Category: United States

Hands Off? Not Quite. Consumers Fear Technology Failures with Autonomous Vehicles

2017-04-17

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COSTA MESA, Calif.: 18 April 2017 — With the exception of Gen Y¹, all other generational groups are becoming more skeptical of self-driving technology, which poses a new challenge to car manufacturers and technology developers, according to the JD Power 2017 U.S. Tech Choice Study,^SM released today.

“In most cases, as technology concepts get closer to becoming reality, consumer curiosity and acceptance increase,” said Kristin Kolodge, executive director of driver interaction and HMI research at JD Power. “With autonomous vehicles, we see a pattern where trust drives interest in the technology and right now, the level of trust is declining.”

Compared with 2016, 11% more Gen Z consumers and 9% more Pre-Boomers say they “definitely would not” trust automated technology. However, similar to the 2016 study, consumers this year show great interest in collision protection and driving assistance technology. Six of the top 10 features that consumers were most interested in before learning the price—smart headlights, camera rear-view mirror, emergency braking and steering system, lane change assist, camera side-view mirrors and advanced windshield display—come from these two categories.

“Along with collision mitigation, there are many benefits to autonomous vehicles, including allowing those who are unable to drive in today’s vehicles to experience freedom of mobility,” Kolodge said. “Interestingly, though, 40% of Boomers do not see any benefits to self-driving vehicles. Automated driving is a new and complex concept for many consumers; they’ll have to experience it firsthand to fully understand it. As features like adaptive cruise control, automatic braking and blind-spot warning systems become mainstream, car buyers will gain more confidence in taking their hands off the steering wheel and allowing their vehicles to step in to prevent human error.”

Additional findings of the 2017 study include:                                                                        

• Generation gap for vehicle-controlled functions: When looking at technologies with the largest purchase intent gaps between the Gen Y/Gen Z and Boomer generations, younger consumers are far more comfortable with technologies that assume control of vehicle operating functions. Examples include allowing mobile devices to take control of infotainment systems; an in-vehicle artificial intelligence (AI)-based assistant; and autonomous driving and parking technologies.
• Not a matter of price: For all five of the technologies with the largest purchase intent gap, Gen Y/Gen Z purchase intent is greater than Boomers, who say they definitely/probably are interested in a feature even before they know the price.
• I’m going mobile: Gen Z has the highest interest in all alternative mobility types, including 50% indicating they are definitely/probably interested in mobility sharing/co-ownership²; 52% for journey-based ownership³; 56% for unmanned mobility⁴; and 56% for mobility-on-demand⁵.
• Consumer interest in emergency braking and steering system technology: Upcoming agreements between automakers and the government will require vehicles to have emergency braking—a foundation technology for autonomous driving—as a standard feature within five years. The 31% of consumers willing to pay $700 for the advanced version of this system (adds steering) is greater than the percentage of consumers who would pay for less expensive technologies like digital key at $250; dash camera at $300; and mobile system control at $400.
• Lukewarm on convenience: Consumers aren’t as enthusiastic about niche convenience technologies. Collision protection and driving assistance-related technologies comprise most of the technologies with the highest pre-price interest, while features in the entertainment and connectivity, and comfort and convenience categories show the lowest pre-price interest.
• Notable convenience exception: Gen Z consumers have a fairly high interest in digital key technology, which eliminates the need for a physical key or key fob and is replaced by a smartphone or smartwatch. A total of 40% indicate they definitely would like digital key technology on their next vehicle, and 58% are willing to pay $250 for it, compared with 28% among all consumers.

About the Study

The U.S. Tech Choice Study, now in its third year, examines consumer awareness, interest and price elasticity of various future and emerging technologies by vehicle make and consumer demographic. The major technology categories analyzed in the study are entertainment and connectivity; comfort and convenience; driving assistance; collision protection; navigation; and energy efficiency. Consumer interest in emerging concepts such as alternative mobility solutions, cybersecurity threats and trust in automated technologies also was explored.

The study was fielded in January-February 2017 and is based on an online survey of more than 8,500 consumers who purchased/leased a new vehicle in the past five years.

For more information about the 2017 U.S. Tech Choice Study, visit http://www.jdpower.com/resource/us-tech-choice-study.

See the online press release at http://www.jdpower.com/pr-id/2017041.

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.

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

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¹ JD Power defines the generations as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); Gen Z (1995-2004).

² Mobility sharing/co-ownership:Vehicle ownership expenses and usage are shared within a group of people with the goal of optimizing expenses and utilization.

³ Journey-based ownership:Flexible-use vehicle fleet ownership based on the user’s needs at a fixed price.

⁴ Unmanned mobility:Vehicle drives on its own to predetermined destinations.

⁵ Mobility-on-demand: Ride-sharing via a mobile app request (e.g., Uber, Lyft).

