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  • 2012 North America Rental Car Satisfaction Study

    Overall Satisfaction with Rental Cars Increases for a Third Consecutive Year, Reaching the Highest Level in Seven Years

    1970-01-01

    jdp-root

    WESTLAKE VILLAGE, Calif.: 8 November 2012 — Customer satisfaction with rental cars has increased for a third consecutive year, reaching its highest level in seven years, according to the JD Power and Associates 2012 North America Rental Car Satisfaction StudySM released today.

    Now in its 17th year, the study measures overall customer satisfaction with renting cars at airport locations by examining six factors (listed in order of importance): costs and fees; pick-up process; return process; rental car; shuttle bus/van; and reservation process.

    Overall satisfaction in 2012 averages 769 on a 1,000-point scale, up from 758 in 2011, and exceeds a high of 767 previously set in 2006. Overall satisfaction in 2012 is driven by increases in scores across all factors except reservation process, which is down by one index point, compared to 2011. The greatest year-over-year improvements across the industry are in the shuttle bus/van and cost and fees factors.

    Overall satisfaction among the business and leisure/personal customer segments also increases from 2011, with each segment reaching the highest satisfaction levels in seven years. Overall satisfaction among business customers increases to 762, up from 753 in 2011, while satisfaction among leisure/personal customers improves to 774, a 12-point improvement from 2011.

    “The rental car industry continues to step up its game, building on improvements in the rental car customer experience made over the past several years, while also benefiting from higher satisfaction levels with cost and fees relative to prior years,” said Stuart Greif, vice president of the travel practice at JD Power and Associates. “However, there still are tremendous opportunities to leverage technology to address customer pain points in the rental car experience. There is also an opportunity to make the most out of staff interactions with customers and raise customer satisfaction levels even higher.”

    The study finds that customers’ positive or negative encounters with staff during the rental car process contribute to their overall satisfaction. Overall satisfaction among customers who are greeted with a smile at the rental counter when picking up their vehicle averages 795, compared with 647 among those who are not greeted with a smile. Similarly, the gap in satisfaction between customers who are greeted with a smile during the return process and those who are not is 149 index points (801 vs. 652, respectively).

    “While the investment in the vehicles and running rental car operations is significant, how much does it cost to provide a genuine warm smile?” said Greif. “A friendly greeting and attitude toward helping customers goes a long way, and it doesn’t cost millions of dollars.”

    While business customers tend to be more critical of their rental car experience than do leisure/personal customers, they also tend to be more loyal. The study finds that 33 percent of business customers say they “definitely will” rent from the same brand again, compared with 26 percent of leisure/personal customers.  

    “Business customers tend to rent more frequently, so they are more aware of what to expect and they are often pressed for time, thus speed and efficiency are critical to their satisfaction,” said Ramez Faza, senior manager of the Travel Practice at JD Power and Associates.  “Therefore, business customers tend to be tougher graders. Leisure/personal customers tend to shop around more and search for the best value and are often more satisfied with cost and fees than are business customers. These insights are somewhat counterintuitive, because business customers are not paying out of their own pocket, whereas leisure/personal customers are spending their own money.”

    Among leisure/personal customers, 41 percent selected their rental car company based on price, while 13 percent based their selection on past experience with the brand and nine percent based their selection on special promotions or discounts. Among business customers, 24 percent selected their rental car company based on price, while 16 percent based their selection on past experience, 13 percent based on their company’s travel policy and 12 percent on membership or rewards programs.

    Timeliness of service is a major topic across industries, and renting a car is no exception.  On average, customers spend slightly less than 10 minutes each waiting on the shuttle bus or van; in transit to the rental car facility; and returning the vehicle and being transported back to the airport. The pick-up process takes longer to complete, an average of nearly 17 minutes. This reflects much longer wait times for customers who pick up their vehicle at the counter versus those who enjoy the speed and efficiency of counter bypass programs or kiosks, both of which result in higher levels of satisfaction with the pick-up process than does the use of counter pick up, even at dedicated loyalty member counters.

    “Rental car companies must continue to balance the need to serve their customers more quickly with the need to improve service,” said Faza. “There are benefits to reducing wait times, as customer satisfaction tends to decrease after 5 minutes at any given stage of the process.”

    Enterprise ranks highest in customer satisfaction among rental car companies, with a score of 804, performing particularly well across all factors. National follows in the rankings with 788, performing particularly well in the return process factor. Alamo ranks third with 773 and performs particularly well in the shuttle bus/van factor. It is notable that the three highest-ranked brands–Enterprise, National and Alamo–are all managed by Enterprise Holdings.

    The following tips may be helpful to consumers when renting a car:

    • Know your insurance coverage. Your own auto insurance policy or credit cards may include personal liability coverage. Prior to renting, review your policy.
    • Compare prices for town vs. airport pick-up locations. In some markets, you’ll save money by taking a bus from the airport to your hotel and renting your car there, as long as the additional time is not an inconvenience.
    • Consider joining a rental car company’s loyalty/membership program, which offers benefits such as free airline miles, discount pricing and the potential to bypass the check-in counter when you make your reservation in advance.
    • Consider renting a hybrid model when taking long-distance trips. If you are renting a car for several days and will be refilling the tank once or twice, a hybrid vehicle may save on fuel costs.   
    • If you’re planning to use a mobile phone while in the vehicle, check ahead of vehicle pick up whether hands-free pairing or Bluetooth is available in the vehicle. If not, pack your own Bluetooth or other headset for your trip, as many states have laws that do not allow using your hands to operate the phone while driving.

