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Category: United States

  • 2013 Home Buyer/Seller Satisfaction Study

    Real Estate Companies May Be Able to Differentiate Themselves by Focusing on the Needs of First-Time Home Buyers and Sellers

    2013-07-10

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    WESTLAKE VILLAGE, Calif.: 10 July 2013 — As the real estate market continues its recovery, real estate companies that are able to effectively serve the needs of the large first-time home-buyer and -seller market will be better positioned to increase market share, according to the JD Power 2013 Home Buyer/Seller Satisfaction StudySM released today. 

    The study, now in its sixth year, measures customer satisfaction among first-time and repeat home buyers and sellers among the nation’s largest real estate companies. Overall satisfaction is measured across four factors of the home-buying experience: agent/salesperson; real estate office; closing process; and variety of additional services. Satisfaction is evaluated across five factors for the home-selling experience: agent/salesperson; real estate office; closing process; marketing; and variety of additional services.
    Key Findings
    • Overall customer satisfaction with real estate companies is higher among repeat versus first-time customers.
    • The real estate market has experienced an increase in foreclosure and short sale transactions during the past year.
    • Customers are more loyal to their real estate company than to their sales agent.

    Overall satisfaction with real estate companies is higher among repeat customers compared to first-time buyers or sellers. The average score among repeat home buyers is 817 on a 1,000-point scale and 803 among repeat home sellers. The industry average for both the first-time buyer segment and the first-time seller segment is 797. 

    The percentage of first-time home buyers increases significantly in 2013, compared with 2012 (49% vs. 40%, respectively). The percentage of first-time home sellers increased to 44 percent in 2013 from 30 percent in 2012. Related to the increase in the first-time buyer/seller market, the average listing price in 2013 has dropped by 11 percent from 2012 ($200,000 vs. $225,000, respectively). Foreclosure purchases have increased to 19 percent from 17 percent year over year, and short sale purchases have increased slightly to 15 percent from 14 percent. However, there has been a larger increase in short sales by sellers, to 20 percent in 2013 from 14 percent in 2012. Considering that nearly one-fifth of home real estate transactions include a foreclosure or short sale, it becomes that much more important for customers to be informed during every step of the process in order to understand and be comfortable with the pricing strategy or purchase price and to remain connected to the real estate company, even after the close of the transaction. 
    “Real estate companies remain challenged in adapting their customer service approach to best meet the needs of first-time home buyers and sellers. They need to educate these customers by explaining the current state of the market, discuss foreclosure and short sale transactions, and walk them through every step of the closing process,” said Christina Cooley, director in the diversified services industries practice at JD Power. “Those real estate companies that are best able to adapt to specific customer scenarios and their resulting expectations and needs are much more likely to be successful in achieving customer satisfaction and loyalty.”  
    Customer advocates for real estate companies are critical, as first-time home buyers and sellers are most influenced by a company’s good reputation and the recommendations they receive from friends, family and colleagues. More than one-third (35%) of first-time home buyers and 27 percent of first-time sellers indicate they selected their real estate company based on its reputation, while 28 percent of first-time home buyers and 27 percent of first-time sellers selected their company based on recommendations.
    “A real estate company’s agent remains the most important aspect of the customer’s experience among first-time and repeat home buyers and sellers; however, customer loyalty is first to the company and second to the agent,” said Cooley. “Interestingly, less than 20 percent of customers say they “definitely will” switch real estate companies if the sales agent moves to another company. In the end, it is the combination of the company’s standards, processes and approach to addressing customer needs combined with outstanding execution by the sales agent that will truly differentiate the customer experience.” 
    First-Time Home-Buyer Satisfaction Ranking
    Prudential Real Estate (811) ranks highest in overall satisfaction in this segment and performs particularly well in all factors. RE/MAX (798) ranks second in customer satisfaction, followed by Century 21 (797).
    Repeat Home-Buyer Satisfaction Ranking
    Prudential Real Estate (829) ranks highest in overall satisfaction in this segment, followed by Century 21 (820) and RE/MAX (819). Prudential Real Estate scores highest in three of the four factors–agent/salesperson; variety of additional services; and closing process. RE/MAX ranks highest in the real estate office factor.
    First-Time Home-Seller Satisfaction Ranking
    Prudential Real Estate (809) ranks highest in overall satisfaction in this segment, followed by Keller Williams (802), RE/MAX (800) and Century 21 (799). Prudential Real Estate performs particularly well in the marketing and closing process factors. Keller Williams performs particularly well in the agent/salesperson factor; RE/MAX performs well in the real estate office factor; and Century 21 performs well in the variety of additional services factor.
    Repeat Home-Seller Satisfaction Ranking
    RE/MAX (819) ranks highest in overall satisfaction in this segment. Following RE/MAX in the rankings are Century 21 (816) and Prudential Real Estate (809). RE/MAX performs particularly well in the agent/salesperson and marketing factors. Century 21 performs well in the closing process factor.
    JD Power offers the following tips to consumers shopping for or selling a home:
    • If you’re buying or selling a home under special circumstances, such as a foreclosure or short sale, ask your real estate agent to explain the implications of these transactions and the responsibilities of the buyer and the seller. Be aware that short sales may take a long time to negotiate; closing costs may be high; and the property may require numerous repairs.
    • Don’t just focus on short sales or foreclosed properties because you think you can get a bargain.    The price is still likely to be in line with market value, and any required repairs will add to the total cost. Finding a home in move-in ready condition might save you money in the long run.
    • Be aware of all the services your real estate company offers, such as inspections, appraisal, mortgage company recommendations, home insurance and home warranty. Take advantage of any opportunity to make the process easier for you.
    • When you’re shopping for a real estate agent, consider both the company and the individual. It’s important that you and the agent have a good rapport, but it’s also important to choose an agency that can provide comprehensive services and has a proven record of success in helping home buyers and sellers.
    The 2013 Home Buyer/Seller Satisfaction Study includes 4,371 evaluations from 3,930 customers who bought and/or sold a home between March 2012 and April 2013. The study was fielded between April 2013 and June 2013. 

