Category: United States

August New Vehicle Retail Sales Pace Dips to Lowest Level So Far in 2017

2017-08-23

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DETROIT: 24 Aug. 2017 — The new vehicle retail sales pace in August is expected to decline for the fifth time this year, according to a forecast developed jointly by JD Power and LMC Automotive. The seasonally adjusted annualized rate (SAAR) for retail sales is expected to be 13.0 million units, a decrease of 341,000 units from a year ago and the lowest level of the year. Retail sales in August are anticipated to reach 1,284,411 units, a 1.9% decrease (selling day adjusted) compared with August 2016.

“The dip in retail demand for new vehicles in August is consistent with the slowdown observed throughout 2017, despite the availability of large discounts as manufacturers work to clear out last year’s models,” said Thomas King, Vice President of PIN OEM Operations, Media & Marketing at JD Power.

Despite the slowdown, the upcoming Labor Day holiday represents a key sales opportunity for manufacturers.  “Labor Day is one of the most heavily shopped periods of the year, as consumers take advantage of sales promotions that typically extend through the first week of September,” King said.  In 2016, more than 400,000 vehicles were sold during the Labor Day holiday, accounting for nearly 3% of annual sales.

The combination of a slowing sales environment, a busy holiday shopping period and the need to clear out old models means that manufacturers are expected to continue with aggressive discounting, especially since they have record levels of old models in inventory.  So far in August, last year’s models (2017 & older) account for 91% of retail sales, compared with 81% last year.

Average incentive spending per unit to date in August is at a record for the month at $3,805, surpassing the previous high of $3,645 set in August 2016, and is expected to rise further during the month.  Last year, incentive spending over the holiday period rose by nearly 5% from the start of the month.

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

	August 20171	July 2017	August 2016
New-Vehicle Retail Sales	1,284,411 units (-1.9% lower than August 2016)2	1,243,911 units	1,260,562 units
Total Vehicle Sales	1,522,950 units (-2.9% lower than August 2016) 2	1,413,920 units	1,511,108 units
Retail SAAR	13.0 million units	14.1 million units	13.3 million units
Total SAAR	16.6 million units	16.7 million units	17.2 million units

¹Figures cited for August 2017 are forecasted based on the first 17 selling days of the month.

²August 2017 has 27 selling days, while August 2016 had 26 selling days in the month.

• The average new-vehicle retail transaction price to date in August is $31,004, a record for the month, surpassing the previous high for the month of $30,971 set in August 2016.
• Consumers are on pace to spend $39.9 billion on new vehicles in August, a record for the month and nearly $1 billion more than last year’s level.
• Average incentive spending per unit to date in August is $3,805 per unit, a record for the month, and surpassing the previous high for the month of $3,645 set in August 2016. Spending on trucks and SUVs is $3,696, up $192 from last year. Spending on cars is $3,988, up $131.
• Incentives as a percentage of MSRP are at 10.6% so far in August, exceeding the 10% level for 13th time in the past 14 months.
• Trucks account for 63.2% of new-vehicle retail sales through Aug. 20—the highest level ever for the month of August—making it the 14th consecutive month above 60%.
• 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 through Aug. 13. This is the highest level since July 2009 (80 days).
• Fleet sales are expected to total 238,500 units in August, down 8.3% from August 2016 on a selling day adjusted basis. Fleet volume is expected to account for 16% of total light-vehicle sales, down from 17% in August 2016.

 Jeff Schuster, senior vice president of forecasting at LMC Automotive, said, “The pullback in light vehicle demand for the U.S. market continues to solidify, but it’s paramount to focus on the segment transition going on below the topline and not fixate on demand being past apex. For the next few years, we expect the topline range to hover in the vicinity of this year, and the recipe for success in the near-term remains unchanged. OEMs with fresh products in the right segments with the latest technology will win. The further market shift toward SUVs will need to be balanced with the future push toward EVs and investment in future mobility.”

LMC’s forecast for 2017 total light-vehicle sales is holding at 17.0 million units, down 500,000 units from 2016. The retail light-vehicle outlook remains at 13.8 million units, a 2% projected decline from 2016. Fleet volume is expected to be down 7% from 2016, but the majority of the year-over-year pullback has already taken place. SUVs are expected to grow to more than 42% of total light vehicle sales this year, up 2 percentage points from 2016. That growth coming from the car segment, which is projected to fall 2 percentage points to 33% in 2017.

U.S. Retail SAAR— August 2016 to August 2017

 

(in millions of units)

Source: Power Information Network^® (PIN) from JD Power

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

About LMC Automotive www.lmc-auto.com.

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]

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

 

Decline in Pharmacy Customer Satisfaction Driven by Prescription Drug Costs, JD Power Finds

2017-08-31

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COSTA MESA, Calif.: 5 Sept. 2017 — The U.S. pharmacy industry, perennially one of the highest-scoring industries measured by JD Power, experienced notable declines in overall customer satisfaction this year. According to the JD Power 2017 U.S. Pharmacy Study,^SM decreases in satisfaction with both brick-and-mortar and mail order pharmacies are driven primarily by declines in satisfaction with cost.

