Category: Japan

Japan Car Buyers Cite More Problems as Manufacturers Offer More Technology, JD Power Finds

2017-08-30

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TOKYO: 31 Aug. 2017 — Overall initial vehicle quality remains at the same level as in 2016, while problems related to safety features and new technologies are more frequent in 2017, according to the JD Power 2017 Japan Initial Quality Study^SM (IQS), released today.

JD Power initial quality studies are conducted globally and serve as the industry benchmark for new-vehicle quality. In Japan, overall initial quality averages 76 problems per 100 vehicles (PP100) in 2017, compared with 75 PP100 in 2016 and 80 PP100 in 2015.

The study, now in its seventh year, measures new-vehicle quality in the first two to nine months of ownership. Vehicle quality is evaluated by owners across 233 problem areas in eight categories: vehicle exterior; driving experience; features/controls/displays; audio/communication/entertainment/ navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; and engine/transmission (eng/trans). All problems are summarized as the number of reported problems per 100 vehicles (PP100), with lower scores reflecting a higher quality performance.

While eng/trans problems have decreased to 8.2 PP100 (a year-over-year decrease of 1.5 PP100) and ACEN problems have decreased to 10.0 PP100 (a year-over-year decrease of 1.3 PP100), problems are more frequently reported in the other six categories. Vehicle interior problems (16.5 PP100, a year-over-year increase of 0.9 PP100) are the most frequently reported problems among the eight categories, with features/controls/displays (11.7 PP100, a year-over-year increase of 1.4PP100) accounting for the second-most frequently reported problems.

The number of reported problems has increased in all vehicle segments from 2016, except the mini-car and large segments. Particularly in the minivan segment, overall initial quality averages 76 PP100, an increase of 7 PP100 from 2016. In this segment, the most often reported problems are related to vehicle interior (17.0 PP100, an increase of 2.7 PP100), followed by features/controls/displays (12.8 PP100, an increase of 3.8 PP100). In the features/controls/displays category, problems related to safety features and new technologies have been more frequently reported since 2016, including cruise control system—controls/icons difficult to understand/use or in a poor location (0.8 PP100, an increase of 0.4 PP100) and collision avoidance/alert system—controls/indicators difficult to understand/use or in a poor location (0.7 PP100, an increase of 0.5 PP100). Similarly, in the compact and midsize segments, problems related to safety features and new technologies have been more frequently reported since 2016.

In addition, more new vehicles have been equipped with safety features and new technologies since 2016, particularly lane departure warning systems (up 15.5%); collision avoidance/alert systems (up 11.4%); and park assist/backup warning (up 9.3%). More than half of owners have these features in their vehicle, suggesting that owners have more opportunities not only to use them but also to report problems with them.

“While more safety features and new technologies are appearing in vehicles, consumers are paying more attention to such features and technologies,” said Atsushi Kawahashi, senior director of the automotive division at JD Power. “Consumers find these technologies to be very influential in deciding on the car they will purchase. But once owners purchase a vehicle equipped with these new technologies and use them on a daily basis, they are likely to have difficulty in usability and user friendliness.

“Auto manufacturers should be aware that not only introducing new technologies but also improving usability and user friendliness will result in users’ affinity for and trust in new technologies and features,” Kawahashi said.

Quality by Segment

Mini-car segment
Overall initial quality averages 70 PP100, a 3 PP100 decrease from 2016. The number of problems decreases in the eng/trans category (-3.1 PP100), while owners report more problems in HVAC (+1.0 PP100) and features/controls/displays (+0.4 PP100).

Compact segment
Overall initial quality averages 76 PP100, a 2 PP100 increase from 2016, driven by the increased number of reported problems in vehicle exterior (+2.2 PP100) and seats (+1.0 PP100).

Midsize segment
Overall initial quality averages 84 PP100, a 4 PP100 increase from 2016. While ACEN (-3.4 PP10) improves year over year, the increased number of reported problems in features/controls/displays (+3.2 PP100); vehicle interior (+2.4 PP100); seats (+2.4 PP100); and driving experience (+1.4 PP100) have resulted in the deterioration in overall initial quality in this segment.

Minivan segment
Overall initial quality averages 76 PP100, a 7 PP100 increase from 2016. Problems in six categories increase year over year, including: features/controls/displays (+3.8 PP100); vehicle interior (+2.7 PP100); driving experience (+1.4 PP100); eng/trans (+1.3 PP100); HVAC (+0.4 PP100); and vehicle exterior (+0.1 PP100).

Large segment[1]
Overall initial quality averages 76 PP100, an improvement of 5 PP100 from 2016. While the number of reported problems increases in vehicle interior (+1.2 PP100) and driving experience (+0.9 PP100), problems in six categories, including features/controls/displays (-2.8 PP100), improve year over year.

Highest-Ranked Brands
Daihatsu ranks highest among brands, averaging 67 PP100. Daihatsu is followed by Honda (71 PP100) and Toyota (73 PP100).

