Category: Japan

Customer Satisfaction with Dealer Service Lags among Mini-Car Owners Who Previously Owned a Mass Market Brand

1970-01-01

jdp-root

TOKYO: 26 September 2012 — In the face of mounting competition from major makes, mini-car dealerships are facing a severe challenge in satisfying customers in after services, particularly among owners who have switched from domestic mass market brands, according to the JD Power Asia Pacific 2012 Japan Customer Service Index (CSI) Study^SM released today.

The study, now in its 11th year, measures overall customer satisfaction with service performed at automotive dealer facilities based on five factors (in order of importance): service representative (23%); service charge (22%); service content (21%); service system/process (19%); and facility (15%). Overall customer satisfaction is reported as an index score based on a 1,000-point scale.

The study finds that among customers who switched from a domestic mass market brand to a mini-car brand,  overall customer satisfaction with the dealer service averages 584 points, compared with 596 points among customers who have stayed with mini-car brands.

Overall satisfaction among customers who switched from a domestic mass market brand to a mini-car¹ brand is 584 points, which is 32 points lower than among those who switched conversely. The former group expressed lower satisfaction in all factors examined in the study, particularly in service representative, service system/process and service content. Significant gaps were identified in the service representative’s attitude and demeanor toward the customer; service proposals regarding service needs/vehicle condition; and prompt and courteous work. Customers who switched from a domestic mass market brand to a mini-car brand also indicate that dealers execute fewer key service activities.

“The mini-car segment, which currently accounts for one third of total industry volume in Japan, is becoming a main battlefield with major players announcing launches of their min-car models,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific, Tokyo. “Competition from major makes, such as Toyota, Honda and Nissan, has not only posed a threat to conventional mini-car brands in gaining and retaining customers, but creates a severe challenge to the mini-car dealerships, who typically are less competitive in terms of size, resources and quality of customer handling. Improvements in customer service, basic courtesy and the overall service process are urgently needed.”

According to Kimoto, the inability to provide services that measure up to these expectations may directly impact customer intentions to return to the selling dealers for service, routine maintenance, shaken² inspections, and other services, as well as repurchase and recommendation intentions for the selling dealer.

Overall service satisfaction averages 617 index points in 2012 in both the luxury and mass market brand segments combined. Lexus ranks highest in the luxury segment with an overall CSI score of 761 points, which is 64 points higher than the segment average of 697. Lexus performs particularly well in all five factors. Following Lexus in the segment rankings are BMW (703); Mercedes Benz (674); and Audi (670).

MINI ranks highest in the mass market brand segment with a score of 628 points. MINI performs particularly well in the service representative, service content and facility factors. Honda (627) ranks second in the segment, performing particularly well in service system/process. Nissan (626) ranks third, and Toyota and Volkswagen (618 each) tie for fourth.

The 2012 Japan Customer Satisfaction Index (CSI) Study measures passenger vehicle owner satisfaction with after-sales service obtained during the most recent one-year period at the dealership where the vehicle was purchased. The study is based on responses from 12,513 domestic and import vehicle owners after 15 to 50 months of ownership. The online survey was fielded from late May to late June 2012.

The Japan Customer Satisfaction Index (CSI) Study is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in Japan. Other 2012 studies conducted by JD Power Asia Pacific include:

• The Japan Winter Tire Customer Satisfaction Index Study was released in late May 2012
• The Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership, was released in late August 2012.
• The Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in late August 2012.
• The Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership, will be released in late September 2012.
• The Japan Original Equipment Tire Satisfaction Study will be released in October.
• The Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with original equipment and aftermarket navigation systems, will be released in October 2012.
• The Japan Replacement Tire Satisfaction Study will be released in November 2012.

² Shaken inspections are performed to ensure that vehicles are properly maintained, safe to be on the road and have not been illegally modified. These inspections are required every two to three years.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Follow us on Twitter: @JDPower

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

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Increasing Satisfaction with Fuel Efficiency, Ride and Quietness in Original Equipment Tires is Key to Capturing High-Value Replacement Tire Customers in Japan

1970-01-01

jdp-root

TOKYO: 10 October 2012 — Although owners who prioritize tire performance over price consider fuel efficiency, ride, and quietness important when purchasing replacement tires, overall owner satisfaction is low with the performance of these elements on their current original equipment tires, according to the JD Power Asia Pacific 2012 Japan Original Equipment Tire Customer Satisfaction Study^SM released today.

The study, now in its 11th year, measures customer satisfaction with original equipment (OE) tires fitted on new vehicles. Customer satisfaction with OE tires is based on four factors: handling/traction; ride/quietness; durability/reliability; and appearance. Overall satisfaction scores (based on a 1,000-point scale) are calculated based on customer evaluations of 17 attributes.

The study finds that tire brand images have often not caught up with customer expectations with regard to fuel efficiency, ride and quietness. For example, while overall fuel economy ratings attributed to OE tires has increased for three consecutive years, satisfaction with the fuel economy attribute are particularly low in the minivan, SUV and passenger car segments. Although 52 percent of owners consider fuel economy important when purchasing replacement tires, even the highest-rated brand for this area gets high ratings for fuel efficiency from only 24 percent of its owners. Satisfaction scores are also particularly low for the ride/quietness factor in the mini-car segment and compact car segments.