     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    John Tews; 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. www.jdpower.com/corporate

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  • 2013 High-Definition Television (HDTV) Satisfaction Report

    Good Picture Quality at the Right Price Is Top Consideration When Purchasing a High-Definition Television

    2013-07-09

    jdp-root

    WESTLAKE VILLAGE, Calif.: 9 July 2013 — Customers who recently purchased a high-definition television cite picture quality and price as the two primary reasons for selecting their TV, according to the JD Power 2013 High-Definition Television (HDTV) Satisfaction ReportSM released today. 
    The report measures satisfaction with HDTVs among customers who purchased one in the past 12 months. Satisfaction is evaluated across seven factors: performance; reliability; ease of operation; style/appearance; features; price; and warranty. 
    Among customers who purchased an HDTV that is 50 inches or larger, picture quality is cited most often as the reason for their selection (66%), followed closely by price (62%). Among customers who purchased an HDTV smaller than 50 inches, price (68%) is the leading reason, followed by picture quality (58%). 
    “Customers purchasing a smaller HDTV tend to be more price conscious than those purchasing a larger HDTV,” said Christina Cooley, director in the diversified services industries practice at JD Power. “Yet, we find that customers who buy larger HDTVs are more likely to research brands and features before making their purchase.”
    The report finds that among customers who purchased a 50-inch or larger HDTV, 27 percent visited the manufacturer’s website, compared with 21 percent among those who purchased an HDTV smaller than 50 inches. Both groups of customers indicate that the in-store display was their primary source of information during the shopping process, with approximately one-half indicating that they relied primarily on the in-store displays.
    “Consumers are doing their homework before visiting a retailer; however, it’s not until they actually see the TVs side by side that they ultimately decide which brand, size and type to buy,” said Cooley. “It’s vital that consumers are able to clearly see and experience the various benefits provided across the manufacturers’ offerings and have access to knowledgeable salespeople to help them decide which TV will best suit their needs.”
    According to the report, there is a notable shift in customers’ selections of HDTV technology year over year. In 2013, a larger percentage of customers have purchased LED televisions (44%) vs. LCD (39%) or plasma (17%) televisions, compared with LCD (41%), LED (33%) and plasma (19%) in 2012.
    “LED televisions have traditionally been more expensive than LCDs, but we’re seeing the price points of the two technologies converge, allowing more consumers the option to cross-shop both technologies,” said Cooley.
    TV Technology
    Among the latest television technologies in the market are Smart TV and 3D TV.  Smart TV–sometimes referred to as connected TV or hybrid TV–allows web viewing from the television, while 3D TV provides depth perception to the display.
    The report finds that 67 percent of customers with HDTVs 50 inches or larger and 43 percent of those with HDTVs smaller than 50 inches have a Smart TV. In comparison, 36 percent of customers with HDTVs 50 inches or larger and 16 percent of those with HDTVs smaller than 50 inches have a 3D TV.
    “While 3D HDTV technology may not be as popular as manufacturers had hoped, Smart TV is resonating well with consumers, who like its focus on online interactive media, Internet TV and streaming media,” said Cooley.
    Report Rankings
    Sony and Vizio rank highest in a tie in customer satisfaction with HDTV brands in the under 50 inches segment with a score of 858 (on a 1,000-point scale). LG Electronics and Samsung, follow Sony and Vizio in a tie at 854. Overall customer satisfaction in this segment averages 851.
    Samsung ranks highest in the 50 or more inches segment with a score of 879. Overall customer satisfaction in this segment averages 872.
    JD Power offers the following tips to consumers shopping for an HDTV: 
    • Research TV brands before shopping at a retailer in order to gauge which brands should be considered given the size requirements, type of TV and the specific features you are looking for.
    • Spend time at the retailer looking closely at the TVs, paying particular attention to the picture quality. You want to make sure you are getting the best picture quality for your budget.
    • Find knowledgeable retail staff to talk to regarding the differences between the types of TVs and new technologies, such as 3D and Smart TVs, and the benefits of each.  
    The 2013 High-Definition Television (HDTV) Satisfaction Report is based on responses of more than 6,000 customers who purchased an HDTV in the past 12 months. The study was fielded in May and June 2013.
     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    John Tews; 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. www.jdpower.com/corporate

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  • 2013 Point and Shoot Camera Online Buyer Report

    Photo Enthusiasts and Semiprofessional Photographers Comprise More Than 50 Percent of Point and Shoot Camera Purchases Online

    2013-07-01

    jdp-root

    WESTLAKE VILLAGE, Calif.: 1 July 2013 — Despite the proliferation of smartphone cameras, photo enthusiasts and semiprofessional photographers comprise more than 50 percent of buyers who purchase point and shoot cameras from online camera retailers, according to the JD Power 2013 Point and Shoot Camera Online Buyer ReportSM released today.

    Key Findings
    • Sony (850) ranks highest in overall satisfaction among point and shoot camera brands purchased online, followed by Panasonic (844).
    • Picture quality and reliability/durability are the most important drivers of satisfaction.
    • The average online price for a point and shoot camera is $263.

