Category: United States

2011-07-27

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• Recommendations and referrals play a key role for both buyers and sellers in choosing an agent and real estate company. In 2011, six in 10 buyers and sellers say their agent asked for a referral or recommendation–up from 47 percent in 2010.
• The average number of homes that buyers were shown prior to making a purchase is 9.0 in 2011, down notably from 17.5 in 2010.
• The average number of home showings in 2011 is 8.6, on average, prior to sale, down considerably from an average of 12.1 showings in 2010.
• In 2011, just 58 percent of sellers indicate using a website listing to market their home, compared with 82 percent in 2010.

Hotel Guest Satisfaction with Costs and Fees Improves from 2010, Despite a Decline in Overall Satisfaction

2011-07-20

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WESTLAKE VILLAGE, Calif.: 20 July 2011 — Hotel guest satisfaction with costs and fees has improved despite higher room rates, while satisfaction with other service and product-related aspects has declined amid increasing occupancy rates, according to the JD Power and Associates 2011 North America Hotel Guest Satisfaction Index Study^SM released today.

Now in its 15^th year, the study measures overall hotel guest satisfaction across seven¹ hotel segments: luxury; upper upscale; upscale; mid-scale full service; mid-scale limited service; economy/budget; and extended stay. Seven key measures are examined within each segment to determine overall satisfaction: reservations; check-in/check-out; guest room; food and beverage; hotel services; hotel facilities; and costs and fees.

The study finds that satisfaction with costs and fees has increased to an average of 739 (on a 1,000-point scale) in 2011—20 points higher than 2010. Meanwhile, occupancy and average daily rate in the U.S. hotel industry have been steadily increasing during the past year. According to Smith Travel Research, Inc., occupancy is up to an average of 65.1 percent as of May 2011, an increase of 4.6 percent compared with May 2010. During the same time frame, average daily rate has increased to an average of $101.54, up by 4 percent from last year.

The improvement in hotel guest cost and fee satisfaction, despite higher room rates, runs counter to the general pattern of customers being less satisfied with higher prices. For example, in the JD Power and Associates 2011 North America Airline Satisfaction Study,^SM each airline that implemented price increases experienced a decline in satisfaction with fare costs.

“Unlike the airline industry, in which prices were raised aggressively amid limited seat supply and high demand, the hotel industry has enacted more modest price increases and has had spare room capacity,” said Stuart Greif, vice president and general manager of the global hospitality and travel practice at JD Power and Associates. “The benefits of higher occupancy have outweighed taking a more aggressive posture on average daily rates, as putting ‘heads in beds’ has taken priority.”

“The bright spot for hotel guests is that costs and fees remain relatively low, so the value received for the price paid is still quite high,” said Greif. “The bright spot for hoteliers is that there appears to be more upward opportunity on rates.”

While satisfaction with cost and fees is higher in 2011, compared with 2010, satisfaction with other areas of the guest experience—ranging from facilities and operations to services—has decreased. As a result, overall satisfaction averages 764 in 2011, down from 771 in 2010.

According to Greif, many chains are now making investments that were delayed due to the downturn in the economy, but which will take time to complete. Hoteliers are also being careful not to add more staff until they believe higher levels of demand will be sustained. At the same time, guests are returning to hotels in greater numbers, reversing satisfaction gains realized when hotels were less busy during the downturn. The decline in overall satisfaction in 2011 reflects that hotel improvement efforts and investments are lagging behind rising customer expectations.

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

• Luxury: The Ritz-Carlton (for a second consecutive year)
• Upper Upscale: Embassy Suites Hotels
• Upscale: Hotel Indigo
• Mid-Scale Full Service: Holiday Inn
• Mid-Scale Limited Service: Drury Inn & Suites (for a sixth consecutive year)
• Economy/Budget: Microtel Inns & Suites (for a 10th consecutive year)
• Extended Stay: Homewood Suites (for a second consecutive year)

The study finds that 18 percent of hotel guests in 2011 report having experienced a problem during their stay. However, the rate at which guests report a problem to hotel staff varies widely by the type of problem experienced. For example, noise is the problem most commonly experienced by guests, with 16 percent indicating experiencing the issue. However, only 43 percent of these guests indicate they reported the noise to hotel staff. In contrast, just 13 percent of guests say they experienced a problem with the Internet connection or speed at their hotel, but 60 percent reported the problem. 

