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  • Sales Satisfaction Index (SSI) Study Brasil 2013

    More than One-Half of Buyers in Brazil Do Not Test Drive the Vehicle Before Buying It

    2013-07-01

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    SÃO PAULO: 1 July 2013 — New-vehicle shoppers in Brazil rely on information from friends and family and from the Internet far more than other sources to help them decide which vehicle to purchase, according to the JD Power 2013 Brazil Sales Satisfaction Index (SSI) StudySM released today.

    The study is a comprehensive analysis of the new-vehicle purchase experience and measures customer satisfaction with the selling dealer by examining four measures (listed in order of importance): salesperson (27%); delivery process (27%); dealership facility (23%); and working out the deal (22%).

    New-vehicle buyers cite friends and relatives (45%) and the Internet (43%) as their primary sources of information when deciding on a make and model of vehicle to purchase. These sources are cited substantially more often than traditional information sources such as owners of the same vehicle (27%) or the salesperson or dealership owners (23%).

    With 3.6 million new light vehicles sold in Brazil in 2012 and 3 percent growth expected in 2013, Brazil is now the fourth-largest new-vehicle market in the world, behind China, the United States and Japan. As a result of continued expansion of Internet access, consumers are increasingly relying on information gathered online to help make informed vehicle purchase decisions.

    “A new vehicle is a tremendous expenditure for consumers in Brazil, and they want to make sure they know as much as they can about the vehicles they are considering before they enter the dealership,” said Jon Sederstrom, director and country manager, JD Power do Brasil. “With nearly one-half of consumers in Brazil having Internet access, and with approximately 55 million smartphones in use in the country, information gathered online is becoming a powerful and influential resource for new-vehicle shoppers.”

    In terms of how shoppers use the Internet to gather information, the most frequently visited website types include search engines such as Google (69%); automotive manufacturer websites (50%); specialty automotive websites, such as Webmotors and iCarros (42%); and dealer websites (37%). Additionally, 21 percent of new-vehicle shoppers in Brazil use a social network to research their purchase.

    “Automakers and dealers will want to continue monitor social media, as it is becoming an increasingly important information medium for shoppers, particularly those between 18 and 34 years old,” said Sederstrom. “This group represents a large portion of current and future new-vehicle buyers, and social networks will become an even more effective way to communicate with them.”

    Selecting the Right Vehicle

    Past experience, brand and model reputation, and financial considerations play important roles in how new-vehicle buyers make their final purchase selection. The most influential reasons vehicle owners in Brazil purchased their specific make and model over others are previous experience with the brand (cited by 11% of all owners); low price or payment/ability to obtain financing (9%); and reliability/durability of the vehicle (8%).

    “JD Power has found through its research that new-vehicle shoppers worldwide tend to gravitate toward the brands and vehicles with which they are familiar, that enjoy a solid reputation and that are reasonably affordable,” said Sederstrom. “Yet when it comes to selecting a dealership in Brazil, shoppers show a willingness to try something new.”

    The study finds that while 84 percent of owners purchased their new vehicle to either replace another vehicle or to add another vehicle to their household, only 34 percent purchased their new vehicle from the same dealer from which they purchased in the past.

    At the Dealership

    Once a shopper decides to visit a dealership, it doesn’t necessarily mean they will purchase their new vehicle from that dealer. In fact, shoppers consider an average of three vehicle brands during their shopping process.

    One of the crucial aspects of the sales experience is the test drive–whether a test drive is offered by the dealer and what transpires during the test drive. More than half of new-car buyers (51%) do not take a test drive either because they are not offered the opportunity or they choose not to.

    “The test drive is an opportunity for shoppers to spend time with the vehicle they are considering and to help them determine if that is the right vehicle for them,” said Sederstrom. “Creating a positive test drive experience is a challenge in many of Brazil’s highest-volume markets due to urban congestion. However, having the vehicle in their inventory and allowing shoppers the time they need to drive the vehicle in a variety of conditions will help boost sales and increase sales satisfaction.”

    Sales Satisfaction

    Although the test drive is critical, each step in the sales process is important because higher sales satisfaction fosters higher future repurchase rates, as well as more positive referrals to family, friends and acquaintances.

    Among the 12 nameplates included in the study, Ford, Hyundai-CAOA, Toyota and Volkswagen perform particularly well in overall sales satisfaction in Brazil.

    The 2013 Brazil Sales Satisfaction Index Study is based on the evaluations of more than 3,000 online interviews with Brazilian new-vehicle owners one to seven months after purchase. The study was fielded in April and May 2013.

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

    Media Relations Contacts:

    Adriana Solinas; Gaspar & Associados; São Paulo, Brazil; (11) 3037-3221; [email protected]

    Mariana Zaia; Gaspar & Associados; São Paulo, Brazil; (11) 3037-3214; [email protected]

    John Tews; 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. www.jdpower.com/corporate

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  • 2013 Germany Vehicle Ownership Satisfaction Study (VOSS)

    Compensating for Flat Vehicle Sales, Germany’s Automakers, Dealers Need to Focus on Loyalty, Purchase Factors and Improving Service Business

    2013-06-27

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    MUNICH: 27 June 2013 — With new-vehicle sales expected to remain sluggish in Germany during the coming years, loyalty and a heightened awareness of the factors that influence the purchase decision, as well as attention to building service relationships, become more vital to automakers and dealers, according to the JD Power 2013 Germany Vehicle Ownership Satisfaction StudySM (VOSS) released today in association with AUTO TEST.

    The 2013 Germany VOSS examines owner satisfaction with one- to three-year-old vehicles, based on evaluations of four key measures that comprise the overall ownership experience (in order of importance): vehicle appeal (27%), which includes performance, design, comfort and features; ownership costs (25%), which includes fuel consumption, insurance and costs of service/repair; vehicle quality and reliability (24%); and service satisfaction (23%).

    Volvo ranks highest in vehicle ownership satisfaction among the 25 vehicle brands included in the study. Volvo manages to inspire enthusiasm among its loyal owners even in lackluster times, especially since the brand delivers on many of the purchase considerations that are most important to premium vehicle buyers in the German market, as supported in the study.

