Satisfaction With Vehicle Service Crucial for Customer Retention
15 July 1998
J.D. Power and Associates Reports: Satisfaction With Vehicle Service Crucial for Customer Retention
Lexus Ranks Number One in Customer Satisfaction
AGOURA HILLS, Calif., July 15 -- The J.D. Power and
Associates 1998 Customer Satisfaction Index Study(SM) (CSI) reveals that
individuals who report a very satisfying dealership service experience are
three times as willing to purchase another vehicle from the same manufacturer
as those who had a marginal service experience. However, only about
45 percent of consumers report having an excellent service experience, which
translates into lost service business and lost vehicle sales for many
dealerships. The study shows that almost one-third of services performed on
in-warranty vehicles are handled outside the dealership at aftermarket
providers such as Jiffy Lube and Midas.
Yet, the industry did record overall improvement due to solid performance
by retailers of several makes that succeeded at satisfying and retaining their
customers. For the second consecutive year, Lexus retains the top honor as
the number one nameplate in customer satisfaction. Infiniti placed second
overall, followed by Saturn, Jaguar and Mercury.
"Customers clearly reward good service with loyal patronage regardless if
it is a dealership or an after market service provider," said Joe Ivers,
director of customer service research at J.D. Power and Associates. "With
major improvements in vehicle quality realized and decreasing warranty claims,
dealerships must now focus on providing exceptional routine services such as
oil changes and general maintenance, where customers pay and can choose their
providers."
The following are key factors that help determine customer retention:
-- Use of customer's time: Easily scheduled service appointments and a
reasonable time frame for vehicle service.
-- Helpfulness of service personnel: Customer concerns about vehicle
problems taken seriously.
-- Service quality: No returns due to unsatisfactory service.
Luxury brands in general and European makes in particular experienced the
highest dealership service patronage. These results are partially due to free
maintenance programs offered by several luxury brands during the warranty
period. Eight European brands are among the top 10 nameplates in total dealer
visits.
This is the first time that Mercury customers placed the nameplate within
the top five in customer satisfaction, reflecting substantial improvement from
previous levels of performance. This result is primarily due to high vehicle
quality in the Mountaineer, Sable and other models.
CSI allows manufacturers to monitor satisfaction with dealership service
as well as vehicle quality. Final CSI results represent more than 29,600
consumer responses and reflect the overall light-vehicle retail marketplace.
J.D. Power and Associates is an international firm best known for its
marketing information services in key business sectors including market
research, forecasting and customer satisfaction. The firm's quality and
satisfaction measurements are based on actual customer responses from over one
million consumers annually. Headquartered in Agoura Hills, Calif., the firm
also has U.S. offices in Torrance, Calif.; Michigan; and Connecticut.
International locations include Japan, Korea, United Kingdom, Canada and
Brazil.
J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com. Media e-mail contact: john.pepitone@jdpower.com.
This press release is provided for editorial use only. No advertising or
other promotional use can be made of the information in this release or J.D.
Power and Associates survey results without the express prior written consent
of J.D. Power and Associates.
J.D. Power and Associates
1998 Customer Satisfaction Index Study(SM)
Nameplates Ranking Above Industry Average
Lexus 175
Infiniti 171
Saturn 163
Jaguar 159
Mercury 157
Honda 156
Volvo 156
Acura 155
Mercedes-Benz 155
BMW 154
Toyota 154
Ford 153
Lincoln 152
Audi 149
Land Rover 148
Industry Average 146
Finishing below industry average in alphabetical order are: Buick,
Cadillac, Chevrolet, Chrysler, Dodge, Eagle, Geo, GMC, Hyundai, Isuzu, Jeep,
Kia, Mazda, Mitsubishi, Nissan, Oldsmobile, Plymouth, Pontiac, Porsche, Saab,
Suburu, Suzuki and Volkswagen.
Source: J.D. Power and Associates 1998 Customer Satisfaction Index
Study(SM)
Charts and graphs extracted from this press release must be accompanied by
a statement identifying J.D. Power and Associates as the publisher, and the
J.D. Power and Associates 1998 Customer Satisfaction Index Study(SM) as the
source. No advertising or other promotional use can be made of the
information in the release or J.D. Power and Associates survey results without
the express prior written consent of J.D. Power and Associates.