Research Report: Chevrolet Ranks Highest in Inaugural South Africa Sales Satisfaction Index Study

LONDON, November 22 -- General Motors' re-invigorated Chevrolet brand ranks highest in satisfying new-vehicle buyers with the purchase experience, according to the J.D. Power and Associates 2005 South Africa Sales Satisfaction Index (SSI) Study(SM) released today.

The inaugural study is a comprehensive measurement of the new-vehicle sales and delivery process, and includes 32 attributes grouped into the following five factors of satisfaction (the importance of each factor is shown as a percentage):

    
    - Delivery process (27%)
    - Salesperson (23%)
    - Negotiated price (18%)
    - Paperwork/finance process (17%)
    - Dealership facility (15%)

The importance weights are developed based on consumer survey responses, thus reflecting what is most important to South Africa's new-vehicle buyers. SSI performance is reported as an index score based on a 1000 point scale. A higher SSI score indicates a more satisfying purchase experience.

With an overall SSI score of 861, Chevrolet tops the sales satisfaction rankings, performing 16 index points higher than second-ranked Mercedes-Benz. Rounding out the top five brands are Mitsubishi, Toyota and Honda, respectively.

Chevrolet sets the industry benchmark in three of the five factor areas: salesperson, paperwork/finance process and the negotiated price. Mitsubishi and Peugeot, on the other hand, lead the industry in dealership facilities, while Mercedes-Benz outperforms other nameplates in the new-vehicle delivery process.

"Our research around the world has shown that customers who are satisfied with the sales process are more likely to bring their new vehicle to the dealership service department for regular maintenance and repairs," said Brian Walters, senior director of automotive research at J.D. Power and Associates. "The sales experience also plays an important role in influencing positive word of mouth from customers for both the dealership and the vehicle brand."

Among the five components of the index, dealership facility is the lowest-rated measure by consumers in South Africa. Contributing to the low scores for the dealership facility are poor ratings for the size of the new-vehicle inventory. Other low-rated areas of the dealership facility are the comfort of area or office where the vehicle's price is negotiated and convenience of the dealership location and opening hours.

"The unprecedented boom in new-vehicle sales in South Africa often leads to frustration among customers regarding low inventory levels at dealerships," said Walters. "While improvements in dealership facilities often require significant investments, there are numerous process-related improvements that could be implemented that are considerably less expensive, yet will lead to greater sales satisfaction. These include improvements in the negotiation of the vehicle's price, explanation of paperwork/documentation and explanation of the owner's manual. Also, special delivery activities such as setting up the customer's first scheduled service appointment and showing the customer how to check the engine oil level and preset the radio's memory, can yield greater satisfaction."

J.D. Power and Associates is recognised across the globe as the leading independent authority on customer satisfaction in the automotive industry. The firm's primary role is to help automotive manufacturers further improve their product quality and service levels through a better understanding of consumer behaviour and preferences. J.D. Power and Associates also provides top-line results of its studies to consumers for use as a reference point when purchasing a new vehicle.

The South Africa SSI Study is conducted independently by J.D. Power and Associates to establish a benchmark of satisfaction with the new-vehicle purchase experience in the South Africa market. The survey was carried out in cooperation with the Department of Transport (DOT), which facilitated the distribution of questionnaires. The study includes data on virtually every manufacturer selling new vehicles in South Africa, including Citroen, Hyundai, Kia, Subaru and Tata and is based on responses from 9573 new-vehicle owners who purchased their vehicles between December 2004 and April 2005.

About J.D. Power and Associates

The European headquarters of J.D. Power and Associates is located in Guildford, UK. With world headquarters in Westlake Village, California, U.S.A., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. 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 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 and BusinessWeek. The Corporation has more than 300 offices in 40 countries. Sales in 2004 were US$5.3 billion. Additional information is available at http://www.mcgraw-hill.com.