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  • 2012 Thailand Initial Quality Study (IQS)

    Owners of New Compact Car Models Report More Initial Quality Problems Than Owners in Other Vehicle Segments

    1970-01-01

    jdp-root

    BANGKOK: 3 December 2012 — Overall new-vehicle quality of compact cars in Thailand is lower than that of other vehicle segments, according to the JD Power Asia Pacific 2012 Thailand Initial Quality StudySM (IQS) released today.

    The study, which measures problems owners experience with their new vehicle during the first two to six months of ownership, examines more than 200 problem symptoms covering eight categories. These categories, listed in order of frequency of reported problems, include vehicle exterior; engine and transmission; driving experience; HVAC; audio, entertainment and navigation; vehicle interior; seats; and features, controls and displays. Overall quality performance is determined by the problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

    Overall initial quality averages 116 PP100 in 2012, compared with 113 PP100 in 2011. Initial quality in the compact car segment, which includes hatchbacks produced under the government-sponsored “eco-car” program1, averages 132 PP100, the highest number of problems reported among all vehicle segments examined in the study.

    “Small hatchback models are gaining popularity in Thailand, boosted by the success of the government-sponsored eco-car program and first-time new-buyer scheme2 ,” said Loic Pean, senior manager at JD Power Asia Pacific, Singapore. “Given the growing sales of compact cars, it is important for manufacturers to deliver the same levels of build quality offered in the other vehicle segments. It is, therefore, essential to quickly identify and fix the core quality issues reported by new owners of small hatchbacks.”

    The problems that owners of small hatchbacks most often report include excessive wind noise and noisy brakes,  followed by problems related to the air conditioning (fan/ blower excessive noise and AC doesn’t get cold enough fast enough) and transmission system (abnormal transmission noises).

    The study finds that when a salesperson explains how to operate features in the vehicle before or at the time of purchase, the number of initial quality problems reported by new-vehicle owners is lower than when such explanation is not provided. On average, owners who receive an explanation of their vehicle features experience 114 PP100, while those who do not receive an explanation experience an average of 165 PP100–a 45 percent increase in problems.

    “Salespeople play an important role in managing vehicle owner expectations and reducing owner perceptions of quality issues during the buying process, particularly for first-time buyers,” said Pean. “The test drive provides a good opportunity to demonstrate the key features and innovations of the vehicle, which offers buyers a deeper understanding of the vehicle design and capabilities. It also provides a key opportunity for salespeople to address buyers’ queries and clarify normal and abnormal vehicle behavior.”

    Model Results by Segment

    In the compact car segment, the Honda Brio ranks highest with 116 PP100. Suzuki Swift Eco ranks second (118 PP100), followed by Nissan March (129 PP100).

    In the entry midsize car segment, the Honda Jazz ranks highest with 87 PP100. The Mazda2 Sports (95 PP100) and the Toyota Vios (98 PP100) follow in the segment rankings.

    In the midsize car segment, the Toyota Prius ranks highest with 65 PP100. The Toyota Prius is followed in the segment rankings by the Honda Civic (98 PP100) and the Toyota Corolla Altis (105 PP100).

    In the SUV segment, the Toyota Fortuner ranks highest with 87 PP100. The Chevrolet Captiva (121 PP100) ranks second, while the Mitsubishi Pajero Sport (140 PP100) ranks third.

    In the single cab pickup segment, the Isuzu D-Max Spark ranks highest with 86 PP100. The Mitsubishi Triton S-Cab (103 PP100) ranks second in the segment, followed by the Toyota Hilux Vigo Champ S-Cab (116 PP100).

    In the extended cab pickup segment, the Toyota Hilux Vigo Champ Prerunner Smart Cab ranks highest for a fourth consecutive year, with 89 PP100. Following in the segment rankings are the Mitsubishi Triton X-Cab (116 PP100) and the Nissan Frontier Navara Calibre X-Cab (117 PP100).

    In the double cab pickup segment, the Toyota Hilux Vigo Champ Prerunner ranks highest with 96 PP100. The Isuzu D-Max Cab-4/ V-Cross 4 door ranks second with 101 PP100, while the Toyota Hilux Vigo Champ 
    D-Cab ranks third with 119 PP100.

    Additional Study Findings

    Problems, particularly those experienced during the initial ownership period, lead not only to increased owner dissatisfaction, but also to lower levels of customer loyalty and advocacy. Owners who experience an initial quality problem are much less likely to repurchase or recommend the same make, compared with those who do not experience an initial quality problem. Among owners who indicate that they experienced no problems with their new vehicle, 67 percent say they “definitely would” repurchase the same make, compared with 
    55 percent among those who experienced one or more problems.

    The 2012 Thailand Initial Quality Study (IQS) is based on evaluations from 4,674 owners who purchased their new vehicle between October 2011 and July 2012. The study covers 13 different makes that include 77 different passenger car, pickup truck and utility vehicle models. The study was fielded between April and September 2012.

    1 The Thailand Board of Investment in October 2009 implemented a program to offer incentives to automakers for integrated car assembly and key parts manufacturing projects. In order to qualify for the program, vehicles built must meet certain engine size, fuel-efficiency and emission requirements and production criteria.