    The 2012 North America Rental Car Satisfaction Study is based on responses gathered between October 2011 and August 2012 from more than 12,100 evaluations from business and leisure/personal customers who rented a vehicle at an airport location between September 2011 and August 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, JD Power and Associates and Platts, a leader in commodities information. 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]

    Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [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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  • 2012 Call Center Certification–Nicor National

    Nicor National Call Center Recognized for Providing An Outstanding Customer Service Experience

    1970-01-01

    jdp-root

    WESTLAKE VILLAGE, Calif.: 7 November 2012 — Nicor National has been recognized for call center operation customer satisfaction excellence under the JD Power and Associates Call Center Certification ProgramSM. The Call Center Certification Program distinction acknowledges a strong commitment by Nicor National’s service call center operations to provide “An Outstanding Customer Service Experience.”

    To become certified, the call center successfully passed a detailed audit of more than 100 practices that encompass its recruiting, training, employee incentives, management roles and responsibilities, and quality assurance capabilities.  As part of its evaluation, JD Power and Associates conducted a random survey of Nicor National customers who recently contacted its call center in Naperville, Ill.

    “Nicor National has now earned our certification for six consecutive years and is to be congratulated on this significant achievement,” said Mark Miller, senior director at JD Power and Associates.  “Their most recent certification demonstrates that Nicor National has made the necessary commitments required to consistently provide an outstanding customer experience.”

    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 and Associates’ 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.
     
    “It is a significant accomplishment to earn six consecutive certifications,” said Robin Boren, president of Nicor National. “I have observed firsthand the work and effort that goes into this achievement, and I’m proud of our entire team for their continued commitment to providing exceptional customer service.”

    The Call Center Certification Program was launched by JD Power and Associates 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 Call Center Certification Program, 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]
    Kyle Bauer; Nicor National; Naperville, Ill.; (630) 388-2034; [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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  • 2012 Japan Replacement Tire Customer Satisfaction Index Study

    While Fuel-Efficient Replacement Tires Continue to Penetrate the Market, Customer Satisfaction with These Tires Has Plateaued
     

    1970-01-01

    jdp-root

    TOKYO: 2 November 2012 — While fuel-efficient tires have continued to penetrate the market, customer satisfaction with these tires, designed to help improve vehicle fuel efficiency, has plateaued, according to the JD Power Asia Pacific 2012 Japan Replacement Tire Customer Satisfaction Index StudySM released today.

    The study, now in its fourth year, examines market trends and measures customer satisfaction with replacement tires (excluding winter tires). Overall customer satisfaction with replacement tires is based on four factors: handling/traction; ride/quietness; durability/reliability; and appearance. Overall satisfaction scores (based on a 1,000-point scale) are calculated based on vehicle owners’ evaluations of 17 attributes.

    The study finds that 35 percent of vehicle owners with replacement tires have fuel-efficient tires on their vehicle, as defined by the tire labeling system introduced in January 2010, an increase from 27 percent in 2011.  This increase in fuel-efficient tire penetration coincides with availability of a wider range of fuel-efficient tires in the market. Fuel efficiency is more often cited as the reason for selecting fuel-efficient tires than are reasons for other tire-related features.

    While market penetration is increasing, customer satisfaction with fuel-efficient tires has plateaued since 2011.  Satisfaction has leveled off primarily due to lower satisfaction among customers who did not anticipate fuel savings prior to purchasing fuel-efficient tires. Although they have fuel-efficient tires, customers aren’t satisfied with the performance of fuel-efficiency unless they actually recognize or experience improved fuel efficiency.

    The study also finds that there is a correlation between the grade of low roll resistance, which is one of performance characteristics of fuel-efficient tires defined in the tire labeling system, and satisfaction with fuel efficiency. Satisfaction with fuel efficiency is higher for tires with higher-graded roll resistance. It is important to manufacturers that customers experience a satisfactory level of fuel efficiency in order to increase loyalty, as these customers tend to repurchase the same brand.

    “It will be difficult to get customers to focus on a tire brand for being fuel efficient if many of the tire brands available in the market are defined as fuel-efficient tires in the future,” said Taku Kimoto, executive director of automotive division at JD Power Asia Pacific, Tokyo. “It becomes more imperative to have customers experience the fuel efficiency to be realized from their fuel-efficient tires. It is also important to offer tires not only with fuel efficiency, but also with a balanced combination of other features, such as ride/quietness and long-term durability, in order to meet customer needs.”

    2012 Ranking Highlights

    The overall satisfaction rankings in the three vehicle segments that are award-eligible1 in 2012 are as follows:

    • Mini-car/compact segment: Michelin ranks highest with a score of 652 points and performs well in all four factors. Michelin is followed by Dunlop (606 points) and Bridgestone (600 points).
    • Passenger car segment: Michelin ranks highest with a score of 695 points and performs well in all four factors. Michelin is followed by Bridgestone (674 points) and Dunlop (641 points).
    • Mini Van segment: Bridgestone ranks highest with a score of 644 points and performs well in all four factors. Followings are Dunlop (619 points) and Yokohama (611 points).  

    The 2012 Japan Replacement Tire Customer Satisfaction Index Study is based on responses from 7,047 vehicle owners within the first three to 14 months of ownership who purchased their replacement tires between June 2011 and May 2012. The Internet-based survey for this study was fielded in August 2012.