    Volvo ranks highest in 2013 with a score of 832. Volvo performs particularly well in vehicle quality and reliability and vehicle appeal. Toyota (816) follows Volvo in the rankings and performs particularly well in vehicle ownership costs and vehicle service. Rounding out the highest-ranked brands are Mercedes-Benz (810), Mazda (808) and Mitsubishi (807). 

    The study finds that the five highest-ranked automotive brands benefit from higher loyalty and recommendation rates. Some 44 percent of vehicle owners of these brands say they “definitely will” purchase the same brand again, while just 30 percent of owners of brands with below-study average satisfaction scores say they “definitely will” repurchase. 

    Similarly, 52 percent of owners of vehicles from among the five highest-ranked brands say they “definitely will” recommend their brand, while only 39 percent of owners of brands with below-industry average scores say they “definitely will” recommend. High satisfaction also impacts referrals. While 45 percent of owners of vehicles from brands with high satisfaction scores say they “definitely will” recommend their service dealer, only 36 percent of owners of vehicles from brands with satisfaction scores below the study average say the same. 

    “Owners of premium brands are more concerned about abstract concepts of ownership–such as safety, quality of workmanship, image, comfort and styling—compared with volume-brand owners who are more concerned with the practical elements of ownership—such as getting a good deal or buying a new vehicle with low fuel consumption,” said Mark Lendrich, senior research manager at JD Power Europe.

    The study finds that among volume brands (46%), fuel consumption is the third-most-frequently cited consideration when purchasing a new vehicle, but is the 11th most frequently reported problem for buyers of premium brands (33%).

    In 2013, both volume- and premium-brand models achieve high satisfaction scores. Mass-market brand Toyota achieves the highest scores in three of eight award segments. The Aygo ranks highest in the city car segment; the Yaris ranks highest in the small car segment; and the Prius ranks highest in the compact segment and is the highest-scoring model in the study. The Volkswagen Passat CC ranks highest in the mid-size segment.

    Other models ranking highest in their respective segments include Honda CR-V (compact SUV); Opel Meriva (small MPV); Seat Altea (MPV); and Volvo V70/XC70 (large/luxury).

    Service Business Presents Enhanced Revenue Opportunity for Dealers

    In light of a less-than-robust outlook for new-vehicle sales in Germany, automakers and dealers need to look for such other avenues as service and parts sales to boost revenues. The study finds that dealers capture 76 percent of industry-wide service spend on vehicles that are one to three years old, compared to aftermarket/non-dealer facilities, which get 24 percent of service spend. In the past 12 months, 65 percent of service visits for lube/oil changes, scheduled maintenance and repairs were performed by authorized dealers. 

    Vehicle owners indicate they spend more for basic services–such as oil changes and scheduled maintenance—at authorized dealers than at other service facilities. In contrast, owners indicate they spend less on repairs at dealerships than they do at other service facilities.

    “When owners elect to bring their vehicle to an authorized dealership, it is an opportunity for dealerships to maintain and build exclusive relationships with their service customers,” said Lendrich. “This may help them avoid losing service customers and retain owner brand loyalty.” 

    The Internet Gains Ground as a Research Tool among Germany’s New-Vehicle Shoppers

    Currently, more than 80 percent of Germany’s population is connected to the Internet, according to German government estimates from JD Power research. As a result, understanding how customers use the Internet when shopping for a new vehicle is imperative to gaining sales leads and bolstering brand awareness for automakers and dealers. The 2013 Germany VOSS results indicate that 70 percent of vehicle owners used the Web to shop for a new vehicle in 2013. Premium-brand owners (73%) use the Internet slightly more often than volume-brand owners (69%). 

    Nearly one-fifth (18%) of premium-brand owners say that they used an app (software application or program downloaded on a mobile device, such as a smartphone). New-vehicle owners indicate that they used a smartphone (22%) or tablet (14%) to research new vehicles. 

    The 2013 Germany Vehicle Ownership Satisfaction Study is based on 17,937 online evaluations by vehicle owners in Germany whose vehicles were originally registered new between January 2010 and December 2011. The survey was fielded in Germany in January through March 2013.

    This annual JD Power study provides consumers with information to help them make purchase decisions about vehicle models sold in the Germany market, and helps manufacturers to understand what drives high levels of satisfaction among their customers. Additional study results are published exclusively in the July issue of AUTO TEST, which will be on sale beginning on June 28, 2013. 

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    About AUTO TEST

    AUTO TEST is a member of the international AUTO BILD group published by Axel Springer. Since 2003, AUTO TEST has been the leading special interest magazine for readers who are planning to buy a new car. More than 500 cars are tested each year, with more than 1.8 million kilometers driven to provide readers with detailed and objective model reviews to help them choose the best car for their money. Readers can also find tips on cutting running costs, used cars, service, finance and accessories. 

    Media Relations Contacts:

    John Tews; Troy, Mich. USA; Tel: +1 (248) 680-6218; [email protected]
    Mark Lendrich, Munich, Germany; Tel: +49 (0)89-288 03 66-11; [email protected]
    Tobias Franzke; AUTO TEST; Tel: +49 (0)9122 63 13 100;[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 of JD Power. www.jdpower.com/corporate

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  • 2013 Employer Health Plan Study

    Health Plans Risk Losing Employer-Sponsored Group Business Unless Satisfaction Improves

    2013-06-27

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    WESTLAKE VILLAGE, Calif.: 27 June 2013 — With such alternative healthcare purchasing choices as public and private exchanges—or cutting coverage altogether—taking shape among employers, health plans risk losing group business unless they improve employer satisfaction, according to the JD Power 2013 Employer Health Plan StudySM released today.
    Key Findings
    • HCSC ranks highest among fully insured employers with a score of 741; Cigna ranks highest among self-funded employers at 707.
    • Nearly one-fifth (15%) of employers say they “definitely will not” or “probably will not” continue sponsoring coverage in five years.
    • Among employers in both segments, there is a 90-point gap in overall satisfaction scores between employers that intend to offer coverage in the future and those that intend to discontinue coverage.

