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J.D. Power Releases 2010 Sales Satisfaction Index, Lexus ranks 5th

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Old 11-19-10, 07:18 AM   #1
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Default J.D. Power Releases 2010 Sales Satisfaction Index, Lexus ranks 5th

http://businesscenter.jdpower.com/JD...10219-ssis.pdf

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J.D. Power and Associates Reports:
Customer Treatment Trumps Price in Driving Overall Satisfaction with the New-Vehicle Sales Experience


Jaguar Ranks Highest among Luxury Brands in Satisfying Customers with the New-Vehicle Sales Experience For a Third Consecutive Year; MINI Ranks Highest among Mass Market Brands

WESTLAKE VILLAGE, Calif.: 17 November 2010 — The manner in which customers are treated by the dealership is more important to overall new-vehicle buyer satisfaction than the actual transaction price, according to the J.D. Power and Associates 2010 U.S. Sales Satisfaction Index (SSI) StudySM released today.

The study is a comprehensive analysis of the new-vehicle purchase experience. Overall customer satisfaction is measured across four factors: working out the deal (33%); salesperson (25%); delivery process (21%); and dealership facility (20%).

The study finds that more than one-half (52%) of new-vehicle buyers cite dealer treatment as a reason to purchase their new vehicle from a specific dealer. In comparison, 38 percent of buyers cite vehicle price or the deal offered as the reason for selecting their dealer. Furthermore, once the dealer is selected, the ease of coming to an agreement on the final vehicle price has the single-greatest influence on buyer satisfaction, surpassing the importance of fairness of the actual price paid. With the exception of selecting a vehicle, negotiating the deal is the aspect of the new-vehicle buying process that takes the longest time (53 minutes, on average).

“The process of working out the deal is the primary indicator of whether new-vehicle buyers have a satisfactory purchase experience,” said Jon Osborn, director of automotive research at J.D. Power and Associates. “While there are some buyers who enjoy the negotiation process, many find it to be the most unpleasant part of purchasing a new vehicle. It is particularly important for retailers to make this process as efficient and collaborative as possible, given its importance to overall satisfaction.”

For a third consecutive year, Jaguar ranks highest among luxury brands in satisfying buyers with the new-vehicle buying experience. Jaguar performs particularly well in the salesperson and working out the deal factors. Cadillac and Mercedes-Benz follow in the luxury brand segment rankings. These two brands also ranked second and third, respectively, in 2009. Among luxury brands, Lincoln demonstrates the greatest improvement from 2009, moving from sixth rank position to fourth in 2010.

MINI ranks highest among mass market brands, performing particularly well in dealership facility, salesperson and delivery process. Mercury and GMC, respectively, follow MINI in the mass market segment rankings. The mass market brands demonstrating the greatest improvement from 2009 are Hyundai (moving from 16th rank position to seventh in 2010) and Chrysler (moving from 15th rank position to eighth in 2010).

The study also finds that 60 percent of new-vehicle buyers visit more than one dealership during the shopping process. While many dealers are rejected for not having a vehicle that the buyers wanted to purchase, a significant number of buyers (18%) end showroom visits primarily due to poor customer treatment by the dealer’s salespeople. While some new-vehicle buyers complain about dealer sales staff applying too much sales pressure, an equal proportion complain about receiving insufficient attention from salespeople. Other frequently mentioned complaints include dealer staff being discourteous or not being straightforward with the buyer.

“With new-vehicle retail sales remaining soft and manufacturers spending considerable amounts on incentives to get customers into showrooms, the value of prospects coming in to a dealership is extremely high,” said Osborn. “Dealers cannot afford to drive away customers through poor treatment. In addition, most of these rejecters go on to purchase a different brand of vehicle entirely, meaning that both the individual dealer and the automaker lose out.”

The Internet continues to play an increasingly important role in the new-vehicle shopping process, with more than three-fourths of new-vehicle buyers (79%) using the Internet during the shopping process. Twenty-four percent of buyers in 2010 submitted an online request for quote to a dealer, and were, on average, more satisfied with the negotiation process and the price paid. However, perhaps expecting a quicker sales process, these buyers are more likely to express dissatisfaction with the length of the sales process than are buyers who did not submit an online request.