    2 A Thailand government program which provides tax refunds for first-time car buyers. Launched in September 2011, the program offers a maximum 100,000 Baht excise tax rebate to first-time car buyers. 

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    About JD Power and Associates

    Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

    Media Relations Contacts:

    XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

    John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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  • 2012 Independent Travel Website Satisfaction Report

    Pricing Is the Strongest Driver of Satisfaction with Independent Travel Websites

    1970-01-01

    jdp-root

    WESTLAKE VILLAGE, Calif.: 30 November 2012 — Satisfaction with the price paid on a travel website drives high overall satisfaction among consumers with their overall website experience, according to the JD Power and Associates 2012 Independent Travel Website Satisfaction ReportSM released today.

    “Reinforcing the correlation between overall satisfaction and satisfaction with pricing, the highest-ranked travel websites in overall satisfaction all have significantly higher price satisfaction scores than the report average,” said Sara Wong Hilton, director at JD Power and Associates. “While other factors certainly affect overall satisfaction, 75 percent of online travel website consumers indicate price as a primary purchase reason, so there is no denying price greatly impacts the overall website experience.”

    The report measures consumers’ overall satisfaction with their purchase experience on an independent travel website, which consists of a vacation package, flight, hotel or rental car. The report examines seven factors (listed in order of importance): competitiveness of pricing; usefulness of information; availability of booking/reservation options; website/online store; ease of booking/reserving; competitiveness of sales and promotions; and contact with customer service. The relative importance of customer service in driving overall satisfaction is low, as only 29 percent of online consumers indicate that they contacted customer service; however, among those who contacted customer service, this becomes the most important factor. Overall satisfaction with independent travel websites averages 798 (on a 1,000-point scale).

    The report finds that consumers visiting independent travel websites most often book flight reservations (61%), followed by hotels (57%), rental cars (28%) and vacation packages (16%). Among these options, satisfaction is highest among consumers who booked a vacation package (831). Notably, consumers who purchase a vacation package are the most active travel website shoppers, visiting their primary travel website an average of 43 times annually and completing a purchase an average of seven times, significantly more than the report average of 20 visits and four purchases per year. Satisfaction is second highest among consumers who book a rental car, who are also the second-most-active group of shoppers, visiting their primary travel website an average of 32 times and completing a purchase an average of six times annually.

    Younger independent travel website consumers (18-24 years of age) value recommendations from others significantly more than do those in any other age group1 and significantly more than the report average. More than one-fourth (27%) of these younger consumers say they selected their travel website due to a recommendation from family, friend or colleague, compared with the report average of 16 percent. Additionally, nearly one-third (32%) of younger consumers say they selected their travel website because of positive reviews of the brand, compared with the report average of 20 percent. Conversely, 81 percent of consumers between the ages of 45 and 54 indicate they selected their primary travel website for the competitiveness of its pricing, significantly higher than the report average of 75 percent and higher than for any other age group. 

    Independent Travel Website Satisfaction Rankings

    Booking.com ranks highest with a score of 816, performing particularly well in availability of booking/reservation options; ease of booking/reserving; and pricing. Following Booking.com in the rankings are Hotwire.com (813) and Priceline.com (808).

    The 2012 Independent Travel Website Satisfaction Report is based on responses from 2,009 consumers who made an online purchase from an independent travel website in the past 12 months.  Invitations to participate in the online survey were sent via email to online panelists in October and November 2012.  JD Power and Associates received completed questionnaires through November 16, 2012.

    [1] Age groups included in this report are 18-24; 25-34; 35-44; 45-54; and 55+

    About JD Power and Associates

    Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

    Media Relations Contacts:

    Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
    Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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  • 2012 India Initial Quality Study (IQS)

    New-Vehicle Owners in India Report Significantly Fewer Fuel Consumption-Related Problems During the Past Five Years

    1970-01-01

    jdp-root

    SINGAPORE: 30 November 2012 — While the incidence of initial quality problems reported by new-vehicle owners in India is slightly higher in 2012 than in 2011, the incidence of problems related to excessive fuel consumption has significantly declined during the past five years, according to the JD Power Asia Pacific 2012 India Initial Quality StudySM (IQS) released today.

    The study, now in its 16th year, measures problems owners experience with their new vehicle during the first two to six months of ownership and examines more than 200 problem symptoms covering eight vehicle categories (listed in order of frequency of reported problems): engine and transmission; vehicle exterior; driving experience; HVAC; features, controls and displays; vehicle interior; seats; and audio, entertainment and navigation. All problems are summarized as the number of problems per 100 vehicles (PP100). Lower PP100 scores indicate a lower rate of problem incidence and higher initial quality.

    Overall initial quality in India averages 120 PP100 in 2012, which is a slight increase from 119 PP100 in 2011. The number of owner-reported initial quality problems has remained largely unchanged across all categories from 2011.

    There has been a significant reduction of 23 percent in the incidence of problems related to excessive fuel consumption during the past five years, which indicates that automakers in India are producing more fuel-efficient vehicles. Vehicle owners report fuel economy figures in 2012 that are 10 percent higher than in 2008. 

