Category: China

Brands Performing Better in APEAL Enjoy Bigger Market Share, JD Power Finds

2019-09-10

jdp-root

SHANGHAI: 12 Sept. 2019– Brands with higher APEAL index scores also have better sales and market performance in China, according to the JD Power 2019 China Automotive Performance, Execution and Layout (APEAL) Study,^SM released today.

The study, now in its 17th year, measures owners’ satisfaction of automotive performance, execution and layout of new vehicles within the first two to six months of ownership, ranging from the power they feel when they step on the gas to the sense of comfort and luxury they feel when climbing into the driver’s seat. At the industry level, the overall APEAL score in 2019 is 712 (on a 1,000-point scale), which continues the improvement trend since 2017.

According to the study, market share of 25 brands that perform better than industry average in APEAL index increases 3.5% from 2018. While the remaining 42 brands that rank below industry average experienced a 3.5% decline in market share from 2018.

“New-car sales in China are still struggling so automakers need to address how to get through this tough period,” said Edward Wang, Research Director, JD Power China. “The good news is that there’s a positive correlation between the APEAL index and the sales volume. If automakers take full consideration of the consumer experience and improve vehicle appeal, it will have a long-term positive effect on vehicle sales and recovery of the auto market.”

Following are additional findings of the 2019 study:

• Gap closes between domestic and mass market international brands: The gap between domestic and mass market international brands is 21 points in 2019. The gap has been narrowing each year since 2009 when the gap was 70 points.

• Fuel economy performance improves: The APEAL scores of all 10 categories are higher than last year, especially that of fuel economy, which shows an increase of 9 points. European brands make no improvement while Korean brands make the biggest improvement (+25 points) from 2018 and outperform others in fuel economy (+36 above the industry average).

• Consumers born in the 1980s and 1990s are more concerned about sensory experience: The styling and appearance of vehicle front-end is the most appealing attribute for all age groups. Consumers born in the 1980s are 1990s care more about the sense of comfort of driver’s seat back/headrest. Consumers born in and after 1985 are also more demanding in quality of sound from speakers than other age groups.

Study Rankings

Porsche ranks highest in APEAL among luxury brands, with a score of 784. BMW (760) ranks second and Lexus (755) ranks third.

Dongfeng Yueda Kia is the highest-ranked mass market brand, with a score of 747. MINI ranks second with a score of 737. Beijing Hyundai (734) and Dongfeng Nissan (734) rank third in a tie.

There are 18 other models eligible for awards across 17 segments in the 2019 study. The segment-level APEAL awards by brand are the GAC Trumpchi GM8; GAC Trumpchi GS7 and GAC Trumpchi GS3; BMW 1 Series and BMW X1; Hyundai Lafesta and Hyundai Yuena Verna; Kia K2 and Kia K4 Cachet; Nissan Murano and Nissan Lannia;and Porsche Cayenne and Porsche Macan.

Other models that rank highest in their respective segments are Lexus ES; Mazda 6 Atenza; Skoda Karoq; Volkswagen Touran L;and Wuling Hongguang S/S1.

The 2019 China Automotive Performance, Execution and Layout (APEAL) Study measures owners’ emotional attachment to and level of excitement with their vehicle across 77 attributes in 10 vehicle performance categories: vehicle exterior; vehicle interior; storage and space; audio/ communication/ entertainment/ navigation; seats; heating, ventilation and air conditioning; driving dynamics; engine/ transmission; visibility and driving safety; and fuel economy.

The 2019 study is based on responses from 33,468 vehicle owners who purchased their cars between May 2018 and March 2019. The study includes 266 models from 67 different brands and was fielded from November 2018 through May 2019 in 75 major cities across China.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts

Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]

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

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

 

New-Vehicle Quality in China Drastically Improves, JD Power Finds

2019-08-07

jdp-root

BEIJING: 8 Aug 2019 – New-vehicle quality in China has improved significantly with a 10% decrease in problems from 2018, according to the JD Power 2019 China Initial Quality Study (IQS),^SM released today. Of the 67 brands included in the study, 52 improved.

The study, now in its 20th year, measures new-vehicle quality by examining problems experienced by new-vehicle owners within the first two to six months of ownership. The overall initial quality score is determined by problems reported per 100 vehicles (PP100), with a lower number of problems indicating higher quality.

