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  • 2013 U.S. Primary Mortgage Servicer Satisfaction Study

    Customer Satisfaction Improves as Primary Mortgage Servicers Strive to Comply with New Regulations

    2013-07-18

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    WESTLAKE VILLAGE, Calif.: 18 July 2013 — New business practices instituted in the wake of nationwide reforms appear to be contributing to the increase in overall customer satisfaction with primary mortgage servicers, according to the JD Power 2013 U.S. Primary Mortgage Servicer Satisfaction StudySM released today.

    The study measures satisfaction in four factors of the mortgage servicing experience: billing and payment process; escrow account administration; website; and phone contact. Overall satisfaction with primary mortgage servicers has increased to 733 (on a 1,000-point scale) from 725 in 2012. 

    Overall satisfaction substantially increases year over year, as performance at large national servicers improves. However, overall satisfaction with some smaller national servicers that have performed well-above average in previous studies has shifted toward the industry average. This leveling off is potentially the result of an increase in new clients combined with a new set of rules released by the Consumer Financial Protection Bureau (CFPB)—effective January 2014—which has had many firms focused on ensuring their policies and procedures are fully compliant.

    One of the overarching concerns covered by the CFPB addresses general servicing policies and procedures. Under these new rules, servicers are required to have systems, policies and procedures in place to ensure customers receive the appropriate information and support from servicers. “This study helps gauge the effectiveness of firms’ servicing capabilities from the customer’s perspective,” said Craig Martin,director of the financial services practice at JD Power. “The fact that satisfaction continues to increase seems to indicate that changes being made in response to these new regulations are having a positive impact on the experience of customers.”

    Reforms have also emerged from the National Mortgage Settlement, an agreement reached in February 2012 between 49 state attorneys general and the country’s largest mortgage servicers, which include Bank of America; CitiMortgage; J.P. Morgan Chase; and Wells Fargo. The settlement requires these firms to make several changes to the way they service policies, including adequately training staff; ending improper fees and dual tracking; maintaining better communication; and appointing a single point of contact for loss mitigation efforts.

    Without a single point of contact, customers in a distressed credit situation may receive mixed messages and become confused, especially concerning loan modifications and foreclosures. Funneling all customer communications through one mortgage representative may help ensure consistency and clarity, thereby creating a more satisfying customer experience. Overall satisfaction among customers who indicate they had a single point of contact is 154 index points higher than among those who indicate they worked with multiple representatives. Servicers may also benefit by reducing the extra staffing required to respond to the additional demands created by customers making multiple contacts regarding the same topic. 

    “For now, these five servicers are the only ones required to abide by the terms of the settlement, but the fact that they are also posting large increases in customer satisfaction scores is telling,” said Martin. “The new policies governing communication, particularly the appointment of a single point of contact, might easily become the de facto standard for problem resolution across all mortgage servicers in the near future.”

    The importance of improving communication is readily apparent in escrow account administration, as reflected in the 21-point increase in satisfaction from 2012—the largest increase among the four study factors. Escrow payments are among the most difficult aspects for customers to understand, making straightforward communication critical. Year-over-year satisfaction ratings have increased for all three attributes that comprise the escrow account administration factor: management of escrow payments; effectiveness of communication; and ease of understanding how the escrow payment applies to the loan.

    “We have seen an increase in the use of escrow analysis guides, which are very helpful in explaining how the escrow process works. While there isn’t a silver bullet, mortgage servicers that focus on the Voice of the Customer and improve communication by being more proactive and using various methods to provide information to borrowers appear to be reaping the benefits through higher levels of satisfaction,” said Martin.

    BB&T Ranks Highest in Customer Satisfaction for a Fourth Consecutive Year

    BB&T (Branch Banking & Trust Co.) continues to rank highest in customer satisfaction among primary mortgage servicers for a fourth consecutive year, with a score of 765, despite a 38-point decline from 2012. Regions Mortgage ranks second with a score of 764, and SunTrust Mortgage ranks third with a score of 762.

    Consumer Tips

    Consumers do not have to rely solely on the business practices of their mortgage servicer to ensure a satisfying experience. To help avoid negative experiences, JD Power offers the following tips for consumers.
    • Be an educated consumer. Those who are most aware of their options and rights are the most satisfied customers, according to the study.
    • Request a single point of contact. This is especially important in distressed credit situations where multiple conversations may be necessary and having to work with multiple representatives may result in miscommunication or misunderstanding.
    • Understand alternative payment options. For instance, many firms offer the option of making more than one monthly payment or paying more toward the loan balance ahead of schedule. While you will have to pay more frequently, you will ultimately pay less over the lifetime of the loan.

    The 2013 U.S. Primary Mortgage Servicer Satisfaction Study is based on responses from 4,669 customers  regarding their experiences with their primary mortgage servicer and was fielded between April 17, 2013 through May 8, 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 Canadian Retail Banking Customer Satisfaction Study

    Canadian Retail Banking Customer Satisfaction Improves as Customers Increasingly Understand Fees and Services; However, Customers Still Perceive Banks as Profit Driven, Lagging in Innovation and Not Customer Focused

    1970-01-01

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    TORONTO: 18 July 2013 — Overall customer satisfaction with the Big 5 1 and Midsize banks in Canada has increased, driven primarily by customers’ increasing understanding regarding fees and services. However, customers perceive banks as being profit driven, lagging in innovation and not customer focused, according to the JD Power 2013 Canadian Retail Banking Customer Satisfaction StudySM released today. 