    “Historically, fuel efficiency has been one of the key drivers of model consideration and purchase in India,” said Mohit Arora, executive director at JD Power Asia Pacific, Singapore. “The reduction in fuel consumption-related problems is a result of both the advancements in engine technology and the adoption of smaller engine capacities in the Indian automotive industry. The effectiveness of these initiatives is clearly visible via fewer owner-reported problems with excessive fuel consumption.”

    However, the study also finds a gap between the promise of fuel efficiency made during the purchase process and the actual fuel efficiency experienced by owners.  In 2012, 67 percent of new-vehicle owners report that their vehicle’s fuel efficiency was less than what their salesperson communicated to them during the purchase process, an increase of five percentage point since 2008.

    “Fuel efficiency perceptions remain an area that the industry still needs to work on,” said Arora. “As technological advancements make vehicles more sophisticated, clearer communication during the purchase process will help set more realistic owner expectations on product performance. It would be prudent for automakers and their dealer networks to continue efforts to bridge the gap between expectations and reality on product performance.”

    Honda and Toyota each have two models that rank highest in their respective segments. The Honda City ranks highest in the midsize segment for a 10th consecutive year, while the newly launched Honda Brio ranks highest in the premium compact car segment. The Toyota Innova ranks highest in the MUV/ MPV segment for a sixth consecutive year, and the Toyota Fortuner ranks highest in the SUV segment.

    The Hyundai Santro receives the award in the compact car segment, and the Maruti Suzuki Swift DZire receives the award in the entry midsize car segment for a third consecutive year.

    The study finds that vehicle owner expectations of the incidence of quality issues they may experience have a strong bearing on model advocacy. Among vehicle owners who experience more problems than expected, 38 percent say they “definitely would” recommend their model, compared with 73 percent among those who experience fewer problems than expected.

    The 2012 India Initial Quality Study (IQS) is based on evaluations from 8,688 owners who purchased a new vehicle between November 2011 and July 2012. The study includes 94 vehicle models from 16 makes. The study was fielded from May to September 2012 in 25 cities across India.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    About JD Power and Associates

    Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

    Media Relations Contacts:

    XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

    John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate.
     

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  • 2012 China Automotive Performance, Execution and Layout (APEAL) Study

    Domestic Brands in China Narrow the Gap with International Brands in Overall New-Vehicle Appeal

    1970-01-01

    jdp-root

    SHANGHAI: 30 November 2012 — Chinese domestic brands have substantially narrowed the gap with international brands in overall vehicle appeal, according to the JD Power Asia Pacific 2012 China Automotive Performance, Execution and Layout (APEAL) StudySM released today.

    Now in its 10th year, the China APEAL Study examines how gratifying a new vehicle is to own and drive, based on owner evaluations during the first two to six months of ownership. The study examines 82 attributes across 10 vehicle performance categories: vehicle exterior; vehicle interior; storage and space; audio/ entertainment/ navigation; seats; HVAC; driving dynamics; engine/ transmission; visibility and driving safety; and fuel economy.

    Domestic brands achieve an average APEAL score of 781 points, an historic high for brands of Chinese automakers. Domestic brands have made significant improvements in the audio/ entertainment/ navigation and seats categories, each increasing by 11 points from 2011. There are also improvements in the driving dynamics and engine/ transmission categories, with each increasing by seven points from 2011. The APEAL score for international brands drops to 839 points in 2012 from 847 in 2011, due to declining satisfaction in the vehicle exterior and storage and space categories.

    The China automotive industry achieves an overall APEAL score of  822 points (on a 1,000-point scale) in 2012, a 3-point decline compared with 2011.

    “The significant price decline that the industry has experienced during the past year is causing a negative impact on owner satisfaction with their vehicle,” said Dr. Mei Songlin, vice president and managing director of JD Power China operations.  “Of 12 segments examined, seven experienced a continuous decline in median vehicle price within the nine-month study period.  If an owner sees the price of their newly purchased vehicle depreciating dramatically over the months after the purchase, their appreciation of the vehicle’s appeal will be negatively affected.”
     
    The 2012 China APEAL Study finds that satisfaction with the interior and exterior of newly launched models has declined year over year. The study also shows that satisfaction with all new models is lower than satisfaction with redesigned models, which were generally tailored to meet the preferences of consumers in China.

    “A new model will do much better in appealing to consumers in China if local consumer preferences are considered in the design stage, before it is launched to the market,” said Dr. Mei. “Although global platforms are effective, we may be reaching the point where vehicles must be designed to better adapt to the Chinese buyers’ preferences.”

    Collectively, Korean brands achieve the highest average APEAL score by country of origin for a second consecutive year, with an index score of 851 points, which is a 9-point decline from 2011. Korean brands outperform the industry average in eight of the 10 vehicle performance categories, particularly in storage and space, in which Korean brands score 35 points higher than the industry average. European brands collectively average 846 points, followed by U.S. (837) and Japanese (829) brands.

    Luxury brands achieve the four highest-rank positions among the 67 brands examined in the study. Audi ranks highest with a score of 884, followed by BMW (870), Lexus (864) and Mercedes-Benz (859).

