p–ISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 7 July 2024 http://jist.publikasiindonesia.id/
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3470
Digital Car Showroom Business Strategy in the Automotive
Industry: Its Impact on Consumer Behavior in PT. Carro
Indonesia
Muhammad Fahmi Fahrurrodzi
1*
, Raden Aswin Rahadi
2
Institut Teknologi Bandung, Indonesia
Email:
muhammad_fahrurrodz[email protected]
1*
, [email protected]
2
*Correspondence
ABSTRACT
Keywords: digital car
showroom, adoption
factors, hierarchical
process analytics, business
strategy, online services.
This study aims to identify consumer behavior towards the
development of business models carried out by showrooms
and dealers, especially Carro Indonesia which is based on
digital startups, and create a strategic position to gain a
competitive advantage in the car buying and selling industry.
To analyze the environmental factors of this business
externally using PESTEL and Porter's 5 strengths, then
internal analysis through VRIO and SWOT. This research
method uses qualitative and quantitative methods, with data
collection conducted online and offline, using in-depth
interviews and questionnaires. Data analysis was conducted
using content analysis and Analytical Hierarchy (AHP)
survey process. As for determining critical adoption factors
for consumer behavior in buying a car by doing 4 criteria and
15 sub-criteria. AHP is a methodical framework that
establishes a hierarchical structure with interdependent
layers, analyzes the weights of various aspects, and evaluates
potential actions with regard to existing structures. AHP has
been used to prevent contradictory situations in research. As
a result, interview data must be presented in quantitative
form, i.e. how AHP ensures consistency of its findings
because statements in qualitative interviews can be
weighted. Then from the results of this study, each
stakeholder can use this research as a basis for decision
making to determine the company's steps to increase the
level of adoption of services that are used as company
products that are in accordance with the car buying and
selling market.
Introduction
Motorized vehicles are one of the things that cannot be separated from community
activities in a country (Samson, Mehta, & Chandani, 2014). Especially in Indonesia,
Personal transportation is a basic need for everyone who has activities outside the home,
not only for flexibility in using it but also for comfort and safety in traveling compared to
Digital Car Showroom Business Strategy in the Automotive Industry: Its Impact on Consumer
Behavior in PT. Carro Indonesia
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public transportation (Veza & Hernuning, 2020). The number of vehicle owners in each
region of the country also changes over time. The number increases every day in several
areas. The continued emergence of new products the national automotive market offers
supports this. Based on vehicle data per island published on the page korlantas.polri.go.id,
Tuesday (4/10/2022), total vehicle ownership in Indonesia is 150,786,747 units, including
private car users with a total of 20,099,273 units and motorbikes being The type of vehicle
most widely used by Indonesian people with a user figure of 123,377,429 units
(Cymbidiana, 2012).
Private vehicles are still the prima donna in carrying out the activities of Indonesian
society, especially in big cities like Jakarta (Zolkifly, Yusof, & Baharom, 2017). Private
transportation mobility in Jakarta is very high because public transportation is still unable
to cover several areas, and its quality still needs to be improved. This is reflected in BPS
data, which shows that private transportation users in Jakarta continue to increase every
year.
Figure I
Data on private transportation users in Jakarta (Source: DKI Jakarta Central Statistics
Agency, 2022)
This data explains the growth of private transportation, primarily cars, in DKI
Jakarta, which has increased significantly from 2019 to 2021, around 800,000 units
(Qazzafi, 2019). This indicates that cars have become part of the commodities Indonesian
people need, especially Jakarta people, for their activities. Even though several
regulations have been designed to suppress the rapid growth of private vehicles, the data
shows that it continues to increase (Iswandi, Siwi, & Lianto, 2022).
The increase in private vehicle growth data in Indonesia can always be connected
to the contribution of the national automotive market, which continues to encourage the
movement of the automotive business in Indonesia. Both new and used cars are among
the objects that turn the wheels of the national automotive business (Widitya, Yuwono,
& Saleh, 2024). Moreover, with today's sophistication, many entrepreneurs in this field
have modified their marketing methods to stimulate their business. One example is by
adopting an online system (Saragi, Harianja, Purba, Khaira, & Siregar, 2024).