Segment-Leading Models

• Mini-car segment: Daihatsu Move Canbus and Honda N-WGN rank highest in a tie, followed by Daihatsu Cast and Suzuki Spacia.
• Compact segment: Toyota Passo ranks highest, followed by Toyota Roomy and Toyota Vitz.
• Midsize segment: Subaru XV ranks highest, followed by Subaru Impreza and Toyota Corolla.
• Minivan segment: Honda Freed ranks highest, followed by Toyota Sienta and Toyota Voxy.

The 2017 Japan Initial Quality Study is based on responses from 22,924 purchasers of new vehicles in the first two to nine months of ownership. The study, which includes 16 automotive brands and 108 models, ranks models with a sample size of 100 or more usable questionnaire returns. The study was fielded in May-June 2017.

Media Relations Contacts
Shizue Hidaka; JD Power; Tokyo; 81-3-4550-8060; [email protected]
Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

About JD Power in the Asia Pacific Region
JD Power has offices in 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. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at japan.jdpower.com.

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

 

More New-Vehicle Shoppers Are Considering SUVs, JD Power Finds

2017-09-13

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TOKYO: 13 Sept. 2017 — More new-vehicle shoppers are considering purchasing SUVs than ever before, according to the JD Power 2017 Japan New-Vehicle Intender Study^SM (NVIS), released today.

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

“In 2017, most new-vehicle shoppers are looking at three major points when it comes to vehicle selection: safety performance, price and exterior design,” said Koichi Urayama, Director of the Automotive Division at JD Power, Tokyo. “Given the increase in importance of safety performance,  it is more important than ever to ensure consumers understand how the performance technologies work and how to use them. Constant communication by manufacturers or dealers will be necessary throughout shoppers’ consideration-to-ownership life cycle—that is, from building awareness of their brands and models for shoppers’ consideration to an actual purchase and finally to the support after purchase.”

Following are some key findings of the study:

• In the 2017 study, 55% of new-vehicle shoppers consider an average of 2.4 vehicle brands for their next vehicle purchase. By gender, men consider an average of 2.5 vehicle brands, while women consider 2.2 brands.

• New-vehicle shoppers who cite SUV as a body type they want to buy increases by 4 percentage points to 31% in 2017 from 27% in 2016. By family structure, 34% of single shoppers cite SUV, which is the highest percentage, while 31% of two-generation households cite SUV, a growth of 6 percentage points from 25% in 2016 being the largest increase.

• For 10 of the 28 brands included in the study, more than 50% of new-vehicle shoppers say they would consider purchasing another available model if it is similar in appearance and performance to the vehicle they had initially intended to purchase.

• More than 4 in 5 (85%) new-vehicle shoppers view the manufacturer or dealer’s website on personal computers, while 35% use smartphones. Additionally, shoppers younger than 60 years old use smartphones more frequently than in 2016.

The 2017 Japan New-Vehicle Intender Study is based on 10,000 responses. The online survey was conducted from late June through mid-July 2017.

Media Relations Contacts
Kumi Kitami; JD Power; Tokyo; 81-3-4550-8060; [email protected]
Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

About JD Power in the Asia Pacific Region
JD Power has offices  in 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. JD Power is a portfolio company of XIO Group,     a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at japan.jdpower.com.

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

 

Regular Sales Calls and Customer Treatment during Service Are Keys to Building Long-Term Relationship with Customers

2017-01-20

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TOKYO: 25 Jan. 2017 — Regular sales calls and positive customer treatment during after-sales service are necessary in order to build a long-term relationship with customers, according to the JD Power 2017 Japan Heavy-Duty Truck Ownership Satisfaction Study^SM and the JD Power 2017 Japan Light-Duty Truck Ownership Satisfaction Study,^SM both released today.

The annual studies measure overall satisfaction with heavy- and light-duty truck manufacturers and their respective authorized truck dealers among commercial fleet owners, including managers of truck freight companies. Satisfaction is determined by examining owners’ evaluations of 10 attributes grouped into four factors (listed in order of importance): vehicle (44%); service (23%); sales (21%); and cost (12%). Satisfaction is calculated on a 1,000-point scale.

Overall ownership satisfaction with heavy-duty trucks averages 560 points, down slightly from 562 in 2016, and 549 points for light-duty trucks, down from 552 in 2016. The most pronounced year-over-year change in heavy-duty truck ownership satisfaction is in the service factor, which decreases by 7 points, while the largest change in light-duty truck ownership satisfaction is in the vehicle factor, which drops by 5 points.

The study finds that the frequency of contacts with customers correlates to owner satisfaction and loyalty. However, only 55% of owners were contacted at least once a month, compared with 58% in 2016. Overall satisfaction among owners who receive sales calls or are contacted by a salesperson averages 573, compared with 438 among those who are not contacted.

“When reviewing various activities in order to streamline sales activities, the contact process is important in building relationships with customers,” said Yuji Sasaki, director of the automotive division at JD Power. “Performing activities to maintain minimum sales contacts can retain customers, and if this is not possible, positive treatment when customers visit the dealer for after-sales service can be effective in retention.”

