Category: United States

DSLR Camera Average Online Expenditure Increases 10 Percent from 2011

1970-01-01

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Update:

A previous version of this press release incorrectly stated the increase in year-over-year online expenditures of DSLR cameras. The 2011 study was conducted at the series level and the 2012 study was conducted at the brand level. The 2011 and 2012 data has been normalized at the brand level, resulting in the updated figures below. JD Power and Associates sincerely apologizes for any problems these changes may have caused.

WESTLAKE VILLAGE, Calif.: 28 June 2012 — Online buyers of DSLR cameras make an average online expenditure  of $1,291–a 10 percent increase and up from $1,175 in 2011, according to the JD Power and Associates 2012 Digital Single-Lens Reflex Camera Online Buyer Report^SM released today.

The report examines satisfaction with digital single-lens reflex camera brands among verified online buyers. Responses were collected via PowerReviews–a social commerce network recently acquired by Bazaarvoice–and reflect the attitudes of actual DSLR camera owners who used an e-commerce site to make their purchase. The study measures satisfaction with DSLR cameras 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).

Pentax ranks highest in online buyer satisfaction with a score of 899 (on a 1,000-point scale), followed closely by Nikon (891) and Canon (888). Pentax performs particularly well in durability and reliability; variety of features; ease of operation; and shutter speed/lag time, while Canon performs well in the picture quality factor.

“Pentax’s customer base has shifted since 2011 from casual photographers to those who consider themselves semiprofessional or professional photographers,” said Sara Wong Hilton, director at JD Power and Associates. “In fact, across the industry, the results indicate a slight increase in self-identified semiprofessional photographers, possibly leading to the purchase of more high-end camera systems.”

Despite a shift in DSLR camera buyer demographics, overall satisfaction remains stable (888 in 2012 compared with 887 in 2011).

The 2012 Digital Single-Lens Reflex Camera Online Buyer Report is based on responses provided to JD Power and Associates through PowerReviews from more than 8,100 verified buyers who purchased a DSLR camera online. The study was fielded from May 2011 through April 2012.

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 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

About Bazaarvoice

Bazaarvoice, a leading social software company, brings the voice of customers to the center of business strategy for nearly 1,800 clients globally like Best Buy, Costco, Dell, Macy’s, P&G, Panasonic, QVC, and USAA. Bazaarvoice helps clients create social communities on their brand websites and Facebook pages where customers can engage in conversations. These conversations can be syndicated across Bazaarvoice’s global network of client websites and mobile devices, which allows manufacturers to connect directly with customers. The social data derived from online word of mouth translates into actionable insights that improve marketing, sales, customer service, and product development. Headquartered in Austin, Texas, Bazaarvoice has offices in Amsterdam, London, Munich, New York, San Francisco, Paris, Stockholm, and Sydney. For more information, visit www.bazaarvoice.com, read the blog at www.bazaarvoice.com/blog, and follow on Twitter at www.twitter.com/bazaarvoice.

JD Power and Associates Media Relations Contacts:

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

Bazaarvoice Media Relations Contacts:
Emily Brady, Brady PR; (650) 692-6107; [email protected]

Follow us on Twitter: @JDPower

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

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Introduction of EPA Emission Standard-Compliant Engines Impacts Class 8 Quality and Satisfaction

1970-01-01

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WESTLAKE VILLAGE, Calif.: 27 June 2012 — The introduction of engines that meet revised EPA regulations is once again taking a toll on heavy-duty truck quality and customer satisfaction, as customers are reporting more problems with their truck engine, according to the JD Power and Associates 2012 U.S. Heavy-Duty Truck Customer Satisfaction Study^SM released today.

Overall customer satisfaction with heavy-duty trucks declines to 737 index points on a 1,000-point scale in 2012, compared with 751 in 2011, primarily due to an increase in the number of problems experienced. The study finds that quality of Class 8 trucks that are one model year old has decreased, with problem levels rising 9 percent to 223 problems per 100 trucks (PP100) in 2012, up from 204 PP100 2011. Overall quality is determined by the level of problems experienced per 100 trucks, with a lower score reflecting higher quality. Much of the overall quality decline is attributed to a higher rate of engine- and fuel-related problems, which have increased by 14 percent from 2011 (81 PP100 vs. 71 PP100, respectively).

The most problematic engine and fuel problems are driven by technology that is designed to reduce emissions from heavy-duty truck engines.  

“Following the revised EPA regulations in 2007, there was an increase in problems and a decline in customer satisfaction, and we anticipated the same thing would happen with the introduction of 2010 EPA-compliant engines,” said Brent Gruber, director of the commercial vehicle practice at JD Power and Associates.  “Emission-related technology results in a high rate of problems, particularly with ECM calibration, exhaust gas recirculation (EGR) valves and engine sensors. The new, more complex engines are resulting in more problems and downtime.”

Vocational truck customers experience an average of 2.2 unscheduled maintenance procedures per year, resulting in an average of 7 days of downtime, while on-highway owners report an average of 2.9 unscheduled maintenance procedures, or an average of 7.7 days of downtime.

“Engine reliability has the greatest impact on overall product satisfaction, so it’s vital that truck and engine manufacturers work quickly to reduce the number of problems related to the emission technologies,” said Gruber. “The truck brands of European companies have fewer problems, specifically, those related to the technology required to meet the emission standards, because they have been using the technology for years in other markets.”