Online shops have been busy lately due to the rise of marketplace startups such as
Shopee, Tokopedia, and Bukalapak in the Indonesian needs market. However, this online
shop is not only used by retailers in the fashion and F&B sectors. At this time, many
entrepreneurs in the automotive sector have started to convert their business to online.
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For example, several conventional car showrooms have started to shift the way they sell
their cars online, and recently, there have even been digital car showrooms, one of which
is Carro.id or Carro Indonesia, which is startup-based car buying and selling. They have
a showroom, marketplace, and mobile apps/web to market new and second-hand cars
according to their preferences (Mariati, Wahyuni, & Wirayuda, 2023). This provides
comfort and security for customers in choosing their dream car with a complete package
without spending time going around conventional dealers.
With the shifting market that occurs when buying a car using the conventional
method, especially visiting showrooms and dealers directly through self-check, now with
just one hand and the car already on the spot, it can change consumer preferences in
choosing a car because they get easier access to information about the destination car.
This change can change consumer purchasing habits and influence the number of car
purchases in Indonesia.
As a newcomer to the Indonesian automotive industry with a new business model,
digital car showrooms like Carro must adapt to existing potential, maximize the business
model, and maintain their competitiveness. Competition in the automotive industry,
especially cars in Indonesia, has been very tight in recent years, and digital business
disruption must be used as momentum to better understand customer preferences and
behavior to win the market.
Company Profile
Carro is an online car marketplace company in Southeast Asia designed to simplify
car transactions using artificial intelligence technology. The company provides complete
services for all aspects of car ownership and uses AI-powered technology to transform
the buying and selling experience by offering a trustworthy and transparent experience.
Carro challenges the traditional way of buying and selling cars through proprietary
pricing algorithms and AI-powered capabilities.
They provide a wide range of services across the car ownership ecosystem,
including in-house car financing solutions, innovative car insurance products, flexible car
ownership experiences, and after-sales car maintenance, servicing, and repair services.
Carro has pioneered innovative services such as Singapore's first contactless online car
purchasing service, the first car rental subscription service, and behavior and usage-based
car insurance solutions across the region.
Vision
"We aim to lead the automotive and mobility solutions market by providing better
experiences, democratizing information, and advancing the automotive industry."
Mission
"To be the marketplace of choice for all automotive needs, providing customers with a
trustworthy alternative for increased mobility. We will catalyze change in the automotive
ecosystem by driving higher standards, reshaping the industry with our solutions, and
empowering everyone with the experience they deserve."
The digital era has brought many changes to the business world, including online-
based businesses. The online business model is one of the fastest-growing forms of
Digital Car Showroom Business Strategy in the Automotive Industry: Its Impact on Consumer
Behavior in PT. Carro Indonesia
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business in the current digital era, especially after Covid-19. COVID-19 has affected the
way people carry out transactions, including online transactions. This has become
commonplace because there are many benefits to digitizing businesses. Following the
pandemic, online sales increased significantly and are expected to continue to increase.
This is caused by changes in consumer behavior, such as those who prefer to shop and do
business online to save time. The pandemic has triggered faster development of e-
commerce technology.
In the post-COVID-19 era, e-commerce technology is expected to continue to
develop and present innovations that can facilitate and improve the online shopping
experience, and the same applies to the automotive sector (Latif & Hasbi, 2021). Online
car sales continue to grow with technological advances and increasingly widespread
internet access. The availability of easy-to-use services and safe and reliable transactions
also influences the growth of online car sales. Data shows that in 2019, online car
purchases only contributed 4% of the total. Meanwhile, in 2020, as of July, online car
purchases had reached 43%. What is unique is that 71% of purchases were made via the
official website, according to the data shared on that occasion. Meanwhile, 22% of car
purchases were made via e-commerce (Detik Oto, 2020).
