Category: China

Consumers in China Less Enthusiastic for Autonomous Vehicles, JD Power and Tencent Find

2016-04-21

jdp-root

Beijing, China: 22 April, 2016 — Consumers in China are less enthusiastic than their counterparts in the United States about the prospect of an autonomous vehicle future, according to JD Power and Tencent Auto joint research will be presented on April 23 at the Tencent “X Era” Automobile Summit. Drawing on a Pulse survey of approximately 5,000 consumers in China, JD Power finds that just 9% are very positive on the prospect of unmanned mobility, roughly half the number of positive responses seen among U.S. consumers.

The research results, presented by JD Power vice president and general manager of Asia-Pacific automotive operations Geoff Broderick, illustrate the unique preferences of auto consumers in China. Among the key findings, significant differences between Chinese and U.S. consumers are found in the preferences for autonomous driving technology, fuel efficiency and overall feature cost.

Chen Juhong, Vice President of Tencent said consumers are demanding technology in their vehicles. This demand will foster the development of a number of new high-tech features that are in, or coming soon to the Chinese market.  These technologies are paving the way toward autonomous vehicles.

“China is the world’s largest automotive market and traffic jams are a fact of daily life, but the number of motor vehicles per 1,000 people is still only a fraction of that in the United States and other developed markets,” said Broderick. “Driving in China is still a novelty and serves as a kind of socio-economic status symbol of having arrived. As the market matures, consumers in China are rapidly becoming exceptionally discerning and are seeking value when considering technology and other features. This creates a unique set of preferences that are important for manufacturers to understand.”

Following are the key findings in the JD Power presentation:

• Consumer Interest in Autonomous Vehicle Tech Lags: Just 9% of consumers in China are very interested in self-driving vehicles, compared with 18% in the United States.

• Energy Efficiency Less of a Priority: Unlike the U.S. market, where fuel efficiency consistently ranks among the top purchase reasons, consumers in China rate energy efficiency-related features near the bottom of their priority list. Three of the 10 least desired features among Chinese consumers are related to fuel efficiency.

• Feature Cost More Elastic in Chinese Market: Consumers in China are less likely to be influenced by cost when selecting vehicle features. The average cost of the top 10 features selected by Chinese consumers is $1,225 USD vs. just $775 USD in the U.S. market.

• Low Interest in Co-Ownership: While consumers in China are generally positive toward the concept of mobility on demand, just 4% of those surveyed say they are interested in the concept of co-ownership, suggesting that vehicle ownership continues to be a major priority for these consumers,

• Male vs. Female Preferences Differ: The top three technology features selected more frequently by men than women in China are drowsiness detection systems, pillar transparency technology and automatic lane keeping. Among women, the top features selected more often than by men are dash-mounted cameras, smart parking assist and remote control parking.

Data for the presentation was derived from the JD Power Pulse Survey, a rapid response-style consumer preference survey designed to quickly take the pulse of consumers on topical issues. The figures in this survey were based on 4,963 participants interviewed between March 23 and April 9, 2016, on the Tencent website and WeChat platforms.

Find more detailed information about the Tencent X-Era Automobile Summit, visit http://auto.qq.com

Learn more about JD Power automotive studies at www.jdpower.com/cars/

Media Relations Contacts

John Tews (USA); Troy, Mich.; 248-680-6218; [email protected]

Sunny Uberoi (Global), 917-747-2018;[email protected]

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

About Tencent

Tencent uses technology to enrich the lives of Internet users. Every day, hundreds of millions of people communicate, share experiences, consume information and seek entertainment through our integrated platforms. Tencent’s diversified services include QQ, Weixin/ WeChat for communications; Qzone for social networking; QQ Game Platform for online games; QQ.com and Tencent News for information; and Tencent Video for video content. Tencent was founded in Shenzhen in 1998 and went public on the Main Board of the Hong Kong Stock Exchange in 2004. The company is one of the constituent stocks of the Hang Seng Index. Tencent seeks to evolve with the Internet by investing in innovation, providing a hospitable environment for partners and staying close to users.

 

JD Power China Service Loyalty Study Finds Increased Vehicle Reliability Presents Challenges For Auto Dealers

2015-11-24

jdp-root

Shanghai:  26 November 2015 — With improved vehicle quality and a market slowdown in China, the frequency of customers visiting dealerships for after-sales service and, consequently, the spend on spare parts have declined year over year, increasing the need for dealers to build customer loyalty in order to bolster profitability, according to the JD Power 2015 China Service Loyalty Study^SM (SLS).

The study measures customer loyalty toward authorized dealerships during the first three to four years of vehicle ownership, based on their vehicle servicing experiences during the past 12 months. Customer service loyalty is examined across four measures (in order of importance): value (31%), service (25%), confidence (25%) and quality (19%) and. Overall loyalty is measured on a 1,000-point scale, with a higher score indicating a higher level of loyalty.

Driven in large part by an improvement in vehicle quality, the frequency of customers visiting a dealer for service has declined, affecting dealer after-sales profitability—fewer problems means fewer service visits. Overall, owners service their vehicles either at an authorized dealer or other service facility an average of 2.8 times per year in 2015, compared with 3.0 times in 2014. While after-sales service and spare parts are still the largest part of dealers’ overall profitability, the contribution they represent as a percentage of overall profitability has declined by 10 percentage points since 2013[1].