“Pharmacies have historically earned very high marks for customer satisfaction, so any significant year-over-year decline is cause for closer investigation,” said Rick Johnson, Director of the Healthcare Practice at JD Power. “Consumer concerns about rising drug prices have likely affected perceptions of the cost for their retail prescriptions. The decrease in satisfaction with cost is the primary drag on overall customer satisfaction, creating a serious challenge for retailers.”

Following are some of the key findings of the study:

• Decline in customer satisfaction driven by cost: Decreases in satisfaction with brick-and-mortar pharmacies are driven by year-over-year declines in satisfaction with cost, which falls 27 index points to 789 (on a 1,000-point scale), and the in-store experience, a 14-point drop to 851.  Decreases in satisfaction with mail order pharmacies are driven by declines in satisfaction with cost (-49 to 787) and the prescription ordering process (-15 to 877).

• Drug adherence highest with mail order, lowest at specialty pharmacy: This year’s study measures drug adherence levels across the different pharmacy channels for the first time, and finds that 79% of customers who fill their prescriptions through a brick-and-mortar pharmacy say they always adhere to their medications. This compares with 84% among mail order customers and 74% among specialty pharmacy customers. Customers who discuss a prescription with a pharmacist in a brick-and-mortar pharmacy at the time of pick-up have the highest overall levels of adherence.

• New segment: New to the U.S. Pharmacy Study is the specialty segment.  Specialty drugs often require special handling, might be infused, and can cost significantly more than non-specialty prescriptions.   

• Supermarkets have highest overall satisfaction among pharmacy channels: Among all channels studied, supermarkets have the highest levels of overall customer satisfaction (859), followed by mail order (853); hospital or clinic (851); chain drug stores (849); specialty pharmacy (842); and mass merchandisers (839).

Study Rankings

Good Neighbor Pharmacy ranks highest overall among brick-and-mortar chain drug stores with a score of 889. Health Mart (886) ranks second and The Medicine Shoppe Pharmacy ranks third (879).

Sam’s Club ranks highestoverall among brick-and-mortar mass merchandisers with a score of 874. Fred’s (873) ranks second and Costco (875) ranks third. While CVS Pharmacy at Target placed fifth this year, it had the largest increase in satisfaction of any pharmacy from 2016 (+20).

Brookshire Grocery Co. ranks highest overall among brick-and-mortar supermarkets with a score of 894. H-E-B (893) ranks second and BI-LO (891) ranks third.

Kaiser Permanente Pharmacy ranks highest overall in mail order (884). Humana Pharmacy (871) ranks second and Walmart Pharmacy Mail Services (864) ranks third.

Walgreens Specialty Pharmacy ranks highest among specialty pharmacies with a score of 853. BriovaRx (851) ranks second and CVS Specialty/CVS Caremark (840) ranks third.

While the Veterans Administration mail order pharmacy (CMOP) is not rank-eligible, it has been either the highest scoring or second-highest scoring mail order pharmacy every year the study has been conducted. In 2017, VA CMOP is the highest-scoring mail order pharmacy and the third-highest scoring pharmacy (892) across all segments. However, VA hospital and clinic pharmacies are the lowest-scoring pharmacies across all segments (786).

About the Study
The U.S. Pharmacy Study, now in its ninth year, measures customer satisfaction with brick-and-mortar, mail order, and specialty pharmacies. The 2017 study is based on responses from 17,326 pharmacy customers who filled a new prescription or refilled a prescription during the three months prior to the survey period of May-June 2017.

For more information about the U.S. Pharmacy Study, visit http://www.jdpower.com/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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; 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/about-us/press-release-info

 

Trust in Retail Banks Is Strong; Fake Accounts Not Pervasive, JD Power Finds

2017-09-01

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COSTA MESA, Calif.: 7 Sept. 2017 — Retail banks have earned the trust of their customers, who believe banks help them find the right product based on their financial needs, according to the JD Power 2017 U.S. Banking Sales Practices and Advice Study. The inaugural study gauges the effect of retail bank sales practices and financial advice on overall customer satisfaction across the 23 largest banks in the United States. While unauthorized accounts opened by banks are a serious issue, the study finds such occurrences to be rare. More common issues that destroy trust are customers feeling pressured to open an account and being surprised by fees after opening an account.

“When it comes to the most fundamental issues in a retail banking relationship—customers trusting their bank to do the right thing and to act ethically—U.S. retail banks get a clean bill of health,” said Jim Miller, Senior Director of Retail Banking Services at JD Power. “But there are still areas where the perception of overly aggressive sales practices and surprise fees are having a negative influence on overall customer satisfaction. This creates a unique opportunity for retail banks to stop selling so hard and to start offering tailored financial advice, which can improve customer satisfaction and solidify the strong trust base that has already been built.”

Following are key findings of the study:

• Customers trust their banks and believe they act ethically: Among retail bank customers, 85% say they either “somewhat agree” or “strongly agree” that they trust their bank to do the right thing, and 79% say they believe their bank acts ethically. In-depth analysis shows that a statistically insignificant proportion of customers—less than 0.1%—had an unauthorized account opened by their bank in the past year.

• Pressure to open new accounts persists with deleterious effect: When opening a new account, 9% of bank customers indicate they felt sales pressure from bank representatives. Of those, 16% say the pressure was significant. Overall satisfaction scores are 71 index points higher (on a 1,000-point scale) among customers who did not feel pressured by a representative when opening a new account, compared with those who did feel pressured.