Other key findings of the study:

• Most Common Problems: Among heavy-duty truck owners, the most commonly experienced problem is with electric components (29%), followed by engine (25%), power transmission device (25%) and exhaust emission control device (25%). Among owners who experience exhaust emission control device problems, 50% of heavy-duty truck owners and 56% of light-duty truck owners indicate they have experienced the problems two or more times. “Experiencing a problem negatively affects satisfaction, and recurrent problems lead to a further decline,” said Sasaki. “Improving customer satisfaction, and thus loyalty, requires improvement in vehicle quality, including the prevention of problems and their recurrence, as well as reinforcing service approaches when problems occur.”
• Problems Cause Satisfaction to Plummet: Overall satisfaction decreases significantly when owners experience problems with their trucks. Among heavy-duty truck owners who experience one or more problems with their trucks, overall satisfaction averages 542, compared with 619 among those who experience no problems. Among light-duty truck owners who experience a problem with their truck, overall satisfaction averages 522, compared with 592 among those who experience no problems.
• Truck Owner Satisfaction Highest Immediately After Purchase: The study finds that owner satisfaction is highest right after the purchase and decreases over time. However, the drop in satisfaction can be mitigated when the salesperson stays in contact with the owner or when the owner visits the dealership for service. Overall satisfaction remains at 568 among customers after three or more years of ownership if they have been contacted by their salesperson at least once a month, compared with the industry average of 560.

Study Rankings

Hino and Izusu tie for the highest ranking in heavy-duty truck ownership satisfaction with a score of 571. It is the eighth consecutive year that Hino ranks at the top of this category. Isuzu improves by 18 points overall from 2016, with a 27-point increase in the vehicle factor.

Hino ranks highest in light-duty truck ownership satisfaction for the third consecutive year, with a score of 574. Hino performs particularly well in the cost, vehicle and sales factors.

The 2017 Japan Heavy-Duty Truck Ownership Satisfaction Study is based on 3,529 responses from 2,292 truck owners, and the 2017 Japan Light-Duty Truck Ownership Satisfaction Study is based on 2,818 responses from 1,954 truck owners. Fleet owners in each segment evaluated up to two manufacturers. The mail survey was conducted from September through November 2016.

Media Relations Contacts

Shizue Hidaka; JD Power; Tokyo, Japan; +81-3-4550-8060; [email protected]

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

About JD Power in the Asia Pacific Region

JD Power has offices in 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

 

Vehicle Dependability in Japan Improves, JD Power Study Finds

2016-10-17

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TOKYO: 20 Oct. 2016 — Vehicle dependability in Japan improves, as owners of 3- to 5-year-old cars report fewer problems with their vehicle than a year ago, according to the JD Power 2016 Japan Vehicle Dependability Study^SM (VDS), released today.

The study, now in its second year, measures problems experienced during the past 12 months by original owners of vehicles after 37-54 months of ownership. The study examines 177 problem symptoms across eight categories: vehicle exterior; driving experience; features/ controls/ displays (FCD); audio/ communication/ entertainment/ navigation (ACEN); heating, ventilation and air conditioning (HVAC); seats; vehicle interior; and engine/ transmission. Overall dependability is determined by the number of problems reported per 100 vehicles (PP100), with a lower score reflecting higher quality.

Owners report an average of 64 PP100 in 2016, down from 72 PP100 in 2015. Dependability improves across all categories. While the vehicle exterior (13.2 PP100) and vehicle interior (10.9 PP100) categories have the greatest year-over-year decline in problems, these two remain the most problematic areas. The third-most frequently reported problems are in engine/ transmission (10.1 PP100). Together, these three categories account for 53% of all problems reported in the study.

The most frequently reported problem symptoms are unpleasant odors from the air vents, noisy brakes and windows fogging up.

“It is encouraging to see owners report fewer problems overall, as automakers continue to focus on improving the overall quality and dependability of their vehicles,” said Atsushi Kawahashi, senior director of the Japan automotive practice at JD Power. 

However, dependability is not improving in all areas of the vehicle. Owners are reporting more problems related to the engine idling, excessive fan/ blower noise and Bluetooth pairing/ connectivity in 2016, compared with 2015. The study finds that more vehicles are equipped with the engine idle stop feature (+19%) and the Bluetooth feature (+4%) this year, compared with 2015.

“The increase in technology-related problems is likely due to the increase in the penetration of these features,” said Kawahashi. “Still, it is critical that automakers identify and correct these types of problems now to improve quality, increase customer satisfaction and build consumer trust in the technologies, which will continue to increase in vehicles in Japan. We are already seeing a dramatic increase in the number of vehicles equipped with engine idling and Bluetooth technologies.” 

The study finds that vehicle dependability affects customer loyalty and advocacy. Among owners who do not experience any problems with their vehicle, 71% say they “definitely would” or “probably would” repurchase the same brand and 73% say they “definitely would” or “probably would” recommend the model to family and friends. Among owners who experience three or more problems with their vehicle, only 56% intend to repurchase the brand and 61% expect to recommend their model to others.

Highest-Ranked Nameplates and Models

Lexus ranks highest among all nameplates for a second consecutive year, with a score of 54 PP100. Lexus is followed by Honda (56 PP100), Toyota (58 PP100) and Suzuki (59 PP100). 

Toyota has three models that rank highest in their respective segments: Corolla, Ractis and Sienta. The Honda Fit Shuttle ranks highest in its segment, as does the Suzuki Lapin.