    The report measures five key factors that affect online buyer satisfaction with point and shoot cameras (in order of importance): picture quality; reliability/durability; ease of operation; feature performance; and shutter speed/lag time.

    Sony ranks highest in overall satisfaction with a score of 850 (on a 1,000-point scale) and performs particularly well in the picture quality and feature performance factors. Panasonic ranks second with a score of 844 and performs particularly well in reliability/durability. Canon ranks third at 838, performing particularly well in ease of operation. Overall satisfaction with point and shoot cameras purchased online averages 835.

    While overall performance of the camera (24%) and brand reputation (13%) are top reasons for purchasing a particular brand of point and shoot camera, picture quality (33%) and reliability/durability (28%) are the two most important factors driving overall satisfaction. 
    “When customers are highly satisfied with the point and shoot camera they purchased online, they are more likely to recommend that brand,” said Dan Lawlor, director of global research operations at JD Power. “High satisfaction translates into brand loyalty. In fact, 77 percent of those purchasing a camera from one of the brands ranking above industry average indicate they ‘definitely will’ recommend their brand of camera to others.”
    More than 50 percent of buyers who made an online purchase of one of the brands included in the report are photo enthusiasts and semiprofessional photographers (39% and 14%, respectively), while 40 percent are casual photographers. The majority of point and shoot camera use is during travel (61%) and taking family photos (59%). The remaining top uses for a point and shoot camera include landscape/scenery, indoors/lowlight, video, wildlife photos and wedding/events.
    “With an average selling price of $263 among the brands included in this report, point and shoot cameras are extremely relevant for consumers who want better control of picture quality with a more reliable and durable camera, while possessing many of the other features or performance elements not found on a smartphone,” said Lawlor. “Point and shoot camera owners are willing to pay for an additional device if it helps them capture the kind of imagery they want with the quality they expect.”
    Digital pictures taken with a point and shoot camera are saved to a storage disc (76%), emailed to friends and family (67%) or uploaded to an online photo sharing site (46%).
    The 2013 Point and Shoot Camera Online Buyer Report is based on responses provided to JD Power through Bazaarvoice, a technology company connecting businesses together to amplify the authentic voices of consumers where they shop, from 3,476 verified buyers who purchased a point and shoot camera online. The study was fielded from May 2012 through April 2013.
     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    John Tews; 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. www.jdpower.com/corporate

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  • 2013 Employer Health Plan Study

    Health Plans Risk Losing Employer-Sponsored Group Business Unless Satisfaction Improves

    2013-06-27

    jdp-root

    WESTLAKE VILLAGE, Calif.: 27 June 2013 — With such alternative healthcare purchasing choices as public and private exchanges—or cutting coverage altogether—taking shape among employers, health plans risk losing group business unless they improve employer satisfaction, according to the JD Power 2013 Employer Health Plan StudySM released today.
    Key Findings
    • HCSC ranks highest among fully insured employers with a score of 741; Cigna ranks highest among self-funded employers at 707.
    • Nearly one-fifth (15%) of employers say they “definitely will not” or “probably will not” continue sponsoring coverage in five years.
    • Among employers in both segments, there is a 90-point gap in overall satisfaction scores between employers that intend to offer coverage in the future and those that intend to discontinue coverage.

    The study, now in its fourth year, measures six key factors that affect employer satisfaction with health plans: employee plan service experience; account servicing; program offerings; benefit design; problem resolution; and cost. Health plans are ranked in two employer segments: fully insured employers (health plan assumes the risk of providing health coverage for insured events); and self-funded employers (employers bear the risk associated with offering health benefits).

    Among fully insured employers, satisfaction averages  709 (on a 1,000-point scale); among self-funded employers, satisfaction averages 696. Satisfaction across all factors among employers that do not intend to offer coverage five years from now is at least 76-points lower than employers who intend to offer coverage. 
    “Health plans need to understand the importance of satisfaction in order to limit the erosion of their business from employer-sponsored coverage to alternative channels where employees have more choices,” said Richard Millard, senior director of the healthcare practice at JD Power. “Those health plans that focus on closing the satisfaction gap across key performance factors are more likely to retain employer-sponsored group contracts.”
    In both the fully insured and self-funded segments, employer satisfaction with program offerings, such as preventive health programs, disease management or wellness initiatives, is a key area of differentiation between employers that intend to offer coverage in the future and those that intend to drop coverage.  In the program offerings factor, the gap in satisfaction scores between fully insured employers that intend to offer coverage in the future and those that intend to drop coverage is 104 points—705 among employers that intend to offer coverage, compared with 601 among those that intend to drop coverage. Among self-funded employers, the gap in satisfaction scores between those that intend to offer coverage in the future and those that intend to drop coverage is also 105 points—689 among employers that intend to offer coverage, compared with 584 among those that intend to drop coverage.
    Cost is another important driver of satisfaction. Cost satisfaction among employers that indicate they intend to continue sponsoring coverage in the future is 106 points higher than among those that intend to drop coverage (696 vs. 590, respectively). Satisfaction with cost is improving as more consumer driven high-deductible plans are offered to employees, which 82 percent of employers indicate are controlling costs. 
    “One way that health plans may improve employer satisfaction is by demonstrating they are making an impact on the health behavior of employees,” said Millard. “How well health plans are able to do this may make a difference in determining whether an employer chooses to continue offering coverage or not.”
    Plan Satisfaction
    Among fully insured employers, HCSC ranks highest with a score of 741, while Cigna ranks highest among self-funded employers with a score of 707. Both health plans perform particularly well in benefits design, problem resolution and account servicing.
    The 2013 Employer Health Plan Study is based on responses from 5,857 employers, with quotas to assure an adequate distribution of small, medium and large companies. The study was fielded in April and May 2013. 
     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.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]  
    John Tews; 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. www.jdpower.com/corporate