Satisfaction in these areas is especially important among owners who place a heavy emphasis on performance. The study finds that when purchasing replacement tires, 40 percent of owners cite performance as an important consideration, rather than price. These owners pay, on average, 39 percent more for their replacement tires than other owners.

“For tire makers, original equipment tires are a key point of contact with vehicle owners,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific, Tokyo. “A wide gap exists between customer expectations for replacement tire fuel efficiency, ride and quietness and their perception of their OE tires. To capture a greater number of owners willing to spend more for better tire performance in the replacement market, tire makers need to focus on offering products with high quality and appropriately market their strengths.”

The study finds that satisfaction with OE tires has a direct impact on owners’ intentions to repurchase the same brand of tires. Among owners who are highly satisfied (overall satisfaction scores in the top 25%), 82 percent indicate that they “definitely will” or “probably will” repurchase their current brand of OE tires. Repurchase intention declines to 68 percent among owners who are somewhat less satisfied (overall satisfaction scores in the next 25%).

2012 Ranking Highlights

The overall satisfaction rankings in the four vehicle segments that are award-eligible are as follows:

• Mini-car segment: Bridgestone ranks highest for a third consecutive year, followed by Yokohama. Bridgestone performs well in all four factors.  
• Compact car segment: Bridgestone ranks highest for a sixth consecutive year, and Yokohama ranks second. Bridgestone performs particularly well in the handling/traction, ride/quietness, and appearance factors.
• Passenger car segment: Michelin ranks highest for an eighth consecutive year, followed by Continental and Bridgestone, respectively. Michelin performs particularly well in the ride/quietness and durability/reliability factors.
• Minivan segment: Yokohama ranks highest, while Bridgestone ranks second. Yokohama performs particularly well in the handling/traction, ride/quietness, and appearance factors.

The 2012 Japan Original Equipment Tire Customer Satisfaction Index (OE-TSI) Study is based on responses from 5,562 new-vehicle owners during the first five to 14 months of ownership. The Internet-based study was fielded in July 2012.

The study is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in Japan. Other 2012 studies conducted by JD Power Asia Pacific include:

• The Japan Winter Tire Customer Satisfaction Index Study was released in late May 2012.
• The Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in late August 2012.
• The Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership, was released in late August 2012.
• The Japan Customer Satisfaction Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities, was released in late September 2012.
• The Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership, was released in late September 2012.
• The Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with original equipment and aftermarket navigation systems, will be released in October 2012.
• The Japan Replacement Tire Satisfaction Study will be released in November 2012.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]
About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Follow us on Twitter: @JDPower

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

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While Price Entices Auto Insurance Customers in Japan to Buy a Policy, It Doesn’t Buy Their Loyalty

1970-01-01

jdp-root

TOKYO: 12 November 2012 — Although price has the greatest influence on customer satisfaction at the time of purchase of a new insurance policy, price alone does not promote long-term customer loyalty, according to the JD Power Asia Pacific 2012 Japan Auto Insurance Shopping Satisfaction Study^SM and the 2012 Japan Auto Insurance Satisfaction Study,^SM both released today.

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

Policy has the greatest influence on satisfaction at the time of purchase of a new insurance policy, according to the 2012 Japan Auto Insurance Shopping Satisfaction Study. However, few customers who select their insurance provider based solely on price expect to remain with that carrier beyond the term of the policy. While 76 percent of customers who purchase through the direct-type channel select their insurer based on price, only 7 percent of customers who purchase a policy because of low price indicate that they “definitely will” renew with their insurer. In comparison, only 11 percent of customers who purchase through an agency-type insurer cite low price as a reason for selection, and 16 percent indicate that they anticipate renewing with their insurer.

In addition, for direct-type insurers and agency-type insurers alike, satisfaction and renewal intention rates are high among customers who select their insurer for reasons other than price, such as products that meet their needs.

The Auto Insurance Shopping Satisfaction Study also finds that customer-focused activities such as providing advice or proposals about compensation details or riders are highly effective in improving customer satisfaction.

“Demonstrating to customers that an insurance policy is suited to their needs through means such as proposals, explanations and information before they purchase the policy is critical to increasing customer satisfaction and starting long-term customer relationship,” said Chie Numanami, manager at JD Power Asia Pacific, Tokyo.

The 2012 Japan Auto Insurance Satisfaction Study, which surveys current policyholders, finds that nearly 90 percent of customers are loyal to their insurer. The average time frame of continuous policy ownership is 13 years for customers of agency-type insurers and four years for customers of direct-type insurers. Only 8 percent of customers have changed insurers in the past year.

“It is predicted that insurance market expansion will peak due to factors such as Japan’s declining birthrate and aging population and the trend toward reduced driving, especially among young people,” said Numanami. “In these circumstances, it is even more critical that insurers increase their yields among current customers and build long-term relationships.”

The study finds that overall satisfaction is high among customers who say they “definitely will” renew with their current provider as well as among long-term customers who have continuously held their policy for 10 years or longer, and is more than 30 index points (on a 1,000-point scale) higher, on average, than those who are less likely to renew. In addition, satisfaction in the interaction and claims factors is particularly high among these customers.

The study finds that overall satisfaction is 25 points higher, on average, among customers whose insurer sends a policy expiration notice at least two months before the expiration date than among customers whose insurer sends an expiration notice nearer the expiration date. Furthermore, satisfaction is higher when customers are contacted by the insurance company or agency within one week of receipt of the expiration notice. However, only 31 percent of customers receive an expiration notice at least two months before expiration and only 16 percent are contacted by the insurance company or agency within one week of receipt of the expiration notice.

