J.D. Power and Associates Reports: BMW Ranks Highest in Inaugural South Africa Automotive Performance, Execution and Layout (APEAL) Study
LONDON, November 23 -- BMW vehicles are the most appealing in South Africa, according to the J.D. Power and Associates 2004 South Africa Automotive Performance, Execution and Layout (APEAL) Study(SM) released today.
The inaugural study is a customer-driven measure of "things gone right," which measures customer perceptions on the design, content, layout and performance of their new vehicles during the first three to seven months of ownership. The study evaluates new vehicles across eight categories: engine and transmission; cockpit and instrument panel; ride, handling and braking; heating, ventilation and cooling (HVAC); comfort and convenience; sound system; seats; and vehicle styling/exterior.
"Our APEAL research in other markets has shown that more appealing models tend to sell more quickly and at higher dealer margins than less appealing models," said Brian Walters, senior director of automotive research at J.D. Power and Associates. "In addition, given the connection to vehicle demand, more appealing models also tend to retain their value better over time than less appealing models."
The study finds that particularly among passenger cars, European-branded models tend to be the most appealing to new-vehicle owners in South Africa. BMW places highest in the overall nameplate rankings, followed by Mercedes-Benz, Audi, Honda and Volvo, respectively. Other above average brands are Renault, Citroen, Volkswagen, Peugeot and Hyundai.
"While all-new models or recently redesigned models tend to perform best in APEAL, the Volkswagen Citi Golf, which ranks highest in the compact car segment, indicates that with periodic freshening, older designs can maintain their appeal over time," said Walters.
The Honda Jazz ranks highest in the lower small car segment and is also the top-performing lower small car in J.D. Power and Associates 2004 South Africa Initial Quality Study(SM) (IQS) released in early November. The IQS, a complementary study to the APEAL Study, is a customer-driven measure of vehicle problems experienced during the first three to seven months of ownership.
Two recent redesigns, the Audi A3 and the Renault Megane, rank highest in a tie in the upper small car segment. The Audi A3 performs particularly well in the engine/transmission; cockpit/instrument panel; HVAC; and sound system categories, while the Megane's strengths are in ride, handling and braking; comfort/convenience; seats; and styling/exterior.
In the medium car segment, the BMW 3 Series and Mercedes-Benz C-Class rank highest in a tie. The BMW 3 Series out performs the Mercedes-Benz C-Class in five of the eight categories, while the C-Class leads in comfort/convenience; sound system; and styling/exterior. The 3 Series also leads the medium car segment in initial quality.
Among the most appealing bakkies are the Opel Corsa Utility (half-ton bakkie) and the Ford Ranger (one-ton bakkie).
J.D. Power and Associates conducts an APEAL Study in nine other markets including China, France, Germany, India, Japan, Taiwan, Thailand, the United Kingdom and the United States. BMW, Mercedes-Benz, Audi and Volvo are also among the most appealing nameplates in the 2004 U.S. APEAL Study. Although performing below the industry average in South Africa, Mazda, Mitsubishi, Nissan and Toyota perform at or above the industry average in the United States. Much of the difference in the APEAL performance of these nameplates is due to a very different mix of models sold in the United States versus South Africa.
The eight APEAL categories are comprised of more than 100 different attributes, each of which carries a certain weight in the overall APEAL score, depending upon its correlation with overall vehicle satisfaction. The weights are developed for specific vehicle segments based on consumer survey responses, thus reflecting what is most important to South Africa's motorists. Performance is reported as an index score based on a 1,000 point scale. A higher APEAL index score indicates a more appealing vehicle.
The South Africa APEAL Study is conducted independently by J.D. Power and Associates in order to establish a benchmark of vehicle satisfaction in the South Africa market. The survey was carried out in cooperation with the Department of Transport (DOT), which facilitated the distribution of the questionnaires. The APEAL Study includes data on virtually every manufacturer selling new vehicles in South Africa, including exclusively import nameplates such as Audi, Chevrolet, Citroen, Honda, Hyundai, Peugeot and Renault. As a result, both manufacturers and consumers have a comprehensive assessment of vehicle appeal in the South Africa automotive market for the first time.
Using an extensive eight-page mail survey, J.D. Power and Associates collects detailed, accurate information from vehicle owners that is not possible in other types of research methods, such as telephone-based surveys. Information collected includes ratings of more than 100 different aspects of the vehicle as well as detailed data on vehicle problems and the most troublesome problems.
J.D. Power and Associates is recognised across the globe as the leading independent authority on consumer-reported quality and customer satisfaction in the automotive industry. J.D. Power and Associates' primary role is to help automotive manufacturers further improve their product quality and service levels through a better understanding of consumer preferences and buying patterns. J.D. Power and Associates also provides its study results to consumers for use as a reference point when purchasing a new vehicle.
The 2004 South Africa APEAL Study is based on responses from more than 6,700 new-vehicle owners who purchased their vehicle between December 2003 through April 2004.
In December, as part of its ongoing research in the South Africa vehicle market, J.D. Power and Associates, together with CAR magazine, will publish the South Africa Customer Satisfaction Index (CSI) Study -- a comprehensive measurement of ownership satisfaction after 10 to 21 months of ownership covering four major components: vehicle quality/reliability; vehicle appeal; dealership service satisfaction; and cost of ownership.
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