Gruber explains that since 2008, Europe has had emission standards similar to those enacted in the U.S. market in 2010, so manufacturers that build heavy-duty trucks for that market have the advantage of applying technology proven in Europe in its U.S. models.  As a result, brands such as Freightliner and Volvo earn above-average satisfaction for engine reliability and dependability, as well as fewer engine- and fuel-related problems than industry average. On average, truck brands owned by U.S. companies experience 22 percent more engine- and fuel-related problems than their competitors owned by European companies (89 PP100 vs. 73 PP100, respectively).

The study measures the satisfaction of primary maintainers of Class 8 heavy-duty trucks that are one model year old in two product segments, on highway and vocational. In each segment, satisfaction is determined by examining six key factors: cab/body; cost of operation; engine; ride/handling/braking; transmission; and warranty.

Freightliner ranks highest in heavy-duty truck customer satisfaction in both the on-highway and vocational segments.

In the on-highway segment, which evaluates long- and short-haul trucks, Freightliner ranks highest with an index score of 750 and performs particularly well in all six factors.  Volvo ranks second (739), while Peterbilt ranks third (736).

In the vocational segment, Freightliner ranks highest with an index score of 789.  International ranks second (766) and Peterbilt ranks third (753).

The study also measures satisfaction with service received from authorized truck dealers by examining six factors: service advisor; service delivery; service facility; service initiation; service price; and service quality.

Kenworth ranks highest in Class 8 customer satisfaction with dealer service for a second consecutive year.  Kenworth, with an index score of 804, performs particularly well across all factors. Following Kenworth in the rankings are Freightliner (802) and Volvo (784).

The 2012 U.S. Heavy-Duty Truck Customer Satisfaction Study is based on responses from 1,725 primary maintainers of one-model-year-old Class 8 heavy-duty trucks. The study was fielded in April and May 2012.

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 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

Follow us on Twitter: @JDPower

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

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Auto Insurance Customer Satisfaction Reaches an All-Time High, Driven by Satisfaction with Policy Offerings

1970-01-01

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WESTLAKE VILLAGE, Calif.: 25 June 2012 — Led primarily by increases in satisfaction with policy offerings and billing and payment, overall customer satisfaction with auto insurance companies has reached an all-time high, according to the JD Power and Associates 2012 U.S. 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. Overall satisfaction with auto insurance companies is 804 (on a 1,000-point scale), up 14 points from 2011. Satisfaction levels in 2012 are the highest since the study was launched in 2000.

Satisfaction increases in all factors in 2012, with significant improvements in policy offerings (+30 points) and interaction (+19 points). Satisfaction with price is essentially unchanged from 2011.

“Although satisfaction with price remains consistent from 2011, auto insurance companies have made great strides in all other areas,” said Jeremy Bowler, senior director of the insurance practice at JD Power and Associates. “Specifically in the area of policy offerings, a number of insurance companies place an emphasis on product differentiation in their advertising and packaging of discounts and offerings.”

The Most Satisfied Customers Are More Willing to Tolerate Rate Hikes, to a Point

The study finds that 20 percent of customers have experienced an insurer-initiated rate increase from 2011, with 63 percent of these customers experiencing an increase of $50 or more. Satisfaction among customers whose premiums increase by at least $50 is 735, compared with 797 among those experiencing an increase of less than $50.

“Among customers whose insurers meet or exceed all their service expectations, modest rate increases appear to be well tolerated, provided the rate adjustment amounts to less than $50. However, larger rate adjustments may trigger customers to consider shopping for a new insurer, especially those customers who are less engaged with their insurance company,” said Bowler. “One method auto insurers can use to mitigate dissatisfaction with increasing rates is to proactively communicate the rate change prior to the renewal notice, and engage in discussions with customers regarding their options.”

Discussing rate increases with customers and offering options may have a positive effect on satisfaction. Of auto insurance customers receiving a rate increase, 56 percent were not notified prior to the renewal notice, among whom satisfaction is 746. Conversely, satisfaction among customers who were notified prior to a rate increase and had a discussion with their insurer is 807.   

Social Media Insurance Rate Chatter

Research conducted by JD Power’s Consumer Insight and Strategy Group¹ finds that a significant proportion of social media comments on the topic of personal auto insurance rate hikes indicate a strong desire to switch insurers, or to begin the shopping process. Additionally, many ask peers whether they have experienced similar results with a specific insurer or whether they would recommend another insurer altogether.

“Our research shows that most customers who shop for insurance ultimately do not switch. However, among those who are driven to shop because they are dissatisfied with the service they receive, three of four will keep shopping until they find a new insurer. With many insurers filing new property and auto rates across the country, a growing proportion of customers are starting to receive rate increase notifications, often a catalyst for shopping behavior,” Bowler said. “Proactively notifying customers and discussing options may help mitigate disappointment and shopping for insurance.”  

The study measures satisfaction with auto insurance companies in seven regions. Study results by region are:

California Region: Wawanesa ranks highest among award-eligible insurers in the California region with a score of 823, followed by Automobile Club of Southern California (AAA) (807) and State Farm (806).

West Region: State Farm (837) ranks highest among award-eligible insurers in the West region, and is the only award-eligible insurer to perform above regional average.

