January 2010

Let’s Make a Deal
NPD’s ongoing tracking of how consumers are responding to the economy shows 75 percent of consumers surveyed expect that they will be more likely to purchase only when the items are on sale or special promotion. Thrifty shoppers across the entire retail spectrum are keeping their eyes open for deals and discounts, so it’s no surprise that bargain hunters exist in the automotive aftermarket, too.  Automotive products retailers appear to be paying attention to this trend by offering shoppers the specials they’ve been looking for. 

With 17 percent of DIY automotive product consumers reporting they made a purchase at a special or discount price, it’s clear deals can be found in a broad variety of automotive categories.  But one of the best examples of a trend toward dealing is the motor oil category.  NPD’s Car Care Trac, an ongoing survey tracking consumers’ automotive purchases, reveals last year, more motor oil buyers than ever before reported making their purchase at a special discount price.  In the 12 months ending November 2009, 22 percent of those surveyed reported they paid a special or sale price for motor oil, compared to just 16 percent two years prior.

Distinctive Deal Shoppers
Although consumers who bought on deal come in all “shapes and sizes,” there are some interesting distinctions.  For example, motor oil deal shoppers last year were slightly more likely to purchase full synthetic motor oil than other types of motor oil.  The Aftermarket Industry Monitor reports that in tracking actual sales at more than 18,000 auto parts stores, full synthetic quart volume increased nearly 9 percent in the 12 months ending November 2009 versus year-ago.  While total passenger car motor oil price per quart increased 11 percent, full synthetic price per quart was only up 4 percent, perhaps reflecting promotional discounts.

Car Care Trac also reveals motor oil category discounts seemed to be an effective purchase behavior driver. Eighty-one percent who bought motor oil on deal said they specifically went to the store for that motor oil purchase. Also, those shoppers were more likely to say they would have made no purchase if their preferred brand were not available (15 percent compared to 11 percent). These shoppers were five times as likely to say they chose the brand purchased based on an advertisement. Deal shoppers are also likely to be higher volume purchasers — 78 percent who bought on deal reported buying five quarts or more, compared to only 53 percent who paid regular price.

The Art of the Deal
Special offers can be an effective tool for stimulating consumer purchases in these challenging economic times.  With an increasingly discount-oriented consumer, offering a deal can increase traffic at retail, encourage trial, or increase basket size.  Manufacturers of automotive products need to understand the particular drivers of purchase behavior in their categories and for their brands to determine whether to offer a deal and how effective dealing might be.  Collaborating with retail partners to evaluate the dynamics of each brand and category, manufacturers can craft effective promotions that appeal to their consumers’ sense of value and deliver positive results.

Learn More
Find out more about NPD's products and services. Contact Charlie Camaroto at
866-444-1411 (contactnpd@npd.com).