“Meticulous, appropriate response on the part of the insurer or agency is the key to fostering relationships of trust with customers,” said Numanami.

2012 Japan Auto Insurance Shopping Satisfaction Study

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

In the agency-type insurers segment, AIU ranks highest in customer satisfaction with an overall satisfaction score of 610 points. AIU performs particularly well across all three factors. Nipponkoa Insurance ranks second (586) and performs well in all three factors, while Fuji Fire & Marine Insurance ranks third (584), performing well in the policy offering and distribution channel factors.

In the direct-type insurers segment, Mitsui Direct General Insurance ranks highest in customer satisfaction with an overall satisfaction score of 669, and performs particularly well across all three factors. Saison Automobile & Fire Insurance ranks second (668), and performs well in all three factors. SBI Insurance ranks third (666) and performs well in the price factor.

The study is based on responses from 5,945 auto insurance (voluntary insurance) policyholders who have newly purchased auto insurance (including policyholders who switched from other insurance companies). The online study was fielded in May 2012.

2012 Japan Auto Insurance Satisfaction Study

The study measures the overall satisfaction of current automobile insurance (voluntary insurance) policyholders during the term of their auto insurance policy. Overall satisfaction is measured in five factors (in order of importance): policy offering; price; claims; policy statement; and interaction.

In the agency-type insurers segment, Fuji Fire & Marine Insurance ranks highest in customer satisfaction with an overall satisfaction score of 628 points and performs particularly well in the policy offering and policy statement factors. AIU ranks second (625), and performs well in the interaction and claims factors. Tokio Marine & Nichido Fire Insurance ranks third (617).

In the direct-type insurers segment, E.design Insurance ranks highest in customer satisfaction with an overall satisfaction score of 671 points and performs particularly well in the policy offering, price and claims factors. Saison Automobile & Fire Insurance ranks second (660) and performs particularly well in the policy statement, interaction and claims factors. SBI Insurance (659) ranks third and performs particularly well in the price factor. 

The online survey, based on responses from 8,758 auto insurance (voluntary insurance) policyholders, was fielded in May 2012.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com/corporate. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Follow us on Twitter: @JDPower

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

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Knowing Who to Contact After Filing an Auto Accident Claim, and Reaching Them Quickly, Drives Higher Overall Insurance Provider Customer Satisfaction
 

1970-01-01

jdp-root

TOKYO: 12 November 2012 — Knowing who to contact at the insurance company to file an auto accident claim, and being able to quickly reach them, is vital to high overall customer satisfaction, according to the JD Power Asia Pacific 2012 Japan Auto Insurance Claims Satisfaction Study ^SM released today.

The study examines satisfaction with the claims response of auto insurance (voluntary insurance) policyholders who have submitted an accident claim to their insurance company within the past two years. Customer satisfaction is determined by examining six factors that contribute to overall satisfaction with the auto insurance claims experience (in order of importance): settlement; first notice of loss; service interaction (which measures interaction with the service representative from the time of the accident report to settlement); appraisal; service process; and rental car experience. Overall satisfaction scores are based on a 1,000-point scale.

The study finds that satisfaction among customers who know who to contact at their insurance provider after filing a claim averages 708, compared with 397 among those customers who are unsure whom they need to contact.

While 97 percent of policyholders indicate that it is clear whom to contact at their insurance provider after an accident, only 39 percent are able to quickly make contact with their representative. Satisfaction scores among customers who are able to quickly contact their representative after an accident average 160 points higher than among customers who are not able to reach their insurance provider immediately following the accident.

“From accident report to claims settlement, the quality of the response of the insurance company representative or agency representative who serves as the point of contact with the customer plays a key role in impacting customer satisfaction,” said Chie Numanami, manager at JD Power Asia Pacific, Tokyo. “The development of a support system with a designated representative reassures the customer during the claims experience and increases satisfaction with the claims response, which ultimately becomes an important factor in customer retention.”

The study also finds that customers who have high satisfaction with the service interaction tend to also have high overall claims response satisfaction and higher intended loyalty to their insurance provider. Among customers with high levels of service interaction satisfaction, 95 percent say they intend to renew with same insurer, compared with 80 percent among customers with low levels of service interaction satisfaction. Intended loyalty rates are even more pronounced when the agency representative who helped initiate the policy purchase is the same person the customer speaks with to file an accident claim.

The study finds that there is a gap of more than 240 points in satisfaction between customers who switched insurers after the accident claims response experience and customers who renewed their contract with their insurance provider after an accident claims response experience. Notably, the gap in satisfaction scores between these groups for the service interaction factor is even larger.

AIU ranks highest in overall satisfaction with the claims response for a fourth consecutive year with a score of 755. AIU performs particularly well across all factors. Fuji Fire & Marine Insurance ranks second with 715, and performs well in the first notice of loss, appraisal and settlement factors. Nipponkoa Insurance ranks third (705), and performs well in the service interaction factor.

The 2012 Japan Auto Insurance Claims Satisfaction Study is based on responses of 6,903 auto insurance policyholders who submitted an accident claim to their insurance company within the past two years (including those who switched insurance companies after their accident and now have a policy with another insurer). The online study was fielded in May 2012.