• Customers surprised by fees are less satisfied: When it comes to fees, 13% of bank customers indicate being surprised by fees associated with a new account. Overall satisfaction scores are 110 index points higher among customers who were not surprised by fees when opening a new account vs. those who were surprised. Fee surprises also destroy trust. Among customers who were not surprised by a fee, 56% say they “strongly agree” that they trust their bank to do the right thing, but drops to 31% among those who were surprised by a fee.

• Fee transparency and customer engagement lead to higher satisfaction: When bank representatives completely explain fees up front, the frequency of fee-related surprises drops to 7%. Likewise, when representatives ask questions before suggesting a new account, overall satisfaction increases 75 index points and overall levels of trust increase by 17 percentage points.

• Advice—not sales—is key to greater satisfaction and loyalty: Among customers who received financial advice from their retail bank, 60% indicate they acted on it and roughly 60% of those customers say they opened a new account as a result of the advice. Overall satisfaction scores are 70 index points higher when bank customers receive financial advice, with 96% of those who received financial advice saying they either “probably will” or “definitely will” use the same financial institution the next time they need a bank account or product.

About the Study
The inaugural 2017 U.S. Banking Sales Practices and Advice Study measures customer satisfaction among retail bank customers of the 23 largest U.S. banks who have opened a new account in the past year with a bank representative; received financial advice in the past year from a bank representative; and customers who said they had an account opened without their consent in the past year. The study is based on responses from 22,208 retail bank customers and was fielded in June 2017.

Banks included in the study are Bank of America; Bank of the West; BB&T; BBVA Compass; BMO Harris; Capital One; Chase; Citibank; Citizens; Comerica; Fifth Third; HSBC; Huntington; KeyBank; M&T Bank; PNC; Regions; Santander; SunTrust; TD Bank; Union Bank; U.S. Bank; and Wells Fargo.

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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

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

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

 

Gas Utility Customer Satisfaction Improves for Sixth Straight Year, JD Power Finds

2017-09-11

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COSTA MESA, Calif.: 13 Sept. 2017 — Industry-wide efforts to improve safety through a combination of multimedia direct customer outreach and residential safety inspections are having a positive effect on residential gas utility customer satisfaction. According to the JD Power 2017 Gas Utility Residential Customer Satisfaction Study,^SM released today, customer satisfaction has increased for the sixth consecutive year on a nationwide basis.

“The residential gas utility industry has committed significant resources to customer engagement, dramatically increasing the number of communication channels they use and consistently positioning themselves as advocates of safety who are here to help customers,” said Carl Lepper, Utility Industry Analyst at JD Power. “That work is paying off in the form of consistently improving customer satisfaction scores that are being driven by perceptions of increased safety and reliability.”

Following are some key findings of the study:

• Customer satisfaction trending significantly higher: Overall satisfaction in the 2017 study is 29 index points higher (on a 1,000-point scale) than in the 2016 study. This is the sixth consecutive year of customer satisfaction performance improvement for the residential gas utility industry.
• Perception of safety is key to customer satisfaction: Gas utility efforts to advocate for safety have a positive impact on customer satisfaction, with satisfaction 88 index points higher among customers who had a safety inspection conducted by their utility than among those who did not receive an inspection. Likewise, satisfaction among customers who say their gas utility was “very helpful” or “somewhat helpful” in preparing for a safety issue is 150 points higher than among those who say their utility was “not very helpful” or “not at all helpful.”
• Digital communication channels and alerts drive customer engagement: Digital customer alerts from the utility addressing everything from usage to severe weather to emergencies, such as a natural gas leak, are being adopted widely by utility customers. Communication satisfaction among customers who indicate receiving one of these alerts is 104 index points higher than among those who did not receive an alert.
• Proactive communications regarding service interruptions improve customer satisfaction: Overall customer satisfaction scores are higher when residential customers experience an interruption but are alerted to it in advance than when they do not experience any service interruptions at all.

Study Rankings

The study, now in its 16^th year, ranks large and midsize utility companies in four geographic regions: East, Midwest, South and West. Companies in the midsize utility segment serve between 125,000 and 399,000 residential customers, and companies in the large utility segment serve 400,000 or more residential customers.

The following utilities rank highest in customer satisfaction in their respective regions:

• East Large: New Jersey Natural Gas
• East Midsize: Elizabethtown Gas
• Midwest Large: MidAmerican Energy
• Midwest Midsize: Alliant Energy
• South Large: Atmos Energy/CenterPoint Energy
• South Midsize: TECO Peoples Gas
• West Large: NW Natural
• West Midsize: Intermountain Gas Company

The 2017 Gas Utility Residential Customer Satisfaction Study is based on responses from more than 61,000 online interviews conducted between September 2016 and July 2017 among residential customers of 85 large and midsize gas utility brands across the continental United States.

For more information about the Gas Utility Residential Customer Satisfaction Study, visit http://www.jdpower.com/resource/us-gas-utility-residential-customer-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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts

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

John Roderick, JRoderick PR; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Non-Premium Vehicles Provide Same Tech Experience as Premium Vehicles, JD Power Finds

2017-09-12

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COSTA MESA, Calif.: 13 Sept. 2017 — While non-premium and premium vehicle owners are equally satisfied with the level of technology—and its ease of use—in their new vehicle, a degree of “lost value” still exists since most owners don’t completely understand and use all available vehicle technology, according to the JD Power 2017 Tech Experience Index (TXI) Study,^SM released today.

