Category: Japan

Amid Sales Slowdown, Dealerships in Japan Struggle To Satisfy New-Vehicle Shoppers, JD Power Study Finds

2016-08-16

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TOKYO: 24 August 2016 — Slowing new-vehicle sales in Japan are putting pressure on dealerships, which are struggling to meet customer expectations, especially regarding the vehicle price, according to the JD Power 2016 Japan Sales Satisfaction Index (SSI) Study,^SM released today. The result is an overall drop in customer satisfaction with the sales process.

A combination of the national consumption tax and sluggish economy is causing a continued slowdown in new-vehicle sales in Japan, which dropped to 4.2 million units in 2015 from 4.7 million 2014 and are expected to remain flat this year.¹  With slower sales, dealerships are less willing to negotiate on price, according to customers, resulting in a 5-point decline in overall satisfaction to 660 in 2016 (on a 1,000-point scale) from 2015. While satisfaction in the mass market segment drops 5 points to 658 in 2016, the decline is more pronounced in the luxury segment, which slips by 12 points to 696.

“With new-vehicle sales tapering off, it’s critical for auto dealers to focus on each customer who visits the showroom in order to satisfy them and help them find the vehicle that meets their needs,” said Koichi Urayama, director of the automotive division at JD Power. “From the customer’s perspective, the dealers are not doing that, specifically when it comes to negotiating the price of the vehicle.”

The study, now in its 15th year, measures customer satisfaction with the sales process at automotive dealerships based on four factors (in order of importance): salesperson (34%); working out the deal (26%); facility (21%); and delivery (20%). 

In the mass market segment, year-over-year satisfaction declines in all factors, most notably in working out the deal (-12 points). In the luxury segment, year-over-year satisfaction improves in delivery by 2 points, but drops by at least 10 points in each of the remaining three factors. 

It’s not just owners who bought from the brand for the first time who are critical of the sales experience. For example, among repeat buyers in the luxury segment, salesperson satisfaction drops 19 points year over year, while satisfaction in working out the deal slips 18 points. Further, 32% of repeat buyers in the luxury segment say the purchase price was higher than their expectations, up 4 percentage points from 2015, and 16% say they “somewhat” or “very much” felt pressure from their salesperson to purchase the vehicle, a 6-percentage-point increase.  

“It’s critical for auto dealers to maintain and improve loyalty among existing customers. In fact, in this study, overall satisfaction is higher among existing customers than new customers,” said Urayama. “Yet, the study finds sales satisfaction among existing customers is declining. If auto dealers miss an opportunity to delight their customers, they could lose their foundation for future business.”

Additional key findings of the study include:

• Sales Satisfaction Builds Advocacy: Customers who are satisfied with the sales process are likely to recommend their dealer to family and friends. The study finds that 85% of highly satisfied customers (overall satisfaction scores of 800 or higher) say they “definitely would” or “probably would” recommend their dealership to others, while only 35% of customers with lower satisfaction (scores below 500) say the same.
• Discuss More Than Price: The study finds that customers who indicate they talk with the salesperson about their personal lifestyle or preferences during the sales negotiation are more satisfied with the overall sales process than those who don’t. Among customers who talk about “hobbies/ occupation” with their salesperson, satisfaction averages 716, while satisfaction among customers who talk about “the make/ brand (history, concept, etc.)” averages 709 and averages 693 among those who talk about “who is going to drive the vehicle in question.” In contrast, overall satisfaction averages just 677 when the focus of the conversation is on the vehicle price.
• Mini-Car Segment Slump: Among customers who purchased a mass market mini-car, satisfaction drops significantly to 650 in 2016 from 661 in 2015. The decline in satisfaction is attributed to a 17-point decline in working out the deal. Among mini-car customers who purchased their vehicle with a loan at the dealership, 55% used residual values on auto loans (lease), a 10-percentage-point increase from 2015; however, overall satisfaction among these customers (615) is lower than among those who used standard auto loans (661) and those who purchased with cash (623).

Study Rankings

Lexus ranks highest among luxury brands for a 10th consecutive year, with a score of 744. Lexus performs particularly well in the salesperson, facility and delivery factors. Volvo ranks second (726), followed by Audi (697).

MINI ranks highest among mass market brands, with a score of 699. MINI performs particularly well in the salesperson and delivery factors. Volkswagen ranks second (682), followed by Nissan (670), Toyota (665) and Mitsubishi (661).

The 2016 Japan Sales Satisfaction Index (SSI) Study measures customer satisfaction with the dealer where they purchased their new passenger vehicle. The study is based on responses from 6,943 domestic and import vehicle owners after two to 12 months of ownership. The online survey was fielded from late May through early 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

  1. Sources: Japan Automobile Dealers Association and Japan Automobile Importers Association.

 

Hino Ranks Highest in Owner Satisfaction with Heavy-Duty Commercial and Cargo Trucks For a Seventh Consecutive Year

2016-01-21

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TOKYO: 29 January 2016 — When it comes to heavy-duty trucks, vehicle quality and reliability have the greatest impact on customer satisfaction; however, manufacturing, sales and service must work together to foster long-term loyalty, according to the JD Power 2016 Japan Heavy-Duty Truck Ownership Satisfaction Study^SM released today.