The 2012 Japan Auto Insurance Claims Satisfaction Study follows the release of two related studies that examine satisfaction among auto insurance customers in Japan:

• The 2012 Japan Auto Insurance Shopping Satisfaction Study (released August 6) measures the satisfaction of customers who recently purchased auto insurance, including new policyholders, customers who purchased their most recent auto insurance (voluntary insurance) for the first time, and policyholders who switched from other insurance companies.    

• The 2012 Japan Auto Insurance Satisfaction Study (released August 6) measures the overall satisfaction of customers during their auto insurance policy term, including policy offerings and insurance company and agency response at the time of various procedures and inquiries.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com/corporate. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Follow us on Twitter: @JDPower

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

While Fuel-Efficient Replacement Tires Continue to Penetrate the Market, Customer Satisfaction with These Tires Has Plateaued
 

1970-01-01

jdp-root

TOKYO: 2 November 2012 — While fuel-efficient tires have continued to penetrate the market, customer satisfaction with these tires, designed to help improve vehicle fuel efficiency, has plateaued, according to the JD Power Asia Pacific 2012 Japan Replacement Tire Customer Satisfaction Index Study^SM released today.

The study, now in its fourth year, examines market trends and measures customer satisfaction with replacement tires (excluding winter tires). Overall customer satisfaction with replacement tires is based on four factors: handling/traction; ride/quietness; durability/reliability; and appearance. Overall satisfaction scores (based on a 1,000-point scale) are calculated based on vehicle owners’ evaluations of 17 attributes.

The study finds that 35 percent of vehicle owners with replacement tires have fuel-efficient tires on their vehicle, as defined by the tire labeling system introduced in January 2010, an increase from 27 percent in 2011.  This increase in fuel-efficient tire penetration coincides with availability of a wider range of fuel-efficient tires in the market. Fuel efficiency is more often cited as the reason for selecting fuel-efficient tires than are reasons for other tire-related features.

While market penetration is increasing, customer satisfaction with fuel-efficient tires has plateaued since 2011.  Satisfaction has leveled off primarily due to lower satisfaction among customers who did not anticipate fuel savings prior to purchasing fuel-efficient tires. Although they have fuel-efficient tires, customers aren’t satisfied with the performance of fuel-efficiency unless they actually recognize or experience improved fuel efficiency.

The study also finds that there is a correlation between the grade of low roll resistance, which is one of performance characteristics of fuel-efficient tires defined in the tire labeling system, and satisfaction with fuel efficiency. Satisfaction with fuel efficiency is higher for tires with higher-graded roll resistance. It is important to manufacturers that customers experience a satisfactory level of fuel efficiency in order to increase loyalty, as these customers tend to repurchase the same brand.

“It will be difficult to get customers to focus on a tire brand for being fuel efficient if many of the tire brands available in the market are defined as fuel-efficient tires in the future,” said Taku Kimoto, executive director of automotive division at JD Power Asia Pacific, Tokyo. “It becomes more imperative to have customers experience the fuel efficiency to be realized from their fuel-efficient tires. It is also important to offer tires not only with fuel efficiency, but also with a balanced combination of other features, such as ride/quietness and long-term durability, in order to meet customer needs.”

2012 Ranking Highlights

The overall satisfaction rankings in the three vehicle segments that are award-eligible¹ in 2012 are as follows:

• Mini-car/compact segment: Michelin ranks highest with a score of 652 points and performs well in all four factors. Michelin is followed by Dunlop (606 points) and Bridgestone (600 points).
• Passenger car segment: Michelin ranks highest with a score of 695 points and performs well in all four factors. Michelin is followed by Bridgestone (674 points) and Dunlop (641 points).
• Mini Van segment: Bridgestone ranks highest with a score of 644 points and performs well in all four factors. Followings are Dunlop (619 points) and Yokohama (611 points).  

The 2012 Japan Replacement Tire Customer Satisfaction Index Study is based on responses from 7,047 vehicle owners within the first three to 14 months of ownership who purchased their replacement tires between June 2011 and May 2012. The Internet-based survey for this study was fielded in August 2012.

The Japan Replacement Tire Customer Satisfaction Index Study is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in Japan. Other 2012 studies conducted by JD Power Asia Pacific are as follows:

• The Japan Winter Tire Customer Satisfaction Index Study was released in May 2012.
• The Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in August 2012.
• The Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership, was released in August 2012.
• The Japan Customer Satisfaction Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities, was released in September 2012.
• The Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership, was released in September 2012.
• The Japan Original Equipment Tire Satisfaction Index Study, which measures customer satisfaction with original equipment tires equipped on new vehicles, was released in October 2012.
• The Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with original equipment and aftermarket navigation systems, was released in October 2012.

¹ NOTE: For a segment award to be presented there must be at least four tire brands with sufficient sample. No SUV segments awards have been presented due to insufficient market representation among rankable tire brands in the segment.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information.  With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Follow us on Twitter: @JDPower

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

# # #

Avoiding Shortages of Maintenance and Repair Parts Is Key to Strengthening After-Sales Service for Heavy-Duty Trucks in Japan

1970-01-01

jdp-root

TOKYO: 28 February 2013 — Owner satisfaction decreases when vehicle downtime occurs due to a shortage of parts during after-sales maintenance and repair service, according to the JD Power Asia Pacific 2012 Japan Heavy-Duty Truck Ownership Satisfaction Study^SM released today.