 

 

Nearly Half of Malaysia Customers Don’t Understand All Elements of Their Auto Finance Deal

2017-04-20

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KUALA LUMPUR, Malaysia: 25 April 2017 — Nearly half (43%) of Malaysia new-car buyers do not fully understand the terms of their auto finance product, according to the inaugural JD Power 2017 Malaysia Auto Consumer Finance Study^SM. 

The study measures customer satisfaction with their automotive finance provider by examining six key factors (in order of importance): interaction; onboarding; billing & payment; finance deal; origination; and finance advisor. 

“With less than half of auto finance customers claiming the finance arrangement actually met their requirements, there is a clear need for the industry to become more customer-centric,” said Anthony Chiam, practice leader of service industries at JD Power. “Auto finance is a long-term commitment and it’s crucial that dealership salespeople spend sufficient time to clearly explain the services, terms and fees related to each customer.” 

Satisfaction levels during the purchasing process vary greatly between customers whose finance application was handled by a finance advisor vs. a car salesperson. On a 1,000-point scale, a finance advisor has an average score of 777, compared with a salesperson’s average score of 735. 

Among customers who selected an Islamic auto finance product, more than 30% say they “definitely would” use the same finance provider for their next purchase, compared with 22% among customers who purchased a conventional auto finance product. 

“Malaysia’s Islamic finance industry has been growing rapidly over the past 30 years,” Chiam said. “Higher customer satisfaction levels from within Islamic auto financing underscore the industry’s impressive and continuous expansion.” 

The following are additional findings of the study:

• Higher satisfaction drives loyalty: With a country average of two cars per household, 55% of customers who were delighted with their experience (overall satisfaction scores of 852 or higher) say they “definitely would” use the same provider for their next auto finance product, compared with only 5% of those who were dissatisfied (650 or below).

• Islamic auto finance products: Overall satisfaction is higher among customers buying such products than among those buying conventional auto finance products (758 vs. 744, respectively).

• Finance company vs. dealer financing: Nearly one-third (32%) of new-car buyers who purchase a finance product directly from a finance company are more satisfied than those going through a dealer to arrange financing (759 vs. 742, respectively). 

Study Rankings 

CIMB Bank ranks highest with an overall satisfaction score of 772. CIMB Bank performs highest across all six factors.

Maybank ranks second (759), performing particularly well in the onboarding and billing & payment factors. AM Bank ranks third (757), performing well in the finance advisor factor.

The 2017 Malaysia Auto Consumer Finance Study is based on responses from 2,683 new-car buyers who financed a vehicle in the past 12 months. The study was fielded in January-March 2017.

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

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

About JD Power in the Asia Pacific Region

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

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

 

 

New Vehicle Retail Sales Match 2016 levels, but Incentives Rise Considerably

2017-04-24

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DETROIT: 25 April 2017 — New vehicle retail sales are expected to remain on pace with last year, but incentive spending is at record levels through April, according to a forecast developed jointly by JD Power and LMC Automotive.

Retail sales in the month of April are anticipated to reach 1,169,700 units, a 1.3% increase compared with April 2016 on a selling day adjusted basis.  Year-to-date, retail sales in 2017 are up 0.3% compared to the same period a year ago.

Deirdre Borrego, senior vice president of automotive data and analytics at JD Power, said: “While industry retail sales pace remains high, it is being powered by elevated levels of incentive spending which pose a serious threat to the long-term health of the industry. The total value of incentives used to sell new vehicles has increased by $1.9 billion through the first four months of the year.”

Total incentive spending in the marketplace stands at $16.4 billion through April, up 13% from last year. On a per unit basis, spending for the average new vehicle through April was $3,814, up $460 from a year ago.  On trucks and SUVs, spending was $3,740, up $578, while on cars, spending was $3,938, up $308.

Despite record incentive levels, average days to turn continues to rise. Nearly 30% of vehicles sold in 2017 sat on dealer lots for over 90 days, up from 27% last year. “With flat retail demand and inventory at record levels, manufacturers will continue to face a difficult choice between maintaining elevated incentives or making production cuts,” Borrego said.

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

	April 20171	March 2017	April 2016
New-Vehicle Retail Sales	1,169,700 units (1.3% higher than April 2016)2	1,226,608 units	1,199,077 units
Total Vehicle Sales	1,476,100 units (1.8% higher than April 2016) 2	1,553,936 units	1,505,521 units
Retail SAAR	14.2 million units	13.0 million units	14.3 million units
Total SAAR	17.5 million units	16.6 million units	17.5 million units

¹Figures cited for April 2017 are forecasted based on the first 13 selling days of the month.
²The percentage change is adjusted based on the number of selling days in the month (26 days in April 2017 vs. 27 days in April 2016).

