Dealerships Not Improving, Says Strategic Vision
12 July 1999
Dealerships Not Improving, Says Strategic Vision
SAN DIEGO, July 12 -- Despite all the buzz about changes in
automotive retailing, new vehicle dealerships are making little headway in
improving buyers sales and service experiences, according to Strategic Vision.
The San-Diego based research firm today released its Dealer Total Quality
Index(TM) that compares a brand's dealers against consumers' ideal.
The 1999 industry average (839), out of a possible 1,000, compares to 838
in 1998 and 837 in 1997. The same brands head each of three categories,
defined by average price per vehicle:
-- Saturn (894), in Brands Under $20,000 (fourth year as leader)
-- Buick (885), in Brands $20,000 - $30,0000 (second year as leader)
-- Lexus (911), in Brands More Than $30,000 (fourth year as leader)
Most improved brand was Land Rover (904), up 42 points over 1998. New
buyers found its sales experience equal to or better than Lexus in many
specific areas. "Much of this is due to the Land Rover Centres," says Daniel
Gorrell, Strategic Vision vice president. "This is one of the more
significant retail concepts of the decade, since it reinforces the brand
values in very positive ways."
Strategic Vision Dealer Total Quality Index
Biggest Changes from 1998
Land Rover 42
Saab 26
Kia 25
Jaguar 19
Mitsubishi 18
Lincoln -10
Volkswagen -12
Honda -18
Suzuki -33
Nissan -33
Others showing good improvement were Saab (870), up 26 points, and Kia
(739), with a 25-point increase. The greatest declines came from Nissan (779)
and Suzuki (750), both down 33 points, and Honda (824), dropping 18 points
from 1998.
By corporation, General Motors (857) remained the leader for the fourth
year. "Besides applying what it learned from Saturn across all its brands,"
says Gorrell, "GM dealers tend to have longer-term, and thus more trusting,
relationships with their buyers."
The most interesting trend was the increase in buyers using the Internet
to search for vehicle information. From 13 percent in 1997 and 26 percent in
1998, that has grown to 35 percent in 1999.
"More informed consumers are changing the negotiation process," says
Gorrell. "Often they know exactly what the dealer paid, which is making the
bargaining process more straightforward. They also feel greater freedom
because Internet information makes them feel more in control of the process.
Interestingly, this improvement in dealer relations is being driven by third
parties."
"Since most buyers hate to negotiation, simplifying that process will
improve security and trust," says Strategic Vision president Dr. Darrel
Edwards, "which are the foundation of a successful dealer relationship. That
is important because it lays the base for customer satisfaction in the whole
ownership experience."
The Dealer Total Quality Index(TM) is based on the responses of 33,760
buyers who purchased new vehicles in October and November of 1998 and had
owned them at least 90 days before they were surveyed. All parts of the sales
and service experiences were measured, along with the specific emotions they
generated. Brands scoring above the industry average were:
Lexus 911 Saab 870
Land Rover 904 Audi 864
Saturn 894 Lincoln 863
Volvo 892 Oldsmobile 862
Cadillac 889 Chrysler 853
Buick 885 Mercury 850
BMW 882 Acura 849
Jaguar 882 Pontiac-GMC 848
Infiniti 881 Chevrolet 845
Mercedes Benz 879 Ford 838
INDUSTRY 837
This is the fourth year Strategic Vision has calculated the Dealer Total
Quality Index(TM). The company studies the whole ownership experience,
including the emotional underpinnings, for automotive manufacturers.
In addition to the dealer index, public releases include the Total Quality
Index(TM) (April), the Problem Impact Measure(TM) (May) the Total Value
Index(TM) (September).
The company, founded in 1986, studies consumer and constituent decision-
making in many areas. Clients include various automotive manufacturers as
well as American Airlines, Procter and Gamble, Coca-Cola and Harley-Davidson,
among others.