Category: United States

Automotive Service Quality Rises Along with Overall Customer Satisfaction, JD Power Finds

2017-03-15

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COSTA MESA, Calif.: 16 March 2017 — Quality of automotive service continues to show significant improvement and is driving an increase in overall customer satisfaction, according to the JD Power 2017 U.S. Customer Service Index (CSI) Study,^SM released today.

Service quality scores account for the greatest improvement, rising to 809 (on a 1,000-point scale) from 782 in 2015, when the study was redesigned. The other four measures—service advisor, service initiation, service facility and vehicle pick-up—all show improvement from 2015 levels. Overall customer service is 816, up from 802 over the same period.

The study measures customer satisfaction with service at a franchised dealer or independent service facility for maintenance or repair work among owners and lessees of 1- to 5-year-old vehicles.

“The quality of work—doing the job right the first time—can noticeably affect customer satisfaction and loyalty, but it shouldn’t be viewed in a vacuum,” said Chris Sutton, vice president, U.S. automotive retail practice at JD Power. “Proactive communication with the customer, especially while the car is being serviced, is one element that has a direct influence on loyalty.”

The study shows that among customers who are contacted by phone, 55% say they “definitely will” return for paid service. When receiving text message updates, that loyalty factor jumps to 67%.  Additionally, customers’ preference for communicating via text has increased 3-6% across all generational categories since 2015. More than four in 10 (41%) Gen Y¹ and Gen X customers now cite this preference, as do 25% of Boomers and 10% of Pre-Boomers.

“It’s not surprising to see the preference for receiving updates through text messages continue to rise, but only 3% of customers indicate they receive text message updates,” Sutton said. “Correcting that disconnect by adding more text message capability should be a priority with a service operation.”

Additional key findings of the 2017 study include:

• Service advisor scores big: The highest level of satisfaction is in service advisor, with a score of 835. This is followed by service initiation (832); vehicle pick-up (810); service quality (809); and service facility (794).
• Technology affects satisfaction: Increases in the use of tablets by service advisors and online scheduling tend to increase customer satisfaction. Tablet usage increases to 24% from 17% in 2015, and online scheduling increases to 13% from 9% during the same period.
• Almost a clean sweep: Customers rate dealers higher than non-dealers in 15 of 16 attributes. The most noticeable advantages are amenities offered; comfort of waiting area; and cleanliness of dealership. Non-dealers rate higher in time required to complete vehicle service—but only by 0.06 points on a 10-point scale.
• The value of getting it right the first time: The vast majority (94%) of customers who take their vehicle in for service indicate that the dealer fixed it right the first time. However, among the 6% of customers indicating the service work was not completed right on the first visit, satisfaction drops to 639, which is 184 points lower than among those whose work was completed right the first time.
• Too much static: Dealers seem to have trouble servicing problems with radios. It’s unclear if the issue is vehicle- or service-related, but only 80% of customers who sought service for a radio reception problem indicate the dealer was able to fix it right the first time.

Lexus ranks highest in satisfaction with dealer service among luxury brands, with a score of 874. Following in the luxury ranking are Audi (869); Lincoln (868); Porsche (867); and Cadillac (865).

Buick ranks highest in satisfaction with dealer service among mass market brands, with a score of 860. Following in mass market brands are MINI (850); GMC (837); Chevrolet (829); and Nissan (822).

About the Study

The 2017 U.S. CSI Study is based on responses from more than 70,000 owners and lessees of 2012 to 2016 model-year vehicles. The study was fielded between October and December 2016.

For more information about the 2017 U.S. Customer Service Index Study, visit http://www.jdpower.com/resource/us-customer-service-index-study

See the online press release at http://www.jdpower.com/pr-id/2017027.

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

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

 

Tesla Owners Acknowledge Numerous Quality Issues; Love Their Cars Anyway, JD Power Finds

2017-03-20

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COSTA MESA, Calif.: 21 March 2017 — Problems associated with Tesla Model S and Model X have little influence on the overt affection owners have for these cars and the brand, according to a JD Power report released today titled “Tesla: Beyond the Hype.”

“Tesla owners see themselves as pioneers who enjoy being early adopters of new technology,” said Kathleen Rizk, director, global automotive consulting at JD Power. “Spending $100,000 or more on a vehicle that has so many problems usually would have a dramatically negative effect on sales and brand perception. Right now, though, Tesla seems immune from such disenchanted customers.”

“Tesla: Beyond the Hype” is a detailed examination of the brand’s quality issues, based on multiple focus groups of Tesla owners and an in-depth evaluation of Tesla models against competitive vehicles by automotive research experts at JD Power.

Historically, small sample size has prevented Tesla from appearing in the annual rankings in both the JD Power Initial Quality Study (IQS)℠ and the Automotive Performance, Execution and Layout (APEAL) Study.℠ This report, however, provides clients with directional data that gives greater insight to Tesla vehicle quality and owners’ emotional attachment.