    The study, now in its fourth year, measures six key factors that affect employer satisfaction with health plans: employee plan service experience; account servicing; program offerings; benefit design; problem resolution; and cost. Health plans are ranked in two employer segments: fully insured employers (health plan assumes the risk of providing health coverage for insured events); and self-funded employers (employers bear the risk associated with offering health benefits).

    Among fully insured employers, satisfaction averages  709 (on a 1,000-point scale); among self-funded employers, satisfaction averages 696. Satisfaction across all factors among employers that do not intend to offer coverage five years from now is at least 76-points lower than employers who intend to offer coverage. 
    “Health plans need to understand the importance of satisfaction in order to limit the erosion of their business from employer-sponsored coverage to alternative channels where employees have more choices,” said Richard Millard, senior director of the healthcare practice at JD Power. “Those health plans that focus on closing the satisfaction gap across key performance factors are more likely to retain employer-sponsored group contracts.”
    In both the fully insured and self-funded segments, employer satisfaction with program offerings, such as preventive health programs, disease management or wellness initiatives, is a key area of differentiation between employers that intend to offer coverage in the future and those that intend to drop coverage.  In the program offerings factor, the gap in satisfaction scores between fully insured employers that intend to offer coverage in the future and those that intend to drop coverage is 104 points—705 among employers that intend to offer coverage, compared with 601 among those that intend to drop coverage. Among self-funded employers, the gap in satisfaction scores between those that intend to offer coverage in the future and those that intend to drop coverage is also 105 points—689 among employers that intend to offer coverage, compared with 584 among those that intend to drop coverage.
    Cost is another important driver of satisfaction. Cost satisfaction among employers that indicate they intend to continue sponsoring coverage in the future is 106 points higher than among those that intend to drop coverage (696 vs. 590, respectively). Satisfaction with cost is improving as more consumer driven high-deductible plans are offered to employees, which 82 percent of employers indicate are controlling costs. 
    “One way that health plans may improve employer satisfaction is by demonstrating they are making an impact on the health behavior of employees,” said Millard. “How well health plans are able to do this may make a difference in determining whether an employer chooses to continue offering coverage or not.”
    Plan Satisfaction
    Among fully insured employers, HCSC ranks highest with a score of 741, while Cigna ranks highest among self-funded employers with a score of 707. Both health plans perform particularly well in benefits design, problem resolution and account servicing.
    The 2013 Employer Health Plan Study is based on responses from 5,857 employers, with quotas to assure an adequate distribution of small, medium and large companies. The study was fielded in April and May 2013. 
     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.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]  
    John Tews; 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. www.jdpower.com/corporate

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  • 2013 Cruise Line Satisfaction Report

    Although Overall Satisfaction with Cruise Lines Is High, Nearly 20 Percent of Passengers Experience A Problem on Their Cruise

    2013-06-27

    jdp-root

    WESTLAKE VILLAGE, Calif.: 27 June 2013 — While overall customer satisfaction with cruise lines is high, nearly one in five customers experience a problem while on their cruise, according to the JD Power 2013 Cruise Line Satisfaction ReportSM released today. The inaugural report measures cruise line customer satisfaction based on seven key factors (in order of importance):  service; stateroom; food; embark/debark; entertainment; cost; and excursions.

    Key Findings
    • Disney Cruise Line (871) ranks highest in overall satisfaction among cruise line brands, followed by Royal Caribbean (838).
    • Price (53%) and past experience with brand (39%) are the two primary reasons for selecting a cruise line.
    • The average price paid for one person is $1,628 and $2,330 for a group of two to four.

    Disney Cruise Line ranks highest in customer satisfaction with a score of 871 (on a 1,000-point scale), significantly higher than the report average of 824, and performs particularly well in the entertainment and food factors. Royal Caribbean International ranks second with a score of 838, and performs particularly well in service. Holland America Line ranks third at 835, also performing particularly well in service.

    While customer service, stateroom and food comprise more than 50 percent of the contribution to overall satisfaction, the number of problems passengers experience during their cruise also has a significant impact on loyalty and advocacy. Overall, 18 percent of passengers across all cruise lines indicate they experienced at least one problem on their cruise. On average, cruise line passengers experience 1.8 problems.

    Passengers experiencing zero or one problem (61% and 55%, respectively) say they “definitely will” take another cruise with the cruise line they most recently used. When two to three problems are experienced, the likelihood of customers taking another cruise with the same cruise line drops dramatically (33% and 28%, respectively). Among the brands above the industry average, 68 percent of passengers indicate they “definitely will” recommend their cruise line to others, surpassing the report average of 61 percent. A high level of satisfaction translates into customer loyalty and advocacy.

    “Many cruise lines in the report have very high levels of passenger satisfaction, well above the report average; however, for more than a year, the overall industry has been dealing with a lot of negative news affecting customer perceptions, expectations and trust,” said Ramez Faza, senior account manager of the global travel and hospitality practice at JD Power. “To raise the bar, the industry must focus on meeting the needs of the nearly 20 percent of passengers who experience a problem with their cruise line experience. Cruise lines need to understand the causes of customer dissatisfaction and determine what will motivate them to come back.”

    The primary reason for choosing a particular cruise line is price (53%). However, among customers who say they “definitely will not” or “probably will not” return for another cruise, cost is the driving factor, with their overall satisfaction score at 614 points. The average price paid for one person is $1,628. When the number of people in the traveling party increases to two or four, prices average $2,330 for the group. Among customers who say they “definitely will” return, service is the key reason for their decision.

    “To retain existing customers or acquire new customers, cruise lines need to be extremely sensitive to the price point that is most comfortable for customers, while providing the highest level of service possible,” said Faza. “It’s all about perceived value for customers. Did they get their money’s worth? Was the service better than expected? Simply put, cruise lines need to work harder to create an enjoyable experience in which customers feel they are getting a great value for the price. Cruise lines that satisfy their customers and provide them with a reason to cruise again are rewarded with loyal customers.”

