Category: United States

JD Power Empowers Online Car Shoppers with Voice of the Customer Website

2020-04-29

TROY, Mich.: 29 April 2020 — Although many Americans are keeping their cars parked while observing stay-at-home directives, some are still in need of a new vehicle to get them back on the road once those orders are lifted. Whether approaching the end of a lease, upgrading a vehicle to accommodate a growing family or it’s simply time for a replacement, JDPower.com, a car-shopping site under JD Power, is a top resource for in-market car shoppers. Unlike any other consumer research site, the easy-to-navigate website provides independent and unbiased feedback from verified vehicle owners that has been collected from JD Power consumer surveys.

“There are great new and used vehicle deals right now so, for some consumers, there has never been a better time to buy. However, there are also a lot of consumers who might not be able to take advantage of them because of financial uncertainty,” said David Paris, senior manager of market insights at JD Power. “In these uncertain times consumers should be sure to balance their cash flow, vehicle price and the loan deal in order to determine the best time to buy a new or used vehicle.”

The COVID-19 pandemic has caused vehicle sales in the U.S. to plummet. However, all 50 states have resumed dealership car sales to reconnect with consumers albeit in a new format. Some dealers offer in-showroom visits by-appointment-only with heightened safety measures, but most dealers arrange deliveries to consumers who shop for their vehicle from home. Consumers can also take advantage of the unprecedented incentives offered on a variety of vehicles to lessen the financial risk of buying a car.

JDPower.com helps consumers make more informed purchase decisions using JD Power Voice of the Customer information generated by owners of products. With access to millions of verified owner reviews and more than 1,000 highly rated vehicle models, consumers can confidently begin their vehicle shopping journey. Each review is compiled from the key automotive studies conducted by JD Power, free of expert opinions and corporate sponsorship.

More information can be found at JDPower.com/cars/shopping-guides.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

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

 

Travel Industry Apps and Websites Continue to Play Catch-Up with Digital Leaders in Other Industries, JD Power Finds

2019-11-18

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COSTA MESA, Calif.: 20 Nov. 2019 — When it comes to customer satisfaction, many of the travel apps and websites created by legacy hotel, airline and rental car brands are lagging those of digital native online travel agencies (OTAs) and travel industry disruptors, such as Uber, Lyft and Airbnb. But that’s not all. According to the JD Power 2019 U.S. Travel App Satisfaction Study^SM and the JD Power 2019 U.S. Travel Website Satisfaction Study,^SM both released today, all travel industry websites—even those operated by digital natives—score substantially lower in customer satisfaction than do high-scoring websites in other industries, such as credit cards.

“Travel apps and websites have become primary conduits through which consumers experience travel, such as searching for a hotel, booking a rental car and getting real-time flight status updates,” said Michael Taylor, Travel Intelligence Lead at JD Power. “Given the crucial role they play, many travel apps and websites are still too complex for consumers to navigate and do not offer the most helpful information at the right time. One hotel website, for example, requires 29 separate actions across five different pages to make a reservation. That’s not good enough when customers are experiencing simple, elegant, seamless experiences in their banking and credit card apps and websites.”

Following are key findings of both studies:

• Travel apps lag far behind customer financial apps in satisfaction: Airline, online travel agency (OTA), hotel and rental car apps all trail highest-scoring credit card apps when it comes to overall customer satisfaction. Overall satisfaction with travel apps is lowest for airline apps, which score 854 (on a 1,000-point scale). This compares with an average score of 872 for overall credit card customer satisfaction.
• Travel website performance lags further: Similar to satisfaction with mobile apps, overall satisfaction with hotel, airline, rental car and OTA websites is substantially lower than those of credit card, banking and insurance industry websites. As an example, the average overall satisfaction score for rental car websites is 827, the lowest of all travel industry categories. This compares with a score of 863 for credit card websites.
• Speed and simplicity matter: Customer satisfaction with travel websites substantially increases when customers say the process of making a reservation was quicker than expected. Still, many travel websites contain multi-step processes and fewer than 20% of customers report a quicker-than-expected reservation experience.
• Helpfulness of notifications varies considerably: Helpful notifications provided by a travel app can add upwards of 92 points to overall satisfaction, but the challenge comes with the execution of those notifications. For example, including concise accompanying text such as “tap to view boarding pass” can be much more effective than simply sending an electronic boarding pass with no descriptive text.
• Digital leaders deliver consistent web and app experiences: While digital native OTA brands tend to deliver the most satisfying website experiences and rental car brands tend to perform better in mobile apps, some top-performing airline, hotel and rental car companies have cracked the code on cross-platform digital satisfaction, delivering strong user experiences and high levels of customer satisfaction across both web and app channels.

