Category: Japan

Overall Satisfaction with Automotive Dealer Service Declines, Impacted by Decreases in Service Quality

2014-09-16

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Tokyo: 18 September 2014 ― Automotive dealers in Japan are improving their implementation rates of service activities, but their performance lags in implementing measures that impact the perceived quality of service, according to the JD Power Asia Pacific 2014 Japan Customer Service Index (CSI) Study^SM released today.

The study, now in its 13th year, measures overall customer satisfaction with service performed at automotive authorized dealer facilities 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 reported as an index score based on a 1,000-point scale, with a higher score indicating higher customer satisfaction.

Overall service satisfaction averages 652 points in 2014, down from 679 in 2013. In the luxury segment, overall satisfaction is 726 points in 2014, a 34-point drop from 2013, while satisfaction in the mass market segment is 649 points, a 28-point decline from 2013.

The study finds a correlation between overall satisfaction and how likely customers are to revisit the same dealer for after-sales services. Among highly satisfied customers (satisfaction scores of 800 points or higher), 48 percent indicate they intend to return to the dealer for all after-sales services in the future, while only 30 percent of customers with low satisfaction (scores of 500 or lower) intend to take their vehicle to their dealership for future service.

On average, both luxury and mass market dealers implement 9.3 of the 12 quantitative service activities—such as greeting customers when they bring their vehicle in for service, explaining service charges and completing the work on time—in 2014, up from 8.5 for luxury dealerships and 8.4 for mass market dealerships in 2013. However, among the 13 service quality measures—such as answering the customer’s questions, cleaning the vehicle and providing advice on future maintenance—the average number implemented has declined year over year in both the luxury (5.1 vs. 5.5, respectively) and mass market (3.2 vs. 3.5, respectively) segments.  

“The number of vehicles taken to dealerships for service in Japan has increased as vehicle sales have increased, and dealerships have made profound improvements in their operational efficiency, such as managing their service bay capacity and having sufficient staff to assist their customers,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific, Tokyo. “While the dealerships are improving in the quantitative area, the quality of their customer service is dropping, leading to a decline in overall service satisfaction. Dealers need to find a way to continue to manage the volume of their service work while providing the quality of service vehicle owners expect.”

Key Findings

• Among luxury brands, satisfaction declines across all study factors in 2014. Year over year, vehicle pick-up drops by 40 points; service representative by 37 points; service quality by 33 points; service initiation by 32 points; and facility by 31 points. Among mass market brands, satisfaction also declines across all factors year over year: vehicle pick-up (-37 points); service initiation (-28); service representative (-27); service quality (-26); and facility (-20).
• Compared with mass market brands, satisfaction with customer service is higher among luxury brands in all factors, especially with the widest gap (100 points) in the facility among five major factors.
• ŸAmong the 91.7 percent of customers who are able to get a service appointment on their preferred date, satisfaction averages 664. Satisfaction among customers who are unable to get an appointment on their preferred date drops to 551 points. The percentage of customers able to get an appointment on their preferred date drops to 91.7 percent in 2014 from 93.4 percent in 2013.
• ŸVehicle pick-up satisfaction decreases by 38 points among customers who turned in their vehicle at a dealer and by 29 points among customers who used a vehicle pick-up service, compared with 2013.

2014 Ranking Highlights

Lexus ranks highest in the luxury segment for an eighth consecutive year, with an overall CSI score of 796. Lexus performs particularly well in all five factors. Mercedes-Benz ranks second at 726.

MINI ranks highest in the mass market segment for a second consecutive year, with a score of 685. Nissan ranks second (661), followed by Mazda (659) at third and Mitsubishi and Peugeot in a tie at fourth (658 each).

The 2014 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 9,342 domestic and import vehicle owners after 15 to 50 months of ownership. The online survey was fielded from late May through late June 2014.

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 JD Power and Advertising/Promotional Rules

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Vehicle Appeal Has a Strong Impact on Customer Loyalty and Advocacy

2014-09-22

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TOKYO: 25 September 2014 ― Automakers offering vehicles that have high appeal for owners increases customer loyalty toward and advocacy for the nameplate, according to the JD Power Asia Pacific 2014 Japan Automotive Performance, Execution and Layout (APEAL) Study^SM released today.

The Japan APEAL Study, now in its fourth year, serves as the industry benchmark for new-vehicle appeal. The APEAL Study examines how gratifying a new vehicle is to own and drive. 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. 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. The overall APEAL score averages 622 on a 1,000-point scale in 2014.