    Among the 12 segments included in the 2012 study, 10 segments are award-eligible. Models from Shanghai General Motors receive awards in four segments. SGM-Chevrolet earns two awards: the Sail in the premium compact segment and the Epica in the lower premium midsize segment. Buick earns two awards: the Excelle XT/GT in the midsize segment and GL8 in the MPV segment. Models from Beijing Hyundai earn two awards: the Sonata in the upper premium midsize segment and the ix35 in the SUV segment. Another Korean make Dongfeng Yuedai Kia (Kia K2) earns the award in the entry midsize segment. Domestic models Chery QQ3 and Wuling Sunshine rank highest in the compact and mini van segments, respectively. The Audi model A6L ranks highest in the luxury segment.
      

    The highest-ranked models by segment in 2012 are:

    • Compact segment: Chery QQ3
    • Premium compact segment: Chevrolet Sail
    • Entry midsize segment: Kia K2
    • Midsize segment: Buick Excelle XT/GT
    • Lower premium midsize segment: Chevrolet Epica
    • Upper premium midsize segment: Hyundai Sonata
    • Luxury segment: Audi A6L
    • SUV segment: Hyundai ix35
    • MPV segment: Buick GL8
    • Mini van segment: Wuling Sunshine

    The APEAL Study finds that new-vehicle performance has a strong impact on consumer loyalty and advocacy. The more satisfied owners are with the performance of their vehicle, the more likely they are to recommend it to others and repurchase from the same brand in the future. Net recommendation and repurchase rates average 38 percent and 19 percent, respectively, for models with the highest levels of satisfaction (APEAL scores averaging 837 or higher). However, net recommendation and repurchase rates drop to 18 percent and 3 percent, respectively, for models with the lowest levels of satisfaction (APEAL scores averaging 790 or lower).

    “Key areas of focus for automakers in the Chinese market are seats and vehicle interior,” said Tony Zhou, automotive research director of JD Power China operations. “In particular, improving seats may help the industry go a long way in achieving higher customer satisfaction. The 2012 study finds that seats account for four of the top 10 attributes with the lowest customer satisfaction.”

    The 2012 China Automotive Performance, Execution and Layout (APEAL) Study is based on evaluations from 20,270 owners who purchased a new passenger vehicle between October 2011 and June 2012. The study examines 12 vehicle segments, which include 217 passenger vehicle models and 67 brands. The study was fielded from April to August 2012 in 43 major cities across China.

    JD Power and Associates’ benchmark studies evaluate products and services based on customer feedback on their experiences to help businesses make informed decisions about product and service improvements. The research is conducted through an entirely independent process that is funded by JD Power, which is key to the company’s independence and unbiased position. Typically, studies are derived from a random national sample of customers who use products and services across a number of industries. Study results are based solely on the opinions of customers. The opinion of JD Power is not included in the study results.

    The China Automotive Performance, Execution and Layout (APEAL) Study is one of the customer-based benchmark studies conducted by JD Power Asia Pacific in China. Other 2012 studies conducted by JD Power Asia Pacific include:

    • The China Customer Service Index (CSI) Study, which examines satisfaction with the after-sales service experience among vehicle owners between 12 and 24 months of ownership, was released in July.
    • The China New-Vehicle Intender Study (NVIS), which examines pre-purchase perceptions and considerations, was released in June.
    • The China Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in August.
    • The China Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to six months of ownership, was released in October.
    • The China Original Equipment Tire Satisfaction Index Study (OE-TSI),, which measures satisfaction among original equipment tire owners during the first 12 to 24 months of ownership, was released in November.
    • The China Vehicle Dependability Study (VDS), which evaluates overall vehicle dependability during the first 25-36 months of ownership, will be published in mid-December.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    About JD Power and Associates

    Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

    # # #


     

  • 2012 Blood Glucose Meter Satisfaction Study

    Highest-Performing Blood Glucose Meter Manufacturers Differentiate Themselves Through Performance and Ease-of-Use Capabilities

    1970-01-01

    jdp-root

    WESTLAKE VILLAGE, Calif.: 29 November 2012 — While satisfaction with blood glucose meters is high among users, perceived accurate readings and an easy-to-use navigation interface differentiate the highest performers from other meters, according to the JD Power and Associates 2012 Blood Glucose Meter Satisfaction StudySM released today.

    This inaugural study examines satisfaction among meter users who currently use a blood glucose meter to test their blood sugar levels. Overall satisfaction is measured across six factors (in order of importance): performance; ease of use; design; features; cost of test strips; and training. Overall satisfaction with blood glucose meters averages 827 (on a 1,000-point scale).

    Satisfaction among meter users who have experienced zero testing problems in the past 12 months (840) is 81 points higher than among those who have experienced at least one problem (759). Additionally, an easy-to-navigate menu is extremely important to satisfaction, which is 62 points higher among meter users who say the navigation menu is easy to use (849) than among those who say the navigation menu is not easy to use (787).

    Roche Diagnostics ranks highest among blood glucose meter manufacturers with a satisfaction score of 838 and performs particularly well in the performance factor, reflecting a high level of confidence among users that they are obtaining accurate readings. Abbott Diabetes Care ranks second with a score of 837, followed by Bayer Diabetes Care at 830.