Following are other key findings of the study:

• Dependability Improves across All Segments: Vehicle dependability improves across all segments. The minivan segment shows the greatest decrease in problems, improving by 13 PP100 to 70 PP100 year over year. 
• Small Cars Equal Fewer Problems: The compact segment averages the fewest problems at 60 PP100, which is a 9 PP100 improvement from 2015. The large segment  has the highest number of problems at 72 PP100, which is a 5 PP100 improvement.

The 2016 Japan Vehicle Dependability Study is based on responses from 18,777 purchasers of new vehicles in the first 37 to 54 months of ownership. The study, which includes 17 automotive brands and 120 models, ranks models with a sample size of 100 or more usable questionnaire returns. The study was fielded in July 2016.

Media Relations Contacts

Shizue Hidaka; JD Power; Tokyo; 81-3-4550-8060; [email protected]

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

About JD Power in the Asia Pacific Region 

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 japan.jdpower.com.

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

 

Improving Usability Is Critical for Aftermarket Navigation Systems, JD Power Study Finds

2016-10-17

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TOKYO: 26 Oct. 2016 — Improving aftermarket navigation system usability is critical to customer satisfaction and owner loyalty, according to the JD Power 2016 Japan Navigation Systems Customer Satisfaction Index Study^SM―Aftermarket, released today.

Now in its 10th year, the study measures customer satisfaction with aftermarket in-dash vehicle navigation systems when used as in-vehicle information systems, including music and video player functions and telematics services in addition to search and guidance functions. Four factors are examined (listed in order of importance): navigation function (42%); infotainment equipment (21%); operation/ user interface (20%); and screen (17%). Satisfaction is calculated on a 1,000-point scale.

Overall satisfaction with aftermarket in-dash vehicle navigation systems increases by 10 points to 543 in 2016. Satisfaction improves in all factors, most notably in navigation function and operation/ user interface, each up 11 points from 2015. 

Satisfaction with aftermarket navigation systems outpaces that for factory- and dealer-installed navigation systems (519), although repurchase intention among owners of aftermarket systems is much lower. Among owners of aftermarket systems, only 49% say they will repurchase the same type of system, while 65% of owners of factory- and dealer-installed systems say the same. Aftermarket system users who show higher satisfaction indicate lower loyalty, compared with factory- and dealer-installed system users.

“Manufacturers differentiate aftermarket navigation systems from factory- and dealer-installed navigation systems by providing higher functionality and performance, which results in increased customer satisfaction,” said Atsushi Kawahashi, senior director of the Japan automotive practice at JD Power. “However, some customers report problems with their aftermarket systems, suggesting that multifunctionality and complexity may cause difficulties for entry-level users. To attract new customers and retain existing customers, it is important for manufacturers to not only evolve levels of functionality, but also improve usability.”

Following are additional key findings of the study: 

• Problems Have Owners Questioning Loyalty: Aftermarket navigation system owners who previously had a factory- and dealer-installed system—known as switchers—show lower levels of likelihood of repurchasing another aftermarket system than owners who previously owned an aftermarket system. Only 39% of switchers indicate they will repurchase another aftermarket system, compared with 67% of repeat aftermarket owners. One of the key reasons for lower intended loyalty among switchers is problems, as 26% say they have experienced problems with their current navigation system, while only 14% of repeat users have experienced any problems. The problems switchers indicate experiencing most frequently are related to usability, including search/ set destination: controls difficult to understand/ use (28%) and change map scale: screen difficult to see/ understand (29%). Only 3% and 6% of repeat users, respectively, experience the same problems. 
• Satisfaction Equals Intended Loyalty: The study finds a correlation between overall satisfaction and the likelihood of customers repurchasing the same brand. Among customers who are highly satisfied (overall satisfaction scores of 800 and above), 98% say they “definitely would” or “probably would” repurchase the same brand. Among customers with low satisfaction (scores below 500), only 55% say the same.  

Study Ranking

The Alpine Big X Series ranks highest for a fifth consecutive year, with a score of 595, a 6-point improvement from 2015. The Alpine Big X Series performs particularly well in the screen, operation/ user interface and infotainment equipment factors.

The Pioneer Cyber Navi Series ranks second with a score of 566, an 11-point improvement from 2015. The Pioneer Cyber Navi Series performs particularly well in the navigation function factor.

The 2016 Japan Navigation Systems Customer Satisfaction Index Study―Aftermarket is based on responses from 2,296 vehicle owners who purchased an aftermarket navigation system from April 2014 through March 2016. The study was fielded in late July 2016. 

Media Relations Contacts

Shizue Hidaka; JD Power; Tokyo; 81-3-4550-8060; [email protected]

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

About JD Power in the Asia Pacific Region 

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 japan.jdpower.com.

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

 

Navigation System Satisfaction Stalls, JD Power Study finds

2016-10-03

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TOKYO: 7 Oct. 2016 — Customer satisfaction with factory-installed in-vehicle navigation systems in Japan has become stagnant, due in large part to owners not being aware of, or using, many of their system’s capabilities, according to the JD Power 2016 Japan Navigation Systems Customer Satisfaction Index Study^SM—OEM, released today. 