Central Region: Texas Farm Bureau (857) ranks highest among award-eligible insurers in the Central region, followed by State Farm (832) and GEICO (830).

Southeast Region: Farm Bureau Insurance – Tennessee (828) ranks highest among award-eligible insurers in the Southeast region, followed by North Carolina Farm Bureau (823) and State Farm (821).

North Central Region: Auto-Owners Insurance and State Farm (in a tie at 828 each) rank highest among award-eligible insurers in the North Central region, followed by Erie Insurance (823).

Northeast Region: Amica Mutual (867) ranks highest among award-eligible insurers in the Northeast region,  followed by New York Central Mutual (811) and GEICO (793).

Mid-Atlantic Region: Erie Insurance (834) ranks highest among award-eligible insurers in the Mid-Atlantic region, followed by State Farm (813).

Customer satisfaction varies from an average high of 814 in the Southeast region to a low of 784 in the Northeast region. While the Southeast region achieves the highest scores in interaction, billing and payment, policy offerings and claims, the West region performs particularly well in price.

To view the management discussion, which examines the shifting service channel behaviors in the auto insurance marketplace, as well as the impact they have on customer satisfaction, please click here.

The 2012 U.S. Auto Insurance Study is based on nearly 35,000 responses from auto insurance customers. The study was fielded between March and May 2012.

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 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

Follow us on Twitter: @JDPower

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

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August New-Vehicle Retail Sales Show Strength Amid Weak Economic Growth and Consumer Uncertainty

1970-01-01

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WESTLAKE VILLAGE, Calif.: 24 August 2012 — The August new-vehicle selling rate is expected to be the highest monthly rate in more than four and one-half years, according to a monthly sales forecast developed by JD Power and Associates’ Power Information Network(R) (PIN) and LMC Automotive.

Retail Light-Vehicle Sales

August new-vehicle retail sales are projected to come in at 1,066,200 units, which represents a seasonally adjusted annualized rate (SAAR) of 12.3 million units. The year-over-year growth rate in retail sales continues a double-digit trend for a fourth consecutive month. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

“August continues this summer’s trend of healthy growth in retail sales as dealers work to sell down inventory in time to make room for 2013 models,” said John Humphrey, senior vice president of global automotive operations at JD Power and Associates. “To date, automakers have been diligent in better balancing production with demand, which has been critical to the improved financial performance for many brands.  Going forward, this discipline will be tested as demand looks to cool somewhat through the balance of the year.”

While incentives are down slightly in August, compared with July ($106 less per vehicle, on average), there are deals driving some activity as the model-year sell down takes hold. Consumers are pushing aside the economic risks, as the need to replace their current vehicle is matched by availability of both inventory and credit.

Total Light-Vehicle Sales

Total light-vehicle sales remain stable, with the volume in August expected to come in at 1,285,300 units, a 16 percent increase from August 2011. Fleet represents only 17 percent of total light-vehicle sales, which is lower than the 21 percent year-to-date average.

[1] Figures cited for August 2012 are forecasted based on the first 16 selling days of the month.
[2] The percentage change is adjusted based on the number of selling days in the month (27 days in August 2012 vs. 26 days in 2011).

Sales Outlook

LMC Automotive recently revised the outlook for total light-vehicle sales in the United States downward to 14.3 million units from 14.5 million units, with retail sales at 11.4 million units, down from 11.5 million units. Weaker economic growth and concerns with the European crisis are the driving factors for slower growth during the second half of the year. The industry is still expected to achieve the 15-million-unit level in 2013, but the outlook has been tempered from a projected 15.2 million units, as the risks in 2012 spill over into next year.

“The strength in August light-vehicle sales takes some of the pressure off expectations for the balance of the year, but a high level of risk lingers,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “We expect the current seesawing in auto sales to continue for the foreseeable future, but the overall picture in 2012 remains positive.”

North American Production

North American light-vehicle production volume has increased by 23 percent through the first seven months this year, compared with the same period in 2011. The increase of nearly 1.7 million additional vehicles highlights the industry’s recovery from the challenging production environment in 2011.

Production for Honda and Toyota in the first seven months of 2012 are up 79 percent and 65 percent, respectively, as recovery by both manufacturers takes hold. U.S. manufacturing growth is outpacing the rest of the North American region, with a 27 percent year-to-date increase as newer capacity drives the growth. Production in Mexico has increased 14 percent, with further growth expected as new key models ramp up. Canadian manufacturing has increased 20 percent year to date, but the level of future volume is at risk, as the domestic manufacturers and CAW begin labor negotiations.

Vehicle inventory in early August declined slightly to a 54-day supply, compared with 58 days in July. Car inventory remains at a below-normal level with a 47-day supply, down from 49 days in July. Truck inventory is at normal levels with a 61-day supply, down from 67 days in July.
 
“With the robust production activity outpacing the increases in demand, North American volume is approaching the 15.0-million-unit level for the first time since 2007,” said Schuster. “However, given that inventory has normalized and growth in demand is expected to slow, LMC Automotive is holding the forecast for 2012 at 14.9 million units for the year.”

