86% of Malaysian car buyers do research online before making a purchase, according to Google study

86% of Malaysian car buyers do research online before making a purchase, according to Google study

The Internet has certainly changed how we look at the world, be it from gathering information about a topic or how we now go about shopping for products. New research data from a study carried out by Google and TNS shows that the convenience and portability of mobile has also transformed the way Malaysians buy cars, and snippets of these were presented today at Google’s Auto Day briefing at its Kuala Lumpur office.

The presentation was aimed specifically at automotive industry companies to show them how the web is now at the heart of the car buying process, and how they can tap into the new trend in order to be at the forefront of people’s minds, but there were interesting statistics and insights to be gleaned from the research data.

In the 1980s, selling cars was limited to reaching consumers via ads on TV and magazines or through reviews, which then encouraged people to go to their local dealer. But today, there are many entry points into the game, and the permutations are quite staggering from an available content point of view.

86% of Malaysian car buyers do research online before making a purchase, according to Google study

Touch-points have increased exponentially, and so buyers are now able to carry out specific searches on a product, watch relevant videos, browse websites to research and even get feedback via social media means, many times before even stepping into a showroom.

With 75% of Malaysians (that’s 24 million out of 32 million) online owning an average of 3.1 devices per person (compared to the Asia-Pacific average of 2.8 devices per person) and spending 6.3 hours a day being connected to the Web, there’s no shortage of contact, particularly from a mobile perspective.

Malaysians, as it turns out, are very savvy shoppers. The technology company said that its study revealed that 86% of car buyers research online before making a purchase, and 74% are influenced by the ads they see. It added that three out of five Malaysian car shoppers have a brand in mind when they search online.

As far as being foremost in the mind goes, paultan.org is right up there, as you’d note from one of the slides in the Google presentation deck. The number one resource for anything car and motoring related in Malaysia has over two million unique visitors per month, and our sister site CarBase.my is the leading repository for new car information in the country, garnering over 300,000 unique visitors each month.

Thanks to the wealth of information available online, car shoppers this year are expected to visit just 2.5 dealerships on average before making up their minds. This is a drop from the 2013 average of shoppers who visited 3.5 dealerships before making a purchase. Also, the study showed that three out of four buyers have already made up their mind when they step into a dealership.

The data indicated that searches for car dealers increased by 23% last year over 2015, and that ‘car dealerships near me’ searches grew three times in 2016 vs 2015 on mobile devices, with dealership searches not surprisingly peaking during weekends.

It also revealed that online searches for car loans increased 21% in 2016 compared to the previous year, and people carry out this when they are ready to buy a car, mostly corresponding to when car price searches climb. Statistically, the end of Q1 (March, and into April), the start of Q3 (July) and the end of Q4 (December) are when online searching – both vehicular and loan – is highest.

The research also showed that Malaysian buyers want a good deal, with pricing being the most important aspect of any purchase, but though functional factors have more traction than emotional factors in the purchase journey, consumers had different considerations, depending on the segment they were shopping in.

Luxury-brand consumers place an emphasis on performance, technology and design, while mass market consumers focus on after-sales service, fuel economy and resale value. Interestingly, the study revealed that fuel efficiency was last on the list for the luxury segment customer in terms of the considerations specified, while design was last in importance for the mass-market buyer.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • i_swear on Apr 13, 2017 at 7:40 pm

    Malaysian is too brand oriented. How much they research, at the end Toyota and Honda.

    So as the article had said, they only wanna get which get more rebates and which got lower interest.

    Like or Dislike: Thumb up 22 Thumb down 15
    • Graduan Bijak on Apr 13, 2017 at 10:50 pm

      Yes true majority of us avoid Proton.

      Very smart move indeed!

      Like or Dislike: Thumb up 23 Thumb down 3
    • Kelab Kebenaran Kunta on Apr 13, 2017 at 11:19 pm

      Biggest casualty in online car research is Proton. Many buyers or even potential buyers have refrained from buying a Proton after reading news about how the company keeps on sucking rakyat’s money.