According to the study, the average new-vehicle quality score of the industry this year is 95 PP100, which is 10 PP100 less than last year. Improvements occur in six of eight study categories and the most improved categories are interiors (down 2.9 PP100 from 2018); audio/ communications/ entertainment/ navigation (down 2.9 PP100 from 2018); and seats (down 2.2 PP100 from 2018).

 “After stalling for five years, new-vehicle quality in China is at its highest level ever,” said Jeff Cai, General Manager of Auto Product, JD Power China. “This proves that automakers are listening to their customers feedback carefully and putting effort toward improving customer satisfaction. This progress, most notably, is achieved in a downturn market, making it more prominent.”

Following are some key findings of the 2019 study:

• Few most common issues still prevalent: The score of the top 20 problems cited by vehicle owners this year is 1.5 PP100 more than last year (51.4 PP100 vs. 49.9 PP100), and 12 of the top 20 have worsened.
• Quality of Chinese domestic brands improve dramatically: The number of problems among Chinese domestic brands has dropped 12% to 101 PP100 from 115 PP100 in 2018. Seven of the eight categories have improved and the only category to decline is engine/transmission (+2.1 PP100).
• The gap between Chinese domestic brands and international brands narrows: The average gap between the Chinese domestic and international brands had been 14 PP100 for the past three years but has significantly improved to 9 PP100 this year.

Highest-Ranked Brands and Models

Audi ranks highest in initial quality among luxury brands with a score of 73 PP100. Lexus and Porsche (76 PP100) rank second in a tie.

Dongfeng Yueda Kia is the highest-ranked mass market brand, with a score of 83 PP100. MINI ranks second with a score of 86 PP100. Beijing Hyundai, GAC Honda and Jeep (89 PP100) rank third in a tie.

There are 18 models from 15 brands are eligible for awards across 17 segments in the 2019 study.

• GAC Toyota models that rank highest in their respective segments are Toyota Yaris L and Toyota C-HR.
• Audi models that rank highest in their respective segments are Audi A4L and Audi Q3.
• SAIC Volkswagen models that rank highest in their respective segments are Volkswagen Tharu and Volkswagen Touran L.

Other models that rank highest in their respective segments are Baojun 730; Changan Eado XT; Chery Tiggo 3x; Geely GC9; Honda Accord; Honda Elysion; Hyundai Lafesta; Lexus RX; Mercedes-Benz E-Class; Porsche Cayenne; Toyota Land Cruiser Prado; and WEY VV6.

The 2019 China Initial Quality Study measures new-vehicle quality by examining problems in two categories: design-related problems and defects/ malfunctions. Specific diagnostic questions include 233 problem symptoms across eight categories: interior; exterior; engine/ transmission; driving experience; features/ controls/ displays; seats; audio/ communication/ entertainment/ navigation; and heating/ ventilation/ air conditioning.

The 2019 study is based on responses from 33,468 vehicle owners who purchased their cars between May 2018 and March 2019. The study includes 266 models from 67 different brands and was fielded from November 2018 through May 2019 in 75 major cities across China.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts

Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]

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

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

 

New Energy Vehicles Facing Traditional and NEV-Specific Quality Problems, JD Power Finds

2019-07-30

jdp-root

SHANGHAI: 31 July 2019 – Addressing both new and traditional vehicle quality problems is crucial for New Energy Vehicle (NEV) manufacturers to improve product competitiveness and win consumers’ favor, according to the JD Power Inaugural China New Energy Vehicle Experience Index (NEVXI) Study, ^SM released today.

New to JD Power in 2019, this study measures new-vehicle quality by examining problems experienced by NEV owners within the first two to six months of ownership. The new-vehicle quality score is determined by problems cited per 100 vehicles (PP100), with a lower number of problems indicating higher quality. This study also measures NEV owners’ satisfaction with sales service, after-sales service and product.

The study shows that the most cited problems by NEV owners are traditional vehicle quality problems. The top three most-frequently cited complaint categories are interior (16.3 PP100); exterior (15.8 PP100); and driving experience (14.7 PP100). Complaints about battery and electric motor, the core components of new energy vehicles, are less, with 7.4 PP100 and 3.4 PP100, respectively.