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  • 2013 Cruise Line Satisfaction Report

    Although Overall Satisfaction with Cruise Lines Is High, Nearly 20 Percent of Passengers Experience A Problem on Their Cruise

    2013-06-27

    jdp-root

    WESTLAKE VILLAGE, Calif.: 27 June 2013 — While overall customer satisfaction with cruise lines is high, nearly one in five customers experience a problem while on their cruise, according to the JD Power 2013 Cruise Line Satisfaction ReportSM released today. The inaugural report measures cruise line customer satisfaction based on seven key factors (in order of importance):  service; stateroom; food; embark/debark; entertainment; cost; and excursions.

    Key Findings
    • Disney Cruise Line (871) ranks highest in overall satisfaction among cruise line brands, followed by Royal Caribbean (838).
    • Price (53%) and past experience with brand (39%) are the two primary reasons for selecting a cruise line.
    • The average price paid for one person is $1,628 and $2,330 for a group of two to four.

    Disney Cruise Line ranks highest in customer satisfaction with a score of 871 (on a 1,000-point scale), significantly higher than the report average of 824, and performs particularly well in the entertainment and food factors. Royal Caribbean International ranks second with a score of 838, and performs particularly well in service. Holland America Line ranks third at 835, also performing particularly well in service.

    While customer service, stateroom and food comprise more than 50 percent of the contribution to overall satisfaction, the number of problems passengers experience during their cruise also has a significant impact on loyalty and advocacy. Overall, 18 percent of passengers across all cruise lines indicate they experienced at least one problem on their cruise. On average, cruise line passengers experience 1.8 problems.

    Passengers experiencing zero or one problem (61% and 55%, respectively) say they “definitely will” take another cruise with the cruise line they most recently used. When two to three problems are experienced, the likelihood of customers taking another cruise with the same cruise line drops dramatically (33% and 28%, respectively). Among the brands above the industry average, 68 percent of passengers indicate they “definitely will” recommend their cruise line to others, surpassing the report average of 61 percent. A high level of satisfaction translates into customer loyalty and advocacy.

    “Many cruise lines in the report have very high levels of passenger satisfaction, well above the report average; however, for more than a year, the overall industry has been dealing with a lot of negative news affecting customer perceptions, expectations and trust,” said Ramez Faza, senior account manager of the global travel and hospitality practice at JD Power. “To raise the bar, the industry must focus on meeting the needs of the nearly 20 percent of passengers who experience a problem with their cruise line experience. Cruise lines need to understand the causes of customer dissatisfaction and determine what will motivate them to come back.”

    The primary reason for choosing a particular cruise line is price (53%). However, among customers who say they “definitely will not” or “probably will not” return for another cruise, cost is the driving factor, with their overall satisfaction score at 614 points. The average price paid for one person is $1,628. When the number of people in the traveling party increases to two or four, prices average $2,330 for the group. Among customers who say they “definitely will” return, service is the key reason for their decision.

    “To retain existing customers or acquire new customers, cruise lines need to be extremely sensitive to the price point that is most comfortable for customers, while providing the highest level of service possible,” said Faza. “It’s all about perceived value for customers. Did they get their money’s worth? Was the service better than expected? Simply put, cruise lines need to work harder to create an enjoyable experience in which customers feel they are getting a great value for the price. Cruise lines that satisfy their customers and provide them with a reason to cruise again are rewarded with loyal customers.”

    Most consumers become aware of their cruise line brand through one of several means: the cruise line’s website (28%); they are loyal customers who have traveled with the cruise line previously (24%); or they discover the brand from friends and family (17%). Additionally, television plays a role in creating awareness about cruise lines, with 2.8 percent of customers saying that TV ads were the reason they selected a cruise line brand.

    JD Power offers the following recommendations to customers when selecting a cruise line:

    • If you’re planning a cruise for your family, choose a cruise line that provides age-appropriate entertainment and a variety of food choices for adults and children.
    • If you are taking a cruise with numerous ports of call find out which cruise line ranks highest for embarking/debarking. The more organized and efficient the cruise line is with both of these metrics, the less stressful the experience may be when leaving and returning to the ship.
    • Taking a cruise with many ports of call is a great way to experience the world. Research all of the ports of call ahead of booking your cruise and plan each excursion so you will have plenty of time to experience everything you’re interested in and get back to the ship on time.

     

    The 2013 Cruise Line Satisfaction Report is based on responses from 3,003 customers who traveled on a cruise line in the past 12 months. The study was fielded from May 29, 2013, through June 14, 2013. Notably, among the five brands ranking above the report average, Royal Caribbean International and Celebrity Cruises are owned by Royal Caribbean Cruises Ltd. Holland America Line and Princess Cruises (both above the report average) and Carnival Cruise Lines (below the report average) are owned by Carnival Corporation & PLC.