    The Japan Replacement Tire Customer Satisfaction Index Study is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in Japan. Other 2012 studies conducted by JD Power Asia Pacific are as follows:

    • The Japan Winter Tire Customer Satisfaction Index Study was released in May 2012.
    • The Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in August 2012.
    • The Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership, was released in August 2012.
    • The Japan Customer Satisfaction Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities, was released in September 2012.
    • The Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership, was released in September 2012.
    • The Japan Original Equipment Tire Satisfaction Index Study, which measures customer satisfaction with original equipment tires equipped on new vehicles, was released in October 2012.
    • The Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with original equipment and aftermarket navigation systems, was released in October 2012.

    1 NOTE: For a segment award to be presented there must be at least four tire brands with sufficient sample. No SUV segments awards have been presented due to insufficient market representation among rankable tire brands in the segment.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    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, JD Power and Associates and Platts, a leader in commodities information.  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/.

    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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  • 2012 Canadian Home Insurance Study

    Many Canadians are Under-Insured or Not Covered From Catastrophic Loss From Earthquake or Flooding

    1970-01-01

    jdp-root

    TORONTO: 9 November 2012 — Recent severe weather and environmental events, such as Hurricane Sandy and the earthquakes in British Columbia highlight that many Canadian insurance customers lack catastrophic loss coverage, according to the JD Power and Associates 2012 Canadian Home Insurance StudySM released today. 

    The study finds that 35 per cent of Canadian insurance customers indicate that they have some form of added flood coverage to their home insurance policy–which is interpreted as sewer backup protection since over-land flood insurance is not offered–while only 22 per cent add earthquake coverage, leaving a large percentage of insurance customers without coverage in the occurrence of a catastrophic event.

    “Home insurance customers who discover the limitations of their basic coverage after a major event occurs, have waited too long. With more than three-fourths of Canadian home insurance customers uninsured for earthquakes, many may find themselves in a lengthy discussion with their insurer in the event of an earthquake,” said Jeremy Bowler, senior director of the insurance practice at JD Power and Associates. Furthermore, in the case of sewer backup claims, it is a common misperception among homeowners that their basic home insurance policy provides this coverage.”

    A regional comparison shows that 31 per cent of insurance customers in both the Quebec and Western regions purchase earthquake coverage, while only 10 per cent do so in the Atlantic/Ontario Region. Specifically, insurance customers in the province of British Columbia have the highest penetration of earthquake coverage, primarily due to the region’s susceptibility to earthquakes. However, only 56 per cent of customers in this province state they purchase earthquake insurance. 

    “In comparison, earthquake-prone states in the United States, such as California, have far fewer home insurance customers carrying earthquake insurance on their policy, only 21 percent,” said Bowler. “In fact, the national average of U.S. insurance customers who have earthquake insurance is 6 per cent, which is 16 percentage points lower than the Canadian national average.”

    Sewer backup insurance is purchased nationally at a higher rate than earthquake insurance. Customers in the Quebec Region have the highest rate of purchasing sewer backup insurance at 44 per cent, compared with 37 per cent of Western Region customers and 28 per cent of customers in the Atlantic/Ontario Region. 

    Customers appreciate the extra peace of mind in having these types of environmental events covered, as satisfaction levels are notably higher among customers who purchase sewer backup and/or earthquake policies from their insurer. Among customers who do not have either a flood or earthquake policy with their insurer, overall satisfaction is 763 (on a 1,000-point scale). However, among customers who do purchase at least one of these policies, satisfaction is 780. Among customers who purchase both policies, overall satisfaction is 808–which is 45 points higher than among customers who do not purchase either of these policies.

    Canadian Home Insurance Rankings and Results

    The study measures customer satisfaction with home insurance companies by examining five factors: billing and payment; claims; interaction; policy offerings; and price.

    While satisfaction has increased in each region, the degree of improvement and key drivers vary. Customer satisfaction with home insurers has improved the most in the Atlantic/Ontario Region to 760, up a significant 21 points from 2011. Increased satisfaction with billing and payment, policy offerings, and interaction are primary contributors to improvement in this region, compared with 2011. Overall satisfaction in the Western Region (754) has increased by 12 points year over year due to increases in both policy offerings and interaction. Overall satisfaction in the Quebec Region has stayed level year over year, increasing 1 point to 809 from 2011.

    Western Region:

    BCAA ranks highest in this region with a score of 788. Following BCAA in the rankings are Canadian Direct (762) and Johnson Insurance (756).

    Atlantic/Ontario Region:

    Belairdirect (778) ranks highest in the Atlantic/Ontario Region. State Farm and Co-Operators follow in the rankings with scores of 769 and 768, respectively.

    Quebec Region:

    Le Capitale (834) ranks highest in the Quebec Region, closely followed by Belairdirect (829) and Personal (827).

    The 2012 Canadian Home Insurance Study is based on responses from more than 7,716 home insurance customers. Survey data was collected from May through June 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, JD Power and Associates and Platts, a leader in commodities information.  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:

    Gal Wilder; Cohn & Wolfe; Toronto, Canada; (647) 259-3261; [email protected]
    Beth Daniher; Cohn & Wolfe; Toronto, Canada; (647) 259-3279; [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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  • 2012 Malaysia Initial Quality Study (IQS)

    Overall New-Vehicle Quality in Malaysia Improves for a Third Consecutive Year

    1970-01-01

    jdp-root

    SINGAPORE: 1 November 2012 — Overall new-vehicle initial quality in Malaysia improves notably for a third consecutive year, according to the JD Power Asia Pacific 2012 Malaysia Initial Quality StudySM (IQS) released today.