To offset the overall decline, authorized dealers need to improve customer loyalty to not only maintain, but also increase profitability. On average in the mass market segment, customers with high levels of service loyalty (overall satisfaction score of 665  and above) visit authorized dealerships 2.5 times annually, while those with low levels of loyalty (score of 630  and below) visit only 1.95 times. Moreover, customers with high service loyalty spend about twice as much as customers with low loyalty on an annual basis (RMB 2,338 vs. RMB 1,270, respectively). Thus, improving service loyalty translates into potential revenue opportunities: for every 1,000 customers, improving loyalty from low to high can bring in additional service revenue of more than RMB 828,700 per year.

“Given the recent market slowdown in China, fewer visits and low spending on after-sales service and spare parts, authorized OEMs and dealers need to focus on improving the customer experience and the quality of work,” said Frank Hu, senior director of sales and client services at JD Power China. “Creating a highly satisfying after-sales service customer experience builds loyalty, which leads to higher rates of repurchases and recommendations.”  

High loyalty leads to high dealer recommendation and repurchase rates, which can significantly increase after-sales dealer profitability. More than half (55%) of customers with high service loyalty say they “definitely would” return to an authorized dealership for maintenance or repairs, compared to 36% of those with low loyalty. With respect to advocacy, 28% of customers with high service loyalty say they “definitely would” recommend their dealer vs. 12% of those with low loyalty who say the same.

KEY FINDINGS

• Quality and Trust Are Competitive Differentiators for Authorized Dealers: The reasons customers most often cite for choosing an authorized dealer are “I trust this facility” and the dealer “performs higher quality work” (71% and 67%, respectively). These are also the most significant reasons that distinguish authorized dealers from other service facilities (54% trusts this facility and 51% performs higher quality work).
• Price and Convenience Are Key Reasons to Reject an Authorized Dealer: The two main reasons customers do not select an authorized dealer are related to price and convenience  (ease of getting an appointment, location, hours of operation, etc.), which holds true for both the luxury and mass market segments.
• It’s Easier to Get an Appointment: The most improved reason for selecting authorized dealerships instead of other service facilities is it’s “easy to get an appointment,” which improves by 7 percentage points from last year.

The 2015 China Service Loyalty Study (SLS) is based on evaluations from 17,530 owners of vehicles purchased between May 2011 and August 2012. The study analyzes 59 different brands, and was fielded from May to September 2015 in 46 major cities across China.

Media Relations Contacts

Michelle Meng; Beijing, China; +86 01 6569 2702; [email protected]

John Tews; Troy, Michigan USA; 001 248 680 6218; [email protected]

About JD Power

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok 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. 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

About McGraw Hill Financial www.mhfi.com 

 

Chinese Auto Manufacturers Continue to Close Quality Gap in JD Power Vehicle Dependability Study

2015-11-24

jdp-root

Shanghai: 26 November 2015 — Vehicle dependability has improved this year, as long-term reliability and durability approach mature market levels in aggregate problems reported, according to the JD Power 2015 China Vehicle Dependability Study^SM (VDS) released today. The rate of improvement in overall dependability is most pronounced among domestic Chinese brands, which have continued to narrow the quality gap with international brands in 2015.

Now in its sixth year, the study measures problems experienced during the past six months by original owners of vehicles after 37 to 48 months of ownership. The study examines 202 problem symptoms across eight categories: engine and transmission; vehicle exterior; driving experience; features/ controls/ displays; audio/ entertainment/ navigation; seats; heating, ventilation and cooling (HVAC); and vehicle interior. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

Key Findings:

• Overall Dependability Improves to Mature Market Levels: Overall vehicle dependability improves significantly in 2015, with total reported problems per 100 vehicles (PP100) dropping to 156 PP100 from 193 PP100 in 2014. This continued improvement in vehicle dependability has put China more in line with other, more mature automotive markets, including the United States, which it lags by just 9 PP100.

• Domestic Auto Brands Show Sharpest Improvement: Domestic brands improve the most among all brand origins (-48 PP100). In addition, the gap between domestic brands and international brands has continued to narrow year over year (27 PP100 vs. 43 PP100 in 2014), with engine/ transmission issues accounting for nearly three-fifths of this gap (16.0 PP100).

• Consumer Loyalty Influenced Heavily by Dependability: Loyalty among owners who report at least one problem is only half of that among owners who report no problems—16% of those who experience a problem say they “definitely would” recommend the same model vs. 28% of those who experience no problems, and 5% “definitely would” repurchase the same make vs. 10%, respectively.

• Manufacturing Defects Persist: Despite significant improvement overall, manufacturing defects continue to be an issue in the Chinese market.  While, on average, 33% of problems reported by U.S. owners are defect related (with the balance of reported problems design related), 55% of problems reported by those in China are defects (with the balance being design related).

• Korean Makes Have Fewest Problems: Korean makes have the fewest number of problems among mass market nameplates, averaging 130 PP100 vs. the mass market average of 160 PP100.

