Category: APAC

Dealers Must Align Higher Expectations of New Low Cost Green Car Buyers with Stronger Service Offerings, JD Power Finds

2017-10-27

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SINGAPORE: 1 Nov. 2017 — Although a significant proportion of first-time buyers (77%) fall within the low-cost green car (LCGC) segment, only 22% of these customers have experienced all standard processes within their purchase journey, compared with 27% of non-LCGC customers. Additionally, LCGC customers have higher expectations from dealers, with overall satisfaction in this group at 818 points—on a 1,000-point scale—when their experience is higher than expected, compared with 837 in the non-LCGC group, according to the JD Power 2017 Indonesia Sales Satisfaction Index (Mass Market) Study,^SM released today. 

The LCGC segment accounts for 27% of the Indonesian automobile market in 2017, increasing from 22% in 2015. Overall satisfaction among customers in the LCGC segment is 774 points, compared with 788 in all other segments. Moreover, the study finds that LCGC customers not only have higher expectations, but also receive a relatively lower level of implementation of processes from their selling dealers, compared with non-LCGC customers. 

A proportion of LCGC owners receive fewer of the following service offerings from authorized dealers than owners in the other segment: demonstrations during test drives (35% vs. 42%, respectively); salesperson offered loan (57% vs. 68%); overpromising by the salesperson for the delivery timing (28% vs. 23%); and new-vehicle delivery time within seven days (58% vs. 63%). 

“LCGC segment demand has been quite strong in Indonesia with most of the key automakers launching new models. Given that these customers will likely migrate to the higher segments in their ownership cycle, it becomes important for manufacturers and dealers to ensure they understand the profile and needs of these customers in order to deliver a superior purchase experience,” said Kaustav Roy, Director at JD Power. “Manufacturers and dealers that are able to demonstrate a strong focus on LCGC customers are likely to experience higher advocacy and repurchase levels.” 

Following are additional key findings of the study:

• Length of closing the deal has increased: The study finds that customers are taking more time to close the final price and deal with the authorized dealer; 52% of customers have closed the deal within one month in 2017, compared with 61% in 2016. When customers do close the deal within one month, satisfaction improves by 14 points.
• Sales completion time has decreased: The speed of completing the sales transaction process has improved in 2017. Nearly three-fourths (73%) of customers indicate completing the transaction within seven days, an increase of 10% from 2016. When the process is finalised within seven days, satisfaction increases by 8 points.
• Vehicle delivery time has decreased: New-vehicle delivery within one week of booking has increased to 61% in 2017 from 55% in 2016. Satisfaction among customers who receive their vehicle within seven days is 24 points higher than among those who receive their new vehicle after seven days (797 vs. 773, respectively). Additionally, while 91% of customers have their new vehicle delivered to their home, a higher percentage have their vehicle delivered by their salesperson this year (71% in 2017 vs. 59% in 2016), resulting in an increase in satisfaction of 11 points.

Study Rankings

Mitsubishi ranks highest in sales satisfaction among mass market brands in Indonesia, with a score of 802. The brand shows highest performance across all the factors in the purchase experience. Toyota ranks second with a score of 789, while Daihatsu ranks third with 785. 

About the Study

The 2017 Indonesia Sales Satisfaction Index (SSI) Study is based on responses from 2476 new-vehicle owners who purchased their vehicle from September 2016 through July 2017. The study was fielded from March through September 2017 and measures new-vehicle owner satisfaction with the sales and delivery experience from authorized dealers in Indonesia.

Now in its 17th year, the study examines six factors that contribute to overall new-vehicle owner satisfaction with their purchase experience (listed in order of importance): delivery timing; delivery process; salesperson; sales initiation; dealership facility; and deal. Satisfaction is calculated on a 1,000-point scale with a higher score indicating higher satisfaction.

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, informationtechnology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Despite Improved Service Processes, Pre-scheduled Appointments Still Encounter Service Initiation Challenge, JD Power Finds

2017-11-07

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SINGAPORE: 8^th Nov. 2017 — Ensuring that pre-appointments are adhered to results in a more complete level of standards during the service process in Indonesia. However, there is room for improvement in the service initiation process of these appointments to reduce waiting time, according to the JD Power 2017 Indonesia Customer Service Index (Mass Market) Study,^SM released today. 

This year, 34% of customers made appointments for service, a trend that has been increasing steadily over the last three years, up from 29% in 2015. The implementation of all service standards by dealers for these customers is increasing, with 28% of them receiving all service standards, 18 percentage points higher than for those who walked in to the dealership with no appointment (10%). This difference in implementation results in a higher satisfaction score — on a 1,000-point scale — for appointed customers of 787 points as compared to customers who visit the dealer with no appointment (761). Moreover, ensuring that all service standards are implemented for customers with appointments improves satisfaction by 64 points. 