Despite the difference in the rate at which these problems were reported, resolution rates were similar. Among guests who reported noise problems to hotel staff, 35 percent say their problem was resolved. Among guests who reported Internet usage problems, the resolution rate averages 39 percent.

Problem occurrence has a strong negative impact on overall hotel guest satisfaction. Satisfaction among guests who experience a problem during their hotel stay averages more than 100 points lower than satisfaction among guests with a problem-free experience.

“Hotel guests should feel justified in reporting any problem that negatively impacts their satisfaction with a hotel,” said Mark Schwartz, director of the global hospitality and travel practice at JD Power and Associates. “Hotel staff and management will usually try their best to resolve these issues, particularly since they understand that solving a problem can result in a happier, more loyal customer.”

The 2011 North America Hotel Guest Satisfaction Index Study is based on responses gathered between June 2010 and May 2011 from more than 61,300 guests from Canada and the United States who stayed in a hotel in North America between May 2010 and May 2011.

¹The upper upscale segment has been added to the study in 2011 to reflect standard segmentation used by the hotel industry.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on travel ratings, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries.  Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

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

Online DSLR Camera Buyers Are Most Satisfied with Picture Quality, While Camera Durability and Shutter Speed/Lag Time Provide Opportunities for Brand Differentiation

2011-07-19

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WESTLAKE VILLAGE, Calif.: 19 July 2011 — Owners of DSLR cameras indicate they are highly satisfied with the picture quality of their cameras, but are notably less satisfied with durability and shutter speed/lag time, according to the JD Power and Associates 2011 Digital Single-Lens Reflex Camera Online Buyer Study^SM released today.

The study examines satisfaction among verified online buyers of digital single-lens reflex camera models. Responses were collected by PowerReviews–a social commerce network–and reflect the attitudes of actual DSLR camera owners who conducted their purchase using an e-commerce site. The study measures satisfaction among DSLR camera owners across five factors (listed in order of importance): picture quality (including picture clarity, sharpness and color); durability and reliability (including damage resistance, battery life and sturdiness); variety of features (including zoom, image stabilization and low light settings); ease of operation; and shutter speed/lag time (overall “speed” of the camera, including shutter lag time).

Overall, online DSLR buyers indicate they are well satisfied with their cameras, with satisfaction averaging 887 on a 1,000-point scale. Among the five factors, camera owners are particularly satisfied with picture quality (917), but are least satisfied with the shutter speed/lag time and durability of their cameras (866 each).

“Clearly, picture quality is crucial to online buyers of DSLR cameras,” said Larry Wu, senior director at JD Power and Associates. “However, owners expect no less than high-quality photos from their DSLRs, and other performance factors–such as durability and reliability, which is the second-most influential factor in overall satisfaction–have evolved as ways for DSLR camera models to differentiate themselves.”

The Nikon Pro Series ranks highest in online buyer satisfaction with a score of 914. The Nikon Pro Series performs particularly well in shutter speed/lag time, durability and reliability and ease of operation. The Canon Mark-Series follows in the rankings with a score of 909, and performs particularly well in performance and picture quality. The Canon D-Series and Nikon D-Series rank third in a tie, each with a score of 889.

The study also includes the following key findings:

• Online buyers spend an average of $937 on their camera.
• Online buyers report taking an average of 918 photos per month using their DSLR camera.
• A vast majority of online buyers (87%) say they “definitely will” recommend their DSLR camera to friends and family.
• One-third of online DSLR buyers use their camera for shooting video.
• While overall performance is cited as a reason for purchasing a particular DSLR model 31 percent of the time, online buyers cite previous ownership and brand reputation nearly as often.

The 2011 Digital Single-Lens Reflex Camera Online Buyer Study is based on responses provided by PowerReviews from nearly 4,500 verified buyers who purchased a DSLR camera online. The study was fielded October 2010 through April 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

About PowerReviews
PowerReviews is the world’s largest social commerce network. It helps companies tap into consumer conversations to drive better business, while providing consumers an easy way to share their insights about brands, products and services. Leading brands have standardized on PowerReviews to drive sales, increase traffic and shape product development.