• The average new-vehicle retail transaction price to date in April is $31,380, a record for the month, surpassing the previous high for the month of $31,228 set in April 2016.
• Average incentive spending per unit through April 16 is $3,499, a record for the month, and surpassing the previous high for the month of $3,393 set in April 2009.
• Trucks account for 61.8% of new-vehicle retail sales so far in April—the highest level ever for the month of April—making it the 10th consecutive month above 60%. 
• Days to turn, the average number of days a new vehicle sit on a dealer lot before being sold to a retail customer, reached 70 in the first 13 days of April. This is the highest level for any month since July 2009 (80).
• Fleet sales are expected to total 306,400 units in April, up 3.8% from April 2016 on a selling day adjusted basis. Fleet volume is expected to account for 20.8% of total light-vehicle sales, a slight increase from 20.4% in April 2016.

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said: “Retail auto sales are performing as expected but non-retail sales have been slightly lower, which is the primary reason for total sales being down 1.4% year-to-date. But this is no time to hit the panic button. There’s a lot of runway left in the year and many variables. Economic and policy factors remain important in setting direction for the auto sector in the near-term, however, given the year-to-date performance, risk assessment is looking at internal factors like used car pricing, lease penetration and the interplay between vehicle inventory and incentives.”

As the outlook for 2017 is realigned based on current factors, LMC is taking the edge off the forecast for total light-vehicle sales in 2017, with a reduction of 40,000 units to 17.5 million units, now a decline of 0.1% from 2016. The forecast for retail light-vehicle sales remains at 14.2 million units, an increase of 0.2% from 2016.

U.S. Retail SAAR—April 2016 to April 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

 

Broad-Brush View: Customer Satisfaction Driven by Paint Variety, Stain Durability

2017-04-26

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COSTA MESA, Calif.: 27 April 2017 — An impressive palette of colors and finishes has the greatest influence on satisfaction among consumers buying paint, while satisfaction among those buying outdoor stains is more influenced by the product’s durability, according to the JD Power 2017 Paint Satisfaction Study,^SM released today.

“Colors, colors and more colors are what consumers want when it comes to interior and exterior paints,” said Greg Truex, senior director of the at-home practice at JD Power. “The myriad choices doesn’t confuse paint shoppers; rather, it helps them zero in on the color they think is best. Satisfaction among exterior stain customers comes after the purchase when they judge the product’s durability, which mostly encompasses longevity of finish and weather resistance.”

The study measures customer satisfaction in the $12 billion¹ interior and exterior paint and stain consumer market. In the interior paint, exterior paint and exterior stain segments, satisfaction is measured across six factors (in alphabetical order): application; design guides; durability; price; product offerings; and warranty/guarantee. In the paint retailer segment, satisfaction is measured across five factors (in alphabetical order): merchandise; price; sales and promotions; staff and service; and store facility. Satisfaction is measured on a 1,000-point scale.

Following are some of the key findings of the 2017 study:

• Retail and sales associate engagement: More than four-fifths (84%) of purchasers visited a retail store after deciding to purchase paint/stain. Of those purchasers, only 35% spoke with a sales associate at length about the products. Satisfaction is significantly higher among purchasers who spoke with a sales associate at length rather than briefly or not at all (849 vs. 817, respectively).
• Salespeople make a difference: According to the study, the three key performance indicators (KPIs) that have the highest effect on satisfaction are (in order of importance) sales staff greets customer promptly; sales staff listens carefully to questions; and sales staff is professionally dressed. There is a significant association with likelihood to repurchase and recommend and the number of top KPIs met. When each of the top three KPIs are met, 59% of customers say they “definitely will” repurchase the brand vs. 27% when two KPIs are met and 18% when only one KPI is met.
• Satisfaction drives loyalty: Among delighted customers (overall satisfaction scores of 901 and above), 78% say they “definitely will” repurchase the brand, compared with the study average of 44%. Additionally, 80% of delighted customers say they “definitely will” recommend the brand to others, compared with the study average of 46%.
• Delightful experience influences recommendations: Among delighted customers, the average number of positive recommendations is 3.8, compared with the study average of 2.3.

Interior Paint Rankings

• Sherwin-Williams (846) ranks highest in customer satisfaction among interior paint brands and performs particularly well in the application; design guides; and product offerings factors.
• BEHR (843) ranks second, performing highest in application and durability. Benjamin Moore and Dutch Boy (840 each)rank third in a tie.

Exterior Paint Rankings

• Valspar (848) ranks highest in customer satisfaction among exterior paint brands, performing particularly well in the design guides and product offerings factors.
• Sherwin-Williams (846) ranks second, performing highest in application and durability. Benjamin Moore and Dutch Boy (845 each)rank third in a tie.