“The significant improvement in overall dependability from last year shows that the massive investments and efforts made in manufacturing in-country are finally paying off,” said Dr. Mei Songlin, vice president and managing director at JD Power. “Nevertheless, automakers should continually commit to quality and dependability, as they are extremely critical to customer loyalty. Over the years, automakers have provided an intense focus on initial quality, the first 90 days of ownership, but now is the time for automakers to make dependability a priority.”

 “The difference in the proportion of defect-related problems between China and the United States indicates that build quality still has room to improve in China. Further, as owners in China become more accustomed to owning a car, they will likely begin reporting more design-related issues,” said Ann Xie, director of research at JD Power.

Individual Model Dependability Scores:

Porsche ranks highest in vehicle dependability among luxury nameplates, averaging 97 PP100. Mercedes-Benz ranks second with 103 PP100 and Lexus ranks third with 107 PP100.

MINI and Volkswagen rank highest in a tie among mass market nameplates, with a score of 110 PP100. Renault ranks second (113 PP100) and Subaru ranks third (117 PP100).

Models from Beijing Hyundai rank highest in three of the 12 award segments. Mercedes-Benz ranks highest in two vehicle segments.

Models ranking highest overall in their respective segments are:

• Compact Mini: Geely Panda
• Compact Upper: Hyundai Verna
• Midsize Basic; Honda City Fengfan
• Midsize: Kia Cerato
• Midsize Upper Economy: MINI
• Midsize Upper: Hyundai Sonata
• Compact Luxury: Mercedes-Benz C-Class
• Midsize Luxury: Mercedes-Benz E-Class
• Midsize SUV: Hyundai Tucson
• Midsize Luxury SUV: Lexus RX
• Large Luxury SUV: Audi Q7
• Mini Van: Wuling Sunshine

The 2015 China Vehicle Dependability Study (VDS) is based on evaluations from 17,534 owners of vehicles purchased from May 2011 through August 2012. The study analyzes models in 21 vehicle segments, which include 160 different passenger-vehicle models from 59 different brands. The study was fielded from May through September 2015 in 46 major cities across China.

Media Relations Contacts

Michelle Meng; Beijing, China; +86 01 6569 2702; [email protected]

John Tews; Troy, Michigan USA; 001 248 680 6218; [email protected]

About JD Power

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok 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. 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

About McGraw Hill Financial www.mhfi.com 

 

Beijing Hyundai and Dongfeng Yueda Kia Score Highest in Overall APEAL among Consumers in China

2015-11-17

jdp-root

Shanghai: 18 November 2015 — Korea’s mass market auto brands Beijing Hyundai and Dongfeng Yueda Kia earn the highest marks for overall vehicle appeal among vehicle owners in China, according to the
JD Power 2015 China Automotive Performance, Execution and Layout (APEAL) Study.^SM 

The APEAL Study, now in its 13th year, serves as the industry benchmark for new-vehicle appeal. It measures how gratifying a new vehicle is to own and drive based on owner evaluations during the first two-to-six months of ownership. 

Following are some of the key findings in this year’s study. 

• Hyundai and Kia Top the Charts: Beijing Hyundai achieves the highest score in overall APEAL among consumers in China, with a score of 769. Dongfeng Yueda Kia (763) comes in second. Each brand scores 71 points and 65 points, respectively, above the mass market segment average. 
• China’s Domestic Brands Lag Imports: When broken down by country, Korean brands rank highest, with a score of 766. Following Korean makes in the rankings are European (714), U.S. (700) and Japanese (698) brands. China’s domestic brands rank lowest in overall APEAL (677). There is a 36-point gap in scores between international (713) and domestic (677) makes. 
• Higher Demand for Audio/ Communication/ Entertainment/ Navigation (ACEN) Features: Installation rates for both Bluetooth technology (50%) and navigation systems (61%) have increased year over year (10 percentage points and 29 percentage points, respectively). Notably, the navigation system installation rate has surpassed that in the United States (48%). In both China and the United States, higher overall APEAL scores are correlated with ACEN features installation.

“In the Chinese market, the perception of luxury and reliability, along with the presence of broad technological capabilities, drives overall customer satisfaction,” said Dr. Mei Songlin, vice president and managing director at JD Power. “Our study shows that there needs to be an ongoing effort to meet owner expectations with respect to the availability of the latest in-cabin features without deviating from the tried-and-true formula of providing excellent performance of this technology in order to attract and satisfy new-vehicle buyers.” 

Individual Model APEAL Scores 

Among the 10 model-level segment awards, Beijing Hyundai (Verna, Mistra, ix25 and ix35) receives four awards. Audi (A6L and Q5) receives two awards. Four of the highest-ranked models (Hyundai Verna, Hyundai Mistra, Hyundai ix25 and Porsche Macan) are also award recipients in the JD Power 2015 China Initial Quality Study^SM (IQS). In total, 10 vehicle segments are eligible for awards in the 2015 China APEAL Study.

