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  • 2013 Japan Initial Quality Study (IQS)

    Incidence of Fuel Consumption Problems Decreases as Fuel Efficiency Improves

    2013-08-29

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    TOKYO: 29 August 2013 — New-vehicle owners are citing fewer fuel consumption-related problems and an increase in fuel efficiency, according to the JD Power Asia Pacific 2013 Japan Initial Quality StudySM (IQS) released today.  

    The study, now in its third year, measures new-vehicle quality in the first two to nine months of ownership. The study captures problems experienced by owners in 227 problem areas that affect quality across nine categories: vehicle exterior; driving experience; features/ controls/ displays; audio/ entertainment/ navigation (AEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; engine/ transmission; and other problems. All problems are summarized as the number of reported problems per 100 vehicles (PP100), with lower scores indicating higher quality performance. 

    The study finds that problems related to fuel consumption decline to 2.6 PP100 in 2013, down from 3.1 PP100 in 2012. Additionally, fuel efficiency has improved by 3 percent, on average, compared with the 2012 study. 

    “These results indicate that automakers are making improvements in engine and transmission performance, including fuel efficiency,” said Atsushi Kawahashi, senior director of the automotive division at JD Power Asia Pacific.  

    Overall initial quality averages 100 PP100 in 2013, a slight improvement from 101 PP100 in 2012. While the incidence of defect/ malfunction problems1 has increased by 2.4 PP100, the number of design-related problems2 has decreased by 4.7 PP100 from 2012. 

    Although the number of defect/ malfunction problems in seven factors of the nine factors has increased in 2013, owners are reporting fewer design-related problems in such areas as windows fogging, transmission, clock difficult to use and excessive fuel consumption. 

    While engine/ transmission-related problems have decreased to 17.4 PP100 they continue to be the most-frequently reported problem area for a second consecutive year. 

    The number of problems reported has decreased year over year in all attributes related to automatic transmission (AT)/ continuously variable transmission (CVT), specifically with respect to how the transmission shifts gears. 

    The study finds that 59 percent of owners report zero problems with their vehicle, while 19 percent report one problem; 9 percent report two problems; and 13 percent report three or more problems. The study also finds variability across brands for design problems compared with defect/ malfunction problems. 

    “For automobile manufacturers, it is important not only to focus on manufacturing quality, but also to have a better understanding of consumer-perceived quality during the product design stage, which would eventually satisfy customers in this market,” said Kawahashi. 

    Vehicle problems have a direct impact on customer loyalty. For example, vehicle owners who say they “definitely will” purchase their next vehicle from the same brand report an average of 70 PP100, while those who say they “probably will not” or “definitely will not” purchase their next vehicle from the same brand report an average of 154 PP100. 

    “Vehicle quality during the initial ownership period plays a great role in building long-term customer loyalty,” said Kawahashi. “The more frequently owners experience problems, the more likely they are to defect when they buy their next vehicle.”

    2013 Ranking Highlights

    Lexus ranks highest for a second consecutive year, averaging 74 PP100. Lexus is followed by Toyota (89 PP100) and Honda (91 PP100), remaining in the same ranking order from 2012. 

    Rankings in the four vehicle segments are: 

    • Mini-car segment: Honda N-ONE ranks highest, followed by the Daihatsu Mira Cocoa and Suzuki Lapin, respectively. 
    • Compact segment: Toyota Passo ranks highest, followed by Toyota AQUA, and Toyota Ractis and Toyota Vitz in a tie.  
    • Midsize segment: Toyota Prius ranks highest, followed by the Honda Fit Shuttle and Nissan X-TRAIL, respectively. 
    • Minivan segment: Toyota Voxy ranks highest, followed by the Mazda Premacy and Toyota Vellfire, respectively.  

    The 2013 Japan Initial Quality Study is based on responses from 11,210 purchasers of new vehicles in the first two to nine months of ownership. The study includes 16 automotive brands and 108 models and ranks models with a sample size of 100 or more usable returns. The study was fielded in May 2013. The Japan Initial Quality Study (IQS) is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in Japan. 

    Other 2013 studies conducted by JD Power Asia Pacific include: 

    • The 2013 Japan Winter Tire Customer Satisfaction Index Study, which measures overall customer satisfaction with winter tires, was released in May. 
    • The 2013 Japan Sales Satisfaction Study (SSI), which measures satisfaction with the new-vehicle sales process, was released in August. 
    • The 2013 Japan Customer Satisfaction Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities, will be released in late September. 
    • The 2013 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, will be released in late September. 
    • The 2013 Japan Original Equipment Tire Satisfaction Study, which measures customer satisfaction with original equipment tires, will be released in October. 
    • The 2013 Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with OEMs and aftermarket navigation system, will be released in October. 
    • The 2013 Japan Replacement Tire Satisfaction Study, which measures customer satisfaction with replacement tires, will be released in October. 

     

    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 japan.jdpower.com. Media email contact: [email protected]

    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.

    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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    1Refers to a complete breakdown or malfunction of any component, feature or item. 
    2Refers to components of features that may be functioning properly but are still perceived as problems by the owner because they are difficult to understand or use.

     

  • 2013 India Sales Satisfaction Index (SSI) Study

    Vehicle Shoppers Are Increasingly Considering a Used Vehicle during the Shopping Process in India

    2013-08-29

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    Special Video for India Automakers: “Recognizing Excellence, Driving Results!”