    The study, now in its 10th year, examines new-vehicle quality during the first two to six months of ownership. The study measures 228 problem symptoms covering eight vehicle components: vehicle exterior; driving experience; features/controls/displays; audio/entertainment/navigation; seats; HVAC; vehicle interior; and engine/transmission. All problems are summarized as the number of problems reported per 100 vehicles (PP100), with a lower PP100 score indicating a lower rate of problem incidence and higher performance.

    Overall initial quality in Malaysia averages 111 PP100 in 2012, an improvement from 124 PP100 in 2011 and 147 PP100 in 2010. Initial quality has improved from 2011 in six of the eight problem categories: vehicle exterior; driving experience; audio/entertainment/navigation; HVAC; vehicle interior; and engine/transmission. The biggest improvements have occurred in the engine/transmission category.

    The most frequently cited problems among new-vehicle owners include excessive wind noise; noisy brakes; engine loses power when air conditioning is on; excessive fuel consumption; and difficulties opening or closing rear side doors. The top four problems are consistent with those cited in the 2011 study. The problem of the rear side doors difficult to open or close, which is new to the top five, was particularly prevalent among compact and entry midsize cars.

    The study finds that buyers’ perceptions of vehicle quality improve when salespersons demonstrate the vehicle’s features during a test drive before purchase. New-vehicle owners whose salesperson demonstrated the vehicle’s features during the test drive report fewer initial quality problems than do those whose salesperson did not demonstrate the features (92 PP100 vs. 128 PP100, respectively).

    “Problems reported by new-vehicle owners sometimes result from insufficient knowledge of how to properly operate a feature,” said Mohit Arora, executive director at JD Power Asia Pacific, Singapore. “The test drive notably provides a unique opportunity to present dynamic features to new-vehicle buyers, and more importantly to newly licensed drivers.”

    More than one-half (51%) of customers who say they are “delighted” or “pleased” with their overall vehicle quality (providing ratings of eight or higher on a 10-point scale) also say they “definitely would” recommend the model they purchased, compared with only 19 percent among those who say they are “indifferent” or “disappointed” (providing ratings of seven or below).

    “Initial vehicle quality may have a considerable impact on customer acquisition in Malaysia, as it helps boost advocacy,” said Arora. “Therefore, it is of utmost importance for manufacturers to pursue efforts to raise the quality for locally produced vehicles in order to sustain their growth momentum.”

    2012 Malaysia IQS Ranking Highlights

    Among the five model-level segment awards, Toyota receives three and Honda receives two.

    The Toyota Avanza ranks highest in the MPV/van segment for a third consecutive year with a score of 52 PP100. Following in the segment rankings are the Toyota Innova (75 PP100) and Perodua Alza (110 PP100).

    In the pickup segment, the Toyota Hilux ranks highest for a second consecutive year with 41 PP100.

    In the premium midsize car segment, the Toyota Camry ranks highest with 47 PP100, followed by the Honda Accord (55 PP100).

    The Honda City ranks highest in the entry midsize segment for a fourth consecutive year with a score of 54 PP100. Following in the segment rankings are the Toyota Vios (77 PP100) and Naza Forte (91 PP100).

    In the midsize car segment, the Honda Civic ranks highest with 30 PP100, followed by the Toyota Corolla Altis (55 PP100).

    The 2012 Malaysia Initial Quality Study is based on responses from 2,971 new-vehicle owners who purchased their vehicle between August 2011 and May 2012. The study includes 55 passenger car, pickup and utility vehicle models of 16 brands. The study was fielded between February and July 2012.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    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, JD Power and Associates and Platts, a leader in commodities information. 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:

    XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [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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  • 2012 China Initial Quality Study (IQS)

    Domestic Brands in China Narrow Initial Quality Gap with International Brands, As Industry-Wide Problem Rate Declines to Historic Low

    1970-01-01

    jdp-root

    SHANGHAI: 31 October 2012 — Automakers in China achieve significant improvements in initial quality this year, narrowing the gap between domestic and international brands and driving the overall industry average problem rate in that market to a record low, according to the JD Power Asia Pacific 2012 China Initial Quality StudySM (IQS) released today.  

    The study, now in its 13th year, examines problems experienced by new-vehicle owners within the first two to six months of ownership. The study examines problems experienced by owners in two distinct categories: design-related problems and defects and malfunctions. The overall initial quality score is determined by problems reported per 100 vehicles (PP100), with a lower rate of problem incidence indicating higher quality.

    Initial quality of domestic brand models increases significantly in 2012, following a higher number of owner-reported problems experienced in 2011. Overall initial quality of domestic brands improves to 212 PP100 in 2012 from 232 PP100 in 2011, narrowing the gap with international brands to 95 PP100. Initial quality of international brands also improves year over year, to 117 PP100 in 2012 from 131 PP100 2011.

    “Chinese domestic brands outpace the industry quality improvement in 2012,” said Dr. Mei Songlin, vice president and managing director of JD Power China Operations. “We are seeing remarkable improvements, particularly in the areas of ease in shifting gears with manual transmission, less incidence of brake dust and improved fuel efficiency. Yet despite this historic milestone for Chinese brands as a whole, no domestic nameplate exceeds the industry average in initial quality. This signals significant room for continued future improvement.”