Models receiving segment awards are: 

• Compact: BAIC Senova D20
• Compact Upper: Hyundai Verna
• Midsize Basic: Citroen C-Elysee
• Midsize: Kia K3/K3S
• Midsize Upper Economy: Hyundai Mistra
• Midsize Upper: Toyota Camry Classic
• Midsize Luxury: Audi A6L
• Compact SUV: Hyundai ix25
• Midsize SUV: Hyundai ix35
• Midsize Luxury SUV: Audi Q5 and Porsche Macan 

The 2015 China APEAL Study is based on evaluations from 21,611 owners of new vehicles purchased between October 2014 and June 2015. The study analyzes models in 21 vehicle segments and includes 270 different passenger-vehicle models from 71 different brands. The study was fielded from April through August 2015 in 57 major cities across China. Redesigned for 2015,[1] the study also examines 77 attributes across 10 vehicle performance categories: exterior; interior; storage and space; ACEN; seats; HVAC; driving dynamics; engine/ transmission; visibility and safety; and fuel economy.   

Media Relations Contacts

Michelle Meng; Beijing, China; +86 01 6569 2702; [email protected]

John Tews; Troy, Michigan USA; 001 248 680 6218; [email protected]

About JD Power Asia Pacific

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok 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. 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

About McGraw Hill Financial www.mhfi.com 

 

Problems Experienced by Luxury Car Owners with ACEN Technology Create Opportunities and Challenges for China Market

2015-10-28

jdp-root

Shanghai: 30 October 2015 — The only problem category in which luxury car owners experience more problems with their vehicle than mass market vehicle owners is with their audio, communication, entertainment and navigation (ACEN) system, according to the JD Power 2015 China Initial Quality Study^SM (IQS) released today. 

Now in its 16th year, the study serves as the industry benchmark for new-vehicle quality by examining problems experienced by new-vehicle owners within the first two to six months of ownership in two distinct categories: design-related problems and defects and malfunctions. For 2015, the China IQS has been redesigned to include more specific diagnostic questions around eight problem categories: interior; exterior; engine/ transmission; driving experience; features/ controls/ displays; seats; audio/ communication/ entertainment/ navigation; and heating/ ventilation/ air conditioning. The overall initial quality score is determined by problems reported per 100 vehicles (PP100), with a lower number of problems indicating higher quality. 

With the emergence and evolution of technology in new vehicles, owners of both luxury and mass market vehicles expect and demand increasing levels of functionality. Notably, ACEN is the only category in which owners of luxury vehicles experience more problems than owners of mass market vehicles. Additionally, the largest gap in the number of problems experienced by luxury car owners vs. mass market owners is 3 percentage points in the ACEN problem category (10% vs. 7%, respectively). According to the 2015 U.S. Initial Quality Study (IQS), 4 of the top 10 initial quality problems are in the ACEN category, which echoes the prevalence of this issue in that market also.  

“As ACEN is incorporated into mass market vehicles, usage will increase and more problems will be reported. It is expected that the incidence of such design-related problems will surpass those related to defects and malfunctions,” said Dr. Mei Songlin, vice president and managing director at JD Power. “In the China market, it is critical for automakers to address problems with ACEN and other technologies now to reduce problems, increase satisfaction and foster loyalty with the brand.” 

Dr. Songlin also noted that effective use of ACEN typically requires proper training. In many cases, first-time new-vehicle buyers are not familiar with such systems, and by showing them how the system works, dealers can help reduce related issues and improve satisfaction. 

Key Findings 

• ŸOverall initial quality averages 105 PP100 in 2015. Korean brands (80 PP100) outperform other brands for a fourth consecutive year, while initial quality for domestic Chinese brands is 120 PP100 and 98 PP100 for international brands.
• The gap in quality scores between domestic brands and international brands in 2015 is 22 PP100. The largest gaps in quality between domestic and international brands are with engine/ transmission (23 PP100 vs. 16 PP100, respectively); exterior (23 PP100 vs. 18 PP100); and driving experience (13 PP100 vs. 10 PP100).
• Unpleasant interior smell/ odor is the most frequently reported as well as the most severe problem this year. That problem, along with excessive fuel consumption; excessive road noise; engine loses power when A/C is on; and excessive wind noise are the top five most reported problems. 

2015 China IQS Ranking Highlights

Among luxury nameplates, Porsche ranks highest in initial quality with a score of 56 PP100. Volvo (64 PP100) ranks second among luxury brands and Land Rover ranks third (66 PP100).

Among mass market nameplates, Beijing Hyundai ranks highest with a score of 70 PP100 and receives four model-level awards. Renault ranks second (82 PP100) and FAW-Mazda ranks third (87 PP100). 

In total, 11 vehicle segments are eligible for awards in the 2015 China Initial Quality Study. Models receiving segment awards are:

• Compact: Chery E3
• Compact Upper: Hyundai Verna
• Midsize Basic: BAIC Senova D50
• Midsize: Hyundai Langdong Elantra
• Midsize Upper Economy: Hyundai Mistra
• Midsize Upper: Toyota Camry
• Compact Luxury: Audi A3
• Midsize Luxury: Mercedes-Benz E-Class
• Compact SUV: Hyundai ix25
• Midsize SUV: Kia Sportage
• Midsize Luxury SUV: Porsche Macan 

The 2015 China Initial Quality Study (IQS) is based on evaluations from 21,707 owners of new vehicles purchased between October 2014 and June 2015. The study analyzes models in 21 vehicle segments and includes 270 different passenger-vehicle models from 71 different brands. The study was fielded from April to August 2015 in 57 major cities across China. 