    The study, now in its eighth year, examines customer satisfaction with their primary financial institution in three segments: Big 5 Banks, Midsize Banks and Credit Unions. In all segments, customer satisfaction is measured in seven factors (listed in order of importance): channel activities; account information; facilities; product offerings; fees; financial advisor; and problem resolution.

    Key Findings

    • Overall customer satisfaction with Canadian retail banks increases by 19 points to 772 in 2013.
    • Customer satisfaction with banking fees has increased substantially by 35 points in 2013 to 627 from 592 in 2012.
    • Customers increasingly understand their bank fee structures and services.

    Overall customer satisfaction among retail bank customers in Canada increases substantially by 19 points to 772 (on a 1,000-point scale), compared with 753 in 2012, as customers increasingly understand their banks’ fees and services. Satisfaction in the Big 5 Banks segment increases to 765 from 748 in 2012. Customer satisfaction in the Midsize Banks segment increases to 778 from 759 in 2012. Despite this increase in overall satisfaction, 32 percent of  Big 5 Bank customers perceive their bank as being more profit driven and less customer focused, up from 24 percent in 2012. Among Midsize Bank customers, 19 percent share this sentiment, compared with 15 percent in 2012. 

    Retail banking customers in Canada have high expectations when it comes to using technology to conduct their banking business. Banks may not be meeting these expectations, especially in mobile, which may be driving the lower ratings for innovation provided by customers. In 2013, 58 percent of customers perceive their bank as being technologically innovative, down from 66 percent in 2012. While mobile penetration is not catching on as fast in Canada, compared with the United States (8% vs. 18%, respectively) banks could help raise mobile banking penetration and customer satisfaction by improving their mobile offerings.  Providing a mobile banking option is critical in migrating routine transactions, especially deposits, out of the branch, helping to reduce bank costs while providing convenience for customers. 

    During the past 12 months, mobile banking customers in Canada have used mobile to conduct a banking transaction 33 times, on average, compared with 51 times in the United States. Transactions may include making a deposit, transferring money from one account to another, finding a location, checking an account balance or paying a bill, depending upon the services offered by the bank.

    “Banks have an opportunity to increase customer satisfaction by offering convenient mobile banking options, but that isn’t enough in a highly competitive market. Banks must also execute well during key customer touch points or ‘moments of truth,’ such as opening a new account, problem resolution and handling financial needs associated with life-changing events,” said Jim Miller, senior director of the banking practice at JD Power. “Banks need to provide a highly satisfying experience during these moments of truth in order to achieve a profoundly positive impact on customer satisfaction.” 

    Customer satisfaction with banking fees has increased substantially by 35 points to 627 from 592 in 2012. As customers gain a greater understanding regarding fees and services, satisfaction increases. According to the study, 31 percent of customers understand their fee structure, up from 28 percent in 2012. In 2013, fewer customers have experienced a fee change than in 2012 (21% vs. 27%, respectively). As customers take more control of their banking services, the percentage of customers paying monthly maintenance fees at least once during the year has declined to 45 percent from 49 percent in 2012.

    Problem resolution satisfaction has improved by 26 points to 620, compared with 594 in 2012. As customers gain a better understanding of their fee structure, problem incidence declines (14% in 2013 vs. 17% in 2012), and satisfaction with problem resolution increases.

    Loyalty and advocacy have also improved in 2013, with 42 percent of retail banking customers saying they “definitely will” reuse their retail bank, compared with 39 percent in 2012. With respect to advocacy, more than one-third of customers say they “definitely will” recommend their bank. Overall, the brand reputation of banks (good reputation vs. bad reputation) in 2013 has slightly improved from 2012. In addition, customers perceive they are getting a better value from their bank.

    Study Rankings

    TD Canada Trust ranks highest in overall customer satisfaction among Big 5 Banks for an eighth consecutive year, achieving a score of 781. TD Canada Trust performs well in all seven factors, especially in facilities.

    Among Midsize Banks, ING Direct Canada ranks highest in overall customer satisfaction with a score of 839. ING Direct Canada performs particularly well in fees, account information, channel activities and product offerings.

    The 2013 Canadian Retail Banking Customer Satisfaction Study is based on responses from more than 21,000 customers who use a primary financial institution for personal banking. The study includes the largest financial institutions–banks and credit unions2 –in Canada and was fielded May 7, 2013, through May 24, 2013.

    [1] Big 5 Banks include BMO Bank of Montreal, CIBC, RBC Royal Bank, Scotiabank and TD Canada Trust. Midsize Banks include Alterna Bank, ATB, HSBC  Bank Canada, ING Direct Canada, Laurentian Bank of Canada, Manulife Bank, National Bank of Canada, and President’s Choice Financial. Credit Unions include all credit union data collected.

    [2]Rankings are not provided for credit unions, as they do not meet market share requirements for the study.