    Most consumers become aware of their cruise line brand through one of several means: the cruise line’s website (28%); they are loyal customers who have traveled with the cruise line previously (24%); or they discover the brand from friends and family (17%). Additionally, television plays a role in creating awareness about cruise lines, with 2.8 percent of customers saying that TV ads were the reason they selected a cruise line brand.

    JD Power offers the following recommendations to customers when selecting a cruise line:

    • If you’re planning a cruise for your family, choose a cruise line that provides age-appropriate entertainment and a variety of food choices for adults and children.
    • If you are taking a cruise with numerous ports of call find out which cruise line ranks highest for embarking/debarking. The more organized and efficient the cruise line is with both of these metrics, the less stressful the experience may be when leaving and returning to the ship.
    • Taking a cruise with many ports of call is a great way to experience the world. Research all of the ports of call ahead of booking your cruise and plan each excursion so you will have plenty of time to experience everything you’re interested in and get back to the ship on time.

     

    The 2013 Cruise Line Satisfaction Report is based on responses from 3,003 customers who traveled on a cruise line in the past 12 months. The study was fielded from May 29, 2013, through June 14, 2013. Notably, among the five brands ranking above the report average, Royal Caribbean International and Celebrity Cruises are owned by Royal Caribbean Cruises Ltd. Holland America Line and Princess Cruises (both above the report average) and Carnival Cruise Lines (below the report average) are owned by Carnival Corporation & PLC.

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    John Tews; Troy, Mich.; (248) 680-6218; [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. www.jdpower.com/corporate

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  • 2013 Canadian Internet Service Provider Customer Satisfaction Study

    Customers Who Bundle TV, Internet and Phone are Most Satisfied and Likely to Recommend Their Service Provider

    2013-06-27

    jdp-root

    TORONTO: 27 June 2013 — Overall satisfaction is highest among customers who bundle their television, Internet and telephone services with the same provider, and these customers are also likely to recommend their provider to family and friends, according to the JD Power 2013 Canadian Television Provider Customer Satisfaction StudySM and the 2013 Canadian Internet Service Provider Customer Satisfaction StudySM, both released today.

    Key Findings

    1. Eighty-three percent of customers bundle their TV and Internet service with the same provider.
    2. Satisfaction with Internet service providers is highest among customers with fibre optic Internet access.
    3. Forty two percent of customers view television content from their tablet or mobile device.

    The Television Provider Customer Satisfaction Study measures overall satisfaction with television providers based on six factors: performance and reliability; cost of service; programming; communication; customer service; and billing. The Internet Service Provider Customer Satisfaction Study is based on five factors: performance and reliability; cost of service; communication; billing; and customer service.  

    According to the Television Provider Customer Satisfaction Study, 83 percent of customers bundle their TV and Internet service with the same provider, while 17 percent subscribe to just TV service with their telecom provider. Among customers who bundle, 59 percent also have telephone service with their provider—commonly referred to as a triple-play package.

    Overall satisfaction is highest among triple-play customers (690 on a 1,000-point scale), compared with among TV and Internet bundlers (678) and TV-only subscribers (658). With 19 percent of customers indicating they “definitely will” recommend their provider, bundled customers also have higher rates of advocacy, compared to those with only TV and Internet service (17%) or TV service only (12%).

    “Bundling typically provides discounts and has the added convenience of one bill with one provider,” said Adrian Chung, account director at JD Power. “These elements are key drivers of higher satisfaction and provide the stickiness that leads to long-term loyalty.”

    Triple-play customers pay an average of $165(CAD) per month for service, while TV and Internet bundlers pay an average of $156 and TV-only subscribers pay an average of $89. Satisfaction with cost of service is highest among triple-play customers and is lowest among TV-only subscribers.

    Speed Is Key for Internet

    Satisfaction with Internet service providers is highest among customers with fibre optic Internet service. These customers also experience the fewest problems; however, when they do experience an issue with their connection, the decline in satisfaction is more substantial than it is among customers without fibre optic access who experience a connection problem. 

    In addition, only 25 percent of fibre optic customers experience an outage with their Internet connection, compared with 29 percent of DSL customers and 31 percent of cable customers. However, when fibre optic customers do experience an outage, overall satisfaction with their Internet provider drops by 114 points, on average. In comparison, when cable Internet customers experience a problem, overall satisfaction declines an average of 101 points, while DSL customer satisfaction falls by 99 points.

    Overall customer satisfaction among customers with fibre optic Internet access averages 682, compared with 672 among those with cable Internet access and 646 among those with a DSL Internet connection. 

    Internet speed is a key expectation among customers. Among Internet customers with fibre optic access, 15 percent indicate their Internet speed exceeds their expectations, while only 8 percent of both DSL and cable customers indicate the same.

    “While customers with fibre optic connections are very pleased with the speed and reliability of their Internet connection, they also have very high expectations,” said Chung.

    Premium Television Packages Build Loyal Customers

    Among television provider customers, those who subscribe to premium TV service packages have higher rates of loyalty to their provider, as only 16 percent indicate they “will likely” switch to another provider in the next 12 months, compared with 22 percent of basic TV subscribers. Additionally, premium package subscribers are more “likely” to purchase additional services from their provider than are basic TV subscribers (36% vs. 29%, respectively).

    More than one-half (52%) of customers subscribe to HD channels; 42 percent have a PVR/DVR; and 35 percent use or subscribe to video on demand (VOD). Of these, both overall and TV programming satisfaction are highest among VOD subscribers, compared with the Television Provider Customer Satisfaction Study average. 

    The Television Provider Customer Satisfaction Study also finds that 42 percent of customers view content from a mobile device, such as their tablet or mobile phone; however, overall satisfaction among these customers averages 661, lower than among those who watch from their television only (683). 

    “Satisfaction for mobile users suffers because they tend to experience more problems with picture and download speed,” said Chung. “They expect their mobile device to have the same speed and quality as their home TV, and in many cases their expectations are not met.”