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

Builder and Remodeler Satisfaction with Window and Patio Door Manufacturers Remains Flat, as Gains in Delivery and Product Are Offset by Decline in the Ordering Process

2011-07-07

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WESTLAKE VILLAGE, Calif.: 7 July 2011 — Among builders and remodelers, satisfaction with products and delivery from window and patio door manufacturers has improved, while satisfaction with the ordering process has declined considerably, according to the JD Power and Associates 2011 Builder and Remodeler Residential Window and Patio Door Satisfaction Study^SM released today.

Now in its sixth year, the study  measures satisfaction with residential windows and patio doors based on responses from new-home builders and remodelers by evaluating performance in seven factors (in order of importance): product; price; warranty and repair service; delivery; customer service and support; ordering process; and credit/billing process. The study is designed to provide comprehensive information to assist window and patio door manufacturers in their efforts to improve the builder and remodeler experience.

While overall satisfaction remains stable from 2010–averaging 785 on a 1,000-point scale in 2011–there have been notable changes within the various factors. In 2011, satisfaction with the product factor has improved, primarily due to increased satisfaction with the appearance, finish and durability of windows and patio doors. Improvements have also occurred in the price and delivery factors. Within the delivery factor, there has been a decrease in the proportion of orders that arrived with missing or incorrect parts.

However, satisfaction with the ordering process has declined significantly from 2010, tempering the gains achieved in the other factors. In particular, builders and remodelers are notably less satisfied with the availability of products and the effectiveness of the sales and marketing materials provided.

“While manufacturers are doing a good job with providing high-quality products in a timely manner, their performance in the ordering process needs to be elevated to the same levels,” said Jim Howland, senior director in the real estate industries practice at JD Power and Associates.

Simonton ranks highest among builders and remodelers in satisfaction with window and patio door manufacturers for a fourth consecutive year. Simonton achieves a score of 825 and performs particularly well in four of the seven factors: ordering process; delivery; warranty and repair service; and price. Following Simonton in the rankings are Marvin (812) and Pella (804). Marvin performs particularly well in the product and credit/billing process factors, while Pella performs well in the customer service and support factor.

The 2011 Builder and Remodeler Residential Window and Patio Door Satisfaction Study is based on more than 2,900 evaluations from more than 1,600 new-home builders and remodelers. Each respondent evaluated up to two manufacturers of residential windows and patio doors. The study was fielded between April and June 2011.

 About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on home building, real estate and home improvement, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries.  Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

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

Energy Efficiency Elevates Customer Satisfaction with Windows and Patio Doors

2011-07-07

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WESTLAKE VILLAGE, Calif.: 7 July 2011 — Touting energy-efficient features may help window and patio door manufacturers raise customer satisfaction, according to the JD Power and Associates 2011 Windows and Patio Doors Satisfaction Study^SM released today.

Now in its fifth year, the study measures satisfaction among customers who purchased new windows or patio doors based on performance in six factors (listed in order of importance): ordering and delivery; operational performance and durability; price; appearance and design features; warranty; and repair/replacement. Customers may have installed the windows or patio doors themselves or with help from family and friends; hired an independent contractor, handyman or remodeler; used an installation service provided by a home improvement retailer; or used an installation service recommended or provided by the product manufacturer.

The study finds that the importance customers place on weather tightness of windows and patio doors has increased from 2010, and that the proportion of customers who indicate they purchased Energy Star-qualified windows averages 95 percent, demonstrating the strong awareness of that program in the minds of consumers and customers alike. In addition to having high levels of importance and awareness among consumers, energy-efficient window features and technologies help raise customer satisfaction levels.

Overall satisfaction with windows and patio doors averages 786 on a 1,000-point scale in 2011. However, various energy-efficient window types have considerably higher levels of satisfaction: triple-pane glass (816, on average); gas-filled panels (806); low emissivity glass (791); and dual-pane glass (790).

“Consumers are increasingly seeking the environmental and economic benefits that energy-efficient windows and patio doors offer, but since they may not know which products can meet their needs, it benefits manufacturers to highlight these products and features prominently,” said Jim Howland, senior director in the real estate industries practice at JD Power and Associates.

Simonton ranks highest among customers in satisfaction with windows and patio doors, achieving a score of 818. Following Simonton in the rankings are Window World (807), Champion (805), and Renewal by Andersen (801). Window World performs particularly well in the warranty and price factors, while Champion performs well in two factors: appearance and design features and repair and replacement. Renewal by Andersen performs particularly well in the operational performance and durability and ordering and delivery factors.