    In this video, we tackled the following issues:
    • Chapter one: Rankings show stiff neck-to-neck competition among nameplates
    • Chapter two: Tata’s improvement in the 2013 India SSI Study
    • Chapter three: Used Car Business in India and its growing importance for consumers and automakers
    • Chapter four: Car buyer’s Internet Usage and Behavior in India

     

    SINGAPORE: 29 Aug 2013 — Vehicle shoppers in India are increasingly considering a used vehicle during their shopping process for a new vehicle, according to the JD Power Asia Pacific 2013 India Sales Satisfaction Index (SSI) StudySM released today. 

    The study finds that 13 percent of new-vehicle buyers considered a used vehicle during their shopping process, a 10 percent increase over the past three years. Additionally, 37 percent of new-vehicle buyers who considered a used car used the Internet during their shopping process. In contrast, only 27 percent of buyers who did not consider a used vehicle used the Internet while shopping.  

    Shoppers who consider a used vehicle use the Internet to search for information regarding vehicle financing, including trade-in options, and service-related aspects. In comparison, shoppers who do not consider a used vehicle use the Internet primarily to look for vehicle features and specifications.

    “Automakers have been increasingly focusing on the used-car business in India, specifically with certified used cars which come with a manufacturer warranty,” said Mohit Arora, executive director at JDPower Asia Pacific, Singapore. “Additionally, automakers have ushered in transparency via their websites that provide real-time information on used vehicle inventory and price information. These activities assure customers of a quality product by providing detailed insights about the vehicles, thereby propelling the consideration of a used-vehicle purchase.”

    Now in its 14th year, the study examines seven factors that contribute to new-vehicle buyers’ overall satisfaction with the sales experience (listed in order of importance): delivery process, delivery timing, salesperson, sales initiation, dealer facility, paperwork and deal. For the first time in 2013, the study examines sales satisfaction in two vehicle segments: luxury and mass market. The results of the luxury segment will be announced in mid-September.

    Overall sales satisfaction in the mass market segment is 841 index points on a 1,000-point scale, a 21-point increase from 2012. On average, automakers post strong increases across all the factors, most notably in salesperson, paperwork and delivery timing.

    The overall improvement in satisfaction is driven by a higher quality of engagement between salespersons and customers. The majority (96%) of customers indicate that their salesperson spent sufficient time in conversation focused only on them. Additionally, 61 percent of customers indicate that their salesperson demonstrated the vehicle’s features and benefits during the test drive, up from 54 percent in 2012. Further,  overall delivery time for new vehicles has declined significantly to 10 days in 2013 from 12 days in 2012.

    “Sharp growth in the recent past had resulted in stretching the dealers’ abilities in engaging customers effectively during the sales process,” said Arora. “Due to relatively lower showroom traffic in 2013, dealers have made efforts to ensure a higher level of engagement during the sales process. In addition, vehicle delivery turnaround time has declined significantly.” 

    Arora noted that all these aspects have resulted in a better shopping experience for customers. 

    “It would be prudent for automakers and their networks to continue this level of customer engagement, even when throughputs reach higher levels,” said Arora.

    Customers who are highly satisfied with the overall purchase experience have higher levels of advocacy and loyalty toward the dealership and the vehicle brand, compared with highly dissatisfied customers. Among customers who are highly satisfied with their purchase experience at the dealership (satisfaction scores of 920 or higher), 91 percent say they “definitely will” recommend their purchase dealer to a friend or relative. These owners are also far more likely to repurchase or recommend the same brand in the future. In contrast, only 50 percent of highly dissatisfied owners (satisfaction scores of 784 or below) say they “definitely will” recommend their dealer.

    Among the 13 brands ranked in the mass market segment, Honda and Maruti Suzuki rank highest (in a tie) with a score of 849. Hyundai, Mahindra and Toyota follow in the rankings, with all three brands tied at 841.  

    The 2013 India Sales Satisfaction Index (SSI) Study is based on responses from 8,434 new-vehicle owners who purchased their vehicle between September 2012 and April 2013, and includes evaluations of more than 71 models within the mass market category. The study was fielded from March to July 2013.

    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, Australia,  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

    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) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.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. www.jdpower.com/corporate

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  • August 2013: Monthly Automotive Sales Forecast

    August New-Vehicle Sales Reach Highest Level in Seven Years

    2013-08-22

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    WESTLAKE VILLAGE, Calif.: 22 August 2013 — New-vehicle sales continue the hot streak that has been trending throughout the summer selling season, with no evidence of the pace slowing, 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 August 2013 are projected to come in at 1,270,400 units, a 12 percent increase from August 2012 and the highest monthly sales volume since 2006. The seasonally adjusted annualized rate (SAAR) in August is expected to be 13.1 million units, marking the first time the selling rate has been above 13 million units for three consecutive months since the first quarter of 2007. Retail transactions are the most accurate measure of true underlying consumer demand for new vehicles.

    U.S. Retail SAAR–August 2012 to August 2013

    (in millions of units)

    JD Power expects consumer spending on new vehicles in August will approach $36 billion, which is the highest level on record. 
    “The industry as a whole continues to experience a robust improvement in demand, and our forecast for August is looking to be the best month for retail sales that we’ve seen in the past seven years,” said John Humphrey, senior vice president of the global automotive practice at JD Power. “Moreover, this strong selling environment is occurring when consumers are spending more on new vehicles than any month on record, which is a further indication of the underlying strength of the sector.” 

     

    Total Light-Vehicle Sales

    With consistency in the fleet environment, total light-vehicle sales in August 2013 are also expected to increase by 12 percent from August 2012 to 1,495,400. Fleet sales are expected to account for 15 percent of total sales, with volume of 225,000 units.