    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 Electric Utility Residential Customer Satisfaction Study

    Price and Billing/Payment are Primary Drivers of Increased Overall Customer Satisfaction with Electric Residential Utilities

    2013-07-17

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    WESTLAKE VILLAGE, Calif.: 17 July 2013 — Despite ongoing severe weather across the United States resulting in longer outage periods per event, customer satisfaction with residential electric utilities has increased substantially from 2012 driven primarily by improvements in billing/payment, price and outage communications, according to the JD Power 2013 Electric Utility Residential Customer Satisfaction StudySM, released today.
    The study, now in its 15th year, measures customer satisfaction with electric utility companies by examining six factors: power quality and reliability; price; billing and payment; corporate citizenship; communications; and customer service. 
    Overall satisfaction among residential customers of electric utilities has increased substantially in 2013 to 639 (on a 1000-point scale), up 14 points from 2012. While performance in all factors improves in 2013, billing and payment satisfaction (719) increases by a notable 19 points, the largest increase among the six factors. Power quality and reliability, an important driver of customer satisfaction and the second-highest-scoring factor, has improved to 692 from 677 in 2012. Communications satisfaction increases for a third consecutive year, climbing to 585 in 2013 from 579 in 2012 and 575 in 2011. Satisfaction scores in price (551) and customer service (706) are the highest they have been in the past four years, with customer service increasing by 9 points from 2012. 
    With severe weather events across the United States, longer outages were reported in 2012, yet, electric utilities have improved their outage communications before, during and after these events. Satisfaction increases when utilities proactively communicate outage information regularly and clearly via the channels customers prefer, including utility-initiated phone calls, emails, text messages and social media sites. 
    “In addition to improving outage communication, electric utilities have made great strides in improving customer perceptions regarding billing and payment,” said Jeff Conklin, senior director of the energy practice at JD Power. “With such a dramatic increase in billing and payment satisfaction in the 2013 study, it’s clear that the electric utilities have listened to the Voice of the Customer by providing them with many choices to receive and pay their bill and with improved information on their billing statements.”
    According to the study, satisfaction increases when customers are offered billing and payment options. Satisfaction among customers who select their own payment due date is 756, compared with 714 among those who do not select a due date. Satisfaction among customers who receive an electronic bill is 745, compared with 709 among those who receive only a paper statement. Among customers who are on a fixed budget bill payment plan, satisfaction is 736, compared with 718 among those who are not on this plan. Billing and payment satisfaction increases by 54 points when billing statements include a consumption graph (740). Satisfaction is highest among customers who use their utility’s online website to check their account or pay a bill (742), followed by auto-deductions from a bank account (736); recurring credit card payments (726); and through bank’s online bill payment (717). The percentage of customers who mail their payment has decreased to 26 percent in 2013 from 29 percent in 2012, indicating that customers are using alternative payment options.
    Price satisfaction improves substantially for a second consecutive year (+12 points), as customers indicate lower average bill amounts, down $3 per month from 2012 to $132. Price satisfaction is 101 points higher among customer who say they are “very familiar” with their utility’s energy-saving programs than among those who say they are only “somewhat familiar.”
    Power quality and reliability (PQ&R) increases by 15 points in 2013, driven by a 19-point increase in the West region. The study finds that utilities have increased their number of communications with customers regarding lengthy outages in 2013. The most satisfying sources of outage information are emails from the utility (762 PQ&R); text messages from the utility (736); utility’s social media site (724); calls from the utility (718); and customer emails sent to the utility (703).

    Study Rankings

    The Electric Utility Residential Customer Satisfaction Study ranks midsize and large utility companies in four geographic regions: East, Midwest, South and West. Companies in the midsize utility segment serve between 125,000 and 499,999 residential customers, while companies in the large utility segment serve 500,000 or more residential customers.
    East Region
    PPL Electric Utilities ranks highest among large utilities in the East region, followed by Central Maine Power; Duquesne Light; and West Penn Power, respectively.
    Among midsize utilities in the East region, Southern Maryland Electric Cooperative ranks highest for a sixth consecutive year, followed by Penn Power; Delmarva Power; and Met-Ed, respectively.
    Midwest Region
    MidAmerican Energy ranks highest in the large utility segment in the Midwest region for a sixth consecutive year. We Energies; Alliant Energy; and Xcel Energy-Midwest follow, respectively.
    Omaha Public Power District ranks highest in the midsize utility segment in the Midwest region for a sixth consecutive year and receives an award in the study for a 13th consecutive year. Following Omaha Public Power District in the segment rankings are Kentucky Utilities; Wisconsin Public Service; and Indianapolis Power & Light, respectively.
    South Region
    OG&E ranks highest in the large utility segment in the South region, followed by FPL; Georgia Power; and CPS Energy, respectively. 
    Sawnee EMC ranks highest in the midsize utility segment in the South region, followed by Jackson EMC; Clay Electric Cooperative; and NOVEC, respectively. 
    West Region
    Salt River Project (SRP) ranks highest in the large utility segment in the West region for a sixth consecutive year and receives an award in the study for a 12th consecutive year. Following Salt River Project in the segment rankings are SMUD; Portland General Electric; and APS, respectively.
    Clark Public Utilities ranks highest in the midsize utility segment in the West region for a sixth consecutive year, followed by Colorado Springs Utilities; Seattle City Light; and Snohomish County PUD, respectively.
    JD Power offers the following tips to consumers:
    • Customers should register their account online at their utility’s website to get access to detailed account history.
    • Customers who want to go paperless should sign up for e-bill statements from their utility.
    • Many utilities now offer text or email notifications and alerts, such as reminders about usage toward a budgeted amount or outage updates.
    • Some utilities now have smartphone apps that allow you to review and pay your bills or to report outages.
    The 2013 Electric Utility Residential Customer Satisfaction Study is based on responses from 102,734 online interviews conducted from July 2012 through May 2013 among residential customers of the 126 largest electric utility brands across the United States, which collectively represent nearly 94 million households. 
     