Overall satisfaction averages 519 on a 1,000-point scale in 2016, down slightly from 521 in 2015. Since the study was redesigned in 2013, overall satisfaction has stabilized around 520 and not shown any marked improvement. 

One of the primary reasons for this sluggish condition is that owners do not use the full potential of their navigation system, although the functions have improved every year. For example, the study finds that only 27% of owners overall use the telematics service in their vehicle, although 49% of owners have a factory-installed navigation system that supports this service. 

For example, 49% of owners have navigation systems in their vehicle that support a telematics service, yet among them, 65% of them indicate that they have never used the service. Among the top reasons owners say they don’t use the service are that they don’t know what the telematics service is; they don’t know how to use it; or they don’t understand the fees associated with the service. Only 10% of owners with telematics services say don’t use them because they don’t need them.

Lack of use of telematics services negatively affects customer satisfaction. Overall satisfaction among owners who use the telematics services with their navigation system is 572 points, compared with 511 among those who do not. 

“Automakers are making a major investment to add technologies to vehicles that help improve the driving experience, yet often those technologies are not being utilized to their full capacity,” said Atsushi Kawahashi, senior director of the automotive division at JD Power, Tokyo. “Because the first few weeks of ownership are so critical, dealerships play the most important role in helping owners get off to a good start with their in-vehicle navigation system. In addition, automakers need to design the technology to be intuitive for consumers, and then explain the technology to dealership staff and train them on how to demonstrate it to owners.”

Furthermore, the study finds the more of their navigation system’s services owners use, the higher their satisfaction. Overall satisfaction among owners who use 10 telematics services or more is 661, while satisfaction among those who use four to nine telematics services is 597. When owners use only one to three of their system’s telematics services, satisfaction drops to 563.

The study, now in its ninth year, measures satisfaction with factory- and dealer-installed navigation systems when used as in-vehicle information systems including music and video player functions and telematics services, in addition to search and guidance functions. Four factors are examined (listed in order of importance): navigation function (39%); infotainment equipment (21%); operation/ user interface (20%); and screen (19%). Satisfaction is calculated on a 1,000-point scale.

Other key findings from the study include:

Luxury Segment Satisfaction Increases, but Drops in Mass Market Segment: In the luxury brand segment, satisfaction increases by 3 points to 552 in 2016. Satisfaction increases by 7 points in the navigation function factor; 4 points in the infotainment equipment factor; and 3 points in the screen factor, while declining by 2 points in the operation/ user interface factor. In the mass market brand segment, satisfaction decreases by 3 points to 517. Satisfaction decreases in all four factors, with the largest decline of 4 points in the navigation function factor.

Satisfaction Equals Loyalty: Among highly satisfied customers (overall satisfaction scores of 800 and above), 95% say they “definitely would” or “probably would” repurchase the same brand of vehicle. In contrast, among customers who are highly dissatisfied (scores of 500 or lower), only 45% say they “definitely would” or “probably would” repurchase the same. 

2016 Ranking Highlights

In the luxury brand segment, Lexus ranks highest for a fifth consecutive year, with a score of 642. 

 In the mass market brand segment, Toyota ranks highest for a second consecutive year, with a score of 532. Toyota is followed by Honda (522) and Subaru (518).

The 2016 Japan Navigation Systems Customer Satisfaction Index Study—OEM is based on responses from 7,278 vehicle owners who purchased a new vehicle equipped with a factory- and dealer-installed navigation system from April 2014 through March 2016. The internet study was fielded in late July 2016.

Media Relations Contacts

Shizue Hidaka; JD Power; Tokyo; 81-3-4550-8060; [email protected]

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

About JD Power in the Asia Pacific Region 

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 japan.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpow

 

New-Vehicle Quality in Japan Continues to Improve; Mini-Car Owners Report More Fuel Efficiency Problems 

2016-08-24

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TOKYO: 25 August 2016 ― Although new-vehicle quality overall continues to improve in Japan, owners of mini-cars are reporting more problems, primarily problems related to fuel efficiency, according to the JD Power 2016 Japan Initial Quality Study^SM (IQS), released today.

The study, now in its sixth year, measures new-vehicle quality in the first two to nine months of ownership. Vehicle quality is evaluated by owners across 233 problem areas in eight categories: vehicle exterior; driving experience; features/ controls/ displays; audio/ communication/ entertainment/ navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; and engine/ transmission. All problems are summarized as the number of reported problems per 100 vehicles (PP100), with lower scores reflecting a higher quality performance.

Overall initial quality improves to 75 PP100 in 2016, compared with 80 PP100 in 2015 and 84 PP100 in 2014. The greatest improvement in the industry is in the vehicle interior category, with the number of reported problems dropping to 15.6 PP100 in 2016 from 17.3 PP100 in 2015. Vehicle interior problems decrease in all vehicle segments.

“The improvement in quality, specifically in vehicle interior, shows that auto manufacturers are listening to their customers and are focused on continuous improvement,” said Atsushi Kawahashi, senior director of the automotive division at JD Power.