The annual 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 owners’ evaluations of 10 attributes grouped into four factors (listed in order of importance[1]): vehicle (44%); sales (22%); service (22%); and cost (12%). The study has been significantly redesigned for 2016; therefore, the results are not comparable to previous years. Satisfaction is calculated on a 1,000-point scale.

Vehicle quality and reliability has the most influence on satisfying heavy-duty truck customers, as this attribute makes up 52% of the vehicle factor. In this regard, vehicle quality and reliability impacts brand loyalty. For example, among customers who indicate experiencing no (zero) problems for engine/ transmission, 20% say they “definitely would” purchase the same brand again. However, among customers who experience three or more problems, only 9% say they “definitely would” repurchase.

“One way to help long-term reliability is for truck manufacturers to offer vehicle maintenance contracts, as they have a positive impact on vehicle quality, customer satisfaction and retention,” said Yuji Sasaki, director of automotive division at JD Power Asia Pacific. “Currently, just 23% of heavy-duty truck owners have maintenance contracts. To improve this rate, manufacturers need to develop new maintenance service programs, strengthen sales activities and educate customers. Additionally, for maintenance contracts to be effective, manufacturers need to improve the conditions for performing high-quality maintenance.”

Study Rankings

Overall Japan heavy-duty truck ownership satisfaction averages 562. Hino ranks highest for the seventh consecutive year, with a score of 584. Hino performs particularly well in the vehicle factor, outperforming other brands, as well as in the sales and service factors.

Key Findings

• Among truck owners without a maintenance contract, 38% experience engine/transmission problems with their vehicle one or more times, compared with 34% among those with a maintenance contract. Vehicle satisfaction averages 598 index points among owners with a maintenance contract, compared to 567 points among those without one, a 31-point gap.
• The truck salesperson plays a significant role in maintenance contract purchase rates. When the salesperson provides a detailed description of the warranty, the maintenance contract rate improves to 36%, but remains at just 15% when no description is provided. Negotiating a maintenance contract at the time of vehicle purchase is an excellent strategy for developing a positive long-term relationship with customers.

The 2016 Japan Heavy-Duty Truck Ownership Satisfaction Study is based on 4,268 responses from 2,665 truck owners. Each fleet owner evaluated up to two manufacturers. The mail survey was conducted in October 2015.

Media Relations Contacts

Shizue Hidaka; JD Power; Tokyo; Japan; +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 asean-oceania.jdpower.com.

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

About McGraw Hill Financial www.mhfi.com 

 

Hino Ranks Highest in Owner Satisfaction with Light-Duty Commercial Trucks For a Second Consecutive Year

2016-02-01

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TOKYO: 19 February 2016 — Earning trust from customers through effective and efficient sales activities is the key to satisfying customers during purchase negotiations, which also helps avoid price competition or discounts, according to the JD Power 2016 Japan Light-Duty Truck Ownership Satisfaction Study,^SM released today.

The annual study measures overall satisfaction with 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[1]): vehicle (44%); sales (22%); service (22%); and cost (12%). The study has been significantly redesigned for 2016; therefore, the results are not comparable to previous years. Satisfaction is calculated on a 1,000-point scale.

Building a trusting relationship with customers through regular contact during the sales process is highly influential on brand selection and helps avoid price competition in the marketplace. When customers trust their salesperson, they are less likely to challenge the vehicle price and ask for a discount during negotiations. Among owners who indicate their salesperson contacts them at least once a month, 43% cite “trust in the salesperson” as the most frequent reason for choosing the OEM, while 24% of those whose salesperson contacts them less than once a year cite “reasonable vehicle price” as the reason.

Providing customers with a detailed explanation of the vehicle or vehicle’s body specification during the negotiation helps to foster trust in the salesperson. More than four in 10 (41%) customers indicate they received a detailed explanation about the specifications of the vehicle during negotiations and 43% received information about the truck body. Among customers who indicate they trust their salesperson, those percentages increase to 54% and 57%, respectively. Moreover, 43% indicate their salesperson gave an explanation about the vehicle or vehicle body as an after-sales follow-up activity, which increases to 53% among owners who cite “trust in the salesperson” as a reason for choosing the OEM.

“Every salesperson has an opportunity to build trust with customers when they take the time to make frequent contacts and work closely with them during the sales process,” said Yuji Sasaki, director of the automotive division at JD Power. “This can be a challenge when the salesperson is serving multiple customers. Strategically, it is important for OEMs to establish an effective and efficient sales activity model so the sales team understands which key sales performance metrics can help build customer trust and improve satisfaction.”

Study Rankings

Overall Japan light-duty truck ownership satisfaction averages 552. Hino ranks highest for the second consecutive year, with a score of 577. Hino performs particularly well in the sales factor. Hino also ranks highest in the JD Power 2016 Japan Heavy-Duty Truck Ownership Satisfaction Study,^SM published in January 2016.