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    John Tews; 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. www.jdpower.com/corporate

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  • 2013 Retail Electric Provider Satisfaction Study

    Satisfaction with Price Is Higher among Retail Electric Customers Than among Local Electric Utility Customers

    2013-06-26

    jdp-root

    WESTLAKE VILLAGE, Calif.: 26 June 2013 — Among retail electric provider residential customers, 41 percent have taken action in the past year to either switch providers, renew with their current retail provider, or sign up for retail service for the first time, with a majority citing price competition as a primary reason for taking action, according to the JD Power 2013 Retail Electric Provider Satisfaction StudySM released today.
    The inaugural study measures satisfaction among residential customers of 71 retail electric providers in eight1 states by examining five key factors: price; communications; corporate citizenship; enrollment/renewal; and customer service.  
    According to the study, 6 percent of customers have switched from another retail electric provider; 11 percent have enrolled for the first time with a retail provider; and 24 percent have renewed with their existing retail electric provider in 2013.  
    Among customers who decided to switch retail electric providers, 64 percent cite price competition offered a better deal as the primary reason they selected their new provider. Price satisfaction is highest among customers in Maryland and Pennsylvania than among those in the other six states included in the study. Retail customers surveyed for this study are more satisfied with price than are customers of local electric utilities2 surveyed for the JD Power 2013 Electric Utility Residential Customer Satisfaction Study.SM
    “As more consumers enter the electric retail market, retail providers will need to continue to find ways to enhance long-term relationships with their current customers, making the option to switch less attractive,” said Jeff Conklin, senior director of the energy practice at JD Power. “Satisfying retail electric customers is an ever-changing process in terms of improving pricing and presenting more attractive offerings and promotions.”
    When looking at overall satisfaction by state, Pennsylvania performs highest among the seven rank-eligible states in the study, with an average overall satisfaction score of 631 on a 1,000-point scale. Following Pennsylvania are Maryland (630); Connecticut and Illinois in a tie (610 each); Massachusetts (603); New York (595); and Ohio (575). Overall customer satisfaction for the industry averages 606.  
    Retail electric provider study rankings by state are:
     
    Connecticut: ConEdison Solutions ranks highest in Connecticut with a score of 651, and performs particularly well in the price factor. Ambit (624) follows ConEdison Solutions in the rankings, performing above the Connecticut state average (610).
    Illinois: Energy Plus ranks highest in Illinois with a score of 633, performing particularly well in the price and corporate citizenship factors. Following Energy Plus in the rankings are First Energy (611) and IGS Energy (610).
    Maryland: Dominion Energy Solutions ranks highest in Maryland with a score of 648, and performs particularly well in the price factor. Washington Gas Energy Services (640) follows Dominion Energy Solutions in the rankings, performing above the Maryland state average (630).
    Massachusetts: Energy Plus ranks highest in Massachusetts with a score of 642, and performs particularly well in the customer service and enrollment/renewal factors. AEP Energy (630) and Direct Energy (629) follow in the rankings.
    New York: Ambit Energy ranks highest in New York with a score of 642, and performs particularly well in the price, communications, enrollment/renewal and customer service factors. Energetix (630) follows Ambit Energy in the rankings, performing above the New York state average (595).
    Ohio: DPL Energy Resources ranks highest in Ohio with a score of 602, and performs particularly well in the price, communications, corporate citizenship and customer service factors. Dominion Energy (584) and Duke Energy (583) follow in the rankings.
    Pennsylvania: PPL EnergyPlus ranks highest in Pennsylvania with a score of 635, and performs particularly well in the communications and corporate citizenship factors. Energy Plus (634) follows PPL EnergyPlus in the rankings, performing above the Pennsylvania state average (631).
    1New Jersey is included in the study, but retail electric providers are not ranked due to an insufficient number of eligible brands. 

    2Local electric utilities refers to regulated utilities.

    JD Power offers the following tips for consumers when shopping for or when considering switching retail electric providers:
    • When comparing providers, look at not only their prices, but also their monthly fees, contract term length and cancellation fees.
    • Most states, as well as some third-party services, offer shopping websites that compare current market offerings. Search online for electric choice in your state.
    • Many providers offer additional incentives to switch or renew, so ask about the opportunity to receive airline miles, gift cards or other discounts.
    • Ask your friends and neighbors about their experiences with retail electric providers in terms of customer service responsiveness when dealing with questions or problems.
     
    The 2013 Retail Electric Provider Satisfaction Study is based on responses from more than 14,800 retail electric residential customers of 71 retail electric providers in eight states regarding their experiences with their retail electric provider. The study was fielded in April and May 2013.
     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected] 
    John Tews; 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. www.jdpower.com/corporate

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  • 2013 U.S. Auto Insurance Study

    Auto Insurance Customer Satisfaction Declines Compared with 2012 Primarily Due to Higher Rates