 

The 2019 U.S. Travel Website Satisfaction Study and 2019 U.S. Travel App Satisfaction Study evaluate satisfaction with travel apps and websites, respectively, across four segments: airline; hotel; OTA; and rental car. Both studies explore the key variables that influence customer choice, satisfaction and loyalty based on five factors: clarity of information provided; ease of navigation; overall appearance, speed of screens/pages loading; and range of services/activities. The U.S. Travel App Satisfaction Study is based on 12,410 evaluations from users of airline, hotel, OTA and rental car apps. The U.S. Travel Website Satisfaction Study is based on 13,424 evaluations from users of airline, hotel, OTA and rental car websites. Both studies were fielded in August-September 2019.

Travel App Rankings

JetBlue ranks highest in overall satisfaction among airline apps with a score of 872. FlyDelta (865) ranks second and Southwest (864) ranks third.

IHG ranks highest in overall customer satisfaction among hotel apps with a score of 870. Hilton Honors (866) ranks second and World of Hyatt (865) ranks third.

Orbitz ranks highest in overall customer satisfaction among OTA apps with a score of 870. Travelocity (867) ranks second and Expedia (856) ranks third.

Avis ranks highest in overall customer satisfaction among rental car apps with a score of 873. National (863) ranks second and Enterprise Car Rental (859) ranks third.

Travel Website Rankings

Southwest Airlines ranks highest in overall customer satisfaction among airline websites with a score of 849. Alaska Airlines (831) ranks second and JetBlue Airways (829) ranks third.

Choice Hotels ranks highest in overall customer satisfaction among hotel websites with a score of 841. Best Western Hotels & Resorts (840) and Hyatt Hotels (840) rank second in a tie.

Booking.com ranks highest in overall customer satisfaction among OTA websites with a score of 847. Priceline (846) and Travelocity (846) rank second in a tie.

National ranks highest in overall customer satisfaction among rental car websites with a score of 841. Enterprise (836) ranks second and Budget (827) ranks third.

For more information about the U.S. Travel App Satisfaction Study, visit
https://www.jdpower.com/business/resource/jd-power-us-travel-app-satisfaction-study.

For more information about the U.S. Travel Website Satisfaction Study, visit
https://www.jdpower.com/business/resource/us-travel-website-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Increased Transparency and Communications from Service Advisor Elevates Customer Satisfaction, JD Power Finds

2019-08-14

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BANGKOK: 15 August 2019 — Satisfaction is higher among after-sales service customers in Thailand when elements that reinforce a good experience are executed well, according to the JD Power 2019 Thailand Customer Service Index (CSI) Study^SM, released today. These include: giving precise service times at the beginning of service; updating customers about the service status; and providing thorough explanations of the work performed and charges at the end. Overall satisfaction is 831 (on a 1,000-point scale), an increase from 826 in 2018.

The study also finds that a higher proportion of customers (20% in 2019 vs. 16% in 2018) indicate that the service time experienced is better than expected. Satisfaction among vehicle owners whose service time is better than expected is at 858, while satisfaction for those whose service time is worse than expected is 731. A higher percentage of customers (85% in 2019 vs. 62% in 2018) are also kept updated about their vehicle status. Improvements also are seen in post-service explanation about the work performed (98% in 2019 vs. 97% in 2018) and service charges (97% in 2019 vs. 96% in 2018).

“Customers are increasingly more sensitive to the time it takes to service their vehicles,” said Siros Satrabhaya, Regional Director for Thailand at JD Power. “Dealers and automakers play a pivotal role in making the on-the-ground experience more efficient by improving operating procedures and processes to shorten service time. At the same time, dealers should be encouraged to go the extra mile. Washing and vacuuming, for example, would add great value to the quality of service.”