    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 Laundry Appliance Satisfaction Study and the 2013 Kitchen Appliance Satisfaction Study

    Product Performance and Reliability are Key to Overall Customer Satisfaction with Laundry and Kitchen Appliances; Warranty Importance Increases

    2013-07-17

    jdp-root

    WESTLAKE VILLAGE, Calif.: 17 July 2013 — While customer satisfaction with major appliances is primarily driven by performance and reliability, warranty has become increasingly important during the past few years, according to the JD Power 2013 Laundry Appliance Satisfaction StudySM and the JD Power 2013 Kitchen Appliance Satisfaction StudySM released today. 

    The Laundry Appliance Satisfaction Study and the Kitchen Appliance Satisfaction Study, now in their eighth and ninth years, respectively, measure customer satisfaction in five categories of major home appliances: clothes washers; clothes dryers; dishwashers; cooktops/ranges/ovens; and refrigerators. Overall customer satisfaction is measured in six factors: ease of use; features (such as the usefulness of settings available and capacity); performance and reliability (including how well the appliance functions, noise level and energy efficiency); price; styling and appearance; and warranty.

    While product-specific factors continue to drive satisfaction with kitchen appliances in 2013, the importance of price and warranty increases in 2013. Both warranty and ease of use have a larger impact on satisfaction with laundry appliances in 2013 than in 2012.

    The length and scope of warranty contributes approximately one-tenth to overall customer satisfaction across all major appliances, which has increased by nearly 2 percentage points during the past three years. For laundry appliances specifically, there has been a similar increase in the importance of the ease of use factor, which is the second-most-important driver of satisfaction in 2013 and represents approximately one-fifth of the overall customer experience. For kitchen appliances, the price factor has increased in importance by 2 percentage points and comprises about 15 percent of overall customer satisfaction in 2013.

    “We continue to see a tightening of scores among the highest-ranked brands, which is very telling in that, although specific brands have specific strengths, in the end there are a number of brands delivering an outstanding customer experience,” said Christina Cooley, director in the home improvement industries practice at JD Power. “In this extremely competitive environment, brands that have already proven themselves through their products will likely be able to further differentiate through their relationships with their customers, as demonstrated through their warranty, and ultimately providing a consistent and strong value message that incorporates both the product and long-term relationship with customers.”

    Laundry Appliance Satisfaction Study

    Clothes Washers

    Samsung ranks highest in customer satisfaction with clothes washers for a fifth consecutive year, achieving a score of 822 on a 1,000-point scale. Samsung performs particularly well in three factors: performance and reliability; ease of use; and price. Samsung is followed in the rankings by LG (818) and Kenmore Elite (816). Kenmore Elite and Electrolux also perform above the clothes washer industry average.

    Clothes Dryers

    LG ranks highest in customer satisfaction with clothes dryers (821). LG performs particularly well in performance and reliability; ease of use; styling and appearance; features; and warranty. Following LG in the rankings is Samsung (820).

    Kitchen Appliance Satisfaction Study

    Refrigerators

    With a score of 817, Sub-Zero has regained its highest ranking in customer satisfaction with refrigerators, a position it held previously in 2011. Sub-Zero performs particularly well in ease of use; performance and reliability; styling and appearance; features; and warranty. Kenmore Elite (807) follows in the rankings.

    Dishwashers

    Kenmore Elite ranks highest in customer satisfaction with dishwashers with a score of 812 and achieves particularly high scores in ease of use; styling and appearance; features; and price. Kenmore Elite is followed in the rankings by KitchenAid (803). Bosch and Miele also perform above industry average. 

    Cooktops/Ranges/Ovens

    Kenmore Elite (819) ranks highest in customer satisfaction with ranges, cooktops and ovens for a second consecutive year. The brand performs particularly well in ease of use; performance and reliability; and features. Kenmore Elite is followed in the rankings by Wolf (810) and Samsung (808). 

    Consumer Tips

    JD Power offers the following tips for consumers shopping for kitchen and laundry appliances:

    • Fully understand the appliance’s warranty. Read it over carefully to determine what it covers and for how long. If you have questions, ask both the retailer and the manufacturer directly.

    • Understand the difference between the standard warranty and an extended warranty and the associated benefits so that you can decide what makes the most sense for your purchase.

    • Shop based on your specific needs related to function and style. 

    • Don’t wait until after the purchase to figure out how to use the appliance or its special features. Ask the salesperson to explain and demonstrate the appliance’s functions as well as to discuss the regular maintenance required.

    The 2013 Laundry Appliance Satisfaction Study is based on more than 7,800 evaluations from customers who purchased clothes washers and/or clothes dryers during the past 24 months. The study was fielded between January and February 2013.