Consumers who opt for Tesla’s next model, the Model 3, are expected to be less forgiving of quality issues. “When consumers buy a mass-market car priced around $35,000 that will be their primary mode of transportation, the degree of expectation will increase immensely,” Rizk said. “We’ve seen that with other well-liked brands, whether or not it involves an electric vehicle.”

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 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

 

Smartphone Satisfaction Higher as Customer Homes Become More Connected, JD Power Finds

2017-03-22

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COSTA MESA, Calif.: 23 March 2017 — Customer satisfaction is much higher among smartphone owners who use their device to operate other connected home services such as smart thermostats and smart appliances, according to the JD Power 2017 Full-Service Smartphone Satisfaction Study^SM released today.

Overall satisfaction with smartphones is 49 points higher among customers with voice-activated home assistants such as Amazon Echo (881 vs. 832 on a 1,000-point scale) than those without such a device. Significant gaps also are seen among customers with a smart thermostat than without (865 vs. 831, respectively) and customers with a smart appliance than without (866 vs. 832). Overall satisfaction with smartphones is especially high—885—among owners who have all three of these connected home devices.

In all factors measured in the study, customers with connected home devices have higher satisfaction than those who do not, with the gaps most pronounced in the features factor. Features satisfaction is 74 points higher among those who have voice-activated home assistants than those who do not (861 vs. 787, respectively). Among features attributes, customers who have connected home devices provide notably high ratings for a variety of phone file formats and a variety of additional content available, since connected home devices provide access to additional smartphone functionalities.

“Customers with connected home devices are able to improve the comfort, convenience and security of their living spaces with their smartphone devices,” said Kirk Parsons, senior director and technology, media & telecom practice leader at JD Power.  “They are more satisfied with their smartphones because they can take advantage of smartphone functionalities that other customers may not be aware of. Smartphone manufacturers that make it easier for their products to connect with other devices will have a major advantage in improving customer satisfaction as homes become smarter and more automated.”

The frequency of smartphone use for connected home devices also affects smartphone satisfaction. Customers using their smartphone daily in such a manner have much higher satisfaction than those who use their smartphone less frequently for smart thermostats (926 vs. 866, respectively); smart appliances (929 vs. 851); and voice-activated home assistants (928 vs. 878).

Following are key findings of the 2017 study:

• Overall satisfaction rises: All ranked brands have seen improvements in overall satisfaction during the past year, with Motorola (824) showing the greatest improvement since the 2016 Vol. 1 study (+15 points), followed by HTC (+12 points) and Apple (+6 points). Most of these gains came since last volume, in which Motorola, HTC and LG improved by 22, 17 and 14 points, respectively.       
• Carrier-level satisfaction differs: Among carriers, overall satisfaction with smartphones is highest among AT&T customers (841), followed by Sprint(840), Verizon Wireless (831), U.S. Cellular (829) and T-Mobile (828) customers.
• Connected home incidence differs: Customers whose smartphones have iOS have slightly higher incidences than customers whose smartphones have Android of owning smart thermostats (13% vs. 11%, respectively); smart appliances (9% vs. 8%); and voice-activated home assistants (7% vs. 6%).
• Brand loyalty matters: Customers who are more satisfied with their smartphone are better brand advocates than those who are less satisfied. Among customers who are delighted (satisfaction score above 900), 73% say they “definitely will” recommend their smartphone brand. That percentage drops to 40% among satisfied customers (satisfaction of 750-900); 13% among indifferent customers (satisfaction of 550-749); and just 7% among dissatisfied customers (satisfaction below 550).
• Shifting away from subsidized phones: The shift away from phone subsidies in the full-service segment contributes to the rise in the average smartphone price of $366 from $361 in 2016 Vol. 1 and $318 in 2016 Vol. 2.

Study Rankings

Apple ranks highest in overall satisfaction in the full-service carrier segment (840), followed closely by Samsung  (839).  Apple ranks highest overall in performance and features dimensions.

About the Study

Now in its 11th year, the 2017 Full-Service Smartphone Satisfaction Study measures customer satisfaction based on five factors (in order of importance): performance (25%); ease of operation (21%); battery (20%); physical design (19%); and features (16%). The study is based on experiences evaluated by 7,994 smartphone customers who have owned their current smartphone for less than one year and who are customers of one of the five Tier 1¹ wireless carriers. The study was fielded between October and December 2016.

See the online press release at http://www.jdpower.com/pr-id/2017033.

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

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 ¹Tier 1 carrier includes the five national wireless providers in the United States: AT&T, Sprint, T-Mobile, U.S. Cellular and Verizon Wireless.

 

Insurer Profitability and Broker Expertise Emerge as Key Drivers of Customer Satisfaction In JD Power 2016 Large Commercial Insurance Study 

2016-12-02

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COSTA MESA, Calif.: 5 Dec. 2016 — According to the JD Power 2016 Large Commercial Insurance Study,^SM the key variables driving overall commercial insurance customer satisfaction are insurer profitability and broker expertise. The highest-performing broker in this year’s study is Lockton. The highest-performing insurer in this year’s study is XL Catlin.