Overall owner satisfaction with new-vehicle technology among both premium and non-premium owners averages 750 (on a 1,000-point scale).

Satisfaction is highest in the large segment (777), followed by the compact segment (753); compact premium segment (751); midsize premium segment (746); midsize segment (744); small premium segment (739); and small segment (732).

The study, now in its second year, measures drivers’ experiences, usage, and interaction with 35 driver-centric vehicle technologies at 90 days of ownership. The study provides subscribers with an understanding of opportunities for minimizing the gap between driver experience and execution. The major technology categories analyzed in the study include entertainment and connectivity; comfort and convenience; driving assistance; collision protection; navigation; and smartphone mirroring.

Important factors in defining the user experience are understandability; usability; usefulness; and trust. “User experience is an influential differentiator in technology acceptance and in perceived automotive quality. While owners are excited by new vehicle technology, they are also often confused by it,” said Kristin Kolodge, Executive Director of Driver Interaction & HMI Research at JD Power. “For owners, it doesn’t matter if the technology is just difficult to use or if an actual failure occurs—it’s all the same to them. In many instances, they envision the ideal user experience they want and are looking to the manufacturers to provide it.”

Higher frequency of usage typically leads to higher satisfaction with a feature, and vice versa. However, this is affected by other aspects of the user experience, such as understandability, trust and usability. Satisfaction is very low among owners who tried a feature but no longer use it. These owners represent a captive audience who have paid for the feature but, through a poor experience, have decided not to continue using it. The most prominent reason given by owners for not using features is because they do not need them.

The highest rate of occurrence among owners who tried, but no longer use a feature is in-vehicle mobile router (10%). When these owners—along with those who have never used the feature—were asked why, 43% say they “did not need” the feature and 24% say they “did not want to incur further costs to use the technology.” Both reasons equate to a lack of value for the feature as perceived by owners.

Following are additional key findings of the study:

• Safety Technologies Continue to Generate Highest Satisfaction: As in the 2016 study, the highest overall satisfaction this year is for collision protection systems, with an index score of 787.  In contrast, owners are least satisfied with their navigation system (714). Owners provide the highest ratings for helpfulness of blind spot warning and detection and ease of using back-up camera/warning system (8.61 and 8.56, respectively, on a 10-point scale).
• Getting Back to Basics: Interactions that owners are likely to use every time they drive, such as cluster information, HVAC, seats, phone and entertainment controls, are considered basics. Across the basic interactions, there is an average decline in overall satisfaction of 83 points among owners who experienced a difficult to use or understand (DTU) issue vs. those who did not.
• Dealers are Important for Technology Acceptance: For every technology measured in the study, satisfaction is higher when owners learn to operate that technology from their dealer, as opposed to a non-dealer source. However, the time owners are willing to spend at the dealer for delivery is limited—sales satisfaction generally begins to decline after 25 minutes,[1] indicating that dealers have to prioritize their time with what technologies they explain and demonstrate to new owners. Consequently, this puts the onus back on the manufacturers to design technologies that are intuitive for owners to understand and use.
• Owners Know What They Want: Owners have a vision of how they’d ideally want a specific vehicle technology to operate. For example, in the instance of factory-installed navigation systems, 68% of owners prefer to have a favorite or frequently entered address listed first vs. a most recently entered address. In an instance like this, adding an option for customization or personalization may be appropriate to satisfy the majority.

“Owners are drawing parallels between their understanding of current vehicle technology and the trust they must likely place in autonomous vehicle technology in the future,” Kolodge said. “There’s a big gap right now. If someone can’t understand how to set their vehicle’s adaptive cruise control, they will certainly doubt their ability to operate an autonomous vehicle. Manufacturers need to consider the adoption of marketing and communications strategies to educate and instill confidence in potential autonomous vehicle owners.”

In the 2017 study, the Chevrolet Camaro ranks highest in the midsize segment for a second consecutive year. Also ranking highest in their respective segments are Kia Niro (small segment); Audi A3 (small premium segment); Hyundai Elantra (compact segment); Lincoln MKC (compact premium segment); Audi Q7 (midsize premium segment); and Chevrolet Tahoe (large segment).

The 2017 Tech Experience Index (TXI) Study is based on a survey of more than 19,500 vehicle owners and lessees. Awards are based solely on responses from the 14,900 owners who purchased or leased a new 2017 model-year vehicle in the previous 90 days that is an all-new or redesigned model within in the past three years.[2] The study was fielded from February through July 2017.

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

See the online press release at http://www.jdpower.com/pr-id/2017152.

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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts

Geno Effler; West Coast; 714-621-6224; [email protected]

Shane Smith; East Coast; 424-903-3665; [email protected]

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

 

‘Disruptive’ Website/App Users Spend More Time Researching Vehicles before Purchasing, JD Power Finds

2017-09-13

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COSTA MESA, Calif.: 14 Sept. 2017 — Users of “disruptive” websites and apps—such as Zappos, Netflix, Uber and AirBnB—digital brands that challenge traditional business models,spend more time using their smartphones to conduct research prior to visiting a dealership, according to the JD Power 2017 New Autoshopper Study,^SM released today.