The study finds that there is a strong correlation between APEAL scores and recommendation and repurchase intentions of vehicle owners. On average, 7 percent of vehicle owners say they “definitely would” recommend the same vehicle model to others and 6 percent say they “definitely would” repurchase the same nameplate. However, when overall APEAL scores are 727 or higher, 17 percent of owners say they “definitely would” recommend their vehicle and 15 “definitely would” remain loyal to the brand.

“Owners who are highly satisfied with their new vehicle have strong intentions to recommend or repurchase the same make, which is critical since 1 percentage point of loyalty is worth hundreds of millions of yen to automakers,” said Atsushi Kawahashi, senior director of the automotive division at JD Power Asia Pacific. “Providing appealing vehicles is the key to building customer loyalty, as well as attracting new customers.”

The JD Power Asia Pacific 2014 Japan Initial Quality Study^SM (IQS), released in August, finds that recommendation and repurchase intentions decrease when customers experience even a single problem with their new vehicle. Kawahashi notes that as initial quality improves―67 percent of owners in the IQS indicate they did not have a single problem with their vehicle during the first two to nine months of ownership―it becomes increasingly important for manufacturers to provide highly appealing vehicles in order to differentiate themselves in the mature Japanese market.

The average APEAL scores in each segment are:

• Mini-car segment: 596
• Compact segment: 617
• Midsize segment: 651
• Large segment[1]: 706
• Minivan segment: 622

The mini-car segment has the lowest average APEAL score, despite the segment having the fewest average number of problems reported in the 2014 Japan IQS.

2014 APEAL Ranking Highlights

Lexus is the highest-ranked nameplate, with an overall APEAL score of 738. BMW (717) ranks second and Audi (705) ranks third.

The top three models in each of the four segments are:

• Mini-Car segment: Honda N-ONE ranks highest (650), followed by the Suzuki Hustler (646) and Honda N-WGN (645)
• Compact segment: Toyota AQUA ranks highest (652), followed by Honda Fit (640) and Suzuki Swift (617)
• Midsize segment: Volkswagen Golf/Golf Cabriolet/Golf Variant ranks highest (710), followed by Toyota SAI (696) and Mazda Axela (688)
• Minivan segment: Honda Odyssey ranks highest (684), followed by Toyota Voxy (678) and Toyota Vellfire (652)

The 2014 Japan APEAL Study is based on responses from 15,684 purchasers of new vehicles in the first two to nine months of ownership. The study includes 17 automotive brands and 134 models and ranks models with a sample size of 100 or more usable returns. The study was fielded in May 2014. The APEAL Study complements the Initial Quality Study (IQS), which focuses on problems experienced by owners during the first two to nine months of ownership.

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

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

Increased Demand for New Vehicles before Tax Hike Causes a Drop in Sales Satisfaction in Japan

2014-08-18

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Tokyo: 19 August 2014 ― Overall customer satisfaction with the new-vehicle sales process in Japan declines in both the luxury and mass market segments, according to the JD Power Asia Pacific 2014 Japan Sales Satisfaction Index (SSI) Study^SM released today. 

The study, now in its 13th year, measures customer satisfaction with the sales process at automotive dealerships based on four factors that contribute to overall satisfaction (in order of importance): salesperson (34%); working out the deal (26%); facility (21%); and delivery (20%). Sales service performance is reflected in an index score based on a 1,000-point scale.

Overall satisfaction with luxury brands averages 718 in 2014, a 10-point drop year over year, while satisfaction with mass market brands is 649, down 15 points from 2013.

This study fielded during a time when demand for new vehicles increased in Japan in anticipation of the consumption tax hike that went into effect April 1, 2014.

“Satisfaction across nearly all brands has decreased as demand surged before the tax increase went into effect,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific, Tokyo. “Dealers weren’t able to dedicate sufficient time and attention to customers, which had a negative impact on sales satisfaction. New-vehicle sales are expected to increase again, and dealers need to remain focused on satisfying customers during the next surge in purchases.”

Kimoto noted that there was a sharper decline in satisfaction, particularly with working out the deal and delivery, between October 2013 and March 2014. The average delivery time between April 2013 and September 2013 decreased by 2.5 days, compared with the same time period in 2012. However, average delivery time increased by 5.4 days between October 2013 and March 2014, compared with the October 2012 to March 2013 time frame, due to purchase demand immediately before the consumption tax increase.