More customers whose cars were completely serviced within the hour rose to 45% in 2019 from 36% in 2018.  However, only 67% of customers said their car was washed and vacuumed post-service, down from 69% last year.

Following are additional key findings of the 2019 study:

• More awareness of internet scheduling tools: Among customers who did not make appointments using the internet or apps, almost one-fourth (24%) said they were not aware that appointments could be made via these channels; an improvement from 36% in 2018. However, 23% of these customers found the online booking system difficult to use, up from 14% in 2018.

• Addressing customer requirements at facilities in Bangkok and beyond the capital: For customers who reside in the regions outside the capital, perks that help satisfaction improve the most are free meals (+31 points above the factor average); a café on premises (+31); and tablets or video games on offer (+22). For customers in Bangkok, availability of tablets or video games (+12) and devices with internet access (+8) have the greatest influence.

• Empathise with customers when recommending additional work: Fewer customers (29% in 2019) accept recommendations for additional work (down from 33% in 2018). Customers who accepted recommendations had higher satisfaction (839 points) versus those who did not (830 points). Service advisors must avoid being pushy and instead suggest only additional work that enhances customer satisfaction.

Study Rankings

Nissan ranks highest in after-sales customer satisfaction with an overall satisfaction score of 838 and performs well on three of the five factors: service advisor, vehicle pick-up and service quality. Isuzu ranks second with a score of 837 and Toyota ranks third with a score of 836.

The JD Power 2019 Thailand Customer Service Index (CSI) Study measures overall satisfaction among vehicle owners who visited an authorised service center for maintenance or repair work during the first 12 to 36 months of ownership, based on five factors (in order of importance): service quality (27%); vehicle pick-up (20%); service facility (18%); service initiation (18%); and service advisor (18%).

Now in its 20th year, the study is based on responses from 3,050 new-vehicle owners who purchased their vehicle between February 2016 and June 2018 and took their vehicle for service to an authorised dealer or service center between February 2018 and June 2019. The study was fielded from February through June 2019.

The study also includes the Net Promoter Score® (NPS)[1], which measures customers’ likelihood to recommend their vehicle brand on a 0-10 scale.

About JD Power

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

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

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

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[1] Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc. 

 

 

Pharmacy Customers Slow to Adopt Digital Offerings but Satisfaction Increases When They Do, JD Power Finds

2019-08-19

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COSTA MESA, Calif.: 20 Aug. 2019 — Despite the looming threat of disruption at the hands of e-commerce, the U.S. pharmacy industry continues to enjoy superior levels of customer satisfaction in both the brick-and-mortar and mail order segments, according to the JD Power 2019 U.S. Pharmacy Study,^SM released today.

“As technology companies promise to change the way Americans address their pharmacy needs, our data suggests that changing such entrenched behavior will be an uphill battle,” said Greg Truex, Managing Director of Health Intelligence at JD Power. “Customers enjoy visiting their brick-and-mortar pharmacy and they get a great deal of satisfaction from speaking directly with pharmacists. However, the potential for technology disruption is there. Although, the frequency of use of digital solutions is low, early adopters are showing high levels of satisfaction.”

Following are some of the key findings of the 2019 study:

• Face-to-face interaction still most prevalent: Most pharmacy customers that communicate with the pharmacist and staff do so in-person (89%), even though customers that use email or online live chat to interact with the pharmacist or staff are equally or more satisfied.

• Thorough pharmacist discussions yield higher customer satisfaction: Satisfaction with the pharmacist is above 940 (on a 1,000-point scale) when pharmacists cover four or more topics with the customer during their interaction, compared with just one (884) or two (917) topics.

• Health and wellness customers spend more at the pharmacy: About two-fifths (42%) of customers who are aware of their pharmacy’s health and wellness services have used one of the services in the past year. While those who have taken advantage of health and wellness services spent 12.5% more on their most recent prescription order, significantly less health and wellness customers received a prescription as a result of their participation in 2019 as compared with 2018.

