Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Auto service, maintenance and repair expenditures tops $172 billion in 2016
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- Figure 1: Total US retail sales and fan chart forecast of Auto Service, Maintenance and Repair, at current prices, 2011-21
- Consumers are wary of shady service providers
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- Figure 2: Attitudes toward service providers, by age and area, August 2016
- Consumers aren’t proactively scheduling service
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- Figure 3: Vehicle maintenance behavior, August 2016
- Amenities nice to have but not necessary
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- Figure 4: Factors for choosing a service location, August 2016
- The opportunities
- Consumers want digital reminders for service and maintenance
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- Figure 5: Attitudes toward service providers, by age, August 2016
- On-demand auto service and maintenance gains traction
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- Figure 6: Attitudes on service providers, by age, August 2016
- Parents likely to use social media to find a mechanic
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- Figure 7: Attitudes toward service providers, by parental status, August 2016
- What it means
The Market - What you need to know
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- Auto service, maintenance and repair spend expected to grow
- DIY sector has limited impact on the market
- Miles traveled exceed pre-Recession levels
- Aging vehicles may create demand for auto service
Market Size and Forecast
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- Auto service, maintenance and repair in healthy state
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- Figure 8: Total US retail sales and fan chart forecast of Auto Service, Maintenance and Repair, at current prices, 2011-21
- Figure 9: Total US retail sales and forecast of Auto Service, Maintenance and Repair, at current prices, 2011-21
Market Perspective
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- DIY sector is minimal
Market Factors
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- Miles driven will increase need for service
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- Figure 10: US miles traveled, Highway, 1990-2015
- Average age of vehicles on the road remain high
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- Figure 11: Average age of passenger cars and light trucks, 2002-15
- High consumer confidence allows consumers to make necessary repairs
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- Figure 12: Consumer Sentiment Index, January 2007- November 2016*
Key Players – What You Need to Know
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- Franchise dealer service centers win on trust
- Independent repair shops successful at building personal relationships
- Consumers less likely to opt for service at retailers with auto facilities
- On-demand services the next generation of repair
What’s Working?
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- Warranty work increasing along new car sales
- Franchise dealer service centers winning on trust
- Independent auto shops build personal relationships with their consumers
What’s Struggling?
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- Retailers not commonly visited for auto service
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- Figure 13: Auto service locations visited in last 12 months, Summer 2016
- Consumers not proactive with maintenance
What’s Next?
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- Openbay app to provide roadside assistance
- Insurance companies align with third-party service advertisers
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- Figure 14: Allstate auto service consumer email, April 2016
- Lincoln will provide complimentary on-demand pick up and drop off for service on all new 2017 models
The Consumer – What You Need to Know
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- Consumers trust their service provider, but are wary of others
- Quality of work is king
- Parents much more likely to find value in social media recommendations
- Independent repair shops more likely to have a personal relationship with their customers
Vehicle Maintenance History
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- Majority of consumers have taken their vehicle in for auto service
Vehicle Type
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- Consumers more likely to service a new vehicle over used
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- Figure 15: Serviced vehicle purchase type, August 2016
- Black consumers more likely to have serviced a used or CPO vehicle
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- Figure 16: Serviced vehicle purchase type, by race and Hispanic origin, August 2016
- Independent repair shop and third-party chain patrons more likely to have a used car
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- Figure 17: Serviced vehicle purchase type, by previous service location, August 2016
Auto Service Location
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- Nearly four in 10 vehicle owners chose a franchise dealer service center
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- Figure 18: Previous auto service location, August 2016
- Lower income households select independent or chains for auto service
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- Figure 19: Previous auto service location, by household income, August 2016
- Hispanics more likely to select retailers with auto services
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- Figure 20: Previous auto service location, by race and hispanic origin, August 2016
Vehicle Service and Maintenance Times
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- Weekdays are preferred for vehicle service
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- Figure 21: Vehicle service time preference, August 2016
- Older consumers prefer to service their vehicles on weekdays
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- Figure 22: Vehicle service time preference, by age, August 2016
- Suburban and rural residents more flexible with service times
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- Figure 23: Vehicle service time preference, by geographic area, August 2016
Auto Service and Maintenance Behavior
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- Many vehicle owners opt for one stop shops
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- Figure 24: Vehicle maintenance behavior, August 2016
- Consumers take the check engine light seriously
- Men more likely than women to shop around for alternative options
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- Figure 25: Vehicle maintenance behavior, by gender, August 2016
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- Figure 26: Pep Boys rewards card direct mail, October 2016
- Franchise dealer service customer more likely to proactively schedule service
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- Figure 27: Vehicle maintenance behavior, by previous service location, August 2016
- Independent repair shops create personal bonds with customers
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- Figure 28: Vehicle maintenance behavior, by previous service location, August 2016
Factors for Choosing a Service Location
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- Quality of work is most important for auto service
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- Figure 29: Factors for choosing a service provider, August 2016
- Parents more likely to select loaner cars as important factor
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- Figure 30: Factors for choosing a service provider, by parental status, August 2016
- Proactive tire maintenance leads to lower emphasis on cost
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- Figure 31: Factors for choosing a service provider, by tire maintenance behavior, August 2016
- Retail customers place heavier emphasis on efficiency
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- Figure 32: Factors for choosing a service provider, by previous service location, August 2016
Preferred Amenities
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- WiFi, TVs can help pass the time when vehicles are serviced
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- Figure 33: Preferred amenities, August 2016
- Women receptive to rides to and from local shopping centers
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- Figure 34: Preferred amenities, by gender, August 2016
- WiFi a must add for younger consumers
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- Figure 35: Preferred amenities, by age, August 2016
- Parents want something to entertain their kids
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- Figure 36: Preferred amenities, by parental status, August 2016
Attitudes Toward Auto Service and Maintenance
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- Transparency is critical in retaining customers
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- Figure 37: Attitudes toward service providers, August 2016
- Men associate quality with franchise dealers
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- Figure 38: Attitudes toward service providers, by gender, August 2016
- Younger adults want electronic service reminders
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- Figure 39: Attitudes toward service providers, by age, August 2016
- Parents search for mechanics via social media
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- Figure 40: Attitudes toward service providers, by parental status, August 2016
- Parents, urban residents, and social media users most likely to trust on-demand auto service
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- Figure 41: Attitudes toward service providers, parental status, urban residents, social media users for tires and service, August 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – Market
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- Figure 42: Total US retail sales and fan chart forecast of Auto Service, Maintenance and Repair, at inflation adjusted prices, 2011-21
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