The study measures overall satisfaction with heavy-duty truck manufacturers and their respective authorized truck dealers among commercial fleet owners, including managers of truck freight companies. Satisfaction is determined by examining four key factors (in order of importance): service (47%), sales (23%), vehicle (15%) and cost (14%).

In the 2012 study, overall satisfaction averages 621 (on a 1,000-point scale), which is unchanged from 2011. For all manufacturers, 2012 unit sales of trucks (payload capacity of four tons or more) are higher than they have been since 2009, boosted by reconstruction demand due to the Great East Japan Earthquake. Despite strong unit sales, the level of owner satisfaction remains consistent with the level in 2011.

As was the case in 2011, service has the greatest influence on overall owner satisfaction, compared with the other factors.

“After-sales service will remain important to increasing owner satisfaction,” said Taku Kimoto, executive director of automotive division at JD Power Asia Pacific, Tokyo. “At a time when manufacturers are increasing unit sales, they should ascertain the nature of demand for after-sales service; which after-sales service requirements are necessary for increasing owner satisfaction; and specific follow-up activities to be carried out after the sale of new trucks.”  

With respect to downtime, overall satisfaction is 60 points lower among owners who indicate they experienced vehicle downtime than among those who indicate they did not experience downtime. Moreover, overall satisfaction is 79 points lower among owners who experienced downtime due to parts shortages at the time of in-house after-sales maintenance and repair than among those who did not experience downtime due to the same reason.

“To reduce the risk of deterioration of owner satisfaction due to parts shortages, manufacturers and dealers alike should take measures to prevent shortages,” said Kimoto.

The study finds that overall satisfaction decreases as the number of repeat repairs increases with respect to dealer after-sales maintenance and repair service. There is a 119-point gap in satisfaction between owners who do not experience repeat repairs and those who experience needing the same problem repaired three or more times. Furthermore, the study finds that the proportion of owners who say they “definitely will not” purchase a vehicle from the same dealer again is one percent among owners who do not experience repeat repairs, compared with seven percent among those who experience repeat repairs three or more times.

“In the trucking industry, any amount of vehicle downtime may affect the livelihood of owners,” said Kimoto. “Measures by manufacturers and dealers to improve the repair quality in order to avoid repeat repairs and increasing vehicle downtime rates due to parts shortages may have a strong impact on owner loyalty.”

The study finds that the percentages of owners who say they “definitely will” purchase a vehicle from the same manufacturer again and “definitely will” use after-sale services from the same dealer again increase in direct proportion to overall owner satisfaction. Notably, among owners who are highly satisfied (satisfaction scores above 800), approximately one-half say they “definitely will” purchase and “definitely will” use the same dealer again.

Among the four brands included in the study, Hino ranks highest for a fourth consecutive year, with an overall satisfaction score of 631, and performs particularly well in the service, sales and vehicle factors. Following Hino in the rankings are Mitsubishi Fuso (621), UD Trucks (616) and Isuzu (615).

Now in its eighth year, the study is based on responses from 3,303 truck owners nationwide from 2,165 businesses. Each owner evaluated up to two manufacturers, with overall scores calculated based on fleet owners’ evaluations of 62 attributes. The study was fielded between November and December 2012.

The Japan Heavy-Duty Truck Ownership Satisfaction Study is one of 10 benchmark studies conducted by JD Power Asia Pacific in Japan. Other studies conducted by JD Power Asia Pacific include:

• The Japan Winter Tire Customer Satisfaction Index Study
• The Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process
• The Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership
• The Japan Customer Satisfaction Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities
• The Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership
• The Japan Original Equipment Tire Satisfaction Index Study, which measures customer satisfaction with original equipment tires equipped on new vehicles
• The Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with original equipment and aftermarket navigation systems
• The Japan Replacement Tire Satisfaction Study
• The Japan Light-Duty Truck Ownership Satisfaction Study, which measures customer satisfaction with light-duty truck manufacturers and their respective local authorized truck dealers

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at www.mcgraw-hill.com.

Follow us on Twitter: @JDPower

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

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Improvements in Satisfaction with Factors Such as Guest Rooms and the Check-In/Check-Out Process Contribute to an Increase in Overall Satisfaction with Hotels in Japan

1970-01-01

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TOKYO: 22 March 2013 — Overall satisfaction with hotels has increased year over year in Japan, driven primarily by improvements in satisfaction with factors such as guest rooms and the check-in/check-out process, according to the JD Power Asia Pacific 2012 Japan Hotel Guest Satisfaction Index Study^SM released today.

This study, now in its seventh year, measures hotel guest satisfaction across seven factors: reservations; check-in/check-out; guest rooms; food and beverage; hotel services; hotel facilities; and cost and fees. Hotels are evaluated in four segments, which are based on the room rate per night and guest room floor area.

The study finds that guest satisfaction in 2012 has improved from 2011 by an average of 10 points (on a 1,000-point scale). In each segment, hotels with higher overall guest satisfaction ratings have experienced an increase in satisfaction with guest rooms and check-in/check-out. Overall, hotels that have improved year over year in satisfaction with guest rooms have a higher proportion of guests who indicate they intend to stay at that same hotel again, compared with hotels that have not improved in the guest rooms factor from 2011.

“Many of the hotels that perform well in guest satisfaction are new or have had meticulous maintenance and renovations, which has contributed to improvement in satisfaction with guest rooms,” said Chie Numanami, manager at JD Power Asia Pacific, Tokyo. “In addition, hotel brands with high overall guest satisfaction are continuously engaged in hotel staff education, which has a positive effect on staff service quality.”

