New Delhi, 28 AUGUST 2009 — Overall customer satisfaction with the new-vehicle sales experience has increased considerably in 2009, with eight of 11 ranked brands demonstrating notable year-over-year improvements, according to the J.D. Power Asia Pacific 2009 India Sales Satisfaction Index (SSI) StudySM released today.
Now in its 10th year, the study examines seven factors that contribute to overall satisfaction with the new- vehicle buyer sales experience: (listed in order of importance): delivery process; delivery timing; salesperson; sales initiation; dealer facility; paperwork; and deal.
Overall sales satisfaction has increased by 26 points from 2008 to an average of 793 on a 1,000-point scale in
2009.
“It is encouraging to note the considerable improvements made by the industry in 2009, especially in the vehicle delivery process, salesperson and paperwork factors,” said Mohit Arora, senior director at J.D. Power Asia Pacific, Singapore. “Having a customer-driven team at the dealership is a key ingredient not only for creating favorable initial impressions about the dealership, but also for driving greater advocacy and loyalty toward the brand.”
Maruti Suzuki ranks highest in overall new-vehicle sales satisfaction in India with a score of 800. Following Maruti Suzuki closely in the rankings are Honda and Toyota, in a tie, with scores of 799 each. Hyundai posts the greatest improvement among brands examined in the study.
The study finds that, among customers who say they are highly satisfied with the sales experience at the dealership (with satisfaction scores averaging above 859), 81 percent state that they “definitely will” return to the same dealership to purchase another vehicle. In contrast, only 37 percent of very dissatisfied customers (with satisfaction scores averaging below 740) say the same. Intention levels to recommend the vehicle brand they own to friends and relatives are similarly high for highly satisfied customers, and correspondingly low among very dissatisfied customers.
The study also finds that the proportion of new-vehicle owners who pay cash for their vehicle has more than doubled during the past five years—from 12 percent in 2004 to 27 percent in 2009. In addition, the proportion of first-time new-vehicle buyers has increased from 27 percent in 2004 to 40 percent in 2009.
“A majority of cash purchases are made for vehicles in the entry compact segment, which is the entry point for most first-time vehicle buyers in India,” said Arora. “Manufacturers and dealers may benefit from tailoring their offerings in this fast-growing segment to this younger, increasingly affluent and value-conscious customer segment.”
The study finds that 18 percent of new-vehicle buyers in 2009 report that their dealership stocks only a small selection of the model they want. In contrast, only 6 percent of customers in 2006 reported this problem.
“It is important for dealerships to actively communicate with customers about the vehicle options they want and stock popular model variants,” said Arora. “Customer delight with the sales experience increases notably if they are able to select the actual vehicle they ultimately purchase from an array of inventory at the dealership, rather than solely from demo models that may not exactly reflect the options and features they want.”
The 2009 India Sales Satisfaction Index Study is based on responses from 5,422 new-vehicle owners who purchased their vehicles between September 2008 and April 2009. The study was fielded from March to June 2009 and includes more than 40 different vehicle models.
About J.D. Power Asia Pacific
J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide performance analytics 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, Thailand and Vietnam. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. 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. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion.
Now in its 10th year, the study examines seven factors that contribute to overall satisfaction with the new- vehicle buyer sales experience: (listed in order of importance): delivery process; delivery timing; salesperson; sales initiation; dealer facility; paperwork; and deal.
Overall sales satisfaction has increased by 26 points from 2008 to an average of 793 on a 1,000-point scale in
2009.
“It is encouraging to note the considerable improvements made by the industry in 2009, especially in the vehicle delivery process, salesperson and paperwork factors,” said Mohit Arora, senior director at J.D. Power Asia Pacific, Singapore. “Having a customer-driven team at the dealership is a key ingredient not only for creating favorable initial impressions about the dealership, but also for driving greater advocacy and loyalty toward the brand.”
Maruti Suzuki ranks highest in overall new-vehicle sales satisfaction in India with a score of 800. Following Maruti Suzuki closely in the rankings are Honda and Toyota, in a tie, with scores of 799 each. Hyundai posts the greatest improvement among brands examined in the study.
The study finds that, among customers who say they are highly satisfied with the sales experience at the dealership (with satisfaction scores averaging above 859), 81 percent state that they “definitely will” return to the same dealership to purchase another vehicle. In contrast, only 37 percent of very dissatisfied customers (with satisfaction scores averaging below 740) say the same. Intention levels to recommend the vehicle brand they own to friends and relatives are similarly high for highly satisfied customers, and correspondingly low among very dissatisfied customers.
The study also finds that the proportion of new-vehicle owners who pay cash for their vehicle has more than doubled during the past five years—from 12 percent in 2004 to 27 percent in 2009. In addition, the proportion of first-time new-vehicle buyers has increased from 27 percent in 2004 to 40 percent in 2009.
“A majority of cash purchases are made for vehicles in the entry compact segment, which is the entry point for most first-time vehicle buyers in India,” said Arora. “Manufacturers and dealers may benefit from tailoring their offerings in this fast-growing segment to this younger, increasingly affluent and value-conscious customer segment.”
The study finds that 18 percent of new-vehicle buyers in 2009 report that their dealership stocks only a small selection of the model they want. In contrast, only 6 percent of customers in 2006 reported this problem.
“It is important for dealerships to actively communicate with customers about the vehicle options they want and stock popular model variants,” said Arora. “Customer delight with the sales experience increases notably if they are able to select the actual vehicle they ultimately purchase from an array of inventory at the dealership, rather than solely from demo models that may not exactly reflect the options and features they want.”
The 2009 India Sales Satisfaction Index Study is based on responses from 5,422 new-vehicle owners who purchased their vehicles between September 2008 and April 2009. The study was fielded from March to June 2009 and includes more than 40 different vehicle models.
About J.D. Power Asia Pacific
J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide performance analytics 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, Thailand and Vietnam. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. 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. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion.
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