Increase in Service Volume in Taiwan Adds Quality Issues to Servicing Mass Market Brands

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Nissan Ranks Highest in After-Sales Service among Mass Market Brands in Taiwan

SINGAPORE: 30 September 2015 — Authorized car dealerships in Taiwan are struggling to keep up a higher volume of after-sales service, leading to an increase in the number of customers reporting unresolved problems after their service experience, according to the J.D. Power 2015 Taiwan Customer Service Index (CSI) StudySM mass market segment, released today.

The study measures new-vehicle owner satisfaction with the after-sales service process by examining dealership performance in five factors (listed in order of importance): service quality; service initiation; vehicle pick-up; service advisor; and service facility. Dealership service performance is based on a 1,000-point scale. The study examines service satisfaction in the mass market segment.

Service volume for mass market brands in Taiwan has increased by 8 percent from 2014, creating challenges for the quality of service dealerships are providing. The 2015 study finds that6 percent of customers had problems with their vehicle after it was serviced, up from 2 percent in 2014.  Overall satisfaction among customers who experience problems after their vehicle is serviced is 827, compared with 862 among those who do not experience a problem. Satisfaction averages 855 among all customers.

“One of the key measures of the quality of service is the trouble-free operation of the vehicle post-service,” said Kaustav Roy, director, J.D. Power. “Customers expect dealers to complete the entire service work thoroughly without any unresolved issues. Automakers and dealerships that are able to deliver on this aspect are well positioned to achieve higher levels of satisfaction.”

2015 Taiwan CSI Mass Market Brand Rankings

Nissan ranks highest in overall customer service satisfaction among mass market brands, with a score of 878 and performs well in all factors. Honda, Mazda and Mitsubishi rank second (in a tie) in the mass market segment with a score of 856 each.

KEY FINDINGS MASS MARKET SEGMENT

  • There is a strong correlation between service satisfaction and customers’ advocacy intentions toward their dealer and brand. Among highly satisfied customers (CSI scores of 914 or higher), 46 percent say they “definitely would” recommend their dealer to friends and relatives. Among dissatisfied customers (CSI scores of 803 or lower), only 18 percent say they “definitely would” recommend.
  • The study finds that 77 percent of customers have to wait two hours or longer while their vehicle is serviced, up from 72 percent in 2014. Overall satisfaction among customers who wait two hours or longer is 852, compared with 867 among those who wait one hour or less.
  • Customers are becoming increasingly more critical of their service experience. The study identifies 22 service standards that enhance the overall customer service experience. Satisfaction drops by 61 points when 19 or fewer service standards are implemented in 2015, compared with a 46-point decline in 2014.
  • It is important for service advisors to spend sufficient time with customers while taking their vehicle in for service. In the 2015 study, 45 percent of customers indicate their service advisor spent less than five minutes with them, a 6 percent increase from 2014. Overall satisfaction declines by 6 points when advisors spend less than five minutes with customers.
  • The proportion of customers whose vehicle has parts replaced increases to 36 percent in 2015 from 31 percent in 2014. Additionally, the overall cost of service has increased to NTD4,057 in 2015, compared with NTD3,830 in 2014.

About the Study

The 2015 Taiwan Customer Service Index Study is based on responses from 2,853 vehicle owners in the mass market segment who received delivery of their new vehicle between March 2013 and June 2014 and took their vehicle for service to an authorized dealer or service center between September 2014 and June 2015. The study was fielded from March through June 2015.

Media Relations Contacts

Xingti Liu; J.D. Power; Singapore; Phone 65-6733 8980; xingti.liu@jdpower.com.sg

John Tews; J.D. Power; Troy, Michigan, USA; 001-248-680-6218; john.tews@jdpa.com

About J.D. Power in the Asia Pacific Region

J.D. Power 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 in the Asia Pacific region. Together, the five 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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Media Contacts

Troy, Michigan
(248) 680-6218

J.D. Power Ratings

For additional J.D. Power ratings data, please visit www.jdpower.com/cars and www.jdpower.com/ratings.