• Mobile app users more satisfied, but usage is stagnant: Only 20% of customers use a pharmacy’s mobile app, but those who did have satisfaction scores as much as 23 points higher than those who do not.

Study Rankings

Good Neighbor Pharmacy ranks highest overall among brick-and-mortar chain drug store pharmacies, with a score of 914. Health Mart (893) ranks second and Rite Aid Pharmacy ranks third (865).

Sam’s Club ranks highest overall among brick-and-mortar mass merchandiser pharmacies, with a score of 890. Costco (879) ranks second and CVS/pharmacy inside Target (869) ranks third.

Wegmans ranks highest overall among brick-and-mortar supermarket pharmacies, with a score of 915. Publix (897) ranks second and Winn-Dixie ranks third (896).

Humana Pharmacy ranks highest overall in mail order with a score of 900. Kaiser Permanente Pharmacy (886) ranks second and OptumRx (869) ranks third.

The U.S. Pharmacy Study, now in its 11th year, measures customer satisfaction with brick-and-mortar and mail order pharmacies. The 2019 study is based on responses from 12,059 pharmacy customers who filled a prescription during the three months prior to the survey period of May-June 2019.

For more information about the U.S. Pharmacy Study, visit https://www.jdpower.com/business/resource/us-pharmacy-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Kitchen Cabinet Shoppers Researching Online Before Purchasing, JD Power Finds

2019-08-20

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COSTA MESA, Calif.: 21 Aug. 2019 — As kitchen cabinet customers seek to make aesthetic upgrades to their homes, they are doing research to determine which brand will best deliver on their vision, according to the JD Power 2019 Kitchen Cabinets Satisfaction Study,^SM released today.

“Kitchen cabinet shoppers are quite open-minded as they start to shop for the brands they are considering, as there is not as much brand awareness with cabinets as there is with some other major home improvement categories,” said Christina Cooley, At Home Intelligence Lead at JD Power. “Therefore, manufacturers must focus on establishing a presence online, making it easy for shoppers to understand their options, the value behind the brand and how to purchase.  If manufacturers can differentiate from the competition earlier in the shopping process, it facilitates a positive relationship with customers from the get-go, thus driving positive overall satisfaction.”

The study measures satisfaction among customers based on performance in five factors (in alphabetical order): design features; operational performance; ordering and delivery; price; and warranty.

Study Rankings

SEKTION (IKEA) ranks highest in overall satisfaction with a score of 857. American Woodmark and KraftMaid (847 each) rank second in a tie.

The JD Power Kitchen Cabinets Satisfaction Study is based on responses from 1,512 customers who purchased cabinets within the previous 12 months. The study was fielded from January through April 2019.

For more information about the JD Power Kitchen Cabinets Satisfaction Study, visit https://www.jdpower.com/business/resource/us-kitchen-cabinet-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

JD Power Announces Resale Value Awards for Mass Market and Luxury Vehicle Models

2019-08-20

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COSTA MESA, Calif.: 21 Aug. 2019— The 2019 JD Power Resale Value Awards were presented to automotive manufacturers today, recognizing the best resale value across 26 model-level segments following three years of ownership. Vehicles that retain a strong resale value also typically have higher residual values and offer unmistakable benefits to automakers and consumers alike.

“One of the biggest concerns for many new-vehicle owners is depreciation,” said Jonathan Banks, Vice President of Vehicle Valuations & Analytics at JD Power. “Our transaction database shows the models that have the lowest depreciation costs, which can be very helpful to new-car buyers when deciding on their purchase.”

Model-Level Resale Value Awards

The brand receiving the most model-level awards is Lexus (six model-level awards), followed by Honda (five model-level awards), Toyota (four model-level awards) and Porsche (three model-level awards). The GMC Sierra 3500 has the best resale value in the industry.

·         Lexus: Lexus CT; Lexus RC; Lexus GS; Lexus NX; Lexus RX; and Lexus LX

·         Honda: Honda Fit; Honda Civic; Honda Accord; Honda CR-V; and Honda Odyssey

·         Toyota: Toyota Prius; Toyota Tacoma; Toyota 4Runner; and Toyota Tundra

·         Porsche: Porsche Cayman; Porsche 911; and Porsche Panamera

Other models that rank highest in their respective segments are Audi Q3, Chevrolet Tahoe, Dodge Challenger, Dodge Charger, GMC Sierra 3500, Scion tC and Subaru Crosstrek.