The study, now in its third year, measures customer satisfaction with commercial insurers and insurance brokers. Commercial insurer satisfaction is based on five factors: service interaction; program offerings; price; billing process; and claims. Satisfaction with commercial insurance brokers is based on nine attributes: quality of advice and guidance provided; reasonableness of fees; ease of the renewal process; effectiveness of risk control services; variety of program offerings; effectiveness of program review; price, given services received; billing and payment process; and claims process. The study was conducted in conjunction with RIMS (the risk management society^TM), a global not-for-profit organization with a membership of more than 11,000 risk management professionals located in more than 60 countries.

Among large commercial insurers, a distinct correlation is found between customer satisfaction and insurer profitability, as measured by total commercial combined financial ratios¹. The highest-performing companies in overall satisfaction—XL Catlin (773 on a 1,000-point scale); CNA (767); and Chubb (765)—are also found to have among the industry’s strongest combined ratios, suggesting that the most profitable insurers are able to support more flexible underwriting standards to meet customer needs more effectively. Overall, JD Power finds a 0.67 correlation between customer satisfaction and insurer profitability.

Among commercial insurance brokers, the highest-performing firms, Lockton (863) and Arthur J. Gallagher & Co. (823), outperform larger rivals by a large margin. The most significant single attribute driving that performance is quality of advice/guidance provided, demonstrating for the second consecutive year that brokers who have an in-depth expertise and establish a hands-on, consultative relationship with their clients are consistently driving the highest levels of customer satisfaction. The study also shows the inverse to be true. Among the 20% of customers who indicate their broker does not completely understand their business needs, satisfaction declines by an average of 136 points.

“As rates across the U.S. commercial property and casualty insurance market continue to decline, delivering an exceptional customer experience has become the x factor that levels the playing field and opens up new growth opportunities for commercial insurers and brokers,” said Greg Hoeg, vice president of the U.S. insurance practice at JD Power. “With the potential for rate volatility in 2017 and beyond now increasing, keeping a laser focus on customer satisfaction will be a critical driver of success.”

“The key for risk professionals to effectively manage uncertainties is knowledge,” said Mary Roth, RIMS CEO. “Gaining the perspectives of their peers through this JD Power and RIMS study arms practitioners with the insight to make informed strategic decisions regarding the future of their organizations’ insurance programs. We are proud to partner with JD Power and offer the risk management community with this valuable resource.”  

Key Finding among Brokers

• Domain Expertise, Sage Counsel Drive Satisfaction: The single most critical touch point between a customer and an insurance broker is the quality of advice/guidance provided. Industry-wide, brokers receive an average rating of 8.34 on a 10-point scale for this metric. Customers of highest-performing broker Lockton provide the firm a rating of 8.89, a key factor driving its overall 40-point lead over the second-ranked broker in the study. 

Key Findings among Insurers

• Satisfaction Linked to Profitability: JD Power finds a 0.67 correlation between insurer profitability and overall customer satisfaction, suggesting that the more profitable the book of business an insurer has, the greater the likelihood that the insurer will also have high levels of satisfaction.
• Flexible Program Design Impacts Satisfaction: Providing flexible program design and implementation is the most impactful single key performance indicator (KPI) for commercial insurers. However, the study finds that is not a standard practice—the rate at which insurers deliver on this KPI is only 47%.  

Large Commercial Insurance Broker Rankings

• Lockton ranks highest with a score of 863
• Arthur J. Gallagher & Co. ranks second (823)

Large Commercial Insurer Rankings

• XL Catlin ranks highest with a score of 773
• CNA ranks second (767)
• Chubb ranks third (765)

The 2016 Large Commercial Insurance Study provides an independent and objective measure of overall satisfaction among large commercial insurance risk professionals in the United States and Canada. The study is based on responses from more than 1,400 risk professionals or employees who provide oversight for their organization or are members of their organization’s risk management team. Organizations included in the study have at least $100 million in annual revenue or operating budget and have purchased a commercial insurance policy from one of the profiled insurers or brokers.

Media Relations Contacts

JD Power—Geno Effler; (714) 621-6224; [email protected]

RIMS—Josh Salter; (212) 655-6059; [email protected]

About JD Power http://www.jdpower.com/about/index.htm

About RIMS www.rims.org

1. Source: JD Power Insurance Performance Portal (IPP). Based on direct premiums written.

 

Will Automatic Emergency Braking Give Consumers What They Want? The Early Signs Are Good

2016-12-07

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DETROIT: 8 Dec. 2016 — Within the next six years, 99% of all new vehicles sold in the United States are to be equipped with automatic emergency braking (AEB), a technology for automobiles that senses and prevents an imminent collision with another vehicle, person or obstacle by braking without driver input.