    Overall initial quality across the industry averages 146 PP100 in 2012, which represents the lowest number of problems since the inception of the study in 2000. Initial quality has improved by an average of 16 PP100 from 2011, largely driven by improvements among Korean and Chinese domestic brands.

    The industry-wide improvement in initial quality is also due to the growing shift among vehicle owners from purchasing lower-end models to purchasing higher-end models, which consistently have fewer initial quality issues. The market share of vehicles in the SUV and luxury segments (including entry luxury, luxury and luxury SUV) have increased by 4 percent and 3 percent, respectively, from 2011, according to LMC Automotive, JD Power’s strategic partner in automotive intelligence and forecasting.  Average PP100 scores in the SUV and luxury segments are 136 PP100 and 73 PP100, respectively, which are significantly lower than scores in the compact (233 PP100) and mini van (191 PP100) segments, whose market shares have declined by 1 percent and 4 percent, respectively, from 2011.

    Korean brands have the highest overall initial quality at 93 PP100, an improvement of 31 PP100 from 2011. In contrast, initial quality for Japanese brands–which follow Korean brands when examining quality by manufacturer origin–declines slightly year over year to 113 PP100 in 2012 from 108 PP100 in 2011.

    Maintaining high initial quality is critical to both retaining existing customers, as well as attracting new customers. According to the JD Power Asia Pacific 2012 China Sales Satisfaction Index (SSI) Study SM, vehicle quality is among the top three drivers of purchase decisions made by new-vehicle buyers. The 2012 China IQS finds that among owners who have a problem-free experience with their vehicle, 36 percent indicate they “definitely will” recommend their brand to others, while 18 percent indicate they “definitely will” repurchase the brand. In contrast, among owners who experience more than one problem with their vehicle, the rates of those who say they “definitely will” recommend and repurchase decline to 27 percent and 13 percent, respectively.

    “To further improve customer experiences with initial quality, focus should be placed on the most bothersome and most frequently reported problems experienced by vehicle owners,” said Tony Zhou, automotive research director at JD Power China Operations.  

    Excessive fuel consumption has remained the most frequently reported problem since 2007. However, engine power loss associated with the air conditioning ties with excessive fuel consumption as the most frequently reported problems in 2012. New-vehicle owners in China tend to be particularly sensitive to noise problems, with brake noise, wind noise, engine noise and fan/blower noise accounting for four of the top 10 most commonly reported problems.

    “The automotive industry in China still has a lot of room for improvement, as it continues to lag behind such mature markets as the United States in initial quality,” said Zhou. “It is important for automakers to focus on defects and malfunctions, but improving design quality to make vehicles more user-friendly may also help reduce the number of problems owners experience.”

    2012 China IQS Ranking Highlights

    Lexus is the highest-ranked nameplate in the study in initial quality, averaging 54 PP100. Lexus also ranks highest in the JD Power and Associates 2012 U.S. Initial Quality StudySM (IQS). Mercedes-Benz (72 PP100) ranks second highest, followed by BMW (74 PP100) and Audi (76 PP100). Dongfeng Honda (88 PP100) ranks fifth overall.  

    The model-level rankings show considerable global diversity. Among the 215 models examined in the study, two models from Beijing Hyundai (Hyundai Moinca; Hyundai Sonata) rank highest in two segments; and Dongfeng Yuedai Kia (Kia K2) ranks highest in a segment. Japanese brands FAW Toyota (RAV4), Dongfeng Honda (Civic) and Changan Suzuki (Alto) each garner one model-level award. U.S. brand Shanghai GM earns two awards (Chevrolet Sail and Buick GL8). German brand BMW (7 Series) receives one award. China domestic brand Wuling (Hongguang) receives one award.

    In total, 10 vehicle segments are eligible for awards in the 2012 China IQS. Models ranking highest overall in their respective segments include:

    1. Compact: Suzuki Alto
    2. Premium Compact: Chevrolet Sail
    3. Entry Midsize: Kia K2
    4. Midsize: Honda Civic
    5. Lower Premium Midsize: Hyundai Moinca
    6. Upper Premium Midsize: Hyundai Sonata
    7. Luxury: BMW 7 Series
    8. SUV: Toyota RAV4
    9. MPV: Buick GL8
    10. Mini Van: Wuling Hongguang

    The 2012 China Initial Quality Study (IQS) is based on evaluations from 20,639 owners of new vehicles purchased between October 2011 and June 2012. The study analyzes models in 12 vehicle segments and includes 215 different passenger-vehicle models covering 68 different makes. The study was fielded from April 2012 to August 2012 in 43 major cities across China.

    JD Power Voice-of-the-Customer benchmark studies evaluate products and services based on consumer feedback on their experiences to help businesses make informed decisions about product and service improvements. The research is conducted through an entirely independent process that is funded by JD Power, which is key to the company’s independence and unbiased position. Typically, studies are derived from a random national sample of customers who use products and services across a number of industries. Study results are based solely on the opinions of customers. The opinion of JD Power is not included in the study results.

