DED study points to changing consumer preferences and focus on after-sales service in Cars sector

Consumer preferences and behaviour in the Cars sector appears to have changed considerably in recent years and dealers who offer high quality and technology along with attractive price tags are leading in the competition, shows an analysis of consumer friendliness conducted by the Department of Economic Development (DED) in 2013. 

DED gathered opinions from consumers and retailers across six major industry sectors, including the Cars sector, as part of the first-ever Consumer Friendliness Rating analysis to evaluate the major drivers of consumer behaviour and understand the level of compliance to the Consumer Code of Rights stated in the Federal Law No 24 of 2006. 

The rating process for the Cars sector included feedback from 890 customers dealing with 10 leading car dealers. Omar Bushahab, Chief Executive Officer of Commercial Compliance & Consumer Protection (CCCP) at DED said the feedback revealed the top consumer concerns and areas dealers should focus to drive business and improve customer relations. 

“The Cars sector has a vast customer interface given the high number of car owners in Dubai and the sector saw 20 per cent growth in 2013 as consumers across various segments had more to choose from in terms of models, pricing and special offers. At the same time consumers are also watching what they get for the price they pay,” added Bushahab. 

The rating shows a strong and steady relation between dealers and buyers exists in the Cars sector as 84 per cent of customers go back to their dealer for after-sales service. The major attraction dealers hold for 78 per cent of customers is the transparency in billing and 74.9 per cent rate the service quality as good. 

A top concern for 41.3 per cent of consumers in the sector is lack of clarity in policies on warranty and services. There is also a significant number of customers (51%) who think the price they pay for a car is unreasonable. 

“Consumer behaviour in the Cars sector has changed considerably during the last four years. A significant number of buyers are from the middle income group and they are looking for high quality and cutting edge technology along with competitive prices. Some of the car agencies are addressing these demands appropriately and the rating shows they are the ones that get the best outcomes,” said Bushahab. 

As per the analysis, 23.7 per cent of the consumers are generally dissatisfied with car agencies in Dubai. The rating also suggests re-evaluating prices, offering incentives and improving quality of after-sales service are the best means for car dealers to eliminate complaints and ensure customer loyalty. 

The findings of the Consumer Friendliness Rating from the six sectors will be collated into a ‘Consumer-Friendliness Index’ and outlets that won outstanding customer approvals will be honoured in a special ceremony hosted by DED.