Media Relations Contacts

Michelle Meng; Beijing, China; +86 01 6569 2702; [email protected]
John Tews; Troy, Michigan USA; 001 248 680 6218; [email protected]

About JD Power Asia Pacific: www.jdpower.com
About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info
About McGraw Hill Financial www.mhfi.com

 

Intenders’ Cravings for Aftersales Information Open Doors for Automotive Manufacturer Websites

2015-09-10

jdp-root

Shanghai: 11 September 2015 — Automotive manufacturer websites are evolving to meet the increasing demands of new-vehicle intenders—consumers in China who expect to be in the market for a new vehicle within the next 12 months—according to the JD Power 2015 China Brand Website Evaluation Study^SM (BWES) released today.

The study, now in its third year, measures the usefulness of automotive manufacturer websites at the brand level during the new-vehicle shopping process by examining four key factors: navigation; speed; information and content; and appearance.  

The 2015 study finds that the percentages of intenders seeking traditional information—such as “options, features and specifications” and “feature demonstration”—on automotive manufacturer websites declines by 8 percentage points and 9 percentage points, respectively, from 2014. Instead, more intenders are looking for service-related information, such as news updates (+6 percentage points), online Q-and-A and online consulting services (+5) and online booking (+3). Moreover, in the information and content factor, the most impactful driver of satisfaction is still “vehicle image” (28%). Whereas the newly added “search after-sales service information” attribute (19%) has surpassed “options, features and specifications” (17%) and become the second most impactful one.

However, there is still a gap between what the intenders expect and what automaker websites are offering. For example, 42 percent of intenders want to see spare parts prices and the same percentage want to see service price information from automaker websites but perceive the information provided as insufficient.  Also, 73 percent of intenders indicate high purchase intention when an online tool for pricing is provided.

“The automaker’s website can serve effectively as a bridge between customers and manufacturers, especially for service-related needs. Therefore, it is essential that the website is a reliable source of information for customers,” said Dr. Mei Songlin, vice president and managing director at JD Power, Shanghai. “Increasingly, customers express the need for service-related information, but often those needs are not met. Automaker websites must distinguish themselves from other automotive websites in order entice intenders to visit their site.”

Overall satisfaction with automotive brand websites averages 769 on a 1,000-point scale in 2015. Mercedes-Benz (836) ranks highest among brands in website satisfaction, followed by BMW (826) and GAC Toyota (783). Great Wall (779) ranks fourth and is the only Chinese domestic brand website scoring above industry average. 

Key Findings

• Satisfaction with luxury brand websites (826) is higher than with mass market websites (760), with the largest gap between the two segments in information and content factor (72 points). The overall index for international brand websites (773) is 17 points higher than for domestic sites (756).
• Among intenders, 81 percent use automaker websites to locate automaker or dealer contact information. When contacting an automaker or dealer, 67 percent of intenders use the telephone; 64 percent use WeChat; and 54 percent use QQ. However, only 25 percent of intenders found WeChat contact information on automaker websites and only 19 percent have found QQ contact information.
• While the study focuses on automotive manufacturer websites, it also examines other automotive websites. Vertical websites—specialized websites that serve as an entry point to automotive information—have a higher penetration rate (66%) among intenders than vehicle forums (34%). The largest gaps in satisfaction between vertical websites and vehicle forums are in ease of finding and completeness of options, features and specification information and timeliness of industry news (0.22-point gap for each, on a 10-point scale).

The 2015 China Brand Website Evaluation Study is conducted via online from 5,242 new-vehicle intenders who indicate they will be in the market for a new vehicle within the next 12 months and are invited to visit one of the 29 brand websites that presents the particular brand/ model they intend to purchase. The study was fielded in May and June 2015 in 78 major cities in China.

Media Relations Contacts

Michelle Meng; Beijing, China; +86 01 6569 2702; [email protected]

John Tews; Troy, Michigan USA; 001 248-680-6218; [email protected]

 About JD Power Asia Pacific: www.jdpower.com

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

About McGraw Hill Financial www.mhfi.com 

 

Auto Manufacturer Websites Losing Ground to Specialty Sites; Relevant Content Is King for New-Vehicle Intenders

2015-08-26

jdp-root

Shanghai: 28 August 2015 — While the Internet is a frequent source of information for new-vehicle intenders, auto manufacturer (OEM) websites are losing ground to specialty sites, underscoring the need to provide intenders with more relevant and tailored information as well as a more engaging online shopping experience, according to the JD Power 2015 China New-Vehicle Intender Study^SM (NVIS) released today.

The study, now in its seventh year, is designed to provide automakers with key consumer insights by examining brand awareness, brand perception, make and model consideration, purchase consideration and information sources, as well as perceptions of various models among new-vehicle intenders.  New vehicle intenders are defined as consumers who intend to purchase a new passenger vehicle within the next 12 months—in 78 cities.