For the 2019 award process, 256 vehicle models were evaluated using a sample of more than 630,000 transactions with an average of 2,400 transactions assessed on each vehicle. The award selection process utilizes used vehicle wholesale prices, which represent how much a dealer buys a used vehicle for. These prices are then divided by the vehicle’s original purchase price. These calculations are based on wholesale records from January through June 2019 for vehicles that are three years old. For the 2019 calculation, 2016 is the applicable model year.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

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

 

No Sitting Around: Auto Seat Manufacturers Continue to Improve, JD Power Finds

2019-08-21

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COSTA MESA, Calif.: 22 Aug. 2019 — Overall auto seat quality continues to improve, according to the JD Power 2019 U.S. Seat Quality and Satisfaction Study,^SM released today, which means as auto consumers’ demands increase, manufacturers are listening and executing.

Quality is measured by the number of problems experienced per 100 vehicles (PP100) during the first 90 days of ownership, with a lower score reflecting higher quality. According to this study, with 6.3 seat-related PP100, seat quality is now at its highest level since the study was redesigned in 2013 and represents an improvement of 3.2 PP100 over that period.

“It is particularly encouraging to see so many newly redesigned vehicles—and their seats—performing better than their previous iterations,” said Brent Gruber, Senior Director, Global Automotive Quality Practice at JD Power. “With every vehicle re-design comes the chance for seat upgrades and improvements based on consumer feedback. As quality and satisfaction levels continue to increase, it is clear the manufacturers are capitalizing on opportunities to upgrade and perfect their seats every chance they get.”

The 2019 U.S. Seat Quality and Satisfaction Study is based on responses from more than 75,000 purchasers and lessees of new 2019 model-year cars and light trucks registered in November-December 2018 and January-February 2019. The study was fielded from February through May 2019.

For more information about the JD Power U.S. Seat Quality and Satisfaction Study, visit http://www.jdpower.com/business/resource/us-seat-quality-and-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Credit Card Rewards War Reaches Inflection Point as Competition Grows, JD Power Finds

2019-08-21

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COSTA MESA, Calif.: 22 Aug. 2019 — As U.S. credit card spending continues to set records in the face of an uncertain economy and growing competition from alternative lenders and digital payment apps, credit card issuers are in a pitched battle to win new customers with ever-richer rewards and incentive programs. According to the JD Power 2019 Credit Card Satisfaction Study,^SM released today, the credit card incentive war may have reached its peak, with no real change in customers saying they fully understand the rewards and ancillary benefits available to them.

“The average credit card customer today has roughly 16 different benefits available, yet only about one-third of customers say they completely understand all of the benefits available to them,” said John Cabell, Director, Wealth and Lending Intelligence at JD Power. “While the last several years of rewards-based competition among issuers has served to steadily increase overall customer satisfaction, issuers may have wrung all of the value they can out of this approach. They should now turn their attention to communication to help customers extract the full value from their products and buttress themselves against competition from a growing crop of rivals.”

Following are some key findings of the 2019 study:

• Complex offerings only valued with customer understanding: Facing a rich mix of rewards and benefits, 66% of consumers completely understand rewards offerings but just 36% fully understand their supplementary benefits. Credit card customers who say they fully understand the benefits available to them have satisfaction scores that are 165 points higher than those who do not completely understand their benefits offerings (864 vs. 699 on a 1,000-point scale). Also, customers who completely understand their benefits cite significantly fewer benefits available than those who do not understand their benefits.

• Customer-focused communication around card benefits lacking: Benefits and services is tied with credit card terms as the lowest-rated factor in the study (758), with customers having the lowest levels of satisfaction with the issuer’s explanation of card benefits. Among the most problematic individual benefits that either caused confusion or did not function as expected, most are travel-related, such as free late checkout and free companion ticket.