KEY FINDINGS

• In the luxury segment, year-over-year satisfaction in the facility factor drops by 21 points and by 16 points in the delivery factor. In the mass market segment, working out the deal and salesperson factor scores decrease by 19 points and 14 points, respectively, compared with 2013.
• Customer satisfaction with the sales process is higher among the luxury brands than the mass market brands in all four factors. On average, the widest gap in satisfaction scores between the two segments is in facility (86 points).
• Satisfaction among customers who only shopped at the dealer from which they purchased their vehicle averages 664, compared with 637 among customers who shopped at more than one dealership.
• The study finds a correlation between overall satisfaction and the likelihood of customers to recommend their dealer to family and friends. Among satisfied customers (satisfaction scores of 800 points or higher), 84 percent say they “probably will” or “definitely will” recommend their dealer to others. However, advocacy drops to 35 percent among customers with lower levels of satisfaction (satisfaction scores of 500 or lower).

2014 Ranking Highlights

Lexus ranks highest among luxury brands for an eighth consecutive year. Lexus achieves a score of 761 and performs particularly well in all four factors. Mercedes-Benz ranks second with a score of 718.

MINI ranks highest in the mass market segment for the second consecutive year with a score of 706. MINI performs particularly well in all four factors. Volkswagen ranks second (676), followed by Mitsubishi (666), Nissan (659) and Toyota (653).

The 2014 Japan Sales Satisfaction Index (SSI) Study measures customer satisfaction with the dealer where they purchased their new passenger vehicles. The study is based on responses from 7,297 domestic and import vehicle owners after an average of two to 12 months of ownership. The online survey was fielded from May to June 2014.

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 

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

Price Hikes Spark Sharp Decline in Customer Satisfaction with Auto Insurance Providers

2014-08-25

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TOKYO: 22 July 2014 — Premium increases under a new rating scheme have a negative impact on customer satisfaction with direct-type insurers, according to the JD Power Asia Pacific 2014 Japan Auto Insurance Shopping Satisfaction Study^SM and the JD Power Asia Pacific 2014 Japan Auto Insurance Satisfaction Study,^SM both released today.

The Japan Auto Insurance Shopping Satisfaction Study, in its third year, measures satisfaction with the contact person or channel at the time of the policy purchase among customers who recently purchased auto insurance for the first time or switched insurance companies. Overall satisfaction is measured in three factors: policy offering, price and distribution channel.

The Japan Auto Insurance Satisfaction Study, now in its 11th year, measures overall satisfaction among current auto insurance (voluntary insurance) customers during the term of their auto insurance policy. Overall satisfaction is measured in five factors: policy offering, price, policy statement, interaction and claims.

Both studies segment insurance companies based on their primary selling methods: agency-type insurers and direct-type insurers. Agency-type insurers primarily sell policies and interact with customers through insurance agencies, such as specialized agencies or automobile dealerships. Direct insurers sell policies and interact with customers directly, principally via the Internet or phone. Satisfaction is calculated on a 1,000-point scale.

The Japan Auto Insurance Shopping Satisfaction Study finds that overall satisfaction with agency-type insurers averages 564 in 2014, a 10-point decline from 2013, while satisfaction with direct-type insurers averages 624, down 23 points from last year. The decline in satisfaction with direct insurers is primarily due to a 27-point drop in price satisfaction year over year.

Similarly, the Japan Auto Insurance Satisfaction Study finds a decline in overall satisfaction with both agency and direct insurers, driven by an increase in the percentage of customers who experience a premium increase, due in part to the General Insurance Rating Organization of Japan’s insurance rate plan. According to the study, 31 percent of current policyholders indicate their premiums have increased during the past year, up from 29 percent in 2013. As a result, satisfaction with agency insurers averages 602, down 17 points, while satisfaction with direct-type insurers averages 615 in 2014, a 26-point decrease from 2013. Satisfaction in the policy offering and price factors declines by 30 points and 29 points, respectively.

While insurance premiums are increasing, the number of times insurance providers are contacting their customers is decreasing. Only 49 percent of customers indicate they were contacted by their insurance company during the past year, compared with 55 percent in 2013.

“The increase in premiums has negatively impacted satisfaction with direct-type insurers, for which low premiums is a key attribute,” said Chie Numanami, senior manager, JD Power Asia Pacific. “With the increases in premiums as a result of the government rate scheme that went into effect in early 2013, it is critical that insurance providers proactively communicate with customers to make them aware of rate hikes and to reinforce the value of their insurance policy. Effective communication can increase satisfaction and foster loyalty.”

KEY FINDINGS

• The Japan Auto Insurance Shopping Satisfaction Study finds that insurance premiums for customers who purchased auto insurance for the first time in 2014 are 1,141 higher than among those who purchased insurance for the first time in 2013.
• ŸWhile overall satisfaction with agency-type insurers at the time of policy purchase declines by 10 points, the insurance shopping study finds the average premium amount in 2014 has remained the same as in 2013 (60,844).
• ŸSatisfaction with the contact person or sales channel at the time of the policy purchase averages 632 in 2014, down 15 points from 2013, according to the insurance shopping study. Furthermore, 63 percent of customers indicate the contact person with whom they spoke provided useful advice about insurance coverage options and compensation details, or policy riders, compared with 68 percent in 2013. Satisfaction among customers who receive advice about compensation details or policy riders averages 588, which is 90 points higher than among those who were not provided such information.
• ŸIn the Japan Auto Insurance Satisfaction Study, interaction satisfaction, which measures satisfaction with the agency that serves as the point of contact for renewal procedures, change of policy details and inquiries, has declined to 667 in 2014 from 688 in 2013.