    The 2013 Kitchen Appliance Satisfaction Study is based on more than 4,000 evaluations from customers who purchased dishwashers; more than 3,900 evaluations from customers who purchased cooktops/ranges/ovens; and more than 4,500 evaluations from customers who purchased refrigerators during the past 24 months. The study was fielded between January and February 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:

    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 Japan Auto Insurance Shopping Satisfaction and Japan Auto Insurance Satisfaction Studies

    Providing Customers with Sufficient Explanations of Auto Insurance Premium Increases May Have a Positive Effect on Loyalty

    2013-07-17

    jdp-root

    TOKYO: 17 July 2013 — As auto insurance companies implement newly introduced rate schemes, providing customers with explanations of new premiums may play a key role in future customer loyalty, according to the JD Power Asia Pacific 2013 Japan Auto Insurance Shopping Satisfaction StudySM and the 2013 Japan Auto Insurance Satisfaction Study,SM both released today.

    In both studies, satisfaction with insurance companies is measured in two segments based on the main selling method: agency-type insurers and direct-type insurers. Agency-type insurers primarily sell policies and interact with customers through insurance agencies, such as specialized agencies or automobile dealerships. Direct insurers sell policies and interact with customers directly, principally via the Internet or phone. Satisfaction is calculated on a 1,000-point scale.

    An auto insurance rate scheme was introduced in April 2013 and approved by the government, and nonlife insurance companies are in the process of informing customers of future premium increases. The Japan Auto Insurance Satisfaction Study, which surveys current policyholders, finds that 42 percent of customers overall received an explanation at the time of their most recent renewal that their premiums will increase if they file an insurance claim for an accident. Additionally, 51 percent of customers of agency-type insurers received explanations, with more than one-half having received face-to-face explanations through their insurance agency. Only 26 percent of customers of direct-type insurers received an explanation, obtaining information by mail. Face-to-face explanations through an agency increase customer understanding of the new rate scheme.

    The study finds that renewal intention is high among customers who received an explanation of the auto insurance rate revision. Notably, 8 percent of customers of direct-type insurers who did not receive an explanation say they “definitely will” renew, compared with 15 percent of customers who received an explanation who say they “definitely will” renew.

    “As insurers fully implement the new insurance rate scheme, explanations provided to customers via agencies, websites, mail and other means are likely to contribute to customer retention,” said Chie Numanami, senior manager, JD Power Asia Pacific.

    In the past year, 21 percent of customers who switched auto insurers changed from an agency-type insurer to a direct-type insurer, an increase of 4 percentage points from 2012. Approximately 30 percent of these customers indicate that an increase in premium was their reason for switching. Furthermore, the study finds that agency-type insurer premiums have increased by approximately ¥3,000, and the percentage of customers who intend to review their insurance and consider switching has increased slightly year over year. Agency-type insurers are at risk of further customer defection to direct-type insurers.

    “Direct-type insurer premiums have increased by approximately ¥2,300 from 2012, which represents a substantial rate increase considering they are lower than agency-type insurer premiums to begin with,” said Numanami. “As a result, overall satisfaction with direct-type insurers has declined by 9 points, and satisfaction with the price factor has sharply declined by 13 points. However, although premium increases have resulted in a decline in satisfaction with direct-type insurers, the increases do not appear to have led to a decline in loyalty at the present time.”

    2013 Japan Auto Insurance Shopping Satisfaction Study 

    The study, in its second year, measures satisfaction among customers who recently purchased auto insurance for the first time or switched insurance companies. Overall satisfaction is measured in three factors: policy offering; price; and distribution channel, which measures satisfaction with the contact person or channel at the time of the policy purchase. 

    In the agency-type insurers segment, AIU ranks highest in customer satisfaction for a second consecutive year, performing particularly well across all three factors and achieving a particularly high score in distribution channel (agency or insurance company representative). Nipponkoa Insurance ranks second and Nisshin Fire and Marine Insurance ranks third, both performing well across all three factors.  

    In the direct-type insurers segment, Saison Automobile and Fire Insurance ranks highest in customer satisfaction, improving from 2012 and performing particularly well in the policy offering factor. SBI Insurance ranks second and performs particularly well in the price factor. E.design Insurance ranks third, performing well across all three factors.

    The study is based on responses from 7,607 auto insurance (voluntary insurance) customers who recently purchased auto insurance (including customers who switched from another insurance company). The online study was fielded in May 2013.

    2013 Japan Auto Insurance Satisfaction Study 

    The study, in its 10th year, measures overall satisfaction among current auto insurance (voluntary insurance) customers during the term of their auto insurance policy. Overall satisfaction is measured in five factors: policy offering; price; policy statement; interaction; and claims.

    In the agency-type insurers segment, AIU ranks highest in customer satisfaction and performs particularly well in the policy statement, interaction and claims factors. Tokio Marine & Nichido Fire Insurance ranks second and performs particularly well in the policy offering factor. Nipponkoa Insurance ranks third, rising substantially in the rankings and performing well in the price factor.

    In the direct-type insurers segment, Saison Automobile & Fire Insurance ranks highest in customer satisfaction and performs particularly well in the policy offering factor. Sony Assurance ranks second and performs particularly well in the policy statement and interaction factors. SBI Insurance ranks third and performs particularly well in the price factor.

    The online survey, based on responses from 9,176 auto insurance (voluntary insurance) customers, was fielded in May 2013.

    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

    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.

    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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  • JD Power Names Joseph DaMour as Vice President of Finance

    JD Power Names Joseph DaMour as Vice President of Finance

    2013-07-16

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    WESTLAKE VILLAGE, Calif.: 16 July 2013 — JD Power today announced the appointment of Joseph DaMour to the position of Vice President of Finance.