    The China Initial Quality Study (IQS) is one of the consumer-based benchmark studies conducted by JD Power Asia Pacific in China. Other 2012 studies conducted by JD Power Asia Pacific include:

    1. The China New-Vehicle Intender Study (NVIS), which examines pre-purchase perceptions and considerations, was released in June.
    2. The China Customer Service Index (CSI) Study, which examines satisfaction with the after-sales service experience among vehicle owners between 12 and 24 months of ownership, was released in July.
    3. The China Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in August.
    4. The China Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new-vehicle’s performance and design during the first two to six months of ownership, will be released in late November.
    5. The China Vehicle Dependability Study (VDS), which evaluates overall vehicle dependability during the first 25-36 months of ownership, will be released in mid December.

    JD Power Asia Pacific today announced the launch its corporate weibo (a Chinese microblogging website). For more information about the China Initial Quality Study (IQS), please follow JD Power at http://e.weibo.com/jdpowerchina.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected] . Please follow JD Power at http://e.weibo.com/jdpowerchina.

    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, JD Power and Associates and Platts, a leader in commodities information.  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/.

    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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  • 2012 India Customer Service Index (CSI) Study

    Customer Expectations of Convenience during Vehicle Service Rises Significantly in India

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    SINGAPORE:  31 October 2012 — Vehicle owners in India increasingly seek speed and convenience when having their vehicle serviced, according to the JD Power Asia Pacific 2012 India Customer Service Index (CSI) Study SM released today.

    The study, now in its 16th year, measures satisfaction among vehicle owners who visit an authorized dealership service center for maintenance or repair work between the first 12 to 24 months of vehicle ownership. The study measures overall satisfaction in five factors (listed in order of importance): service quality; vehicle pick-up; service advisor; service facility; and service initiation. Overall customer satisfaction is measured on a 1,000-point scale, with a higher score indicating higher satisfaction.

    The study finds that vehicle owners increasingly consider faster turnaround in service, door-step service and alternate transportation arrangements post vehicle drop-off as essential to satisfaction.

    Satisfaction is significantly higher among vehicle owners whose dealership provides an alternate form of transportation while their vehicle is being serviced than among those who do not receive this service. Correspondingly, during the past three years, the gap in satisfaction between these two groups of customers has increased by 41 points. The expectation for this service continues to outpace the delivery of it from dealerships by nearly 29 percent.

    Door-step service for vehicle owners also contributes to higher satisfaction scores. Overall satisfaction is 43 points higher among owners whose vehicle is picked up from and dropped off at their home or work by the dealership than among those who take their vehicle to the dealership service center themselves.

    “Vehicle owners view the service process as an essential errand that needs to be completed,” said Mohit Arora, executive director JDPower Asia Pacific. “With increasing stress of the daily commute, time commitments and other complexities in their daily life, owners highly appreciate the actions that dealers take to mitigate the effort required for service.”

    Overall customer satisfaction with the dealership service experience has increased by 10 points from 2011 to 834 in 2012, demonstrating that operational improvements continue to remain a focus for the industry. Satisfaction has improved in all five factors, with the largest increase in the service quality factor.

    The study also finds that during the past three years, there has been a significant reduction in the cost of maintaining and repairing vehicles, which correlates to the improvement in the overall quality of vehicles being produced. In 2012, vehicle owners have experienced significantly fewer problems, compared with 2010. This year, 10 percent of owners have experienced a problem with their petrol-fueled vehicle during the initial 12 to 24 months of ownership, down from 17 percent in 2010. Similarly, the percentage of owners who have experienced a problem with their diesel-powered vehicle has declined to 14 percent in 2012 from 24 percent in 2010.   

    “While reduction in the number of problems experienced during ownership has contributed to the reduction in the cost of vehicle maintenance and repairs for owners, the overall cost of running vehicles has gone up,” said Arora. “Fuel price increases are the primary reason for the rising costs, especially for petrol models, for which a 13 percent reduction in the cost of maintenance has been offset by a 31 percent increase in the cost spent on fuel between 2010 and 2012.”

    Maruti Suzuki ranks highest in customer satisfaction with dealer service for a 13th consecutive year, with a score of 879 points. Maruti Suzuki performs particularly well across all factors. Mahindra is the most improved make in 2012, significantly improving across all five factors of service operations.

    Vehicle owners who are highly satisfied with dealer service tend to have higher levels of advocacy and loyalty to the dealership and the brand. Among owners who are highly satisfied with their service experience at the dealership (service satisfaction scores averaging 930 and above), 93 percent indicate they “definitely would” revisit their service dealer for post-warranty service. In contrast, only 38 percent of less-satisfied owners (service satisfaction scores averaging 768 and below) say the same. Similarly, 85 percent of highly satisfied owners indicate they “definitely would” purchase their next vehicle from the service dealer, compared with just 31 percent of those who are less satisfied.

    The 2012 India Customer Service Index Study is based on evaluations from 7,594 vehicle owners. The study was fielded from May to August 2012 and includes owners who purchased their vehicle between May 2010 and August 2011.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    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]

    Xingti Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [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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  • 2012 Vietnam Customer Service Index (CSI) Study

    Explaining Work Performed Immediately After Vehicle Service Positively Impacts Customer Satisfaction in Vietnam

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    SINGAPORE: 31 October 2012 — Despite an overall improvement in vehicle owners’ satisfaction with their service visit experience, it remains essential that service advisors spend time explaining the work performed to customers when they pick-up their vehicle, according to the JD Power Asia Pacific 2012 Vietnam Customer Service Index (CSI) StudySM released today.

    Now in its fourth year, the study measures new-vehicle owner satisfaction with the after-sales service experience by examining dealership performance in five factors. In order of importance, they are service quality; vehicle pick-up; service facility; service advisor; and service initiation. CSI performance is reported as an index score based on a 1,000-point scale.