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 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

About LMC Automotive

LMC Automotive, formerly JD Power Automotive Forecasting, is the premier supplier of automotive forecasts and intelligence to an extensive client base of automotive manufacturer, component supplier, logistics and distribution companies, as well as financial and government institutions around the world. LMC’s global forecasting services encompass automotive sales, production and powertrain expertise, as well as advisory capability. LMC Automotive has offices in the United States, the UK, Germany, China and Thailand and is part of the Oxford, UK-based LMC group, the global leader in economic and business consultancy for the agribusiness sector.  For more information please visit www.lmc-auto.com.

Media Relations Contacts:

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]
Emmie Littlejohn; LMC Automotive; Troy, Mich.; (248) 817-2100; [email protected]

Follow us on Twitter: @JDPower

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

# #

EPA Emission-Compliant Engines Increase in Problems, Decline in Satisfaction

1970-01-01

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WESTLAKE VILLAGE, Calif: 23 August 2012 —Technology changes related to revised emissions standards for heavy-duty trucks are causing an increase in heavy-duty truck engine problems and a decrease in overall satisfaction with the powertrain, according to the JD Power and Associates 2012 U.S. Heavy-Duty Truck Engine and Transmission Study^SM released today.

Now in its 16th year, the study measures satisfaction with engines and transmissions among primary maintainers of heavy-duty (Class 8) trucks that are one model-year old. Satisfaction is measured based on eight key factors: engine reliability and dependability; engine warranty; acceleration when fully loaded; electronic control module; accessibility to components for service or maintenance; vibration at idle; maintaining speeds on grades; and average fuel economy.

Technology designed to reduce emissions and make heavy-duty truck engines compliant with the 2010 EPA regulations is resulting in more heavy-duty truck owners experiencing problems with the engine. The study finds that 46 percent of owners of heavy-duty trucks that are one model-year old report experiencing some type of engine-related problem, up from 42 percent in 2011. The most commonly reported problems are issues with the electronic control module calibration (cited by 23 percent of owners), exhaust gas recirculation (EGR) valve (20 percent), and electronic engine sensors (16 percent).

In addition, the average number of engine- and fuel-related problems has increased to 81 problems per 100 vehicles (PP100) from 71 PP100 in 2011.  The rise in problems has impacted overall engine satisfaction, which declines to 719 index points on a 1,000-point scale in 2012, compared with 739 in 2011.
 
“At the industry level, the new, more complex engines designed to meet EPA regulations are resulting in additional problems and downtime, which also has a financial impact on owners because they’re not making money when their truck is down for service,” said Brent Gruber, director of the commercial vehicle practice at JD Power and Associates.  

However, Gruber adds that once manufacturers resolve quality issues related to the new technology, customers may expect to see some added benefits from the new engines. In the on-highway segment, the average reported engine service interval has increased to 22,703 miles in 2012, up from 20,303 in 2011. Additionally, maintainers of heavy-duty on-highway trucks report a 4 percent increase in fuel efficiency this year, averaging 6.3 miles per gallon (mpg) in 2012, compared with 6.0 mpg in 2011.

“The new engines are proving to be more fuel efficient and allowing greater up-time between service, so despite initial quality issues, the new technology may offer a greater return on investment in the long run,” said Gruber.
 
Detroit¹ engines rank highest in customer satisfaction with a score of 753–a 20-point improvement from 2011–and performs particularly well in the engine reliability and dependability factor. Cummins ranks second at 729 and Caterpillar third at 721.

Overall satisfaction with heavy-duty truck transmissions averages 812 in 2012, down eight points from 2011.
The decline is largely attributed to lower satisfaction with the reliability and dependability of the transmission and drivetrain. This decline in satisfaction comes despite transmission-related quality actually improving to 7 PP100 in 2012, down from 10 PP100 in 2011.

The 2012 U.S. Heavy-Duty Truck Engine and Transmission Study is based on the responses of 1,725 primary maintainers of Class 8 heavy-duty trucks that are one model-year-old. The study was fielded between February and May 2012.

¹ Detroit is formerly known as Detroit Diesel.

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 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

Follow us on Twitter: @JDPower

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

# # #

Wireless Customers Using 4G LTE Technology-Enabled Devices Experience Fewer Problems Than Those Using 3G and Other 4G-Enabled Devices

1970-01-01

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WESTLAKE VILLAGE, Calif.: 23 August 2012 — Wireless customers who use 4G LTE-enabled devices experience fewer data-related issues, especially with slow connection speeds, than do customers who use 3G and other 4G-enabled devices, according to the JD Power and Associates 2012 U.S. Wireless Network Quality Performance Study^SM–Volume 2 released today.

Now in its 10th year, this semiannual study evaluates wireless customers’ most recent usage activities in three areas that impact network performance: calling, messaging and data. Overall network performance is based on 10 problem areas that affect the customer experience (in order of importance): dropped calls; calls not connected; audio issues; failed/late voicemails; lost calls; text transmission failures; late text message notifications; Web connection errors; email connection errors; and slow downloads. Network performance issues are measured as problems per 100 (PP100) network connections, with a lower score reflecting fewer problems and better network performance. Carrier performance is examined in six geographic regions: Northeast; Mid-Atlantic; Southeast; North Central; Southwest; and West.