Japan Auto Insurance Customer Satisfaction Rankings

In the Japan Auto Insurance Shopping Satisfaction Study, AIU Insurance Company ranks highest in customer satisfaction in the agency-type insurers segment for a third consecutive year, achieving a score of 600. AIU Insurance Company performs particularly well across all three factors. Nisshin Fire and Marine Insurance ranks second (592) and Fuji Fire and Marine Insurance ranks third (576); both perform well across all three factors.

In the Insurance Shopping Satisfaction Study direct-type insurers segment, Saison Automobile and Fire Insurance ranks highest in customer satisfaction for a second consecutive year, achieving a score of 641 and performing particularly well in the policy offering factor. SBI Insurance ranks second (638) and performs particularly well in the price factor. E.design Insurance ranks third (624), performing well in the policy offering and price factors.

In the Japan Auto Insurance Satisfaction Study, AIU Insurance Company ranks highest in customer satisfaction in the agency-type insurers segment for a second consecutive year, achieving a score of 650. AIU Insurance Company performs particularly well across all five factors. Fuji Fire and Marine Insurance and Nipponkoa Insurance rank second in a tie (614 each), and each insurer performs particularly well across all five factors.

Saison Automobile and Fire Insurance ranks highest in customer satisfaction among direct-type insurers for a second consecutive year, achieving a score of 627 and performing particularly well in the policy offering factor. Sony Assurance ranks second (624), performing particularly well in the interaction and claims factors, while SBI Insurance ranks third (617), performing particularly well in the price factor.

The Japan Auto Insurance Shopping Satisfaction Study is based on responses from 8,345 auto insurance (voluntary insurance) customers who recently purchased auto insurance (including customers who switched from another insurance company). The online study was fielded in May 2014. The Japan Auto

Insurance Satisfaction Study, based on online responses from 9,065 auto insurance (voluntary insurance) customers, was fielded in May 2014.

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 

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

Owners Reporting a Variety of Problems with Their New Vehicle, Ranging from Transmission to Bluetooth

2014-08-26

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Tokyo: 28 August 2014 ― New-vehicle owners in Japan are experiencing a wide array of problems with their vehicle, and the problems vary differ greatly depending on the vehicle segment, according to the JD Power Asia Pacific 2014 Japan Initial Quality Study^SM (IQS) released today. 

The Japan IQS, which serves as the industry benchmark for new-vehicle quality, has been redesigned for 2014 to better measure the quality of today’s vehicles, particularly problems related to new technologies and features now being offered. Additionally, the study allows for more detailed feedback from new-vehicle owners.

The study, now in its fourth year, measures new-vehicle quality in the first two to nine months of ownership. Vehicle quality is evaluated 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 indicating higher quality performance.

The study finds that overall initial quality averages 84 PP100 in 2014. The problems reported most frequently overall are cup holders difficult to use; automatic transmission hesitates/ shifts at wrong times; and navigation system difficult to use or poor location.   

The problem categories most frequently reported at the segment level vary greatly.

• In the mini-car segment, engine/ transmission problems comprise 45 percent of the problems reported, followed by vehicle interior (31%) and ACEN (8%).
• In the compact segment, vehicle interior problems make up 33 percent of the problems, followed by engine/ transmission (31%), seat (13%) and ACEN (11%).
• In the midsize segment, vehicle interior (54%) and ACEN (39%) are the most frequently citied problem categories.
• Vehicle interior problems (45%) is the most frequently reported problem categories in the minivan segment, followed by ACEN (19%), engine/ transmission (18%) and seat (7%).
• In the large segment,[1] ACEN problems are the most common (58%), followed by vehicle interior (28%), and seat and engine/ transmission (each 7%).

“Problems in the engine/ transmission category, which have a great impact on fuel consumption, continue to be more frequently reported in the mini-car and compact segments, in which automakers are working toward building more fuel efficient vehicles,” said Atsushi Kawahashi, senior director of the automotive division at JD Power Asia Pacific. “As it stands now, engines and transmissions are clearly failing from the perspective of new-vehicle owners with respect to the smoothness of shifting and acceleration.”