The study analyzes how new-vehicle buyers use digital devices—tablets, smartphones and computers—to gather information prior to purchase, as well as which websites and apps they use during the shopping process. The study also examines which types of content new-vehicle buyers access during their shopping process and which content they find most useful. This year, the study also explores the behavior of users of disruptive websites and apps that consumers use in their everyday life.

Users of disruptive websites and apps comprise 13% of new-vehicle buyers who use automotive shopping sites. They tend to be younger, but are not limited to the youngest generations[1]—although 33% of Gen Y are users, 18% of Gen X and 6% of Boomers and Pre-Boomers also fall into the disruptive user category. 

“It is important that we understand the automotive shopping patterns of disruptors, as it gives us a look into the future of what the digital auto shopping ecosystem may look like, as more and more consumers embrace these disruptive websites and apps,” said Sean Weingarten, Director, Automotive Retail Practiceat JD Power. “It’s not just young people—it’s anyone who is open to the adoption of completely new experiences.”

The path to purchase for these disruptor site and app users is similar to non-disruptive site users—both groups take about four months to shop for and buy their new vehicle—but disruptive site users spend far more total hours conducting automotive research on the internet than non-users (19 hours vs. 12 hours, respectively) and visit more automotive shopping sites (12 sites vs. 9 sites). Users of disruptive technologies also visit more third party sites and are far more likely to use smartphones to conduct automotive research (69%) than are non-users (38%).

Other key findings of the study include:

• Automotive research on mobile devices on the rise: More than half (56%) of automotive internet shoppers conduct research on a mobile device. Smartphone usage continues to trend upward in 2017 (42% vs. 37% in 2016), while tablet usage dips slightly (32% vs. 33% in 2016). The average internet shopper spends 13 hours conducting automotive research online, and now 36% of the total time spent is on mobile devices.
• Third-party website leaders remain unchanged: The study examines 35 third-party websites. The three most frequently visited third-party sites have remained consistent since 2012: Kelley Blue Book (41%), Edmunds (29%) and Consumer Reports (23%), although both Edmunds and Consumer Reports experience notable drops in visitation this year (-3 and -7 percentage points, respectively, vs. last year).
• Influencing the purchase funnel: More than half (53%) of automotive internet shoppers indicate that they knew the make or model of the vehicle they wanted to purchase before beginning to shop, then went on to buy it. In fact, since 2013, the percentage of buyers that know the exact model they initially want to buy has increased steadily, from 28% to 37% this year.  This, in turn, has driven down the number of vehicles considered and the number of dealers visited among automotive internet shoppers.

The 2017 U.S. New Autoshopper Study is based on responses from 18,393 purchasers and lessees of new 2015 to 2017 model-year vehicles who used information gathered digitally during their shopping process.  The study was fielded from February through June 2017.

For more information about the 2017 New Autoshopper Study, visit http://www.jdpower.com/resource/jd-power-new-autoshopper-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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

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

 

Wireless Customers Generally Satisfied, but Poor Problem Resolution Can Sink U.S. Carrier Retention, JD Power Finds

2017-07-25

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COSTA MESA, Calif.: 27 July 2017 — Tread carefully, wireless carriers! U.S. customers are generally satisfied with their service—until a carrier makes them work too hard to resolve a problem, according to the JD Power 2017 U.S. Wireless Customer Care Full-Service Performance Study^SM—Volume 2 and the JD Power 2017 U.S. Wireless Customer Care Non-Contract Performance Study^SM—Volume 2, both released today.

A fast resolution to a problem—whether companies try to solve it in-store, online or through social media—is the best way to both avoid customers’ ire and curb their temptation of switching providers. This means reducing wait times, training staff to be skilled and knowledgeable and solving the problem on the first try are issues of paramount importance. Still, data from each study indicate there is considerable room for improvement.

Following are key findings of the 2017 studies:

• Is anyone there? When customers say they “strongly agree” or “somewhat agree” that it required a lot of effort to speak with a live representative, their satisfaction is down by 210 points, compared to when they “strongly disagree” or “somewhat disagree” that it required a lot of effort (642 vs. 852, respectively).
• Quickly, now. Average hold time and time spent on the line are key factors in customers’ perceptions of their wireless provider. The average hold time was 4.8 minutes among those who say they “strongly disagree” or “somewhat disagree” that it required a lot of effort to resolve their most recent issue, and their average total time spent on the line was 8.1 minutes. Those numbers ballooned to 10.6 minutes on hold and 21.1 minutes on the line among those who say they “strongly agree” or “somewhat agree” that resolving their problem required significant effort.
• Getting it right on the first try. Having an issue resolved on the first contact contributes to a lower perception of effort. For example, on the phone, the first-contact resolution rate is 85% among those who strongly or somewhat disagreed that it required a lot of effort to resolve their most recent issue, compared with only 31% among those who strongly or somewhat agreed.
• Social media matters. The percentage of online customers using social media for problem resolution is actually down from Volume 1 (to 5% from 8%). However,those who go online to use social media experience much higher levels of overall satisfaction (841 among those who do vs. 792 among those who use another online method). Notably, customers who use social media provide relatively high ratings for attributes pertaining to knowledgeability and timeliness, and incidence of first-contact resolution is considerably higher, with only slightly more time required.
• Churn is for ice cream and butter, not wireless carriers. Reducing customer effort can reduce churn. A mere 5% of customers who strongly or somewhat disagreed that issue resolution required a lot of effort say they “definitely will” switch carriers in the next 12 months, compared with 41% of those who somewhat or strongly agreed their problem required significant effort.
• Smile and dial. Customers would rather resolve a problem on the phone. More than half (56%) of customers say resolving a problem online requires a lot of effort, which is similar to the percentage who say the same about resolving a problem in the store, at 54%. Just 49% say resolving a problem over the phone was a similar hassle.

