LCVP Label Research Program 2008 - Market Research

1. LowCVP Label – Research Programme2008ESA Market Research

2. Contents • Background • Methodology • Showroom Audit Results • Mystery Shopping Results • Summary

3. Background The Low Carbon Vehicle Partnership (LCVP) commissioned ESA to: • Monitor the levels of compliance of the LCVP label. • Assess the level of awareness and understanding that car dealership staff have of the fuel economy label and associated environmental issues. The LCVP label is displayed with new car models in dealer showrooms and indicates the fuel efficiency and emissions information about the car.

4. Research Objectives The objectives of the research are: • To identify what proportion of new car dealerships are correctly displaying the label • To be able to break this information down by car brand/manufacturer • To identify the best/ worst performing brands/ manufacturers. • To understand the causes of non-compliance • To assess the level of awareness and understanding of the label among dealer staff

5. Methodology The research was conducted in the following two ways: • Showroom Compliance – Showroom Audit • ESA’s researchers covertly visited the showroom and measured the profile and compliance on site of the LCVP Label • Member of Staff Knowledge – Mystery Shop • After the audit, ESA’s researchers would interact with a member of staff in order to assess their knowledge and understanding of the LCVP Label *Please note that all visits were covert.

6. Methodology Continued • Fieldwork Dates: Friday 20th – Tuesday 24th June 2008 • Sample: 384 New Car Showrooms throughout the UK.

7. Showroom Audit Results

8. Results – Showroom Audit Overall LCVP label compliance (across all dealerships selling new cars):

9. Overall Summary Trended topline compliance 2006-2008. Percentage of dealerships showing the LCVP Label:

10. Results – showroom audit 15 brands have achieved the target that 90% of vehicles should be labelled

11. Results – Showroom Audit Findings by Car Type – Small/ Medium/ Large/ Performance Cars: Total proportion of cars correctly labelled was 82%, up from 65% in 2007

12. Results – Showroom Audit Findings by Car Type – Small/ Medium/ Large/ Performance Cars:

13. Results – Showroom Audit Findings by Region:

14. Results – Showroom Audit Showroom Audit Performance by Brand:

15. Results – Showroom Audit Showroom Audit performance by Dealer Group: (see excel report for datasheet) Dealer Group Analysis: Strongest Performing Dealer Groups • 35 Dealer Groups - 100% ‘Good Performance’ Weakest Performing Dealer Groups • 5 Dealer Groups - 100% ‘Unacceptable Performance’

16. Showroom Audit – Summary Brand Analysis: Strongest Performing Brands • Jaguar - 100% ‘Good Performance’ • Land Rover - 100% ‘Good Performance’ • Lexus – 100% ‘Good Performance’ • Mitsubishi – 100% ‘Good Performance’ Weakest Performing Brands • One brand – 80% ‘Unacceptable Performance’ • Two brands – 75% ‘Unacceptable Performance’

17. Mystery Shopping Results

18. Communicating Benefits of Fuel Economy Staff members were more likely to mention Financial Savings than the Label or Climate Change:

19. Employing Fuel Economy in the Sale The table below shows Top performers by Brand for Q10. This table is based on unprompted and extensive use of the LCVP label.

20. Employing Fuel Economy in the Sale Q10. Employing Fuel Economy in the Sale: RESULTS BY BRAND Areas For Improvement • 15 brands had non compliance with regards the unprompted and extensive use of the LCVP label. • One brand had 80% of sites with no knowledge of the label or subject matter. • Second worst response was a brand for which 60% of dealerships had no knowledge of the label or subject matter.

21. Employing Fuel Economy in the Sale The table below shows the top performers by Dealer Group for Q10. This is based on unprompted and extensive use of the LCVP label:

22. Employing Fuel Economy in the Sale Q10. Employing Fuel Economy in the Sale: RESULTS BY DEALER GROUP Areas for improvement • 50 Dealer Groups had 0% compliance with regards the unprompted and extensive use of the LCVP label (see below) • 4 Dealer Groups had no knowledge of the label or subject matter.

23. Quality of the Sales Staff Knowledge The table below shows the overall analysis with regards knowledge of the LCVP Label at Q11: *Note: This is a multi code question.

24. Quality of the Sales Staff Knowledge The table below shows the overall analysis with regards knowledge of the LCVP Label at Q12: *Note: This is a multi code question.

25. Quality of the Sales Staff Knowledge The table below shows the overall analysis with regards knowledge of the LCVP Label at Q13: *Note: This is a multi code question.

26. Quality of the Sales Staff Knowledge The table below shows the overall analysis with regards knowledge of the LCVP Label at Q14: *Note: This is a multi code question.

27. Mystery Shopping Summary Based upon overall performance in displaying the label, knowledge and utilisation of the label the best performers were. Brand Analysis - Strongest Performing Brand(s) – Jaguar, Lexus, Mitsubishi Dealer Group Analysis - Strongest Performing Dealer Group – Inchcape Retail Ltd

28. Overall Summary Top Performing Dealerships The following all achieved 100% in the ‘Overall Dealership Score’:

29. LCVP Label – Research Programme2008ESA Market Research