Research Methods
Data Collection
In research, data collection is crucial because it gathers evidence regarding the
problem being studied to obtain information. The data collection process must be carried
out correctly to use the results for future needs. A good data collection process also
requires careful planning in order to achieve the desired results effectively and efficiently.
This research will collect data using two methods: the qualitative method in the form of
1-on-1 in-depth interviews with 29 respondents and the qualitative method using
questionnaires to determine the most critical factors for consumers in buying a car in a
showroom or dealer. Then, secondary data will be collected using references from
published scientific works such as books, papers, journals, and previous research.
Qualitative Approach
What has been mentioned above is that in-depth interviews will be conducted with
correspondents using a one-on-one method in this research. In this interview, several
stakeholders will need to be asked for information, such as car buying and selling
entrepreneurs, consumers of dealers or showrooms, and car enthusiasts. And
policymakers. General people will be asked for opinions and included in secondary data.
The list of names of interview respondents is listed in Appendix Table A, and the list of
questions asked is listed in Appendix B. The participants from this research
correspondence were taken using the author's network and qualitative research sampling
to obtain information to support this research.
In the questions asked for this research material, there are approximately ten open
questions for correspondents to answer in one-on-one interviews to get all perspectives
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on the research phenomena given. After each interview was completed, the transcript was
quickly reviewed using content analysis and topic analysis.
Quantitative Approach
A quantitative approach is a research method that uses large numbers of numbers.
Starting with data collection and ending with data analysis. Meanwhile, research
techniques involve thoroughly examining all information to help discover patterns and
relationships between various factors, as well as objective evaluation of concepts. In this
case, several respondents were collected using a questionnaire distributed online. Then,
filtering can be carried out from the collected data. This numerical data is in the form of
user-selected adoption variables collected from qualitative data analysis and literature
review. This strategy can help uncover patterns and relationships between various
elements and test ideas objectively by applying factor calculations.
Research Methodology
This research approach involves collecting primary data directly, along with
secondary data. To obtain in-depth information regarding people's habits in selling cars
using digital methods in Indonesia, qualitative and quantitative research techniques were
used, with in-depth interviews and questionnaires with each service provider as primary
data. Secondary data will be collected using references from published works such as
books, papers, journals, and previous research.
Research Design
In Indonesia, buying and selling cars online has become something new in recent
years, with start-ups even emerging to manage sales of new and used cars to accommodate
the automotive market in Indonesia. Therefore, this research aims to determine how
consumers' buying habits keep up with the times. For example, in recent years, buying
and selling cars still uses conventional methods, and now everything is online. Apart from
that, to find facts about the development of the automotive business in Indonesia. The
design of this research will be explained with a chart.
Digital Car Showroom Business Strategy in the Automotive Industry: Its Impact on Consumer
Behavior in PT. Carro Indonesia
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Figure 2 Research Design
Results and Discussion
Qualitative Data Analysis
To obtain information in the form of qualitative data about people's habits in buying
cars, researchers interviewed several people who were considered to be representatives
of the problems being researched in this project. The purpose of this sampling is to find
out people's views on buying a car now, in addition to the widespread technological
developments occurring in the world, especially in Indonesia. Appendix 1 displays the
names in the list of respondents, then interviews were conducted online and offline with
12 questions that focused on the personal experiences of the respondents when deciding
to buy a vehicle in the form of a car. The results of these interviews are then examined to
create a summary of the findings based on the main conclusions from the user's
perspective.
Question 1
Have you ever had an experience bought a vehicle by your self or accompanied a
family member, relative or friend?
All respondents in this question answered that they had bought a car, whether for
themselves, their family, relatives or the company where they worked
Question 2
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What do you think about the car buying process in Indonesia with technological
developments on internet platforms?
Most respondents answered this was an excellent step forward in buying a car.
However, it must be seen from the consumer's perspective, even though the use of internet
platforms in car purchasing is considered very good because it provides cost efficiency
and diverse initial information, the provision of services and car buying and selling
transactions entirely using internet-based technology has not yet received full enthusiasm
from the public. Many people still use conventional methods, such as going directly to
the showroom to inspect their car and make direct transactions, because the public still
has relatively low trust in digital services, whether buying a new car or a used car.