    PIN and LMC data show total sales reaching a 16 million unit SAAR in August, which is the highest since November 2007, with actual unit sales the highest since May 2007.    
    JD Power and LMC Automotive U.S. Sales and SAAR Comparisons

    1 Figures cited for August 2013 are forecasted based on the first 15 selling days of the month.
    2The percentage change is adjusted based on the number of selling days in the month (28 days in August 2013 vs. 27 days in August 2012).

    Sales Outlook 

    Based on the solid outlook for August, LMC Automotive is holding its 2013 forecast for retail light-vehicle sales at 12.8 million units and total light-vehicle sales at 15.6 million units.

     
    “The U.S. auto recovery seems to be operating on auto pilot, a welcome stage of stability at a higher pace,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “We do expect to see a lower selling rate in September as Labor Day is counted in August sales, but upside potential still outweighs downside risk in 2013 and well into 2014.”
     

    North American Production

    North American light-vehicle production year-to-date through July is up 4 percent from the same period in 2012. The industry continues to manage a lean supply-to-demand ratio, with vehicle stock at the beginning of August falling to an average 56-day supply from 61 days in July. The overall inventory level has dropped to 2.9 million units from 3.3 million units in July. 
    Ford holds on to one of the strongest increases in production from 2012, up 13 percent on boosts from the redesigned Escape and higher Explorer and F-Series volume. With Fiat-Chrysler relatively flat and General Motors off 3 percent year-to-date, the Detroit Three collectively are slightly below the industry year-over-year performance with a 3 percent increase. However, they do retain a 54 percent share of light-vehicle production in the region, the same level as in 2012. 
    Hyundai/Kia’s production growth year-to-date is the highest of the larger manufacturers, up 14 percent. This comes as inventory for the group falls from a 46-day supply to 41 in August. The volume boost is coming almost exclusively from the Elantra and redesigned Santa Fe. With weaker volume in July, the European brands are down 2 percent year-to-date. 
    LMC Automotive’s forecast for 2013 North American production is at 16.0 million units, a 4 percent increase from 2012 and in line with the year-to-date performance.

    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) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. 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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  • 2013 Canadian Full Service Investor Satisfaction Study

    Canadian Full Service Investor Satisfaction Increases, As Market and Advisor Communication Improves

    2013-08-22

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    TORONTO: 22 August 2013 — Improved market performance, coupled with effective advisor communication with their clients, help drive an increase in overall investor satisfaction with full service investment firms in Canada, according to the JD Power 2013 Canadian Full Service Investor Satisfaction StudySM released today.

    The Canadian Full Service Investor Satisfaction Study provides benchmarks for satisfaction that allow individual investment firms in Canada to compare their performance with other firms included in the study. Overall investor satisfaction with full service investment firms and financial institutions that offer wealth management and private banking services is measured in seven factors (in order of importance): investment advisor (38%); investment performance (18%); account information (17%); account offerings (14%); commissions and fees (8%); website (2%); and problem resolution (2%).

    Key Findings

    • Overall investor satisfaction with full service investment firms in Canada improves to 737, up 17 points from 2012.
    • Satisfaction improves an average of 99 points when advisors discuss fees with their investors.
    • Nearly three-fourths (72%) of highly satisfied investors indicate they will recommend their investment firm to others.

    Overall satisfaction improves to 737 (on a 1,000-point scale), up from 720 in 2012. The study finds a strong correlation between investor satisfaction and actual market performance, with only 8 percent of investors indicating a decrease in their portfolio performance in 2013, down from 29 percent in 2012.

    “Investment performance certainly helps drive an increase in overall satisfaction, but the advisor still plays a key role,” said Craig Martin, director of investment services at JD Power. “Even when the market is strong, advisors need to ensure their clients understand the reasons for their portfolio performance, explain costs and fees and manage expectations regarding risk. Relying too heavily on financial performance alone to drive investor satisfaction may have a number of pitfalls.”

    According to the study, investors are not only looking for good financial return, they are also are seeking reassurance that they are making the right investment decisions. Overall satisfaction among investors who indicate their advisor clearly communicated reasons for investment performance is 145 points higher than among those who indicate the converse. Additionally, when advisors discuss and effectively incorporate risk tolerance as part of their reviews with investors, there is a significant 109-point lift in overall satisfaction. Investors want more than just strong investment performance; they want to understand the reasons behind this performance.

    Firms with higher satisfaction scores ensure that investors feel involved in—and to an extent responsible for—their investment performance. Stronger relationships between advisors and investors allow these firms to positively influence investor perceptions of success.

    Communicating Costs and Fees Is Key to Satisfaction

    Clear communication regarding the reasons for investment performance and an explanation of the firm’s cost and fee structure are among the most important facets in overall investor satisfaction. Despite an overall increase in satisfaction with investment firms, the study finds that fewer advisors are talking to their investors about fees—57 percent of investors indicate that their advisor explained their fee structure, down from 63 percent in 2012. Investor satisfaction improves an average of 99 points when advisors discuss their firm’s fee structure.

    “Taking the time to explain the fees that firms charge helps ensure investors fully understand the value proposition of working with an advisor—they see what costs are associated with the relationship and the benefits they are getting for the fees that are charged,” said Martin. “Being transparent about fees is an essential part of a healthy relationship and is something that all advisors should be talking about with their investors.”

    An investor’s experience is closely linked to the bottom line of their firm, as that experience impacts loyalty, advocacy and share of wallet. While 72 percent of highly satisfied investors (satisfaction scores of 900 and above) say they “definitely will” recommend their firm to others, only 29 percent of investors with medium satisfaction (scores between 700 and 899) and 4 percent of investors who have low satisfaction (scores below 700) say the same. Additionally, 27 percent of highly satisfied investors say they will increase the amount invested with their primary firm during the next 12 months, compared with only 17 percent of investors with low satisfaction.

