• Nov 20, 2008
The results are in from J.D. Power and Associates' latest annual Sales Satisfaction Index Study, and Jaguar has leapt back up to the top position that it occupied for three of the four past years before dropping last year to third. The study surveyed some 36,000 buyers and leasers of new cars on their dealership experience, taking into account the dealership's facility, the individual salesperson, the paperwork and finance process, vehicle delivery process and price as criteria for their overall satisfaction. Jaguar dealers scored particularly high in the delivery, paperwork and price categories by properly explaining their vehicle's features, delivering the vehicles in excellent condition and offering good value compared to its competitors.

Not surprisingly, premium brands scored highest on the list, with HUMMER, Lexus, Cadillac and Mercedes joining Jaguar in the top five. More surprisingly, however, is that Asian brands scored particularly low in the study. Along with Chrysler LLC brands Dodge and Jeep, Mazda, Nissan and Mitsubishi were among the bottom five, with Honda, Toyota, Scion, Subaru, Suzuki and Hyundai also coming in below the industry average. Overall, however, overall customer satisfaction in the dealership experience rose again this year, indicating a concerted effort by automakers to make their customers happy right out of the gate. As well they should be, as JD Power reports that customers faced with an unsatisfactory sales experience are three times less likely to service their new car at the dealership where it was purchased and are likely to dissuade an average of six people from buying their new car there. For more details, check out the press release after the jump.

[Source: J.D. Power and Associates]

PRESS RELEASE

J.D. Power and Associates Reports:
Despite Difficult Market Conditions, Auto Manufacturers Increase Customer Satisfaction
With the New-Vehicle Sales Process for a Third Consecutive Year

Jaguar Ranks Highest in Satisfying Customers with the New-Vehicle Sales Process

WESTLAKE VILLAGE, Calif.: 19 November 2008 - Despite an increasingly tumultuous automotive market, customer satisfaction with the new-vehicle sales process has steadily increased since 2005, according to the J.D. Power and Associates 2008 Sales Satisfaction Index (SSI) StudySM released today.

Now in its 22nd year, the study is a comprehensive analysis of the new-vehicle purchase experience. Overall customer satisfaction is measured based on five factors: dealership facility; salesperson; paperwork/finance process; delivery process; and vehicle price.

"A poor customer experience over the phone, e-mail or at the dealership not only leads to a loss in potential sales, but also has a detrimental impact on repeat business," said Tom Gauer, senior director of automotive retail research at J.D. Power and Associates. "Customers who are disappointed with their sales experience are nearly three times less likely to return to their dealer for vehicle service. These customers also tell an average of six people to avoid shopping at that particular dealership. Ensuring a pleasant shopping experience is absolutely critical in surviving today's challenging auto market."

Overall satisfaction across the industry has increased for a third consecutive year-up from 842 points on a 1,000-point scale in 2005 to 857 points in 2008. The five-point increase from 2007 to 2008 is primarily driven by improvements in dealership facility and delivery process. Additionally, more than 90 percent of brands examined in the study improved their overall satisfaction score in 2008 compared with 2007.

"The year-over-year industry improvements truly speak to the level of effort that manufacturers and dealers are putting toward providing a highly satisfying experience for their customers," said Gauer. "While the industry overall performs well, premium nameplates in particular dominate the SSI rankings-outperforming non-premiums by an average of 34 points."

Jaguar ranks highest in satisfying buyers with the new-vehicle sales process, improving 14 points from 2007 to a score of 907 in 2008. Jaguar performs particularly well in the paperwork/finance and delivery process factors. Following Jaguar in the rankings are HUMMER, Lexus, Cadillac and Mercedes-Benz, respectively, to round out the top five nameplates.

While the percentage of consumers who use the Internet to shop for their new-vehicle has steadily increased, consumers using the Web report lower satisfaction levels compared with those who do not. According to the 2008 J.D. Power and Associates New Autoshopper.com StudySM, 75 percent of consumers use the Internet to shop for their new vehicle, which is up from 70 percent in 2007. However, consumers using the Web experience satisfaction scores averaging 851 points, while those who do not use the Web have satisfaction scores averaging 873 points.