Question 3
Does the existence of an advertising service provider support you in getting the
vehicle you want? Can you give an example of an advertisement that influenced your
decision to buy a car?
According to the findings obtained from interviews with respondents, service
providers are critical in connecting sellers and buyers. With this service provider, it
becomes a tool to help consumers provide an overview of the goods being sold.
Advertisements are one of the media services providers provide, so they can be seen freely
by people who need them.
The importance of advertising in influencing consumers in making decisions is
providing detailed information about the condition of the vehicle, price and payment
procedures according to consumer needs. Advertisements are also a comparison tool,
especially on YouTube and other online platforms, to make it easier for consumers to
compare one product with another, so they do not just focus on one item and have more
options.
Question 4
Before you buy a car, would you prefer to look at car catalogs on the internet first
or visit the showroom in person?
Currently, with the development of technology on the internet, it can be easily
accessed by anyone using a cellphone, most people now start their car buying approach
by looking at car catalogs on the internet as an efficient step to save time and money. This
catalog is an initial consideration before choosing the car you want. Despite looking at
online catalogs, the preference remains for inspections and direct visits to showrooms
because more people still believe in coming and seeing the physical goods before making
a transaction. After all, cars are not cheap, so people must be conscientious when buying
them.
Question 5
What do you think about buying a car conventionally way (visiting the showroom
in person)?
Most respondents answered that looking at catalogs or online platforms provides
excellent and relevant initial information, but buying a car directly from the showroom
has its own experience. Apart from the many offers provided for home service services,
Digital Car Showroom Business Strategy in the Automotive Industry: Its Impact on Consumer
Behavior in PT. Carro Indonesia
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direct service to the showroom will be more convenient because consumers can identify
the car they want to buy. Then, they have the opportunity to consult directly with the
seller and negotiate prices directly. This is still the best choice for automotive consumers
in Indonesia despite the widespread provision of digital-based services.
Question 6
In your opinion, what factors are important in buying a car using the conventional
method?
When considering purchasing a vehicle, the main factors that were considered
necessary as answered by most respondents were the track record of the car seller or
showroom as well as the owner, such as honesty in terms of product information such as
the pluses and minuses of vehicles for used cars and reviews from many buyers. Apart
from that, the price and quality of the vehicle are also crucial aspects to consider when
buying a vehicle. The main factors in purchasing decisions are the certainty of the product
displayed, such as the condition of the engine, the price as advertised, the appearance,
and the features and technology available in the car. What is no less important is customer
service, because buying a vehicle is not a cheap price, the customer's confidence in buying
a car in a showroom is a determining factor in identifying how satisfied the customer is
with the existing service.
Question 7
What do you think about the Digital Car Showrooms that are now starting to appear
(such as OLX autos, Carro.id, Carsome etc.)?
The average opinion of the respondents is that the emergence of digital car
showrooms is changing the automotive business landscape to be more inclusive, both
from the selling and purchasing side, in line with current technological advances.
Compared with consumers' opinions, having a digital car showroom can make it easier to
get a car that suits the consumer's wishes. Apart from that, ease of access and openness
of detailed vehicle information will be input for consumers when comparing and deciding
to choose the car they want. Then, with digitalization like this, security and comfort,
which affect efficiency, become a breakthrough that really pampers consumers when
deciding to buy a vehicle.
Question 8
What do you think about online car buying services such as home service?
A platform or facility that is very efficient in pampering customers and potential
buyers, providing added value through convenience and comfort. This efficiency benefits
those with limited free time, allowing consumers to obtain service, negotiate, and ask
questions in depth without having to go to the showroom.
Question 9
Which do you prefer, buying a car conventionally (coming to the showroom) or
online (Online Service), Why?
Most respondents thought that, even though there is help from checking catalogs
on online platforms in finding a suitable vehicle before buying, the low level of trust in
online services such as home service means that most consumers still choose transactions
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with offline services or conventional methods. This choice is based on the preference to
come directly to the showroom, check the condition of the unit, and get detailed
information directly. The decision between online or conventional transactions depends
on the case and individual needs. However, better prices and quality online are attractive,
but if you use conventional methods of offering a car that suits your needs, it can become
a top priority.