In terms of the NEV-specific problems, the top four complaints by NEV owners are insufficient engine power (2.7 PP100); slow charging speed (1.9 PP100); abnormal reduction of endurance mileage (1.8 PP100); and abnormal powertrain noises (1.4 PP100).

“With the fading of government support, consumers will be paying more attention to new energy vehicles,” said Jeff Cai, General Manager of Auto Product, JD Power China. “New-vehicle quality, as one of the most important elements for product competitiveness and consumers’ purchase decision, largely determines which side consumers will prefer when making choices between fossil-fuel vehicles and new energy vehicles. Although challenging, new energy vehicle manufacturers should not overlook the solutions to traditional quality problems while developing NEV core technologies and view it as an opportunity to win the favor of the market and consumers.”

Following are additional findings of the 2019 study:

• Luxury NEV brands (69 PP100) outperform others in NEV new-vehicle quality: The industry average level of problems reported this year is 89 PP100.Chinese NEV brands by traditional manufacturers (90 PP100) have the most problems.
• NEV owners are satisfied with their overall user experience: Vehicle appearance/ styling/ design gets the highest score (7.6 on a 10-point scale), followed by driving experience (7.5) and interior design/ color/ material quality (7.5). Scores of battery performance and in-vehicle high-tech features are slightly lower, at 7.4. 
• User experience with vehicle operation system (OS) needs to be improved: Vehicle OS are not yet widely accepted by NEV owners. The study finds that 64% of respondents have never tried the feature of over-the-air vehicle software updates. More user scenarios for vehicle OS are waiting to be explored. In addition, the most reported problems by NEV owners when using vehicle OS are few functions (31%); poor interface (26%); poor/ slow network (19%); and system crash/ slow (16%).

Study Rankings

NIO ranks highest in new energy vehicle new-vehicle quality among all brands, with a score of 67 PP100.  BMW ranks second with a score of 82 PP100. Chery New Energy (84 PP100) and GAC Trumpchi (84 PP100) rank third in a tie.

BYD Tang PHEV ranks highest in the mass market plug-in hybrid segment. NIO ES8 ranks highest in the midsize/large BEV segment. In the Luxury PHEV and Small BEV segments, criteria for awarding are no meet, thus no awards are issued.

The JD Power Inaugural China New Energy Vehicle Experience Index (NEVXI) Study measures new-vehicle quality by examining problems experienced by NEV owners in two categories: design-related problems and defects/ malfunctions. Specific diagnostic questions are included in nine problem categories: features/ controls/ displays; interior; exterior; seats; driving experience; battery; audio/ communication/ entertainment/ navigation; electric motor/ transmission; and heating/ ventilation/ air conditioning.

The study is based on responses from 2,770 vehicle owners who purchased their cars between September 2018 and March 2019. The study includes 41 models from 21 different brands and was fielded from March through May 2019 in 30 major provinces across China.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts

Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]

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

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

---

 

 

2019 China New-Vehicle Intender Study (NVIS)

2019-07-01

jdp-root

BMW, SAIC Volkswagen and FAW-Volkswagen are Highest-Ranked Brands in Brand Influence

SHANGHAI: 4 July 2019 – Both the cost that intended new-vehicle buyers in China tend to pay for a new car and their willingness to replace their current car with a new one decreased; however, offering multiple in-vehicle technologies are likely to increase their purchase intentions, according to the JD Power 2019 China New-Vehicle Intender Study^SM (NVIS), released today.

The study, now in its 11th year, examines consumer perceptions of vehicles and the purchase behaviors of those who intend to purchase a new vehicle within the next 12 months. The study also measures purchase decision factors when considering a vehicle for purchase, brand recognition, favorability and impression, as well as consumer interest in new technologies.

The study shows that the average price of a considered car by intended buyers has dropped by 12% to RMB 215K (USD 31.3K), from RMB 244K (USD 35.5K) in 2018. Moreover, the willingness of replacing a current car with a new car has decreased to 20% in 2019 from 37% in 2016.