Audio/ communication/ entertainment/ navigation, seats and vehicle interior problems are more prevalent in the midsize, large and minivan segments, in which there are more vehicles equipped with a navigation system, new technology and other features. Problems in the ACEN category are most often attributed to connectivity, functionality and usability issues, including Bluetooth connectivity.

“With the continued increase in smartphone usage, it’s important that automakers and suppliers provide technology in their vehicles that pairs well with an owner’s phone,” said Atsushi. “Understanding what customers want for operability and usability in their vehicle, as well as capturing ever-changing customer expectations, is imperative to satisfying customers and establishing loyalty.”

2014 Ranking Highlights

Toyota ranks highest among nameplates, with a quality score of 76 PP100. Suzuki ranks second (78 PP100), followed by Honda (81 PP100) and Daihatsu (84 PP100). Toyota models also rank highest in each of the four segments, which is the first time one nameplate has swept all four awards since the study started measuring multiple segments in 2011.

Rankings in the four vehicle segments are:

• Mini-car segment: Toyota Pixis Epoch ranks highest, followed by Honda N-BOX and Nissan Dayz Roox.
• Compact segment: Toyota Ractis ranks highest, followed by Toyota Aqua and Toyota Passo.
• Midsize segment: Toyota SAI ranks highest, followed by Nissan Leaf and Honda Vezel.
• Minivan segment: Toyota Alphard ranks highest, followed by Toyota Voxy and Mazda Premacy.

The 2014 Japan Initial Quality Study is based on responses from 15,684 purchasers of new vehicles in the first two to nine months of ownership. The study includes 17 automotive brands and 134 models and ranks models with a sample size of 100 or more usable questionnaire returns. The study was fielded in May 2014.

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 

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

Satisfaction with Winter Tires in Japan Decreases during the Second Season of Use and Beyond

2014-05-14

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Tokyo: 15 May 2014 ― Satisfaction with winter tires decreases during the second season of use and beyond, according to the JD Power Asia Pacific 2014 Japan Winter Tire Customer Satisfaction Index Study^SM released today. 

In 2014, which is the 11th year the study has been published, evaluation criteria has been revised to reflect the maturing tire market and changes in the automotive sales market in Japan. The study measures customer satisfaction with winter tires by examining six factors (in order of importance): traction/ handling on icy roads (25%); appearance (17%); ride/ quietness (17%); wearability (15%); traction/ handling on snow-covered roads (13%); and traction/ handling on dry/ wet roads (13%). Overall customer satisfaction with winter tires averages 551 (on a 1,000-point scale) in 2014.

 KEY FINDINGS

• The study examines satisfaction with the performance of winter tires based on the number of winter seasons used. Customer satisfaction declines by a significant 27 points between the first season (567) and second season (540). Satisfaction drops to 536 points in the third season.  
• Satisfaction with transaction/ handling on snow-covered and icy winter roads declines significantly during the second season. Traction/ Handling on snow-covered roads satisfaction drops to 549 in the second season from 584 in the first season, and satisfaction with traction/ handling on icy roads declines to 528 from 565, while satisfaction in all factors declines during the second season.
• Regarding seasonal tire performance, in the second season of ownership, 33 percent of customers perceive changes in the wear on their winter tires under snow-covered and icy road conditions, and this perception increases to 39 percent of customers in the third season.
• The study also finds a correlation between overall customer satisfaction and brand loyalty. Nearly two in five (39%) highly satisfied customers (overall satisfaction scores of 800 and above) are loyal,  having owned the same brand in the past and intending to purchase the same brand of replacement winter tires in the future, compared to only 19 percent of customers with lower satisfaction (scores of 400 and below) who are loyal.  
• Nearly one-half (46%) of customers are loyal, having owned the same brand in the past and intending to purchase the same brand of replacement winter tires in the future. Bridgestone has the highest percentage of loyal customers (65%) in the industry.

“While tire manufacturers have improved the basic performance of winter tires, in order to differentiate themselves in the future, they need to reduce the rate of tire deterioration,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific, Tokyo. “Given that 53 percent of customers have owned their winter tires for four years or more, it is imperative to decrease customer’s perception of aging and deterioration in their winter tires in order to retain and increase their satisfaction.”

2014 Ranking Highlights

Michelin ranks highest in overall customer satisfaction for an 11th consecutive year, with a score of 633. Michelin has continued to lead the industry since the study was launched in 2004. Michelin performs well across all factors. Bridgestone ranks second with a score of 583, achieving above-industry average scores in all factors.

The 2014 Japan Winter Tire Customer Satisfaction Index Study is based on responses from 7,525 vehicle owners who purchased and continue to use new winter tires for their personal passenger vehicle (including mini-cars) between May 2011 and February 2014. The online survey was fielded in February 2014.