    “Word of mouth recommendations are essential in the investment industry, as that is the means by which advisors acquire the majority of their investors,” said Lubo Li, senior director of the financial services practice at JD Power, Toronto. “Satisfied investors not only are more likely to recommend their investment firm or advisor to family and friends, but are also more likely to increase their investments with their firm. Firms that deliver the best experience are likely to reap the financial benefits of increased investor retention and improve their chances at attracting new investors.”

    Drive Higher Perceptions of Performance

    A high level of communication alone is not enough to improve investor satisfaction. Advisors who achieve above-average investment performance satisfaction and who have a strong relationship with their investors share the following traits:

    • They develop and/or review a financial plan that effectively incorporates risk and ensure this plan is in a tangible form that can be easily understood by the investor.
    • They clearly communicate the reasons for investment performance and the firm’s fee structure so investors fully understand the value provided for the fees paid.
    • They strive for an equal partnership with investors and make them feel involved in decisions impacting the performance of their investments.
    • They define the appropriate level and method of contact to meet the expectations of their investors.

    Investment Firm Rankings

    Edward Jones ranks highest in investor satisfaction among full service investment firms in Canada, with a score of 773. Edward Jones performs particularly well in four factors: investment advisor; investment performance; account information; and account offerings. Following in the rankings are DundeeWealth (760) and Raymond James Ltd. (758).

    The 2013 Canadian Full Service Investor Satisfaction Study is based on responses from 5,592 investors who use advice-based investment services with financial institutions in Canada. 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) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.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]
    John Tews; JD Power; 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. Credit Card Satisfaction Study

    Credit Card Customers Frequently Lack Understanding of the Terms, Benefits and Rewards Associated with Their Cards

    2013-08-22

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    WESTLAKE VILLAGE, Calif.: 22 August 2013 — Although credit card satisfaction continues to improve, a large percentage of customers indicate they do not fully understand their card’s terms, benefits and rewards program, according to the JD Power 2013 U.S. Credit Card Satisfaction StudySM released today. 

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

    The study finds that customer awareness of earning and redeeming rewards with their credit card has declined year over year, with 59 percent of customers saying they “completely” understand how to earn rewards in 2013, compared with 66 percent in 2012. Furthermore, 33 percent of customers indicate they are unaware of the benefits associated with their card.  

    “Customers who use their card’s benefits spend an average of $400 more per month on their card, compared with those who are aware of benefits but do not use them, so clearly this is an area of importance to card issuers,” said Jim Miller, senior director of banking services at JD Power. “While most customers change cards for a better rewards program, they often don’t fully understand the rewards offered with their current card. There is a clear opportunity for issuers to better communicate rewards programs and benefits to not only keep customers loyal, but also to attract new customers.”  

    Fewer than one-half (47%) of credit card customers say they “completely” understand their credit card terms. Among these customers, 73 percent indicate a lack of clarity regarding interest rates, and 31 percent lack an understanding of late payment fees.  

    Despite low customer understanding of card benefits and terms, credit card satisfaction has improved for a fourth consecutive year. Overall satisfaction averages 767 on a 1,000-point scale, which is a 14-point improvement from 2012. The study also finds a lower incidence of interest rate increases, compared with 2012 (5% vs. 6%, respectively). 

    “The fact that the economy is improving and consumers generally feel better about their personal financial situations is certainly helping to improve satisfaction with credit card issuers, especially considering there was such instability in the industry just a few years ago,” said Miller. 

    When surveyed about their financial outlook compared to a year ago, 27 percent of credit card customers indicate they are better off in 2013, up from 23 percent in 2012 and 20 percent in 2011. Conversely, 17 percent indicate they are worse off, down from 23 percent in 2012 and 29 percent in 2011. 

    The study also finds that the percentage of credit card customers indicating they use mobile apps or text alerts to interact with their issuer has increased slightly from 2012 (5% vs. 4%, respectively), driven primarily by increased usage among customers in the Gen X and Gen Y segments. Notably, credit card customers have been significantly slower to adopt mobile technology as an interaction method, compared with retail banking customers1 (5% vs. 19%, respectively). The slower adoption of mobile app technology among credit card customers may be related to a lack of desired functionality currently offered by credit card issuers. Mobile app features that provide the greatest lifts in satisfaction include viewing card benefits and features, redeeming rewards and receiving special promotions/offers. However, these offerings are currently available to less than one-fourth of credit card customers.  

    American Express ranks highest in credit card customer satisfaction for a seventh consecutive year. American Express achieves a score of 816 and performs particularly well in rewards; benefits and services; and billing and payment. Discover follows with a score of 812, performing well in credit card terms; interaction; and problem resolution. Chase ranks third at 783. 

    JD Power offers the following tips to consumers who want to get the most out of their credit card: 

     

    • Understand your card’s benefits. Most credit cards offer at least one benefit, such as travel insurance coverage, purchase protection and fraud protection. Customer satisfaction increases significantly when customers are aware of the benefits that come with their card. Make it a point to find out what benefits your card offers and how to make the most of them. 
    • Choose a card that offers rewards you can use. Most credit cards offer rewards programs in the form of points, which are accumulated by using the card, cash back or rebates. You can benefit the most from a rewards program that gives you discounts or rebates from a retailer or supplier with whom you frequently transact business. However, these cards may also require an annual fee. Make sure the rewards you accumulate justify the fees you incur to carry the card. 
    • Take advantage of services offered online. Familiarize yourself with your card issuer’s website. Not only can you quickly access such basic information as card balances and payment information, but you can also find information about benefits and rewards associated with your card and how to redeem them. Many credit card companies also offer mobile apps that offer special promotions to cardholders.  