    Reporting to JD Power President Finbarr O’Neill, DaMour will be responsible for all aspects of the company’s financial operations, including accounting, financial reporting, contracts and legal. He will also provide strategic and tactical guidance to JD Power’s leadership team, as the company continues its global expansion.


    DaMour will also work closely with Jason Hauben, Senior Vice President of Finance and Planning for McGraw Hill Financial’s Commodities & Commercial Markets Segment.


    DaMour joins JD Power from Via Motors, a privately held electric vehicle development and manufacturing company, where he served as the Chief Financial Officer. Previously, he served as CFO of Fisker Automotive. Earlier in his career, DaMour held a variety of global executive positions at General Motors Corporation in Detroit, New York, Shanghai, Sao Paulo and Brussels.

    “Joe has strong global operating, accounting and financial experience, positioning him as an excellent fit to help manage JD Power’s global business,” said O’Neill.


    “As McGraw Hill Financial further expands its influence as a provider of benchmarks, intelligence and analytics across global markets, Joe’s experience and business perspective will be key assets in our growth,” said Hauben.


    DaMour holds a joint JD-MBA degree and a bachelor’s degree in political science from the University of Michigan.

     

  • Dr. Rick Garlick Joins JD Power as the Global Travel and Hospitality Practice Lead

    Dr. Rick Garlick Joins JD Power as the Global Travel and Hospitality Practice Lead

    2013-07-10

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    WESTLAKE VILLAGE, Calif.: 10 July 2013 — Dr. Rick Garlick has joined JD Power as the Global Travel and Hospitality Practice Lead. He is responsible for providing industry thought leadership for the JD Power’s various syndicated and proprietary studies in the hotel, rental car, airline and cruise line industries as well as developing additional travel research opportunities. Garlick will report to Stuart Greif, vice president and general manager of JD Power’s global travel and hospitality practice.


    Garlick has more than 20 years of diverse consumer and employee research experience in the travel and hospitality industry. Prior to joining JD Power, he held senior-level positions at Maritz Research and The Gallup Organization, where he was a trusted advisor to many senior leaders of premier organizations, as well as a nationally recognized thought leader in the area of hospitality and employee engagement research.


    “In addition to his consumer and employee research experience, Rick also has a diverse consulting background that makes him a valuable resource to JD Power,” said Greif. “He is already having a positive impact by driving performance improvement for JD Power’s clients and by enhancing the value of our products and services and accelerating our growth initiatives.”


    Garlick received a Ph.D. in communication studies from Michigan State University. 


    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]  

    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. Wireless Network Quality Performance Study—Volume 2

    Overall Wireless Network Problem Rates Differ Considerably Based on Type of Service

    2013-08-29

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    WESTLAKE VILLAGE, Calif: 29 August 2013 — Overall network performance levels of wireless phones differ depending on whether services are deployed by full-service or non-contract carriers, according to the JD Power 2013 U.S. Wireless Network Quality Performance StudySM—Volume 2 released today.  

    Now in its 11th year, this semiannual study evaluates wireless customers’ most recent usage activities in three areas that impact network performance: calling, messaging and data. Overall network performance is based on 10 problem areas that impact the customer experience: dropped calls; calls not connected; audio issues; failed/late voicemails; lost calls; text transmission failures; late text message notifications; Web connection errors; slow downloads; and email connection errors. Network performance issues are measured as problems per 100 (PP100) network connections, with a lower score reflecting fewer problems and better network performance. Carrier performance is examined in six geographic regions: Northeast, Mid-Atlantic, Southeast, North Central, Southwest and West.

    Key Findings

    • Customers experience significantly fewer data problems with 4G LTE smartphones (16 PP100) than with 3G phones (18 PP100).
    • Customers with 4G-enabled smartphones are more loyal to their wireless carrier than are customers with devices that use other technologies.
    • Problem incidence among full-service carriers is lower in all network problem areas than among non-contract carriers.
    • Monthly spending increases by an average of $17 among customers who have switched from a previous carrier to obtain a better network or coverage.

    The study finds that overall network performance varies widely by service segment and the activities performed on the handset. For example, there are fewer reported problems overall among wireless customers who use a full-service provider network, compared with problems reported by customers of non-contract carriers. Overall, problems associated with placing calls, messaging and data-related activities average 11 problems per 100 calls (PP100) for full-service carriers. This compares with 13 PP100 among customers of non-contract carriers. 

    In addition, the specific types of problems experienced may vary greatly by segment type. In regard to data-related issues, there are more reported problems among non-contract customers for excessively slow downloads (21 PP100) and Web connection failures (14 PP100), compared with 16 PP100 and 10 PP100, respectively, among full-service customers.  Performance also varies between the two service segments for call quality and messaging issues, but to a lesser degree than with data speed and connection issues.

    “While it’s not unexpected to find network performance disparity between these two segments, given the robust upgrade to 4G technology in the full-service segment, there is performance disparity in the non-contract segment, even between those carriers that own their own network and those that piggyback on full-service networks,” said Kirk Parsons, senior director of wireless services at JD Power. “Based on the varying degree of consistency with overall network performance, it’s critical that wireless carriers continue to invest in improving both the call quality and especially the data connection-related issues that customers continue to experience as 4G service becomes more prevalent.” 