The study finds that the number of data-related problems, especially those related to slow connection speeds, is significantly lower among customers using 4G LTE-enabled devices than among those using devices with older 3G/4G technology standards, such as WiMAX and HSPA+.  For example, among customers with 4G LTE-enabled devices, the problem incidence for excessively slow mobile Web loading is 15 PP100, compared with the industry average of 20 PP100. Furthermore, the overall problem incidence for excessively slow mobile Web loading is even higher among customers with WiMAX and HSPA+ technology (22 PP100 and 23 PP100, respectively). There are no substantial differences in problem rates for other data-related issues between 4G LTE and WiMAX and HSPA+ technologies, such as Web and email connection errors.

“It’s very interesting to see the stark performance differences between the newest generation of network technology,4G LTE, and other network services that were the first offerings of 4G-marketed devices in early 2011,” said Kirk Parsons, senior director of wireless services at JD Power and Associates. “With the network advantages of using 4G LTE technology, in terms of spectrum efficiencies and increase in data connection speeds and reliability, it’s not unexpected that wireless carriers are rushing to expand and upgrade their networks to align with this latest generation of service.”

According to Parsons, improving network performance, especially for customers using 4G LTE devices, may translate into incremental revenue by not only increasing monthly spending, but also lowering churn rates.  For example, the average monthly reported wireless bill among 4G LTE customers is $6 more than the average for smartphone customers ($131 vs. $125, respectively). This includes spending on additional data plan service such as mobile hotspots, for which the adoption rate among 4G LTE customers is 35 percent higher than among customers who have 3G and other 4G-enabled devices.  In addition, the likelihood of switching among 4G LTE customers is significantly lower than among smartphone customers using other network technology (11% vs. 15%, respectively).

“Based on varying degrees of consistency with overall network performance, it’s critical that wireless carriers continue to invest in improving both the voice quality and data connection-related issues that customers continue to experience,” said Parsons.

For a 16th consecutive reporting period, Verizon Wireless ranks highest in the Northeast region. Verizon Wireless achieves fewer customer-reported problems with dropped calls, initial connections, transmission failures and late text messages, compared with the regional average. Verizon Wireless also ranks highest in the Mid-Atlantic, Southeast and West regions.

U.S. Cellular ranks highest in the North Central region for a 14th consecutive reporting period. Compared with the regional average, U.S. Cellular has fewer customer-reported problems with dropped calls, failed initial connections, audio problems, failed voice mails and lost calls.

The 2012 U.S. Wireless Network Quality Performance Study–Volume 2 is based on responses from 26,695 wireless customers. The study was fielded between January and June 2012.

For more information on customer satisfaction with wireless service, wireless retail sales, cell phone handsets, customer care, prepaid wireless service and business wireless service, please visit JDPower.com.

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 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

Follow us on Twitter: @JDPower

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

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Stability in the Credit Card Industry Boosts Customer Satisfaction for a Third Consecutive Year

1970-01-01

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WESTLAKE VILLAGE, Calif: 23 August 2012 — After several years of dramatic changes due to legislation, increased fees and limited credit availability, there finally is stabilization in the credit card industry, and the stability is reflected in a third consecutive year of increased credit card customer satisfaction, according to the JD Power and Associates 2012 U.S. Credit Card Satisfaction Study^SM released today.

The study, now in its sixth year, measures customer satisfaction with credit cards by examining six key factors: interaction; credit card terms; billing and payment process; rewards; benefits and services; and problem resolution.

Overall credit card satisfaction averages 753 on a 1,000-point scale in 2012, up from 731 in 2011and 714 in 2010.  The 39-point improvement over the three-year period raises credit card customer satisfaction to its highest level since the study’s inception and is on par with overall retail banking customer satisfaction, which has improved 5 points during the same time frame.

“There has not been a lot of change in the past year in fees, credit limits and card terms–the things that often affect customers in a negative way,” said Jim Miller, senior director of banking services at JD Power and Associates.  “After a series of dramatic changes, credit card customers are enjoying a time of stability.”

The study finds satisfaction improvements year over year in all factors.  Satisfaction with problem resolution has the largest satisfaction increase, a 31-point improvement, while satisfaction with rewards increases by 28 points.

Only 11 percent of customers report experiencing a problem with their credit card, down from 18 percent in 2009. In comparison, 21 percent of customers report a problem with their retail bank¹,  and 37 percent of small business owners report bank-related problems.²

Credit card companies have significantly improved handling customer problems year over year.  Issuers have reduced the average length of time to resolve problems in 2012 to four days from five days in 2011.  In addition, the study finds that credit card representatives are more likely to provide time frames for resolution, and those time frames are more likely to be met in 2012, compared with 2011.  

A majority (84%) of credit card customers had their problems resolved in 2012, up from 82 percent in 2011.  In addition, 61 percent of customers had their problems resolved in the first contact.   

The study finds that satisfaction is significantly higher (801) among customers who have their problem resolved by just one person on the same day they contact their issuer, compared with 693 for people who were transferred and resolution took more than one day. Even if resolution takes more than one day, satisfaction is significantly higher (755) when the problem is resolved by just one person, compared with customers who were transferred (743).  

“Although credit card companies have been criticized for some of their business practices, when we look at overall customer satisfaction, they’re doing a good job,” said Miller. “It is evident in the 2012 study that credit card companies have really done a great job in handling problems and achieving quicker resolution.”