Question 10
How do you see the difference between buying a car online and through a
conventional showroom? In your opinion, what are the advantages and disadvantages of
each method (home service and coming directly to the showroom)?
Buying a car online using a home service has several advantages, including
convenience because it is delivered directly to the place we want and time efficiency.
However, there are still challenges, namely limited direct interaction with sellers and
limitations in trying other vehicle options. As for buying a vehicle conventionally at the
showroom, there are many options and you can try many of the physical atmospheres of
the vehicle directly so that you have a broad user experience.
Question 11
Can you explain your experience in buying a car? What factors are most important
in your decision-making process to buy a car?
In this case, all respondents said that many points in car purchasing decisions were
made after paying attention to the details of the vehicle to be purchased and comparing
them with the set price. Factors that are taken into consideration include the suitability of
the price to the condition and details of the unit, suitability of the specifications sought,
the presence of many features on the car, bonuses, discounts, price negotiations, and the
vehicle's physical condition. The purchase decision is then determined by the vehicle's
condition, a price appropriate or lower than the market price, and the seller's
trustworthiness/track record.
Question 12
Looking to the future, how do you envision the evolution of car buying and selling?
What changes or improvements would you like to see?
The respondents' future hope as consumers is that the guarantee provided will
become the minimum standard for all existing car showrooms so that consumer protection
is guaranteed, whether buying a new car or a used car, because buying a vehicle requires
quite a lot of money. Digital car showrooms are a good change for the automotive world
because, along with technology development, offline showrooms should shift to business
management to make it easier for consumers to find their dream car.
Quantitative Data Analysis
Respondents fill out a questionnaire and submit responses to each question. A list
of responses and questions can be seen in Attachments 3 and 4. The respondents'
questionnaire findings were then filtered in such a way. Of the 40 respondents who filled
out the questionnaire, only 29 respondents had their data validated. The survey findings
show that a person's behavior in buying a vehicle, in this case, is related to digital car
Digital Car Showroom Business Strategy in the Automotive Industry: Its Impact on Consumer
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showrooms, which are becoming popular due to the development of mobile and
application-based technology using an analytical hierarchy with four main criteria and 15
sub-criteria. After that, the results of quantitative data collection are displayed as follows:
Figure 3.
1 (Left) Respondent Profile by Sex
2 (Left) Respondent Profile by Sex
The majority of those filling out the questionnaire for this research, if seen from the
data table shown in Figure IV.1, are men, 89% with a total of 26 people, considering that
the focus of this research is dealing with the automotive world so that it is more familiar
to men. Meanwhile, only three women were willing to fill out this questionnaire with a
percentage of 10%. This research was distributed to respondents in several age segments,
namely from age 20 to over 25. Considering that most Indonesian people at this age, on
average, already have experience in buying a vehicle, either for themselves or for their
family and relatives. If you look at the data results shown in Figure IV.2, of the 29
respondents who filled out the questionnaire, only 21% were aged 20-25 years, namely
six people, and those over 25 years old filled the remaining 79%. The researchers aimed
to take samples from 20-year-olds because they wanted to know the results of Gen Z
people looking at the phenomenon in this research.
Figure 4
3 (Left) Respondent Profile by Domicile
4 (Right) Respondent Profile by Occupation
Next, domicile classification was done to determine the respondents' origin. The
results of filling out the questionnaire show that on average 92% of the people
participating in this research live in Jabodetabek, 4% outside Jabodetabek and the
remaining 4% currently live outside Java. Then, to indicate that this research was properly
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on target, the researchers focused only on people with jobs. Hence, people with jobs were
more easily related to automotive matters. The occupation table above shows that most
respondents are private employers with 57%, 21% civil servants, 11% teachers, 7%
entrepreneurs, and the remaining 4% freelancers. Almost all those who work already have
vehicles and use them as daily drivers, both for work and their family's personal matters.