    According to Parsons, there is a financial impact in providing a high-performing network, as spending increases by an average of $17 per customer among those who have switched from a previous carrier to obtain a better network/coverage, compared with those who switch for other reasons.

    Study Rankings

    For the first time since the study moved to a regional format in 2004, Verizon Wireless is the first wireless provider to rank highest across all six regions of the country.  By region, Verizon Wireless ranks highest in the Northeast region for an 18th consecutive reporting period. Verizon Wireless achieves fewer customer-reported problems with dropped calls, initial connections, transmission failures and late text messages, compared with the regional average. Verizon Wireless also ranks highest in the Mid-Atlantic, Southeast, Southwest, and West regions, and also ranks highest in a tie in the North Central region. 

    U.S. Cellular ranks highest (in a tie this period) in the North Central region for a 16th consecutive reporting period. Compared with the regional average, U.S. Cellular has fewer customer-reported problems with dropped calls, failed initial connections, audio problems, failed voice mails and lost calls.

    The 2013 U.S. Wireless Network Quality Performance Study–Volume 2 is based on responses from 26,491 wireless customers. The study was fielded between January and June 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) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.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. www.jdpower.com/corporate

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  • 2013 Japan Initial Quality Study (IQS)

    Incidence of Fuel Consumption Problems Decreases as Fuel Efficiency Improves

    2013-08-29

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    TOKYO: 29 August 2013 — New-vehicle owners are citing fewer fuel consumption-related problems and an increase in fuel efficiency, according to the JD Power Asia Pacific 2013 Japan Initial Quality StudySM (IQS) released today.  

    The study, now in its third year, measures new-vehicle quality in the first two to nine months of ownership. The study captures problems experienced by owners in 227 problem areas that affect quality across nine categories: vehicle exterior; driving experience; features/ controls/ displays; audio/ entertainment/ navigation (AEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; engine/ transmission; and other problems. All problems are summarized as the number of reported problems per 100 vehicles (PP100), with lower scores indicating higher quality performance. 

    The study finds that problems related to fuel consumption decline to 2.6 PP100 in 2013, down from 3.1 PP100 in 2012. Additionally, fuel efficiency has improved by 3 percent, on average, compared with the 2012 study. 

    “These results indicate that automakers are making improvements in engine and transmission performance, including fuel efficiency,” said Atsushi Kawahashi, senior director of the automotive division at JD Power Asia Pacific.  

    Overall initial quality averages 100 PP100 in 2013, a slight improvement from 101 PP100 in 2012. While the incidence of defect/ malfunction problems1 has increased by 2.4 PP100, the number of design-related problems2 has decreased by 4.7 PP100 from 2012. 

    Although the number of defect/ malfunction problems in seven factors of the nine factors has increased in 2013, owners are reporting fewer design-related problems in such areas as windows fogging, transmission, clock difficult to use and excessive fuel consumption. 

    While engine/ transmission-related problems have decreased to 17.4 PP100 they continue to be the most-frequently reported problem area for a second consecutive year. 

    The number of problems reported has decreased year over year in all attributes related to automatic transmission (AT)/ continuously variable transmission (CVT), specifically with respect to how the transmission shifts gears. 

    The study finds that 59 percent of owners report zero problems with their vehicle, while 19 percent report one problem; 9 percent report two problems; and 13 percent report three or more problems. The study also finds variability across brands for design problems compared with defect/ malfunction problems. 

    “For automobile manufacturers, it is important not only to focus on manufacturing quality, but also to have a better understanding of consumer-perceived quality during the product design stage, which would eventually satisfy customers in this market,” said Kawahashi. 

    Vehicle problems have a direct impact on customer loyalty. For example, vehicle owners who say they “definitely will” purchase their next vehicle from the same brand report an average of 70 PP100, while those who say they “probably will not” or “definitely will not” purchase their next vehicle from the same brand report an average of 154 PP100. 

    “Vehicle quality during the initial ownership period plays a great role in building long-term customer loyalty,” said Kawahashi. “The more frequently owners experience problems, the more likely they are to defect when they buy their next vehicle.”

    2013 Ranking Highlights

    Lexus ranks highest for a second consecutive year, averaging 74 PP100. Lexus is followed by Toyota (89 PP100) and Honda (91 PP100), remaining in the same ranking order from 2012. 

    Rankings in the four vehicle segments are: 

    • Mini-car segment: Honda N-ONE ranks highest, followed by the Daihatsu Mira Cocoa and Suzuki Lapin, respectively. 
    • Compact segment: Toyota Passo ranks highest, followed by Toyota AQUA, and Toyota Ractis and Toyota Vitz in a tie.  
    • Midsize segment: Toyota Prius ranks highest, followed by the Honda Fit Shuttle and Nissan X-TRAIL, respectively. 
    • Minivan segment: Toyota Voxy ranks highest, followed by the Mazda Premacy and Toyota Vellfire, respectively.  

    The 2013 Japan Initial Quality Study is based on responses from 11,210 purchasers of new vehicles in the first two to nine months of ownership. The study includes 16 automotive brands and 108 models and ranks models with a sample size of 100 or more usable returns. The study was fielded in May 2013. The Japan Initial Quality Study (IQS) is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in Japan. 