    “Overall satisfaction averages are very high for all blood glucose meters included in this study,” said Richard Millard, senior director of the healthcare practice at JD Power and Associates. “However, the study finds that performance and ease of use are two ways that brands are able to differentiate themselves from competitors.”

    When meter choice is available, the top four reasons users cite for selecting a meter are easy-to-use test strips; fast testing times; less blood draw; and the price of the meter.

    While many meter users select a meter with minimal research, or are given a meter, extended use and familiarity foster loyalty. The study finds that once a meter is selected, users are more likely to continue with that brand of meter in the future. In fact, 83 percent of meter users say they “definitely will” or “probably will” stay with their current brand manufacturer when purchasing a new meter.

    “The longer patients use a meter, the more confident they typically are in its use. Meter users become better at minimizing errors and are more confident in their readings,” said Millard. “As it becomes part of their daily routine, it becomes harder for them to consider other brands as an alternative.”

    The 2012 Blood Glucose Meter Satisfaction Study is based on responses from 2,681 meter users. The study was fielded in October 2012.

    About JD Power and Associates

    Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

    Media Relations Contacts:

    Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
    Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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  • 2012 U.S. Sales Satisfaction Index (SSI) Study

    Online Ratings/Review Sites and Social Networking Sites Impact New-Vehicle Buyers’ Selection of Dealership

    1970-01-01

    jdp-root

    WESTLAKE VILLAGE, Calif.: 28 November 2012 — Nearly 80 percent of new-vehicle buyers use the Internet during their shopping process, among whom nearly one-third consult online ratings/review sites when selecting a dealer, according to the JD Power and Associates 2012 U.S. Sales Satisfaction Index (SSI) StudySM released today.

    “For years, new-vehicle buyers have accessed the Internet to research model information, vehicle features, configurations and pricing,” said Chris Sutton, senior director of the Automotive Retail Practice at JD Power and Associates. “Now, neutral online ratings/review sites are playing a key role in dealer selection. Whether the online reviews are positive or negative, they impact buyers’ willingness to visit a dealer.”

    The study finds that new-vehicle buyers are much more inclined to use a ratings/review site than a social networking site when selecting a dealer. However, satisfaction with the dealership experience is significantly higher among new-vehicle buyers who use social networking sites than among those who consult ratings/review sites.

    “That’s the power of the network,” said Sutton. “New-vehicle buyers are using the Internet to read the reviews and recommendations of other buyers who have experience with a particular dealer, so it would be prudent for dealers to ensure their customers have had a satisfying experience, given their influence on prospective customers.”

    Among new-vehicle buyers, males are significantly more likely than females to consult ratings/review sites, whereas females are significantly more likely to consult social networking sites.  Both genders are equally likely to visit blogs, forums, or social networking sites (7% each); however, females post considerably more positive online statements regarding their dealer experience, compared with males (86% indicate comments “mostly positive” vs. 77%, respectively).

    The study is a comprehensive analysis of the new-vehicle purchase experience and measures customer satisfaction with the selling dealer (satisfaction among buyers). The study also measures satisfaction with brands and dealerships that were shopped but ultimately rejected in favor of the selling brand and dealership (satisfaction among rejecters). Among buyers, satisfaction is examined across four measures (listed in order of importance): working out the deal (17%); salesperson (13%); delivery process (11%); and facility (10%). Among rejecters, satisfaction is examined across five measures (listed in order of importance): salesperson (20%); fairness of price (12%); facility (6%); inventory (6%); and experience negotiating (5%).

    Overall sales satisfaction among both buyers and rejecters averages 664 on a 1,000-point scale in 2012, improving from 648 in 2011.

    Satisfaction with the selling dealer averages 776 in 2012, a five-point increase from 2011.  Satisfaction improves in three of the four measures that examine satisfaction among buyers, with salesperson achieving the highest score.

    Among buyers whose salesperson asked them questions to determine their vehicle needs, only 21 percent perceive some or too much pressure from dealer sales staff, compared with 32 percent among those whose salesperson did not ask questions about their needs who perceive some or too much pressure. These results indicate that customers prefer salespeople who invest the time up front to listen to them and ensure they select the right vehicle.  Perceived pressure decreases when sales consultants establish a business relationship and understand customer needs.

    Given the increasing complexity of technology in today’s new models, there is a growing need for dealers to spend time explaining complicated audio, entertainment and navigation systems so buyers can fully utilize all the benefits these technologies offer. A majority (86%) of new-vehicle buyers indicate that the dealer staff spent “just the right amount of time” with them during the delivery process. Among the 8 percent of new-vehicle buyers who say that the dealer staff did not spend enough time at delivery, nearly three-fourths indicate they would have preferred staff to spend more time reviewing their vehicle’s features and technologies, such as pairing their phone to Bluetooth or demonstrating the navigation system.

    Satisfaction with the dealership where rejecters shopped but did not buy their vehicle improves to 553 in 2012, a 28-point increase from 2011, with significant improvements in each of the five measures.

    Lexus ranks highest among luxury brands in satisfaction with the new-vehicle buying experience for a second consecutive year, with an index score of 737. Rankings are based on the experiences of both buyers and rejecters. Infiniti (728) and Cadillac (725) follow in the luxury segment rankings to round out the three highest-performing brands. Year-over-year sales satisfaction improves the most for Infiniti (+52 index points), moving from ranking eighth in 2011 to rank second in 2012.

