Customer Satisfaction Higher When Dealer is Selected Based on Reputation and Familiarity
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Mitsubishi, Daihatsu Rank Highest in a Tie in Sales Satisfaction among Mass Market Brands in Indonesia
SINGAPORE: 16 November 2015 —Though the market headwinds force manufacturers and dealers to offer attractive sales promotions, satisfaction increases when new-vehicle shoppers select a dealer based on its reputation or personal familiarity with the dealer, according to the J.D. Power 2015 Indonesia Sales Satisfaction Index (SSI) StudySM—Mass Market segment, released today.
Now in its 15th year, the study examines six factors that contribute to overall new-vehicle owner satisfaction with their purchase experience (listed in order of importance): delivery timing; delivery process; salesperson; sales initiation; dealer facility; and deal. Satisfaction is calculated on a 1,000-point scale with a higher score indicating higher satisfaction.
Overall sales satisfaction averages 771 points in 2015. Due to the study redesign, the 2015 index scores are not directly comparable with 2014.
Among customers who choose a dealer based on its reputation or personal familiarity with the dealer, satisfaction with their purchase experience is 10 points higher than those who select a dealer based on sales promotions and model availability. The percentage of price discounts has increased to 85% in 2015 from 70% in 2014. Moreover, nine in 10 customers indicate receiving freebies, such as free accessories and free extended warranty, along with their deal.
“Given that satisfaction is not driven by price alone, manufacturers should focus on building a strong and lasting relationship with their customers,” said Kaustav Roy, director at J.D. Power, Singapore. “This can be accomplished by meeting or exceeding their expectations at all touchpoints of the customer experience during the vehicle purchase and delivery processes.”
For example, customers in Indonesia expect their salesperson to deliver the vehicle to their residence. According to the study, 56% of the customers indicate their vehicle was delivered by their own salesperson. When this occurs, satisfaction increases significantly to 780, compared with 758 when the vehicle is delivered by someone else from the dealership.
- Among mass market vehicle owners who are highly satisfied (sales satisfaction scores of 810 or higher) with the purchase experience at their authorized dealership, 42% say they “definitely would” recommend the same dealership to their friends and relatives and 29% say they “definitely would” purchase another vehicle from the same dealership. In comparison, only 24 % of those who are highly dissatisfied (scores of 731 or lower) say they “definitely would” recommend their dealer and only 15% say they “definitely would” purchase from the same dealer again.
- The study identifies 22 sales standards that enhance the overall sales experience. Customers expect a minimum of 18 standards to be met in order to have a positive sales experience. When all 22 standards are met, satisfaction is 781, compared with 742 when fewer than 18 are met.
- Proactively offering test drives has an impact on satisfaction. The percentage of customers taking a test drive has increased considerably to 41% in 2015 from 34% in 2014. However, the proportion of salespersons proactively offering a test drive has dropped significantly to 84% from 92% in 2014. When a test drive is proactively offered, satisfaction is 774, compared to 755 when it is not offered.
- Customers expect their salesperson to call them after their first visit to the dealership. Among customers who received calls after their dealer visit, satisfaction is 772 vs. 761 among those who do not receive any call. Notably, satisfaction drops to 769 when more than three calls are received.
Mitsubishi and Daihatsu (780 each) rank highest in a tie among mass market brands in customer satisfaction with the new-vehicle purchase and delivery experience. Mitsubishi performs particularly well in all factors except delivery timing, while Daihatsu performs well in sales initiation and delivery timing. Datsun ranks third with a score of 773.
The 2015 Indonesia SSI Study is based on responses from 2,454 new-vehicle owners who purchased their vehicle between September 2014 and June 2015. The study was fielded from May through October 2015 and measures new-vehicle owner satisfaction with the sales and delivery experience from authorized dealers in Indonesia.
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About J.D. Power in the Asia Pacific Region
J.D. Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.
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