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I was standing in line at JC Penney, waiting to pay for my half-price bras (good deal) when I overheard the conversation of the three people ahead of me. One couple was discussing a woman's recent experience shopping for a car. What I learned in five minutes was very telling about car salesmanship in general, particularly as it related to two dealerships. Ouch.
The gentleman in the conversation (accompanying his wife in line) asked the second woman about her experience in foreign car showrooms as it compared to domestic cars. She proceeded to tell the story of a local Kia dealer and its hard-sell, harassment sales style.
The woman said she went to the general manager to complain that all she wanted to do was look without salespeople being in her face at every turn. The GM's response? "That's our policy." That's when she walked out. (Talk about not listening to your customers.)
She then told the couple about her experience at a Chrysler dealer, claiming that it was better than Kia, but still, all she wanted to do was look without being bothered - a principle none of their sales people could understand.
The gentleman then piped in to ask about one particular American car dealership that advertises on local TV. He said his experience there was terrible and that once, after purchasing a car, the salesman called to say there was an error in the purchase price and he needed to return to re-negotiate. That's when the woman said she wasn't surprised because the owner's TV ads are so bad.
What does this tell me? First of all, that some car dealers are in La-La Land. Here's a March 2007 post from Consumer Reports Car Blog:
It’s a woman’s car-buying world out there. Women purchase more than 46 percent of all new vehicles and influence over 80 percent of all automotive sales, according to a recent study by CNW Marketing Research (CNW). That adds up to about $80 billion worth of business, according to a past female buyer study by Road & Travel. Car dealers, hear us roar.
Secondly, although you can't always rely on anecdotal feedback, the truth is - I'm dubious now. I can't help feeling that I got an inside view into these dealerships' sales practices and behaviors, and it's not a pretty picture.
So, when they say that word-of-mouth marketing can be your best friend when it's positive, it can also be sooooooo damaging when it's not.
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Comments
Elaine, I'm afraid it's been this way with car dealers (new and used) for sometime. It's a very adversarial relationship, with both sides trying to walk away with the best deal and their pride intact.
I think that's what made Saturn's initial approach to car buying so unique. Sales people weren't commission only, cars were a fixed price, and people could go kick the tires on a car without harrassment.
I think things have changed for the worse at Saturn dealerships, but I hold out hope for improvements in the car purchase process. Until then, there's always the car buying services of Costco or AAA!
Posted by: Paul Barsch | 06.13.07
Thanks, Paul. I guess car sales people have been the butt of jokes as much as lawyers have been! The conversation in line could have been about furniture stores or any other consumer products. The part I found interesting was eavesdropping on a bad word-of-mouth marketing experience. It certainly kept my attention.
Posted by: Elaine Fogel | 06.13.07
Elaine,
I buy mostly used cars so I am not qualified to speak personally about car dealerships. However, my cousin bought his last three cars from a nearby dealer and I went with him for his latest purchase. The sales person was really helpful, ran numbers in a variety of ways to meet my cousins needs, and sold my cousin a car at a good price that he loves.
Posted by: Lewis Green | 06.13.07
Elaine,
I buy mostly used cars so I am not qualified to speak personally about car dealerships. However, my cousin bought his last three cars from a nearby dealer and I went with him for his latest purchase. The sales person was really helpful, ran numbers in a variety of ways to meet my cousin's needs, and sold my cousin a car at a good price that he loves.
Posted by: Lewis Green | 06.13.07
Thanks, Lewis. I'm happy to hear that there are positive experiences out there. I, too, haven't purchased a new car in a few years. But, when I'm ready, I'll be paying attention to the sales approach and asking friends for referrals.
Posted by: Elaine Fogel | 06.13.07
Just about everyone has a story about pushy car salesmen. I actually knew a car salesman who made a point of not pushing people into purchases (cause he was morally against the idea) and he said all his colleagues were amazed at how often people would ask for him specifically when they came to the dealership. So all he did was treat people respectfully (like any sales person should) and word of mouth made him enough sales to be one of the top dogs at his sales yard.
Posted by: JakeNudge | 06.13.07
Word of mouth advertising is amazing, no doubt. I know people who've selected brokers, banks, real estate agents, neighborhoods, etc…based on positive word of mouth advertising! What is interesting is that the impact is still evident even when the word of mouth advertising comes from eavesdropping on a stranger's conversation! Powerful.
Posted by: Janet Franklin | 06.14.07
Jake, that salesman figured it out. Customers like to be respected. It creates a trusting relationship.
Janet, you're right. It's amazing what you can learn just standing in a line-up.
Posted by: Elaine Fogel | 06.14.07
I had a similar experience with my car insurance agency recently. One of their reps told me something and then recanted two weeks later. When I confronted her manager about it, she told me that she couldn't help me, because it was against their policy.
Woopee.
Posted by: Cam Beck | 06.14.07
Elaine,
I agree word of mouth is the way to go, good or bad. I had a horrible experience with Toyota last year. After the dealer and Toyota customer service (or lack of customer service as I call them) failed to help me with a purchase I went to Acura. When things didn't go smoothly I ended up going to the state Better Business Bureau. Let's just say that helped and I encourage other to keep the BBB in mind. I love to tell my horror stories to others. Word of mouth can be fun either way!!!
Posted by: Andy | 08.02.07
Has anyone out there heard about WideCircles.com. It seems like a way better service then regular pay per click. Apparently they are using refering websites ( forums, blogs, wiki, etc. ) and have a viral word of mouth distributed approach to it which is engaging rather ther then interrupting customers. My friend told me he got over 500 visits from single post which cost him around $0.40c, within a few days. I am going to give them a try today . In case you are intrested here is it. http://widecircles.com?imt=3
Posted by: Gayashani | 03.17.08