    The 2013 Credit Card Satisfaction Study includes responses from more than 14,000 credit card customers and was fielded from May through June 2013.  

    1 JD Power 2013 U.S. Retail Banking Satisfaction Study
     

     

    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 Digital Lifestyle Study

    Popularity of Internet Entertainment Services Creates Customer Retention Challenges for Digital Lifestyle Providers

    2013-08-21

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    WESTLAKE VILLAGE, Calif.: 21 August 2013 — As the popularity of Internet entertainment services grows among consumers, digital lifestyle providers face customer retention challenges and seek to extend bundled service offerings, according to the JD Power 2013 Digital Lifestyle StudySM released today.

    The study, now in its second year, examines consumer brand loyalty, propensity to subscribe to digital lifestyle products and preferences for aggregation of a wide array of services from one provider. Referred to as a digital lifestyle service package, it includes such entertainment components as video, television, audio and gaming; monitoring components, including home security, energy management and healthcare services; communication components, such as voice, Internet and wireless; and such other components as data backup and smart appliances.

    Key Findings

    • Consumers most often choose Internet service to include in a bundle, followed by voice and video, respectively.

    • Consumers intend to bundle voice services, despite available alternatives.

    • Consumers are receptive to home healthcare services.

    • Younger consumers are most likely to share personal information, but expect free services in return.

    The study segments consumers into five groups, based on age and other demographic and psychographic characteristics, in order to provide insights into their current and future digital lifestyle bundle preferences. Those segments are low-tech empty-nesters—mature households who use technology that has minimal impact on their daily lives; the family that techs together—teen and kid-focused technology purchase behaviors; generation wireless—youngest household profile, with high investment and engagement in technology; offline seniors—elderly households with little technology interaction or concern; and emerging traditionalists—nuclear family household profile, with average technology investment.

    Nearly two-thirds (61%) of consumers consider Internet service as the foundation of their future digital lifestyle bundle. It is the most-frequently chosen service in consumers’ present and future digital lifestyle bundles, indicating that consumers understand the necessity of having fast, reliable broadband for entertainment, home automation and other services. While 70 percent of consumers in the offline seniors segment include Internet in their ideal bundle, only 54 percent of those in the generation wireless segment indicate the same. Younger consumers have a high propensity to be connected to the Internet and may rely more heavily on mobile broadband and publicly available networks.

    “As the cost of subscription-based television increases and the speed and reliability of mobile broadband attracts a younger generation, consumers are more selective when choosing an entertainment and communications service provider,” said Kirk Parsons, senior director of the telecommunications practice at JD Power. “Customer retention and acquisition are critical issues faced by telecom providers. To remain competitive, they are now offering bundled Internet-based services, such as home security, in order to provide additional value to a wide variety of consumer segments.”

    Opportunities for Revenue in Bundling Video Services

    Forty percent of consumers select video service as part of their ideal future bundle, making it the third-most-frequently chosen option, following both Internet and voice service. The study indicates that consumers are more willing to search and invest in video entertainment online rather than via traditional TV service. Sixty-six percent of all consumers surveyed for the study–and 92 percent of those younger than 25 years old–regularly use an Internet video service, such as Netflix, Redbox or Amazon, in addition to television service. Further, consumers who use video services are not necessarily replacing traditional TV viewing, as they are significantly more likely to purchase video on demand from their cable or satellite provider than consumers who do not use video services.

    “While digital lifestyle providers leverage video services to attract consumers, there are opportunities for new service providers to deliver a two- or even three-screen experience,” said Parsons. “Eleven percent of tablet users indicate they view extended or additional programming and content online while they’re viewing television.”

    Telecom Providers Positioned to Benefit from Future Bundle Adoption

    Telecom providers are well-positioned to meet future consumer demands for aggregated digital lifestyle offerings. Nearly three-fourths (74%) of preferred future bundles in the United States and 78 percent in Canada include such non-traditional elements as home automation, energy management and home health monitoring. Home security appeals to younger consumers regardless of whether they own or rent their residence. In addition, they like the high-quality service offered by home security providers compared with do-it-yourself home automation solutions.

    When future bundles are considered telecom providers are the preferred provider by 65 percent of U.S. consumers; 13 percent prefer security providers; and 7 percent prefer energy providers, while 16 percent prefer such other providers as technology giants (e.g., Google and Microsoft) and device manufacturers (e.g., Sony). However, generation wireless households have notably different preferences from the study average, with 57 percent preferring telecom providers and 21 percent preferring technology firms or device manufacturers.

    Incentives Reduce Privacy Concerns

    Younger consumers (those between 18 and 25 years old) are willing to share their browsing and GPS location information in exchange for free services and special offers. More than one-half (55%) of young digital lifestyle consumers are likely to share their online browsing history for free services and 43 percent are likely to share this information for special offers. Thirty-seven percent of consumers are likely to share their GPS data in order to use location-based services. Only one-fifth (21%) say they are “very concerned” with their current service provider having access to their online browsing activity, compared with 27 percent who say they are “not very concerned” and 9 percent who are “not at all concerned.”