    The study finds that satisfaction levels are notably lower among customers whose service advisor did not spend time to explain the work completed on their vehicle (798 points compared with 835).

    “Explaining to customers the work that was performed on their vehicle enables them to raise any questions they may have regarding their vehicle or the service center,” said Rajeev Nair, director at JD Power Asia Pacific, Singapore. “This also allows customers to better understand the time required for the service as well as any charges incurred.”

    Among the seven brands ranked in the study, Toyota ranks highest in overall satisfaction with a score of 843. Toyota performs particularly well in the service quality, service advisor, service initiation and service facility factors. Mercedes-Benz ranks second with a score of 832, performing particularly well in the vehicle pick-up factor. Overall service satisfaction averages 831 in 2012, a 19-point increase from 2011.

    A majority (94%) of customers indicate the time to complete the work on their vehicle was within the promised period, an improvement of 5 percent from 2011. On average, 93 percent of customers say the time taken to service their vehicle met or exceeded their expectations. However, among the approximately 7 percent of customers who indicate that service took longer than expected, satisfaction averages 746 points compared to 837 among those service customers whose expectations were met or exceeded.

    “It is encouraging to see an increase in the number of customers indicating that their vehicle was ready when promised, but service advisors could improve the service experience further by informing customers of the status of their vehicle during the service visit,” said Nair. “Reassuring customers that the service is running on time emphasizes the reliability of the service center, improves overall customer satisfaction and, importantly, allows customers to keep to their own schedule.”

    On average, 18 percent of customers are not kept informed of their vehicle’s status, resulting in lower overall satisfaction with the service experience (799 points, compared with 838 points among those who were updated). Indeed, since the vast majority of customers wait at the dealership while their vehicle is serviced, keeping them informed on the status of their vehicle is vital.

    Highlighting the importance of satisfaction, 85 percent of customers who are highly satisfied with their service experience (index scores of 884 or higher) say they “definitely would” revisit the service dealer for warranty service, compared with only 54 percent of customers who have lower satisfaction (scores below 783 index points) who say the same. Moreover, 68 percent of customers who indicate that their overall service experience was better than expected say they “definitely would” revisit the same dealer for post-warranty work, compared with only 10 percent of those whose overall service experience was worse than expected who say the same.

    “The importance of consistently delivering a highly satisfying service experience cannot be underestimated,” said Nair. “Customers who are highly satisfied are far more likely to return to the same dealership for both warranty and post-warranty work.”

    The 2012 Vietnam Customer Service Index (CSI) Study measures the overall satisfaction of vehicle owners who visited an authorized dealer/service center for maintenance or repair work during the first 12 to 24 months of ownership. This study is based on responses from 1,140 new-vehicle owners who purchased their vehicle between May 2010 and July 2011 and took their vehicle for service to an authorized dealer or service center between November 2011 and July 2012. The study was fielded between May and July 2012.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    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, JD Power and Associates and Platts, a leader in commodities information. 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:

    XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [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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  • 2012 U.S. Auto Claims Satisfaction Study

    Despite Consumers Paying More, Satisfaction with Fairness in the Settlement Drives Increase in Overall Satisfaction with Auto Insurance Claims

    1970-01-01

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    WESTLAKE VILLAGE, Calif.: 29 October 2012 — Claimant satisfaction with their auto claims experience has increased from last year, driven primarily by an improvement in their perceptions of the fairness of settlement terms, according to the JD Power and Associates 2012 U.S. Auto Claims Satisfaction StudySM released today.  

    The study measures claimant satisfaction with the claims experience for auto physical damage loss. Depending on the complexity of the claim, a claimant may experience some or all of the following factors measured in the study: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement.

    For a fifth consecutive year, Auto-Owners Insurance ranks highest in overall satisfaction with a score of 887 (on a 1,000-point scale). Following Auto-Owners Insurance are Amica Mutual and Erie Insurance in a tie (876) and Automobile Club of Southern California (AAA) and COUNTRY in a tie (874).

    Overall claimant satisfaction has increased significantly to 852 index points, a 6-point improvement from 2011. Satisfaction has increased in five of the six factors year over year, with settlement, the most important factor contributing to overall satisfaction, increasing by nine points to 846. Settlement satisfaction has increased by 16 points among claimants with a total loss. The average total loss settlement has increased by nearly $690, compared with 2011, driven by increasing used-vehicle values throughout much of 2012.

    “As used vehicle sale prices increase, the value of the loss settlement also increases,” said Jeremy Bowler, senior director of the insurance practice at JD Power and Associates. “According to our Power Information Network, a database of vehicle sales transactions, used-vehicle sales prices peaked in May and June of this year, averaging nearly $18,500, compared with approximately $17,700 in January of this year.”

    Satisfaction with settlement has improved overall despite claimants spending more of their own money–the average out-of-pocket costs incurred have increased by $26 from 2011, to $403. Out-of-pocket costs include claimants’ deductible and any additional expenses incurred, such as rental car or repair costs. Settlement satisfaction relies heavily on claimants’ perceptions of the fairness of the settlement. In the 2012 study, this is an indication that insurers are managing claimants’ expectations more effectively, as satisfaction has increased despite the increase in costs incurred by claimants.     