In March 2016, 20 major automakers and the U.S. government agreed to make automatic braking standard on new light vehicles sold in the United States by 2022. One of the compelling reasons for the agreement is an Insurance Institute for Highway Safety (IIHS) study of police-reported crashes, which shows that automatic braking and forward collision alert systems reduce the incidence of rear-end crashes by 39%.

When airbags were mandated, the purpose was to protect occupants in a crash. The new era of vehicle safety is focused on preventing crashes and not just protecting occupants. The JD Power 2016 Tech Choice Study^SM finds that U.S. consumers are most interested in technologies that will protect them in a collision and driving assistance technologies that will help avoid a collision in the first place.

But what does current safety data show for this new technology? According to NHTSA data analyzed by JD Power through its SafetyIQ platform, among the 348 brake-related complaints for select 2016 model-year vehicles that offer AEB as standard equipment, only seven are related to emergency braking technology.

In addition, a SafetyIQ analysis finds that none of the 1,361 brake recalls to date are related to AEB. An even more comprehensive examination of the SafetyIQ Early Warning System, which identifies the highest-risk issues based on the likelihood that a complaint will result in a future recall, shows only three automatic braking complaints out of 4,089 high-risk issues in 2015 and 2016.

“Full adoption of automatic emergency braking will provide a considerable benefit to the public, and our analysis shows that the introduction of this life-saving technology has led to very few quality issues or customer concerns so far,” said Dave Sargent, vice president, global automotive at JD Power. “Our Early Warning System will allow any emerging issues to be quickly identified and addressed, but so far so good.”

For more information about the JD Power SafetyIQ platform, please visit www.jdpower.com/safetyiq.

Media Relations Contacts

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

John Tews; Troy, Mich.; 248-680-6218; [email protected]

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

 

Customer Loyalty Measurement Can Play Bigger Role as JD Power Collaborates with Bain & Company to Provide Independent Benchmark

2016-12-07

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COSTA MESA, Calif., and BOSTON: 8 Dec. 2016 — JD Power, a leading global provider of customer satisfaction research, has signed an agreement with Bain & Company, a global management consulting firm, to become the officially recognized authority for benchmarking the Net Promoter^® Score (NPS) in a series of industry studies in North America.

Bain Certified Net Promoter by JD Power will deliver world-class independent measures of NPS benchmarks and advisory services via JD Power retail banking industry benchmark studies in 2016 and 2017. Additional studies under consideration will focus on financial services, insurance, utilities, telecommunications and travel.

This independent NPS competitive benchmark follows a methodology certified by Bain & Company, a key requirement for accurate scores. Brands that adopt the new benchmark will be better positioned to improve customer experience, increase brand advocacy and drive positive financial results. To access the Bain Certified NPS benchmarks, you must subscribe to at least one of 20 select JD Power studies published in 2017. Learn more at http://www.jdpower.com/nps.

“Many companies in these industries conduct internal NPS surveys while, at the same time, basing much of their investor communication and executive compensation on these results,” said Keith Webster, senior vice president and general manager at JD Power. “JD Power will now provide an independent and objective Bain-certified NPS industry benchmark which companies can use to compare performance.”

The collaboration will combine JD Power’s extensive knowledge of measuring customer feedback with Bain’s deployment of the NPS system to help companies achieve sector leadership in customer loyalty. Both firms are also evaluating the possibility of extending their collaborative efforts to include NPS in other JD Power syndicated benchmarking studies.

“Developing a reliable and trusted NPS benchmarking authority will raise the standard for the measurement and reporting of NPS and help our clients focus on taking the actions required to earn deeper loyalty from their customers,” said Rob Markey, partner at Bain & Company and co-author of The Ultimate Question 2.0. “Working with JD Power—a company with the expertise to measure and benchmark customer feedback—will give our clients benchmarks they can rely on when making important decisions.”

“Using NPS as the top-level measure of customer engagement—and then marrying that with the depth of data JD Power captures—will give clients a significantly enhanced capability to not only see where they stand relative to competitors, but to more precisely identify and prioritize improvement opportunities,” said Rocky Clancy, vice president, financial service practice, at JD Power. “This benchmarking will enable clients to compare their performance and best practices to companies in other industries, which is critical given that customer expectations are influenced by their experience with other products and firms.” 

“Banks are more determined than ever to improve their customer experience, but there remains a disconnect between how they rate themselves and how their customers rate them,” said Gerard du Toit a partner at Bain who leads their banking practice in North America. “They also don’t realize just how good the best banks are at earning customer loyalty and how they do it.  For instance, based on our latest research, most large U.S. banks have an NPS in the 20-30% range.  USAA is at 81%. Bain’s partnership with JD Power provides banks with an independent and rigorous measure of whether they have earned the loyalty or the anger of their customers, and how that compares to best in class.”

JD Power is a global market research company known for its independent consumer surveys of product and service quality, customer satisfaction and buyer behavior in more than a dozen industries. Established in 1968 and headquartered in Costa Mesa, Calif., JD Power has 17 locations serving North/South America, Europe and the Asia Pacific region.