      Infact, many forums had forummers say they had cancelled their Proton orders after seeing Proton was again asking for money (the recent RM1.8 bil 2nd free “loan”)

      In today’s world, consumers are principled. They will never buy from an unethical company or a company that keeps on sucking the rakyat’s money.

      Like or Dislike: Thumb up 22 Thumb down 2
      • tokmoh. on Apr 14, 2017 at 10:36 am

        They would also research into owner’s fb group page.

        Enter proton owners page, always see got owners complaint fc high, show service invoice so expensive. How can iriz, targeted to freshie, first time owner, have service cost over RM1k when time to service CVT? The most expensive Bezza service cost not even RM400.

        Whereas enter honda or perodua owner’s page, they always show good fc, service invoice affordable. The atmosphere in the group much happier than in proton’s.

        So more people avoid proton altogether and get Honda or perodua. They may cost more for equivalent proton, but it’s like Lenovo and iphone.

        Lenovo may be cheaper, but with low spec, it won’t last long before it becomes too frustrating to use. Whereas iphone is fast and powerful, can easily last 2 years smooth experience. If you can afford an iphone, you’d go for it, tak payah fikir, tak payah pening. Just like Honda and Perodua. Peace of mind for long run. Can’t get that with Lenovo or Proton.

        Like or Dislike: Thumb up 11 Thumb down 1
        • How does one servis CVT, hmm?

          Like or Dislike: Thumb up 0 Thumb down 5
          • tokmoh. on Apr 14, 2017 at 12:08 pm

            Never changed CVT fluid and filter before?

            Wait for the time to change those, you’ll shit brick confused wondering you’re servicing a proton or a Conti car.

            O wait, proton is asian bmw, volvo. Gearbox also from Belgium. Genious.

            Like or Dislike: Thumb up 6 Thumb down 0
        • A basher once said an old tech SOHC can have better FC than new DOHC. I wonder if it’s true?

          Like or Dislike: Thumb up 5 Thumb down 2
          • tokmoh. on Apr 14, 2017 at 12:19 pm

            City/Jazz currently use SOHC L15A engine. But it’s really a lot of other combination : new Earth Dreams CVT with lesser transmission loss, lightweight body, aerodynamic low drag, thin, low drag eco tyres etc.

            Unless all other factors kept constant, SOHC or DOHC hardly can be considered as a factor.

            Only for theoretical discussion maybe can argue SOHC more fuel efficient, as SOHC tend to have better low end torque, SOHC being simpler means lighter weight, but practically impossible to confirm with too many other variables affecting fc.

            Vios had DOHC since 1st gen here, they’re well known for good fc.

            Like or Dislike: Thumb up 7 Thumb down 0
        • 8monthwait on Apr 14, 2017 at 12:18 pm

          First time owner should go for Saga, not mid range like Persona/Iriz

          Like or Dislike: Thumb up 0 Thumb down 6
          • Definitely not Saga. First time owner should drive something smaller size so that parking is easy and has excellent turning radius for easy U-Turn. I would say Axia is just nice for newbie car owner especially fresh grads , which the better fuel consumption of Axia will lessen the pain in the wallet. Besides that, the 3 cylinder engine requires only less than 3L of engine oil to run, for Saga you need to buy a 4L bottle.

            Like or Dislike: Thumb up 4 Thumb down 0
          • dtctr on Apr 15, 2017 at 11:57 pm

            p2 SA detected!!!

            Like or Dislike: Thumb up 1 Thumb down 1
    • Azizulhasni on Apr 13, 2017 at 11:53 pm

      Sokonglah Team Malaysia

      Like or Dislike: Thumb up 7 Thumb down 2
      • AutoFrenz (the original) on Apr 14, 2017 at 11:34 am

        Congrats azizulhasni…you made Malaysia proud..bravo..kudos…

        Like or Dislike: Thumb up 5 Thumb down 0
    • TOK GURU on Apr 14, 2017 at 7:26 am

      Can i knw what is wrong with that?