Exterior Stain Rankings

• Benjamin Moore (820) ranks highest in customer satisfaction among exterior stain brands, performing particularly well in the durability and warranty/guarantee factors.
• Sherwin-Williams (817) ranks second, performing highest in application; design guides; and product offerings. Royal (Ace) (815)ranks third, performing highest in price.

Paint Retailer Rankings

• Ace Hardware (864) ranks highest in customer satisfaction among paint retailers and performs particularly well in the staff and service and price factors.
• Sherwin-Williams (857) ranks second, performing highest in merchandise and store facility. Menards (846)ranks third, performing highest in price and sales and promotions.

The 2017 Paint Satisfaction Study is based on responses from 8,758 customers who purchased and applied interior paint, exterior paint and/or exterior stain in the previous 12 months. The study was fielded in February-March 2017.

For more information about the JD Power Paint Satisfaction Study, visit

http://www.jdpower.com/resource/us-paint-satisfaction-study.

See the online press release at http://www.jdpower.com/pr-id/2017046.

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.

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

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¹Source: The Home Improvement Research Institute

 

Digital, Branch, Drive-Through or ATM? Yes, Please! Say Bank Customers in JD Power Study

2017-04-26

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Costa Mesa, Calif.: 27 April 2017 — As retail banks continue to brace for the digital future, branches are still having a significant effect on customer satisfaction across all customer age groups, according to the JD Power 2017 U.S. Retail Banking Satisfaction Study,^SM released today.

The study finds that overall retail bank satisfaction is significantly higher among customers who have visited a branch within the past 12 months vs. those who have only used digital channels. Within the closely watched Millennial¹ age group (those born from 1982-1994), satisfaction is highest when bank customers use both branch and digital banking channels.

“There is no question that banks need to get the digital experience right in order to attract and retain customers, however, the branch continues to play an important part of the overall customer experience,” said Jim Miller, senior director of banking at JD Power. “The trend is particularly noteworthy among Millennials who represent the future of banking, and consistently demonstrate that overall satisfaction is higher among customers who use both the branch and mobile banking. Banks can’t choose between the two channels; rather, they must focus on how the two work together.”

Following are key findings of the 2017 study:

• Rise of retail banking omnivore: More customers than ever are using mobile banking (49% of Millennials, 31% of Gen X and 16% of Boomers). Despite this widespread adoption of the digital channel, 71% of all bank customers visited the branch an average of 14 times over the past year. Among Millennials, 71% used the branch, averaging 11 visits in the past year.
• Branches still matter: Across all customers in the study, overall satisfaction among those who visited a bank branch within the past 12 months is 27 index points higher (on a 1,000-point scale) than among those who did not visit a branch (824 vs. 797, respectively). Among Millennials, overall satisfaction among those who used the branch and mobile is 20 index points higher than among those who used the branch only and 37 points higher than among those who used mobile only. Additionally, 78% of new accounts are opened in the branch.
• Mobile payments pose disruptive threat: Customer satisfaction, overall brand image and retention metrics are higher among customers who have a mobile payment service linked to their bank account. The trend is most pronounced among the emerging affluent segment of Millennial customers with incomes above $80,000, among whom 64% currently have mobile payment services linked to their accounts.
• Digital problem resolution is key: Unsuccessful problem resolution is highly correlated with low levels of satisfaction and high levels of customer attrition. Overall satisfaction among customers whose problem was not resolved is 564 points. Further, only 20% of these customers say they were likely to reuse that bank. When the problem is resolved, satisfaction scores jump to 812 and loyalty increases to 58%. While the branch has been the traditional channel for handling problems, younger customers prefer to resolve problems online or via social media.

“It’s becoming increasingly clear that banks that can get the balance right between digital and personal interactions will be those that build the strongest customer relationships,” Miller said. “The Millennial generation is a great source of insight into the trend, but it’s one that’s larger than any single generation: all customers want choice. They want to choose when, where and how they conduct their banking, and banks must continue to meet that need by offering consistent, tailored experiences regardless of the channel.”

The study measures customer satisfaction with banks in 11 regions. Study results by region are:

California: BBVA Compass (846)
Florida: Fifth Third Bank (849)
Mid-Atlantic Region: Huntington National Bank (849)
Midwest Region: Wintrust Community Bank (843)
New England Region: Rockland Trust (858)
North Central Region: Huntington National Bank (849)
Northwest Region: Banner Bank (840)
South Central Region: U.S. Bank (854)
Southeast Region: United Community Bank (852)
Southwest Region: BancFirst (866)
Texas: Frost Bank (867)

About the Study

The U.S. Retail Banking Satisfaction Study, now in its 12^th year, is the longest-running and most in-depth survey of the U.S. retail banking industry. The study measures satisfaction in six factors (listed in alphabetical order): account information; channel activities; facility; fees; problem resolution; and product offerings. The channel activities factor includes six subfactors (listed in alphabetical order): ATM; branch; call center; IVR; mobile; and website. Satisfaction is measured on a 1,000-point scale.