    The 2013 Digital Lifestyle Study is based on 12,827 responses from members of Web-based panels in the United States and Canada that are comprised of a representative sample of consumers who are responsible for making their household decisions regarding home telecommunications, entertainment, security, and energy services. The study was fielded in 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) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. 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 Wireless Purchase Experience Full-Service Study—Volume 2 and the 2013 Wireless Purchase Experience Non-Contract Study—Volume 2

    Overall Satisfaction with the Wireless Purchase Experience Rises as More Subscribers Perceive Value of Devices and Online Purchasing Experience Improves

    2013-08-15

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    WESTLAKE VILLAGE, Calif: 15 August 2013 — Improvements in the perceived value for price paid for devices and exceeding customer expectations contribute to an increase in customer satisfaction among wireless customers who completed a sales transaction via websites, according to the JD Power 2013 Wireless Purchase Experience Full-Service StudySM—Volume 2 and the 2013 Wireless Purchase Experience Non-Contract StudySM—Volume 2, both released today.

    Key Findings

    • Satisfaction is higher among customers who shop on big-box store websites (798), compared with those who shop on general store websites (784) and carrier websites (782).
    • Satisfaction is higher among customers with a 4G device than among those with a non-4G device (806 vs. 778, respectively).
    • Satisfaction among retail customers with a 4G device is 854 when the technology is explained to them vs. 734 when no explanation is provided.
    • On average, customers with a 4G device spend $11 more per month than do those with a non-4G device.

    Now in their 10th year, the semiannual studies evaluate the wireless purchase experience of customers using any one of three contact channels: phone calls with sales representatives; visits to a retail wireless store; or online. Overall customer satisfaction with both full-service and non-contract branded carriers is based on six factors (in order of importance): store sales representative; website; phone sales representative; store facility; offerings and promotions; and cost of service.

    Overall satisfaction among full-service customers who indicate having had a sales transaction with their carrier is 795 (on a 1,000-point scale)–a 31-point increase from the last reporting period in February 2013. Satisfaction also increases among non-contract customers (789)—up 34 points in just six months—the highest since 2012.

    Satisfaction increases in all six factors among the full-service segment, with cost of service improving 47 points from the last reporting period. This improvement is due in part to the value or “fairness” customers perceive when purchasing a cell phone as more technically advanced 4G devices are launched coupled with the very aggressive price structures and promotions offered to encourage customers to upgrade. Satisfaction with cost of service also increases in the non-contract segment. Sales transactions via the online channel have also contributed to the overall increase in purchase experience satisfaction. Timeliness of completing the transaction and ease of placing orders or making changes to current service plans are the primary reasons for the increase.

    “There’s a direct correlation between an efficient sales transaction process and improving satisfaction with the overall purchase experience,” said Kirk Parsons, senior director of the Telecom services practice at JD Power. “The increased levels of satisfaction with website are partially due to the efficiency and immediacy of the experience driven by increasingly innovative online chat functions. Additionally, carriers have invested heavily in promoting and marketing the latest 4G devices to keep current customers loyal and encourage spending on more advanced services.”

    Study Rankings

    For the first-time since the study’s inception, AT&T ranks highest in overall customer purchase experience satisfaction among Tier 1 full-service wireless carriers. AT&T achieves a score of 798 and performs particularly well in the store sales representative and store facility factors. Verizon Wireless (794) and Sprint (793) follow very closely in the rankings.

    For a second consecutive reporting period, Boost Mobile ranks highest in overall customer purchase experience satisfaction among non-contract service carriers. The carrier achieves a score of 804 and performs particularly well in the store sales representative; store facility; offerings and promotions; and website factors. MetroPCS (803), TracFone (800) and Virgin Mobile (789) follow in the rankings.

    The 2013 Wireless Full-Service Purchase Experience Study–Volume 2 is based on responses from 8,693 wireless customers. The 2013 Wireless Non-Contract Purchase Experience Study–Volume 2 is based on responses from 5,294 wireless customers. The study was fielded from January 2013 through 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) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. 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 Seat Quality and Satisfaction Study

    Manual Lumbar Support on an Otherwise Power Seat Pains New-Vehicle Owners

    2013-08-15

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    WESTLAKE VILLAGE, Calif: 15 August 2013 — While seat suppliers and automakers try to save costs and reduce weight by having manually adjustable lumbar support in otherwise powered seats, owners of new vehicles equipped with those power/manual seats are not pleased, according to the JD Power 2013 Seat Quality and Satisfaction StudySM released today.
    While fewer than five percent of new-vehicles are equipped with power seats with manually adjustable lumbar support, owners of those vehicles report more problems with the lumbar support adjustment—1.9 problems per 100 vehicles (PP100), on average—than do owners of vehicles equipped with all seat controls being power including lumbar adjustments (0.4 PP100). Satisfaction among owners of vehicles equipped with these seats is also lower—average overall satisfaction is 8.2 (on a 10-point scale), compared with 8.4 for owners of fully powered seats.
    Even owners with seats with all manual controls report a lower average of lumbar adjustment problems (1.1 PP100); however, overall satisfaction is lowest among these owners (7.9).
    “Including powered lumbar support controls adds costs to the seat and weight to the overall vehicle, which is why some automakers are opting for manually adjustable lumbar support,” said Mike VanNieuwkuyk, executive director of global automotive at JD Power.
    VanNieuwkuyk notes that while many drivers set their lumbar support to their desired adjustment and rarely touch it again, part of owners’ dissatisfaction lies in the expectation that a powered seat—one which adjusts forward and backward, up and down, and reclines with the press of a button or lever—also has powered lumbar adjustment. Nearly one-half of all new vehicles are equipped with fully powered seats.
    “Customer expectations, especially among premium vehicle owners, are that all adjustments on a ‘power seat’ will be powered, not manual,” said VanNieuwkuyk. “Having manual lumbar controls when other seat controls are powered increases the likelihood that consumers will cite this as a problem and satisfaction decreases. It’s also highly possible that many owners may not realize their power seat has manually adjustable lumbar support until after they purchase the vehicle, which only exacerbates their displeasure.”