    Other 2013 studies conducted by JD Power Asia Pacific include: 

    • The 2013 Japan Winter Tire Customer Satisfaction Index Study, which measures overall customer satisfaction with winter tires, was released in May. 
    • The 2013 Japan Sales Satisfaction Study (SSI), which measures satisfaction with the new-vehicle sales process, was released in August. 
    • The 2013 Japan Customer Satisfaction Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities, will be released in late September. 
    • The 2013 Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership, will be released in late September. 
    • The 2013 Japan Original Equipment Tire Satisfaction Study, which measures customer satisfaction with original equipment tires, will be released in October. 
    • The 2013 Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with OEMs and aftermarket navigation system, will be released in October. 
    • The 2013 Japan Replacement Tire Satisfaction Study, which measures customer satisfaction with replacement tires, will be released in October. 

     

    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 japan.jdpower.com. Media email contact: [email protected]

    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.

    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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    1Refers to a complete breakdown or malfunction of any component, feature or item. 
    2Refers to components of features that may be functioning properly but are still perceived as problems by the owner because they are difficult to understand or use.

     

  • 2013 India Sales Satisfaction Index (SSI) Study

    Vehicle Shoppers Are Increasingly Considering a Used Vehicle during the Shopping Process in India

    2013-08-29

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    Special Video for India Automakers: “Recognizing Excellence, Driving Results!”

    In this video, we tackled the following issues:
    • Chapter one: Rankings show stiff neck-to-neck competition among nameplates
    • Chapter two: Tata’s improvement in the 2013 India SSI Study
    • Chapter three: Used Car Business in India and its growing importance for consumers and automakers
    • Chapter four: Car buyer’s Internet Usage and Behavior in India

     

    SINGAPORE: 29 Aug 2013 — Vehicle shoppers in India are increasingly considering a used vehicle during their shopping process for a new vehicle, according to the JD Power Asia Pacific 2013 India Sales Satisfaction Index (SSI) StudySM released today. 

    The study finds that 13 percent of new-vehicle buyers considered a used vehicle during their shopping process, a 10 percent increase over the past three years. Additionally, 37 percent of new-vehicle buyers who considered a used car used the Internet during their shopping process. In contrast, only 27 percent of buyers who did not consider a used vehicle used the Internet while shopping.  

    Shoppers who consider a used vehicle use the Internet to search for information regarding vehicle financing, including trade-in options, and service-related aspects. In comparison, shoppers who do not consider a used vehicle use the Internet primarily to look for vehicle features and specifications.

    “Automakers have been increasingly focusing on the used-car business in India, specifically with certified used cars which come with a manufacturer warranty,” said Mohit Arora, executive director at JDPower Asia Pacific, Singapore. “Additionally, automakers have ushered in transparency via their websites that provide real-time information on used vehicle inventory and price information. These activities assure customers of a quality product by providing detailed insights about the vehicles, thereby propelling the consideration of a used-vehicle purchase.”

    Now in its 14th year, the study examines seven factors that contribute to new-vehicle buyers’ overall satisfaction with the sales experience (listed in order of importance): delivery process, delivery timing, salesperson, sales initiation, dealer facility, paperwork and deal. For the first time in 2013, the study examines sales satisfaction in two vehicle segments: luxury and mass market. The results of the luxury segment will be announced in mid-September.

    Overall sales satisfaction in the mass market segment is 841 index points on a 1,000-point scale, a 21-point increase from 2012. On average, automakers post strong increases across all the factors, most notably in salesperson, paperwork and delivery timing.

    The overall improvement in satisfaction is driven by a higher quality of engagement between salespersons and customers. The majority (96%) of customers indicate that their salesperson spent sufficient time in conversation focused only on them. Additionally, 61 percent of customers indicate that their salesperson demonstrated the vehicle’s features and benefits during the test drive, up from 54 percent in 2012. Further,  overall delivery time for new vehicles has declined significantly to 10 days in 2013 from 12 days in 2012.

    “Sharp growth in the recent past had resulted in stretching the dealers’ abilities in engaging customers effectively during the sales process,” said Arora. “Due to relatively lower showroom traffic in 2013, dealers have made efforts to ensure a higher level of engagement during the sales process. In addition, vehicle delivery turnaround time has declined significantly.” 

    Arora noted that all these aspects have resulted in a better shopping experience for customers. 

    “It would be prudent for automakers and their networks to continue this level of customer engagement, even when throughputs reach higher levels,” said Arora.

    Customers who are highly satisfied with the overall purchase experience have higher levels of advocacy and loyalty toward the dealership and the vehicle brand, compared with highly dissatisfied customers. Among customers who are highly satisfied with their purchase experience at the dealership (satisfaction scores of 920 or higher), 91 percent say they “definitely will” recommend their purchase dealer to a friend or relative. These owners are also far more likely to repurchase or recommend the same brand in the future. In contrast, only 50 percent of highly dissatisfied owners (satisfaction scores of 784 or below) say they “definitely will” recommend their dealer.

    Among the 13 brands ranked in the mass market segment, Honda and Maruti Suzuki rank highest (in a tie) with a score of 849. Hyundai, Mahindra and Toyota follow in the rankings, with all three brands tied at 841.  

    The 2013 India Sales Satisfaction Index (SSI) Study is based on responses from 8,434 new-vehicle owners who purchased their vehicle between September 2012 and April 2013, and includes evaluations of more than 71 models within the mass market category. The study was fielded from March to July 2013.

    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, Australia,  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

    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) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.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. www.jdpower.com/corporate

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