"Those consumers who conduct research on the Internet before visiting a dealer are generally more knowledgeable about the vehicles they are shopping for," said Gauer. "Consumers are using the Internet to find information about price, to help decide which make or model to buy and to determine which dealership to visit. This sets a level of expectation before the consumer even steps on the dealer lot. Dealers must react to this by not only making sure the information on the Web regarding their business is as up-to-date and valid as possible, but by also making sure that their staff members are conversant with the information provided. This will ensure the Internet is a valuable tool for enhancing satisfaction and driving customers into the dealership."

While price is the key reason for choosing a particular dealership, convenient location is an increasingly important reason among consumers. In 2008, 26 percent of consumers mention convenient location as a key reason for choosing to buy from their dealer, which is up from 24 percent in 2007 and 23 percent in 2006.

The study also finds the following trends:

  • Nearly 35 percent of new-vehicle buyers request pricing information via phone or e-mail before selecting a dealership to visit. However, 20 percent of new-vehicle buyers choose not to visit a particular dealer based on these phone or e-mail interactions.
  • Customers who are delighted with their purchase experience make an average of five positive recommendations regarding their new vehicle. In contrast, those that are disappointed tell at least two people to avoid buying the same vehicle.
  • Among customers who leave a new-vehicle dealership without making a purchase, 40 percent cite poor treatment as the primary reason. Conversely, "hassle-free" negotiation is a leading reason why buyers choose to purchase from one dealer compared with another dealer.
The 2008 Sales Satisfaction Index Study is based on responses from 35,805 new-vehicle buyers who purchased or leased their vehicles in May 2008. The study was fielded in August and September 2008. To view ratings on customer satisfaction with the new-vehicle sales process or an article on study results, visit JDPower.com.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on
boat ratings, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. 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 (NYSE: MHP) 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, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at
http://www.mcgraw-hill.com/.



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  • 19 Comments
      • 6 Years Ago
      I can't understand why Hummer doesn't own this award.

      I can't imagine anything better than getting a hummer at the dealership.
        • 6 Years Ago
        Please, the only attractive woman that worked at the GM dealership I worked at was in human resources. She only gave hummers to people that cured that itch in her nose ;)
        • 6 Years Ago
        If I got his joke right, then I think he meant that people will actually beg you to buy it. Perhaps even buy the car for you.
        • 6 Years Ago
        My guess is that not EVERYONE wants a "hummer" from their salesman... They just want to buy a truck.
      • 6 Years Ago
      so all of the domestics except for 2, ranked 'above average?'.

      But I guess they still suck because they're American right?
      • 6 Years Ago
      "Asian brands scored particularly low in the study. Along with Chrysler LLC brands Dodge and Jeep, Mazda, Nissan and Mitsubishi were among the bottom five, with Honda, Toyota, Scion, Subaru, Suzuki and Hyundai also coming in below the industry average."

      HAHA!!!
      __________HAHAHAHA!!!

      HAHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAH!!!!!
      • 6 Years Ago
      36 customer can't be wrong!
        • 6 Years Ago
        before i get bashed, it was a joke. I love Jaguar. I own a '98 XJR that has been a peach since the day i took ownership.
      • 5 Years Ago
      Hyundai Motor Corp. surprised everyone this year by making the biggest increase in automotive brand value and recognition. Hyundai for the first time ever beat such marques as Porsche, Lexus, and Nissan. Honda and Toyota are now forced to take Hyundai more seriously as it is now closing in on them at a rapid pace. According to J.D. Power and Associates, Hyundai has one of the highest consumer satisfaction ratings of all vehicle manufacturers and its brand value has greatly increases after the introduction of their hot 2006 model lineup. 2003 hyundai sonata
      • 6 Years Ago
      Because they're desperate!
      • 6 Years Ago
      Jaguar, huh. Do people still buy those things?
      • 6 Years Ago
      Nice to see that Jaguar treats you nice while selling you a lemon! J/K. ;)
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