Key Findings

• Among truck owners indicating their salesperson contacts them at least once a week, overall satisfaction averages 672 points, compared with only 467 among those whose salesperson contacts them less than once a year, a significant 205-point gap. This gap is larger than that for heavy-duty truck owners (194-point gap), suggesting that the frequency of contact has a greater impact on satisfaction among light-duty truck owners.
• As a reason for choosing the OEM, 29% of light-duty truck owners cite “reasonable vehicle price” and 9% cite “reasonable maintenance/ repair costs,” which indicates that both purchase price and cost of ownership are important considerations for customers when buying a truck. However, maintenance cost, rather than the initial vehicle cost, has a greater impact on owner satisfaction, with maintenance cost comprising 56% of the cost factor and initial cost comprising 44%. This finding suggests that informing customers upfront about maintenance costs can positively impact customer satisfaction.

The 2016 Japan Light-Duty Truck Ownership Satisfaction Study is based on 3,400 responses from 2,262 truck owners. Each fleet owner evaluated up to two manufacturers. The mail survey was conducted in October 2015.

Media Relations Contacts

Shizue Hidaka; JD Power; Tokyo; Japan; +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 asean-oceania.jdpower.com.

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

About McGraw Hill Financial www.mhfi.com 

 

Retail Salesperson’s Recommendation for Replacement Tire Brand Leads to Lower Customer Satisfaction in Japan

2015-10-15

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Tokyo: 19 October 2015 ― While a retail salesperson’s recommendation is the main reason customers select a replacement tire brand, satisfaction is significantly lower among customers who purchase the recommended brand than those who select their tires for other reasons, according to the JD Power 2015 Japan Replacement Tire Customer Satisfaction Index Study^SM released today.

The study, now in its seventh year, measures vehicle-owner satisfaction with their newly replaced summer tires based on four factors: traction/ handling; ride; wearability; and appearance. Overall satisfaction scores (on a 1,000-point scale) are calculated for four vehicle segments based on owners’ evaluations of 10 tire attributes. Overall satisfaction is 567 in 2015, compared with 566 in 2014.

Four in 10 customers who purchase replacement tires from a retail store compare other brands before buying. Among those who purchase from a retail store, 36 percent say the tire brand was “recommended by the salesperson,” the most frequently cited reason for choosing their replacement tires. However, satisfaction among customers who purchase the brand recommended by their salesperson is 542, which is 27 points lower than among those who do not purchase the recommended brand (569).  

“Tire retailers need to address the huge disconnect between their replacement tire brand recommendations and low customer satisfaction,” said Taku Kimoto, executive director of the automotive division at JD Power, Tokyo. “The retail salesperson has a unique opportunity to talk with the customer and add value to the shopping experience by providing important insights into tire quality, performance, fuel efficiency and wearability. Online tire websites don’t have the benefit of in-person dialogue.”

Kimoto noted that tire retailers can benefit from building their retail salesforce and developing effective sales training programs. “A knowledgeable salesperson can influence a customer’s tire purchase decision and, in turn, improve satisfaction with the brand,” said Kimoto.

The study finds a correlation between customer satisfaction and brand loyalty. Among highly satisfied customers (overall satisfaction scores of 800 or higher), 94 percent say they “definitely would” or “probably would” purchase the same brand for their next set of replacement tires, and 88 percent say they “definitely would” recommend their brand to others. Repurchase intention drops to 66 percent and recommendation intention drops to 44 percent among customers with low satisfaction (overall satisfaction scores of below 399 and below).

Key Findings

• On a segment basis, overall satisfaction has decreased from 2014 in the midsize segment (581 vs. 590, respectively) and in the large segment (612 vs. 613).
• In the midsize segment, satisfaction has declined the most in the traction/ handling factor (-14 points), followed by the ride and appearance factors (-7 points in each) and wearability (-6). In the large segment, satisfaction has declined the most in the wearability factor (-7 points), followed by traction/ handling (-4) and appearance (-1).  
• More than two-thirds (68%) of replacement tire shoppers compare brands online, with the proportion of online buyers increasing to 21 percent in 2015 from 13 percent in 2013. Among online buyers, the most frequently cited reason for purchasing is “the price was cheap,” at 58 percent.
• The reasons cited for tire selection differ slightly by purchase channel. Customers who purchase from a retail store most often indicate price as the most important consideration (24%), followed by cost of ownership (16%), wearability (11%) and fuel efficiency (10%). Online buyers place the most importance on price (29%), cost of ownership (18%), fuel efficiency (7%) and wearability (6%).

2015 Ranking Highlights

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

Mini-car/ compact car segment (OSAT 540)

Michelin (622) ranks highest in the mini-car/ compact car segment, performing particularly well in all four factors. Dunlop (560) ranks second and Goodyear (557) ranks third.

Midsize segment (OSAT 581)

Michelin (645) ranks highest in the midsize segment and performs particularly well in all four factors. Bridgestone (603) ranks second, followed by Dunlop (585).

Large segment (OSAT 612)

Michelin (654) ranks highest in the large segment and performs particularly well in all four factors. Bridgestone and Pirelli rank second in a tie (627 each).

