Initial Quality in Malaysia Advances for Fourth Straight Year

Malaysia, PenangFor a fourth consecutive year, overall new-vehicle initial quality in Malaysia improves significantly, according to the 2013 Malaysia Initial Quality Study (IQS), based on responses from more than 3,100 new-vehicle buyers during the first two to six months of ownership.*

The 2013 Malaysia IQS findings are encouraging because the automotive market in Malaysia is becoming increasingly competitive with a rising number of new models, which makes it essential for brands to produce high-quality cars and trucks. Continue reading ›

Millennials Consume Content and Shop Differently

 Millennials consume content and shop in different ways from other generations and these Gen Y consumers are having a profound influence on the shopping behaviors of Gen X and Boomer buyers. Today’s post offers a few more excerpts about these younger consumers from panelists and presenters at the October J.D. Power Automotive Marketing Roundtable (AMR) in Las Vegas, NV.

What Does the Car Mean to Millennials?

“About 25% of millennials said they would buy a car sight unseen. They’d go online, find it, buy it and have it delivered. This is going to become a lot more important as we go along.”—Clayton Stanfield, senior manager, Dealer Outreach, eBay Motors

“For most of us, the car was the thing we wanted. The reality with millennials is that it’s probably a device they want first and foremost. A car is kind of a secondary consideration. Maybe it’s due to economics. Maybe it’s just due to how powerfully products have been marketed to them—like Xboxes and PlayStations. . . for auto manufacturers, a way to accrue loyalty and affinity to their brands is to get deeply immersed in offering the consumer some free content.”—Randy Shaffer, director, Xbox West Sales, Microsoft Continue reading ›

Thorough Explanations Enhance After-Sales Service Satisfaction in Vietnam

Vietnam01New-vehicle owners in Vietnam prefer to have the type and scope of maintenance or repair work explained prior to their service visit and after the work is completed at the dealer or authorized service center, according to our 2013 Vietnam Customer Service Index (CSI) Study. When a service advisor provides explanations at the beginning and completion of work, satisfaction improves significantly—by 24 points (on a 1,000-point scale). Continue reading ›

J.D. Power Expert Discusses Digital Trends in Shopping for a New Vehicle

Arianne Walker

Arianne Walker

Arianne Walker, senior director of media and marketing solutions at J.D. Power, provided insights from J.D. Power’s latest research on the automotive shopping process during an opening review of “How Digital Living Impacts the Automotive Industry,” at the October J.D. Power Automotive Marketing Roundtable in Las Vegas, NV.

A prior post,  J.D. Power’s Roundtable Speaker Defines “Connected Auto Consumers” summarized Walker’s discussion of shopping trends by generation, statistics about visits to websites, in addition to explaining how AIUs (Automotive Internet Users) access information digitally. Today’s post includes more of Walker’s insight about automotive buyer online research behavior and the roles that social media and video play in the shopping experience. Continue reading ›

A J.D. Power Perspective on Ford’s Dramatic Sales Climb in China

Tim Dunne

Tim Dunne

Although Ford is somewhat of a late bloomer in the China auto market, the Detroit-based automaker is set to outpace major Japanese competitors such as Toyota and Honda Groups in passenger-vehicle sales in the China market this year, according to media reports. The major U.S. automaker still is behind General Motors and Volkswagen Group auto sales in the China market.

A Ford official told Reuters that it is possible the company will sell more than 900,000 units in 2013—including both passenger cars and commercial vehicles—in the world’s largest auto market, mainly due to a stronger product lineup. Small SUVs, including the Ford EcoSport and Kuga, have sold well and a redesigned Focus has been on sale since last year. Continue reading ›

Reliability and Price are Key Priorities for Mexico’s New-Vehicle Owners

Gerardo Gomez

New-vehicle owners in Mexico say the most important reasons for choosing their car or truck are a vehicle’s durability and reliability and its purchase price, according to our 2013 Mexico Vehicle Ownership Satisfaction Study (VOSS). Fuel efficiency is the third most important, according to the study.