Bain & Company is the management consulting firm that the world’s business leaders come to when they want results. Bain advises clients on strategy, operations, technology, organization, private equity and mergers and acquisition, developing practical insights that clients act on and transferring skills that make change stick.

The firm aligns its incentives with clients by linking its fees to their results. Bain clients have outperformed the stock market 4 to 1. Founded in 1973, Bain has 53 offices in 34 countries, and its deep expertise and client roster cross every industry and economic sector.

Media Relations Contacts

John Tews, JD Power; 248-680-6218; [email protected]

Dan Pinkney, Bain & Company: 646-562-8102; [email protected] 

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

About Bain & Company

For more information visit: www.bain.com. Follow us on Twitter@BainAlerts.

Net Promoter® and NPS® are registered trademarks and Net Promoter System^SM and Net Promoter Score^SM are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld.

 

Airports Rise to Challenge of Higher Traveler Volume, Aging Infrastructure

2016-12-13

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COSTA MESA, Calif.: 15 Dec. 2016 — Even with an increased number of travelers moving through airports—many of which are not designed for the volume of people and flights they now support—satisfaction with their airport experience is improving,  according to the JD Power 2016 North America Airport Satisfaction Study,^SM released today. 

Overall traveler satisfaction with the airport experience averages 731 (on a 1,000-point scale) in 2016, an improvement from 725 in 2015. Overall satisfaction with large airports¹ is 724, a 5-point increase from 2015, and satisfaction with medium airports is 760, an 8-point rise. The increase in satisfaction comes at a time when airports are posting a 5-6% annual increase in traveler volumes. 

“Many airports, especially the nation’s largest airports, were never built to handle the current volume of traveler traffic, often exceeding their design limits by many millions of travelers,” said Michael Taylor, director of the airport practice at JD Power. “Yet airports are overcoming infrastructure limits by affecting the things they can influence. Airports are successfully applying technology to improve check-in (+5 points year-over-year), security screening (+3 points) and the food, beverage and retail shopping (+10 points) experiences.”

Large and medium airports have experienced year-over-year improvements in satisfaction overall, and for all factors.  Satisfaction with security check improves the least (+1 and +8 points respectively), due in part to increased traveler volume contributing to an 8% increase in wait times in security lines from 2015. 

Short-Term Pain, Long-Term Gain

Many airports are undergoing major renovations and many others are set to begin major building projects. Until these plans are completed, it likely means an increase in disruption and stress for travelers.

“There are many multibillion dollar renovation projects on the books across the continent. This heavy construction will make it difficult for travelers to access the airport and, once there, it will likely make it even more difficult to navigate the crowded terminals,” said Taylor. “During construction, airports need a solid strategy for passenger flow.  Much of it starts with good signage. The goal would be to prevent traveler stress and aid on-time performance. However, once these projects are finished, travelers should notice a tremendous positive difference in their airport experience and satisfaction should increase dramatically.

Following are some of the key findings of the 2016 study:

Improvements across the Board: Satisfaction improves in each factor of the airport experience, with the greatest year-over-year increases in baggage claim (+11 points) and the food, beverage and retail category (+10). 

Local Flavor: Many airports are adding a wider variety of food options, often with localized cuisine. For example, Miami International Airport has added Cuban and Caribbean restaurants and Houston Hobby has Texas barbecue options for travelers. “Offering local flavor and local design elements unique to the area provide a ‘sense of place,’” said Taylor. “For example, Portland International Airport has incorporated regional designs and symbols in the flooring. The color schemes and storefronts make the airport feel unique to Oregon and the Northwest. Indianapolis International Airport has a very open design with a lot of space so travelers aren’t crowded.”

Airport Satisfaction Rankings

Portland International Airport ranks highest in satisfaction among large airports for the second consecutive year, with a score of 786. Tampa International Airport (775) ranks second and Las Vegas McCarran Airport (759) ranks third.

Indianapolis International Airport ranks highest among medium airports, with a score of 794. Buffalo Niagara International Airport (791) ranks second and Fort Meyers/Southwest Florida International Airport (790) ranks third.

North America’s Biggest and Busiest Airports

New York LaGuardia Airport: The biggest news among the New York area airports is the Port Authority of New York and New Jersey’s multibillion dollar redesign of LaGuardia Airport. Construction woes have contributed to a 6-point drop in overall satisfaction for the airport in 2016.  Several LaGuardia terminals are being transformed into one integrated terminal, which will be located 600 feet closer to the Grand Central Parkway. “Those current terminals handle more than 13 million travelers a year. They were designed to handle only 8 million travelers,” said Taylor. “This improvement has been needed for a long time. The new design is going to create major short-term headaches for LaGuardia travelers, but the results will be worth it. The design solves two major problems for the airport: overcrowding and the ability to move aircraft more efficiently on and off runways.”