This has potential for the automotive market because private vehicles have become
essential to support work and family needs.
Figure 5.
5 Respondent Profile by Automotive Stakeholder
In the automotive world, those who own vehicles only use the vehicle as part of
their daily needs. However, in this study, table IV.5 shows the results of the 29
respondents who filled out the questionnaire, only around 72%, namely 20 people, bought
a vehicle and only used it as a daily driver for their daily needs, and the remaining 17%
bought a vehicle. Vehicles in the form of cars are only used as a hobby because they are
interested in the automotive world. Apart from that, six respondents out of 29 people with
a hobby in the automotive sector usually have a community and do not just make one or
two transactions to buy and sell cars. Then, in Table IV.5, it is also shown that several
respondents to this research have businesses in this sector, namely 11%. With the
percentage figures shown, the comparison between entrepreneurs in this sector is still
very far from those who need cars. Therefore, the automotive sector business is still very
competitive.
Digital Car Showroom Business Strategy in the Automotive Industry: Its Impact on Consumer
Behavior in PT. Carro Indonesia
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Figure 6.
6 Respondent Profile by Number of Respondents Related to Car Purchase
In this research, researchers need to know whether respondents who fill out this
questionnaire when they own or buy a vehicle in the form of a car are involved or not in
the initial purchase of a car and until the final process of car ownership. If you look at the
data in Table IV.6 above, the average person who filled in for this research answered that
they were involved in purchasing a car from the initial process of searching for a car that
suits their wants and needs to the process of owning the car, so it can be seen that 93% of
them were involved. Of 29 people who know the process. However, some are directly
handed over to dealers or showrooms or trusted people to carry out the process from the
start of purchasing a car to car ownership, this is recorded in the Table above at 7%.
Hierarchical Process Analysis
In this case, the researcher used AHP to identify the factors that influence consumer
decisions to buy a car based on stakeholders' against existing criteria. In addition, the
researcher found consumer preferences and understood market segmentation to create a
business strategy suitable for companies in this industry.
Figure 7
Analytical Hierarchy Process Model
Criteria: The limits set for each option viz
1. Automotive Market
2. Service
3. Price
4. Vehicle Quality
Sub-Criteria: The options available in this problem, in this case there are 15 sub-criteria
that have been determined based on previously determined criteria, including:
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Table 1
1 Sub-Criteria for Decision Making Factors
Sub-
Criteria
Information
Sub-Criteria 1 (Automotive Market)
1
Online Showroom
2
Offline Showroom
3
Conventional Showroom
4
Digital Showroom
Sub-Criteria 2 (Service)
5
Home Service
6
Live Service in the Showroom (Live Service)
7
Digital Service
Sub-Criteria 3 (Price)
8
Low Price
9
High Price
10
As Per Market Price (Market Price)
11
As Needed Price (Needed Price)
Sub-Kriteria 4 (Vehicle Quality)
12
Advanced Technology (Advanced Tech)
13
Durable Engines
14
Fuel-Efficient
15
Vehicle Appearance
AHP data analysis was carried out using the Super Decision application on the
highest average value taken. The next step is to create a hierarchical structure that begins
with the aim of determining car purchasing factors according to the predetermined AHP
model. The AHP structure designed with Super Decision software can be seen in the
following figure.
Digital Car Showroom Business Strategy in the Automotive Industry: Its Impact on Consumer
Behavior in PT. Carro Indonesia
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3483
Figure 8
12 Hierarchical Model in Superdecision Software
The results of calculating the hierarchy of components for each criterion and sub-
criteria were obtained from the respondents' answers given in the questionnaire. This
application uses the Superdecision algorithm as the basis for data processing. The
numbers resulting from data processing are displayed by the software.
Business Solution
Business solutions are created using the 5W+1H process which includes examining
the company's position and surrounding environment, conducting interviews with
stakeholders, and identifying adoption factors using the AHP approach.
Table 2
Carro Indonesia Influencing Development Factors
Arena
Description
What
Focus on pre- and post-purchase vehicles with the development of the Digital
Car Showroom, both website applications and social media. Improving service
by adapting to current developments using conventional methods in showrooms,
online service and home service.