Among customers who have had a credit card problem, 24 percent have experienced credit card fraud–the most commonly reported problem.  More than one-half (52%) of customers who experienced credit card fraud were contacted by their issuer before they even realized they were a victim of fraud.  Overall satisfaction among this segment of customers increases to 784, compared with customers who weren’t contacted by their issuer before discovering they were a victim of fraud (724).

 “Credit card companies are very proactive in detecting credit card fraud and protecting their customers,” said Miller. “In fact, when their credit card company detects fraud, it actually improves customer satisfaction.  It’s still disruptive to the customer, but the customer appreciates that their card company is looking out for their best interests.”

Credit card companies also are doing a good job communicating their rewards programs, as 66 percent of customers in 2012 say they “completely” understand how to earn rewards, and 80 percent of customers say they “completely” understand how to redeem their rewards. In addition, more credit card customers in 2012 than in 2011 are likely to indicate that the value of their rewards programs has increased (18% vs. 15%, respectively) and also report fewer reward expirations (24% vs. 28%, respectively).

Online usage continues to increase, as 78 percent of customers in 2012 indicate they use their issuers’ websites, an increase from 76 percent in 2011. Additionally, customers in 2012 report accessing their issuer’s websites an average of 40 times per year, primarily to conduct simple transactions and to resolve problems.

While only 7 percent of credit card customers use their mobile phone to complete transactions–up from 4 percent in 2011–satisfaction is highest among customers who use mobile means to interact with their issuer, compared with customers who use any of the other interaction channels, including the Internet.  

“It’s important for credit card companies to offer mobile phone options, such as downloadable apps and text alerts, as customers who utilize their mobile phone for credit card activities are more satisfied and are significantly more likely to understand their credit card terms,” said Miller.  “The challenge for credit card issuers is to make sure customers are aware of the mobile application options they offer.”

“With the amount of traffic on their websites, it is important for credit card companies to provide customers with the necessary tools to track rewards, payments and expenses, and get help through online chat,” said Miller.  “Customers who indicate the availability of these online tools also have greater understanding of card terms and rewards, which increases overall satisfaction.”

American Express ranks highest in customer satisfaction for a sixth consecutive year with a score of 807 and performs particularly well in the interaction and rewards factors. Discover Card follows with a score of 799, and performs well in the problem resolution and benefits and services factors. Chase ranks third with 762.

JD Power and Associates offers the following tips to consumers regarding selecting a credit card issuer:

• Pick a card that best fits your habits. When shopping for a credit card, think about your credit card habits. Do you tend to carry a balance over time (referred to as revolvers) or pay your balance off every month (referred to as transactors)?  Revolvers should look for the most competitive credit terms on
• balances and payments instead of an attractive rewards program. Transactors, however, should consider rewards programs that make it easy to both earn and redeem rewards.
• Shop around.  Now that the industry has stabilized, credit card companies are looking to acquire new customers.  That means there are a lot of rich reward programs available to potential customers.  Visit credit card company websites to get information on rewards programs, services and benefits available.  Do not overlook online blogs and independent websites, including JDPower.com, that objectively evaluate card issuers and program terms and include customer feedback.
• Be proactive. If you already have a credit card, read your monthly billing statement. If there is anything on the statement you don’t understand, contact your credit card company. Monthly statements also often include information on rewards and benefits, or new offers your card is providing.  If you toss the statement without reading it, you may be losing out on award opportunities.
• Utilize what your credit card offers. Satisfaction is higher among customers who take full advantage of their card’s services and benefits than among those who don’t.  Most credit card companies offer a number of services, such as online statements and bill payments, mobile apps, due date selection and alerts. Some companies offer other benefits, such as early purchase of concert or event tickets, discounts at hotels and concierge services at airports.  If you aren’t aware of all the benefits your card offers, visit the issuer’s website or call customer service.

The 2012 U.S. Credit Card Satisfaction Study is based on responses from more than 13,726 credit card customers. The study was fielded in June 2012.

¹ JD Power and Associates 2012 U.S. Retail Banking Satisfaction Study^SM
2 JD Power and Associates 2011 U.S. Small Business Banking Satisfaction Study^SM

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 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

Follow us on Twitter: @JDPower

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

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Buying a Compact Vehicle Doesn’t Mean Compromising on Seat Quality and Features or Satisfaction

1970-01-01

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WESTLAKE VILLAGE, Calif: 16 August 2012 — Owners are buying a higher number of small vehicles that have more seat features than previous models, and they are more satisfied with the quality of seats, according to the JD Power and Associates 2012 U.S. Seat Quality and Satisfaction Study^SM released today.

Market share for compact and subcompact models has grown to 35.4 percent in the first seven months of 2012 from 32.0 percent during the same period in 2008¹.In addition, 27 percent of new-vehicle owners replaced their vehicle with a smaller 2012 model².

Along with the sales growth in compact and subcompact models, the market penetration of seat features in those vehicles has also increased.  The study finds that market penetration in the compact and subcompact vehicle segments for heated seats has increased by 16 percentage points, compared with the 2008 study, while penetration for leather seats has increased by 10 percentage points, memory seats by three percentage points and cooled/ventilated seats by two percentage points.
 