    2013-06-24

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    WESTLAKE VILLAGE, Calif.: 24 June 2013 — Driven by lower satisfaction with price and policy offerings, overall customer satisfaction with auto insurance companies declines in 2013 from an all-time high in 2012, but remains comparatively high relative to the previous decade, according to the JD Power 2013 U.S. Auto Insurance StudySM released today.
    The study measures customer satisfaction across five factors: interaction, price, policy offerings, billing and payment and claims. Overall satisfaction with auto insurance companies is 794 (on a 1,000-point scale), down 10 points from 2012. Despite this drop, satisfaction in 2013 is the second-highest level since the study launched in 2000.
    Scores across all five factors have decreased year over year, with price and policy offerings both declining by 13 points. These two factors are the primary forces contributing to lower overall satisfaction.
    “In 2013, there is a sharp rise in the number of customers who have experienced premium increases,” said Jeremy Bowler, senior director of the global insurance practice at JD Power. “The dollar amount of those increases is also larger, averaging $153 in 2013, compared with an average rate increase of $113 reported in the 2012 study.”
    There is a direct relationship between the size of the premium increase and the proportion of affected customers who switch insurers. While only 9 percent of customers who experienced an annual rate increase of $50 or less switched insurers, the switching rate nearly doubles to 18 percent when the increase is between $51 and $100, and to 32 percent when the increase is more than $200.
    Customers are More Tolerant of Rate Increases When Their Insurer Communicates Reasons
    Rather than making changes to their existing policy, many customers are opting to shop and switch to a new insurer when their rates go up. This is because many companies are not adequately notifying customers prior to sending a renewal letter or making efforts to review possible options customers may take to mitigate the impact of a rate change.  When customers receive pre-notification, and discuss their options prior to renewal, satisfaction averages 698, 67 points higher than among customers whose did not get to discuss a rate increase prior to renewal.
    “In today’s low-interest market, many insurers are filing for new rate structures in order to rectify underwriting losses,” said Bowler. “To prepare for the likely downturn in customer sentiment and risk of increased attrition following a premium increase, insurers need to do a better job of proactively reaching out to their customers and explaining the reasons behind the rate increases.”
    The study finds that only 16 percent of customers with a rate increase indicate that they had a discussion with their insurer regarding potentially changing their coverage.
    Among the five factors, price satisfaction is lowest at 716—more than 100 points lower than the average scores for interaction and claims. 
    “Generally, customers typically have little understanding of how their rates are set by their insurer, or why prices may vary by sometimes hundreds of dollars between companies when they shop for multiple quotes,” said Bowler. “We’ve seen many companies focus on communicating discounts to strengthen customer perception of value. But the introduction of personal driving data characteristics in establishing discounts, and hence rates, represents another significant step forward for the industry in terms of better communicating price to customers.”
    Regional Overview
    The study has expanded its regional methodology in 2013 to include 11 regions, including four state-specific regions. Similar to the overall industry, satisfaction has declined in each of the regions, compared with 2012, although the magnitude of the change varies by region.
    California: Wawanesa (820) ranks highest among award-eligible insurers in the California region, followed by State Farm (812) and The Hartford (811).
    Central: State Farm (833) ranks highest among award-eligible insurers in the Central region, followed by Auto-Owners Insurance (821) and Shelter (817).
    Florida: MetLife (808) ranks highest among award-eligible insurers in the Florida region, followed by The Hartford (802) and State Farm (800).
    Mid-Atlantic: State Farm (836) ranks highest among award-eligible insurers in the Mid-Atlantic region, followed by Erie Insurance (826) and GEICO and The Hartford in a tie (811 each).
    New England: Amica Mutual (850) ranks highest among award-eligible insurers in the New England region, followed by GEICO and State Farm in a tie (794 each) and The Hartford (793). 
    New York: New York Central Mutual (814) ranks highest among award-eligible insurers in the New York region, followed by State Farm (807) and Travelers (783).
    North Central: Auto-Owners Insurance (833) ranks highest among award-eligible insurers in the North Central region, followed by State Farm (824) and Erie Insurance (823).
    Northwest: PEMCO Insurance (834) ranks highest among award-eligible insurers in the Northwest region, followed by The Hartford (820) and Mutual of Enumclaw (813).
    Southeast: Tennessee Farm Bureau (850) ranks highest among award-eligible insurers in the Southeast region, followed by State Farm (822) and North Carolina Farm Bureau (821).
    Southwest: State Farm (824) ranks highest among award-eligible insurers in the Southwest region, followed by The Hartford (821) and GEICO (809).
    Texas: Texas Farm Bureau (862) ranks highest among award-eligible insurers in the Texas region, followed by GEICO (815) and State Farm (810).
    Compared with 2012, the Central region declines the least in overall satisfaction (four points), while the Texas region declines the most (23 points). 
    New Jersey Manufacturers Insurance Company (NJM) and USAA also achieve high levels of customer satisfaction in the study, although they are not included in the rankings due to the closed natures of their respective memberships. 
     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.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]  
    John Tews; 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. www.jdpower.com/corporate

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  • June 2013 Monthly Automotive Sales Forecast

    New-Vehicle Retail Sales Are Heating Up with the Start of the Summer Selling Season

    2013-06-21

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    WESTLAKE VILLAGE, Calif.: 21 June 2013 — New-vehicle retail sales are continuing their positive trend in June, with no signs of letting up at the start of the summer selling season, according to a monthly sales forecast developed jointly by the Power Information Network® (PIN) from JD Power and LMC Automotive.

    Retail Light-Vehicle Sales
    New-vehicle retail sales in June are projected to come in at 1,118,800 vehicles, which represent a seasonally adjusted annualized rate (SAAR) of 13.2 million units, a healthy increase of 500,000 from the May SAAR. Retail transactions are the most accurate measure of true underlying consumer demand for new vehicles.
    U.S. Retail SAAR–June 2012 to June 2013
    (in millions of units)

    While sales overall are strong, not all segments are selling at the same pace. Sales of premium vehicles account for just 11.7 percent of new-vehicle retail sales thus far in June, down from 12.9 percent in June 2012.
    The underperformance of premium light-vehicle sales is largely due to the age of the models in these segments. JD Power calculates that the average age—the number of months the vehicle has been in the market since it was introduced or redesigned—of premium models  sold in the second quarter of 2013 was 43 months. In comparison, the average age of non-premium models—excluding pickup trucks—is only 34.5 months. 
    JD Power expects that by the second quarter of 2014, the average age of premium products will fall to just 33 months, as new and redesigned products enter the marketplace.
    The strong selling pace continues to be matched by strong transaction prices. Thus far in June, the average transaction price of new vehicles is $28,900—the highest ever for the month of June.
    “Although the premium segment growth has lagged non-premium, there is some good news for the industry in that the average price of premium vehicles in June is $47,000, up almost 4 percent from June 2012,” said John Humphrey, senior vice president of the global automotive practice. “New premium vehicles entering the market late this year will also help bolster sales through the second quarter of 2014.”
    Total Light-Vehicle Sales
    Total light-vehicle sales in June 2013 are expected to grow by 12 percent from June 2012 to 1,380,800 units. Fleet sales in June are just 19 percent of total sales. Fleet volume for the month is projected at 262,000 units. 
    JD Power and LMC Automotive U.S. Sales and SAAR Comparisons


    1Figures cited for June 2013 are forecasted based on the first 13 selling days of the month.