“Dealers need to streamline the new-vehicle buying process for customers who do a lot of research online,” said Osborn. “These buyers tend to be affluent, well-informed and time-sensitive. They generally know the exact vehicle they want and how much they expect to pay for it. Despite often having little familiarity with the dealership they are buying from, they want to get in and out as quickly as possible. Dealers need to balance respect for the customer’s time while still providing what the customer needs.”

The 2010 U.S. Sales Satisfaction Index (SSI) Study is based on responses from 25,244 new-vehicle buyers who purchased or leased their new vehicle in May 2010. The study was fielded between August and October 2010.


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Old 11-19-10, 07:58 AM   #2
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Thanks. I think there should be some credit given to Benz, Lexus, BMW who have far more customers to keep happy compared to Jaguar who has like 78 people to keep happy.
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Old 11-19-10, 08:07 AM   #3
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Thanks. I think there should be some credit given to Benz, Lexus, BMW who have far more customers to keep happy compared to Jaguar who has like 78 people to keep happy.
Keeping 78 hard-to-please, discriminating, We-Want-Our-A**es-Kissed prima-donnas happy, though, may be a more difficult job than dealing with half a million typical car-buyers. With the Acura people, for example, if those parrot-beak grilles and the TL/ZDX styling don't turn buyers off, nothing will.
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Old 11-19-10, 08:16 AM   #4
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Keeping 78 hard-to-please, discriminating, We-Want-Our-A**es-Kissed prima-donnas happy, though, may be a more difficult job than dealing with half a million typical car-buyers. With the Acura people, for example, if those parrot-beak grilles and the TL/ZDX styling don't turn buyers off, nothing will.
I don't think Jaguar buyers are any more or less prissy than Lexus ones. In fact, many Lexus owners tend to feel a sense of entitlement about their purchase and ownership experience IMO, based largely on the company's history.

"I want my cappucino, I want my croissant, I want a biscuit for my Yorkie, and I want a loaner car so I can go shopping while you prep my new car for delivery!!!!"

That said, I do agree with Mike/1Sick. There is a disparity between being able to service customers at a full line brand and one that sells 2 XKs, 18 XFs, and 11 XJs a month.
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Old 11-19-10, 08:41 AM   #5
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I don't think Jaguar buyers are any more or less prissy than Lexus ones. In fact, many Lexus owners tend to feel a sense of entitlement about their purchase and ownership experience IMO, based largely on the company's history.

"I want my cappucino, I want my croissant, I want a biscuit for my Yorkie, and I want a loaner car so I can go shopping while you prep my new car for delivery!!!!"

That said, I do agree with Mike/1Sick. There is a disparity between being able to service customers at a full line brand and one that sells 2 XKs, 18 XFs, and 11 XJs a month.
l
lol

Yeah and I am not taking anything away from Jag, their service and sales practices have really been high ranking for some years now and kudos to them. I have always been a fan of the brand.

That said I would like to see this broke down even more. I would assume maybe brands that sell cars like the LS, S, 7, XJ might have a customer that demands MORE satisfaction since they paid more compared to some of these Tier 2 brands. Even going past those cars, how do they keep SLS and (future) LFA customers happy? So for these brands to score well is pretty amazing.

Contrarily the cheaper brands here finished under average (outside Audi) when buying a new vehicle.
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Old 11-19-10, 08:42 AM   #6
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I don't think Jaguar buyers are any more or less prissy than Lexus ones. In fact, many Lexus owners tend to feel a sense of entitlement about their purchase and ownership experience IMO, based largely on the company's history.