Who
Generally people who have high mobility in activities, workers, students,
parents, automotive enthusiasts, people who have businesses in the vehicle
sector.
Where
Places that have high mobility for private vehicles, especially the cities of
Jakarta, Bekasi, Tangerang, Bogor and Banten. As well as, metropolitan cities
and economic support cities
When
1 Quarter of 2025
Why
1. You can easily find your dream car, both new and used, according to
your needs
2. You can get good service via home service, conventional service and
online service
3. There are various guarantees provided to consumers so as to prevent
consumer fear when buying a vehicle in the form of a car
How
Invest in technology, develop service in the showroom both conventionally,
online and home service. Partnership with 3rd parties in car buying and selling
matters, training employees, educating potential users and strengthening
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relationships with stakeholders.
1. What Analysis
In this case, Carro Indonesia focuses on before and after purchasing a car, with
changes in consumer behavior in purchasing an item, previously using the conventional
method of coming directly to the car showroom, now using various methods, whether
using online or home service. Therefore, Carro Indonesia tries to meet consumer needs
by providing these three methods. As for the conventional method, this showroom
provides dealers in several city branches, so consumers can easily visit and get user
experience directly at the showroom. Meanwhile, with online services, consumers can
easily find their dream car before buying a car by searching on mobile applications,
websites, or social media. Apart from that, you can interact directly and easily using
several platforms provided by Carro Indonesia. Then, with online service, consumers can
choose to get their car by coming to the showroom or with home service through the
Carro Indonesia virtual transaction, which is delivered directly to their doorstep.
The innovation developed by Carro Indonesia to meet consumers' needs in getting
the perfect dream car is a commitment to becoming a company ranked at the top of the
automotive industry.
2. Who Analysis
Basically, the automotive market can be accessed easily by everyone with various
backgrounds, because vehicles have now become a priority for most people. However,
most of the target markets reached by car showrooms according to this research are:
a. Family
The family factor is one of the main reasons why people buy a private vehicle in
the form of a car, the reason is that if there is high mobility it becomes very crucial for
the comfort and safety of family members.
b. Employee
It has become very common for workers to have a private vehicle, a car, because it
is not only a tool for daily mobility but can also become a social status among their
environment. Apart from that, having a private vehicle in the form of a car can be a factor
in making work time efficient when the intensity is high
c. Automotive enthusiast
The most interesting thing is people whose hobbies are in the automotive circle.
Because of their interest and love for automotive, they can get several benefits such as
community and networking, investment and collection, technology export and
innovation, the last thing is something that is often done by people who have a hobby in
this sector, especially modification and customization.
d. Entrepreneur in the field of buying and selling cars
Entrepreneurs in this sector clearly need a lot of cars, because cars are the
merchandise they sell.
Digital Car Showroom Business Strategy in the Automotive Industry: Its Impact on Consumer
Behavior in PT. Carro Indonesia
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3485
4. Where Analysis
The focus of this vehicle business is usually in densely populated cities with high
intensity, metropolitan cities and economic buffer cities such as JABODETABEK.
Because having lots of vehicles there can move the wheels of the economy quickly. If
you look at it now, villages have also become a focus for the development of the
automotive business, but with different vehicle segmentation compared to cities.
5. When Analysis
This can be immediately formulated and formalized in the first quarter of 2025,
because there is still a lot that needs to be improved to become a perfect digital car
showroom amidst the onslaught of various technological developments and competitors.
The target at this time becomes capital so that things that are lacking in this company can
be developed even better to increase the market which still has many opportunities in
Indonesia.
6. Why Analysis
In its development to become a sustainable digital car showroom, this research
provides the best solution for showrooms based on several criteria using AHP. If we look
at this research, the initial basis is consumers' assessment of current buying and selling
developments. Therefore, this is an important note for the progress of digital car
showrooms in Indonesia with very large market segmentation and many potential
consumer opportunities.