Vehicle owner satisfaction with seats is also increasing. Seat satisfaction among compact and subcompact vehicle owners averages 7.5 points on a 10-point scale, which is significantly higher than the 2008 study, as are ratings for seat material conveying an impression of quality (7.4) and seat styling (7.6).

“Owners have high expectations for their vehicle, and purchasing a smaller vehicle doesn’t mean they want to forego amenities, especially regarding seats,” said Mike VanNieuwkuyk, executive director of global automotive at JD Power and Associates.  “A vehicle’s interior has been growing in importance to vehicle owners, and seats are paramount to driver and passenger comfort.”

According to the JD Power and Associates 2012 Initial Quality Study^SM (IQS), interior comfort is the second-most-common reason owners cite for selection of their new vehicle.

“Automakers are doing a good job of recognizing the importance of seat comfort and quality, identifying suppliers to provide the best seats available and integrating them into the vehicle,” said VanNieuwkuyk. “That’s evident by the steady increase in seat satisfaction since 2008.”

While overall satisfaction with seats has increased, seat quality remains flat at 5.5 problems per 100 vehicles (PP100), compared with 2011, but has improved from 6.2 PP100 in 2008. A lower score indicates higher quality.

Satisfaction with headrests has improved slightly from 2011, specifically headrest adjustment controls that are difficult to understand or use.  Headrests have a significant impact on vehicle owner loyalty and satisfaction, and satisfaction declines when owners experience problems.  

Among owners who did not experience a headrest-related problem, overall satisfaction averages 7.9, compared with only 6.7 among owners who did experience a headrest problem.  In addition, 73 percent of owners who did not experience headrest problems say they “definitely will” recommend their vehicle to family and friends, and 46 percent say they “definitely will” repurchase a vehicle of the same brand the next time they shop for a new vehicle.  However, among owners who experienced one or more headrest-related problems, only 47 percent say they “definitely will” recommend their vehicle and 27 percent say they “definitely will” purchase the same brand for their next vehicle.

Although fewer than 30 percent of owners have memory seats, cooled/ventilated seats, adjustable sliding rear seats or adjustable reclining rear seats in their current vehicle, more than 90 percent of those owners say they would like to have those features in their next new vehicle.  In addition, the majority of owners who have fold-down rear seats, heated seats, power lumbar support or height-adjustable seat belts in their current vehicle indicate they would want these features again in their next vehicle.

While seat satisfaction has steadily improved during the past few years, interest in seat features continues to grow.  “Seats are a constant touch point for vehicle owners, and is central to providing a comfortable experience,” said VanNieuwkuyk. “Owners clearly are looking for more features and comfort from their vehicle seats, and it is evident there is an opportunity to raise the bar.”

Seat Supplier Quality Rankings

Avanzar Interior Technologies, Ltd.–a joint venture between Johnson Controls and SAT Auto Technologies, Ltd.–and TS Tech Co., Ltd. rank highest in a tie for seat quality, each with 3.3 PP100. This is the third consecutive year Avanzar ranks highest in seat quality.

Toyo Seat ranks third (4.0 PP100), followed by NHK Spring Co., Ltd. (4.6 PP100) and Daewon Sanup Co. (4.8 PP100)

Among suppliers that perform well in overall seat satisfaction are Bridgewater Interiors, LLC.; Faurecia; Lear Corporation; Magna; and Toyota Boshoku Corporation.

The 2012 U.S. Seat Quality and Satisfaction Study provides automotive manufacturers and suppliers with quality and satisfaction information related to automotive seating systems. New-vehicle owners are asked to rate the quality of their vehicle seats and seat belts based on whether or not they experienced defects/malfunctions or design problems during the first 90 days of ownership. The study is based on responses from more than 74,700 owners of new 2012 model-year cars and light trucks. The study was fielded between February and May 2012.

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 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

Follow us on Twitter: @JDPower

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

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¹ Source: LMC Automotive.  Includes the sub-compact conventional, compact conventional, compact CUV, compact MPV, compact sporty and compact utility segments.

² Source: JD Power and Associates 2012 U.S. Automotive Performance, Execution and Layout (APEAL) Study^SM

Deregulation of Texas Retail Electric Market Leads to Increasingly Satisfied Customers; Texas Electric Customers Are Now More Satisfied With Electric Retailers than With Regulated Utilities

1970-01-01

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WESTLAKE VILLAGE, Calif.: 15 August 2012 — Customers in Texas who are able to choose their electric provider are increasingly more satisfied with their provider than are those who do not have a choice, according to the JD Power and Associates 2012 Texas Residential Retail Electric Provider Customer Satisfaction Study^SM released today.

The study, now in its fifth year, measures customer satisfaction with retail electric service providers in Texas by examining four key factors (listed in order of importance): price; billing and payment; communications; and customer service.

Overall satisfaction among residential customers of electric retailers in Texas is 678 (on a 1,000-point scale), an increase of 44 points from 2010. This is the highest level since the study was first published in 2008. Moreover, this is the first time satisfaction among customers with a retail choice of electric providers exceeds both the Texas and U.S. national averages for all factors measured in the study. Among Texas customers with regulated residential electric service,  satisfaction is 646. Regionally, satisfaction among customers in the Metropolitan Dallas/Fort Worth area is 677, compared with 681 among those in the Houston area, three points higher than the statewide average.  