O’Hare Airport: As one the nation’s largest connecting airports, O’Hare International Airport has enjoyed a year almost free of major weather events, which helps boost satisfaction by 9 points.  Thunderstorms and snow storms were relatively mild for O’Hare thus far in 2016, helping operations and on-time performance. “The primary reason to take an airplane flight is not to enjoy a movie or to eat a meal; the principal objective is to get somewhere on time,” said Taylor. “The weather has cooperated for much of the year, and that has made traveling through O’Hare much easier.”

Los Angeles International Airport: The big news at Los Angeles International is the redesign of Terminal 2, which was completed in February 2016. “Terminal 2’s new design and the amenities it now offers are partly responsible for a hefty 32-point jump in overall satisfaction,” said Taylor. “Terminal 2 represents the wave of new airport designs with a mix of local and chain restaurants and a more open feel to the terminal. While that’s a good thing, there is much more construction scheduled at Los Angeles for the next several years, and the airport’s U-shaped layout will make access an issue during renovations.”

Hartsfield-Jackson Atlanta International Airport: More than 100 million people will have traveled through the Atlanta airport by the end of 2016. “If you think about it, that’s putting about one-third of the U.S. population through a few buildings in Georgia over the course of a year,” said Taylor. “Yet, everything runs fairly efficiently.” Hartsfield is feeling the strain though, with satisfaction down 9 points in 2016. The airport has $6 billion worth of redesigns planned over the next 20 years.

Las Vegas McCarran International Airport: Las Vegas McCarran airport continues to set traveler volume records month after month. The airport has deployed the latest technologies to maintain a fluid traveler flow through the airport, with self-service passport control kiosks in place since 2014. “That has really helped smooth things out for international travelers,” said Taylor. “McCarran has plans to double its number of international gates and take on larger aircraft. It’s going to need these improvements to handle those loads, but they’re definitely thinking ahead.”

Dallas/Fort Worth International Airport: The opening of new, innovative restaurants can drive traveler satisfaction at airports. One such example is the opening of a new tapas restaurant at Dallas/Fort Worth International, which improves 15 points in the food and beverage factor. “Food outlets such as Lorena Garcia’s TAPAS y Cocina are an excellent example of airports offering travelers something unique to their location,” said Taylor. “Texas and Latin food naturally go together. It’s a good illustration of an airport creating that ‘sense of place’ that really helps traveler satisfaction.”

About the Study

Now in its 11th year, the study measures overall traveler satisfaction with large and medium North American airports by examining six factors (in order of importance): terminal facilities; airport accessibility; security check; baggage claim; check-in/baggage check; food, beverage and retail.

The 2016 North America Airport Satisfaction Study is based on responses from 38,931 North American travelers who traveled through at least one domestic or international airport with both departure and arrival experiences (excluding connecting airports) during the past three months. Travelers evaluated either a departing or arriving airport from their round trip experience. Only evaluations of North American airports are included in the official rankings, which was comprised of 36,465 responses. The study was fielded from January through October 2016.

Learn more about JD Power travel studies at http://www.jdpower.com/industry/travel.

Learn more about about Dependability Ratings at https://www.jdpower.com/cars/ratings/dependability.

See the online press release at http://www.jdpower.com/pr-id/2016242.

Media Relations Contacts

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

John Tews; Troy, Mich.; 248-680-0621; [email protected]

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

1. Airport segments based on Federal Aviation Administration airport classifications http://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/categories/

 

2016 Total New-Vehicle Sales Poised to Set Record with Slight Increase Over 2015; Retail New-Vehicle Sales Expected to Decline

2016-12-21

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DETROIT: 22 Dec. 2016 — With a strong close to the year, total new light-vehicle sales in 2016 are expected to reach a record 17.5 million vehicles, surpassing the previous high set in 2015 by 5,000 units, according to a forecast developed jointly by JD Power and LMC Automotive.

Retail sales in 2016 are forecast to close at 14.1 million units, a 1.2% decline from 14.2 million units in 2015, but still will be the sixth-highest retail sales year in history.

New-vehicle retail sales in December are projected to reach 1,332,800 units, a 0.8% increase on a selling-day adjusted basis compared with December 2015, while total light-vehicle sales are expected to reach 1,604,500 units, a 1.4% increase.

Deirdre Borrego, senior vice president and general manager of automotive data and analytics at JD Power, said: “This year will be remembered for strong retail sales and record transaction prices. However, elevated inventories, a slow model-year transition and record incentive levels point to the challenges the industry will face in 2017. Going forward, automakers must maintain production and pricing discipline to achieve profitability, which is easier said than done.”

Incentive spending in November eclipsed $4,000 per unit for the first time on record. December, which typically delivers the highest incentive spending level of the year, is expected to exceed the November record as manufacturers clear out old model-year vehicles and reduce inventory.