“Nobody wants to spend a lot of time trying to deal with an issue they shouldn’t have had in the first place, and with wireless providers getting so competitive about pricing, coupled with the migration from the two-year contract, there are too many options for customers to stay in bad wireless relationships,” said Peter Cunningham, technology, media & telecommunications practice lead at JD Power. “Customers believe carriers have a ways to go when it comes to reducing the amount of effort involved in problem resolution. But, if carriers focus on it, they will likely see churn decrease and profits increase. In particular, carriers should emphasize enhancing issue resolution via social media.”

Study Rankings

For full-service carriers, Verizon Wireless ranks highest with a score of 797. AT&T (796) ranks second and T-Mobile (795) ranks third. The segment average is 789.

For non-contract full-service carriers, Boost Mobile ranks highest with a score of 763. Virgin Mobile (755) ranks second and Cricket (752) ranks third. The segment average is 754.

For non-contract value carriers, Consumer Cellular ranks highest with a score of 864. Net10 (725) ranks second and Straight Talk (721) ranks third. The segment average is 743.

The 2017 U.S. Wireless Customer Care Full-Service Performance Study—Volume 2 and the 2017 U.S. Wireless Customer Care Non-Contract Performance Study—Volume 2 collectively surveyed 9,994 customers who contacted their carrier’s customer care department within the past three months. The studies were fielded from January through June 2017.

For more information about the JD Power 2017 U.S. Wireless Customer Care Full-Service Performance Study^SM—Volume 2 and the JD Power 2017 U.S. Wireless Customer Care Non-Contract Performance Study^SM—Volume 2, visit http://www.jdpower.com/resource/us-wireless-customer-care-performance-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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts

Geno Effler; 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/about-us/press-release-info

 

LG Ranks Highest in Customer Satisfaction in Multiple Kitchen and Laundry Segments, JD Power Finds

2017-07-25

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COSTA MESA, Calif.: 26 July 2017 — LG ranks highest in customer satisfaction in seven of the 11 kitchen and laundry appliance segments, according to the JD Power 2017 Kitchen Appliance Satisfaction Study^SM and the JD Power 2017 Laundry Appliance Satisfaction Study,^SM both released today.

According to the Association of Home Appliance Manufacturers (AHAM), the major appliance industry was up 3% in 2016 and is up 7% in June 2017 year to date. Aggressive pricing and promotions pushed this increase over the past 18 months as manufacturers and retailers battled for market share. Additionally, according to the Home Improvement Research Institute (HIRI), the consumer market for major household appliances is expected to reach $25.3billion in 2017 and $28.1 billion by 2021.

“Major appliance companies continue to be at the forefront of the industry with innovative products, features and styles. LG has clearly delivered on all these measures this year, delighting their customers,” said Greg Truex, senior director of the at-home practice at JD Power. “Competition in the market is extremely fierce, and LG and Samsung are really pushing the industry by adding features that appeal to the needs of consumers.”

In recognition of the omnichannel strategies being pursued by the top appliance manufacturers in conjunction with their retail partners, this year’s studies have been enhanced with pathway-to-purchase questions to better identify where consumers are shopping and how the customer experience is affected by the different paths they take to purchase.

Brand Rankings and Performance

LG: Seven Awards 

• LG ranks highest in all three laundry segments—front-load washer (861 on a 1,000-point scale), top-load washer (845) and clothes dryer (868)—as well as highest in the dishwasher segment (850), freestanding range segment (864), French door refrigerator segment (850) and top-mount freezer refrigerator segment (809).
• LG performs particularly well in four important factors: performance and reliability; ease of use; features; and styling/appearance.

Bosch: Three Awards

• Bosch ranks highest in two of the cooking appliances—cooktops (838) and wall ovens (840)—and shares the top rank in over-the-range microwaves (833).
• Bosch performs particularly well in the features, warranty and price factors across the three appliances.

Kitchen Appliance Satisfaction Study

Side-by-Side Refrigerators

Samsung (848) ranks highest in customer satisfaction with side-by-side refrigerators and performs particularly well in two factors: performance and reliability and styling/appearance. Samsung is followed in the rankings by KitchenAid and LG (839 each). KitchenAid performs particularly well in warranty while LG performs particularly well in features.

French Door Refrigerators

LG (850) ranks highest in customer satisfaction with French door refrigerators, performing particularly well in three factors: ease of use; performance and reliability; and styling and appearance. Samsung (846) follows in the rankings and performs particularly well in features and warranty.