Minivan segment (OSAT 562)

Michelin (619) ranks highest in the minivan segment and performs particularly well in all four factors. Yokohama (584) ranks second and Dunlop (573) ranks third.

The 2015 Japan Replacement Tire Customer Satisfaction Index Study is based on responses from 7,979 vehicle owners within the first three to 14 months of ownership who purchased new replacement tires (excluding winter tires) between June 2014 and May 2015. The Internet study was fielded from late July through August 2015.

Media Relations Contacts

Shizue Hidaka; JD Power; Tokyo; Japan; +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 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 five offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.

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

About McGraw Hill Financial www.mhfi.com

 

Japanese Brands Top List of Most Dependability Vehicles in Japan

2015-10-19

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TOKYO: 21 October 2015 ― Japanese automakers top the list of the brands with the most dependable vehicles in Japan, and Japanese models rank highest in each segment, according to the inaugural JD Power 2015 Japan Vehicle Dependability Study^SM (VDS) released today. 

The inaugural study 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 experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

Lexus ranks nameplates with a score of 54 PP100, followed by Daihatsu (66 PP100) and Honda, Mitsubishi and Toyota in a tie (69 PP100 each). The overall vehicle dependability score averages 72 PP100.

Toyota has two models that rank highest in their segment: SAI in the midsize segment and the Alphard in the minivan segment. The Nissan Cube ranks highest in the compact segment and the Suzuki Alto ranks highest in the mini-car segment.

“The Japanese automakers have long focused on build high-quality, dependable vehicles, and that is evident in the low number of problems owners of those vehicles are reporting,” said Atsushi Kawahashi, senior director of the Japan automotive practice at JD Power. “All automakers need to maintain that focus, especially as vehicles continue to increase in complexity and new technology is added.” 

The study finds that, as the number of kilometers driven increases, so do the number of problems reported by owners. On average, owners who drive 10,000 kilometers or more per year experience at least one problem with their vehicle.

Vehicles included in the study average a total of 33,326 kilometers. Owners of vehicles with fewer than 20,000 km report an average of 62 PP100, while owners of vehicles with 20,000-36,000 km report 80 PP100 and owners with more than 36,000 report 104 PP100.

The most frequently reported problems are in the exterior category (15.0 PP100), followed by interior (13.6 PP100) and engine/ transmission (11.3 PP100). The top problems reported are unpleasant smells from the air vents at 3.5 PP100, followed by exterior light bulb failure, noisy brakes, and battery failure, each at 2.1 PP100.

“There is a correlation between the number of problems reported and brand repurchase and model recommendation intent,” said Kawahashi. “Given the overall average period of ownership in Japan is more than seven years, it is important for automotive manufacturers to focus on reducing the number of problems owners experience with their vehicle.”

Among owners who have not experienced any problems with their vehicle, 72 percent say they “definitely would” or “probably would” recommend their model to others, and 69 percent say they “definitely would” or “probably would” repurchase the same brand. In contrast, among owners who have experienced at least one problem, intended advocacy drops to 66 percent and loyalty drops to 61 percent.

Key Findings

• The mini-car segment averages the fewest problems (68 PP100), followed by the compact (69 PP100), midsize (71 PP100), large[1] (77 PP100) and minivan (83 PP100) segments.
  • The most frequently reported problems in the mini-car segment are in the exterior category, followed by engine/ transmission and interior.
  • Owners of compact and midsize vehicles most frequently report problems in the interior category, followed by exterior and engine/ transmission.
  • The most frequently reported problems in the minivan and large segments are in the exterior category, followed by interior, engine/ transmission and ACEN.
  • Owners whose vehicle has undergone its first shaken inspection—an inspection required in Japan for all motor vehicles with 250 cc (15 cubic inches) or larger engines to ensure they are properly maintained and safe to be on the road—within the past year report 68 PP100, compared with 82 PP100 among owners whose vehicles were inspected more than a year ago.

The 2015 Japan Vehicle Dependability Study is based on responses from 17,020 purchasers of new vehicles in the first 37 to 54 months of ownership. The study, which includes 16 automotive brands and 132 models, ranks models with a sample size of 100 or more usable questionnaire returns. The study was fielded in July 2015.

Media Relations Contacts

Shizue Hidaka; JD Power; Tokyo; Japan; +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 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 five offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.

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

About McGraw Hill Financial www.mhfi.com 

 

Satisfaction with Aftermarket Navigation Systems Outpaces Factory-Installed Systems, Manufacturers Must Continue to Provide Unique Features to Stay Ahead

2015-10-21

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TOKYO: 22 October 2015 ― Overall customer satisfaction with aftermarket in-dash navigation systems in Japan remains stable, but is higher than with factory-installed navigation systems, according to the JD Power 2015 Japan Navigation Systems Customer Satisfaction Index Study^SM―Aftermarket released today.