The 2013 Mexico VOSS, which is based on responses from 5,497 vehicle owners in major auto markets throughout Mexico, finds that consumers want extra assurance that their vehicle will be dependable. More than one-half (60%) of owners say their 2011 and 2012-model year vehicles are covered by the original manufacturer’s warranty. Another 16% of owners say their vehicle is covered under an extended warranty, and 9% say their vehicle is covered under a pre-paid service agreement.

Price is particularly important to Mexico’s vehicle owners since, on average, the purchase price of a new vehicle may be equal to 1-2 years of disposable household income. In addition, the average annual price of insurance may be high for many consumers in Mexico—sometimes it may be equal to as much as a month’s salary. Continue reading ›

Shorter Vehicle Delivery Time Impacts Dealership Selection in India

India02Although dealer proximity is still the most influential reason for choosing a dealership in India, new-vehicle buyers cite immediate delivery as an emerging key consideration, according to our 2013 India Escaped Shopper Study (ESS). More than one-sixth (16%) of customers cite immediate delivery as the most influential reason for selecting a dealer, up from just 8% in 2009.

In addition, a longer delivery time is cited by new-vehicle buyers as the second-most influential reason to reject a vehicle that shoppers had initially considered purchasing. The interest in vehicle delivery is related to the final decision process. Once the decision is made and the payment and other processes are completed, new-vehicle owners want to immediately show off their prized possession. Continue reading ›

Sales Growth in the Philippines May Hinder New-Vehicle Sales Satisfaction

Mohit Arora

Mohit Arora

Despite the positive news of strong first-half new-vehicle sales gains in the Philippines—one of Southeast Asia’s smaller automotive markets—overall satisfaction with the new-vehicle purchase experience has declined by nine points from 2012, to 846 (on a 1,000-point scale), according to the 2013 Philippines Sales Satisfaction Index (SSI) Study.

All factors measured in the study post lower index scores than in 2012 with the most notable dip being in the salesperson factor. Continue reading ›

After-Sale Service Satisfaction Rises in Indonesia; Ford Ranks Highest in CSI

Road in Jakarta, IndonesiaOverall customer satisfaction with the after-sale service experience in Indonesia improves by 15 points from 2012, to an average of 755 (based on a 1,000-point scale), according to the 2013 Indonesia Customer Service Index (CSI) Study. The largest advances come in two of five factors* evaluated—satisfaction with service initiation and service advisor.

The improvement in after-sale service satisfaction is noteworthy as there has been sales growth in the country during the past few years, which makes it critical to continue to manage customer expectations. Light-vehicle deliveries in 2013 are expected to increase by about 10% (to 1.1 million units) from 2012, based on a forecast from strategic partner LMC Automotive. Continue reading ›

Labor Day Sales Events Boost August U.S. Light-Vehicle Delivery Totals

Buyer and Dealership ManagerU.S. new light-vehicle sales in August were more robust than anticipated, mainly due to a heady retail sales finish over the Labor Day weekend. Retail sales even outperformed the accurate monthly forecast from J.D. Power’s Power Information Network® (PIN) and strategic partner LMC Automotive, which already had projected one of the strongest sales months in six years.

There was an extra boost from holiday sales, especially on August 31 since Labor Day weekend was counted in August’s sales total as the month ended on a weekend. J.D. Power experts say they are not sure yet how much August sales will pull forward from September results. Total consumer spending on new vehicles in August was the highest on record—reaching $38.5 billion,—mainly due to strong transaction prices and higher sales, according to J.D. Power analysis.

Retail sales in August climbed 17.7% above retail totals in the same month of 2012. The final week of August sales totals (August 26 – Sept. 3) captured nearly 35% of the month’s retail sales volume, according to Dave Cutting, senior manager of North American Forecasting at LMC Automotive. Retail deliveries totaled 1.34 million units and the seasonally adjusted selling pace (SAAR) of 13.8 million was the highest since 2006. Continue reading ›