Customer Satisfaction with the New-Vehicle Sales and Delivery Process in the Philippines Improves for a Second Consecutive Year

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Honda Ranks Highest in New-Vehicle Sales Satisfaction in the Philippines

SINGAPORE: 31 August 2012 – As domestic sales of new passenger vehicles in the Philippines continues to grow--with an approximate 8 percent increase year over year to 70,844 units sold as of June 2012--customer satisfaction with the new-vehicle sales and delivery process has improved for a second consecutive year, according to the J.D. Power Asia Pacific 2012 Philippines Sales Satisfaction Index (SSI) StudySM released today.

Customer satisfaction has increased from 2011 across all factors, with the largest improvements in delivery timing (+33 index points) and salesperson (+27 index points). In addition, overall satisfaction for all 10 brands included in the study has increased by double digits in 2012.

"As the market recovers from supply issues caused by the floods in Thailand in 2011, dealers in the Philippines are putting more efforts on customer satisfaction and in meeting customer needs," said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore. "This has resulted in a larger proportion of customers who are more highly satisfied with the overall purchase experience."

Now in its 12th year, the study examines seven factors that contribute to overall customer satisfaction with the purchase experience. In order of importance, they are: delivery process; delivery timing; salesperson; paperwork; deal; sales initiation; and dealer facility. SSI performance is reported as an index score based on a 1,000 point scale, and a higher overall score indicates greater satisfaction with the new-vehicle sales and delivery process. Overall sales satisfaction averages 855 in 2012--an improvement of 26 points from 2011.

Honda ranks highest in new-vehicle sales satisfaction with a score of 862 and performs particularly well in the paperwork, salesperson and delivery timing factors. Closely following Honda in rankings are Hyundai (861), Kia (860) and Ford and Toyota in a tie (857 each). Hyundai performs particularly well in the deal factor, while Kia performs particularly well in sales initiation and delivery process and Ford performs well in dealer facility.

The study finds that salespersons' greater focus on customers has improved. The proportion of customers whose salesperson asked about their vehicle usage and needs has increased to 94 percent in 2012 from 89 percent in 2011. Likewise, the time taken to close the deal has shown improvement from 2011.

"Customers are increasingly expecting a shorter time frame to close the deal," said Arora.  "As the deal and paperwork factors represents nearly one-fourth of the overall satisfaction score, dealers must continue to focus on this aspect of the customer experience or risk losing business to their competition."

The proportion of customers who financed their vehicle purchase through a loan significantly increased following the Philippines credit boom in 2012, in which auto loans rose at approximately 17 percent year over year, and represented around P145 billion as of the end of March 2012. In the 2012 study, 71 percent of customers indicate they purchased their vehicle with a loan, up from 52 percent in 2011.

The study finds that high levels of satisfaction translate into higher levels of repurchase intent and brand loyalty. Among customers who say they are "delighted" with the sales process for their new vehicle (providing a rating of 10 on a 10-point scale), 44 percent say they "definitely would" repurchase the same make, compared with 11 percent of customers who are "disappointed" with the sales process (ratings of five points or lower) say the same.

"The challenge for dealers is to focus on long-term satisfaction and loyalty, as 67 percent of new-vehicle owners in 2012 are first-time buyers in the Philippines," said Arora. "Dealers and manufacturers must find ways to consistently maintain and improve the customer experience, as showroom traffic--and thus competition to conquest new customers--is increasing."

The 2012 Philippines SSI Study is based on responses from 1,505 new-vehicle owners who purchased their vehicle between August 2011 and April 2012. The study was fielded from February to June 2012.

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 Media e-mail contact:

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 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

Media Relations Contacts:

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

John Tews; J.D. Power and Associates; Troy, Mich.; (248) 680-6218;

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.

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