    2The percentage change is adjusted based on the number of selling days in the month (26 days in June 2013 vs. 27 days in June 2012).

    Sales Outlook 
    LMC Automotive continues to hold the outlook for total light-vehicle sales in 2013 at 15.4 million units, but has increased its forecast for retail light-vehicle sales to 12.6 million units from 12.5 million units, as retail sales growth expands.
     
    “There is little question that the automotive market has strong momentum as we close out the first half of 2013,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “Looking forward, all the key fundamentals are in alignment to continue the current growth trend, with production capacity limitations being the only major visible risk.”
     
    North American Production
    North American light-vehicle production through June is up nearly 5 percent, compared with the same period in 2012. Ford’s 16 percent increase in production thus far in 2013 is leading all manufacturers, with a significant portion of its increase driven by sales boosts for the new Escape and Fusion, as well as its F-Series pickups. 
    Vehicle inventory levels in early June are holding at 3.2 million units–a 57-day supply, which is down from 64 days last month.
     
    LMC Automotive’s forecast for 2013 North American production remains at 16.0 million units, with capacity utilization now at a lean 90 percent.
     

    About JD Power

    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.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:

    John Tews; JD Power; Troy, Mich.; (248) 680-6218; [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 of JD Power or LMC Automotive. www.jdpower.com/corporate www.lmc-auto.com

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  • Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services – Call Center Certification

    Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services’ Call Centers Recognized for Providing An Outstanding Customer Service Experience For A Fourth Consecutive Year

    2013-06-20

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    WESTLAKE VILLAGE, Calif.: 20 June 2013 — Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services has been recognized for call center operation customer satisfaction excellence under the JD Power Call Center Certification ProgramSM. The Certified Call Center Program distinction acknowledges a strong commitment by Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services service call center operations to provide “An Outstanding Customer Service Experience.”


    To become certified, the call centers successfully passed a detailed audit of more than 100 practices that encompass their recruiting, training, employee incentives, management roles and responsibilities, and quality assurance capabilities. As part of its evaluation, JD Power conducted a random survey of Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services customers who recently contacted its call centers in Charlotte, N.C.; Jacksonville, Fla.; Norfolk, Va.; and Brea, Calif. 


    “In achieving this certification for the fourth consecutive year, Bank of America Merrill Lynch Global Corporate and Commercial Banking Client Services has demonstrated that they are committed to providing an outstanding service experience to customers contacting its call centers,” said Mark Miller, senior director at JD Power. 


    For certification status, a call center must also perform within the top 20 percent of customer service scores, which are based on benchmarks established in JD Power cross-industry customer satisfaction research. The evaluation criteria include the customer service representative’s courtesy, knowledge and concern for the customer; promptness in speaking to a person; and timely resolution of the problem or request. Additionally, the experience with the automated phone system is evaluated based on the clarity of the information provided, the ease of navigating the phone menu prompts and the ease of understanding the phone menu instructions.

     

    “In today’s global marketplace, it’s essential that we set ourselves apart from the competition and connect with our clients in new and better ways,” said Bill Pappas, Chief Information Officer of Global Wholesale Banking Technology & Operations at Bank of America Merrill Lynch. “Our Corporate and Commercial contact centers are doing just that – they’re putting our clients first by ensuring every interaction is effortless, meaningful and unmatched. We appreciate being recognized by JD Power for delivering an outstanding experience for the fourth year in a row.” 


    “Companies of all sizes have more financial needs than ever, and we’re proud to provide industry-leading service while bringing our full range of solutions to customers in the U.S. and around the world,” said Alastair Borthwick, head of Global Commercial Banking at Bank of America Merrill Lynch. “We’re committed to helping our clients grow their businesses, and we appreciate this recognition by JD Power.”


    The Certified Call Center Program was launched by JD Power in 2004 to evaluate overall customer satisfaction with call centers and to help call centers in various industries increase their efficiency and effectiveness by establishing and continually updating leading practices for handling service calls.


    For more information on the Certified Call Center Program, please visit JDPower.com.

     

    About JD Power


    JD Power is a global marketing information services company providing 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.


    About McGraw Hill Financial


    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.


    Media Relations Contacts:


    John Tews; Troy, Mich.; (248) 680-6218; [email protected]
    Mark Pipitone; Bank of America; Charlotte, N.C.; (980) 387-4907; [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. www.jdpower.com/corporate


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  • 2013 JD Power Initial Quality Study (IQS)

    Nearly Two-Thirds of Problems Owners Experience With Their New Vehicle Are Design-Related; Few Can be Fixed

    2013-06-20

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    WESTLAKE VILLAGE, Calif.: 19 June 2013 — The majority of problems owners experience with their new vehicle in the first 90 days of ownership are design-related rather than manufacturing defects. These design problems are far less likely to be successfully resolved at the dealership than are defects, according to the JD Power 2013 U.S. Initial Quality StudySM (IQS) released today at an Automotive Press Association luncheon at the Detroit Athletic Club.

