Consumers don't like wading through various option packages. That's one reason Hondas, Toyota, VWs and other foreign makes are easiest to Boll online.
Automakers that want to sell vehicles on the Web must simplify their products. The more decisions customers have to make, the slimmer the chance they'll choose that car or truck.
Simplification, however, is counter to Detroit tradition, which serves up thousands of combinations to buyers. The automakers believe offering customers so much choice is a competitive advantage over imported vehicles, which arrive in the U.S. basically as standardized units. By offering so much variation, automakers theoretically allow customers to configure a model over a broad price range, as opposed to the narrow price range on models that are available in a limited number of versions. The automakers also gain experience about the appeal of certain features before they risk making them standard.
Even so, the cost of offering so many variations probably has never been economical - and in today's electronic world it may be detrimental. So much complexity may push potential buyers away because it takes too much time to figure out the programs and their options. Customers are also turned off when they find out how difficult it is to order a low-price vehicle. In reality, automakers rarely produce base models, so the lowest price over a theoretical range is often frustrating fiction for the few people who try to configure and purchase, for example, a $32,000 Suburban.
Of course, truck buyers often have very specific and unique requirements. But even these could be accommodated with standard packages that enable shoppers to quickly select a preconfigured truck for towing or hauling, or even for relatively luxurious or recreational family needs.
Each day, we at Priceline receive 50 or more offers to purchase vehicles with "missing" items, proving that many features the automakers are pushing are what buyers want The only way to eliminate them is to special-order the car or truck But that doesn't cut it Few customers want to order their vehicle, especially if they are shopping online. They enter the virtual world to speed up the car-buying process and avoid the indefinite nature of the vehicle-ordering process.
When they are online they are ready to buy, and would prefer to take a car from a dealers inventory if it comes close to what they want This makes Hondas, Toyotas, Volkswagens and other foreign makes easiest to sell online. Consumers don't feel like they are compromising because the models are standard and the chances of finding a close match to their specified car or truck is high The sheer fact that these companies gained more than 2 percent profits in 1999 indicates greater choice among other features doesn't matter.
Furthermore, consumers seem to prefer that "experts" configure the vehicle for them, leaving to choice only a few important items such as sunroofs, heated seats or costly entertainment and navigation systems. All Honda models, and for that matter most foreign brands, offer limited choice, which doesn't hurt their sales over the Internet or in the showroom.
Consumers like it best when the automakers package the features to reflect the buyers' expec tations. They don't like wading through various option packages or struggling to understand mechanical featues. This was true for the last 20 years and remains so today, even as more con sumers shop online.
A reduction in the number of possible configurations is especially needed in all types of trucks. As more buyers research and configure vehicles over the Internet before they take a trip to the showroom, they frequently make judgments about the value or importance of specific features. As they see the price rise with each additional feature, they may or may not eliminate items that could enhance their overall driving experience, to say nothing of the vehicle's potential for resale value.
By simplifying their product lines, automakers can cut order-to-delivery times and allow customers to select the exact model they want And that will please everybody, whether in the showroom or on the Web.
[Author Affiliation]
Maryann keller is president of auto services at Priceline.com.
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