The development of technology is the basis for consumers to get information
according to their needs. Therefore, they want to easily find their dream car, both new
and used, according to their needs. Apart from that, you can get good service using
conventional service, home service and online service. Then you get various kinds of
guarantees provided to consumers, thus preventing consumer fear when buying a vehicle
in the form of a car.
7. How Analysis
If Carro Indonesia wants to become a digital car show that is sustainable in
Indonesia and gets a large market, there are several ways, especially
a. Invest in technology
Because Carro Indonesia is based on digital shworoom methods, they should invest
in technology both internally and externally so that what they serve to customers is
delivered well.
b. Service development
This research focuses on the role of consumers in buying and selling cars, therefore
service is very crucial in getting consumers, both conventionally and online.
c. Partnership with 3rd parties in car buying and selling matters
To be able to strengthen the network in getting consumers in all segments, these
alternatives can be tried, such as verification from a well-known inspector, making one
of the automotive influencers a brand ambassador and embracing the automotive
community.
Muhammad Fahmi Fahrurrodzi, Raden Aswin Rahadi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3486
d. Training employees, educating potential users and strengthening relationships with
stakeholders are the things that are least taken seriously in a large company. In fact, if
the ecosystem has good basic things, then everything will be good too.
Vehicle Quality Preference
Nowadays, many cars have various advantages. However, in this research, most of
the respondents, who are consumers who already own cars, prefer cars with quality
technology that meets their needs. We know that the higher the quality of the car you get,
the higher the price. Factors that consumers choose to use in cars with sophisticated
technology include excellent safety when driving. Besides that, comfort is an essential
factor in choosing a car.
Then, fuel efficiency is most taken into account because this specification indicates
whether consumers are interested in a car whose fuel does not meet their needs. The last
thing is that if you choose a car with advanced technological quality, the resale price will
not fall too low because the technology will still be used well in the future.
Implementation Plan
In this sub-chapter, the recommended implementation plan is outlined so that Carro
Indonesia can implement it according to the adoption factors, data analysis, and business
solutions that have been found. This aims to carry out a business strategy that can enable
the company to continue running well. The following is a business implementation plan.
PIC
2024
2025
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
BoM
CMO
CMO
CMO
CEO
CEO
CMO
Digital Car Showroom Business Strategy in the Automotive Industry: Its Impact on Consumer
Behavior in PT. Carro Indonesia
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3487
HR
COO
Notes:
BoM : Board of Management
CEO : Chief Executive Officer
CMO : Chief Marketing Officer
COO : Chief Operating Officer
HR : Human Resource
Conclusion
From this research, findings indicate future business strategies for digital car
showrooms such as Carro Indonesia. This requires a dynamic business strategy in
accordance with the research questions and objectives of this research. Based on the
analysis in the previous chapters, the main conclusions can be stated as follows:
Research Question 1: What is the situation of the car buying and selling business in
Indonesia?
The buying and selling business situation is developing very rapidly, especially
with the existence of technology in the form of an online base, which gives consumers
the space to buy anything efficiently. Starting from the COVID-19 pandemic, buying and
selling using the digital market began to spread. This has also impacted car sales, many
consumers and business actors in this field have innovated to shift their business models
to digital, starting from social media, web, mobile applications, and buying and selling
platforms.
This is, to achieve continuity between sellers and buyers in this business line.
Currently, factors that influence the car buying and selling business are growing rapidly,
including the rapid dissemination of information, government policies, changes in
lifestyle, and digitalization.
What is the behavior of car consumers in Indonesia with the current advances in buying
and selling technology?
With several changes to the progress of buying and selling cars, it is becoming
easier for consumers to access the automotive world because the openness of information
makes them educated about this matter. Apart from that, efficiency in finding and getting
a car is also more accessible, safer and more comfortable. Technological innovation from
entrepreneurs in the automotive sector is increasingly widespread because it aims to
attract target consumers. Then, with the various service products provided by business
actors, such as conventional, home, and digital services in this business line, consumers
have more choices when looking for their dream car.
Muhammad Fahmi Fahrurrodzi, Raden Aswin Rahadi
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3488
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