The Japan Winter Tire Customer Satisfaction Index (W-TSI) Study is one of many benchmark studies conducted by JD Power Asia Pacific in Japan. Other 2014 studies conducted by JD Power Asia Pacific include:

• The 2014 Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership, will be released in August
• The 2014 Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, will be released in August
• The 2014 Japan Customer Service Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities, will be released in September
• The 2014 Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership, will be released in September
• The 2014 Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with original equipment and aftermarket navigation systems, will be released in October
• The 2014 Japan Replacement Tire Customer Satisfaction Index Study, which measures customer satisfaction with replacement tires (excluding winter tires), will be released in October

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at japan.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

Insurance Agents Are Becoming the Main Purchase Channel for Obtaining Medical Benefit Insurance

2014-06-04

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TOKYO: 12 March 2014 — Insurance agents are becoming the main channel for consumers to purchase medical benefit insurance as the percentage of customers who purchase policies from life insurance company sales representatives is decreasing, according to the JD Power Asia Pacific 2014 Japan Life Insurance Contract Customer Satisfaction Pre-Purchase Study^SM and JD Power Asia Pacific 2014 Japan Life Insurance Contract Customer Satisfaction Post-Purchase Study^SM released today.

Now in its fourth year, the 2014 Japan Life Insurance Contract Customer Satisfaction Pre-Purchase Study measures overall customer satisfaction with life insurance purchase process based on four factors (in order of importance): interaction channel; forms and documents; price; and policy offering.

The study finds that the percentage of customers who purchase medical benefit insurance from an insurance agent is 38 percent—the highest of any purchase channel—while 34 percent purchase from an insurance company representatives, down from 42 percent in 2012.  

“When we launched the study in 2011, insurance company sales representatives were the main purchase channel for life insurance,” said Chie Numanami, senior manager at JD Power Asia Pacific. “However, the percentage of policyholders purchasing through this channel has decreased each year, while the percentage purchasing from insurance agencies has increased.”

The 2014 Japan Life Insurance Contract Customer Satisfaction Post-Purchase Study measures satisfaction among existing policyholders two years or more after the purchase of life insurance based on three factors (in order of importance): interaction channel; forms and documents; and price. The study finds that policyholder satisfaction improves to 587 in 2014 from 580 in 2013. Satisfaction among life support insurance policyholders, in particular, has improved 12 points to 591.

KEY FINDINGS

Pre-Purchase Study

• Satisfaction is 24 points higher among customers who purchased their life support insurance policies from insurance agents than among those who purchased from insurance company representatives. For medical benefit insurance, the gap is 10 points.  
• Customers who purchase insurance from an insurance agent are more likely to receive information and advice about their policy than those who purchase from insurance company representatives (38% vs. 21%, respectively). Satisfaction among customers who received such explanations or advice is 79 points higher than among those who did not, and policy renewal intention and likelihood to recommend metrics also increase.

 Post-Purchase Study

• The percentage of customers who receive communication or information from their insurance company representative or insurance agent during the past 12 months has increased to 80 percent in 2014 from 72 percent in 2012.
• percentage of customers who indicate receiving information on procedures when changing registered information The or changing policy details, or receiving other correspondence from their insurance provider, such as a New Year’s card, birthday card or calendar, has increased to 27 percent in 2014 from 23 percent in 2013.
• In addition to higher satisfaction, policy renewal intention is 10 points higher among customers who indicate receiving some kind of follow-up from their provider than among those who indicate they received no communication at all from their provider.

Study Rankings

Pre-Purchase Study—Life Support Insurance Segment

The Prudential Life Insurance ranks highest in customer satisfaction for a fourth consecutive year with a score of 687 points. The Prudential Life Insurance performs particularly well across all four factors that comprise overall satisfaction. Sony Life Insurance ranks second (661) and Tokio Marine & Nichido Life Insurance ranks third (647).

Pre-Purchase Study—Medical Benefit Insurance Segment

Sony Life Insurance ranks highest with a score of 662 and performs particularly well in the interaction channel, and forms and documents factors. AIG Fuji Life Insurance ranks second (652), followed by Tokio Marine & Nichido Life Insurance (646).

Pre-Purchase Study—Wealth Building Insurance Segment

Sony Life Insurance ranks highest for a third consecutive year with a score of 683 points and performs particularly well in all four factors. JAPAN POST INSURANCE ranks second (634) and Aflac third (633).

The 2014 Japan Life Insurance Contract Customer Satisfaction Pre-Purchase Study measures customer satisfaction with the customer service provided by insurance companies and agencies, as well as satisfaction with insurance companies during the purchase process. The study, based on online responses from 10,963 policyholders who purchased new life insurance policies or renewed policies during the past 12 months, was fielded in December 2013.