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

	December 20161	November 2016	December 2015
New-Vehicle Retail Sales	1,332,800 units (0.8% higher than December 2015)2	1,121,278 units	1,371,607 units
Total Vehicle Sales	1,604,500 units (1.4% higher than December 2015)2	1,377,427 units	1,640,370 units
Retail SAAR	14.6 million units	13.8 million units	14.7 million units
Total SAAR	17.5 million units	17.8 million units	17.5 million units

¹Figures cited for December 2016 are forecasted based on the first 15 selling days of the month.

²The percentage change is adjusted based on the number of selling days in the month (27 days in December 2016 vs. 28 days in December 2015).

• The seasonally adjusted annualized rate (SAAR) for retail sales in December 2016 is projected to reach 14.6 million units, down 70 thousand units from December 2015. The SAAR for total sales is projected at 17.5 million units in December 2016, consistent with the level a year ago.
• Fleet sales are expected to total 271,700 units in December, up 4.8% on a selling-day adjusted basis from December 2015. Fleet volume is expected to account for 16.9% of total light-vehicle sales, up slightly from 16.4% in December 2015.
• The average new-vehicle retail transaction price thus far in December is $32,000, a record for the month, and surpassing the previous high of $31,849 set in December 2015.
• With high absolute retail sales volumes and record transaction prices for the month, consumers are on pace to spend $42.6 billion on new vehicles in December, slightly behind the record high of $43.7 billion for the month of December set in 2015. Additionally, 2016 annual retail sales expenditures will set a record at $438 billion, surpassing the previous record of $436 billion set in 2015.

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said: “We project 2016 to be another record for light-vehicle sales, but it will come down to a photo finish. Given the high level of incentives and an increase in fleet volume this year, we expect to see some payback in 2017. However, it may not be evident as the sales volume is expected to be at the same level, with variables that could tip the volume risk slightly in either direction. Positive drivers include a stronger economy with fiscal stimulus and deregulation, Volkswagen’s buyback program and a high number of lease maturities. Negative drivers include a steeper interest rate increase, potential protectionism, a potential pullback in incentive levels and used-car substitution.”

LMC is forecasting total light-vehicle sales in 2017 to be in the 17.4-17.5 million unit range, down slightly from 2016 levels by approximately 25,000 units. Retail light-vehicle sales are expected to fall 0.3% to 14.0 million units in 2017.

U.S. Retail SAAR—December 2015 to December 2016

 

(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

 

Customer Engagement Drives Electric Utility Business Customer Satisfaction to Record High

2017-01-10

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COSTA MESA, Calif.: 11 Jan. 2017 — Electric utility providers are communicating with more of their business customers, more often and in more ways, and their efforts are resulting in record-high levels of satisfaction, according to the JD Power 2016 Calendar-Year Electric Utility Business Customer Satisfaction Study,^SM released today.

The study,[1] now in its 18th year, measures satisfaction among business customers of 87 targeted U.S. electric utilities, each of which serves more than 40,000 business customers. In aggregate, these utilities provide electricity to more than 11 million customers. Overall satisfaction is examined across six factors (listed in order of importance): power quality and reliability; corporate citizenship; price; billing and payment; communications; and customer service. Satisfaction is calculated on a 1,000-point scale.

Overall satisfaction among electric utility business customers improves for the fourth consecutive year to a record high of 755 points, a significant increase over the last two studies (704 and 677, respectively). Satisfaction improves significantly in each of the six factors, with the largest year-over-year increases in price (+60 points), communications (+56) and customer service (+55).

“Utilities are really beginning to understand the importance of engagement with their business customers, which is reflected in increased communication,” said John Hazen, director in the utility & infrastructure practice at JD Power. “Business customers expect their utility to do more than just keep the lights on. In the absence of communication, which creates a void of critical information such as the status of outages, customers may not recognize the good things their utility is doing for the economy, the community and the environment. Proactive engagement creates awareness, which leads to higher satisfaction.”

The study finds that 52% of business customers recall at least one communication from their utility in the past six months, up from 49% last year.  The topics of those communications range from billing to energy conservation tips to customer service, and the delivery method varies from direct mail to in-person visits from a utility representative. Further, there is an increase in communications via email, the utility provider’s social media site and text messaging, compared with the 2016 study.

“It’s remarkable how utilities have improved as an industry in understanding the importance of being customer-focused,” Hazen said. “In doing so, they hope to not only improve their financial performance, but also to be viewed more favorably by regulators. Furthermore, business customers are also more supportive of the investment plans utilities have in such projects as updating or developing their infrastructure.”

Study Rankings

Within each of the four geographic regions included in the study, utility providers are classified into one of two segments: large (serving 85,000 or more business customers) and midsize (serving 40,000-84,999 business customers).

Among the eight providers that rank highest in their respective regions in this study, half also ranked highest in the previous study. Additionally, the average satisfaction score improves in each of the eight segments, with the largest increases in the south midsize (+61 points) west midsize (+56) segments.