Given 43% of customers with scheduled appointments are still required to wait to speak with a service advisor — as compared with 32% of walk-in customers— there is an opportunity for dealers to improve their preparedness in managing this increased volume of customers with pre-scheduled service appointments. 

“Although there has been an increased emphasis by the dealerships on improving service scheduling with pre-arranged appointments, it is equally important for them to undertake advance preparation for these customers”, said Kaustav Roy, Director at JD Power. “A well-prepared workshop will not only help to strengthen satisfaction through efficient time and process management, but will also assist in ensuring proper internal resource utilization.” 

Following are additional key findings of the study: 

• Customer satisfaction has increased: Overall customer service satisfaction averages 770 in 2017, increasing by 5 points from last year. This increase is attributed to improvements across all factors, with service quality and vehicle pick-up improving by 7 points each. 
• Promoting quicker services is beneficial to customers and dealers: Dealerships are proactively promoting their “Quick/ Express service” by offering with 38% of customers being offered this in 2017, an increase of 5 percentage points from 2016.  In addition, the adoption of “Quick Service” by customers has also increased from last year (33% vs. 27%, respectively).
• Services are completed on time: The study finds that 84% of customers indicated that their vehicle was ready as per the promised time, an increase of 3 percentage points from 2016.
• Follow-up communication is key: Customer contact after the service visit has also shown improvement from last year (53% vs. 61%, respectively). When customers are contacted after their service, satisfaction improves by 10 points.
• Room for improvement: The study finds that there remains an opportunity for improvement in ensuring that a clean vehicle is returned to customers post-service, with 16% of customers indicating that their vehicle was neither washed nor vacuumed after the service, compared with 10% last year.

Study Rankings

Mazda and Toyota rank highest in a tie in overall service satisfaction among mass market brands, with a score of 774. Toyota performs particularly well in the service initiation and service quality factors. Mazda performs well in service advisor, service facility, and vehicle pick up factors. Daihatsu ranks third with 770 index scores. 

The 2017 Indonesia Customer Service Index (CSI) Study is based on responses from 3,175 vehicle owners who received delivery of their new vehicle between March 2015 and September 2016 and took their vehicle for service to an authorized dealer or service center between August 2016 and September 2017. The study was fielded from February through October 2017. 

Now in its 17th year, the study measures overall service satisfaction among owners who took their vehicle to an authorized service center by examining dealership performance in five factors (in order of importance): service quality (30%); service initiation (27%); service facility (15%); vehicle pick-up (15%); and service advisor (12%). 

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected] 

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com. 

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Increased Demand for Luxury Vehicles Leads to Delayed Delivery, JD Power Finds

2017-09-25

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SINGAPORE: 25 Sept. 2017 — Sales volume for luxury automotive brands has increased in Taiwan, resulting in a longer waiting time for vehicles to be delivered, according to the JD Power 2017 Taiwan Sales Satisfaction Index (SSI) Study,^SM released today.

The sales volume for luxury market brands in Taiwan is increasing, with an average 10% growth rate since 2015, creating challenges for dealerships to maintain their sales service standards. With 51% of luxury-brand vehicle owners saying that they waited more than three weeks to receive their vehicle—up 11% from 2016—the increase in sales volume is having a noticeable impact on the customer experience. Overall satisfaction on a 1,000-point scale among customers who waited more than three weeks is 769 points, compared with 833 among those who have their vehicle delivered within three weeks.

“It is encouraging to see the luxury market growing with a steady sales volume, but it is crucial that the customer experience should always remain a key focus at the core of the business,” said Kaustav Roy, Director at JD Power. “Despite a longer waiting time, the salesperson should always keep customers updated on the delivery status and try to avoid offering an unrealistic estimated time, which can lead to rescheduling of the original delivery time later on.”

Half of luxury customers had their original delivery time rescheduled upon the salesperson’s request. This percentage increases to 61% for those who waited three weeks or longer for their vehicle. Overall satisfaction drops to 769 points among customers who had their original delivery time rescheduled, compared with 831 among those who received delivery as first promised.

Following are additional key findings of the study:

• Customers who closed their price negotiation within a month have a higher satisfaction level within the deal factor than those whose deal took longer than one month to complete (799 vs. 762, respectively). This year, 30% of customers closed the deal within a month—a decrease from 41% in 2016.
• Customers expect their sales transaction to be completed within four days. When the dealer takes five days or longer to complete the transaction, satisfaction drops to 787 points. Nearly three-fourths (73%) of customers spent five days or more to complete their sales transaction this year, a up from 66% in 2016. On average, the sales transaction process takes 16 days to complete in 2017, an increase of five days from 2016.
• The overall satisfaction score among first-time vehicle buyers averages 807 points, compared with 798 among return buyers. First-time new-car buyers account for 21% of luxury customers in 2017, up from 18% in 2016.