Top-Mount Freezer Refrigerators

LG (809) ranks highest in customer satisfaction with top-mount freezer refrigerators and performs particularly well in two factors: ease of use and performance and reliability. Following LG in the rankings is Maytag (804).

Dishwashers

LG (850) ranks highest in customer satisfaction with dishwashers and performs particularly well in two factors: features and styling/appearance. Maytag (849) follows in the rankings and performs particularly well in performance and reliability and styling and appearance.

Freestanding Ranges

LG (864) ranks highest in customer satisfaction with freestanding ranges and performs particularly well in four factors: features; performance and reliability; price; and styling and appearance. Following LG in the rankings is Maytag (855).

Cooktops

Bosch (838) ranks highest in customer satisfaction with cooktops for a third consecutive year and performs particularly well in two factors: features and warranty. Following Bosch in the rankings is GE Appliances and Kenmore (832 each).

Wall Ovens

Bosch (840) ranks highest in customer satisfaction with wall ovens and performs particularly well in three factors: performance and reliability; price; and warranty. KitchenAid (834) follows in the rankings and performs particularly well in ease of use and styling and appearance.

Over-the-Range Microwaves

Bosch and KitchenAid (833 each) rank highest in customer satisfaction with over-the-range microwaves. Bosch performs particularly well in two factors—price and warranty—while KitchenAid performs particularly well in three factors: ease of use; features; and performance and reliability. Following Bosch and KitchenAid in the rankings is Kenmore (832).

Laundry Appliance Satisfaction Study

Top-Load Washers

LG (845) ranks highest in customer satisfaction with top-load washers, performing particularly well in three factors: features; performance and reliability; and styling and appearance. LG is followed in the rankings by Samsung (841).

Front-Load Washers

LG (861) ranks highest in customer satisfaction with front-load washers, performing particularly well in four factors: ease of use; features; performance and reliability; and styling and appearance. LG is followed in the rankings by Samsung (851).

Clothes Dryers

LG (868) ranks highest in customer satisfaction with clothes dryers, performing particularly well in ease of use; features; and performance and reliability. Following LG in the rankings is Samsung (857).

About the Studies

The Laundry Appliance Satisfaction Study and the Kitchen Appliance Satisfaction Study, now in their 12th and 13th years, respectively, measure customer satisfaction in 11 segments of major home appliances: clothes washers (front-load washers and top-load washers are measured separately); clothes dryers; dishwashers; cooking appliances (cooktops, freestanding ranges and wall ovens are measured separately); over-the-range microwaves; and refrigerators (French door refrigerators, side-by-side refrigerators and top-mount freezer refrigerators are measured separately).

The 2017 Laundry Appliance Satisfaction Study is based on more than 6,240 evaluations from customers who purchased clothes washers and/or clothes dryers during the past 12 months. The study was fielded in February through March 2017.

The 2017 Kitchen Appliance Satisfaction Study is based on more than 2,300 evaluations from customers who purchased dishwashers; more than 4,300 evaluations from customers who purchased cooking appliances; more than 2,225 evaluations from customers who purchased over-the-range microwaves; and more than 5,875 evaluations from customers who purchased refrigerators during the past 12 months. The study was fielded in February through March 2017.

For more information about JD Power solutions for the home improvement industry, visit http://www.jdpower.com/industry/home-improvement.

See the online press release at http://www.jdpower.com/pr-id/2017109.

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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts

Jillian Breska; Costa Mesa, Calif.; 714-481-9115; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

New Vehicle Retail Sales Pace to Decline for Fourth Consecutive Month

2017-07-26

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DETROIT: 27 July 2017 — The new vehicle retail sales pace in July is expected to decline for the fourth consecutive month, according to a forecast developed jointly by JD Power and LMC Automotive.

The seasonally adjusted annualized rate (SAAR) for retail sales in July is expected to be 14.1 million units, a decrease of 600,000 units from a year ago.  Actual retail sales in July are anticipated to reach 1,236,000 units, a 1.7% decrease (selling day adjusted) compared with July 2016.

“While the retail selling rate will post declines again in July, the larger concern remains the continued deterioration of key industry health indicators,” said Thomas King, vice president of PIN OEM operations, media & marketing at JD Power. “Manufacturers typically reduce incentive spending following the July 4 holiday, but this year elevated inventory levels, coupled with the sales slowdown, have compelled them to maintain aggressive discounts throughout July.”

Last year, industry incentive spending fell by 14% after the July 4 holiday.  In contrast, this year spending has remained at holiday levels throughout the month.  Average incentive spending per unit to date in July is $3,876 per unit, a record for the month, surpassing the previous high for the month of $3,597, set in July 2016.

The elevated inventory levels are reflected in slower turn rates for vehicles sitting on dealer lots.  Despite record discounts, the average new vehicle sold in July spent 72 days in inventory, the highest level since 2009. Furthermore, the utilization of extended loan terms continues to grow.  Loans of 84 months and longer are accounting for more than 6% of retail sales for the first time ever.

“The second half of the year will continue to present challenges to manufacturers as they navigate a hyper competitive and dynamic marketplace, while working to find the optimal mix of production cuts and discounting necessary to align supply, demand and inventory levels,” King said.