"I want my cappucino, I want my croissant, I want a biscuit for my Yorkie, and I want a loaner car so I can go shopping while you prep my new car for delivery!!!!"
That may be the case in your area....where Lexus buyers may (?) be a class by themselves. In my area, though, (D.C. suburbs) there is so much money (this is traditionally a recession-resistant area) and so many cars sold, that many of the typical Lexus buyers around here are more or less the same people buying Fords, Chevies, Toyotas, and Hondas...buying a new Lexus doesn't have as much panache as it would, say, in a place like West Virginia or Arkansas. When I bought my new Lexus IS300, for example, I was coming off a 6-year-old Toyota Celica. Jag owners, here, though, do seem to be more or less in a class by themselves.....and clearly different from many of the local D.C.-area Lexus buyers. I also notice that, to an extent, with Mercedes buyers.
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Old 11-19-10, 08:54 AM   #7
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^^^ In the past wasn't Jaguar perceived as a higher level brand than BMW and Benz? Today that is not the case but looking at their very small lineup they only offer V-8s and Supercharged V-8s and cars $50,000 or more.

Very small niche.
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Old 11-19-10, 09:03 AM   #8
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Originally Posted by 1SICKLEX View Post
^^^ In the past wasn't Jaguar perceived as a higher level brand than BMW and Benz? Today that is not the case but looking at their very small lineup they only offer V-8s and Supercharged V-8s and cars $50,000 or more.

Very small niche.
Good post and its funny how far some companies can fall. At a time they were such a high level brand beyond those you listed, and the next thing you know you can lease an x-type for $249 a month………
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Old 11-19-10, 09:51 AM   #9
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Originally Posted by 1SICKLEX View Post
^^^ In the past wasn't Jaguar perceived as a higher level brand than BMW and Benz? Today that is not the case but looking at their very small lineup they only offer V-8s and Supercharged V-8s and cars $50,000 or more.

Very small niche.
I think alot of this has to do with the X-Type ruining their brand equity, along with a few years of awful marketing.

To me x-Type = Cimmaron
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Old 11-19-10, 09:55 AM   #10
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I'm sure part of the sales exp. were where the salesperson judged you if you look like you can afford their car

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"I want my cappucino, I want my croissant, I want a biscuit for my Yorkie, and I want a loaner car so I can go shopping while you prep my new car for delivery!!!!"
that pretty much describes mb of fletcher jones here in socal.....they got a water bowl outside for the dogs too

Sales nowadays are done through the internet....none of that haggling hassle
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Old 11-19-10, 10:12 AM   #11
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Although I tend to take these surveys with a grain of salt, and ranking the above average players is difficult at best.

But my real (in recent years) and actual shopping/buying experiences at Lexus/Jag/Rover/Mercedes/Porsche/BMW dealers hasn't been far off from the results shown above. I've had crap experiences at Cadillac and Lincoln stores, not unlike most Big 3 dealerships.
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Old 11-19-10, 10:50 AM   #12
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I don't think Jaguar buyers are any more or less prissy than Lexus ones. In fact, many Lexus owners tend to feel a sense of entitlement about their purchase and ownership experience IMO, based largely on the company's history.

"I want my cappucino, I want my croissant, I want a biscuit for my Yorkie, and I want a loaner car so I can go shopping while you prep my new car for delivery!!!!"

That said, I do agree with Mike/1Sick. There is a disparity between being able to service customers at a full line brand and one that sells 2 XKs, 18 XFs, and 11 XJs a month.
And would you expect anything else? Lexus owners comprise the wealthiest of all luxury brand owners second only to Porsche (and slightly ahead of Mercedes Benz which ranks 3rd and BMW which ranks 4th).

They're wealthy, and they tend to be older as well.
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Old 11-19-10, 11:51 AM   #13
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Congrats to Jag. I know plenty of Jag owners that expected the best no matter how many cars Jag sells. I think any person that pays over 50k for a car expected to be treated better than avg.
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Old 11-19-10, 11:59 AM   #14
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I can easily spend 50k on a pickup truck

50k really isnt much anymore.........
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Old 11-19-10, 12:23 PM   #15
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^ It seems like last year that people were saying that $30,000 was the "luxury" threshold. Now you can get a Prius or Chevy Cruze optioned close to that, and a BMW 5 series can run up to $90K!

Oh how times change
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Old 11-19-10, 12:23 PM
 
 
 
 
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