The 2017 study is based on responses from more than 78,000 retail banking customers of 136 of the largest banks in the United States regarding their experiences with their retail bank, and was fielded from April 2016 to February 2017.

For more information about the U.S. Retail Banking Satisfaction Study, visit http://www.jdpower.com/resource/us-retail-banking-satisfaction-study.

For more information about Dependability Ratings, visit https://www.jdpower.com/cars/ratings/dependability.

See the online press release at http://www.jdpower.com/pr-id/2017045.

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.

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

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¹ JD Power defines the generations as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); Gen Z (1995-2004). Millennials are defined those born between 1982-1994.

 

Facing Modest Rate Increases, Auto Insurers Increase Reliance on Service, Agents, JD Power Finds

2017-04-30

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Costa Mesa, Calif.: 1 May 2017 — Amid a second straight year of stagnant auto insurance shopping activity and modest rate increases, auto insurance companies have grown increasingly reliant on great customer service, personalized advice and strong agents to win over their customers, according to the JD Power 2017 U.S. Insurance Shopping Study,^SM released today.

With average premiums increasing by a modest 2-3% annually, new insurance shopping rates flat and new customer acquisition rates unchanged, auto insurers are faced with the challenge of resisting commoditization. The study finds that as auto insurers struggle to compete on price, they are being forced to differentiate based on factors such as brand reputation, agent recommendations, product and service to drive new business sales. Communication remains critical, as the key performance indicator (KPI) that has the greatest influence on customer satisfaction in this year’s study is ensuring that customers completely understand their coverage.

“The auto insurance industry is at an inflection point where customer patterns and behaviors are on the verge of shifting,” said Greg Hoeg, vice president of U.S. insurance operations at JD Power. “To survive this period of price stagnation, insurers must develop strategies to be able to better differentiate not just to acquire new customers, but also to acquire customers with desirable risk profiles in order to maintain profitability.”

Key findings of the 2017 study include:

• Auto insurance market shopping stagnates: This year sees a continuation of the slowdown in shopping activity that was first noted in 2016. Average premium rates have increased just 2-3%; customer acquisition rates are flat; new quote volume is flat; and the total number of insurance shoppers is largely unchanged from the last year.

• Price is more influential in brand consideration and quoting: Despite stagnant pricing, price remains a driver in every stage of the acquisition process, meaning insurers must always take it into consideration to be competitive in the market. For example, the influence of price on a shopper’s decision to consider and quote a brand has increased 5 percentage points in each of the past two years. As a result, the importance of price has surpassed that of a good past service experience when a shopper considers or quotes a brand.

• Agents continue to play key role: Agent recommendations have become an increasingly important driver of customer consideration and quote generation. Shoppers are also increasingly reliant on agent recommendations when considering and quoting insurers, compared to 2015 (a 9- and 10-percentage point increase, respectively).

• Communication is critical driver of satisfaction: The KPIs affecting the purchase experience index the most are ensuring the customer completely understands coverage; providing guidance and/or tools for selecting the right coverage; and ensuring customers understand premium calculations.

Study Rankings

Erie Insurance ranks highest among auto insurers in providing a satisfying purchase experience, with a score of 879. This marks the fifth consecutive year Erie Insurance has ranked highest in the study. American Family ranks second (869); The Hartford third (861); Automobile Club Group fourth (852); and Amica Mutual fifth (850).

Now in its 11^th year, the U.S. Insurance Shopping Study measures auto insurance shopping, purchase behavior and purchase experience satisfaction among customers who recently purchased insurance. Satisfaction is measured in three factors (in order of importance): price, distribution channel and policy offerings.

The study is based on responses from more than 16,400 shoppers who requested an auto insurance price quote from at least one competitive insurer in the past nine months and includes more than 50,000 unique customer evaluations of insurers. The study was fielded in April, July and October 2016 and January 2017.

For more information about the U.S. Insurance Shopping Study, visit http://www.jdpower.com/resource/jd-power-us-insurance-shopping-study.

See the online press release at http://www.jdpower.com/pr-id/2017050.

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.

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

 

Despite Inflammatory Incidents, Airline Customer Satisfaction Keeps Improving, JD Power Finds

2017-05-09

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COSTA MESA, Calif.: 10 May 2017 — Lower fares, better on-time performance, fewer lost bags and the lowest bump rate ever recorded have contributed to steady improvement in customer satisfaction with North American airlines. According to the JD Power 2017 North America Airline Satisfaction Study,^SM released today, overall customer satisfaction with airlines has reached its highest level ever, continuing a trend that now stretches five consecutive years.