Study Rankings

Overall sales satisfaction in the luxury segment averages 800 points in 2017. Among the five brands ranked in the segment, Mercedes-Benz ranks highest in satisfaction with a score of 808 and performs particularly well in the factors of sales initiation; dealer facility; deal; and delivery timing. BMW ranks second with a score of 804, performing particularly well in deal; salesperson; and delivery process. Lexus ranks third with a score of 791.

About the Study

The 2017 Taiwan Sales Satisfaction Index (SSI) Study examines six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are delivery process (20%); dealership facility (20%); salesperson (19%); deal (16%); delivery timing (13%); and sales initiation (12%). The study examines sales satisfaction only in the luxury segment.

The study, now in its 19th year, is based on responses from 635 new-vehicle owners in the luxury segment who purchased their vehicle between July 2016 and March 2017. The study, which was fielded from January through May 2017, measures new-vehicle owner satisfaction with the sales and delivery experiences from authorized dealers in Taiwan.

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001‐714-621-6224; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Nearly Half of Customers Visiting Car Dealerships Undecided on Vehicle Purchase, JD Power Finds

2017-09-26

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MELBOURNE: 26 Sept. 2017 — Nearly half (43%) of customers who enter car dealerships have not yet decided on the exact make or model they plan to purchase, according to the JD Power 2017 Australia Sales Satisfaction Index (Mass Market) Study,^SM released today. 

Non-determined buyers are relying more heavily on the dealer’s or salesperson’s recommendation (49%), compared with those knowing in advance which make or model they will buy (35%). Additionally, overall satisfaction among SUV customers (811 on a 1,000-point scale) is 5 index points below the mass market average, in contrast to satisfaction among passenger-vehicle customers (819), which is 3 index points above average. This is particularly noteworthy given that SUV sales account for 42% of all new-vehicle sales in Australia. Notable gaps in satisfaction are centered on delivery timing (820 points vs. 800 points among passenger-vehicle and SUV customers, respectively) and the deal (814 points vs. 806 points among passenger-vehicle and SUV customers). 

Customers are more appreciative of vehicle pricing when they are walked through the details both during the sales process and at the time of their vehicle delivery. Nearly half (45%) of SUV customers, who indicate their salesperson did not spend enough time at delivery, say they paid more than they expected, 6 percentage points higher than passenger-vehicle customers. Overall, satisfaction increases significantly (+41 points) when customers receive free value-added services—such as complimentary car wash, pick-up and delivery. Satisfaction is also positively impacted by free gifts (+37 points); free vehicle service package (+34); free extended warranty (+24); free first-year car insurance (+23); and free accessories (+16). 

“Australia is now becoming a full import car market and SUVs continue to substantially drive vehicle sales growth,” said Loi Truong, Senior Country Manager at JD Power. “However, customers’ needs should not suffer as a result. Understanding changing customer expectations, keeping customers updated pre- and post-sales, as well as delivering consistent customer experiences across the network are key to ensuring an elevated sales experience and can, ultimately, go a long way toward securing customer retention.” 

Once the decision to purchase a vehicle has been made, it is vital for the salesperson to keep the customer informed about the status of their vehicle delivery. More than one-fourth (26%) of SUV customers whose salesperson did not keep them informed of the vehicle delivery status indicate that the delivery time was worse than they expected, compared with 20% of passenger-vehicle customers who say the same. The average satisfaction among passenger-vehicle owners increases to 843 points (to 831 points among SUV owners) when their salesperson keeps them informed of the delivery status. With an average delivery time of 12.4 days for SUV owners (2 days more than for passenger-vehicle owners), 13% of these owners indicate that the delivery timing was worse than expected (vs. 8% for passenger-vehicle owners).  

Following are additional findings of the 2017 study:

• Satisfaction is higher among older car owners (50 years or older) than among younger owners (younger than 35 years)—849 vs. 786, respectively. More than 4 in 10 (41%) younger owners experienced pressure from dealer staff, compared with 17% of older car owners. More than 1 in 5 (22%) customers younger than 35 years old say they felt under pressure to purchase accessories they did not want, compared with 8% of older car owners.
• Among the top five main vehicle purchase reasons, those that most drive satisfaction include exterior styling (+23 points); previous experience with the brand (+17); good reputation of the brand (+16); vehicle with the latest features (+7); and vehicle safety (+6).
• Among highly satisfied customers (overall satisfaction scores of 919 and higher), 84% say they “definitely would” repurchase the same brand of vehicle and 90% say they “definitely would” recommend the brand to family and friends. In contrast, among customers who are highly dissatisfied (scores of 745 and lower), only 33% say they “definitely would” repurchase the same brand and recommend the brand to others.