• Room for reputational improvement: On a 7-point brand image scale, customers give credit card issuers a score of 4.97 on being customer-driven vs. profit-driven, and 41% say they “strongly agree” that their issuer acts in their best interest. As branded products like the Apple Card enter the market, issuers should communicate clearly and deliver consistently on customer promises to boost their image.

• Cyber security and identity theft fears decline in 2019: Recent, high profile data breaches have not yet had a negative effect on customer perception of security, with 52% of customers reporting that they “strongly agree” that their credit card issuer protects their personal identity, up from 49% in 2018. However, given the timing of events, monitoring fluctuations in customer trust in the coming months will be important.

Credit Card Customer Satisfaction Rankings 

Discover ranks highest in customer satisfaction among national issuers, with a score of 842. American Express (838) ranks second, while and Capital One and Chase (807 each) rank third in a tie.

A new segment for regional bank issuers has been created and the inaugural award winner is BB&T, with a score of 811. PNC (810) ranks second.

The U.S. Credit Card Satisfaction Study, now in its 13th year, measures customer satisfaction with credit card issuers by examining six factors (in descending order of importance): interaction; credit card terms; communication; benefits and services; rewards; and key moments. The study includes responses from 28,236 credit card customers and was fielded from September 2018 through June 2019.

For more information about the 2019 U.S. Credit Card Satisfaction Study, visit https://www.jdpower.com/business/resource/us-credit-card-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Customer Demand for Safety Technology Threatened by Overbearing Alerts, JD Power Finds

2019-08-26

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COSTA MESA, Calif.: 27 Aug. 2019 — Some alerts on Advanced Driver Assistance Systems (ADAS) are so annoying or bothersome that many drivers disable the systems and may try to avoid them on future vehicle purchases, according to the JD Power 2019 U.S. Tech Experience Index (TXI) Study,^SM released today. This is a major concern for automakers keen to market these lucrative technologies and pave the way for more highly automated vehicles in the future.

“Automakers are spending lots of money on advanced technology development, but the constant alerts can confuse and frustrate drivers,” said Kristin Kolodge, Executive Director of Driver Interaction & Human Machine Interface Research at JD Power. “The technology can’t come across as a nagging parent; no one wants to be constantly told they aren’t driving correctly.”

A prime example of this is lane-keeping and centering systems. On average, 23% of customers with these systems complain that the alerts are annoying or bothersome. This ranges from just 8% for one domestic brand to more than 30% for a couple of import brands. For these owners, 61% sometimes disable the system, compared with just 21% of those that don’t consider the alerts annoying or bothersome. Owners wanting the feature on their next vehicle ranges from 63% for those that consider the alerts annoying or bothersome to 91% for those who do not.

Kolodge also points out the significant differences across brands. “Some brands are succeeding at making their safety technology effective without being overbearing. Some are good at one aspect but weaker at another, and some are struggling with both. This is why one brand has 90% of its customers wanting lane-keeping/centering on their next vehicle, while another brand has just 59% of its customers saying the same thing.”

Overall satisfaction with new-vehicle technology ranges widely across the vehicles in the study. The best-performing vehicle in the study is the Kia Stinger, scoring 834 (on a 1,000-point scale). The overall average is 781, with the lowest-scoring model achieving just 709.

The study, now in its fourth year, measures owners’ experiences, usage and interaction with 38 driver-centric vehicle technologies at 90 days of ownership. The study provides clarity to auto manufacturers, insurance carriers, telecommunications companies and consumer electronic companies regarding ways to minimize the gap between driver experience and technology feature execution. The major technology categories analyzed in the study are entertainment and connectivity; collision protection; comfort and convenience; driving assistance; smartphone mirroring; and navigation.

Collision protection has the highest score (813) among the six categories measured in the study. Smartphone mirroring (789) is second, followed by comfort and convenience (787); entertainment and connectivity (782); driving assistance (768); and navigation (744).

Following are additional key findings of the 2019 study:

• Apple and Google taking over? More than half (69%) of respondents say they have Apple CarPlay and/or Android Auto in their vehicle. This is starting to jeopardize future sales of the automakers’ factory-installed navigation systems. More than two-thirds (68%) of owners with Apple CarPlay and/or Android Auto want factory-installed navigation on their next vehicle, compared with 72% of those without Apple CarPlay or Android Auto. This is a significant future profit loss for the automakers.
   