All segments except the mini-car segment improve in initial quality from 2015. The minivan segment has the greatest year-over-year improvement, to 69 PP100 from 81 PP100 in 2015, while the mini-car segment remains stable at 73 PP100. Although reported gas mileage is the same in 2016 as in 2015, the mini-car segment has a 1.4 PP100 increase in engine/ transmission problems, offsetting slight improvements in other categories.

Fuel economy remains the most influential reason owners selected the make and model they purchased, cited by 37% of owners in 2016, down from 42% in 2015. Safety is increasing in importance, as noted by 23% of owners in 2016, compared with 21% a year ago. 

“This indicates a change in customer sentiment that vehicle manufacturers need to closely monitor,” said Kawahashi. “Owners are becoming increasingly interested in safety-related features, such as driver assistance and autonomous driving technologies.”

Quality by Segment

Mini-car segment

Overall initial quality averages 73 PP100, unchanged from 2015. The number of problems decreases in the driving experience (-0.8 PP100) and vehicle interior (-0.7 PP100) categories. However, owners report more problems in the engine/ transmission category (+ 1.4 PP100).

Compact segment

Overall initial quality averages 74 PP100, a 9 PP100 improvement from 2015. Contributing to this improvement are fewer problems in the engine/ transmission (-2.4 PP100); vehicle exterior (-1.9 PP100); features/ controls/ displays (-1.5 PP100); and vehicle interior (-1.0 PP100) categories. 

Midsize segment

Overall initial quality averages 80 PP100, an improvement from 88 PP100 in 2015, driven by fewer problems in the vehicle interior (-2.5 PP100); features/ controls/ displays (-1.8 PP100); vehicle exterior (-1.0 PP100); and driving experience (-1.0 PP100) categories. 

Minivan segment

Overall initial quality averages 69 PP100, a 12 PP100 improvement from 2015. Vehicle interior (-4.8 PP100); features/ controls/ displays (-2.4 PP100); HVAC (-2.1 PP100); engine/ transmission (-1.7 PP100); and ACEN (-1.4 PP100) each improve year over year. 

Large segment¹ 

Overall initial quality averages 81 PP100, an improvement from 82 PP100 in 2015. This improvement is driven by fewer problems in the features/ controls/ displays (-2.4 PP100) and vehicle interior (-2.3 PP100) categories. However, owners report more problems in the vehicle exterior (+2.4 PP100), ACEN (+1.4 PP100) and engine/ transmission (+0.9 PP100) categories. 

2016 Ranking Highlights

Toyota ranks highest among nameplates, averaging 62 PP100. Toyota is followed by Daihatsu (64 PP100), Honda (69 PP100) and Lexus (75 PP100).

Rankings in the four vehicle segments are:

• Mini-car segment: Honda N-BOX ranks highest, followed by Daihatsu Cast and Mira e:s.
• Compact segment: Toyota AQUA ranks highest, followed by Toyota Porte and Toyota Vitz.
• Midsize segment: Toyota Corolla ranks highest, followed by Subaru Forester and Subaru Impreza.
• Minivan segment: Toyota Vellfire ranks highest, followed by Honda Freed and Toyota Sienta. 

The 2016 Japan Initial Quality Study is based on responses from 19,573 purchasers of new vehicles in the first two to nine months of ownership. The study, which includes 16 automotive brands and 134 models, ranks models with a sample size of 100 or more usable questionnaire returns. The study was fielded from early June through late June 2016. JD Power’s initial quality studies are conducted globally and serve as the industry benchmark for new-vehicle quality.

About JD Power in the Asia Pacific Region 

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

^1. No official rankings are published due to an insufficient number of models.

 

Overall Customer Satisfaction with After-Sales Service Improves; Mass Market Brands Closing the Gap with Luxury Brands

2016-08-26

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TOKYO: 2 September 2016 ― Overall customer satisfaction with the after-sales service process in Japan improves for a second consecutive year, with mass market brands gaining ground on luxury brands, according to the JD Power 2016 Japan Customer Service Index (CSI) Study,^SM released today.

Overall service satisfaction increases slightly to 658 points on a 1,000-point scale in 2016 from 654 in 2015 and a 6-point increase since 2014. While the mass market segment follows the overall industry trend with a 4-point increase to 655 points, satisfaction in the luxury segment decreases by 3 points to 723.

“The decreased satisfaction in the luxury segment indicates that some of its long-established strengths are no longer such distinct advantages, especially as satisfaction in the mass market segment continues to improve,” said Koichi Urayama, director of the automotive division at JD Power, Tokyo. “As customers’ expectations continue to rise, brands need to carefully examine their processes and services, as well as the amenities offered to their service customers, in order to differentiate themselves in an increasingly competitive market.”

The study finds that there is a strong correlation between overall service satisfaction and dealer advocacy and loyalty. Among highly satisfied customers (overall satisfaction scores of 800 points or higher), 79% say they “definitely would” or “probably would” recommend their dealer to others. However, advocacy drops substantially to 35% among customers with lower levels of satisfaction (scores below 500). Additionally, 94% of highly satisfied customers say they “definitely would” or “probably would” buy another new vehicle from the same dealership, while intended loyalty drops to 59% among customers with lower satisfaction.