Study Rankings

Of the 12 brands ranked in the mass market segment, Hyundai ranks highest with a score of 827, followed by Kia with a score of 824 and Holden with 823.

About the Study

The 2017 Australia Sales Satisfaction Index (SSI) Study examines six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are salesperson (19%); deal (18%); delivery timing (17%); delivery process (17%); dealer facility (16%); and sales initiation (14%).

The study, now in its second year, is based on responses from 2,779 new-vehicle owners who purchased their vehicle from June 2016 through June 2017. The study was fielded from end-January through June 2017.

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com. 

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Customers Utilize Greater Variety of Research Sources to Find the Best Deal, JD Power Finds

2017-09-26

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SINGAPORE: 28 Sept. 2017 — Customer satisfaction with their new-vehicle sales experience has increased in Malaysia, as shoppers are conducting more preliminary research across a greater variety of sources in advance to find the best deal in the market, according to the JD Power 2017 Malaysia Sales Satisfaction Index (SSI) Study,^SM released today.

More than 3 in 10 (31%) customers are using the internet to research their new-vehicle purchase, compared with 27% in 2016. Online searches are predominantly centred on vehicle pricing/ financing and promotions (91%) as well as vehicle features and specifications (63%). Three of the most often visited websites are auto consumer websites/ portals (55%), car websites/ forums (45%) and dealer websites (28%).

Furthermore, customers are becoming increasingly knowledge-driven and are using various information sources when shopping for their new vehicle. The study finds that 44% of customers research price guides prior to their purchase decision, an increase of 13 percentage points from 2016, and 62% of customers either visit auto shows and/or displays at shopping malls, compared with 53% in 2016.

“Customers are taking the initiative to become more self-informed, with more carrying out their due diligence before making any purchase decisions,” said Muhammad Asyraf Bin Mustafar, Country Head of Malaysia at JD Power. “Dealerships are consequently stepping up and becoming more proactive while focusing more closely on their customers. Automotive dealers that are better focused on engaging with their customers can benefit from a higher level of sales satisfaction among their customers.”

Moreover, the percentage of customers who have seriously considered another model has increased by 24 percentage points year over year (44% vs. 20%, respectively). The study also shows a year-over-year increase of 11 percentage points in the proportion of customers who have had their salesperson provide comparisons with other models (49% vs. 38%, respectively). 

Salespersons are also providing customers with more explanations of vehicle features and benefits, such as showing catalogues/ brochures (75% vs. 69% in 2016) and demonstrating features during test drive more often (49% vs. 42% in 2016). Furthermore, 91% of customers indicate they were asked about their customer profile, usage, needs and requirements, an increase of 3 percentage points from 2016. Satisfaction among customers who were asked about their profile by their salesperson increases by 47 points (on a 1,000-point scale) to 808 from 761 among those who were not asked.

Following are some key findings of the study:

• Overall satisfaction has increased: Customers are more satisfied this year with their overall purchase experience, compared with 2016 (12% vs. 8%, respectively). Overall satisfaction among delighted customers has increased to 923 points in 2017 from 901 points in 2016.
• Test drives increase satisfaction: Overall satisfaction among customers who are offered a test drive averages 810, which drops to 783 among those who are not offered a test drive. The percentage of customers offered a test drive this year increases 13 percentage points from 2016 (80% vs. 67%, respectively).
• Free gifts are appreciated: More customers indicate receiving additional freebies from their dealer this year, with accessories (51%) and gifts (39%) being the most received. Satisfaction increases by 36 points when customers receive any freebies, than those who did not (811 vs 775, respectively).
• Faster delivery time pays off: More than 4 in 10 (43%) customers indicate they experienced a better-than-expected delivery time, a 3-percentage-point increase from 2016. The incidence of the delivery time being rescheduled by the salesperson from the original time has decreased in 2017 from last year (42% vs. 50%, respectively). Overall satisfaction is higher when no rescheduling of the delivery date is needed (820), compared to when there is rescheduling (782).

Study Rankings

Overall sales satisfaction in the mass market segment averages 804 points in 2017, compared with 789 in 2016. Isuzu and Toyota rank highest, in a tie, with a score of 823 each. Isuzu performs particularly well in the sales initiation, dealer facility and delivery timing factors. Toyota performs highest in the deal, salesperson and delivery process factors.

About the Study

Now in its 15^th year, the study is based on responses from 2,130 new-vehicle owners who purchased their vehicles from August 2016 through May 2017. The study was fielded from February through July 2017.