“Consumers in China are mostly motivated by demands such as making a better life or enjoying driving, which result in owning a new car being an option rather than a must,” said Edward Wang, Research Director at JD Power China. “Together, the tightened purchase budget and the declined repurchase willingness make it hard to be optimistic about the new car market in 2019.”

The study also finds that when considering a new car, the importance of variety of in-vehicle technology has risen to 7% in 2019 from 3% in 2018, with its importance ranking moving from 11th to 6th, compared with 2018. Intended buyers demonstrate strong demands for interior multi-media features, with built-in navigation system (68%), built-in Bluetooth (58%) and built-in Internet connection/Wi-Fi (56%) being the top three features they expect.

“In the absence of the momentum for new car sales in China, providing customers with diversified and differentiated in-vehicle technologies is likely to increase their purchase intentions,” Edward said. “Customers’ expectations on in-vehicle technologies significantly increase when purchase budget exceeds RMB 100K (USD 14.5K), which is difficult to cover. Therefore, it is important for manufacturers to carefully evaluate the specific needs of customers and provide flexible features options. This will help manufactures to win in the current challenging market.”

Following are additional findings of the 2019 study:

• Consumers are wary of buying cars online: Although 70% of respondents say they “definitely will” or “probably will” buy a new car on the OEM official website or a third-party trading platform/APP, only 7% say they will pay the full car price online.

• Brand influence of Chinese domestic New Energy Vehicle (NEV) brands is weaker: According to the Brand Influence Score (BIS), a combination of measurements of perceived brand awareness, brand familiarity and brand favorability, the brand image of domestic NEV brands is vague and lags behind others in BIS, although they have preliminarily established an intelligent and avant-garde brand image.

• Battery technology and vehicle reliability become big concerns to NEV intenders: Concerns about drive range of NEVs has significantly reduced compared with last year (-9% to 33% from 42% in 2018), while concerns about battery technology and vehicle reliability have increased by 9% and 8% to 42% and 30% respectively, compared with 2018.

The study also includes a brand influence score (BIS) which measures familiarity and favorability of automotive brands among intended new-vehicle buyers in China. BMW achieves a BIS of 685 (on a 1,000-point scale), followed by SAIC Volkswagen (677) and FAW-Volkswagen (673).

The 2019 China New-Vehicle Intender Study is based on responses from 11,977 new-vehicle intenders. The study includes 67 brands and was conducted online in March-April 2019.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts

Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]

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

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

 

Knowledgeable Vehicle Owners in China Expect More Durable Tires, JD Power Finds

2018-08-22

jdp-root

Shanghai: 22 Aug. 2018 –New-vehicle owners in China are becoming more knowledgeable about tires, thus also become more demanding. The number of owners who claim to know the features of their tires has notably increased from last year, according to the JD Power 2018 China New-Vehicle Tire Satisfaction Index (NV-TSI) Study, released today.

The year’s study shows that 4% of new-vehicle owners say they know “very well” about tire series parameters and 23% say they know them “somewhat,” compared with 2% and 15%, respectively, in 2017.

“As vehicle owners in China become more informed and experienced, we expect their habits and preferences to change, such as making more regular tire replacements and becoming more demanding and less loyal,” said Jacob George, Vice President and General Manager at JD Power Asia Pacific. “For tire manufacturers and dealers, in addition to constantly improving product durability, providing tire owners with more clear and direct information about their tires, as well as maintenance and repair service will help improve customer satisfaction and loyalty in the increasingly competitive market environment.”

The study also finds that with more knowledge of tires, new-vehicle owners in China are beginning to change their tire replacement habits and expectations on tire mileage. The percentage of vehicle owners who say they do not replace tires unless confronted with problems impacting normal driving has increased by 8%, while vehicle owners who say they replace tires based on distance driven has declined by 7%. Additionally, vehicle owners’ expectations for new-vehicle tire mileage has increased by 3,000 km from 66,000 km in 2017.

Following are additional findings from the study:

• New-vehicle tire actual mileage increases: Vehicle owners have been replacing tires after driving 56,000 km, which is 7,000 km longer than in 2017. In the SUV segment, owners in 2017 replaced tires after 47,000 km, which has increased this year by 15,000 km.
• Road hazard/ puncture is the top tire problem: Road hazard/puncture; stones get caught in the tread; and excessive road noise are the three problems that vehicle owners find most bothersome and are those most frequently encountered.
• Professional tire services promote other services: When owners have a tire problem fixed at the dealership where they purchased their vehicle, 48% also received additional services including regular maintenance and vehicle washing or vacuuming. 