A majority (90%) of intenders use the Internet as source of information when shopping for a new vehicle. Among those intenders, 40 percent visit an OEM website, a significant 11 percentage point drop from 2014. The proportion of intenders choosing specialty websites has increased to 66 percent from 58 percent in 2014. This trend presents a huge challenge for OEMs in terms of connecting with intenders, who, overall, perceive specialty websites as providing more objective information related to pricing, product reviews and vehicle owner comments. For example, intenders want to see more information on financing services/ loan services and expert comments; however, intenders indicate this information is insufficient on OEM sites.

“Intenders seek relevant and tailored information during their decision-making process and want a more engaging experience during the actual shopping process, a critical step that OEM websites need to improve to entice potential buyers,” said Dr. Songlin Mei, vice president and managing director at JD Power China. “With the weak sales volume in China, automakers need to adjust their website strategy to capture the attention of new-vehicle intenders by providing them with an engaging experience that might convert them into buyers. To improve the website experience, it’s vital for OEMs to understand and analyze what the specialty sites are doing.”

Models with the highest rates of consideration in each vehicle segment are:

• ŸCompact Mini: smart fortwo
• Compact: Chevrolet Sail
• Compact Upper: Volkswagen Polo
• Midsize Basic: Buick Excelle
• Midsize: Chevrolet Cruze
• Midsize Upper Economy: Volkswagen Sagitar
• Midsize Upper: Buick Regal
• Compact Luxury: Audi A4L
• Midsize Luxury: Audi A6L
• Large Luxury: Audi A8L
• Compact SUV: Buick Encore
• Midsize SUV: Volkswagen Tiguan
• Large SUV: Buick Envision
• Compact Luxury SUV: Audi Q3
• Midsize Luxury SUV: Audi Q5
• Large Luxury SUV: BMW X5

KEY FINDINGS

• ŸSUV is the fastest growing segment in China. Among all models considered, the share of SUV models has increased to 36 percent from 27 percent in 2014. The share of midsize cars, the largest segment in terms of consideration share, has dropped to 48 percent from 54 percent in 2014.
• ŸSUV intenders have a higher budget in mind for their vehicle purchase than midsize car intenders. More than half (55%) of SUV intenders expect to purchase a model that costs at least RMB 200,000, on average, compared with just 36 percent for midsize car intenders and 45 percent for the study average.
• ŸA higher proportion of intenders indicate an intention to finance their vehicle purchase with a loan than the proportion of buyers who actually purchase with a loan (29% vs. 17%, respectively). In the mass market segment, 30 percent of intenders indicate an intention to purchase with a loan, compared to just 15 percent of buyers who actually purchase with a loan.
• ŸBuick is the most considered brand among new-vehicle intenders for purchasing within the next 12 months, followed by Shanghai Volkswagen, Audi, FAW-Volkswagen and Chevrolet.

The study also includes a brand influence score (BIS), which measures familiarity and favorability of automotive brands among new-vehicle intenders in China. BMW achieves a BIS of 684 on a 1,000-point scale, followed by Audi (666), Mercedes-Benz (646), Shanghai Volkswagen (639) and FAW-Volkswagen (636).

The 2015 China New-Vehicle Intender Study is based on responses from 9,732 new-vehicle intenders. The study includes 62 brands and was conducted online from May to June 2015.

Media Relations Contacts

Michelle Meng; Beijing, China; +86 01 6569 2702; [email protected]

John Tews; Troy, Michigan USA; 001 248-680-6218; [email protected]

About JD Power Asia Pacific: www.jdpower.com

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

About McGraw Hill Financial www.mhfi.com 

 

Increasingly, Vehicle Owners in China Choose Tire and Automobile Dealers for Tire Repair and Replacement

2015-08-11

jdp-root

Shanghai: 14 August 2015 — In the growing tire repair service market, more vehicle owners choose to repair or replace their tires at tire dealers—direct-sale stores and tire chain store—and automobile dealers than at service stations, a segment that has dramatically lost market share from 2012, according to the JD Power 2015 China New-Vehicle Tire Satisfaction Index (NV-TSI) Study^SM released today.

The study, now in its fourth year, measures satisfaction among new-vehicle tire owners during the first 12 to 36 months of ownership based on four factors: appearance; durability; ride; and traction/ handling. Owners evaluate the brand of tires they have on their vehicle. The study includes four vehicle model segments: luxury car; mass market car; SUV; and MPV/mini van. Satisfaction is calculated on a 1,000-point scale.

The proportion of new-vehicle owners who choose tire dealers for repair and replacement has increased to 31 percent in 2015 from 26 percent in 2012; and the proportion of owners who choose automobile dealers has increased to 38 percent from 31 percent. However, the proportion of new-vehicle owners selecting a service station has decreased significantly to 29 percent in 2015 from 41 percent in 2012.

This is the first year since 2012 that the service station category loses its dominant position in the marketplace to tire and automobile dealers in both repairing and replacing tires. This change is due in part to the upgraded strategy of tire manufactures to develop chain service stores. For example, Michelin’s first service store, called TyrePlus[1], opened in China in 2002. By July 2013, the number of stores had reached 850, and through aggressive expansion, the total reached more than 1,000 by May 2014, covering 56 percent of the five tier cities in China. This trend suggests that vehicle owners value the professional services of a tire and automobile dealer.

