Luxury Vehicle Buyers Want Deal Closed within 3 Visits to Dealership in Taiwan
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Lexus Ranks Highest in New-Vehicle Sales Satisfaction among Luxury Brands
SINGAPORE: 22 September 2015 —Satisfaction with the purchase process for new luxury vehicles drops by 8 points when buyers have to visit the showroom more than three times to finalize the purchase, according to the J.D. Power Asia Pacific 2015 Taiwan Sales Satisfaction Index (SSI) StudySM luxurysegment, released today.
Now in its 17th year, the study has been entirely redesigned in 2015 and now examines six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are delivery process; dealership facility; salesperson; deal; delivery timing; and sales initiation. Sales satisfaction performance is reported as an index score based on a 1,000-point scale, with a higher score indicating higher satisfaction. Due to the study redesign, the 2015 index scores are not directly comparable with 2014.
Overall sales satisfaction in the luxury vehicle segment averages 848 points in 2015. The importance of the role of the salesperson as a source of information for new-vehicle purchase consideration is 65 percent, up 7 percent from 2014. New-vehicle buyers in Taiwan expect a competitive model comparison and comprehensive explanation of the vehicle features and benefits.
“Luxury new-vehicle buyers in Taiwan expect dealerships to effectively use the sales process interactions to ensure they purchase the right vehicle,” said Kaustav Roy, director, J.D. Power Asia Pacific. “Customers expect dealers to provide an effective presentation of vehicle offerings to help them complete the purchase process within a reasonable time frame.”
2015 Taiwan SSI Luxury Segment Brand Rankings
Among the five brands ranked in the luxury segment, Lexus ranks highest in satisfaction with an SSI score of 854. Lexus performs particularly well in the dealership facility and salesperson factors. Mercedes-Benz ranks second with a score of 853, performing particularly strong in sales initiation, deal and delivery timing.
KEY FINDINGS LUXURY MARKET
- Among the six study factors, satisfaction is lowest in deal (833) and delivery timing (834).
- In the deal factor, 19 percent of customers say that the price paid is more than expected. The average transaction price has increased by 2 percent and the average discount amount has dropped by 11 percent from 2014.
- More than two-thirds (69%) of customers wait 15 days or more to receive their new vehicle, compared with 53 percent in 2014. Overall, delivery time has gone up on average by four days in 2015 from 21 days in 2014.
- Satisfaction is higher among customers who had a test drive (848) than among those who did not (831).
The study finds a strong correlation between satisfaction with the new-vehicle purchase and delivery experience and customers’ future loyalty and advocacy intentions toward their dealer and brand. Among highly satisfied customers (SSI scores of 938 or higher), 71 percent say they “definitely would” recommend their purchase dealer to friends and relatives.
About the Study
The 2015 Taiwan SSI Study luxury segment is based on responses from 570 new-vehicle owners in the luxury segment who purchased their vehicle between July 2014 and April 2015. The study was fielded from January through April 2015 and measures new-vehicle owner satisfaction with the sales and delivery experience from authorized dealers in Taiwan.
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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 Australia, China, 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 asean-oceania.jdpower.com.
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