      Like or Dislike: Thumb up 3 Thumb down 0
    • AutoFrenz (the original) on Apr 14, 2017 at 11:31 am

      But sadly after that they end up buying low cost vehicle like honda brv..so much so for doing reserach..not knowing that its not a global car but a car meant for third world country…sigh

      Like or Dislike: Thumb up 6 Thumb down 0
      • kakaka on Apr 16, 2017 at 12:00 am

        SSShhhhhhhhh just keep quiet lah, nobody will know. In bolehland if you got H badge car, pipu say you have made it in your life!

        Like or Dislike: Thumb up 0 Thumb down 0
  • nabill (Member) on Apr 13, 2017 at 7:47 pm

    all that research and they end up buying Bezza …#Facepalm

    Like or Dislike: Thumb up 16 Thumb down 14
    • Mikey on Apr 13, 2017 at 8:45 pm

      Regardless what brand/car they buy, most will have double Facepalm bcos they all need $$$ for Maintenance, Road-tax, Insurance, Change Tires, Battery & this is where they end up regretting by not factoring the cost when buying.

      Like or Dislike: Thumb up 17 Thumb down 0
    • Research, research, research, in the end listen to pama, unker, auntie stories and then herd buy.
      #FacepalmMYConsumers

      Like or Dislike: Thumb up 12 Thumb down 11
    • tokmoh. on Apr 14, 2017 at 10:43 am

      Jimat minyak, servis murah, Advance got VSC, RV better. Why not?

      Prefer syok sendiri Lotus handling? Proton wording in headlamp, taillamp, perasan like a BMW, Merc, Volvo? Laggy, jerky CVT? High fc, expensive service cost? No RV?

      Kid, go finish study first. When u enter working world, when u know how hard to earn money, then u understand. Most people don’t give a fak about handling, patriotisme beli barang orang kite bs if it’s gonna cost more to run.

      Anyway, perodua also our local product, why the discrimination? Again, with that mentality they’re not “true” local car because they rebadge, tell that to proton’s Perdana/accord, ertiga.

      Like or Dislike: Thumb up 9 Thumb down 2
      • Nope. P2 is NOT local produk, its celup jepunis.
        Pls dun gip bad rep to my P2 name. We here hard sell it to oblivious customers as rebadge jepunis, deswai its reliable, not crappy MY mari. MY all tabouleh pakai wan.

        Like or Dislike: Thumb up 3 Thumb down 10
  • Jaguarman on Apr 13, 2017 at 8:25 pm

    If cant afford Merc, get a Honda. Cant get a BMW, okay wiz a Toyota. Malingsia stereo-type. No thanks to DRB cronies & UMW dedakians.

    Like or Dislike: Thumb up 1 Thumb down 8
  • TOK GURU on Apr 13, 2017 at 9:10 pm

    Well done paultan.org

    Like or Dislike: Thumb up 5 Thumb down 1
  • Mikey on Apr 13, 2017 at 9:48 pm

    “The technology company said that its study revealed that 86% of car buyers research online before making a purchase, & 74% are influenced by the ads they see. It added that 3 out of 5 M’sian car shoppers have a brand in mind when they search online.”

    I’m Not going 2 dispute that. In fact i think that is the main problem why so many buyers bought a product including car ended regretting buying one.

    Many bought a vehicle think that they “Needed” one but in fact they “Wanted” one bcos their siblings, friends & colleagues have one.

    Most humans “Wanted” almost everything that they see but they fail to realize that not all wants are Actually Needs.

    My point is – Do not buy a car unless U have personally tested the car & make sure U test at least 3 cars B4 committing 2 one. Same goes for choosing your life partner. It is your hard earn $$$ & there 4, choose wisely.

    Like or Dislike: Thumb up 12 Thumb down 4
    • tokmoh. on Apr 14, 2017 at 10:49 am

      Recently BNM revealed their survey showed 75% Malaysians don’t even have RM1,000 cash for emergency if it were to suddenly happen.

