Which retail offers hold most appeal?

Our client, a major car company, needed to identify what retail offers would most likely drive enquiry. They had developed price, value and other-based concepts:

  • Price: e.g. Free on road costs; factory bonus; gift card
  • Added value: e.g. extended warranty; free servicing; free accessories
  • Other: e.g. low rate finance; deferred payment; free insurance

a&b was commissioned to measure the levels of preference revealed for each concept among considerers of a new car purchase. Unique sets of concepts were developed for those most considering either a Light or Small segment car, or a Compact SUV.

Maximum value via ‘Maximum Difference’

Our client did not have an extensive budget available so, looking for the right balance of value for money and methodological rigour, we conducted a highly effective and cost efficient research approach featuring a choice-based maximum difference test.

This is a well-known “modelling” technique that in effect, asks participants to rank a series of offers (three at a time) in terms of the ones that they consider to be the most appealing and least appealing in the context of choosing a vehicle. It is effectively a choice trade off technique that works to great effect.

The concepts covered a broad spectrum of practical/rational and emotional/ acquisitive dimensions.

Different appeal for different segments

It was clear that the Light and Small car considerers were somewhat different than the SUV considerers; the latter had much greater weighting toward value offers directly related to the vehicle’s features and comforts. The remainder were more driven by the acquisitive concepts that delivered benefit beyond the vehicle itself.

Stratified marketing and great outcomes

Armed with these insights, our client developed retail-focussed marketing campaigns that delivered differential features and benefits by vehicle segment and model.
These initiatives helped to lift the market presence of the range and deliver enhanced conquest sales.

To learn how a&b can add value to your organisation’s marketing and business strategy, contact us:

+61 (2) 8227-5400