Study Rankings
Michelin ranks highest in both the Luxury and Mass Market segments, with scores of 761 and 718, respectively, on a 1,000-point scale. Pirelli ranks highest in the SUV segment with a score of 730.

The China New-Vehicle Tire Satisfaction Index (NV-TSI) StudySM, now in its seventh year, measures new-vehicle customer satisfaction with their tires on new vehicles after 12 to 29 months of ownership based on four factors: appearance, durability, ride, and traction/ handling. The study includes four vehicle segments: luxury car; mass market car; SUV; and MPV/ mini van.

The study includes 10,492 vehicle owners in 67 cities across four regions and four city tiers in China; the methodology combines street intercept interviews and online panels.  The study was fielded from November 2017-May 2018.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Ruopei Wang; JD Power; China; +86 21 8026 5804; [email protected]

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

# # #
NOTE: Three charts follow.

 

Jun Su to Join JD Power as New China President

2018-08-14

jdp-root

SHANGHAI: 8 August 2018 — Jun Su, a seasoned and accomplished digital and technology executive, has been appointed President of JD Power China, effective today.  In this role, Jun will oversee the company’s business operation and growth strategies in China, with a focus on digitalization, breakthrough innovation and growth. Jun Su succeeds Songlin Mei, who takes on new responsibilities as Vice President of Strategy and New Product Development at JD Power.

“Jun Su is an accomplished business leader with very strong technology background, right vision, and proven experience to accelerate the digital transformation of our company,” said Doug Betts, Senior Vice President, Global Automotive Division.  “China is no doubt JD Power’s biggest and the most important strategic market outside the U.S., and Jun Su is ideally suited to lead and continue our transformation toward a technology-driven consumer insights provider.”

Jun Su joins JD Power from Pactera Technology, a leading China-based global information technology service company, where he served various roles, including EVP of the business unit and President of Global Delivery and Practice Development. At Pactera, he has successfully built a cloud team, and set up an automotive division which specializes in the development of in-vehicle human-machine interfaces. Jun was also one of the founding leaders of Pactera’s international business, building up the business of 7,500 members spread out in five continents.  Prior to Pactera, Jun Su had been with Hewlett-Packard for around 14 years, taking various technology, sales and management roles in the U.S., China and Asia Pacific region.

“I have always respected JD Power’s brand name and the spirit of innovation that JD Power brings to the industry through its unrivaled consumer focus data and analytics capabilities,” Jun Su said. “I look forward to bringing my IT and digital expertise and growth vision to my new role and contributing to the future greater success of JD Power in China.”

Jun Su holds a bachelor’s degree of physics from the prestigious University of Science and Technology of China, and a master’s degree in computer science from Brigham Young University in the U.S.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

 

Jun Su to Join JD Power as New China President

2018-08-06

jdp-root

SHANGHAI: 8 August 2018 — Jun SU, a seasoned and accomplished digital and technology executive, has been appointed President of JD Power China, effective today.  In this role, Jun will oversee the company’s business operation and growth strategies in China, with a focus on digitalization, breakthrough innovation and growth. Jun Su succeeds Songlin Mei, who takes on new responsibilities as Vice President of Strategy and New Product Development at JD Power.

“Jun Su is an accomplished business leader with very strong technology background, right vision, and proven experience to accelerate the digital transformation of our company,” said Doug Betts, Senior Vice President, Global Automotive Division.  “China is no doubt JD Power’s biggest and the most important strategic market outside the U.S., and Jun Su is ideally suited to lead and continue our transformation toward a technology-driven consumer insights provider.”

Jun Su joins JD Power from Pactera Technology, a leading China-based global information technology service company, where he served various roles, including EVP of the business unit and President of Global Delivery and Practice Development. At Pactera, he has successfully built a cloud team, and set up an automotive division which specializes in the development of in-vehicle human-machine interfaces. Jun was also one of the founding leaders of Pactera’s international business, building up the business of 7,500 members spread out in five continents.  Prior to Pactera, Jun Su had been with Hewlett-Packard for around 14 years, taking various technology, sales and management roles in the U.S., China and Asia Pacific region.