The 2014 Japan Life Insurance Contract Customer Satisfaction Post-Purchase Study measures customer satisfaction with the customer service provided by insurance companies and agencies, as well as satisfaction with insurance companies after purchase. The study, based on online responses from 6,635 policyholders who purchased life insurance at least 24 months before the survey and who had not purchased new policies or renewed policies during the past 12 months, was fielded in December 2013.

In both studies, life insurance products are classified under three main policy types according to customer awareness and needs, and satisfaction is measured for each policy type. The details of the insurance segments are as follows:

• Life Support Insurance: Policies cover death insurance; income guarantee insurance; and long-term care insurance
• Medical Benefit Insurance: Policies cover cancer insurance and medical insurance
• Asset Building Insurance: Policies cover individual annuity insurance; variable life insurance; education endowment insurance; and juvenile insurance
• Customers are also asked about Internet-based life insurance companies, cooperative insurance companies, and nonlife insurance companies to obtain data for reference purposes.

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

 
About JD Power and Advertising/Promotional Rules http://www.jdpower.com/about/index.htmAbout 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

Customer Retention Improves as Satisfaction with Claims Handling Increases

2014-06-04

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TOKYO: 19 March 2014 — Customer satisfaction with insurance payment claims has increased for a second consecutive year, and continuous improvement in satisfaction with the claims process drives higher customer retention rates, according to the JD Power Asia Pacific 2014 Japan Life Insurance Claims Satisfaction Study^SM released today.

Now in its fourth year, the study measures overall satisfaction among customers who completed life insurance payment or benefits claim procedures during the past 12 months based on three factors (in order of importance): interaction channel; settlement; and claim filing process. Overall satisfaction scores are derived from customer evaluations of attributes in each factor.  

Customer satisfaction with medical benefit insurance improves to 668 (on a 1,000-point scale) in 2014 from 657 in 2013. Furthermore, 32 percent of customers indicate they intend to renew their policy, up from 30 percent in 2013.

“In addition to the overall industry trend, policy renewal intention has increased by 4 percentage points among insurance companies with substantial increases in satisfaction scores—at least 30 points—during the past two years,” said Chie Numanami, senior manager of the Services Emerging Industries Division at JD Power Asia Pacific. “Improving satisfaction with claims handling helps foster customer loyalty.”

Numanami noted that the key driver of higher customer satisfaction is not whether or not an explanation is provided, but whether or not the explanation promotes customer understanding. “Providing courteous explanations of claims procedures tailored to the customer has a major impact on their satisfaction,” said Numanami.    

KEY FINDINGS

• Nearly nine in 10 (88%) of insurance companies provide their customers with face-to-face instructions on how to file a claim and fill out the related forms.  
• The study finds substantial differences in satisfaction among customers who receive instructions, compared with those who do not.
• Satisfaction is significantly higher among customers who receive instructions and an explanation, compared with those who do not receive either (704 vs. 574, respectively).
• There is a 178-point gap in satisfaction when representatives properly respond to customers’ questions (696) vs. when they do not (518).

Study Rankings

Life Support Insurance Segment

Sony Life Insurance ranks highest in the life support insurance segment with a score of 666 points. Sony Life Insurance performs particularly well in the interaction channel and settlement factors. MetLife Alico ranks second (664), followed by Mitsui Life Insurance (657), ORIX Life Insurance (654) and Aflac (649). 

Medical Benefit Insurance Segment

Sony Life Insurance ranks highest in the medical benefit insurance segment with a score of 727 points, and performs particularly well across all three factors. Fukoku Mutual Life Insurance and The Prudential Life Insurance rank second in a tie (708 each), followed by Tokio Marine & Nichido Life Insurance (707) and MetLife Alico (694)

The 2014 Japan Life Insurance Claims Satisfaction Study is based on online responses from 7,646 policyholders. The study was fielded in December 2013.

The study segments life insurance products into two main policy types according to customer awareness and needs: life support insurance and medical benefit insurance. Details of the insurance segments are:

• Life support insurance policies provide death insurance; income guarantee insurance; and long-term care insurance
• Medical benefit insurance policies provide cancer insurance and medical insurance
• Customers are also asked about Internet-based life insurance companies and cooperative insurance companies to obtain data for reference purposes 

About JD Power Asia Pacific

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

About JD Power and Advertising/Promotional Rules http://www.jdpower.com/about/index.htm

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

2014-02-21

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TOKYO: 16 January 2014 — Following three consecutive years of improvement, hotel guest satisfaction in Japan decreases in 2013, due partially to an increase in room charges, according to the JD Power Asia Pacific 2013 Japan Hotel Guest Satisfaction Index Study^SM released today.