    The JD Power Initial Quality Study, which serves as the industry benchmark for new-vehicle quality, has been redesigned for 2013. The study has been enhanced to better measure the quality of today’s vehicles, particularly problems related to new technologies and features now being offered. In addition, the study, now in its 27th year, allows for more detailed feedback from new-vehicle owners.

    Nearly two-thirds of the problems experienced in the first 90 days of ownership are related to the vehicle’s design, as opposed to components that malfunction. For example, the component may be working as designed, but owners deem it a problem because it may be difficult to understand or operate.

    Because design problems are not the result of a breakdown or malfunction, just 9 percent of these problems are taken to a dealership within the first 90 days of ownership. When owners take their vehicle to a dealership for a design-related issue, the problem is fixed only 13 percent of the time. In contrast, 28 percent of owners who experience a defect or malfunction with their vehicle within the first 90 days of ownership take it to a dealership, and 42 percent of the time the dealership is able to fix the problem.

    “Automakers are investing billions of dollars into designing and building vehicles and adding technologies that consumers desire and demand, but the risk is that the vehicle design, or the technology within the vehicle, in some cases may not meet customer needs,” said David Sargent, vice president of global automotive at JD Power. “Keep in mind that automakers are trying to design vehicles that appeal to a broad array of consumers, and what works for the majority may not work for all. The successful companies will be those automakers that find a way to give customers the technology they want while at the same time making it sufficiently intuitive so all customers find it easy to use.”

    Overall initial quality for the industry averages 113 problems per 100 vehicles (PP100).1 The study finds that many of the problems owners have with their vehicle relate to the driver interface, which includes voice recognition or hands-free technology, Bluetooth pairing for mobile phones, and the navigation system, among others.

    According to Sargent, some of these problems may be mitigated at the time of purchase by the salesperson explaining how to use the technology, and others may be remedied with software changes. However, features that are difficult for owners to operate, hard to understand, or inconveniently located in the vehicle likely will remain a problem for the life of the vehicle.

    “Owners desire, and in some cases are demanding, more content in their new vehicles, especially technology-related features, and automakers are trying to provide it,” said Sargent. “The majority of owners don’t experience problems, but those who do are frustrated. That’s understandable, especially when owners often keep their new vehicle for five years or more. In contrast, when consumers have a problem with their smartphone, they are likely to replace the phone much sooner.”

    2013 IQS Ranking Highlights
    Porsche ranks highest among nameplates included in the study, averaging 80 PP100. GMC ranks second with 90 PP100, and Lexus ranks third with 94 PP100. Infiniti (95 PP100) and Chevrolet (97 PP100) round out the five highest-ranked positions.

    Among the 26 model-level segment awards, Chevrolet receives five, while Honda, Kia, Mazda and Porsche each receive two. Chevrolet models receiving an award are the Avalanche (tie), Camaro (tie), Impala, Silverado HD and Tahoe. Honda receives awards for the Civic and CR-V; Kia for the Soul and Sportage (tie); Mazda for the MAZDA2 and MX-5 Miata; and Porsche for the Boxster and 911.

    The Lexus LS ranks highest in the Large Premium Car segment and achieves 59 PP100, the lowest average problem level among all models in the study.

    Also receiving segment awards are Acura TL; Buick Encore (tie); Cadillac Escalade; Chrysler Town & Country; Ford Mustang (tie); GMC Sierra LD (tie); Hyundai Genesis Sedan; Infiniti FX; Mercedes-Benz GLK-Class; Nissan Murano; smart fortwo; and Toyota Camry.

    Plant Assembly Line Quality Awards
    Toyota Motor Corporation’s Lafayette B Plant (SIA) in Indiana, which produces the Toyota Camry, receives the Platinum Plant Assembly Line Quality Award for producing models that yield the fewest defects or malfunctions. Plant awards are based solely on average levels of defects and malfunctions and exclude design-related problems.

    Among plants in the Asia Pacific region, the Toyota Motor Corporation Yoshiwara, Japan, (TABC) plant, which produces the Lexus LX and Toyota Land Cruiser, receives a Gold Plant Assembly Line Quality Award.

    In the Europe and Africa region, Audi AG receives a Gold Plant Assembly Line Quality Award for its Neckarsulm, Germany, plant, which produces the Audi A4, A5, A6, A7 and A8.

    The 2013 U.S. Initial Quality Study is based on responses from more than 83,000 purchasers and lessees of new 2013 model-year cars, trucks and multi-activity vehicles surveyed after 90 days of ownership. The study is based on a 233-question battery designed to provide manufacturers with information to facilitate identification of problems and drive product improvement. The study was fielded between February and May 2013.

    The study is used by manufacturers worldwide to improve quality and by consumers to help them make more informed purchasing decisions. Throughout the years, initial quality has been shown to be a leading indicator of long-term durability, which directly impacts customer loyalty and purchase decisions.

    About JD Power

    Headquartered in Westlake Village, Calif., JD Power is a global marketing information services company providing 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 is a business unit of McGraw Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial, a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw-Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at http://www.mhfi.com.

    JD Power Media Relations Contacts

    John Tews; Troy, Mich.; 248-680-6218; [email protected]
    Syvetril Perryman; Westlake Village, Calif.; 805-418-8103; [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. www.jdpower.com

    Follow us on Twitter: @JDPower

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    1 Due to the redesign of the Initial Quality Study, problems per 100 vehicles (PP100) scores for the 2013 study cannot be compared with PP100 scores from previous years.