    MINI ranks highest among mass market brands for a third consecutive year, with a score of 712. Buick (706) and GMC (683) follow in the mass market segment rankings. Honda improves the most among mass market brands (+30 index points) and moves from ranking 12th in 2011 to rank eighth in 2012.

    For a comprehensive perspective of automotive retail trends, which was presented by John Humphrey, senior vice president of global automotive operations at JD Power and Associates, on Nov. 27 at the NADA/JD Power 2012 Western Automotive Conference, click here.

    The 2012 U.S. Sales Satisfaction Index (SSI) Study is based on responses from 31,386 buyers who purchased or leased their new vehicle in May 2012. The study was fielded between August and October 2012.

    About JD Power and Associates

    Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

    Media Relations Contacts:

    John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
    Syvetril Perryman; JD Power and Associates; Westlake Village, Calif.; (805) 418-8103; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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  • 2012 Australia Customer Service Index (CSI) Study

    Pre-Service Communication Is a Key Driver of Vehicle Owner Satisfaction With the Service Experience in Australia

    1970-01-01

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    SINGAPORE: 27 November 2012 — Proactive communication with vehicle owners during the pre-service process may have a key impact on satisfaction with the overall vehicle service experience, according to the JD Power Asia Pacific 2012 Australia Customer Service Index (CSI) StudySM released today.

    Now in its third year, the study measures overall satisfaction with the vehicle service experience at authorized service centers by examining five factors (listed in order of importance): service quality; vehicle pick-up; service advisor; service initiation; and service facility. Overall satisfaction is measured on a 1,000-point scale, with a higher score indicating higher satisfaction.

    The study finds that among the various communication touch points during the vehicle service process, a positive pre-service communication experience assists in creating a highly satisfying overall service experience. Satisfaction increases by 105 points when vehicle owners are given an estimate of how long service will take, compared with those who are not given an estimate. In addition, satisfaction is 40 points higher when vehicle owners are notified by the dealership when their vehicle needs service, compared with vehicle owners who were not notified.

    “Proactive communication during pre-service helps pave the way for a highly satisfying vehicle owner experience,” said Mohit Arora, executive director JDPower Asia Pacific. “Owners prefer to be updated by the network on their service due dates, as well advised during vehicle drop-off of the time to pick up the vehicle. These simple steps help to create a positive first impression about the network’s ability to deliver a quality after-sales experience.”

    Overall customer satisfaction averages 791 in 2012, a 2-point decrease from 2011. The marginal drop in satisfaction is due to the decline in scores in three factors: quality (-5 points), service advisor (-8 points) and service facility (-6 points).  

    Among the 12 brands ranked in this study, Honda and Toyota rank highest in a tie, each with an index score of 809. Both brands perform particularly well in service initiation. Subaru, which ranked highest in 2011, ranks third with a score of 805.

    The implementation of standard operating procedures, such as “work done right the first time” and “vehicle ready when promised,” has a direct impact on overall satisfaction. In order to positively impact overall satisfaction scores, it is important for the service facility to ensure at least 11 procedures or standards are provided to vehicle owners. The performance of the network in implementation of standards has remained largely unchanged, compared with 2011. During the past two years, nearly one-third of vehicle owners indicate receiving 10 or fewer standards, among whom satisfaction is 85 points below the industry average.

    “Service standards are building blocks of a thorough service experience,” said Arora. “It is important that the network places significant importance in ensuring administration of all these standards to mitigate dis-satisfaction and ensure service consistency.”

    The study finds that vehicle owners who are highly satisfied with the dealer’s overall service performance have higher levels of loyalty and advocacy toward both the dealership and the brand. Among vehicle owners who are highly satisfied (satisfaction scores above 895), 81 percent say they “definitely would” revisit their service dealer for post-warranty service. In contrast, only 12 percent of highly dissatisfied customers (satisfaction scores below 713) say the same. Similarly, 69 percent of highly satisfied customers say they “definitely would” recommend their make to their friends and relatives, compared with 4 percent of highly dissatisfied customers.

    The 2012 Australia Customer Service Index (CSI) Study is based on responses from 4,300 owners who purchased their new vehicle between August 2007 and August 2012 and took their vehicle for service between August 2011 and August 2012. The study was fielded in August and September 2012.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    About JD Power and Associates

    Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

    Media Relations Contacts:

    XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

    John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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  • 2013 Gas Utility Business Customer Satisfaction Study

    Overall Business Customer Satisfaction with Gas Utilities Declines from 2012 Driven by Decreases in Corporate Citizenship and Customer Service Satisfaction

    2013-03-13

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    WESTLAKE VILLAGE, Calif.: 13 March 2013 — Amid a reduction in local and customer-focused activities, overall customer satisfaction declines among business gas utility customers, according to the JD Power and Associates 2013 Gas Utility Business Customer Satisfaction StudySM released today.

    Key Findings
    • More than one-half (51%) of business customers now have an online account.
    • Fewer customers use electronic billing in 2013 (29%), compared with 2012 (35%).
    • Online first-contact problem resolution is 68 percent, down from 76 percent in 2012.