Staff service is reflected in such attributes as greeting guests with a smile; being highly attentive to guests; and treating them as an important guest.  

One of the key study findings is that, while some hotels have lowered room rates to boost occupancy rates, only 30 percent of guests who selected the hotel due to a lower rate have a desire to stay at the same hotel again. However, hotels that continuously improve both tangibles—such as the building and amenities—and intangibles—such as the staff service—have higher customer loyalty, compared with hotels that have not improved in these areas.

“Hotel brands that rely on excessive price discounting may successfully attract new guests initially, but without also focusing on true customer satisfaction strategies, they don’t often benefit from creating loyal customers,” said Numanami. “Engaging in tireless improvement in both the continuous provision of the well-maintained tangibles expected of a lodging facility and personal service to guests is more likely to contribute to business expansion.”

The following hotel brands rank highest in guest satisfaction within their respective segments:

¥35,000 or More per Night Segment
The Ritz-Carlton ranks highest in the segment for a seventh consecutive year, with an overall score of 799. The Ritz-Carlton performs particularly well in the reservations, check-in/check-out, guest rooms, food and beverage, hotel facilities, and hotel services factors. Following The Ritz-Carlton in the segment rankings is the Imperial Hotel (777), which performs particularly well in the cost and fees factor. Tied for third are the Hyatt Regency; Pan Pacific; The Prince; and Westin (723 each).

¥15,000 to Less than ¥35,000 per Night Segment
Royal Park Hotels ranks highest in the segment for a sixth consecutive year, with a score of 738. Royal Park Hotels performs particularly well in the check-in/check-out, guest rooms, hotel facilities, and cost and fees factors. Following Royal Park Hotels in the segment rankings are Associa Hotels & Resorts (Hotel Associa) (724), which performs particularly well in the food and beverage factor, and Hilton (714).

¥9,000 to Less than ¥15,000 per Night Segment
Richmond Hotels ranks highest in the segment for a seventh consecutive year, with a score of 685. Richmond Hotels performs particularly well in the check-in/check-out and guest rooms factors. Following Richmond Hotels in the segment rankings are Daiwa Roynet Hotel (679), which performs well in the check-in/check-out and guest rooms factors, and Mitsui Garden Hotel (676).

Less than ¥9,000 per Night Segment
Dormy Inn ranks highest in the segment with a score of 673. Dormy Inn performs particularly well in the reservations, guest rooms, breakfast, hotel services, and hotel facilities factors. Super Hotel ranks second in the segment with a score of 672, and performs particularly well in the check-in/check-out and cost and fees factors. Comfort ranks third (650).

The 2012 Japan Hotel Guest Satisfaction Index Study is based on responses from 25,375 guests 18 years and older who stayed in a hotel in Japan during the previous 12 months. The online study, which examines 145 hotel groups and chains nationwide, was fielded in August 2012.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at www.mcgraw-hill.com.

Follow us on Twitter: @JDPower

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

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Understanding the Optimal Frequency and Content of Sales Calls Contributes to Improvement in Satisfaction among Light-Duty Truck Owners in Japan

1970-01-01

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TOKYO: 14 March 2013 — Overall satisfaction is higher among light-duty truck owners who receive sales calls from dealer sales representatives at least once a month, according to the JD Power Asia Pacific 2012 Japan Light-Duty Truck Ownership Satisfaction Study^SM released today.

The study measures overall satisfaction with light-duty truck manufacturers and their authorized dealers among commercial fleet owners, including managers of truck freight companies. Satisfaction is determined by examining four key factors (in order of importance): service (45%), sales (31%), vehicle (13%) and cost (11%). Overall satisfaction scores are calculated based on owner evaluations of 62 attributes.

Following rebuilding demand after the Great East Japan Earthquake, as well as replacement demand following implementation of the Post New Long-Term Regulations of diesel emissions, industry-wide unit sales of light-duty trucks (small four-wheel trucks) from January to October 2012 exceeded the prior-year level. However, while year-over-year unit sales have increased, overall owner satisfaction averages 631 (on a 1,000-point scale) in the 2012 study, which is unchanged from 2011.

The study finds a direct correlation between the frequency of sales calls from sales representatives of truck manufacturers’ authorized dealers and increased owner satisfaction. Satisfaction increases among owners who receive sales calls at least once a month exceeds the industry average by 25 points. Furthermore, scores are highest among owners who receive sales calls nearly every week, which is 72 points higher than the industry average. However, overall satisfaction among owners who receive fewer calls–one every two to three months or less than once a month–is lower than industry average.

Satisfaction is higher among owners who receive calls for the purpose of providing useful information, such as after-sales follow-up; providing information on other products and services or industry trends; or proposing operational improvements.
 
“Ultimately, understanding the individual needs of light-duty truck owners is critical to maintaining high levels of satisfaction, but a quantitative increase in sales activity in the form of appropriate sales call frequency and qualitative improvement in the purpose of calls may play a key role in increasing satisfaction,” said Taku Kimoto, executive director of the automobile division at JD Power Asia Pacific, Tokyo.

