Customer Satisfaction with Vehicle After-Sales Service in the Philippines Improves Considerably in 2012

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Chevrolet Ranks Highest in Customer Satisfaction with After-Sales Service for a Second Consecutive Year

SINGAPORE: 27 July 2012 — Overall satisfaction with authorized dealer customer service in the Philippines has increased by 25 points, compared with 2011, to 821 on a 1,000-point scale, according to the J.D. Power Asia Pacific 2012 Philippines Customer Service Index (CSI) StudySM released today.

Now in its 12th year, the study examines five factors that contribute to overall satisfaction of vehicle owners who visit an authorized service center for maintenance or repair work during the first 12 to 24 months of ownership. They are (listed in order of importance): service quality, vehicle pick-up, service initiation, service advisor, and service facility.

Chevrolet ranks highest for a second consecutive year with an overall index score of 836 and performs particularly well in the service quality and service advisor factors. Nissan (832) and Mazda (831) rank second and third, respectively. Nissan performs well in the vehicle pick-up factor, while Mazda performs well in the service initiation and service facility factors.

Of the 11 brands ranked in the 2012 study, eight improve, compared with 2011. Mitsubishi improves by 40 index points, followed by Hyundai (+37) index points and Honda (+35 points).

"Customer satisfaction with automakers in the Philippines is increasing, and they are working together with their dealer networks toward delivering a better service experience to their customers," said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore. "This materializes in a growing proportion of customers who are "delighted" and "pleased" with the after-sales service experience at authorized vehicle service centers, 83 percent combined. In parallel, overall satisfaction with vehicle quality has improved, which is supported by several new product launches in recent years."

The study also finds that providing accurate cost estimates and consistently meeting these estimates are key to creating high levels of customer satisfaction with dealer after-sales service. Satisfaction among vehicle owners who claim the actual service costs were the same or less than the original estimate is 828--which is higher than among owners who say they received no estimate (805) or that the actual costs were higher than the estimate (746).

"Service customers are particularly sensitive about the transparency of the service, notably through receiving accurate cost estimates and how well dealerships are meeting their initial commitments before service begins," said Arora. "In 2012, 82 percent of customers received cost estimates, which is the lowest rate in the past five years, making this a critical-to-satisfaction area in which dealers may need to pay greater attention going forward."

Customers also value efforts made by service advisors to conduct a physical inspection of their vehicle, both before and after service. Satisfaction among customers who report that their service advisor performed both a walk-around/ multi-point inspection before taking the vehicle in for service and then reviewed the work performed on the vehicle at the pick-up stage is considerably higher (833) than among those who report either a partial inspection (i.e., either pre- or post-service) or no physical inspection (764).

In addition, the study finds that brand advocacy and loyalty are closely related to satisfaction with the overall service performance of the dealer. Nearly nine of 10 customers (89%) who say they are "delighted" with dealer service (providing a rating of 10 on a 10-point scale) have made at least one positive recommendation about their service dealer. Conversely, among the 28 percent of customers who say they are "disappointed" (providing a rating of five or below) 33 percent have made at least one negative recommendation.

"Transparency and quality of work performed are building blocks of trust between service customers and authorized service centers, which drives customer satisfaction and, in turn, translates into increased brand advocacy and customer retention," said Arora.

The 2012 Philippines Customer Service Index (CSI) Study is based on responses from 1,822 vehicle owners who purchased their vehicle between February 2010 and May 2011 and took their vehicle for service to an authorized dealer or service center between August 2011 and May 2012. The study was fielded between February 2012 and May 2012, and comprised evaluations with 70 models.

About J.D. Power Asia Pacific

J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: xingti_liu@jdpower.com.sg

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company's quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on 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

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial's leading brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

XingTi Liu; J.D. Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811;
Phone +65-67338980; xingti_liu@jdpower.com.sg

John Tews; J.D. Power and Associates; Troy, Mich.; (248) 680-6218; media.relations@jdpa.com

Follow us on Twitter: @JDPower

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

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Media Contacts

Troy, Michigan
(248) 680-6218