Now in its ninth 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[1] (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 is 533 in 2015, unchanged from 2014 and one point higher than in 2013. However, satisfaction with aftermarket in-dash navigation systems is higher than satisfaction with factory- and dealer-installed navigation systems, which averages 521.[2]

There is a direct correlation between satisfaction and repurchase intent among owners of aftermarket navigation systems, as 72% of those who are highly satisfied (overall satisfaction scores of 800 and above) say they “definitely would” repurchase an aftermarket navigation system. As satisfaction declines, the likelihood that customers will purchase a factory-installed navigation system or dealer-installed system rather than an aftermarket system on their next purchase increases. Among owners who currently have an in-dash aftermarket navigation system and indicate they will buy the same type of system in the future, satisfaction averages 552. However, when owner satisfaction with their current in-dash aftermarket navigation system slips to 535 or lower, repurchase intent moves to a factory- or dealer-installed navigation system.  

“While overall satisfaction is higher for aftermarket navigation systems, manufacturers need to provide unique features in their products that appeal to consumers in order improve satisfaction and draw market share from factory- or dealer-installed systems,” said Taku Kimoto, executive director of the automotive division, at JD Power, Tokyo. “Competing with original equipment navigation systems that tend to be integrated into the vehicle operational system and incorporate new technologies—including safety features—is critical in order for aftermarket systems to continue to appeal to consumers.”

Key Findings

• At the factor level, satisfaction with navigation function (525) in 2015 is unchanged from 2014. However, satisfaction with infotainment equipment has improved by 3 points to 538 from 535 in 2014, and satisfaction with operation/ user interface has improved to 519, an increase of 6 points from 513. In contrast, screen satisfaction has declined by 7 points year over year to 565 from 572.
• Compared with original equipment navigation system buyers, aftermarket navigation system buyers more actively collect information in advance of their decision to purchase. Among aftermarket navigation system buyers, 77 percent indicate that they “referred to information sources about navigation systems before shopping,” which is 22 percent higher than OEM navigation system buyers.
• The types of information sources aftermarket navigation system buyers consult prior to purchase vary, with 25 percent indicating they visited “navigation system’s official website,” 21 percent “word-of-mouth information/ reviews on the Internet/ SNS” and 25 percent “shop display.” For factory-installed navigation system buyers these percentages are lower (6%, 5% and 10%, respectively).

Ranking

The Alpine Big X Series ranks highest for a fourth consecutive year, with a score of 589, an increase of 16 points from 2014. The Alpine Big X Series has improved significantly—by at least 10 points—in all four factors, except operation/ user interface.

The Pioneer Cyber Navi Series ranks second at 555, improving by 6 points from 2014. The Kenwood MDV Series ranks third, with a score of 544.

The 2015 Japan Navigation Systems Customer Satisfaction Index Study is based on responses from 2,301 vehicle owners who purchased aftermarket navigation system between April 2013 and March 2015. The Internet study was fielded from late July to early August 2015.

Media Relations Contacts

Shizue Hidaka; JD Power; Metro City Kamiyacho 8F; 5-1-5 Toranomon; Minato-ku, Tokyo; Japan 105-0001; Phone +81-3-4550-8060; [email protected]

John Tews; Director, Media Relations; JD Power; 320 E. Big Beaver; 5^th Floor, Suite 500, Troy, MI, 48083 USA; 001 248-680-6218; [email protected]

About JD Power in the Asia Pacific Region

JD Power 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 in the Asia Pacific region. Together, the five 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 McGraw Hill Financial www.mhfi.com

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

 

Overall Customer Satisfaction with After-Sales Service Improves Driven by the Vehicle Pick-Up and Service Representative

2015-09-15

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Tokyo: 17 September 2015 ― Overall customer satisfaction with the after-sales service process has gradually increased due in part to an improved customer experience with vehicle pick-up and the service representative, according to theJD Power Asia Pacific 2015 Japan Customer Service Index (CSI) Study^SM today.

The study, now in its 14th year, measures overall satisfaction with after-sales service among new-vehicle owners who visit an authorized service center for maintenance or repair work during the first 15 to 50 months of ownership based on five factors (in order of importance): vehicle pick-up (21%); service representative (21%); service quality (21%); facility (19%); and service initiation (18%). Overall customer satisfaction is measured on a 1,000-point scale with a higher score indicating higher customer satisfaction.

Overall service satisfaction increases slightly in 2015, up by 2 points to 654 from 652 in 2014. In the luxury segment, overall satisfaction remains at 726 year over year. In the mass market segment, overall satisfaction increases by 2 point to 651 from 649 in 2014.

“Overall satisfaction is gradually improving as vehicle sales have increased from 2014, however not all brands have improved,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific, Tokyo. “Among those brands that did improve, it is the quality of dealer’s performance, such as the flexibility of the dealers in meeting their customers’ convenience, or how thorough the explanation is about the service work that helps drive customer satisfaction. Manufacturers should focus on the dealer services provided and how they can improve the customer experience.”