The study also finds that the installation of drive recorders, which captures video and driving data before and after driving incidents such as sudden acceleration or deceleration, has continued to increase during the past five years. For the industry overall, 28 percent of fleet owners indicate having installed drive recorders. Among the fleet owners included in the study, more than one-half of the operators of large fleets (31 or more vehicles) have already installed or are considering installing drive recorders. The Japan Trucking Association operates a subsidy program and in 2012 began subsidizing a new type of drive recorder that utilizes a smartphone, which is likely to further spur installation.

“Fleet operators who have already installed drive recorders tend to indicate higher frequency of calls from sales representatives than operators who have not installed recorders, and a higher proportion of these operators report receiving information concerning industry trends,” said Kimoto. “Because these devices may have a positive impact on the areas of cost, environmental performance and safety, such as improvements in operation control and safety measures, owners may benefit from continuous efforts to promote installation during routine sales activities.”

The study finds that the percentages of owners who say they “definitely will” purchase a vehicle from the same manufacturer again and “definitely will” use after-sales services from the same dealer again increase in direct proportion to overall owner satisfaction. Notably, among owners who are highly satisfied (satisfaction scores above 800), approximately one-half say they “definitely will” purchase and “definitely will” use the same dealer again.

Among the five brands included in the study, Hino and Toyota rank highest, in a tie, with overall satisfaction scores of 645 each. Hino performs particularly well in the sales, vehicle and cost factors, while Toyota performs particularly well in the service factor. Following in the rankings are UD Trucks (633), Isuzu (629) and Mitsubishi Fuso (625).

Now in its sixth year, the 2012 Japan Light-Duty Truck Ownership Satisfaction Study is based on 3,374 responses from 2,190 fleet operators, each of which evaluated up to two manufacturers. The study was fielded between November and December 2012.

The Japan Light-Duty Truck Ownership Satisfaction Study is one of 10 benchmark studies conducted by JD Power Asia Pacific in Japan. Other studies conducted by JD Power Asia Pacific include:

• The Japan Winter Tire Customer Satisfaction Index Study
• The Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process
• The Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership
• The Japan Customer Satisfaction Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities
• The Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership
• The Japan Original Equipment Tire Satisfaction Index Study, which measures customer satisfaction with original equipment tires equipped on new vehicles
• The Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with original equipment and aftermarket navigation systems
• The Japan Replacement Tire Satisfaction Study
• The Japan Heavy-Duty Truck Ownership Satisfaction Study, which measures customer satisfaction with heavy-duty truck manufacturers and their respective local authorized truck dealers

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at www.mcgraw-hill.com.

Follow us on Twitter: @JDPower

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

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With Winter Tires Being Driven on Non-Winter Roads More Than One-Half the Time, Tire Performance for Use on Both Regular and Winter Roads Is Crucial

2013-05-31

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Tokyo: 31 May 2013 — While customer satisfaction with winter tires has decreased from 2012, the level of satisfaction with performance of winter tires on icy/snow-covered roads is higher than or equal to the level of satisfaction with performance on dry/wet roads, according to the JD Power Asia Pacific 2013 Japan Winter Tire Customer Satisfaction Index Study^SM released today. 

The study, now in its 10th year, measures customer satisfaction with winter tires by examining six key factors (in order of importance): performance in icy conditions (25%); performance in snow-covered conditions (25%); durability/reliability (15%); ride/quietness on dry or wet roads (13%); appearance (12%); and handling/traction on dry or wet roads (10%). Overall satisfaction with winter tires averages 581 index points (on a 1,000-point scale) in 2013, down from 588 in 2012.

The study finds that, on average, winter tires are driven on regular (dry/wet) roads 66 percent of the time, and 38 percent in heavy snow fall areas^[1].  Overall, customer satisfaction with the performance of winter tires on winter roads is higher than or nearly equal to satisfaction with performance on regular roads. 

“The majority of winter tire use isn’t being done in extreme road conditions, so improving basic performance of winter tires on regular roads is a key to increasing customer satisfaction and differentiating manufacturers from their competitors in the winter tire market,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific, Tokyo.

The study also breaks down satisfaction with performance of winter tires based on the number of seasons used. The study finds that as customers perceive aging and deterioration of their winter tires over the number of seasons the tires are used, particularly when used on winter roads versus regular roads, the influence these conditions have on overall customer satisfaction increases.  For example, while wet roads have a 14 percent influence on customer satisfaction during both the second and third seasons used, icy roads have a 24 percent influence the second season, and 28 percent influence on the third season. 

The study also finds a high correlation between customer satisfaction and brand loyalty. Among customers who are less satisfied (index scores that are in the bottom 25%) with their winter tires, 38 percent indicate they would purchase the same brand for their replacement tires for next summer. The percentage rises to 68 percent among customers who are highly satisfied (index scores among the top 25%). 

Furthermore, customers who purchased their winter tires from a tire shop or automobile dealership have a higher rate of purchase intent of the same brand from the same shop or dealer, which presents opportunities for these shops or dealers to retain their existing customers. In particular, customers who purchased from automotive dealers tend to purchase their tires based on dealer staff recommendations without first comparing them to other brands.

“Customers rely on the information they get from their dealers, so from a tire manufacturer’s standpoint, developing relationships with dealerships to help promote their products represents a good opportunity to help develop loyal customers,” said Kimoto.

Among the 10 brands ranked in the study, Michelin ranks highest in overall customer satisfaction for a 10th consecutive year, with a score of 644 points. Michelin has continued to lead the industry since the study was launched in 2004. Michelin performs particularly well across all factors. Basic tire performance, such as handling/traction on dry/wet roads, continues to be an area of particular strength for Michelin, while the manufacturer posts higher scores in performance on snow-covered roads, compared with 2012.