    Now in its eighth year, the study measures business customer satisfaction with their gas utility company in four regions: East, Midwest, South and West. Satisfaction is measured by examining six factors: billing and payment; corporate citizenship; price; communications; customer service; and field service.

    In 2013, overall satisfaction among business customers of gas utilities averages 657 (on a 1,000-point scale), a decrease of 17 points from 2012. Satisfaction declines in all six factors examined in the study, with the greatest declines occurring in corporate citizenship (down 22 points) and customer service (down 19 points). Communications declines the least in the 2013 study (down 13 points), primarily due to a decrease in customer recall of utility communications.

    “Overall, there are fewer touches being made in corporate citizenship and in communications, which has negatively impacted customer satisfaction,” said Chris Oberle, senior director of the energy practice at JD Power and Associates. “The customer-focused approach used to increase satisfaction in the 2012 study has somewhat waned, as utility companies receive lower awareness of their local support and economic development efforts this year.”

    The study finds that local and community efforts are also declining, directly impacting customer perception of corporate citizenship. Business customer awareness of utility efforts regarding environmental efforts declines to 31 percent in 2013, down from 38 percent in 2012. Additionally, customer awareness of a utility’s local support and donations declines five percentage points year over year to 24 percent in 2013.

    Online customer service, specifically ease of use, is contributing to a steep decline in overall customer service satisfaction.

    “Customers are not satisfied with gas utility websites and find them difficult to use, increasing their time spent on the site to complete the desired action,” said Oberle. “This dissatisfaction has led some business customers to drop electronic billing and online payments, deferring to the more traditional paper bill.”

    East Region
    New Jersey Natural Gas ranks highest in satisfaction in the East region for a third consecutive year, with a score of 670. Following in the regional rankings are National Fuel Gas (668) and UGI (660).

    Midwest Region
    CenterPoint Energy-Midwest and MidAmerican Energy rank highest in satisfaction in the Midwest region, each achieving a score of 690. Following in the regional rankings is Xcel Energy – Midwest (669).

    South Region
    In the South region, South Carolina Electric & Gas ranks highest in satisfaction with a score of 725. PSNC Energy (702) and Oklahoma Natural Gas (693) follow in the regional rankings.

    West Region
    Southern California Gas Company ranks highest in satisfaction in the West region with a score of 691. Following in the regional rankings are Cascade Natural Gas (687) and NW Natural (685).

    The 2013 Gas Utility Business Customer Satisfaction Study is based on online interviews with representatives of more than 10,100 U.S. businesses that spend $200 or more monthly on natural gas. More than 50 utility brands—each serving more than 25,000 business customers—are included in the study. The study was fielded from May to July 2012 and October to December 2012.

    About JD Power and Associates

    Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at www.mcgraw-hill.com.

    Media Relations Contacts:

    Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
    Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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  • JD Power Asia Pacific Announces the Launch of its New Website

    JD Power India Website and Consumer Ratings Centre Goes Live

    2013-03-12

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    SINGAPORE: 12 March 2013 — JD Power Asia Pacific announces the launch of its new website that offers insights on the automotive market in India.

    The website, www.jdpower.co.in, provides two dedicated destinations designed for easy navigation. Both consumers and automakers are able to view their respective Web pages to gain expert insights and unbiased information on the auto industry in India.

    For Consumers in India

    The new website features Power Circle Ratings™ which provide a quick and easy guide to the ranking performance of automotive brands included in JD Power Asia Pacific studies. For many years, consumers around the world have relied on Power Circle Ratings to help them make informed product and purchase decisions. All ratings are based on the evaluations of those who own the vehicle being assessed or who have had their vehicle serviced, and not on the opinions or preferences of JD Power Asia Pacific or its analysts.”As the conduit of the Voice of the Customer, JD Power is grateful for the feedback from millions of consumers who participate each year in our surveys,” said Mohit Arora, executive director at JD Power Asia Pacific. “We are pleased to offer the ratings in return, which empower them as well as other consumers in their vehicle purchase decision-making process.”Consumers can also access the News/Blog page on the website for JD Power’s perspectives on the latest trends and topics influencing the automotive industry.

    For Automakers in India

    For automakers, the website offers a dedicated destination that provides consumer insights and study findings from JD Power Asia Pacific. The website offers automakers in India an independent source of information that allows them to compare their performance in the various measures included in JD Power studies with the performance of competitors.  

    “Over the years, JD Power has been transmitting Voice of the Customer insights to automakers to facilitate improvements in vehicle quality and service standards,” said Arora. “Valuable insights about consumer expectations and preferences are essential for the automotive industry to keep abreast with changes in consumer behavior and to better meet their expectations.”

    Arora notes that India has quickly emerged as an attractive but highly competitive market in the global auto industry. “To stay ahead of competition, automotive manufacturers must make consistent efforts in improving on all stages of the vehicle life cycle, from product planning to customer loyalty and retention,” said Arora.

    According to LMC Automotive, JD Power’s automotive forecasting alliance partner, light-vehicle sales in India are expected to increase to 3.56 million units in 2013, a 9 percent increase from 2012. This growth rate is likely to reach nearly 9.87 million units in 2020.