    Study Rankings

    East Region

    Vidèotron ranks highest in both television customer satisfaction and Internet customer satisfaction in the East region. Vidèotron has an overall score in television customer satisfaction of 747. Shaw ranks second in the East region with a score of 703, while Cogecoranks third at 685. In Internet customer satisfaction, Vidèotron ranks highest in the East region with a score of 755. Cogeco ranks second (686) and Bell Aliant ranks third (675).

    West Region

    SaskTel ranks highest in both television and Internet service customer satisfaction in the West region. SaskTel achieves an overall score of 730 among television customers. MTS ranks second in the region with a score of 687, followed by TELUS at 684. In Internet customer satisfaction, SaskTel ranks highest with a score of 705, followed by TELUS at 672.

    The 2013 Canadian Television Provider Customer Satisfaction Study and the 2013 Canadian Internet Service Provider Customer Satisfaction Study are based on responses from more than 10,500 telecommunication customers–more than 4,500 customers in the West region and 6,000 customers in the East region. Both studies were fielded in October 2012 and April 2013.

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    Gal Wilder; Cohn & Wolfe; Toronto, Canada; (647) 259-3261; [email protected]
    Beth Daniher; Cohn & Wolfe; Toronto, Canada; (647) 259-3279; [email protected]
    John Tews; JD Power; 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. www.jdpower.com/corporate

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  • 2013 Retail Electric Provider Satisfaction Study

    Satisfaction with Price Is Higher among Retail Electric Customers Than among Local Electric Utility Customers

    2013-06-26

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    WESTLAKE VILLAGE, Calif.: 26 June 2013 — Among retail electric provider residential customers, 41 percent have taken action in the past year to either switch providers, renew with their current retail provider, or sign up for retail service for the first time, with a majority citing price competition as a primary reason for taking action, according to the JD Power 2013 Retail Electric Provider Satisfaction StudySM released today.
    The inaugural study measures satisfaction among residential customers of 71 retail electric providers in eight1 states by examining five key factors: price; communications; corporate citizenship; enrollment/renewal; and customer service.  
    According to the study, 6 percent of customers have switched from another retail electric provider; 11 percent have enrolled for the first time with a retail provider; and 24 percent have renewed with their existing retail electric provider in 2013.  
    Among customers who decided to switch retail electric providers, 64 percent cite price competition offered a better deal as the primary reason they selected their new provider. Price satisfaction is highest among customers in Maryland and Pennsylvania than among those in the other six states included in the study. Retail customers surveyed for this study are more satisfied with price than are customers of local electric utilities2 surveyed for the JD Power 2013 Electric Utility Residential Customer Satisfaction Study.SM
    “As more consumers enter the electric retail market, retail providers will need to continue to find ways to enhance long-term relationships with their current customers, making the option to switch less attractive,” said Jeff Conklin, senior director of the energy practice at JD Power. “Satisfying retail electric customers is an ever-changing process in terms of improving pricing and presenting more attractive offerings and promotions.”
    When looking at overall satisfaction by state, Pennsylvania performs highest among the seven rank-eligible states in the study, with an average overall satisfaction score of 631 on a 1,000-point scale. Following Pennsylvania are Maryland (630); Connecticut and Illinois in a tie (610 each); Massachusetts (603); New York (595); and Ohio (575). Overall customer satisfaction for the industry averages 606.  
    Retail electric provider study rankings by state are:
     
    Connecticut: ConEdison Solutions ranks highest in Connecticut with a score of 651, and performs particularly well in the price factor. Ambit (624) follows ConEdison Solutions in the rankings, performing above the Connecticut state average (610).
    Illinois: Energy Plus ranks highest in Illinois with a score of 633, performing particularly well in the price and corporate citizenship factors. Following Energy Plus in the rankings are First Energy (611) and IGS Energy (610).
    Maryland: Dominion Energy Solutions ranks highest in Maryland with a score of 648, and performs particularly well in the price factor. Washington Gas Energy Services (640) follows Dominion Energy Solutions in the rankings, performing above the Maryland state average (630).
    Massachusetts: Energy Plus ranks highest in Massachusetts with a score of 642, and performs particularly well in the customer service and enrollment/renewal factors. AEP Energy (630) and Direct Energy (629) follow in the rankings.
    New York: Ambit Energy ranks highest in New York with a score of 642, and performs particularly well in the price, communications, enrollment/renewal and customer service factors. Energetix (630) follows Ambit Energy in the rankings, performing above the New York state average (595).
    Ohio: DPL Energy Resources ranks highest in Ohio with a score of 602, and performs particularly well in the price, communications, corporate citizenship and customer service factors. Dominion Energy (584) and Duke Energy (583) follow in the rankings.
    Pennsylvania: PPL EnergyPlus ranks highest in Pennsylvania with a score of 635, and performs particularly well in the communications and corporate citizenship factors. Energy Plus (634) follows PPL EnergyPlus in the rankings, performing above the Pennsylvania state average (631).
    1New Jersey is included in the study, but retail electric providers are not ranked due to an insufficient number of eligible brands. 

    2Local electric utilities refers to regulated utilities.

    JD Power offers the following tips for consumers when shopping for or when considering switching retail electric providers:
    • When comparing providers, look at not only their prices, but also their monthly fees, contract term length and cancellation fees.
    • Most states, as well as some third-party services, offer shopping websites that compare current market offerings. Search online for electric choice in your state.
    • Many providers offer additional incentives to switch or renew, so ask about the opportunity to receive airline miles, gift cards or other discounts.
    • Ask your friends and neighbors about their experiences with retail electric providers in terms of customer service responsiveness when dealing with questions or problems.
     