The 2013 Japan Winter Tire Customer Satisfaction Index Study is based on responses from 7,464 vehicle owners who purchased new winter tires for their personal passenger vehicle (including mini-cars) between May 2010 and February 2013 and who are still using these tires. The online survey was fielded in February 2013.

The Japan Winter Tire Customer Satisfaction Index Study is one of 10 benchmark studies conducted by JD Power Asia Pacific in Japan. Other studies conducted by JD Power Asia Pacific include:

• The Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new- vehicle sales process

• The Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership

• The Japan Customer Service Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities

• The Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership

• The Japan Original Equipment Tire Satisfaction Index Study, which measures customer satisfaction with original equipment tires equipped on new vehicles

• The Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with original equipment and aftermarket navigation systems

• The Japan Replacement Tire Satisfaction Study, which measures customer satisfaction with replacement tires (excluding winter tires).

• The Japan Light-Duty Truck Ownership Satisfaction Study, which measures customer satisfaction with light-duty truck manufacturers and their respective local authorized truck dealers

• The Japan Heavy-Duty Truck Ownership Satisfaction Study, which measures customer satisfaction with heavy-duty truck manufacturers and their respective local authorized truck dealers

^[1] Snow fall areas include Hokkaido, Aomori, Iwate, Akita, Yamagata, Niigata, Toyama, Ishikawa, Fukui and Tottori.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power & Associates

Headquartered in Westlake Village, Calif., JD Power & Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power & Associates is a business unit of McGraw-Hill Financial.

About McGraw Hill Financial

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

Follow us on Twitter: @JDPower

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

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Increasing Satisfaction with Auto Insurance Company Call Centers Increases Renewal Intention

2013-07-24

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TOKYO: 24 July 2013 — Customer satisfaction with insurance company call centers greatly influences insurance policy renewal intentions, according to the JD Power Asia Pacific 2013 Japan Auto Insurance Claims Satisfaction Study,^SM released today.

The study examines satisfaction with the claims response of auto insurance (voluntary insurance) companies among customers who have submitted an accident claim to their insurer within the past two years. Customer satisfaction is determined by examining six factors (in order of importance): settlement; first notice of loss; service interaction (which measures interaction with the service representative from the time of the accident report to settlement); appraisal; service interaction; and rental car experience. Overall satisfaction scores are based on a 1,000-point scale. 

The study segments insurance companies based on their primary selling methods: agency-type insurers and direct-type insurers. Agency-type insurers primarily sell policies and interact with customers through insurance agencies, such as specialized agencies or automobile dealerships. Direct-type insurance companies sell policies and interact with customers directly, principally via the Internet or phone.

Overall, 60 percent of customers use a call center as their point of contact for reporting accidents. By insurance type, 93 percent of customers of direct insurers use a call center, while 45 percent of customers of agency insurers use a call center and 44 percent use the insurance agency through which they purchased their policy. Call centers play an important role for insurance companies as the initial point of contact for customers reporting an accident.

The study finds a large satisfaction gap of 72 points between customers who contact a call center (694) and customers who contact their agency directly (766). The gap is attributable not only to customer familiarity with their insurance agency, but also to differences in service quality between call centers and agencies. For instance, while 19 percent of customers who phoned a call center indicate that their call was transferred, this declines to only 7 percent of those who phoned their agency. Satisfaction is nearly 100 points higher when customers are contacted by a representative less than an hour after the first notice of loss than when customers wait an hour or longer to be contacted. Only 29 percent of customers who contacted a call center to report an accident indicate that they were contacted within one hour, compared with 48 percent of those who contacted their agency.

“Satisfaction with call centers has a significant impact on policy renewal intentions,” said Chie Numanami, manager, JD Power Asia Pacific. “Emphasis on prompt service by call centers is an important element in retaining customers among direct-type insurers, which mainly use call centers, and for agency-type insurers, which receive accident reports through agencies and call centers.”

AIU ranks highest in overall satisfaction with the claims response for a fifth consecutive year, with a score of 776–an improvement of 21 points from 2012. AIU performs particularly well across all six factors and achieves particularly high scores for the service interaction and settlement factors. E.design Insurance follows in the rankings, performing well in the settlement factor. Nissin Fire and Marine Insurance ranks third and performs well in the first notice of loss and appraisal factors.

The 2013 Japan Auto Insurance Claims Satisfaction Study is based on responses of 7,055 auto insurance customers who submitted an accident claim to their insurance company within the past two years (including those who switched insurance companies after their accident and now have a policy with another insurer). The online study was fielded in May 2013.

The 2013 Japan Auto Insurance Claims Satisfaction Study follows the release of two related studies that examine satisfaction among auto insurance customers in Japan: 

The 2013 Japan Auto Insurance Shopping Satisfaction Study measures satisfaction among customers who recently purchased auto insurance, including new policyholders; customers who purchased their most recent auto insurance (voluntary insurance) for the first time; and those who switched from other insurance companies.

 The 2013 Japan Auto Insurance Satisfaction Study measures the overall satisfaction of customers with the insurance company during their auto insurance policy term, including policy offerings and insurance company and agency response at the time of various procedures and inquiries.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

About McGraw Hill Financial

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

Follow us on Twitter: @JDPower

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

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