“I have always respected JD Power’s brand name and the spirit of innovation that JD Power brings to the industry through its unrivaled consumer focus data and analytics capabilities,” Jun Su said. “I look forward to bringing my IT and digital expertise and growth vision to my new role and contributing to the future greater success of JD Power in China.”

Jun Su holds a bachelor’s degree of physics from the prestigious University of Science and Technology of China, and a master’s degree in computer science from Brigham Young University in the U.S.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

 

China’s Car Owners Embrace Digital and Expect Quality Experience in After-Sales Service, JD Power Finds

2018-07-30

jdp-root

Audi and Changan Ford Rank Highest in Customer Satisfaction

BEIJING: 31 July 2018 — While dealers in China are making efforts to bring their services online through various digital channels to satisfy and retain their customers, they continue to face challenges in delivering an effective and positive customer experience, according to the JD Power 2018 China Customer Service Index (CSI) Study,^SM released today.

The study finds that vehicle owners are more satisfied (increase of 45 points on a 1,000-point scale) when a tablet device is used by the service advisor during their visit than when a tablet is not used. Additionally, service advisor satisfaction is higher among customers who were informed of the service progress by mobile app than among those who were informed by a call from the dealer or waited for service to be completed.

“There’s no doubt that a digital experience today is playing an increasingly important role in improving the customer experience and satisfaction. It is no longer a ‘nice to have’ feature, but a ‘must have.’ Dealers need to engage their customers across multiple digital channels and digital touch points,” said Jacob George, Vice President and General Manager, JD Power Asia Pacific.

Dealers, though trying, are struggling to provide customers with a user-friendly digital experience. According to the study, 40% of vehicle owners indicate having experienced problems scheduling an appointment by website/ app, such as preferred time not available (13%); reservation conditions are too restrictive (14%); and website/ app is too difficult to use (14%).

“There’s still a gap between merely deploying digital technologies and actually using them to improve customers’ experiences, address their needs and meet their expectations. That explains why very few vehicle owners in China have tried digital channels to schedule dealer services so far, despite the high satisfaction level that using them brings,” George noted. Study findings show that only 13% of owners scheduled their last service visit via digital channels, while 59% chose to call for an appointment.

Following are additional findings of the study:

• Overall customer satisfaction slightly increases: The 2018 China Customer Service Index score for the industry (710) is 2 points higher than last year. Luxury brands have improved the most (+4 points), compared with mass market brands (+1). The CSI score for Chinese domestic brands is 688, which is the same as in 2017.
• Authorized dealers are losing customers and revenues: Among customers whose last visit for service was with a non-authorized dealership, 61% of the vehicles are still under warranty, compared with 54% in 2017. Vehicle owners’ annual expenditures on maintenance/ repair at authorized dealerships has decreased to RMB 1,956 (USD 291) from RMB 2,450 (USD 365) in 2017.
• Customer satisfaction with non-authorized dealership improves: Non-dealer’s advantages in convenience, speedy service, competitive price and gradually improved service have been earning trust from vehicle owners. Customer satisfaction with non-chain street quick service center, auto salon and parts service store has increased by 0.67 points (on a 10-point scale), 0.36 points and 0.28 points, respectively, from 2017.

Study Rankings

Audi ranks highest in satisfaction with dealer service among luxury brands, with a score of 774. Porsche (767) ranks second and Cadillac (759) ranks third.

Changan Ford ranks highest in satisfaction with dealer service among mass market brands, with a score of 737. Changan Ford is followed by Volkswagen (735) and Beijing Hyundai (730). Roewe (720), Geely (719) and BAIC Senova (715) are the three domestic brands to rank among the top 10 mass market brands.

The China Customer Service Index (CSI) Study, now in its 18th year, delivers a comprehensive analysis of vehicle owners’ service experiences and measures customer satisfaction with their dealer service by examining five key measures: service initiation (21%); service advisor (19%); service quality (22%); service facility (20%); and vehicle pick-up (18%).