Key Findings

• In the luxury segment, satisfaction improves in the service representative (+4 points) and facility factors, (+3); however, satisfaction declines in service initiation (-2), vehicle pick-up (-1) and service quality (-1). In the mass market segment, satisfaction increases in the vehicle pick-up (+6 points), facility (+3), service initiation (+2) and service quality (+1) factors, while satisfaction declines in service representative (-2).
• With respect to service initiation, the service activities performed most frequently that have increased by dealers include protecting the vehicle interior before the service work (+7.5%); checking the vehicle exterior for scratches (+2.5%); checking the condition of the areas not requested prior to beginning the work (+3.0%); checking the condition of the areas asked to be worked on prior to beginning the work (+2.2%); and checking the vehicle’s past service history (+1.8%).
• Providing an outstanding after-sales service experience can generate high levels of dealer loyalty. Among highly satisfied customers (overall satisfaction scores of 800 points or higher), 78 percent say they “probably will” or “definitely will” recommend the dealer to others; however, advocacy drops substantially among customers with lower levels of satisfaction (scores below 500), as only 32 percent of those customers say the same.

2015 Ranking Highlights

Lexus ranks highest in the luxury segment, with a score of 805, which is 79 points higher than the segment average of 726.

MINI ranks highest in the Mass Market segment for a third consecutive year, with a score of 714, followed by Nissan (665) and Toyota (663).

The 2015 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 9,164 domestic and import vehicle owners during 15 to 50 months of ownership. The online survey was conducted from late May through late June 2015.

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 Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at japan.jdpower.com.

About McGraw Hill Financial www.mhfi.com 

Media Relations Contacts

Shizue Hidaka; JD Power Asia Pacific; Metro City Kamiyacho 8F; 5-1-5 Toranomon; Minato-ku, Tokyo; Japan 105-0001; Phone +81-3-4550-8060; [email protected]

John Tews; Director, Media Relations; JD Power; 320 E. Big Beaver; 5^th Floor, Suite 500, Troy, MI, 48083 USA; 001 248-680-6218; [email protected]

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

 

Overall Vehicle Appeal Improves; In-Vehicle Technology Remains Problematic

2015-09-17

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TOKYO: 24 September 2015 ― While overall vehicle APEAL has improved, satisfaction with in-vehicle technology continues to be a trouble spot for the industry, especially with ACEN, according to the JD Power Asia Pacific 2015 Japan Automotive Performance, Execution and Layout (APEAL) Study^SM released today.

The study, now in its fifth 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 2015, increasing by 6 points from 2014. Satisfaction has improved in all categories by 3 to 8 points except ACEN, which remains the same at 592 from 2014. The interior (620) and seats (607) categories improve the most by 8 points each, followed by exterior (647) and fuel economy (642), up by 7 points each.

“While interior roominess, exterior styling and fuel economy have helped drive overall satisfaction with vehicle appeal, performance in the ACEN category remains unchanged from last year, even though a higher percentage of vehicles are equipped with this technology,” said Atsushi Kawahashi, senior director of the automotive division at JD Power Asia Pacific. “Manufacturers need to continuously improve this technology in order to offer customers more appealing vehicles. When customers are satisfied with the appeal of a vehicle, they are more likely to repurchase the same brand or recommend it to friends and family.”

APEAL Score Average Per Segment:

• Mini-car segment: 603
• Compact segment: 619
• Midsize segment: 658
• Large segment[1]: 709
• Minivan segment: 624

Segment Key Findings:

• Across four of the five segments, satisfaction with ACEN has decreased by 1 to 7 points from 2014, with the only exception of mini-car, which is up by 7 points to 574. The compact segment has declined the most, down by 7 points to 583.
• The largest overall improvement in APEAL is in the mini-car and midsize segments, up by 7 points each from 2014. Satisfaction has also improved in the compact (+2 points), large (+3) and minivan (+2) segments.
• In the midsize segment, satisfaction has increased by a significant 16 points in the exterior category. In the mini-car segment, satisfaction has increased by 10 points or more in the interior (+10 points), HVAC (+12) and seats (+13) categories.
• In the minivan segment, satisfaction has increased by a significant 24 points in the fuel economy category, driven by an increase in the percentage of hybrid vehicles in this segment to 34 percent, up 6 percentage points from 2014.

Additional Key Findings

• Achieving high scores in overall APEAL can generate high levels of recommendations and repurchase intention. The study finds that 93 percent of highly satisfied vehicle owners (overall satisfaction scores of 900 or higher) say they “definitely would” or “probably would” recommend the same vehicle model to others, an increase from 88 percent in 2014, and 94 percent say they “definitely would” or “probably would” repurchase the same brand, up from 90 percent in 2014.
• Among the five top reasons customers consider when purchasing a new-vehicle, the two most important are fuel economy/ range (42%) and price/ payment (36%); however, these reasons   have decreased in importance by approximately 2 percent each. All of the remaining reasons to purchase a new-vehicle have increased, including exterior styling (32%), interior roominess (31%) and the image the vehicle portrays (31%), suggesting that reasons not related to fuel economy and price are becoming more important when purchasing a new vehicle.

2015 APEAL Ranking Highlights:

Lexus ranks highest among nameplates, with an overall APEAL score of 748, followed by BMW with a score of 703 and Mercedes-Benz with 694.