    “Being attuned to the Voice of the Customer may well position automakers to achieve a larger share of sales,” said Arora.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    About JD Power and Associates

    Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at www.mcgraw-hill.com.

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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  • 2013 Member Health Plan Study

    As Health Plans in Various States Prepare for Increasing Health Insurance Enrollments, Many Health Plan Members Consider Using Health Insurance Exchanges

    2013-03-11

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    WESTLAKE VILLAGE, Calif.: 11 March 2013 — The introduction of health insurance exchanges is generating interest among health plan members who purchase insurance directly, as well as those who have high deductibles and/or lower levels of overall satisfaction, according to the JD Power and Associates 2013 Member Health Plan StudySM released today.

    Key Findings

    • A majority (59%) of health plan members say that they had only one health plan available to select at the time of enrollment.
    • Slightly more than one-half (51%) of all members say that their premium cost has increased during the past year.
    • Interest in exchanges is highest among health plan members in small companies (53%), followed by those in medium (48%) and large (43%) companies.

    Now in its seventh year, the study measures satisfaction among members of 136 health plans in 17 regions throughout the United States by examining seven key factors: coverage and benefits; provider choice; information and communication; claims processing; statements; customer service; and approval process. In 2013, overall member satisfaction averages 701 (on a 1,000-point scale), compared with 702 in 2012.

    Nearly three-fourths (73%) of members who purchase insurance on their own instead of through their employer say they “definitely will” or “probably will” shop for coverage using a state exchange, if available. The new insurance purchasing method intends to make it easier for members to access insurance and, ideally, at more competitive rates. The desire to reduce costs may also attract all types of members to the concept of exchange purchasing. A higher percentage of members in high-deductible health plans indicate they are interested in using exchanges, compared with those in low-deductible plans (59% vs. 45%, respectively). Service quality may also play a role in shaping demand, as members with the highest levels of interest in using exchanges are those who have contacted their health plan regarding a problem during the past year (60%), compared with those who have not had a problem with their health plan (45%).

    “As healthcare costs continue to increase and members pay a higher percentage of the premium, health plan members are increasingly aware of exactly what they are getting for their premium,” said Rick Millard, senior director of the healthcare practice at JD Power and Associates. “If a member has experienced problems and perceives the possibility of having more control over costs through exchanges, this new purchasing method may become more appealing.”

    Overall, 48 percent of health plan members (combining both group and individual markets) indicate they are interested in using a state exchange, if it were available to them. Among members with group coverage, interest in state exchanges is more prevalent when their employer has not offered a choice of health plans. Members who have a choice of health insurance brands are less interested in exchanges (36%) than do those who have no choice (50%).

    “Income-eligible members with high out-of-pocket costs and less tenure with a health plan are most likely to try exchanges,” said Millard. “The exchange also appeals to those working at small companies who want to take more direct control over their healthcare expenses.”

    Satisfaction is highest among health plan members in the Michigan, Texas and East South Central regions, and is lowest among those in the Mountain and Colorado regions.

    Health plans ranking highest in their respective regions (in alphabetical order) are Anthem Health Plans of New Hampshire; AvMed Health Plans; Blue Cross and Blue Shield of Alabama; Blue Cross and Blue Shield of Illinois; Blue Cross and Blue Shield of Kansas City; Blue Cross and Blue Shield of Texas; Geisinger Health Plan; Health Alliance Plan (HAP) of Michigan; HealthPartners; Independent Health Association; Kaiser Foundation Health Plan (which ranks highest in the California, Colorado, South-Atlantic and Mid-Atlantic regions); PacificSource Health Plans; SelectHealth; and UnitedHealthcare.

    JD Power offers the following tips to health plan members and consumers who are shopping for health insurance coverage:

    • When shopping for a health insurance plan, consider the cost-to-benefit ratio. Generally speaking, the higher the cost, the higher the number of plan features and healthcare provider flexibility. Conversely, while lower-cost plans may provide lower premiums, they may also provide fewer choices of plan features or healthcare providers.
    • If you purchase coverage on your own, research state-sponsored health insurance exchanges to learn how they work, and particularly how your state’s exchange will be offered. Beginning later this year, you may qualify for state exchanges if your income is within a certain range or if you work for a small company, which may mean the possibility of more choices of coverage at a lower cost.
    • While some states are implementing exchange ratings programs based on health plan quality (e.g., did the doctor order the right tests), be sure to review JD Power and Associates health plan rankings, which are based on member satisfaction, to see how your plan compares in the rankings.
    • Understand your coverage. Health insurance plans are sometimes difficult to understand, with complex rules for deductibles, co-payments and other expenses. If you don’t have a clear understanding of the coverage and you have a choice of plans, opt for the simpler approach. For example, you may be more satisfied with fewer choices of healthcare providers in order to have coverage with less complicated costs.

    The 2013 Member Health Plan Study is based on responses from more than 33,000 members of 136 commercial health plans across 17 regions in the United States. The study was fielded in December 2012 and January 2013. For more comprehensive health plan rankings for all 17 U.S. regions, please visit www.jdpower.com.

    About JD Power and Associates

    Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at www.mcgraw-hill.com.

    Media Relations Contacts:

    Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
    John Tews; Troy, Mich.; (248) 680-6215; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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