The study also finds that nearly seven in 10 customers (69%) selected their window brand themselves, rather than relying on a window installer or contractor to make the decision.  The information sources used most often in the shopping process include: past experience with a window brand (23%); recommendations from contractors (23%) and recommendations from family and friends (12%). When deciding between different window brands, customers most often consider price, recommendations, quality and previous experience with a brand.

“To some degree, reliance on the contractor as a trusted advisor on window projects may be decreasing,” said Howland. “Increasingly, customers are using information sources such as online reviews and product websites, rather than seeking advice from a professional. Manufacturers that focus on making product features and benefits clear to the customer may be better able to differentiate themselves.”

JD Power and Associates offers the following tips to consumers shopping for windows and patio doors:

• Customers indicate air leaks and broken seals are two of the most aggravating problems with windows, as they compromise weather tightness and energy efficiency. These problems are mainly due to poor or broken sealing of the windows. Check window warranties to see what the dealer or manufacturer will cover, and for how long. Also ask what recourse you have if something goes wrong.
• Investigate air leakage ratings, which some manufacturers provide to help you understand the degree of air-tightness of windows and patio doors.
• In order to maintain the air-tightness of your windows following installation, check out the manufacturer’s recommendations regarding sealing and caulking. Your retailer or dealer should be able to help you find out what the recommended procedure is.

The 2011 Windows and Patio Doors Satisfaction Study is based on responses from more than 2,600 customers who purchased new windows or patio doors during the previous 12 months. The study was fielded in March and April 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on home building, home improvement and real estate, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com.
JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries.  Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

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

Satisfaction with Price is Lower among Auto Insurance Customers Who Bundle Policies

2011-06-28

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WESTLAKE VILLAGE, Calif.: 28 June 2011 — Satisfaction with price among auto-only insurance customers is now comparable to levels once reserved for customers who bundled auto and homeowners policies, according to the JD Power and Associates 2011 U.S. National Auto Insurance Study^SM released today.

The study measures customer satisfaction with auto insurance companies across five factors: interaction; price; policy offerings; billing and payment; and claims. The study finds that satisfaction among auto insurance customers who have their homeowners policy with another insurer or who only have an auto policy, has increased considerably from 2010 (up 21 and 26 index points, respectively, on a 1,000-point scale). In comparison, satisfaction among auto insurance customers who have their homeowners policy with the same insurer averages 727, increasing by only 7 points from 2010.

“For the first time, satisfaction with price is higher among unbundled customers than among bundled customers,” said Jeremy Bowler, senior director of the insurance practice at JD Power and Associates. “Customers have come to expect a discount for holding multiple policies with their insurer, and it appears that the positive effect of this discount has become diluted.”

According to Bowler, while only 58 percent of customers bundle their auto and homeowners policies with the same insurer, the bundling of any additional products with auto insurance has increased significantly in 2011 to 77 percent (compared with 70% in 2010).  As a result, discounts for multiple policies are among the most prevalent discounts reported by customers, along with discounts for being a safe driver. 

“While discounts for multiple policies and discounts for being a safe driver are more prevalent, there isn’t a huge effect on satisfaction when customers receive these discounts,” said Bowler. “In comparison, accident forgiveness, ticket forgiveness and claims-free discounts are less common in the marketplace and have a dramatic impact on satisfaction—each creating more than a 40-point lift in satisfaction with discounts.”

Amica Mutual ranks highest in customer satisfaction with auto insurance companies for a 12th consecutive year, with a score of 843. Erie Insurance (825) and Shelter (816) follow in the rankings. New Jersey Manufacturers Insurance Company and USAA also achieve high levels of customer satisfaction, although they are not included in the rankings due to the closed natures of their respective memberships.

Overall satisfaction averages 790, rebounding from 777 in 2010. This increase is the result of an improvement across all factors driving satisfaction, particularly the billing and payment and interaction factors.

The interaction factor is the most important driver of satisfaction. This study finds the following emerging trends in customer service interaction in 2011:

• More than 80 percent of customers who interact with their insurer through its website were able to complete their entire interaction online.


• Customers who purchase their policy through a call center representative tend to use the insurer’s website as a complementary channel for service needs and interact with their insurer nearly as often through the call center as through the website.


