Salespeople Managing Customer Financing Applications Improves New-Vehicle Shopper Satisfaction with the Sales Process
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Chevrolet and Mazda Rank Highest in a Tie in Sales Satisfaction among Mass Market Brands in Indonesia
SINGAPORE: 1 October 2014 — New-vehicle buyers whose vehicle financing application was managed by the same salesperson they interacted with while selecting their vehicle are more satisfied with the entire sales process than customers whose finance application was handled by someone else, according to the J.D. Power 2014 Indonesia Sales Satisfaction Index (SSI) StudySM released today.
Now in its 14th year, the study examines seven factors that contribute to overall new-vehicle buyer satisfaction with their purchase experience. In order of importance, they are delivery process (31%); delivery timing (13%); deal (12%); dealer facility (12%); paperwork (11%); salesperson (11%); and sales initiation (9%). SSI performance is reported as an index score based on a 1,000-point scale, with a higher score indicating higher satisfaction with the new-vehicle sales and delivery process.
Overall sales satisfaction averages 766 points in 2014, down 14 points from 2013.
The study finds that satisfaction is higher among new-vehicle buyers whose vehicle financing application is handled by their salesperson (775) than among those whose application is handled by someone from either the dealer’s finance desk (762) or the finance company (750).
“Many customers, especially first-time buyers, may not be very familiar with the financing process and related documents,” said Rajeev Nair, director at J.D. Power Asia Pacific, Singapore. “Sales personnel who support their customers by handling this process can help reduce the total time required for completing the documents and getting the financing approved, which can in turn improve satisfaction.”
The study also finds that the proportion of shoppers purchasing their first new vehicle drops to 52 percent in 2014 from 66 percent in 2013. The decline in the number of first-time buyers spans all vehicle segments.
“In an uncertain economic climate that is exacerbated by the lack of clarity on whether government policies related to the Low Cost Green Car (LCGC) policy and fuel price subsidies would change after the presidential elections in Indonesia, many potential new-car buyers have adopted a wait-and-watch approach before deciding to buy a new vehicle,” said Nair. “With fewer first-time buyers in the market, the rate of growth in new-vehicle sales has slowed during the first half of this year.”
- With higher production numbers and increasing competition among brands, dealerships have used price discounts to attract shoppers and motivate them to buy a vehicle. The proportion of shoppers receiving discounts on their new-vehicle price has increased to 70 percent in 2014 from 56 percent in 2013.
- In 2014, 90 percent of shoppers in Indonesia negotiate the price of their vehicle with the dealership. Satisfaction among new-vehicle shoppers who enjoy the negotiation process and receive a discount on the price is 20 points higher than among those who do not enjoy the negotiation process and do not receive a discount.
- Satisfaction among owners who take delivery of their new vehicle at the dealership (774) is 10 points higher than among those whose vehicle is delivered to their home or office. The study finds that 85 percent of new vehicles are delivered to the owner’s home or office.
- Among mass market vehicle owners who are highly satisfied (sales satisfaction scores of 795 or higher) with the purchase experience at their authorized dealership, 53 percent say they “definitely would” recommend the same dealership to their friends and relatives, compared with only 40 percent of those who are highly dissatisfied (scores of 738 or lower).
Chevrolet and Mazda rank highest (in a tie) in overall satisfaction with the new-vehicle purchase and delivery experience among mass market brands, each with a score of 771. Chevrolet and Mazda each perform particularly well in sales initiation and delivery process. Additionally, Mazda performs well in dealer facility, paperwork and salesperson. Mitsubishi ranks third with a score of 769.
The 2014 Indonesia SSI Study is based on responses from 2,895 new-vehicle owners who purchased their vehicle between October 2013 and June 2014. The study was fielded between April and August 2014 and measures new-vehicle owner satisfaction with the sales and delivery experience from authorized dealers in Indonesia.
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XingTi Liu; J.D. Power Asia Pacific; 8-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; firstname.lastname@example.org
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