• The average new-vehicle retail transaction price to date is $30,772, a record for July. It surpasses the previous high of $30,730 set in July 2016.
• Despite record transaction prices for July, consumers are on pace to spend $38 billion on new vehicles this month, about $2 billion less than last year’s level.
• Average incentive spending per unit to date in July is $3,876 per unit, a record for July, and surpassing the previous high for the month of $3,597, set in July 2016. Spending on trucks and SUVs is $3,700, up $194 from last year. Spending on cars is $4,174, up $436.
• Incentives as a percentage of MSRP are at 10.8% so far in July, exceeding the 10% level for 12th time in the past 13 months.
• Trucks account for 63.2% of new-vehicle retail sales through July 23—the highest level ever for the month of July—making it the 13th consecutive month above 60%.
• Days to turn (the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer) remained at 72 through July 23. This is the highest level since July 2009 (80 days).
• Fleet sales are expected to total 202,700 units in July, down 1.2% from July 2016 on a selling day adjusted basis. Fleet volume is expected to account for 14.1% of total light-vehicle sales, up slightly from 14% in July 2016.

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said, “U.S. light vehicle demand appears to have leveled off right around 17 million units and we expect it to hover in this range for the balance of 2017. Under this backdrop, the auto industry is acting much more proactively than in the past to managing cooling sales. It is important, however, to not overreact once supply and demand is realigned, as most fundamentals—including the economy—remain supportive.”

LMC’s forecast for 2017 total light-vehicle sales is at 17.0 million units after a rounding adjustment down from 17.1 million units. The retail light-vehicle outlook stands at 13.8 million units, a 2.2% projected decline from 2016. Fleet volume is now expected to be down nearly 10% from 2016.

U.S. Retail SAAR— July 2016 to July 2017

(in millions of units)
Source: Power Information Network^® (PIN) from JD Power

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

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

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

 

JD Power Finds Medicaid Enrollees More Satisfied Than Commercial Health Plan Members

2017-07-28

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COSTA MESA, Calif.: 31 July 2017 — With 74 million Americans now receiving health coverage through Medicaid, the government program has become the single largest source of health insurance in the United States. According to the JD Power 2017 Managed Medicaid Special Report published today, Medicaid recipients are more satisfied with their coverage than traditional, commercial health plan members.

The inaugural study measures overall satisfaction with managed Medicaid organizations based on six factors (in order of importance): provider choice; coverage and benefits; customer service; cost; information and communication; and claims processing. Satisfaction is calculated on a 1,000-point scale.

Following are some of the key findings:

• Managed Medicaid customer satisfaction higher than commercial customers: Overall satisfaction with managed Medicaid organizations is 784, on average, which is 78 points higher than commercial health plan member satisfaction as measured by the JD Power 2017 Member Health Plan Study.^SM

• Provider choice a key driver of member experience: Unlike the commercially insured population, where the coverage and benefits factor is the key driver of customer satisfaction, Medicaid enrollees indicate provider choice as the most important factor of overall member experience.

• Cost remains barrier to care: More than four in 10 (42%) Medicaid managed care recipients put off getting the medical treatments they needed because of cost. Likewise, 40% avoided buying prescription medications due to cost.

• Not all states created equal: According to study findings,Medicaid recipients in states where a dominant regional plan or a plan that owns a health system have the easiest access to doctors and hospitals, underscoring the importance of building robust networks and focusing on coordination of care between providers. Iowa, Tennessee, Arizona and Indiana have the easiest access to doctors and hospitals, compared with the other states included in the study.

• Indiana raises out-of-pocket costs without compromising satisfaction: The controversial Healthy Indiana plan, which is the only one of its kind to require every recipient to contribute to a health savings account (HSA), has higher out-of-pocket expenditures than the national average, without a corresponding drop in cost satisfaction among recipients.

“With the future of Medicaid funding as uncertain as ever, it is critical for state Medicaid agencies and managed care organizations to understand the enrollee mindset,” said Valerie Monet, senior director of U.S. health insurance operations at JD Power. “While, on the whole, Medicaid managed care organizations are scoring relatively high marks for overall customer satisfaction, there are some significant challenges involving access to care and cost of care that have the potential to have a counterproductive effect on patient engagement, and, ultimately, population health.”

State Medicaid Agency Performance 
Directionally, the states with higher levels of satisfaction among Medicaid recipients are Iowa, Colorado and Arizona.

The 2017 Managed Medicaid Special Report is based on responses from 2,145 managed Medicaid health plan members in 36 states and Washington, D.C. The study was fielded in January-March 2017. Medicaid managed care plans evaluated in the study include and/or are operated by the following parent companies: Aetna, Anthem; BlueCare Tennessee; BlueShield of California; CalOptima; CareSource; Centene; EmblemHealth; Health Care Service Corporation (HCSC); HealthFirst; Horizon Blue Cross and Blue Shield of New Jersey; Humana; Independence Health; Inland Empire Health Plan; LA Care Health Plan; Meridian Health Plan; Molina Healthcare; NYS Catholic Health Plan; Partnership Health Plan of California; United Healthcare; University of Pittsburgh Medical Centers (UPMC); and WellCare Health Plans.

See the online press release at http://www.jdpower.com/pr-id/2017143.

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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; 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/about-us/press-release-info