The study finds that “damage from puncture” is the most frequently experienced problem by vehicle owners (20%). Among those owners experiencing this problem, 29 percent choose a tire dealer for repair service, 29 percent choose an automobile dealer and 26 percent choose a service station. “Road hazard damage” is another frequent problem. Among vehicle owners experiencing this problem, 26 percent choose a tire dealer for repair service and 38 percent choose an automobile dealer, while just 14 percent choose a service station.

Nearly one-third (31%) of new-vehicle owners report tire problems during their ownership in 2015. As the number of problems increase, owner satisfaction decreases. Among owners who experience no problems with their tires, satisfaction averages 630 and repurchase and recommendation rates are 32 percent and 20 percent, respectively. However, among owners who experience three tire problems, satisfaction declines significantly (585), as do repurchase and recommendation rates (19% and 10%, respectively).

“Satisfaction significantly impacts where owners choose to take their vehicle for tire replacement,” said Dr. Mei Songlin, vice president and managing director at JD Power China. “Consumers don’t typically have a choice of which tires come on their new vehicle, but they are the most frequently replaced components on vehicles during the ownership period. It is critical that tire manufacturers identify the issues that undermine customer satisfaction with their tire and service experience. Addressing these challenges and instituting performance metrics to improve the customer experience can help secure market share and brand loyalty.”

KEY FINDINGS

• Overall satisfaction is highest in the luxury car segment (674), followed by the SUV (648), mass market car (632) and MPV/ mini van (558) segments.
• A highly satisfying experience with new-vehicle tires drives high repurchase and recommendation rates for the same brand of tire. While 39 percent of highly satisfied[1] owners say they “definitely would” choose their current tire brand when replacing their tires and 25 percent say they would recommend the same tire brand, a substantially smaller percentage of owners with low satisfaction[2] say the same—19 percent and 11 percent, respectively.
• Michelin ranks highest in the brand impression index among non-owners and owners, indicating a strong brand position in the industry. Continental and Bridgestone rank second and third respectively among owners. Among non-owners, Bridgestone and Goodyear rank second and third, respectively.

Study Rankings

Goodyear ranks highest in the luxury car segment for a second consecutive year, with a score of 698.

Nexen ranks highest in the mass market car segment, with a score of 698.

Goodyear ranks highest in the SUV segment for a second consecutive year, with a score of 691.

Maxxis ranks highest in the MPV/ mini van segment for a second consecutive year, with a score of 636.

The 2015 China New-Vehicle Tire Satisfaction Index Study is based on responses from 14,374 vehicle owners who purchased their vehicle between October 2010 and May 2014 and examines 24 tire brands.  The study was fielded between October 2014 and May 2015 in 51 major cities in China.

Media Relations Contacts

Michelle Meng; Beijing, China; +86 01 6569 2702; [email protected]

John Tews; Troy, Michigan USA; 001 248 680 6218;[email protected]

About JD Power Asia Pacific: www.jdpower.com

About JD Power and Advertising/Promotional Rules www.jdpower.com/corporate

About McGraw Hill Financial www.mhfi.com

 

JD Power and Percipient to Form Strategic Alliance to Provide Customer Satisfaction Enhancement Programs to Financial Services Businesses in Asia

2015-08-10

jdp-root

SINGAPORE: 12 AUGUST 2015 — JD Power and Percipient today announced  their intention to form a strategic alliance to provide a range of customer satisfaction enhancement programs to banks and other financial institutions in Asia.

JD Power is a global marketing information services company with offices in Singapore, Tokyo, Beijing and Shanghai. Its quality and satisfaction measurements cover markets in China, India, Australia and Southeast Asia and provide detailed customer experience feedback across industries as diverse as automotive, insurance and banking.

Percipient is a technology and data analytics company based in Singapore. The company is focused on helping organizations apply comprehensive customer data to build a strong customer-first culture.

JD Power and Percipient plan to launch their alliance with a Channel Optimization program offered to retail banks in several Asian countries, including Singapore, Malaysia and India. This enables banks to assess how best to allocate channel resources in order to maximize customer satisfaction. The program draws on JD Power’s expertise in customer satisfaction benchmarks and drivers, combined with Percipient’s capabilities in the area of customer segmentation, customer profitability and channel analytics.

“In order to stay competitive, banks today must invest in multiple channels, from branches, ATMs and call centres, to Internet and mobile banking. But how can banks be sure that their customers are getting the channel service that they want? Our deep understanding of customer satisfaction indicators allows us to help banks answer this question,” said Gerrit Kuyntjes, vice president and general manager of JD Power Asia Pacific.

“We are very excited to have the opportunity to team up with JD Power,” said Navin Suri, Percipient’s chief executive officer. “Together with our customer analytics skills and financial sector experience, we believe that we bring something unique to the Asian banking environment.”

JD Power and Percipient have signed a Memorandum of Understanding. JD Power and Percipient expect to follow up their Banking Channel Optimization program with other programs that can improve customer satisfaction with their financial services providers, thereby helping financial institutions lift their customer penetration and investment returns.