    The 2013 Retail Electric Provider Satisfaction Study is based on responses from more than 14,800 retail electric residential customers of 71 retail electric providers in eight states regarding their experiences with their retail electric provider. The study was fielded in April and May 2013.
     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected] 
    John Tews; 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. www.jdpower.com/corporate

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  • 2013 U.S. Auto Insurance Study

    Auto Insurance Customer Satisfaction Declines Compared with 2012 Primarily Due to Higher Rates

    2013-06-24

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    WESTLAKE VILLAGE, Calif.: 24 June 2013 — Driven by lower satisfaction with price and policy offerings, overall customer satisfaction with auto insurance companies declines in 2013 from an all-time high in 2012, but remains comparatively high relative to the previous decade, according to the JD Power 2013 U.S. Auto Insurance StudySM released today.
    The study measures customer satisfaction across five factors: interaction, price, policy offerings, billing and payment and claims. Overall satisfaction with auto insurance companies is 794 (on a 1,000-point scale), down 10 points from 2012. Despite this drop, satisfaction in 2013 is the second-highest level since the study launched in 2000.
    Scores across all five factors have decreased year over year, with price and policy offerings both declining by 13 points. These two factors are the primary forces contributing to lower overall satisfaction.
    “In 2013, there is a sharp rise in the number of customers who have experienced premium increases,” said Jeremy Bowler, senior director of the global insurance practice at JD Power. “The dollar amount of those increases is also larger, averaging $153 in 2013, compared with an average rate increase of $113 reported in the 2012 study.”
    There is a direct relationship between the size of the premium increase and the proportion of affected customers who switch insurers. While only 9 percent of customers who experienced an annual rate increase of $50 or less switched insurers, the switching rate nearly doubles to 18 percent when the increase is between $51 and $100, and to 32 percent when the increase is more than $200.
    Customers are More Tolerant of Rate Increases When Their Insurer Communicates Reasons
    Rather than making changes to their existing policy, many customers are opting to shop and switch to a new insurer when their rates go up. This is because many companies are not adequately notifying customers prior to sending a renewal letter or making efforts to review possible options customers may take to mitigate the impact of a rate change.  When customers receive pre-notification, and discuss their options prior to renewal, satisfaction averages 698, 67 points higher than among customers whose did not get to discuss a rate increase prior to renewal.
    “In today’s low-interest market, many insurers are filing for new rate structures in order to rectify underwriting losses,” said Bowler. “To prepare for the likely downturn in customer sentiment and risk of increased attrition following a premium increase, insurers need to do a better job of proactively reaching out to their customers and explaining the reasons behind the rate increases.”
    The study finds that only 16 percent of customers with a rate increase indicate that they had a discussion with their insurer regarding potentially changing their coverage.
    Among the five factors, price satisfaction is lowest at 716—more than 100 points lower than the average scores for interaction and claims. 
    “Generally, customers typically have little understanding of how their rates are set by their insurer, or why prices may vary by sometimes hundreds of dollars between companies when they shop for multiple quotes,” said Bowler. “We’ve seen many companies focus on communicating discounts to strengthen customer perception of value. But the introduction of personal driving data characteristics in establishing discounts, and hence rates, represents another significant step forward for the industry in terms of better communicating price to customers.”
    Regional Overview
    The study has expanded its regional methodology in 2013 to include 11 regions, including four state-specific regions. Similar to the overall industry, satisfaction has declined in each of the regions, compared with 2012, although the magnitude of the change varies by region.
    California: Wawanesa (820) ranks highest among award-eligible insurers in the California region, followed by State Farm (812) and The Hartford (811).
    Central: State Farm (833) ranks highest among award-eligible insurers in the Central region, followed by Auto-Owners Insurance (821) and Shelter (817).
    Florida: MetLife (808) ranks highest among award-eligible insurers in the Florida region, followed by The Hartford (802) and State Farm (800).
    Mid-Atlantic: State Farm (836) ranks highest among award-eligible insurers in the Mid-Atlantic region, followed by Erie Insurance (826) and GEICO and The Hartford in a tie (811 each).
    New England: Amica Mutual (850) ranks highest among award-eligible insurers in the New England region, followed by GEICO and State Farm in a tie (794 each) and The Hartford (793). 
    New York: New York Central Mutual (814) ranks highest among award-eligible insurers in the New York region, followed by State Farm (807) and Travelers (783).
    North Central: Auto-Owners Insurance (833) ranks highest among award-eligible insurers in the North Central region, followed by State Farm (824) and Erie Insurance (823).
    Northwest: PEMCO Insurance (834) ranks highest among award-eligible insurers in the Northwest region, followed by The Hartford (820) and Mutual of Enumclaw (813).
    Southeast: Tennessee Farm Bureau (850) ranks highest among award-eligible insurers in the Southeast region, followed by State Farm (822) and North Carolina Farm Bureau (821).
    Southwest: State Farm (824) ranks highest among award-eligible insurers in the Southwest region, followed by The Hartford (821) and GEICO (809).
    Texas: Texas Farm Bureau (862) ranks highest among award-eligible insurers in the Texas region, followed by GEICO (815) and State Farm (810).
    Compared with 2012, the Central region declines the least in overall satisfaction (four points), while the Texas region declines the most (23 points). 
    New Jersey Manufacturers Insurance Company (NJM) and USAA also achieve high levels of customer satisfaction in the study, although they are not included in the rankings due to the closed natures of their respective memberships. 
     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.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]  
    John Tews; 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. www.jdpower.com/corporate

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  • June 2013 Monthly Automotive Sales Forecast

    New-Vehicle Retail Sales Are Heating Up with the Start of the Summer Selling Season

    2013-06-21

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    WESTLAKE VILLAGE, Calif.: 21 June 2013 — New-vehicle retail sales are continuing their positive trend in June, with no signs of letting up at the start of the summer selling season, according to a monthly sales forecast developed jointly by the Power Information Network® (PIN) from JD Power and LMC Automotive.