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

Overall guest satisfaction averages 650 on a 1,000-point scale, down three points from 2012. This slight decline in satisfaction follows a trend in which satisfaction had gradually increased each year since 2010.

As demand for lodging and hotel occupancy rates have increased in 2013, guest room rates have risen. The study finds that the average room rate has risen to 9.6 percent from 2012. 

Among hotels most impacted by the rate hikes are those that charge low room rates (less than ¥9,000 per night), which experience a 10-point decline in overall satisfaction in 2013. Competition among these hotels has been particularly fierce since 2010.

“Increases in room charges have detracted from the impression of inexpensiveness and value for money, which is central to the appeal of these hotels,” said Chie Numanami, senior manager at JD Power Asia Pacific.

While in general the increase in room rates has had a negative impact on guest satisfaction, this is not true for all hotels. Overall guest satisfaction increases for 17 of the 65 hotel chains included in the study, which also charged their guests more in 2013 than in 2012. These 17 hotel chains that have achieved higher overall satisfaction scores for 2013 also have been able to improve their scores in other factors, such as check-in/ check-out, food and beverage and hotel services. Regarding the check-in and check-out factor, more than 90 percent of guests indicate that they were provided efficient, hospitable front desk services, such as being greeted “with a smile” at the time of arrival at the hotel. Improvement in hotel staff service quality also contributes to the improvement in satisfaction.

“A characteristic of the 17 hotel chains that have increased their room charges and have also posted higher satisfaction scores is an improvement in their performance in the food and beverage and hotel services factors,” said Numanami. “At a time when room charges are increasing, the keys to providing a higher quality guest experience and increasing guest loyalty are improving the service skills of hotel staff and adding value in such areas as food and beverage facilities and Wi-Fi.”

Hotel Rankings

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

• ¥35,000 or More per Night Segment: The Ritz-Carlton ranks highest for the eighth consecutive year, with an overall score of 786. The Ritz-Carlton performs particularly well in the reservations; guest rooms; food and beverage; check-in/ check-out; hotel facilities; and hotel services factors.
• ¥15,000 to Less than ¥35,000 per Night Segment: Associa Hotels & Resorts (Hotel Associa) ranks highest with a score of 721. Hotel Associa performs particularly well in the guest rooms and hotel facilities factors.
• ¥9,000 to Less than ¥15,000 per Night Segment: Richmond Hotel ranks highest for the eighth consecutive year, with a score of 685. Richmond Hotel performs particularly well in the guest rooms; check-in/ check-out; hotel facilities; cost and fees; and hotel services factors.
• Less than ¥9,000 per Night Segment: JR Kyushu Hotel ranks highest with a score of 677. JR Kyushu Hotel performs particularly well in the guest rooms and hotel facilities factors.

The 2013 Japan Hotel Guest Satisfaction Index Study is based on responses from 29,214 guests 18 years of age and older who stayed in a hotel in Japan during the previous 12 months. The online study, which examines 144 hotel groups and chains nationwide, was fielded in August 2013.

About JD Power Asia Pacific

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

About JD Power

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

About McGraw Hill Financial

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

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

Trust and Relationships Translate into Light-Duty Truck Sales

2014-02-21

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TOKYO: 21 February 2014 — Dealer relationships and trust of salespersons are the top reasons commercial fleet owners purchase a particular light-duty truck, according to the JD Power Asia Pacific 2013 Japan Light-Duty Truck Ownership Satisfaction Study^SM released today.

Light-duty truck owners most frequently cite trusted salesperson from dealer (37%) and relationship with dealer (36%) as their reasons for purchasing a particular brand–more frequently than price (31%).

“Having completed compliance with the Post New Long-Term Regulations of diesel emissions among truck makers, brand differentiation by product offering is getting much tougher than the past,” said Taku Kimoto, executive director of the automobile division at JD Power Asia Pacific, Tokyo. “A key challenge manufacturers face is achieving differentiation in the areas of sales and service. While fleet owners regard trust of the salesperson is most important, dealers need to build strong relationships with owners by providing them with excellent customer service.”

The study, now in its eighth year, measures overall satisfaction with light-duty truck manufacturers and their authorized dealers among commercial fleet owners, including managers of truck freight companies. Satisfaction is determined by examining four key factors (in order of importance): service (51%), sales (25%), vehicle (13%) and cost (11%). Overall satisfaction scores are calculated based on owner evaluations of 62 attributes. In the 2013 study, overall satisfaction averages 630 (on a 1,000-point scale).

Rankings