New-Vehicle Owner Satisfaction with the Commitment Level and Knowledge Of the Sales Staff at Authorized Dealerships in the Philippines Improves

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Toyota Ranks Highest in Sales Satisfaction in the Philippines

SINGAPORE: 29 AUGUST 2014 — Satisfaction with the knowledge of dealer sales staff and the attention they provide during the shopping experience improves among new-vehicle buyers in the Philippines, according to the J.D. Power Asia Pacific 2014 Philippines Sales Satisfaction Index (SSI) StudySM released today.   

Now in its 14th year, the study examines seven factors that contribute to overall customer satisfaction with the new-vehicle 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, with a higher score indicating higher customer satisfaction.

Overall satisfaction with the sales process improves to 847 in 2014, from 846 in 2013. Satisfaction with the salesperson also improves year over year (858 vs. 851, respectively), driven primarily by the salesperson’s knowledge of new-vehicle models and ability answer customers’ questions.

In 2014, 93 percent of salespersons offered customers loan options, up from 79 percent in 2013, with 90 percent offering a choice of finance provider, an increase from 78 percent in 2013. However, despite the increase in the percentage of salespersons providing finance options, 22 percent of new-vehicle buyers pay cash for their vehicle.

“With new-vehicle sales in the Philippines increasing by 25 percent in 2014 compared with 2013, sales are at record levels. Capitalizing on the current sales trend, dealerships with dedicated sales representatives who deliver exemplary purchase experiences can greatly benefit from positive word of mouth as 80 percent of customers rely on recommendations from friends and relatives,” said Loic Pean, senior manager at J.D. Power Asia Pacific. “Internet usage and information sharing on blogs, forums or social networking sites has increased, with 20 percent of new-vehicle buyers posting details of their purchase experience on such sites. It is, therefore, essential for dealers to focus on customer satisfaction.”


  • A majority (95%) of new-vehicle buyers indicates their salesperson asked about their vehicle usage and needs, and offered a test drive; however, this is a 2 percentage point drop from 2013. Both activities have a notable impact on satisfaction.
  • Overall satisfaction among first-time new-vehicle buyers—who comprise 68 percent of the market in 2014—is 844, compared with 854 among repeat buyers, narrowing the gap in satisfaction between first-time and repeat buyers to 10 points in 2014 from 17 points in 2013.  
  • A higher proportion (88%) of new-vehicle buyers pre-determine their target purchase model prior to visiting the dealership in 2014, compared with 2013 (84%).
  • One-third of owners (33%) visited a dealership other than the one from which they ultimately purchased their vehicle; however, 76 percent visited their purchase dealer two or more times before buying a vehicle.
  • During the delivery process, salespersons are improving at providing explanations on vehicle safety features; how to operate each feature; warranty coverage; and maintenance schedule. Consequently, 18 percent of owners are “delighted” (providing a rating of 10 on a 10-point scale) with the thoroughness of the explanations their salesperson provided during the sales process in 2014, up from 14 percent in 2013. However, the percentage of customers “indifferent” (providing a rating of 6 or 7) or “disappointed” (providing a rating of 1 to 5) with the attention provided by a salesperson during the delivery process has increased to 16 percent in 2014 from 12 percent in 2013.
  • Despite an increase in the percentage (85%) of owners who negotiate the price of their new vehicle in 2014, up 14 percentage points from 2013, 14 percent indicate they paid more than they expected.
  • Nearly three-fourths (74%) of new-vehicle buyers receive a discount when they purchase their vehicle and 84 percent enjoy the negotiation process.

Study Rankings

Toyota ranks highest in new-vehicle sales satisfaction in the Philippines with a score of 860. Toyota performs particularly well in the delivery process, delivery timing, salesperson, paperwork, deal and dealer facility factors. Ford ranks second at 855.

The 2014 Philippines Sales Satisfaction Index (SSI) Study is based on responses from 1,484 new-vehicle owners who purchased their vehicles between August 2013 and April 2014. The study was fielded from February to June 2014.

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, Australia, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at Media e-mail contact: Please follow J.D. Power at

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