    Retail Light-Vehicle Sales
    New-vehicle retail sales in June are projected to come in at 1,118,800 vehicles, which represent a seasonally adjusted annualized rate (SAAR) of 13.2 million units, a healthy increase of 500,000 from the May SAAR. Retail transactions are the most accurate measure of true underlying consumer demand for new vehicles.
    U.S. Retail SAAR–June 2012 to June 2013
    (in millions of units)

    While sales overall are strong, not all segments are selling at the same pace. Sales of premium vehicles account for just 11.7 percent of new-vehicle retail sales thus far in June, down from 12.9 percent in June 2012.
    The underperformance of premium light-vehicle sales is largely due to the age of the models in these segments. JD Power calculates that the average age—the number of months the vehicle has been in the market since it was introduced or redesigned—of premium models  sold in the second quarter of 2013 was 43 months. In comparison, the average age of non-premium models—excluding pickup trucks—is only 34.5 months. 
    JD Power expects that by the second quarter of 2014, the average age of premium products will fall to just 33 months, as new and redesigned products enter the marketplace.
    The strong selling pace continues to be matched by strong transaction prices. Thus far in June, the average transaction price of new vehicles is $28,900—the highest ever for the month of June.
    “Although the premium segment growth has lagged non-premium, there is some good news for the industry in that the average price of premium vehicles in June is $47,000, up almost 4 percent from June 2012,” said John Humphrey, senior vice president of the global automotive practice. “New premium vehicles entering the market late this year will also help bolster sales through the second quarter of 2014.”
    Total Light-Vehicle Sales
    Total light-vehicle sales in June 2013 are expected to grow by 12 percent from June 2012 to 1,380,800 units. Fleet sales in June are just 19 percent of total sales. Fleet volume for the month is projected at 262,000 units. 
    JD Power and LMC Automotive U.S. Sales and SAAR Comparisons


    1Figures cited for June 2013 are forecasted based on the first 13 selling days of the month.

    2The percentage change is adjusted based on the number of selling days in the month (26 days in June 2013 vs. 27 days in June 2012).

    Sales Outlook 
    LMC Automotive continues to hold the outlook for total light-vehicle sales in 2013 at 15.4 million units, but has increased its forecast for retail light-vehicle sales to 12.6 million units from 12.5 million units, as retail sales growth expands.
     
    “There is little question that the automotive market has strong momentum as we close out the first half of 2013,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “Looking forward, all the key fundamentals are in alignment to continue the current growth trend, with production capacity limitations being the only major visible risk.”
     
    North American Production
    North American light-vehicle production through June is up nearly 5 percent, compared with the same period in 2012. Ford’s 16 percent increase in production thus far in 2013 is leading all manufacturers, with a significant portion of its increase driven by sales boosts for the new Escape and Fusion, as well as its F-Series pickups. 
    Vehicle inventory levels in early June are holding at 3.2 million units–a 57-day supply, which is down from 64 days last month.
     
    LMC Automotive’s forecast for 2013 North American production remains at 16.0 million units, with capacity utilization now at a lean 90 percent.
     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    About LMC Automotive

    LMC Automotive, formerly JD Power Automotive Forecasting, is the premier supplier of automotive forecasts and intelligence to an extensive client base of automotive manufacturer, component supplier, logistics and distribution companies, as well as financial and government institutions around the world. LMC’s global forecasting services encompass automotive sales, production and powertrain expertise, as well as advisory capability. LMC Automotive has offices in the United States, the UK, Germany, China and Thailand and is part of the Oxford, UK-based LMC group, the global leader in economic and business consultancy for the agribusiness sector. For more information please visit www.lmc-auto.com.

    Media Relations Contacts:

    John Tews; JD Power; Troy, Mich.; (248) 680-6218; [email protected]
    Emmie Littlejohn; LMC Automotive; Troy, Mich.; (248) 817-2100; [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 of JD Power or LMC Automotive. www.jdpower.com/corporate www.lmc-auto.com

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  • Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services – Call Center Certification

    Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services’ Call Centers Recognized for Providing An Outstanding Customer Service Experience For A Fourth Consecutive Year

    2013-06-20

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    WESTLAKE VILLAGE, Calif.: 20 June 2013 — Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services has been recognized for call center operation customer satisfaction excellence under the JD Power Call Center Certification ProgramSM. The Certified Call Center Program distinction acknowledges a strong commitment by Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services service call center operations to provide “An Outstanding Customer Service Experience.”


    To become certified, the call centers successfully passed a detailed audit of more than 100 practices that encompass their recruiting, training, employee incentives, management roles and responsibilities, and quality assurance capabilities. As part of its evaluation, JD Power conducted a random survey of Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services customers who recently contacted its call centers in Charlotte, N.C.; Jacksonville, Fla.; Norfolk, Va.; and Brea, Calif. 


    “In achieving this certification for the fourth consecutive year, Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services has demonstrated that they are committed to providing an outstanding service experience to customers contacting its call centers,” said Mark Miller, senior director at JD Power. 


    For certification status, a call center must also perform within the top 20 percent of customer service scores, which are based on benchmarks established in JD Power cross-industry customer satisfaction research. The evaluation criteria include the customer service representative’s courtesy, knowledge and concern for the customer; promptness in speaking to a person; and timely resolution of the problem or request. Additionally, the experience with the automated phone system is evaluated based on the clarity of the information provided, the ease of navigating the phone menu prompts and the ease of understanding the phone menu instructions.

     

    “In today’s global marketplace, it’s essential that we set ourselves apart from the competition and connect with our clients in new and better ways,” said Bill Pappas, Chief Information Officer of Global Wholesale Banking Technology & Operations at Bank of America Merrill Lynch. “Our Corporate and Commercial contact centers are doing just that – they’re putting our clients first by ensuring every interaction is effortless, meaningful and unmatched. We appreciate being recognized by JD Power for delivering an outstanding experience for the fourth year in a row.” 


    “Companies of all sizes have more financial needs than ever, and we’re proud to provide industry-leading service while bringing our full range of solutions to customers in the U.S. and around the world,” said Alastair Borthwick, head of Global Commercial Banking at Bank of America Merrill Lynch. “We’re committed to helping our clients grow their businesses, and we appreciate this recognition by JD Power.”


    The Certified Call Center Program was launched by JD Power in 2004 to evaluate overall customer satisfaction with call centers and to help call centers in various industries increase their efficiency and effectiveness by establishing and continually updating leading practices for handling service calls.


    For more information on the Certified Call Center Program, please visit JDPower.com.

     

    About JD Power


    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.


    About McGraw Hill Financial


    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.