    Seat Height and Headrest Adjustments Come Up Short for Some Owners

    The study finds that seat height and headrest adjustments are also important seat features for vehicle owners, especially those who are shorter than average. Shorter owners (under 5 feet 5 inches tall) experience nearly twice as many problems with their seat height adjustment than their taller counterparts (1.2 PP100 vs. 0.7 PP100, respectively), with a third of these shorter owners indicating the seat does not adjust high enough. Overall satisfaction with their driver seat among owners who indicate a problem with their seat height adjustment is significantly lower than among those who do not have seat height adjustment problem.
    Shorter owners also report more problems with headrest adjustments than do taller owners (1.6 PP100 vs. 1.0 PP100, respectively).
    Seat height and headrest adjustments not only impact driver comfort, but also are a potential safety issue.Owners who indicate problems with seat height or headrest adjustment are also less satisfied with visibility, particularly visibility out the rear of the vehicle.
    “It’s a challenge for suppliers to make a seat that fits all owners,” said VanNieuwkuyk. “Automakers will often integrate other movable features into their vehicles, such as adjustable pedals and tilt-and-telescoping steering column, to enable owners to adjust the seat to their comfort without compromising safety or visibility.”

    Seat Supplier Quality Rankings

    Among seat suppliers, Johnson Controls and Toyota Boshoku each garner two segment awards for seat quality. Johnson Controls ranks highest in the Mass Market Midsize/Large CUV segment (for its seats in the Toyota Venza) as well as in the Mass Market Truck/Van segment (Ford F-250 and F-350 Super Duty), while Toyota Boshoku ranks highest in seat quality in the Luxury Car segment (Lexus LS) and the Mass Market Midsize/Large Car segment (Toyota Camry assembled at the Lafayette B, IN, plant).
    Lear Corporation ranks highest in the Luxury CUV segment (Audi allroad), Magna ranks highest in the Mass Market Compact CUV/MPV segment (Chevrolet Equinox) and Toyo Seat ranks highest in the Mass Market Compact Car segment (Mazda MX-5 Miata).
    The 2013 Seat Quality and Satisfaction Study provides automotive manufacturers and suppliers with quality and satisfaction information related to automotive seating systems. New-vehicle owners are asked to rate the quality of their vehicle seats and seat belts based on whether or not they experienced defects/malfunctions or design problems during the first 90 days of ownership. The study is based on responses from more than 83,400 owners of new 2013 model-year cars and light trucks. The study was fielded between February 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) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. 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 Texas Residential Retail Electric Provider Customer Satisfaction Study

    Customers of Texas Retail Electric Providers Are More Satisfied Than Customers of Regulated Utilities, Driven Primarily by Price

    2013-08-14

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    WESTLAKE VILLAGE, Calif.: 14 August 2013 — Price is the primary reason that satisfaction is higher among customers who use a Texas retail electric provider than among those who use a regulated utility, according to the JD Power 2013 Texas Residential Retail Electric Provider Customer Satisfaction StudySM released today.

    The study, now in its sixth year, measures customer satisfaction with retail electric service providers in Texas by examining six key factors (listed in order of importance): price; billing and payment; corporate citizenship; communications; enrollment/renewal; and customer service.

    Key Findings

    • Customer satisfaction with price increases 20 points to 684 from 2012.
    • Price satisfaction is highest among customers whose residential electric provider makes them aware of energy-savings measures available.
    • Corporate citizenship and enrollment/renewal, two new factors in the 2013 study, premiere as important influencers of customer satisfaction.

    Overall satisfaction among customers of retail residential electric providers (REPs) in Texas is 682 (on a 1,000-point scale), an increase of 4 points from 2012. This is the highest score since the study was first published in 2008.

    Customer satisfaction with price, a primary driver of satisfaction in the study, increases 20 points to 684 from 2012. The average perceived price per kilowatt hour (kWh) has declined to 10.4 cents in 2013 from 10.7 cents in 2012. Texas electric retail providers outperform regulated utilities in Texas by 114 points in the price factor (684 vs. 570, respectively).

    “Deregulation of the residential electric market in Texas opened the doors to healthy price competition and also focused residential customers on finding the cost savings and service programs that match their needs,” said Chris Oberle, senior director of the energy practice at JD Power. “Satisfaction isn’t just about price. Retail electric providers must stay connected to their customers with clear, frequent and effective communications and quality customer touch points, including billing and payment, customer service, corporate citizenship, enrollment and beyond, to achieve a premier provider position.”

    Satisfaction with the effectiveness of communications has risen to a high of 638 in 2013 from 2008. The frequency and recall of communications by electric retailers play an increasingly important role in customer satisfaction. Satisfaction is 717 among customers who recall communications from their retail electric provider (33%), compared with 666 among those who do not recall a communication (67%)—a dramatic difference of 51 points. The most frequently recalled methods of communicating are email (36%); direct mail (30%); and bill insert (20%).

    Corporate citizenship and enrollment/renewal, two new factors in the 2013 study, debut as important drivers of customer satisfaction. Overall awareness of Texas REP corporate citizenship is low; however, customer satisfaction increases significantly when customers are aware of corporate citizenship efforts. For example, corporate citizenship satisfaction is 762 when customers are aware of their REP’s impact on the environment, compared with 658 when they are not aware. The same general trend is observed when customers are aware vs. unaware of their REP’s local donations and sponsorship (738 vs. 672, respectively) and volunteering/working in the community (763 vs. 670, respectively).