The 2017 Malaysia Sales Satisfaction Index (SSI) Study examines sales satisfaction in the mass market segment across six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience (in order of importance): salesperson (19%); dealer facility (19%); delivery timing (17%); deal (16%); delivery process (16%); and sales initiation (13%).

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001‐714-621-6224; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

 About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Better Deals and Positive Customer Recommendations Are Key to Satisfying New-Vehicle Buyers, JD Power Finds

2017-09-26

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BANGKOK: 2 Oct. 2017 — New-vehicle buyers remain focused on getting better deals from authorized car dealers and are increasingly seeking recommendations from friends/ relatives prior to visiting showrooms, according to the JD Power 2017 Thailand Sales Satisfaction Index (SSI) Study,^SM released today. 

Overall satisfaction with the sales and delivery process has increased to 822 (on a 1,000-point scale) this year from 811 in 2016. Satisfaction improves the most in the deal factor (809 in 2017 vs. 793 in 2016); however, it remains the lowest-scoring of all six SSI factors (delivery process; dealer facility; sales initiation; deal; delivery timing; and salesperson). 

Offering the best deal/ lowest price is the main purchase driver in 2017 and is cited by 27% of new-vehicle buyers as the reason that most influenced them to purchase from a particular dealer. Additionally in 2017, 48% of customers surveyed negotiated the price of their new vehicle (up by 8 percentage points from 2016) and 66% received a discount (an increase of 14 percentage points from 2016). As a result, the average vehicle price paid has decreased in 2017, as the average discount value has increased and more freebies have been offered to customers. However, an increasing number of new-vehicle buyers felt an uncomfortable level of pressure from the salesperson during their most recent purchase experience (11% in 2017 vs. 6% in 2016), most notably pressure to buy on the same day, which is most frequently cited.

“Providing better deals, discounts and freebies remains important in ensuring that more shoppers are converted into actual buyers; however, dealers must also stay focused on delivering excellent service to their customers and maximizing satisfaction in the longer term, while achieving sustainable returns,” said Siros Satrabhaya, Country Manager at JD Power. “Four in five shoppers visit only one brand before purchase which means most of them are predetermined customers; hence, the critical importance of positive word of mouth. Accurate and pertinent information posted online is also important to convince their decision. Manufacturers and dealers are advised to encourage and facilitate feedback from their customers online but also integrate it into their websites in order to increase visibility for prospect buyers as well as to better create the feeling of engagement of the current customers.” 

The study finds that an increasing proportion of new-vehicle buyers use multiple sources to gather information while shopping and prior to visiting authorized dealerships. Among the sources of information used, recommendations from friends/ relatives is most frequently cited (68% in 2017, up from 55% in 2016), followed by websites (58%) and recommendations from dealer owners or salespeople (42%). New-vehicle buyers who sought information from friends/ relatives tend to be notably more satisfied with the sales and delivery process than those who did not (832 vs. 802, respectively). 

Following are some of the key findings of the study:

• Customers are spending more time online: While the proportion of customers who indicate they browsed information online remains stable year over year (58%), in 2017, the depth of their internet search increases, with 59% of customers having searched four or more information sources, as compared with 52% in 2016.
• Online shoppers are focusing more on pricing: More shoppers are now looking for information on sales promotions (top search cited by 60% of web users, up from 52% in 2016) as well as financing details such as monthly installments (48%, up from 36% in 2016).
• Dealer and manufacturer traffic on the rise: Traffic to manufacturer and dealer websites has increased this year compared to 2016 (45% vs. 37% and 35% vs. 18%, respectively). Satisfaction is higher among visitors of dealer websites than among those visiting manufacturer websites (826 vs. 809, respectively).

Study Rankings

Isuzu ranks highest among the 10 ranked brands for a third consecutive year, with an average SSI score of 832. Isuzu performs particularly well in the dealer facility, deal, salesperson and delivery timing factors. Mazda (827) ranks second and outperforms competitors in the sales initiation and delivery process factors. Toyota (824) ranks third, closely followed by Suzuki (823), both above the mass market average.

About the Study

The 2017 Thailand Sales Satisfaction Index (SSI) Study, now in its 18^th year, is based on responses from 2,458 new-vehicle owners who purchased their vehicle from August 2016 through April 2017. The study was fielded from February through June 2017.

The study examines six factors that contribute to overall customer satisfaction with their new-vehicle purchase experience in the mass market segment. In order of their impact on overall sales satisfaction, those factors are delivery process (19%); dealer facility (19%); sales initiation (17%); deal (16%); delivery timing (15%); and salesperson (15%).

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

 

Customers Who Frequent Service Centers Are Less Satisfied, JD Power Finds

2017-09-26

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SINGAPORE: 2 Oct. 2017 — Customers with more vehicle service experiences—servicing their car three times or more since purchasing—are harder to please, according to the JD Power 2017 Taiwan Customer Service Index (CSI) Study,^SM released today.

