Buying cars online: the adoption of the web for high-involvement, high-cost purchases

This research explores the adoption of the Web throughout the buying process within high-value, high-involvement product categories (the car sector). Diffusion of innovations (Rogers, 1983) and innovation resistance Ram and Sheth (1989) theories are utilised and found to be useful. The research is exploratory, based on eight qualitative, semi-structured individual interviews with potential car buyers. Findings indicate that there is resistance to adopting online car purchase overall, but relative advantage is recognised at the early, information seeking stages. Consumers use the Web to improve the balance of power between themselves and car salespeople. Innovation resistance during later stages, result from the need for personal experience of the product prior to purchase, ie test driving, as well as the uncertainty regarding after-sales support. Further resistance comes from a reluctance to give up the social aspects of car buying and a perceived inability to negotiate with websites. It is suggested that organisations operating in these markets should focus Web activities on information provision, or opt for a hybrid strategy using both online and offline channels.