“It’s impossible to think about airline customer satisfaction without replaying the recent images of a passenger being dragged from a seat, but our data shows that, as a whole, the airline industry has been making marked improvements in customer satisfaction across a variety of metrics, from ticket cost to flight crew,” said Michael Taylor, travel practice lead at JD Power. “As recent events remind us, however, airlines have significant room for improvement. Airlines still rank among the bottom tier of most service industries tracked by JD Power, far lower than North American rental car companies or hotels.”

Scores are higher this year than one year ago in all of the study factors that measure customer satisfaction.  This performance contributes to the steady improvement in customer satisfaction with North American airlines.

Following are some of the key findings of the 2017 study:

• Overall satisfaction reaches for the sky: Overall satisfaction with the airline industry in 2017 increases by a significant 30 points to 756 (on a 1,000-point scale), continuing a trend of steady performance increases that began in 2013. Both traditional and low-cost carriers have shown improvement, with the traditional carriers continuing to close the satisfaction gap with low-cost carriers (740 vs. 784, respectively).
• Lower costs, fewer problems, satisfaction with crews drive improvement: The average North American airfare fell 8.5% in 2016 to $349, helping to drive satisfaction levels in the cost and fees factor in the study to the highest level since 2006. Improved on-time performance, fewer lost bags, historically low bump rates and high scores for flight crews also contribute to the overall increase in airline customer satisfaction.
• Social media is feedback tool of choice: Among business travelers, 21% posted a comment about their airline experience on social media, while 8% of leisure travelers did the same. It is worth noting that nearly three-fourths of social media comments are described as “positive” by those posting. The most commonly used social media platforms are Facebook (81%) and Twitter (41%). When an airline responds to any social media post—whether it’s positive or negative—there is a noteworthy 121-point lift in passenger satisfaction.
• “Ladies and gentlemen, the overhead bins are full…”: After a slight dip in 2016, passenger problems with overhead storage has become more common, with 14% of passengers in 2017 reporting this as an issue on their flight. Satisfaction among flyers having difficulty with overhead storage is 82 points lower than among those who don’t have difficulty.  The problem is inversely related to age, as travelers in younger generations are more likely to experience a problem with overhead storage than are older travelers.
• Bumping occurs infrequently—but significantly affects satisfaction: Although instances of denial of boarding and re-booking to another flight (bumping) have reached historic lows in frequency, they have the greatest negative influence on overall satisfaction. However, when there are delays, such as those caused by weather or mechanical issues, satisfaction levels fall by 101 points when a traditional carrier is delayed and by 59 points when a low-cost carrier is delayed.

Study Rankings

Among traditional carriers, Alaska Airlines ranks highest for the 10th consecutive year, with an index score of 765. Alaska Airlines performs particularly well in all seven factors of the study. Delta Air Lines ranks second (758), improving in all seven factors.

Among low-cost carriers, Southwest Airlines ranks highest for the first time with a score of 807, performing particularly well in all seven factors. JetBlue Airways ranks second (803), improving in six of the seven factors.

The North America Airline Satisfaction Study, now in its 13^th year, measures passenger satisfaction with North American airline carriers based on performance in seven factors (in order of importance): cost & fees; in-flight services; aircraft; boarding/deplaning/baggage; flight crew; check-in; and reservation. Satisfaction is calculated on a 1,000-point scale.

The study measures passenger satisfaction among both business and leisure travelers, and is based on responses from 11,015 passengers who flew on a major North American airline between March 2016 and March 2017. The study was fielded between April 2016 and March 2017.

For more information about the North America Airline Satisfaction Study, visit http://www.jdpower.com/resource/jd-power-north-america-airline-satisfaction-study

For more information about Dependability Ratings, visit https://www.jdpower.com/cars/ratings/dependability.

Join the conversation on social media using #AirlineStudy and follow JD Power on Facebook, Twitter and LinkedIn.

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.

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

 

Despite Slow Start, 2017 Might be Another Record Year for Auto Industry

2017-01-26

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DETROIT: 27 Jan.  2017 — Following a strong close to 2016, January’s retail new-vehicle seasonally adjusted annualized sales rate (SAAR) is expected to slow to 13.9 million units in 2017, down 200,000 units from last year, according to a forecast developed jointly by JD Power and LMC Automotive.

U.S new-vehicle retail sales in January are expected to reach 874,400 units, a 2.0% decline compared with January 2016, while total light-vehicle sales are expected to reach 1,125,900 units, a 1.8% decline.

“With sales posting impressive gains at the end of December, the slow start to January was not unexpected,” said Deirdre Borrego, senior vice president of automotive data and analytics at JD Power. “While this year will mark the first time that the industry has started off with a retail sales decline since 2010, the retail SAAR remains robust. The challenges for the industry remain maintaining profitability while coping with high inventory levels and elevated incentives, which continue to rise year over year.”

Through the first 10 days of January, incentive spending per unit was $3,614, down $387 from December ($4,001) but up $232 from January 2016 ($3,382).