• Customers who use emerging technologies (such as email, online chat or smartphone apps) as complementary channels to their purchase channel are significantly more satisfied than are those using only their purchase channel to meet their service needs. This increase in satisfaction is more pronounced among agent-serviced customers who use these emerging technologies.

To view the management discussion, which examines how digital media is rapidly shaping service expectations of customers now and into the future, based on study findings, please click here.

The 2011 U.S. National Auto Insurance Study is based on nearly 28,000 responses from auto insurance policyholders. The study was fielded between March and May 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

New Jersey Manufacturers Insurance Co. is an insurance provider open only to New Jersey Business & Industry Association members, State of New Jersey employees, NJM’s previously insured drivers, and/or previous/current auto/homeowner policyholders. USAA is an insurance provider open only to U.S. military personnel and their families.

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

Initial Quality of Recent Vehicle Launches is Considerably Lower than in 2010, While Carryover Model Quality is Better than Ever

2011-06-22

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WESTLAKE VILLAGE, Calif.: 23 June 2011 — After an improvement in the quality of newly launched models every year from 2007 to 2010, the initial quality of 2011 new model launches has declined considerably, according to the JD Power and Associates 2011 U.S. Initial Quality Study^SM (IQS) released today. The study has been conducted annually for the past 25 years.

Vehicle Launch Challenges
Overall initial quality improves to an average of 107 problems per 100 vehicles (PP100) in 2011 from 109 PP100 in 2010. However, the initial quality of launch models–those that are all-new or have had major redesigns–worsens by 10 percent to an average of 122 PP100 in 2011 from 111 PP100 in 2010. Conversely, carryover models–those that have had no significant redesign in the past year–have better initial quality than ever before. Owners of these vehicles report an average of just 103 PP100 in 2011, compared with 108 PP100 in 2010. Lower PP100 scores indicate a lower rate of problem incidences and therefore higher initial quality.

“Exciting models with the latest features are crucial for winning over today’s demanding consumers,” said David Sargent, vice president of global vehicle research at JD Power and Associates. “However, automakers must not lose their focus on the importance of these models also achieving exceptional quality levels. Expected reliability continues to be the single-most-important reason why new-vehicle buyers choose one model over another, and no manufacturer can afford to give consumers any doubts regarding the quality of their latest products.”

Only seven all-new or redesigned models rank among the top three of their respective award segments, compared with 17 models in 2010, and only one launch model receives a segment award this year versus five launch models in 2010. Just one-fourth of redesigned models perform better than the outgoing previous-generation model did in 2010, and eight all-new models perform above their respective award segment average.

Software and Technology Challenges
The decline in vehicle launch quality is evident in a number of areas, most notably the engine/transmission and audio/entertainment/navigation categories. There are two primary causes for this quality dec”MsoNormal”> 

• With high fuel prices and more stringent government regulations, automakers are designing engine and transmission software to make their models as economical as possible. However, this sometimes leads to the engine or transmission “hesitating” when accelerating or changing gears, and consumers this year are reporting this as a problem more often than in past years.
• Automakers are also accelerating the introduction of multimedia technology into their models, including hands-free and voice-activation systems. Many consumers are attracted by this type of technology, which is perceived to enhance convenience and safety, but some vehicle owners report that their system is not intuitive and/or does not always function properly.

“Clearly, consumers are interested in having new technology in their vehicles, but automakers must ensure that the technology is ready for prime time,” said Sargent. “Successful companies will be those that can take this incredibly complex technology and make it reliable, seamless and easy for owners to operate while they are driving. There is an understandable desire to bring these technologies to market quickly, but automakers must be careful to walk before they run.”

While overall vehicle quality continues to improve, the introduction of new technology is expected to continue to pose challenges for automakers. Overall problem rates for audio/entertainment/navigation systems in 2011 are 18 percent higher than in 2010 and 28 percent higher than in 2009.

The Initial Quality Study serves as the industry benchmark for new-vehicle quality measured at 90 days of ownership. The study is used extensively by manufacturers worldwide to help them design and build better vehicles and by consumers to help them in their vehicle purchase decisions. Initial quality has been shown throughout the years to be an excellent predictor of long-term durability, which directly impacts consumer purchase decisions. The study captures problems experienced by owners in two distinct categories: design-related problems and defects and malfunctions.