Those with more vehicle service experience account for 75% of the car owner population in Taiwan, among whom overall satisfaction is 816—on a 1,000-point scale—which is 23 points lower than the 839 points among those who service their vehicle less frequently. Moreover, satisfaction with this group has decreased by 39 points since 2015 (816 vs. 855, respectively). The customers with more vehicle service experience have a higher expectation of overall service. For example, among all customers who waited 2 hours for their service to be completed, satisfaction in the vehicle pick-up factor among more experienced customers is only 799, compared with 839 among those with less service experience.

“Customers who have serviced their vehicle more often are generally those with a longer vehicle ownership and greater mileage, and possibly have more repair work to be carried out on their vehicle,” said Kaustav Roy, Director at JD Power. “They would, therefore, expect the service advisor to spend more time listening to their requests, discussing needs and paying full attention during the entire service. Failure to delight this group of customers affects overall satisfaction and, thus, may impact retention rates, particularly during the post-warranty period.”

When the service advisor spends 10 minutes or less discussing the customer’s service needs with experienced service customers, satisfaction is only 815, which increases to 833 when the discussion time is longer. Moreover, only 29% of customers in this group say they “definitely would” revisit their service dealer for post-warranty service this year, compared with 40% of those with less service experience who say the same.

Following are additional key findings of the study:

• Customers expect almost all service standards to be met: The study identifies 22 service standards that enhance the overall after-sales service experience. Customers expect a minimum of 21 of these standards to be met in order to have a positive service experience. Among customers with more service experience, only 27% experienced 22 service standards, compared with 36% among those with less service experience.
• Keeping up with routine maintenance notifications is key: This year, 57% of customers received a notification for routine maintenance—a 10-percentage-point decline from 2016. Satisfaction among customers who received a notification is 830, compared with 813 among those who did not receive same.
• Online service scheduling increases satisfaction: Satisfaction among customers who scheduled their service via internet booking is 853, significantly higher than the 820 among those who scheduled via phone booking or the 809 among those who just dropped by the centre. The proportion of customers who scheduled the service via internet booking this year is 9%, a 2-percentage-point increase from 2016, highlighting the need for dealers to consider promoting their online booking offerings more.

Study Rankings

Overall service satisfaction in the mass market segment averages 822 points in 2017. Among the 10 brands included in the segment, Nissan ranks highest in satisfaction with a score of 840. Nissan performs particularly well in the factors of service initiation; service advisor; vehicle pick-up; and service quality. Luxgen ranks second with a score of 832, performing particularly well in service facility. Toyota ranks third with a score of 825.

About the Study

The Taiwan Customer Service Index (CSI) Study, now in its 20^th year, measures new-vehicle owner satisfaction with the after-sales service process by examining dealership performance in five factors (listed in order of importance): service quality; service initiation; vehicle pick-up; service advisor; and service facility. The study examines service satisfaction in the mass market segment.

The 2017 study is based on responses from 2,816 vehicle owners in the mass market segment who received delivery of their new vehicle between March 2015 and June 2016 and took their vehicle for service to an authorized dealer or service centre between September 2016 and June 2017. The study was fielded from March through June 2017.

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001‐714-621-6224; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com. 

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Understanding Customer Needs and Profile and Low Sales Pressure Drive Satisfaction, JD Power Finds

2017-10-10

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MELBOURNE: 10 Oct. 2017 — Salesperson interaction with customers is crucial to better understand their needs, thereby helping customers make the right purchase decision. Additionally, the salesperson should be aware of the fine line of being attentive without putting too much pressure on the customer, according to the JD Power 2017 Australia Sales Satisfaction Index (Luxury) Study^SM, released today.

Satisfaction among new-vehicle buyers whose salesperson asked about their profile, usage, needs or requirements at the time of their visit to the dealership (79%) is 833 (on a 1,000-point scale) — 10 points higher than the luxury average. This is in stark contrast to satisfaction among customers whose salesperson did not ask them (21%), which is 785 — 38 points below average.Asking relevant questions at the time of purchase is important. Satisfaction increases when the salesperson asks customers about their previous driving experience (+41 points above luxury average); who the intended primary user of the vehicle is (+39); the intended usage of the new vehicle (+39); and the vehicle owned at the time of purchase (+38). 