Top Three Models Per Segment:

• Mini-car segment: Honda N-WGN ranks highest, followed by Honda N-BOX and Daihatsu Move
• Compact segment: Mazda Demio ranks highest, followed by Toyota AQUA and Honda Fit
• Midsize segment: Audi A3 ranks highest, followed by Subaru Levorg and Subaru WRX in a tie
• Minivan segment: Toyota Alphard ranks highest, followed by Toyota Vellfire and Honda Odyssey

The study is used extensively by manufacturers worldwide to help them design and develop more appealing vehicles and by consumers to help them in their purchase decisions. The 2015 Japan APEAL Study is based on responses from 18,649 purchasers of new vehicles in the first two to nine months of ownership. The study includes 16 automotive brands and 121 models and ranks models with a sample size of 100 or more usable returns. The study was fielded from May through June 2015.

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 Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at japan.jdpower.com.

About McGraw Hill Financial www.mhfi.com 

Media Relations Contacts

Shizue Hidaka; JD Power Asia Pacific; Metro City Kamiyacho 8F; 5-1-5 Toranomon; Minato-ku, Tokyo; Japan 105-0001; Phone +81-3-4550-8060; [email protected]

John Tews; Director, Media Relations; JD Power; 320 E. Big Beaver; 5^th Floor, Suite 500, Troy, MI, 48083 USA; 001 248-680-6218; [email protected]

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

 

As Customer Usage of Their Navigation System Increases, Usability Problems Increase Too

2015-10-06

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TOKYO: 8 October 2015 — As consumers’ use of in-vehicle navigation systems increases, so do such usability issues as external device connectivity and system operability, presenting a challenge for automakers to improve the technology they fit in their vehicles, according to the JD Power 2015 Japan Navigation Systems Customer Satisfaction Index Study^SM—OEM released today.

Now in its eighth year, the study 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.

Overall satisfaction averages 521 points in 2015, the same as in 2014. In the luxury brand segment, satisfaction decreases by 5 points to 549; in the mass market segment, satisfaction increases by 2 points to 520.

Among external devices used to connect to the navigation system to play music, smartphones are used most often at 34 percent, which is a 7 percentage point increase from 2014. The most common problems experienced when using an external device are the “connection setup is troublesome” (41%), followed by it “takes a long time/does not recognize the connection of an external device-aware” (35%). There has been a 3 percent increase in the number of problems with the connection setup and a 7 percent increase in problems with the time it takes to connect the external device. Experiencing a problem impacts satisfaction significantly, with satisfaction among owners who experience no problems with usability/ connectivity of their external device 54 points higher than among those who experience one or more problems (540 vs. 486, respectively).  

“While the usage rate of navigation systems has increased from one to two times per week to three to four times per week, difficulties in connecting and operating the external device with the system have also increased,” said Taku Kimoto, executive director of the automotive division at JD Power, Tokyo. “As navigation system functions are further enhanced, manufacturers need to pursue long-term usability improvements in concert with system integration and vehicle compatibility. To improve customer satisfaction, OEMs should provide instructions on how to use these functions.”

Key Findings

• Satisfaction in the navigation function factor has improved by 2 points year over year to 516, and satisfaction with infotainment equipment has improved by 1 point to 520. Satisfaction in the screen and operation/ user interface factors has declined in each one by 1 point, to 552 and 504, respectively.
• More than one-fourth (27%) of navigation system owners have updated the map data on their system, up 4 percentage points from 2014. However, the percentage of owners who know how to update the map data has decreased slightly by 1 percentage point. The proportion of owners who have their dealer update the map data has increased by 8 percentage points to 33 percent.
• Regarding repurchase intentions, owners who are highly satisfied (overall satisfaction scores of 800 and above) are more likely to choose the factory installed make option—standard/ MOP—for their next navigation system. Among highly satisfied owners, 66 percent say they “definitely would” choose   standard/ MOP; however, the percentage drops to 50 percent among those less satisfied (scores below 500).

2015 Ranking Highlights

Lexus ranks highest among luxury brands for a fourth consecutive year, with a score of 651—a 50-point improvement from 2014.

Toyota (534) ranks highest among mass market brands.

The 2015 Japan Navigation Systems Customer Satisfaction Index Study is based on responses from 7,236 vehicle owners who purchased a new vehicle equipped with a factory- and dealer-installed navigation system between April 2013 and March 2015. The Internet study was fielded from late July to early August 2015.

Media Relations Contacts

Shizue Hidaka; JD Power; Metro City Kamiyacho 8F; 5-1-5 Toranomon; Minato-ku, Tokyo; Japan 105-0001; Phone +81-3-4550-8060; [email protected]

John Tews; Director, Media Relations; JD Power; 320 E. Big Beaver; 5^th Floor, Suite 500, Troy, MI, 48083 USA; 001 248-680-6218; [email protected]

About JD Power in the Asia Pacific Region

JD Power 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 in the Asia Pacific region. Together, the five 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 McGraw Hill Financial www.mhfi.com

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

 

While Problems Have Improved Overall, The Number of Problems Related to New Technology Has Increased

2015-08-24

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Tokyo: 27 August 2015 ― Overall, the number of customer-reported problems has decreased from 2014; however, the number of problems related to new technology, such as navigation systems, voice recognition and Bluetooth, has increased, according to the JD Power Asia Pacific 2015 Japan Initial Quality Study^SM (IQS) released today.

