More than three-fourths of customers report interacting with a dealership to find more information on a particular motorcycle, so manufacturers have a great opportunity to win or lose customers at this point in the shopping process,” said Fox.

The study, which also examines the impact of gas prices on motorcycle riding habits, finds that 29 percent of motorcycle riders report that they changed their driving habits during late September and early October 2008 when gas prices averaged $3.42 per gallon. Among those riders who changed their habits, 75 percent report using their motorcycle more often for commuting to work or school, and 41 percent say they use their motorcycle more often when driving around town. Additionally, 31 percent report doing less cruising, and 30 percent say they did less extended traveling.

The 2008 Motorcycle Escaped Shopper Study is based on responses from 3,022 new-motorcycle buyers. The study was fielded in September and October 2008.

wordscape cheatgun mayhem 2 unblocked games