More than one-third (34%) of new-vehicle buyers indicate they experienced sales pressure by their salesperson (in contrast, only 27% of mass market buyers say the same), with satisfaction among these customers declining to 730 (93 points below the luxury average). Satisfaction among customers who did not experience sales pressure (66%) is 47 points above the luxury average. Examples of sales pressure experienced include purchasing accessories they did not want (18%); purchasing the vehicle on the same day as the visit (18%); and paying more for the vehicle than they wanted to (16%). The courtesy and friendliness of the salesperson is important when advising potential new vehicle buyers. More than one-third (38%) of customers are delighted (satisfaction score of 931 and above) with this attribute (courtesy and friendliness of the salesperson) and 25% are delighted with the appropriateness of the sales pressure. 

“Customers need to feel that the dealership values their business,” said Loi Truong, Senior Country Manager at JD Power. “When the salesperson asks a new-vehicle buyer the relevant questions to understand their needs and profile, customers are certainly more engaged and satisfied. A more dedicated and efficient approach to customer engagement also goes a long way toward building a lasting relationship. Simultaneously, the salesperson should remain cognizant of these needs without putting too much purchase pressure on the customer, as there is a fine line between being attentive and being pushy.” 

Following are key findings of the study: 

• Meeting sales standards is key: In order to achieve satisfaction above the luxury average, dealerships need to deliver on at least 17 of the 22 sales standards identified in the study which enhance the overall sales experience. Nearly three-quarters (72%) of customers report experiencing at least 17 standards. 
• Customers still unsure of what they want upon arrival at dealership: More than one-fourth (28%) of customers were unsure of either the make or model of the vehicle they wanted to purchase at the time they first began to shop.
• Younger customers are harder to please: More than one-third (35%) of buyers are young (younger than 35 years old), with satisfaction 10 points below the luxury average, compared with 45 points above the average among older buyers (50 years or older). Furthermore, the younger cohort report experiencing higher sales pressure (46%) than those in the older cohort (15%).

Study Rankings

Of the three brands ranked in the luxury segment, Mercedes-Benz ranks highest with a score of 849, followed by Audi with a score of818 and BMW with 782. 

The 2017 Australia Sales Satisfaction Index (SSI) Study is based on responses from 405 new-vehicle owners who purchased their vehicle from June 2016 through June 2017. The study was fielded from end-January through June 2017. 

The study, now in its second year, examines six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are salesperson (19%); deal (18%); delivery timing (17%); delivery process (17%); dealer facility (16%); and sales initiation (14%).

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected] 

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Young Car Owners in Taiwan Rely on Internet to Influence Vehicle Purchase Decisions, JD Power Finds

2017-08-29

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SINGAPORE: 31 Aug. 2017 — Young car owners in Taiwan increasingly look to online channels when shopping for their vehicle, according to the JD Power 2017 Taiwan Sales Satisfaction Index (SSI) Study,^SM  released today. 

Young car owners—below the age of 35—account for 27% of the car owner population in Taiwan. More than three-fourths (78%) conduct online research while shopping for their new vehicle, compared with 64% of car owners 35 or older. Moreover, there is a greater proportion of uncommitted shoppers among young car owners (31%) compared to car owners 35 or older (26%). Nearly half (44%) of them visited at least two brands before reaching a final decision, as compared with 39% among older owners. 

While young car owners rely heavily on the internet for vehicle information, 75% will refer to the auto section of consumer/ news websites or web portals and 69% will visit dedicated car websites/ forums for reviews and comments.

“Instead of solely relying on recommendations of salespeople, young buyers are increasingly researching reviews and feedback online before visiting the dealership in order to get a better idea of what is available in the market,” said Kaustav Roy, director at JD Power. “This group of customers is savvier when it comes to purchasing a new car and view fuel efficiency as the most important factor. They also post more comments online about their shopping experience, and are therefore a greater source of influence to other potential buyers.”

Satisfaction among young car owners averages 800 (on a 1,000-point scale) vs. 789 among those 35 or older. However, the incentive to review their sales experience online is not driven solely by negative experiences, with 27% of highly satisfied young customers (868 and above) having reviewed vehicles online via blogs, forums or social networking sites vs. 20% of highly dissatisfied young customers (719 and below.)    

Following are additional key findings of the study:

• Younger car owners are more sensitive towards vehicle price with sales satisfaction dropping to 772 from 800 for younger car owners when the vehicle price paid is more than their expectation, as compared to 788 among owners age 35 and older.
• Among the 57% of customers who choose to replace their current vehicle, 41% traded in their old vehicle, showing a continued increase since 2015 (24% in 2015 and 33% in 2016). Satisfaction with the shopping experience is higher among trade-in customers than non-trade-in customers,  814 vs. 777, respectively. Conversely, in 2016, non-trade-in customers had a more positive experience, 795, compared with 748 for trade-in customers.
• Overall satisfaction among customers who are offered a test drive averages 793, but drops to 785 when a test drive is not offered. The percentage of customers offered a test drive this year climbs 2 percentage points from 2016 (90% vs. 88%, respectively).
• Almost three-fourths (73%) of salespeople are in charge of the finance application process, down from 82% in 2016. Overall satisfaction with the deal is higher when the application is handled by the salesperson (778) rather than someone at the dealer’s finance desk (753) or the finance company itself (748).