JD Power’s initial quality studies are conducted globally and serve as the industry benchmark for new-vehicle quality. The Japan IQS, now in its fifth year, was redesigned in 2014 to more effectively measure problems related to technologies and features being offered.

The study 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; audio/communication/ entertainment/navigation (ACEN); features/controls/ displays; 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 higher quality performance.

Overall initial quality averages 80 PP100 in 2015, with four fewer problems than in 2014. By category, the overall improvement is driven by engine/ transmission (down 2.4 PP100), seats (-1.4) and driving experience (-1.1). The only category with an increase in problems from 2014 is ACEN (up 1.1 PP100).

The study finds that more than 80 percent of vehicles are equipped with a navigation system (up 3% from 2014); 60 percent have Bluetooth connectivity (up 8% from 2014); and 31 percent have voice recognition (up 6% from 2014). The growing percentage of vehicles with such features has an influence on the increase in the number of ACEN problems reported.

“While there has been an overall improvement in quality for most categories in the study, ACEN is a challenge for vehicle manufacturers, as it is the category with the second-highest number of reported problems this year, following vehicle interior,” said Atsushi Kawahashi, senior director of the automotive division at JD Power Asia Pacific. “As the adoption of smartphone and other media device systems increases in Japan, it is very important for automakers to understand users’ needs to help them improve customer satisfaction with ACEN systems. As preventative accident/safety systems gain importance, automakers will need to improve satisfaction with the features/controls/displays related to these systems. By improving the quality of these technologies and the user experience, vehicle manufacturers are more likely to increase customer satisfaction and brand loyalty.”

Problems in the engine/ transmission category have declined from 2014, when they were the second most frequently reported problems. This has largely contributed to the improvement in the mini-car and compact segments. This problem category has a large impact on fuel efficiency, which was one of the most frequently reported problems in 2014.

Quality by Segment:

• Mini-car segment

Overall initial quality averages 73 PP100, an improvement of 4 PP100 from 2014. Engine/ Transmission (-3.5 PP100) and HVAC (-2.0) contribute to this improvement. However, the number of problems reported in the ACEN category has increased by 1.7 PP100.

• Compact segment

Overall initial quality averages 83 PP100, an improvement of 3 PP100 from 2014. This improvement is driven by the engine/ transmission (-3.4 PP100), driving experience (-2.4) and seats (-2.3) categories, which cumulatively equates to 8.1 PP100 fewer problems. Despite the improvement in those three categories, more problems are reported in the other categories year over year, which has resulted in an overall improvement of only 3 PP100.

• Midsize segment

Overall initial quality averages 88 PP100, an improvement of 6 PP100 from 2014. This improvement is driven by vehicle interior (-2.7 PP100), seats (-2.5) and features/controls/ displays (-2.4). However, the number of problems reported in the other categories—including vehicle exterior—has increased by 0.5 PP100 in each category.

• Minivan segment

Overall initial quality averages 81 PP100, an improvement of 5 PP100 from 2014 that is driven by five categories: seats (-2.5 PP100), engine/ transmission (-1.8), driving experience (-1.4), features/ controls/ displays (-1.2) and vehicle interior (-0.8). The number of problems reported for vehicle exterior, ACEN and HVAC has increased by 1.0 PP100 in each category.

• Large segment[1]

Overall initial quality averages 82 PP100, an improvement of 7 PP100 from 2014. This improvement is driven by seats (-2.6 PP100), ACEN (-2.3) and vehicle exterior (-1.5). However, problems are frequently reported for features/controls/displays, increasing by 1.2 PP100 from 2014.

2015 Ranking Highlights

Toyota ranks highest, averaging 69 PP100. Toyota is followed by Suzuki (71 PP100) and Daihatsu
(78 PP100).

Rankings in the four vehicle segments are:

• Mini-car segment: Nissan Moco ranks highest, followed by Suzuki Lapin and Daihatsu Mira e:s
• Compact segment: Toyota AQUA ranks highest, followed by Toyota Vitz and Toyota Ractis
• Midsize segment: Nissan Leaf ranks highest, followed by Toyota Corolla and Toyota SAI
• Minivan segment: Toyota Vellfire ranks highest, followed by Honda Freed and Toyota Esquire

The 2015 Japan Initial Quality Study is based on responses from 18,649 purchasers of new vehicles in the first two to nine months of ownership. The study, which includes 16 automotive brands and 121 models, ranks models with a sample size of 100 or more usable questionnaire returns. The study was fielded May through June 2015.

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 Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at japan.jdpower.com.

About McGraw Hill Financial www.mhfi.com 

Media Relations Contacts

Shizue Hidaka; JD Power Asia Pacific; Metro City Kamiyacho 8F; 5-1-5 Toranomon; Minato-ku, Tokyo; Japan 105-0001; Phone +81-3-4550-8060; [email protected]

John Tews; Director, Media Relations; JD Power; 320 E. Big Beaver; 5^th Floor, Suite 500, Troy, MI, 48083 USA; 001 248-680-6218; [email protected]

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