The study, now in its 15th year, measures overall satisfaction with after-sales service among new-vehicle owners after 15 to 50 months of ownership who visit an authorized service center for maintenance or repair work based on five factors (in order of importance): vehicle pick-up (21%); service representative (21%); service quality (21%); facility (19%); and service initiation (18%). 

Other key findings of the study include:

• Focusing on Service Factors: In the mass market segment, satisfaction improves in all five factors: facility (+6 points); service quality (+6); service initiation (+4); vehicle pick-up (+3); and service representative (+2). In the luxury segment, satisfaction remains the same as in 2015 in the vehicle pick-up and service quality factors, while it decreases in facility (-9 points), service representative (-6) and service initiation (-2). 
• Increasing Communication with Customers: Dealers are increasing their promotional activities in order to encourage customers to visit for after-sales service. The study finds that 48% of customers were contacted by their dealer at least once every two to three months after purchasing their vehicle, an increase of 2 percentage points from 2015. Among customers contacted by their dealers, 17% received a reminder of routine maintenance; 22% were asked if everything was satisfactory with their vehicle; 39% were informed about a campaign or event; and 28% received an invitation to a new-model release event. Among customers who receive communications once every two to three months from their dealer, overall satisfaction in 695, compared with 624 among those who are not contacted by their dealer every few months.
• Service Experience Builds Long-Term Loyalty: The service experience during the first four years of ownership affects whether or not customers continue to return to the dealership for post-warranty (paid) maintenance and repairs. The study, which also examines customer satisfaction with after-sales service after 51 to 110 months of ownership, finds that satisfied customers continue to return to their authorized dealer for checkups or shaken inspections, after 36 months of ownership. For example, among highly satisfied customers (satisfaction scores of 800 or higher), 84% return to the dealer for their first annual inspection after 36 months of ownership and 87% continue to return for their annual inspections after 96 months. In contrast, among customers with lower levels of satisfaction (scores below 500), only 74% return to the dealer for their first annual inspection after 36 months of ownership and just 70% continue to return for their annual inspections after 96 months.  

2016 Ranking Highlights

Lexus ranks highest in the luxury segment with a score of 776. Lexus performs particularly well in all factors. Lexus is followed by Mercedes-Benz with a score of 726.

In the mass market segment, MINI ranks highest for a fifth consecutive year, with a score of 693. MINI performs particularly well in all factors. MINI is followed by Volkswagen (676), Nissan (675), and Mazda and Toyota in a tie (662 each).

The 2016 Japan Customer Service Index (CSI) Study measures passenger-vehicle owner satisfaction with after-sales service obtained during the most recent one-year period at an authorized dealership. The study is based on responses from 9,131 domestic and import vehicle owners. The online survey was conducted from late May through mid-June 2016. 

About JD Power in the Asia Pacific Region 

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

 

More Consumers in Japan Are Considering Eco-Cars for Next Vehicle, JD Power Study Finds

2016-09-13

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TOKYO: 14 Sept. 2016 — Shoppers in Japan are giving eco-cars more than a passing glance as they consider their next vehicle, according to the JD Power 2016 Japan New-Vehicle Intender Study^SM (NVIS), released today.

Among consumers who expect to purchase a new or used vehicle within the next year, an increasing percentage say they are considering an eco-car. For example, 53% of shoppers say they are considering a hybrid vehicle, up from 48% in 2015. Additionally, 12% of shoppers are considering an electric vehicle (EV), up from 9%, and 7% are considering a fuel cell vehicle (FCV), up from 5%. The percentage of shoppers considering a gasoline (65%) and diesel (19%) vehicle remains unchanged.

“The three major points for car model selection are the exterior design, price and fuel efficiency,” said Koichi Urayama, director of the automotive division at JD Power, Tokyo. “Recent fuel consumption fraud problems, on the negative side, and product diversification for eco-cars, on the positive side, likely are contributing to growing consumer interest in eco-friendly cars. In addition, manufacturers are also helping with their messaging around their vehicles, which is helping build awareness.”

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

Other key findings of the study include: 

• How Many Brand to Choose? More than half (55%) of consumers consider an average of 2.5 vehicle brands for their next vehicle purchase. Consumers who are most likely to purchase a mass market brand consider an average of 2 brands, while those who are most likely to purchase a luxury brand consider 3 brands.
• More Interest in Safety by Older Generations: Fifteen percent of men older than 60 years and 18% of women older than 50 years say that safety is the most important factor when selecting a new car, while only 7% of men and 10% of women in their 20s and 30s say the same. Furthermore, the same trends are found in the level of interest in new or advanced safety technology. For example, 58% of men and 56% of women older than 60 years are interested in having a collision mitigation system in their next vehicle, but only 33% of men and 37% of women in their 20s are interested in this technology. Similarly, 52% of men and 54% of women older than 60 years have an interest in emergency assist for pedal misapplication, compared with only 32% of men and 37% of women in their 20s. 
• Information Sources on Vehicles Vary: The sources consumers use to learn about the models they are most likely to choose varies between men and women. A brand’s official website is the most often used source among men (14%), followed by news/ information (14%). Women most frequently turn to advertisement/article in newspaper/magazine/TV/radio programs (16%) and car seen on the road/parked (14%).  
• Website Info Viewing Varies by Consumer Age: The study finds that the information consumers view on a manufacturer’s website varies by the consumer’s age. Consumers who are 40 years or older most frequently cite viewing “vehicle price” or “vehicle specifications.” Consumers in their 20s and 30s most frequently cite “after-sales services”; “campaigns/ special events”; “reserve a test drive”; or “search for a dealership location.”