2011 IQS Ranking Highlights
Lexus leads the overall nameplate rankings with 73 PP100 on average. Following in the rankings are Honda (which improves to second rank position in 2011 from sixth in 2010), Acura, Mercedes-Benz and Mazda (which improves to fifth rank position in 2011 from 18th in 2010), respectively. Land Rover posts the largest improvement in 2011, reducing problems by 47 PP100 from 2010.

Honda garners seven segment awards for the Accord, Accord Crosstour, Civic (in a tie), Element, Fit, Insight (in a tie) and Ridgeline. Lexus receives four segment awards for the ES, GS, GX and LS models. For a second consecutive year, the Lexus LS has the fewest quality problems in the industry with just 54 PP100.

Chevrolet, Ford and Mercedes-Benz receive two awards each. Chevrolet receives awards for the HHR and the Tahoe; Ford for the F-150 and the Taurus; and Mercedes-Benz for the GLK-Class and the E-Class cabriolet/coupe. Also receiving segment awards are the Cadillac Escalade; Chrysler Town & Country; Dodge Challenger; and Mazda MX-5 Miata.

Among all-new and redesigned models, the Hyundai Equus and Dodge Durango are notably strong performers, each ranking second in their respective segment.

Assembly Plant Awards
Three assembly plants receive Platinum Plant Quality Awards (in a three-way tie) for producing models yielding the fewest defects and malfunctions: the Toyota Motor Corporation Cambridge South, Ontario, Canada, plant (which produces the Lexus RX); the Toyota Motor Corporation Kyushu 2, Japan, plant (which produces the Lexus ES, IS and RX); and the Honda Motor Company plant in Greensburg, Ind. (which produces the Civic). These plants average just 24 PP100. Plant awards are based solely on average levels of defects and malfunctions and exclude design-related problems.

In the Europe and Africa region, Daimler’s Bremen 1, Germany, and East London, South Africa, plants each receive a Gold Plant Quality Award in a tie. The Bremen 1 plant produces the Mercedes-Benz C-Class, E-Class cabriolet/coupe and GLK-Class, while the East London plant produces the C-Class.

The 2011 U.S. Initial Quality Study is based on responses from more than 73,000 purchasers and lessees of new 2011 model-year cars, trucks and multi-activity vehicles surveyed after 90 days of ownership. The study is based on a 228-question battery designed to provide manufacturers with information to facilitate identifying problems and drive product improvement. The study was fielded between February and May 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

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

Among Customers of Georgia Natural Gas Retailers, Low Customer Satisfaction Leads to Higher Switching Risk

2011-06-15

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WESTLAKE VILLAGE, Calif.: 15 June 2011 — Approximately 15 percent of customers of Georgia natural gas retailers say they plan to switch providers within the next 12 months, while an additional 15 percent indicate they switched within the past year, according to the JD Power and Associates 2011 Georgia Retail Gas Provider Satisfaction Study^SM released today.

The inaugural study measures customer satisfaction with retail natural gas providers in Georgia by examining four key factors (listed in order of importance): price; billing and payment; communications; and customer service. Starting in 1998, the natural gas utility market in the Georgia was deregulated and opened to retail competition. According to the Energy Information Administration, approximately 1.5 million Georgia households are served by retail natural gas providers.

The study finds that customers who indicate they are likely to switch providers are notably less satisfied than those who indicate they are likely to stay with their current provider–by a difference of 125 points on a 1,000-point scale (560, on average, compared with 685).

“Although Georgia has a mature retail gas market, the fact that nearly one-third of customers are switching providers–or contemplating switching–indicates ample opportunity for improving customer satisfaction,” said Chris Oberle, senior director of the energy practice at JD Power and Associates. “There is a clear connection between high levels of satisfaction and increased customer loyalty, both of which are essential for any Georgia gas retailer that wants to retain and grow its customer base.”

Walton EMC ranks highest among retail gas providers in Georgia, achieving a score of 724 and performing well in all four factors. Following in the rankings are SCANA Energy (672)¹ and Gas South (671).

Overall satisfaction among Georgia natural gas retail customers averages 667 in 2011. Customers are particularly satisfied with the customer service (728) and billing and payment (718) factors and are least satisfied with the communications factor (605).