The study, which examines 61 passenger-vehicle brands, is based on data collected from 46,430 new-vehicle owners who purchased their vehicle between November 2013 and May 2017. The study was fielded between November 2017 and May 2018 in 67 major cities in China.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]
Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]

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

# # #
NOTE: Two charts follow.

[[{“fid”:”951941″,”view_mode”:”default”,”fields”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:false,”field_file_image_title_text[und][0][value]”:false},”link_text”:null,”type”:”media”,”field_deltas”:{“1”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:false,”field_file_image_title_text[und][0][value]”:false}},”attributes”:{“class”:”media-element file-default”,”data-delta”:”1″}}]]

[[{“fid”:”951946″,”view_mode”:”default”,”fields”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:false,”field_file_image_title_text[und][0][value]”:false},”link_text”:null,”type”:”media”,”field_deltas”:{“2”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:false,”field_file_image_title_text[und][0][value]”:false}},”attributes”:{“class”:”media-element file-default”,”data-delta”:”2″}}]]

 

Budgets as Important as Understanding Vehicle Product Needs, JD Power Finds

2018-07-02

jdp-root

SHANGHAI: 3 July 2018 — Given most vehicle buyers in China tend to purchase cars within their budget, it is important for automotive manufacturers and dealers to recommend the best- performing cars within their budget, according to the JD Power 2018 China Sales Satisfaction Index (SSI) Study.^SM

The study shows that most new-vehicle buyers (92%) in China have set a budget before shopping, with the average purchase price nearly always falling into the buyer’s pre-planned budget.  Unfortunately, according to study findings, manufacturers and dealers don’t discuss their customers’ budgets with them in the early stages of shopping to get the “right” price, which impacts the customer experience and satisfaction. For example, only 66% of buyers say their salesperson asked about their budget during the sales process. 

Buyers who use price guides as their only information source have the lowest satisfaction (663 on a 1,000-point scale), compared with buyers use other information sources. A large portion of rejecters cite various price-related reasons for not purchasing a specific model: dealer’s price too high (24%); model/ make too expensive (20%); or unclear on price dealer would sell vehicle for (14%).

“Currently, vehicle buyers in China are the youngest ever measured, with 57% are younger than 33 years old, according to study findings this year. They are good at making smart and wise purchase decisions, which means looking for the best-performing cars within their budget,” said Jacob George, Vice President and General Manager, JD Power Asia Pacific. “Knowing the shopper’s budget is as important as understanding their vehicle product needs. Demonstrating the features and value of a vehicle within the customer’s budget is the top priority for dealer sales staff.”

Following are key findings of the 2018 study:

• Satisfaction rises: The overall sales satisfaction (651) is 11 points higher than last year. Satisfaction with Chinese domestic brands is 629, which is only two points higher than last year and which is lower than the rate of improvement industry-wide.
• Knowledgeable, honest and attentive dealers matter: Among the top 6 reasons customers say they “definitely would not” shop a dealer in the future, four rejection reasons relate to how the salesperson interacts with the shopper: dealer staff did not seem knowledgeable; dealer was not completely honest with me; dealer was too busy/not enough attention; and dealer staff rude/not courteous. This further emphasizes that a well-trained sales staff with good personal skills is one of the most valuable resources for dealers to have.
• New-vehicle buyers have little knowledge of financing programs: Few buyers (9%) indicate they have a detailed understanding of the financing program of their selling dealer, while most buyers are either just “aware” (38%) or have “little knowledge” (33%) of the programs.

2018 Sales Satisfaction Rankings

Audi ranks highest among luxury brands, with a score of 703, marking the sixth consecutive year as the highest-ranked brand. Porsche ranks second with a score of 694.

Changan Ford ranks highest among mass market brands for the first time, with a score of 687, followed by Beijing Hyundai at 682.

The study, now in its 19th year, measures sales satisfaction among new-vehicle buyers and rejecters. Buyer satisfaction is based on six measures (in order of importance): delivery process (21%); salesperson (19%); dealer facility (18%); sales initiation (17%); deal (16%); and online experience (8%). Rejecter satisfaction is based on five measures (in order of importance): salesperson (26%); variety of inventory (24%); dealer facility (21%); negotiating (15%); and price fairness (14%). Scores for each measure are reflected in a combined index based on a 1,000-point scale.