The 2016 Japan New-Vehicle Intender Study is based on 10,000 responses. The online survey was conducted from late June through mid-July 2016.

Media Relations Contacts

Shizue Hidaka; JD Power; Tokyo; 81-3-4550-8060; [email protected]

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

About JD Power in the Asia Pacific Region 

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 japan.jdpower.com.

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

 

Automated Safety Features Boost Vehicle Appeal among Buyers in Japan, JD Power Finds

2016-09-15

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TOKYO: 21 Sept. 2016 — Safety-oriented driver-assist features boost overall vehicle appeal, according to the JD Power 2016 Japan Automotive Performance, Execution and Layout (APEAL) Study,^SM released today.

The study, now in its sixth year, examines how gratifying a new vehicle is to own and drive. Owners evaluate their vehicle across 77 attributes, grouped into 10 categories of vehicle performance: exterior; interior; storage and space; audio/ communication/ entertainment/ navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); driving dynamics (driving performance); engine/ transmission; visibility and safety; and fuel economy. Satisfaction is calculated on a 1,000-point scale.

The overall APEAL score averages 628 points in 2016, the same as in 2015. Among all categories, the largest improvement is in engine/ transmission, increasing by 5 points in 2016, followed by interior, ACEN, seats, HVAC and driving dynamics, each up by 4 points. However, satisfaction with fuel economy has decreased by a significant 12 points to 630.

The study finds that overall APEAL scores are higher among owners of new vehicles that have been equipped with safety-oriented driver-assist features, such as lane departure warning systems, collision avoidance/alert systems and blind spot monitoring/warning systems. The percentage of vehicles equipped with lane departure warning systems increases most dramatically in the midsize and minivan segments. Lane departure warning system penetration in the midsize segment increases to 60% in 2016 from 36% in 2015, while in the minivan segment it grows to 45% from 22%.

“Safety-oriented driver-assist features contribute to higher overall APEAL scores,” said Atsushi Kawahashi, senior director of the automotive division at JD Power, Tokyo. “Consumers are interested in the latest technologies, specifically those that make their vehicle safer to drive.” 

The study finds a correlation between customer satisfaction and brand advocacy. Among owners whose vehicle has above-industry average APEAL scores and who experience one or more problems with their vehicle, 87% say they “definitely would” or “probably would” recommend their brand to others. In contrast, among owners whose vehicle has below-average APEAL scores and who experience no problems with their vehicle, only 67% say they “definitely would” or “probably would” recommend their brand to others.

Segment Key Findings

• Mini-Car segment:

The mini-car segment is the only segment to post a year-over-year decline in overall APEAL, dropping to 591 in 2016 from 603 in 2015. Satisfaction decreases across all categories, with the largest drop of 32 points in fuel economy. Storage and space declines by 16 points, while visibility and safety drops by 10 points.

• Compact segment:

The overall APEAL score remains at 619, the same as in 2015. Satisfaction with fuel economy decreases by 10 points, while satisfaction in the other categories increases or remains the same.

• Midsize segment:

The overall APEAL score increases by 10 points year over year to 668. Satisfaction improves between 10 and 12 points in all categories except exterior, which is up by 5 points.

• Large segment:

Overall APEAL increases by 7 points from 2015 to 716 this year. Satisfaction increases across all categories, with storage and space improving by 12 points and ACEN and HVAC each improving by 10 points.

• Minivan segment:

Overall APEAL increases by 9 points year over year to 633. Satisfaction increases in all categories, with driving dynamics, engine/ transmission, interior, ACEN, seats and HVAC each up by at least 10 points.

2016 APEAL Ranking Highlights:

Lexus ranks highest among nameplates, with an overall APEAL score of 756. Lexus is followed by BMW (714), Volvo (707), Mercedes-Benz (700) and Audi (697).

Top Three Models Per Segment:

• Mini-Car segment: Daihatsu Cast ranks highest, followed by Suzuki Lapin and Honda N-BOX
• Compact segment: Mazda CX-3 ranks highest, followed by Mazda Demio and Honda Fit
• Midsize segment: Mazda CX-5 ranks highest, followed by Toyota Prius, and Subaru Forester and Subaru Levorg in a tie.
• Minivan segment: Toyota Vellfire ranks highest, followed by Toyota Alphard and Toyota Esquire

The 2016 Japan APEAL Study is based on responses from 19,573 purchasers of new vehicles in the first two to nine months of ownership. The study includes 16 automotive brands and 134 models and ranks models with a sample size of 100 or more usable returns. The study was fielded from early June through late June 2016.

Media Relations Contacts

Shizue Hidaka; JD Power; Tokyo; 81-3-4550-8060; [email protected]

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

About JD Power in the Asia Pacific Region 

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 www.asean-oceania.jdpower.com.

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