The study also includes the following key findings:

• Approximately 43 percent of customers indicate having phone or online customer service contact with their gas retailer during the past three months. The most frequently cited reasons for contacting the retailer are general billing and payment questions.
• Billing and payment satisfaction is highest among customers who pay their bill through a recurring credit card payment, compared with customers who use other payment methods, including payment through the retailer website, by automatic deduction from a bank account, through their bank’s website or by mail.
• Communications satisfaction is highest among customers who say they received between four and nine communications from their gas retailer during the past three months, compared with customers who received fewer than four or more than nine communications.

The 2011 Georgia Natural Gas Retail Provider Customer Satisfaction Study is based on responses from more than 1,800 customers of natural gas retailers in Georgia. The study was fielded between April and May 2011.

For more information, view Georgia retail gas provider ratings at JDPower.com.

¹SCANA Energy is ranked separately from SCANA Energy Regulated Division. The SCANA Energy Regulated Division provides natural gas service to low-income and elderly customers and to individuals whose credit histories prohibit them from obtaining service from other gas retailers.  

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries.  Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

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

Cisco Recognized for Excellence in Certified Technology Service and Support Program

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WESTLAKE VILLAGE, Calif.: 9 June 2011 — Cisco has achieved certification under the JD Power and Associates Certified Technology Service and Support Program.^SM This distinction recognizes Cisco for delivering “An Outstanding Customer Service Experience” to customers globally. Cisco was previously certified in 2006, 2007, 2008 and 2010.

Jointly developed by JD Power and Associates and the Technology Services Industry Association (TSIA), the program evaluates overall customer satisfaction and helps technology support organizations increase their efficiency and effectiveness in technical service and support. The certification also helps businesses identify those companies that have demonstrated service and support excellence before selecting which technology products to purchase.

“By continually passing rigorous standards of the certification process, Cisco has demonstrated its long-term and comprehensive commitment to excellent customer service and managing a successful business,” said Ritesh Kochhar, senior manager of the Certified Technology Service and Support Program at JD Power and Associates. “Cisco clearly understands the value of high-quality service and support and its impact on creating satisfied customers.”

“Cisco’s CTSS certification for a fifth time is an outcome of their commitment to customer success and to continuously improving their top-quality customer support,” said Joanne Weigel, senior director at TSIA. “This commitment is even further demonstrated by Cisco’s customers, who have confirmed the high quality of support that they can count on.”

To achieve certification, an organization must attain customer satisfaction scores among the top 20 percent of network system companies globally offering technology support, based on JD Power and Associates’ extensive technology industry benchmark customer satisfaction research. The organization must also pass a detailed audit of its support policies and procedures. Certification is valid for one year.

JD Power and Associates evaluated Cisco on its assisted service over the phone and email, as well as its non-assisted web knowledge-based support and depot support. For the certification, JD Power and Associates conducted a survey of Cisco’s global customer base to establish an overall customer satisfaction index score and conducted onsite audits at Cisco facilities.

“Cisco is dedicated to customer and partner success,” said Joe Pinto, senior vice president, Cisco Technical Services. “We strive to exceed their expectations through innovative technology and an exceptional service experience. As the strategic role of the network expands, this prestigious industry recognition reflects our focus on service quality and our unwavering commitment to our customers and partners.”

JD Power and Associates and TSIA are currently evaluating technology service and support organizations across the industry to determine if they are eligible for certification.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

About TSIA
The Technology Services Industry Association (TSIA) is the leading association dedicated to advancing the business of technology services. Technology services organizations large and small look to TSIA for world-class benchmarking and research, exceptional peer networking and learning opportunities, and high-profile certification and awards programs. We keep their business leaders informed and connected through a full range of programs and services that tackle real-world service business challenges, providing real-world solutions. TSIA corporate members represent the world’s top technology companies as well as scores of innovative small and midsize businesses in four major markets: enterprise IT and telecom, consumer technologies and carriers, healthcare and healthcare IT, and industrial automation. TSIA brings the technology services industry together. www.tsia.com

Media Relations Contacts:
John Tews; JD Power and Associates; Troy, Mich.; (248) 312-4119; [email protected]
Suzanne Hite; TSIA, San Diego, Calif.; (410) 774-5322; [email protected]
Erin Hitch; Cisco, San Jose, Calif.; (650) 527-8827; [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 and Associates. www.jdpower.com/corporate

Customer Satisfaction with Airlines Increases for a Second Consecutive Year, but Gains Are Tempered By Dissatisfaction with Costs and Fees among Traditional Network Carriers

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WESTLAKE VILLAGE, Calif.: 8 June 2011 — Although customer satisfaction with airlines has improved for a second consecutive year, dissatisfaction with cost and fees continues to persist, impeding the return of traditional network carriers to pre-recessionary satisfaction levels, according to the JD Power and Associates 2011 North America Airline Satisfaction Study^SM released today.