    “Providing exceptional customer service is an important element in driving the perception of being treated fairly,” said Bowler “Claimants’ perception of fairness is more than just the amount of the settlement, especially for repairable vehicles, where claimants are more focused on their vehicle being returned in its pre-accident condition.  Focusing on keeping claimants updated and quickly communicating what will be covered in the claim also have a major impact on their perceptions of how fairly they are treated.”  

    One area in which insurers improve the most this year is increasingly offering more options to keep claimants informed of the progress of their claim, with 64 percent of claimants indicating having been offered options, compared with 61 percent in 2011. Failing to adequately explain and update claimants may lead to their questioning the settlement offer and potentially increasing the rate of negotiations, which negatively impact overall satisfaction.

    The management discussion based on the study, available for download here, provides an in-depth examination of how fairness impacts overall satisfaction with the automotive insurance claims process.
     
    The 2012 U.S. Auto Claims Satisfaction Study is based on responses from more than 12,508 auto insurance customers who settled a claim within the past 6 months. The study excludes claimants whose vehicle only incurred glass/windshield damage or was stolen, or who only filed roadside assistance claims. Survey data was collected between November 2011 and September 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; JD Power and Associates; 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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  • 2012 U.S. Navigation Usage and Satisfaction Study

    Vehicle Owners Ask for Smartphone Integration and Better Voice Controls, as Satisfaction with Factory-Installed Navigation Systems Declines

    1970-01-01

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    WESTLAKE VILLAGE, Calif.: 11 January 2013 — Despite many new-vehicle owners saying their factory-installed navigation system is better than their previous system, navigation system satisfaction has declined from 2011, as owners are frustrated by the complexity of menu systems, voice control commands and inputting destinations, according to the JD Power and Associates 2012 U.S. Navigation Usage and Satisfaction StudySM released today.
     
    Now in its 14th year, the study identifies six factors that contribute to overall satisfaction with factory-installed navigation systems. In order of importance, they are ease of use; routing; navigation display screen; speed of system; voice directions; and voice activation. The study also measures quality by examining problems per 100 (PP100) vehicles, in which a lower score reflects higher quality.

    On average, satisfaction with navigation systems is 681 (on a 1,000-point scale), a 13-point decrease from 694 in 2011. Satisfaction declines in all factors, most notably in ease of use (637), which declines by 25 points year over year.  

    As smartphones become more sophisticated in the functions they can perform, more owners are using them for navigation. In the 2012 study, 47 percent of vehicle owners indicate they use a downloaded app on their smartphone for navigation in their vehicle, compared with 37 percent in 2011. Notably, 46 percent of owners indicate they “definitely would not” or “probably would not” repurchase a factory-installed navigation system if their smartphone navigation could be displayed on a central screen in their vehicle.

    “Manufacturers of navigation systems face a serious challenge as smartphone navigation usage continues to rise and gains preference among vehicle owners,” said Mike VanNieuwkuyk, executive director of global automotive at JD Power and Associates. “Free apps, up-to-date maps and a familiar interface allow for quicker routing and improved interaction, including better voice recognition. Manufacturers have a window of opportunity to either improve upon the current navigation system platforms or focus on new ways to integrate smartphones.”

    The study finds that input and selection controls account for six of the top 10 most frequent problems owners experience with their factory-installed navigation system. The remaining four problems are the inability to read the text due to size or location; the map not showing enough street names; the system was slow to boot/connect; and the screen lighting not working properly.

    “As more than one-half of the top problems relate directly to inputting information and interacting with the navigation system, there is a clear need for manufacturers to improve upon the interaction between the user and the navigation system,” said VanNieuwkuyk.

    Another key study finding is the level of interest in voice activation, as 67 percent of owners without voice activation in their vehicle indicate they would want it in their next navigation system, and 80 percent of those with voice activation say they would want it again in their next system. While this is a highly sought-after feature, voice activation satisfaction is 544, the lowest factor score in the study–93 points below the factor with the second lowest score, ease of use. In addition, difficulty using voice activation controls is the third-most-frequently reported problem in the study at 27.8 PP100.

    “Smartphones and natural voice recognition have raised owner expectations among all vehicle segments, and manufacturers are not yet meeting these demands,” said VanNieuwkuyk.

    Satisfaction with the basic functions of factory-installed navigation systems, such as map routing, declines less than all those measured in the study, indicating they are performing as owners expect them to. However, satisfaction with the ease of using the system–such as connectivity with smartphones, user interface and integration with other media devices in the vehicle—declines more than the other functions measured.

    “We’re seeing a demand from owners for connectivity with not only other in-vehicle systems, but also their own equipment and smartphone. Navigation systems are no longer viewed as a stand-alone component, but as part of a media, safety and infotainment package, and are expected to seamlessly work together, but in many cases are falling short of owner expectations.”

    Among vehicle models with a factory-installed navigation system that perform particularly well are the Garmin-supplied Chrysler 300 Series and Dodge Charger and the Harman-supplied Porsche Cayenne. The Garmin systems in both the Chrysler 300 Series and the Dodge Charger perform well in all factors, particularly in ease of use. The Harman system in the Porsche Cayenne also performs well in all factors, particularly voice activation.

    The 2012 U.S. Navigation Usage and Satisfaction Study is based on responses from 20,704 owners who recently purchased or leased a new 2012 model-year vehicle with a factory-installed navigation system. The study was fielded in October and November 2012.


    About JD Power and Associates


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


    About The McGraw-Hill Companies


    The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at 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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