    Media Relations Contacts:


    John Tews; Troy, Mich.; (248) 680-6218; [email protected]
    Mark Pipitone; Bank of America; Charlotte, N.C.; (980) 387-4907; [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. www.jdpower.com/corporate


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  • 2013 JD Power Initial Quality Study (IQS)

    Nearly Two-Thirds of Problems Owners Experience With Their New Vehicle Are Design-Related; Few Can be Fixed

    2013-06-20

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    WESTLAKE VILLAGE, Calif.: 19 June 2013 — The majority of problems owners experience with their new vehicle in the first 90 days of ownership are design-related rather than manufacturing defects. These design problems are far less likely to be successfully resolved at the dealership than are defects, according to the JD Power 2013 U.S. Initial Quality StudySM (IQS) released today at an Automotive Press Association luncheon at the Detroit Athletic Club.

    The JD Power Initial Quality Study, which serves as the industry benchmark for new-vehicle quality, has been redesigned for 2013. The study has been enhanced to better measure the quality of today’s vehicles, particularly problems related to new technologies and features now being offered. In addition, the study, now in its 27th year, allows for more detailed feedback from new-vehicle owners.

    Nearly two-thirds of the problems experienced in the first 90 days of ownership are related to the vehicle’s design, as opposed to components that malfunction. For example, the component may be working as designed, but owners deem it a problem because it may be difficult to understand or operate.

    Because design problems are not the result of a breakdown or malfunction, just 9 percent of these problems are taken to a dealership within the first 90 days of ownership. When owners take their vehicle to a dealership for a design-related issue, the problem is fixed only 13 percent of the time. In contrast, 28 percent of owners who experience a defect or malfunction with their vehicle within the first 90 days of ownership take it to a dealership, and 42 percent of the time the dealership is able to fix the problem.

    “Automakers are investing billions of dollars into designing and building vehicles and adding technologies that consumers desire and demand, but the risk is that the vehicle design, or the technology within the vehicle, in some cases may not meet customer needs,” said David Sargent, vice president of global automotive at JD Power. “Keep in mind that automakers are trying to design vehicles that appeal to a broad array of consumers, and what works for the majority may not work for all. The successful companies will be those automakers that find a way to give customers the technology they want while at the same time making it sufficiently intuitive so all customers find it easy to use.”

    Overall initial quality for the industry averages 113 problems per 100 vehicles (PP100).1 The study finds that many of the problems owners have with their vehicle relate to the driver interface, which includes voice recognition or hands-free technology, Bluetooth pairing for mobile phones, and the navigation system, among others.

    According to Sargent, some of these problems may be mitigated at the time of purchase by the salesperson explaining how to use the technology, and others may be remedied with software changes. However, features that are difficult for owners to operate, hard to understand, or inconveniently located in the vehicle likely will remain a problem for the life of the vehicle.

    “Owners desire, and in some cases are demanding, more content in their new vehicles, especially technology-related features, and automakers are trying to provide it,” said Sargent. “The majority of owners don’t experience problems, but those who do are frustrated. That’s understandable, especially when owners often keep their new vehicle for five years or more. In contrast, when consumers have a problem with their smartphone, they are likely to replace the phone much sooner.”

    2013 IQS Ranking Highlights
    Porsche ranks highest among nameplates included in the study, averaging 80 PP100. GMC ranks second with 90 PP100, and Lexus ranks third with 94 PP100. Infiniti (95 PP100) and Chevrolet (97 PP100) round out the five highest-ranked positions.

    Among the 26 model-level segment awards, Chevrolet receives five, while Honda, Kia, Mazda and Porsche each receive two. Chevrolet models receiving an award are the Avalanche (tie), Camaro (tie), Impala, Silverado HD and Tahoe. Honda receives awards for the Civic and CR-V; Kia for the Soul and Sportage (tie); Mazda for the MAZDA2 and MX-5 Miata; and Porsche for the Boxster and 911.

    The Lexus LS ranks highest in the Large Premium Car segment and achieves 59 PP100, the lowest average problem level among all models in the study.

    Also receiving segment awards are Acura TL; Buick Encore (tie); Cadillac Escalade; Chrysler Town & Country; Ford Mustang (tie); GMC Sierra LD (tie); Hyundai Genesis Sedan; Infiniti FX; Mercedes-Benz GLK-Class; Nissan Murano; smart fortwo; and Toyota Camry.

    Plant Assembly Line Quality Awards
    Toyota Motor Corporation’s Lafayette B Plant (SIA) in Indiana, which produces the Toyota Camry, receives the Platinum Plant Assembly Line Quality Award for producing models that yield the fewest defects or malfunctions. Plant awards are based solely on average levels of defects and malfunctions and exclude design-related problems.

    Among plants in the Asia Pacific region, the Toyota Motor Corporation Yoshiwara, Japan, (TABC) plant, which produces the Lexus LX and Toyota Land Cruiser, receives a Gold Plant Assembly Line Quality Award.

    In the Europe and Africa region, Audi AG receives a Gold Plant Assembly Line Quality Award for its Neckarsulm, Germany, plant, which produces the Audi A4, A5, A6, A7 and A8.

    The 2013 U.S. Initial Quality Study is based on responses from more than 83,000 purchasers and lessees of new 2013 model-year cars, trucks and multi-activity vehicles surveyed after 90 days of ownership. The study is based on a 233-question battery designed to provide manufacturers with information to facilitate identification of problems and drive product improvement. The study was fielded between February and May 2013.

    The study is used by manufacturers worldwide to improve quality and by consumers to help them make more informed purchasing decisions. Throughout the years, initial quality has been shown to be a leading indicator of long-term durability, which directly impacts customer loyalty and purchase decisions.

    About JD Power

    Headquartered in Westlake Village, Calif., JD Power is a global marketing information services company providing 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 is a business unit of McGraw Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial, a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw-Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at http://www.mhfi.com.

    JD Power Media Relations Contacts

    John Tews; Troy, Mich.; 248-680-6218; [email protected]
    Syvetril Perryman; Westlake Village, Calif.; 805-418-8103; [email protected]

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

    Follow us on Twitter: @JDPower

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    1 Due to the redesign of the Initial Quality Study, problems per 100 vehicles (PP100) scores for the 2013 study cannot be compared with PP100 scores from previous years.