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

	January 20171	December 2016	January 2016
New-Vehicle Retail Sales	874,400 units (-2.0% lower than January 2016)	1,392,522 units	892,119 units
Total Vehicle Sales	1,125,900 units (-1.8% lower than January 2016)	1,687,154 units	1,146,483 units
Retail SAAR	13.9 million units	15.3 million units	14.1 million units
Total SAAR	17.3 million units	18.4 million units	17.6 million units

¹Figures cited for January 2016 are forecasted based on the first 16 selling days of the month.

• Fleet sales are expected to total 251,600 units in January, down 1.1% from January 2016. Fleet volume is expected to account for 22% of total light-vehicle sales, the same level as in January 2016.
• The average new-vehicle retail transaction price to date in January is $31,473, a record for the month, and surpassing the previous high of $30,826 set in January 2016.
• With record transaction prices for the month offsetting slightly lower absolute retail sales volumes, consumers are on pace to spend $27.5 billion on new vehicles in January, on par with last year’s level but slightly behind the record high of $28.3 billion set in January 2015.
• Trucks account for 63.3% of new-vehicle retail sales so far in January—the highest level ever for the month of January. However, truck sales mix is down slightly from December’s all-time record level of 64.4%.

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said: “After an overheated close to 2016 and the increased likelihood of deregulation and fiscal stimulus from the Trump administration driving the economy higher, we now expect 2017 to be another record year in U.S. auto sales, though there is a lot of runway before the year is complete. While there are many variables to consider this year, one area of caution is the large number of lease maturities repopulating the used-car market. It creates demand for a vehicle, but also more used-vehicle options to compete with the new-vehicle market.”

LMC is forecasting total light-vehicle sales in 2017 to be at 17.6 million units, an increase of just 0.1% from 2016. Retail light-vehicle sales are expected to reach 14.1 million units in 2017, essentially flat from 2016.

U.S. Retail SAAR—January 2016 to January 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

 

Manufacturer Mobile Websites Outperform Desktop Websites, on Average, While OEM Performance Varies across Both Platforms

2017-01-30

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COSTA MESA, Calif.: 30 Jan. 2017 — Manufacturers offer a higher level of usability for researching a new vehicle via smartphone than ever before, according to the newly redesigned JD Power 2017 Manufacturer Website Evaluation Study Cross Device^SM—Winter, released today.

Overall satisfaction averages 825 for the smartphone platform, compared with 816 for desktop, based on a 1,000-point scale. Satisfaction is significantly higher among smartphone shoppers than among desktop shoppers, respectively, for appearance (847 vs. 834); navigation (821 vs. 814); and information/content (817 vs. 809).

“Manufacturers have put substantial effort into making the vehicle research experience rewarding on smaller screens and it is paying off,” said Thomas King, vice president of PIN OEM operations, media & marketing at JD Power. “With three-fourths of sites now designed to be responsive and/or adaptive, vehicle shoppers have increasing access to robust content that is appropriately tailored for the particular device or devices that they choose to use.”

Responsive site adoption by vehicle manufacturers continues to grow. Since 2014, the share of responsive and/or adaptive OEM sites has nearly tripled, from 27% in 2014 (9 of 33 sites) to 76% this year (25 of 33). Becoming more responsive, though, does not necessarily lead to higher satisfaction.

The study shows that for smartphone, sites designed to be responsive underperform, compared with traditional sites (823 overall satisfaction vs. 831, respectively). Satisfaction with navigation and information/content on responsive sites is significantly lower among smartphone shoppers than among desktop shoppers. However, among desktop shoppers, responsive sites generate higher satisfaction overall, compared with traditional sites (820 vs. 807), as well as higher satisfaction across all measures and factors included in the study.  

The cross device performance of responsive sites varies greatly, with many sites underperforming on one device versus the other. Historical study data has shown that of the sites that have recently been redesigned to be more responsive, speed and/or navigation measures usually experience the biggest drop after initial implementation. The responsive sites that have been live since 2014 are among the highest performers due to their improvements over time, particularly in satisfaction with speed of site. This trend indicates that while there is a learning curve when designing responsive sites, sites can increase shopper satisfaction by continuously improving their designs.

Following are additional key findings of the 2017—Winter study:

• Among all measures in the study, information/content drives the highest overall satisfaction (32% on desktop, 29% on smartphone).
• Shopping for price-related information is the least satisfying task among shoppers (784 for desktop, 797 for smartphone).
• Among shoppers in all generational groups, those in Gen Y[1]  have the highest levels of website satisfaction across all devices (847 for desktop, 845 for smartphone, 858 for tablet).

Study Rankings

Land Rover (855) ranks highest in overall desktop website satisfaction, followed by Infiniti (842) and Porsche (842). Overall satisfaction with automotive desktop websites averages 816.