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

• East Large: Con Edison
• East Midsize: Met-Ed
• Midwest Large: Ameren Missouri
• Midwest Midsize: Louisville Gas & Electric
• South Large: Georgia Power
• South Midsize: Gulf Power
• West Large: Salt River Project
• West Midsize: Seattle City Light

Key Findings

• Power Outages: In the past six months, business customers have experienced an average of 1.9 brief power interruptions (five minutes or less) and 1.2 lengthy outages (longer than five minutes), virtually unchanged from the previous study, yet the average duration of the longest outage has increased to 13.7 minutes from 11.9 minutes. Thunderstorms are by far the most common cause of the longest outages (26%), followed by snow and ice (12%).
• Alerts: The study finds more customers nationally have signed up for outage alerts and bill alerts than the previous study. In this study, more than 50% have signed up for outage alerts and 66% are receiving monthly bill alerts.
• Corporate Citizenship Efforts: Utility providers continue to ramp up their efforts to be good corporate citizens. For example, 70% of business customers say their electric utility provider supports economic development of the local community; 30% have seen utility employees volunteering or working in their community; and 43% are aware of their utility provider’s efforts to improve its effect on the environment.

The 2016 Calendar-Year Electric Utility Business Customer Satisfaction Study is based on responses from more 20,000 online interviews with business customers who spend at least $200 a month on electricity. The study was fielded from February through June 2016 and July through November 2016.

Media Relations Contact

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

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

 

Three of Four Car Buyers Avoid Considering SUVs Despite Record Retail Sales

2017-01-12

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COSTA MESA, Calif.: 12 Jan. 2017 — A bright spotlight is shining on SUVs thanks to record retail sales in 2016, yet three of every four car buyers didn’t even consider buying an SUV, according to the JD Power 2017 Auto Avoider Study,^SM released today.

Only 24% of car buyers considered buying an SUV in a year in which total retail sales of SUVs comprised 42% of the market. Only five years ago, SUVs made up just 34% of the market.

“Low fuel prices, favorable lease deals  and the availability of low-interest loans are attracting buyers to SUVs, which historically are more expensive than most car models,” said Dave Sargent, vice president of global automotive at JD Power. “However, since consumers, on average, pay a 9% premium for an SUV compared with a comparably equipped sedan, many consumers still are not considering an SUV.”

SUV buyers are more likely to purchase their vehicle for its cargo capacity, compared with car buyers (42% vs. 20%, respectively); 4WD/AWD capability (48% vs. 9%); and safety (45% vs. 38%). It’s notable that, in the JD Power 2016 APEAL Study,^SM SUV owners rate the “feeling of safety when driving the vehicle” higher than car owners.

Car buyers who rejected the SUVs they shopped at a dealer did so primarily due to a higher price and a desire for better gas mileage. Conversely, SUV buyers who shopped for cars rejected the cars because they were too small, lacked the desired cargo capacity and lacked 4WD/AWD capability.

Not only are SUVs typically more lucrative for auto manufacturers in terms of profit margins, but they are also proving to be a good way to entice buyers away from other brands. For example, the study indicates that SUV buyers are less brand loyal than car, pickup or minivan buyers. In fact, 38% of SUV buyers report never before owning the brand of their new SUV, a higher number than for car, pickup and minivan buyers.

Compact SUVs, the largest-volume segment in the industry, are the most shopped or considered vehicles in the market—and also have one of the industry’s highest close rates. More than six in 10 (61%) new-vehicle buyers who shopped for a compact SUV actually bought a compact SUV. Three compact SUVs—Honda CR-V, Toyota RAV4 and Ford Escape—are among the 10 most shopped/considered models by new-vehicle buyers.

Following are additional findings of the 2017 study:

• Reliability is a top purchase reason, increasing to 59% in 2017 from 55% last year. That’s the highest in six years and the third-most often stated purchase reason behind exterior styling (62%) and interior styling (61%). “Even though manufacturers are producing vehicles with the highest quality levels ever achieved, vehicle reliability continues to be a top concern among buyers,” Sargent said.
• For some brands, the perception of poor reliability continues to persist and lead many consumers to exclude them from further consideration. One example is Kia. The Korean brand is one of the most avoided non-premium import brands due to concerns about reliability, yet it earned the highest ranking among all brands in the recent JD Power 2016 Initial Quality Study^SM (IQS).
• On the heels of last year’s Volkswagen diesel emission problems, this year’s study indicates a significant drop in consideration of the brand, slipping to 4.5% from 6.2% last year. Avoidance of Volkswagen due to reputation of the manufacturer increases to 20% in 2017 from 9% in 2016. Note that other brands have bounced back from blows to their reputation, and time will tell how long it takes Volkswagen to fully recover.

About the Study

The 2017 U.S. Auto Avoider Study, now in its 14th year, examines the reasons consumers purchase, reject and avoid models in the marketplace when shopping for a new vehicle. The 2017 study measures shopping behavior among new-vehicle buyers who purchased during 2016.

The study is based on responses from more than 27,500 owners who registered a new vehicle in April and May 2016. The study was fielded between July and September 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-us/press-release-info