The 2018 China Sales Satisfaction Index (SSI) Study is based on responses from 24,625 vehicle owners in 71 cities who purchased their new vehicle between May 2017 and March 2018. The study was fielded from November 2017 through May 2018.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

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

[[{“fid”:”949626″,”view_mode”:”default”,”fields”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:false,”field_file_image_title_text[und][0][value]”:false},”link_text”:null,”type”:”media”,”field_deltas”:{“4”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:false,”field_file_image_title_text[und][0][value]”:false}},”attributes”:{“class”:”media-element file-default”,”data-delta”:”4″}}]]

[[{“fid”:”948586″,”view_mode”:”default”,”fields”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:false,”field_file_image_title_text[und][0][value]”:false},”link_text”:null,”type”:”media”,”field_deltas”:{“2”:{“format”:”default”,”field_file_image_alt_text[und][0][value]”:false,”field_file_image_title_text[und][0][value]”:false}},”attributes”:{“class”:”media-element file-default”,”data-delta”:”2″}}]]

 

Delivering on Promise Drives Satisfaction for Credit Card Customers in China, JD Power Finds

2018-04-19

jdp-root

SHANGHAI: 26 April 2018 — With over 20% growth in new credit cards issued last year in China, cardholders are putting pressure on their issuer’s customer service, benefits and rewards to garner satisfaction. Issuers delivering on their promise drives satisfaction and loyalty, according to the JD Power 2018 China Credit Card Satisfaction (CCS) Study.^SM

The study identifies and measures key drivers of credit card satisfaction among customers in China and its impact on customer loyalty and advocacy. Of the 35% of customers who switched their primary card in the past 12 months, 19% switched for better customer service; and 45% say they definitely would recommend the card to their friends and family.

“If customers have a positive experience and receive great customer service from their card issuers, they will be more loyal, increase spending and be more likely to have multiple products with the issuer,” said Winston Xue, General Manager of Financial Services at JD Power China. “With the high costs of acquiring new customers, it is important for issuers to onboard, engage and take care of these customers so they don’t switch to another card.”

The study also finds a preference for “simple instantaneous” rewards such as cashback, as opposed to “aspirational” rewards that require cardholders to earn enough points in order redeem. More than 20% of cardholders have not redeemed their rewards in the past 12 months, mainly due to not earning enough points. “The majority of customers (80%) do not fully understand how to earn and redeem rewards. Clear and concise communication helps drive satisfaction and, in turn, result in subtantially higher spending,” added Xue.

Despite the prevalence of self-serve channels, 63% of customers who experience a problem still prefer to seek a resolution through their issuer’s call centre. Therefore, it is important for issuers to ensure they are there for their customers at these key moments, but also to add value during these interactions, as satisfaction can improve by 54 index points (1,000-point scale).

Other findings of the study include:

• Customers prefer paying with credit card while travelling: Nearly two-thirds (62%) of cardholders have travelled internationally in the past 12 months for either business or leisure. Almost all (97%) cardholders have used a credit card while travelling, while 73% have used a mobile payment app (i.e. Alipay or WeChat Pay).

• Online interaction preferred: The study shows that customers are comfortable interacting with their card issuer digitally. Nearly 9 in 10 customers have used digital channels over the last 12 months, compared with 35% of those who have used call centres. However, call centre satisfaction is marginally higher than satisfaction with digital channels.

• Satisfaction increases with additional products: Nearly 9 in 10 (89%) customers have additional products or services with the same card issuer. Overall satisfaction is 55 points higher as compared with those who only have a credit card with their issuer.

Study Rankings

China Everbright Bank ranks highest in credit card satisfaction with an overall score of 806 and performs best in three of the six factors. Bank of Communications ranks second with a score of 805, and Industrial Bank ranks third with a score of 799.

JD Power China Credit Card Satisfaction (CCS) Study, now in its second year, examines customer satisfaction with the products and services provided by their main credit card issuer. The 2018 study measures overall satisfaction in six key factors: interaction (41%); billing and payment (20%); credit card terms (16%); benefits and services (10%); rewards (10%); and problem resolution (4%). The study is based on responses from 9,068 credit card customers. The study was fielded from December 2017 through January 2018.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

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