The study finds that overall customer satisfaction with airlines in 2011 has improved to an average of 683 on a 1,000-point scale, increasing by 10 points from 2010. Among low-cost carriers, satisfaction averages 751 in 2011—achieving a five-year high. However, customer satisfaction with traditional network carriers averages 651—16 points lower than the 2007 average of 667.

For both segments, satisfaction has improved from 2010 in nearly all areas of the customer experience, with the exception of cost and fees.  Compared with 2010, satisfaction with base fares has declined across every airline.  However, satisfaction with costs and fees has improved among low-cost carriers, as a whole, to 725 in 2011 from 723 in 2010. This improvement is driven by increased satisfaction in aspects of the cost and fees measure not related to base fares, particularly among carriers that do not charge for baggage fees for the first checked bag.   Traditional network carriers have not fared as well, declining from 582 in 2010 to a new low of 555 in 2011.  Only Air Canada and Southwest Airlines have improved in the cost and fees factor from 2010. 

As more travelers return to the skies, many airlines have raised fares from the lower rates charged during the recession. Additional fees for food, beverages, baggage, priority boarding and seat upgrades continue to weigh on satisfaction as carriers seek more ways to diversify and grow revenue, helping the industry return to profitability.

In 2011, passengers of both low-cost and traditional network carriers express the highest levels of satisfaction with the check-in and reservation processes since 2006. 

“Despite initial declines in satisfaction with increased automation of check-in and reservations, passengers have adjusted their expectations during the past several years and now appear more satisfied with the convenience and speed that technology has enabled, while airlines benefit from reduced costs and greater efficiencies in these areas,” said Stuart Greif, vice president and general manager of the global travel and hospitality practice at JD Power and Associates. 

The study measures overall customer satisfaction based on performance in seven measures (in order of importance): cost and fees; in-flight services; flight crew; aircraft; boarding/deplaning/baggage; check-in; and reservation. Carriers are ranked in two segments: traditional network and low-cost. Traditional network carriers are generally defined as airlines that operate multicabin aircraft and use multiple airport hubs, while low-cost carriers are airlines that operate single-cabin aircraft with typically lower fares.

Traditional Network Carrier Rankings
Alaska Airlines ranks highest in the traditional network carrier segment for a fourth consecutive year and performs particularly well in four of the seven measures: flight crew; boarding/deplaning/baggage; check-in; and reservation. Air Canada improves significantly from 2010 to rank second in the segment, while Continental Airlines ranks third.  Air Canada performs particularly well in the aircraft, in-flight services and cost and fees measures.

Low-Cost Carrier Rankings
For a sixth consecutive year, JetBlue Airways ranks highest in the low-cost carrier segment. JetBlue Airways performs particularly well in two of the seven measures: aircraft and in-flight services. Southwest Airlines improves considerably from 2010 to rank second in the segment. Southwest performs well in satisfaction with the reservation, check-in, boarding/deplaning/baggage and cost and fees measures.

JD Power and Associates offers the following tips to consumers:

• Many airlines provide apps for mobile devices that allow users to check in for a flight and find out about flight status or cancellations. Check to see if the carrier you plan to fly with offers these apps, which may help expedite your trip even before you get to the airport.
• When booking a flight, realize that your base fare is likely not the only cost you will be charged. Many airlines also include fuel surcharges and may charge fees for seat selection, baggage, entertainment and food and beverages. Compare the total of all of these fees before booking a flight to ensure that you are getting the best deal possible.

The 2011 North America Airline Satisfaction Study measures customer satisfaction among both business and leisure passengers of major North America carriers. The study is based on responses from more than 13,500 passengers who flew on a major North America airline between July 2010 and April 2011. The study was fielded between August 2010 and April 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

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