Study Rankings

Overall sales satisfaction in the mass market segment averages 792 points in 2017. Among the nine brands included in the segment, Mitsubishi ranks highest in satisfaction with a score of 799. Mitsubishi performs particularly well in the factors for deal; salesperson; delivery timing; and delivery process. Toyota ranks second with a score of 798, performing particularly well in dealer facility and salesperson. Honda ranks third with a score of 797.

About the Study

The 2017 Taiwan Sales Satisfaction Index (SSI) Study is based on responses from 2,423 new-vehicle owners in the mass market segment who purchased their vehicle between July 2016 and March 2017. The study, which was fielded from January through May 2017, measures new-vehicle owner satisfaction with the sales and delivery experiences from authorized dealers in Taiwan.

Now in its 19^th year, the study examines six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are delivery process (20%); dealership facility (20%); salesperson (19%); deal (16%); delivery timing (13%); and sales initiation (12%). The study examines sales satisfaction in the mass market segment.

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001‐714-621-6224; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Satisfaction with Dealer Facilities and Delivery Process Declining, JD Power Finds

2017-08-29

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SINGAPORE: 31 Aug. 2017 — Despite new-vehicle buyers visiting authorized showrooms more frequently during their purchase experience and an increasing number accepting delivery at the dealer premises, satisfaction with dealer facilities and the delivery process is declining, according to the JD Power 2017 Philippines Sales Satisfaction Index (SSI) Study,^SM released today. 

Overall satisfaction with the sales and delivery process stands at 740 (on a 1,000-point scale) in 2017, down from 758 in 2016. Satisfaction decreases across all six SSI factors (sales initiation; delivery process; delivery timing; salesperson; dealer facility; and deal). Most noteworthy is the decline in satisfaction with dealer facility — covering the interior and the exterior layout as well as in the accessibility of authorized dealerships — down 32 points to 735. Delivery process registers the second-largest decline, down 20 points to 746, as the time to complete the vehicle handover process increases notably: nearly three-fourths (72%) of customers said the process took more than two hours, up by almost one-quarter (23%) from 2016. 

“Pressure is mounting on dealers to upgrade their existing facilities and/or open new facilities to accommodate the influx of new car buyers,” said Loïc Péan, senior manager at JD Power. “Accessibility is a common issue in urban areas, but improvements may also be required within showrooms, such as improving the display of models to offer a better shopping experience as well as the efficient and timely delivery of the vehicle. In addition, the test drive experience needs to be enhanced and better organized as it currently does not seem to have the expected positive effect on customer satisfaction.” 

Customers who performed a test drive are overall less satisfied than those who did not (734 vs. 747, respectively), confirming the trend already observed in 2016. Test driving is currently found to be the least effective method of explaining features and benefits, behind verbal-only explanation. 

The study also finds that dealers fail to follow up sufficiently with prospective buyers, both before and after purchase. Indeed, one in four (25%) of new-vehicle buyers say that the salesperson did not call back after their first visit to dealership, up from only 5% in 2016. Moreover, the same proportion also say they were not contacted to ensure everything was satisfactory after the vehicle delivery, up from only 6% in 2016. 

When demand increases, following up with prospective buyers naturally becomes more difficult — however, it is also critical to ensure a positive customer experience and continued positive word of mouth, notably for the dealers themselves. Furthermore, it is key to increasing sales ratios as new-vehicle shoppers in the Philippines rely more and more on recommendations from friends and salespeople, cited as the second most important purchase reason after vehicle performance, up 10% from last year (49% vs. 39%, respectively). 

In addition, customers provide higher ratings regarding their salesperson’s knowledge about vehicles as compared with 2016 —the only satisfaction attribute to improve from last year. 

Study Rankings

Among the 11 mass market brands ranked in the study, Honda (747) ranks highest in new-vehicle sales satisfaction for the first time since 2012. Honda performs particularly well in the sales initiation and salesperson factors. Toyota ranks second (745) and performs well in the dealer facility and delivery timing factors. Nissan ranks third (743), outperforming competitor brands in the deal and delivery process factors.

About the Study

Now in its 17th year, the Philippines Sales Satisfaction Index (SSI) Study examines six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are: sales initiation (20%); delivery process (18%); delivery timing (18%); salesperson (17%); dealer facility (15%); and deal (12%). 

The study is based on responses from 1,650 new-vehicle owners who purchased their vehicle between August 2016 and April 2017, and was fielded between February and June 2017.

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com. 

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info