Media Relations Contacts

Xingti Liu; JD Power Asia Pacific; Singapore; Phone 65-6733-8980; [email protected]

Ai Meun Lim, Percipient, Chief Product Officer; Singapore; Phone 65-9795-4931; [email protected]

About JD Power Asia Pacific http://asean-oceania.jdpower.com

About McGraw Hill Financial www.mhfi.com

About Percipient www.percipientcx.com

 

Customer Spending at Authorized Dealers Hits Four-Year Low; High-Quality Services Drive Additional Revenue

2015-07-29

jdp-root

Shanghai: 31 July 2015 — The average amount of customer spending at authorized dealers has plunged to its lowest level since 2012 in both the luxury and mass market segments, according to the JD Power 2015 China Customer Service Index (CSI) Study.^SM

The study, now in its 15^th year, measures satisfaction among vehicle owners who have owned their vehicle between 12 and 36 months and who visited an authorized dealer’s service department for maintenance or repair work during the past six months. The 12- to 36-month ownership time frame typically represents a substantial portion of the vehicle warranty period. The study examines five factors to determine overall customer satisfaction with dealer service (in order of importance): service quality (22%); vehicle pick-up (20%); service facility (20%); service advisor (19%); and service initiation (19%). The customer satisfaction score measures the performance of authorized dealers in meeting customers’ expectations of their after-sales experience. Satisfaction is measured on a 1,000-point scale.

The study finds the average amount of customer spending has decreased dramatically year over year, to RMB 3,480 from RMB 4,288 in the luxury segment, and to RMB 1,558 from RMB 1,710 in the mass market segment. The slump is due in part to government policies targeting the automotive industry. The two most impactful governmental mandates are the Guiding Opinions on Transformation and Upgrading of Automobile Service Industry for Service Quality Improvement policy, enacted on September 18, 2014, which encourages free circulation of spare parts; and the Provisions on the Liability for the Repair, Replacement and Return of Domestic-Use Automobile Products policy that took effect on October 1, 2013, which requires the warranty period to be not less than three years or 60,000 kilometers in mileage. Customer reaction to the regulatory changes has been favorable as the proportion of customers who perceive servicing costs to be reasonable has increased to 94 percent in 2015 from 88 percent in 2012.

Despite the four-year low in spending at authorized dealerships, there is an upward trend in the after-sales service market volume—including revenue from after-sales service and spare parts for maintenance and repairs. In 2014, the after-sales service market volume has increased by RMB 37.3 billion. Additionally, the 2015 study finds that a higher-quality service experience significantly impacts revenue growth. Specifically, among authorized dealerships that perform 60 points above industry average, service revenue increases by 8.82 percent and the rate of repurchasing increases by 0.66 percent. To put this gain into perspective: on an annual basis,  assuming that a dealership services 1,000 customers per year at an average spend of RMB 3,195 per customer, the increase in satisfaction could result in an additional service revenue of more than RMB 281,900. In terms of sales revenue, with an average purchase price of RMB 175,000, additional sales revenue could result in more than RMB 1.15 million. 

“Improving service quality not only drives additional revenue growth, but it also improves customer loyalty,” said Ann Xie, senior research manager at JD Power. “Authorized dealers really need to understand their customers’ emotional needs and deliver customer-oriented quality service. This strategy can be particularly effective in the intensely competitive automotive industry in China.”

Key Findings

• Service advisors have become an important aspect of quality service at authorized dealers, as well as one of their core strengths. They are the key touch point on which authorized dealers can build customer relationships and trust. In the mass market segment, nine of the 23 key performance indicators (KPIs) are related to the service advisor factor; in the luxury segment, five of the 13 KPIs are related to service advisor.
• Another important aspect of quality service at authorized dealers is service facility. In the mass market segment, eight of the 23 KPIs are related to the service facility factor; in the luxury segment, five of the 13 KPIs are related to service facility.
• The quality of amenities in the lounge area impacts satisfaction in the service facility factor. For example, satisfaction is highest when high-speed Wi-Fi is provided but drops considerably when it is low speed, with an 81-point satisfaction gap in the mass market segment and a 91-point gap in the luxury segment.

CSI Study Rankings

Audi ranks highest among luxury brands, with a score of 812.

In the mass market segment, Dongfeng Citroën ranks highest with a score of 804, followed by Beijing Hyundai at 794 and Dongfeng Peugeot at 780. Domestic brands Dongfeng Fengshen (762), Chery (746) and FAW Car (740) rank fifth, sixth, and eighth, respectively. This is the first time three domestic brands have ranked among the 10 highest-performing brands.

The 2015 China Customer Service Index (CSI) Study, which examines 68 passenger vehicle brands, is based on street intercept and face-to-face interviews with 17,976 new-vehicle owners who purchased their vehicle between October 2011 and May 2014. The study was fielded between October 2014 and May 2015 in 51 major cities in China.

Media Relations Contacts

Michelle Meng; Beijing, China; +86 01 6569 2702; [email protected]

John Tews; Troy, Michigan USA; 001 248 680 6218;[email protected]

About JD Power www.jdpower.com

About JD Power and Advertising/Promotional Rules www.jdpower.com/corporate

About McGraw Hill Financial www.mhfi.com