At the factor level, satisfaction with customer service has increased the most from 2011, up 45 points to 744. Contributing to the significant increase in customer service satisfaction are improvements in call center performance (+47 points) and online customer service (+38). Satisfaction has increased in the other three factors as well: price (+20 points); communications (+19) and billing and payment (+16).

“Many electric retailers in Texas are considering how to better serve their customers when they are contacted,” said Andrew Heath, senior director of the energy and utility practice at JD Power and Associates. “The large improvements show that electric retailers are putting practices in place that improve satisfaction, which helps retain customers.”

Satisfaction is 218 points higher when customers’ questions or problems are resolved on the first call, compared with when their questions or problems require two or more calls for resolution (799 vs. 581, respectively). Similarly, online customer service interactions echo the need for quick resolution, as satisfaction with customer service is 800 among customers whose questions or problems are resolved on their first visit to the website, compared with 644 when problem resolution requires two or more visits.

“Customers do not want to spend much time getting an answer or fixing a problem with their bill or service,” said Heath. “The dramatic increase in satisfaction for first-contact resolution is a clear indicator that Texas electric companies should strive to quickly resolve issues or questions.”

Among customers who are aware of their retailer electric provider’s corporate citizenship efforts–such as supporting local organizations or volunteering in the community–satisfaction averages more than 60 points higher than among those who are not aware of such efforts.

Texas Residential Electric Retail Results

Champion Energy Services ranks highest among retail electric utility providers in Texas for a third consecutive year with a score of 756. Champion Energy Services performs particularly well in billing and payment, price and customer service. Following in the rankings are Bounce Energy (745) and StarTex Power (729).

The 2012 Texas Residential Retail Electric Provider Customer Satisfaction Study is based on responses from 7,619 residential customers of electric retailers in Texas. The study was fielded between September 2011 and June 2012.

For more information, view Texas residential retail electric service provider ratings at JDPower.com.

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 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

Follow us on Twitter: @JDPower

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

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As the Housing Market Continues to Fluctuate, Customer Satisfaction with Real Estate Companies Falls among Both Home Buyers and Sellers

1970-01-01

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WESTLAKE VILLAGE, Calif.: 15 August 2012 — With home-buyer satisfaction at an all-time low and home-seller satisfaction declining as well, real estate companies are challenged to manage customer expectations as the housing market continues to fluctuate, according to the JD Power and Associates 2012 Home Buyer/Seller Satisfaction Study^SM released today.

The study, now in its fifth year, measures customer satisfaction of home buyers and sellers with the largest national real estate companies. Overall satisfaction is determined by examining three factors of the home-buying experience: agent/salesperson; office; and variety of additional services.  Four factors are examined for the home-selling experience: agent/salesperson; marketing; office; and variety of additional services.

Overall satisfaction among home buyers is at its lowest level in the history of the study, averaging 789 on a 1,000-point scale, compared with 797 in 2011. Satisfaction among sellers has declined as well, averaging 768, compared with 779 in 2011.

“Although home buyers and sellers are aware of continuing challenges in the real estate market, a key reason satisfaction is down is that customer expectations are not being met, either in terms of sellers having to compromise on their listing price, or for buyers who are compromising on the home’s condition and size,” said Christina Cooley, senior manager of the real estate practice at JD Power and Associates. “This is understandably frustrating all around. However, we also find that real estate companies that set themselves apart in terms of working closely with their customers and meeting their needs may play an important role in both managing expectations, but more importantly, exceeding them.”

Keller Williams ranks highest in customer satisfaction in both the home-buyer and home-seller segments. Further, Keller Williams achieves the highest scores in all factors across both segments, including agent/salesperson, which is the most important aspect of the customer experience for home buyers and sellers. In the home-buyer segment, Keller Williams is followed in the rankings by Prudential. In the home-seller segment rankings, Keller Williams is followed by Coldwell Banker.  

The study finds that the highest-performing real estate companies are more consistent at capturing a greater proportion of the listing price. On average, sellers report receiving 89 percent of their listing price.  

Higher levels of customer satisfaction also translate into higher levels of customer loyalty. Notably, although the agent/salesperson has the largest impact on overall customer satisfaction among both home buyers and sellers, customer loyalty is stronger toward the real estate company than toward the agent. Less than 20 percent of customers say they “definitely will” switch real estate companies if their agent moves to another company.  

“As customers continue to feel anxious about the current housing market, it requires a combination of a high-performing company, process and resources along with a truly exceptional agent to put home buyers and sellers at ease,” said Cooley. “At the end of the day, real estate companies may best satisfy their customers by keeping them informed, educating them on comparable sales information and following up with them after the closing.”

Additional Industry Findings

• The study finds that the majority of home buyers and sellers are experienced with the process, with 60 percent indicating they are repeat buyers and 70 percent indicating they are repeat sellers.
• Approximately one-third (33%) of customers indicate they are likely to consider buying or selling a home in the next 12 months.
• Among home buyers, 17 percent purchased a foreclosure and 14 percent purchased a short sale. Among sellers, 14 percent of sales were short sales.

The 2012 Home Buyer/Seller Study includes more than 2,990 evaluations from more than 2,790 respondents who bought or sold a home between March 2011 and April 2012. The study was fielded between March and May 2012.

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 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]

Follow us on Twitter: @JDPower

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

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