Retail staff knowledge critical to beating internet sales channel - J D Power

ERJ staff report (DS)

Tokyo -- Increasing proportions of winter tyre owners in Japan are using the Internet to

select and purchase their winter tyres, which may create challenges for winter tyre retail stores, according to the

J.D. Power Asia Pacific 2011 Japan Winter Tire Retailer Satisfaction Index Study released last week.

Increasing proportions of winter tyre owners in Japan are using the Internet to

select and purchase their winter tyres, which may create challenges for winter tyre retail stores, according to the

report.

The study finds that purchase behavior of winter tyre owners is being shaped by the Internet. The percentage

of customers who say they rely on information from the Internet while shopping for winter tyres has increased

to 29 percent in 2011?up 7 percentage points from 2010. The percentage of customers who say they

purchased their winter tyres through the Internet or mail order has increased to 13 percent from 9 percent in

2010.

“It is becoming ever more important for tyre retail stores to attract customers who rely on Internet

information,” said Tetsushi Furuya, project manager at J.D. Power Asia Pacific, Tokyo. “Customers who rely

on Internet information while shopping for their winter tyres place more importance on durability and

reliability compared, with customers who do not compare various brands. Tyre retailers need to take action to

help customers understand the benefit of receiving information about tyre selection and maintenance at stores

or from dealers.”

Improving customer satisfaction has a strong positive effect on customer loyalty and retention. More than 35

percent of customers with satisfaction scores averaging 704 or higher on a 1,000 point scale indicate they

“definitely would” repurchase their next set of winter tyres from the same tyre retailer. This proportion declines

to only 12 percent among customers with satisfaction scores averaging less than 704.

“The Internet allows tyre shoppers to quickly and easily access information to make their shopping decisions,

so tyre retail stores need to focus on differentiating themselves by offering service and advice that is

customised for each shopper,” said Furuya.

The study finds that overall satisfaction averages 82 points higher among customers who were given

suggestions by the salesperson on the best tyres for their vehicle, compared with customers who didn't receive

these suggestions. In addition, the study also finds that suggestions provided by salespersons increases

satisfaction among customers who used information from the Internet while shopping. According to Furuya,

although some customers may have already decided which brand of winter tyre to purchase prior to visiting the

retailer, identifying the needs of these customers and suggesting products appropriate for them still has a

positive effect on satisfaction.

The 2011 Japan Winter Tire Retailer Satisfaction Index Study is based on responses from 4,319 customers

across Japan. The Internet-based survey was conducted in February 2011 and includes customers who

purchased new, studless winter tyres for their private passenger cars (new or used), including mini-cars,

between May 2009 and February 2011.

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Press release from J D Power