    Satisfaction is highest in the enrollment/renewal factor (777). When customers are satisfied with their REP, they are more loyal to the brand, more likely to renew and more likely to recommend the REP to family and friends. Nearly two-thirds (60%) of new customers who enrolled for service within the past 12 months had service with another retail electricity provider. The main reason customers cite for selecting their provider is a lower price (61%).

     

    Texas Residential Retail Electric Provider Customer Satisfaction Study Results

    Champion Energy Services ranks highest among retail electric utility providers in Texas for a fourth consecutive year, with a score of 764. Champion Energy Services performs particularly well in price; billing and payment; enrollment/renewal; customer service; and communications. Following in the rankings are Green Mountain Energy (737) and Bounce Energy (736).

    The 2013 Texas Residential Retail Electric Provider Customer Satisfaction Study is based on responses from 7,708 residential customers of electric retailers in Texas. The study was fielded between September 2012 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) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. 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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  • Vehicle Ownership Satisfaction Study (VOSS) Brasil 2013

    Toyota Ranks Highest in Vehicle Ownership Satisfaction for Third Straight Year; Volkswagen Receives Two Model-Level Awards; Fiat, Renault, Toyota Each Receive One

    2013-08-07

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    SÃO PAULO: 7 August 2013 — For a third consecutive year, the Toyota nameplate ranks highest in satisfying new-vehicle owners in Brazil, the world’s fourth largest automotive market, while two models from Volkswagen and one each from Fiat, Renault and Toyota receive segment awards, according to the JD Power 2013 Brazil Vehicle Ownership Satisfaction StudySM (VOSS) released today.

    The annual study examines the new-vehicle ownership experience (12 to 36 months after purchase) across four measures of satisfaction. In order of importance, they are: ownership costs-including fuel consumption, insurance and maintenance/repair (42%); service satisfaction (23%); vehicle appeal-including performance, design, comfort and features (19%); and vehicle quality/reliability (16%).

    In the 2013 study, overall vehicle owner satisfaction averages 733 (on a 1,000-point scale). Among all countries in which JD Power publishes this study, owners in Brazil place the most importance on the cost of owning a vehicle. In part, this is due to spending a larger percentage of their income on vehicle service and repairs, fuel, taxes and insurance. As a result, ownership costs satisfaction is lowest among the four measures.

    Toyota Earns Highest Scores in Each of 2013 Brazil VOSS Measures

    Toyota ranks highest among the nameplates included in the study, with a score of 816, performing particularly well in each of the four study measures. Moreover, the Toyota Corolla achieves the highest score in the midsize segment (814) and also earns the highest score among all models ranked.

    Toyota is followed by Honda (778), which performs exceptionally well in three of the four measures: vehicle quality/reliability; service satisfaction; and ownership costs.

    Rounding out the brands that earn scores above industry average are three additional nameplates from Asia, one from Europe, and one from the United States: Hyundai-CAOA (771); Nissan (770); Kia (768); Citroën (739); and Chevrolet (735), respectively.

    Receiving model-level awards in their segments are the Fiat Palio Fire (subcompact car); the Renault Logan and Volkswagen Voyage in a tie (entry compact car); the Volkswagen Polo (upper compact car); and the Corolla (midsize car).

    High Incidence of Owner-Reported Problems

    While vehicle quality/reliability has the smallest weight among the four measures in the 2013 Brazil VOSS, it remains critically important. Quality is the minimum requirement for purchase consideration in most countries, including Brazil. Furthermore, poor quality may negatively impact the more heavily weighted measures of ownership costs and service satisfaction. The added cost and time spent on service and repair visits to fix low-quality vehicles, along with poor fuel consumption, are among the primary concerns of vehicle owners in Brazil.

    On average, new-vehicle owners report 352 problems per 100 vehicles (PP100)-3.52 problems per vehicle-a much higher number than in other countries where JD Power evaluates vehicle ownership satisfaction, including Canada (230 PP100); Germany (230 PP100); and the UK (204 PP100).

    Within Brazil, domestically produced vehicles have a higher number of problems (356 PP100) than do vehicles imported from other markets such as Mexico (310 PP100); South Korea (314 PP100); and Argentina (333 PP100). “Unfortunately, a higher incidence of owner-reported quality problems reinforces the perception that vehicles produced in Brazil are of lower quality,” said Jon Sederstrom, director and country manager, JD Power do Brasil.

    Brazil’s new-vehicle owners most frequently identify quality problems in the engine/transmission area, which is among the most complex of all vehicle systems. Engine/Transmission problems-including excessive fuel consumption; abnormal engine noises; engine hesitation; and engine starting problems-are cited as among the most severe (i.e. dissatisfying) by owners.

    “Although Brazil is among the world leaders in oil and ethanol production, the cost of fuel for consumers is higher than in many other countries with substantial fuel reserves. As a result, fuel consumption is of particular concern among vehicle owners in Brazil,” said Sederstrom.

    The 2013 Brazil Vehicle Ownership Satisfaction Study is based on the evaluations of 8,387 online interviews with new-vehicle owners in Brazil after 12 to 36 months of ownership. Overall ownership satisfaction is reported as an index score based on a 1,000-point scale, with a higher score indicating higher satisfaction. The study was fielded in April, May and June 2013. The 2013 Brazil VOSS includes 73 vehicle models. This is nearly twice the number of models that were included in the inaugural Brazil VOSS in 2011.

     

    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) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    Adriana Solinas; Gaspar & Associados; São Paulo, Brazil; (11) 3037-3221; [email protected]
    Mariana Zaia; Gaspar & Associados; São Paulo, Brazil; (11) 3037-3214;[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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