Cadillac (852) ranks highest in overall smartphone website satisfaction, followed by Hyundai (844) and Jaguar (844). Overall satisfaction with automotive smartphone websites averages 825.

About the Study

The 2017 Manufacturer Website Evaluation Study Cross Device (MWESxD) is a semiannual study. Now in its 18th year, the study measures the usefulness of automotive manufacturer websites during the new-vehicle shopping process by examining four key measures: information/content, appearance, navigation and speed. Satisfaction is calculated on a 1,000-point scale.

The 2017 Winter study is based on responses from more than 12,000 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded Nov. 1-21, 2016.

Media Relations Contact

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

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

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

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Wireless Customers with Unlocked Phones More Satisfied with Customer Care Process Despite Experiencing Higher Contact Rates

2017-02-01

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COSTA MESA, Calif.: 2 Feb. 2017 — As the number of customers with unlocked cellphones (phones that can be transferred to other carriers) increases, their frequency of service contacts also increases, and their satisfaction improves according to the JD Power 2017 U.S. Wireless Customer Care Full-Service Performance Study^SM—Volume 1 and the JD Power 2017 U.S. Wireless Customer Care Non-Contract Performance Study^SM—Volume 1, both released today.

Unlocked mobile phones are becoming more popular amid the elimination of service contracts and the high level of price-based competition among carriers. The incidence of unlocked phone ownership has grown by three percentage points from the 2016 Full-Service Study—Vol. 2 among phone owners who had a customer care contact in the past three months. The advantage of having an unlocked mobile phone allows the subscriber to switch carriers without financial penalty. However, the uptick in unlocked phone ownership contributes to more customer service contacts in all channels. On average, customers with unlocked phones had 4.4 phone contacts in the past three months vs. 1.6 among those with locked phones; similarly, customers with unlocked phones had 3.3 in-store contacts vs. 0.9 among those with locked phones, and 3.1 online contacts vs. 0.9 among those with locked phones.

Billing issues are the primary reason for the higher number of customer care contacts among those with unlocked phones. Among unlocked phone owners who had a phone contact, 60% were due to a billing issue vs. just 31% among those with a locked phone. Similarly, 59% of unlocked phone customers who had an in-store contact did so because of a billing issue vs. just 21% of locked phone customers.

“Many customers prefer unlocked phones because they better enable them to shop around for the best deal and switch carriers,” said Kirk Parsons, senior director and technology, media & telecom practice leader at JD Power. “Because customers with unlocked phones tend to be relatively price conscious, it makes sense that they are highly sensitive to billing issues and contact their carrier about them relatively frequently. However, despite these higher incidence rates, owners of unlocked phones have higher overall satisfaction with their customer care experience.”

Now in their 15th year, these semiannual studies examine how well wireless carriers provide customer service via the following contact channels: phone, which consists of two sub-channels (automated response system (ARS), then customer service representative (CSR) and ARS only); walk-in (retail store); and online (website, online chat and social media). The studies measure satisfaction with each contact method and analyze processing issues, such as the efficiency of problem resolution and the duration of hold times. Satisfaction is calculated on a 1,000-point scale.

Study Rankings

AT&T ranks highest among wireless full-service carriers in customer satisfaction, with an overall score of 827. AT&T performs particularly well in the walk-in (retail store) and online channels, and performs above the full-service average in these channels, as well as in the ARS Only channel.

Consumer Cellular ranks highest among wireless non-contract carriers, scoring 871. Consumer Cellular performs above the non-contract average in all four service channels and achieves an especially high score in the ARS, then CSR channel.

Additional key findings of the 2017 studies include:

• Wireless care satisfaction improves for full-service but declines for non-contract: Overall satisfaction among wireless full-service customers is 814, an improvement of 10 points from the 2016 Full-Service Study—Vol 2. Satisfaction among non-contract wireless customers is 756, a decline of 5 points from the 2016 Non-Contract Study—Vol 2.
• Contact incidences rise for most contact types: The percentage of customers who contacted their carrier using only the phone automated response system has risen to 34% from 29% last volume; the percentage who contacted their carrier in a retail store has increased to 55% from 53%; and the percentage who contacted their carrier online has risen to 49% from 47%. In contrast, the percentage who spoke to a phone customer service representative has declined to 39% from 42% last volume.

The 2017 U.S. Wireless Customer Care Full-Service Performance Study—Volume 1 is based on responses from 8,135 full-service wireless customers, and the 2017 U.S. Wireless Customer Care Non-Contract Performance Study—Volume 1 is based on responses from 3,275 non-contract wireless customers. The studies are based on the experiences of current customers who contacted their carrier’s customer care department within the past three months. The studies were fielded from July through December 2016.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those 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.

Media Relations Contact

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

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