• Built-in apps not meeting users’ expectations: The attribute for “ease of using built-in apps” is the lowest-performing attribute in the entertainment and connectivity category (7.63 on a 10-point scale). Among the 29% of owners who have discontinued the use of built-in apps, 46% say they “do not need it” and 18% say they “have another device that performs the function better.” Apps on external devices are a competitive threat, so it’s imperative for automakers to ensure intuitiveness and ease of use.
   
• High satisfaction drives recommendation and repurchase intent: Owner satisfaction with their vehicle technology experience strongly determines whether they will recommend or repurchase the brand. When overall satisfaction is greater than 900, 75% “definitely will” repurchase the same make again and 95% “definitely will” recommend it. Automakers looking to drive loyalty need to provide a highly satisfying tech usage experience.

“Consumers are still very concerned about cars being able to drive themselves, and they want more information about these complex systems, as well as more channels to learn how to use them or how and why they kick in,” Kolodge said. “If they can’t be sold on lane-keeping—a core technology of self-driving—how are they going to accept fully automated vehicles? Dealers remain a partner in the process of helping translate to consumers what these technologies bring to the table, but consumers still need that element of trust that systems are going to kick in when they’re supposed to. It’s essential that the industry recognize the importance of an owner’s first experience with these lower-level automated technologies because this will help determine the future of adoption of fully automated vehicles.”

Award Winners

The Hyundai Kona and Toyota C-HR rank highest in a tie in the small segment; Kia Forte receives the award in the compact segment; Kia Stinger in the compact luxury segment; Chevrolet Blazer in the midsize segment; Porsche Cayenne in the midsize luxury segment; and Ford Expedition in the large segment. Ford Expedition, Hyundai Kona and Kia Stinger receive a segment award for a second consecutive year.

The 2019 U.S. Tech Experience Index Study is based on a survey of more than 20,000 owners and lessees. Awards are based on responses from more than 16,400 owners who purchased or leased a new 2019 model-year vehicle in the previous 90 days that is an all-new or redesigned model within the past three years.[1] The study was fielded February through July 2019.

For more information about the 2019 U.S. Tech Experience Index Study, visit http://www.jdpower.com/resource/us-tech-experience-index-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

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

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¹There must be at least three models with 80% of market sales in any given award segment for an award to be presented. The small luxury and large luxury car segments did not meet the criteria to be award eligible in 2019, thus no awards were issued.

 

 

August to Become Highest Consumer Spending Month Ever As Retail Sales Hit Highest Level Since December 2016

2019-08-28

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The Retail Sales Forecast

New-vehicle retail sales in August are expected to rise from a year ago, according to a forecast developed jointly by JD Power and LMC Automotive. Retail sales are projected to reach 1,404,500 units, a 5.8% increase on a selling day adjusted basis compared with August 2018. It’s important to note that the sales month for August 2019 includes the Labor Day holiday and an additional weekend than the sales month for August 2018. Without the selling day adjustment, sales are projected to increase 9.8%.

The Total Sales Forecast

Total sales in August are projected to reach 1,622,000 units, a 5.0% increase compared with August 2018 (selling day adjusted). The seasonally adjusted annualized rate (SAAR) for total sales, which normalizes sales for the inclusion of the Labor Day holiday and additional weekend this year, is expected to be 16.8 million units. This is down 130,000 units from a year ago.

The Takeaway

Thomas King, Senior Vice President of the Data and Analytics Division at JD Power:

“August will be a blockbuster month for the industry. Sales are expected to post the largest year-over-year gain since December 2016. Strong volumes coupled with higher average sales prices means that consumers will spend more purchasing new vehicles in August than any month in history.

“Rising manufacturer incentives are contributing to August’s strong results, but the industry sales reporting calendar is primarily behind the large gains. This year, the Labor Day holiday will fall within the time period manufacturers use to report August sales, unlike typical years when the Labor Day weekend falls into September sales results. Labor Day is one of the most heavily shopped periods of the year, with consumers motivated by heavy discounts on outgoing model-year vehicles and new 2020 model-year vehicles arriving in showrooms. Last year, more than 237,000 vehicles were sold during the Friday-Monday holiday period.”