      Goodness. BNM is not asking everyone become haji bakhil, eat maggi everyday, like life like bangla, homeless beggar, but to completely disregard saving is financial suicide.

      Like or Dislike: Thumb up 6 Thumb down 0
  • Mr. Mao on Apr 13, 2017 at 9:49 pm

    buy anything but P1…..

    Like or Dislike: Thumb up 24 Thumb down 14
  • Titopus on Apr 14, 2017 at 9:08 am

    I wanted to buy the new Tiguan, did many search online for reviews & clips, like the car so much, then went to VW showroom for test drive, found out that the car look different from what I expected, only to found out that the oversea market got this call “R-Line” with a much beatiful bumper & skirting kid, event the tail light is much beautiful than ours. Our car here looks so Lame, can convince myself to buy this look, call it off…. Too bad VWM, why can’t give us the good things, even for the so call Highline model… shame

    Like or Dislike: Thumb up 5 Thumb down 0
    • applegreen on Apr 14, 2017 at 9:22 am

      Now you know what is the difference between CBU and CKD models

      Like or Dislike: Thumb up 8 Thumb down 0
  • V-tec Fan on Apr 14, 2017 at 9:30 am

    Betul betul… i normally look at forum where real user experience and problem they facing, so we can know what coming and what to avoid. bukan semua car lover buta internet. cheer.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Kuinosan on Apr 14, 2017 at 9:59 am

    Now car buyers are more aware and educated hence the major drop in sales for car makers like Toyota and Volkswagen. People are turned off by the fact that UMW Toyota is offering cars that are actually recycled models with bits of cosmetic changes and no actual technological advancement. Which they dare call a new model time and again.
    As for Volkswagen, the amount of complaints and bad reviews have virtually scared all car buyers away. Remember the all famous public protest carried out by owners of Volkswagen not long ago? And the worldwide critism of the vulnerability of the DSG gearboxes? Moreover, we see countless times these Volkswagen cars breakdown by the roadside waiting for their cars to be towed. Scary isn’t it? Who would want to go through that kinda experience? So at the end of the day, these online checks are very important to keep potential car buyers informed and aware before they splurge their hard earned money on a new car.

    Like or Dislike: Thumb up 7 Thumb down 0
    • If u want a reliable car, get a Toyota. Then there’s no tech advancement
      If u want a tech advanced car, get a VW. Then it’s not likely to be reliable
      U can’t have both

      Buyers choose which ever are suitable for them. Everyone is different

      Like or Dislike: Thumb up 2 Thumb down 0
      • Not really. If you want reliable and high tech, you can buy the Prius. And yes, you can have both. Prius is a taxi in many countries in the world today. And yes, it is a Toyota and Hybrid is no tech advancement ? Then what is ?

        Like or Dislike: Thumb up 4 Thumb down 2
  • DBTAKKL on Apr 14, 2017 at 10:46 am

    What is wrong with the 14%?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Joker on Apr 14, 2017 at 10:55 am

    What Google is trying to tell you is to spend more on online advertising. Please don’t act like this is a groundbreaking study.

    Like or Dislike: Thumb up 3 Thumb down 0
  • GeneralHoho on Apr 14, 2017 at 11:05 am

    “……. while design was last in importance for the mass-market buyer.”

    That’s why dugong pun dugong laah.. LOL

    Like or Dislike: Thumb up 2 Thumb down 1
  • Ben Yap on Apr 14, 2017 at 11:42 am

    true that many malaysians research about the cars they want to buy but most of the time, they research on the cars they dream to own.

    eventually, many will settle for Perodua, Proton, Honda and Toyota which is what all tom, dick and harry will buy even without researching.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Without the internet, people will still buy Proton thinking that spending all their annual leaves at workshop is a normal thing to do.

    Like or Dislike: Thumb up 11 Thumb down 2
 

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