Concurrently, industry spending is on pace to exceed $4,000 per unit for the second consecutive month. Manufacturer incentive spending as a percentage of MSRP is on pace to reach 10.5%, up from 10.1% in August 2018. The higher spending is due to manufacturers selling fewer new model-year vehicles, which typically have lower incentives than outgoing model-year vehicles. Month-to-date, new 2020 model-year vehicles have accounted for 8% of sales, down from 13% last year. While manufacturers are well into their sell-down of 2019 model-year vehicles, a large number of 2018 model-year vehicles remain on dealer lots. Nearly 3% of vehicles sold to-date this month have been 2018 model-year and older.

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Transaction prices are expected to set another record, with the average new-vehicle sales price projected to reach $33,322—the highest level ever for the month of August—up 4% (+$1,182) from last year. The average price for cars is up 4% to $26,781 while trucks/SUVs are up 2% to $35,696.

Continued growth in prices, combined with the large growth in retail sales, means that consumers are expected to spend a record $46.8 billion on new vehicles in August. This represents the highest level for any month, edging out the previous high set in December 2018 by $598 million.

 

 

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Looking ahead, the unique sales calendar that is inflating August results will affect September sales. September 2019 has only 23 selling days, the lowest possible number of selling days in a month and only the fourth time this has occurred in the past decade. “While the strong August results will undoubtedly generate headlines, we should all be ready for a dip in sales in September,” King said. “The last time that Labor Day fell into August sales results was in 2014. That year, September retail sales declined by more than 17% from August.”

 

Sales & SAAR Comparison

JD Power and LMC Automotive U.S. Sales and SAAR Comparisons

	August 20191	July 2019	August 2018
New-Vehicle Retail Sales	1,404,500 units (+5.8% higher than August 2018)2	1,202,931 units	1,279,674 units
Total Vehicle Sales	1,622,000 units (+5.0% higher than August 2018)2	1,399,988 units	1,489,515 units
Retail SAAR	13.6 million units	14.1 million units	13.5 million units
Total SAAR	16.8 million units	16.9 million units	16.9 million units

¹Figures cited for August 2019 are forecasted based on the first 21 selling days of the month.
²August 2019 has 28 selling days, one day more than August 2018.

The Details

• The average new-vehicle retail transaction price in August is expected to reach $33,322. The previous high for the month of August, $32,140, was set last year.
• Average incentive spending per unit in August is expected to reach $4,177, up from $3,878 last year.
• Consumers are on pace to spend a record $46.8 billion on new vehicles in August, up $5.7 billion from last year’s level.
• Truck/SUVs account for 71.5% of new-vehicle retail sales through Aug. 25, the highest level ever for the month of August.
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 74 days through Aug. 25. This is up from 67 days last year.
• Fleet sales are expected to total 217,600 units, flat from August 2018. Fleet volume is expected to account for 13.4% of total light-vehicle sales, down from 14.1% last year.

Outlook for the Year

Jeff Schuster, President, Americas Operations and Global Vehicle Forecasts, LMC Automotive:

“Consumers continue to shake off the political and trade turbulence because the economy remains on solid, if somewhat slowing, footing. This foundation, combined with higher fleet volume in the first half of the year, will keep the industry above 17 million units for a fifth year in a row. While the U.S. auto industry has momentum right now, concern about global auto sales is warranted. Global sales are expected to be down 2.5 million units, or 3%, to 92.1 million units. With trade uncertainty in the backdrop, global risks could pull down the U.S. economy, and with it, auto demand next year.”

LMC’s forecast for 2019 total light-vehicle is holding at 17.0 million units, a decline of 1.7% from 2018. The outlook for retail has improved to 13.6 million units, up from 13.5 million units, on stronger recent performance. However, the retail market will post a more pronounced decline of 2.5% from 2018.

Media Relations Contacts
Geno Effler; JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
Emmie Littlejohn; LMC Automotive; Troy, Mich.; 248-817-2100; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info
About LMC Automotive www.lmc-auto.com