Increased Demand for Luxury Vehicles Leads to Delayed Delivery, J.D. Power Finds
Share This Page
Mercedes-Benz Ranks Highest among Luxury Brands in New-Vehicle Sales Satisfaction for Second Consecutive Year
SINGAPORE: 25 Sept. 2017 — Sales volume for luxury automotive brands has increased in Taiwan, resulting in a longer waiting time for vehicles to be delivered, according to the J.D. Power 2017 Taiwan Sales Satisfaction Index (SSI) Study,SM released today.
The sales volume for luxury market brands in Taiwan is increasing, with an average 10% growth rate since 2015, creating challenges for dealerships to maintain their sales service standards. With 51% of luxury-brand vehicle owners saying that they waited more than three weeks to receive their vehicle—up 11% from 2016—the increase in sales volume is having a noticeable impact on the customer experience. Overall satisfaction on a 1,000-point scale among customers who waited more than three weeks is 769 points, compared with 833 among those who have their vehicle delivered within three weeks.
“It is encouraging to see the luxury market growing with a steady sales volume, but it is crucial that the customer experience should always remain a key focus at the core of the business,” said Kaustav Roy, Director at J.D. Power. “Despite a longer waiting time, the salesperson should always keep customers updated on the delivery status and try to avoid offering an unrealistic estimated time, which can lead to rescheduling of the original delivery time later on.”
Half of luxury customers had their original delivery time rescheduled upon the salesperson’s request. This percentage increases to 61% for those who waited three weeks or longer for their vehicle. Overall satisfaction drops to 769 points among customers who had their original delivery time rescheduled, compared with 831 among those who received delivery as first promised.
Following are additional key findings of the study:
- Customers who closed their price negotiation within a month have a higher satisfaction level within the deal factor than those whose deal took longer than one month to complete (799 vs. 762, respectively). This year, 30% of customers closed the deal within a month—a decrease from 41% in 2016.
- Customers expect their sales transaction to be completed within four days. When the dealer takes five days or longer to complete the transaction, satisfaction drops to 787 points. Nearly three-fourths (73%) of customers spent five days or more to complete their sales transaction this year, a up from 66% in 2016. On average, the sales transaction process takes 16 days to complete in 2017, an increase of five days from 2016.
- The overall satisfaction score among first-time vehicle buyers averages 807 points, compared with 798 among return buyers. First-time new-car buyers account for 21% of luxury customers in 2017, up from 18% in 2016.
Overall sales satisfaction in the luxury segment averages 800 points in 2017. Among the five brands ranked in the segment, Mercedes-Benz ranks highest in satisfaction with a score of 808 and performs particularly well in the factors of sales initiation; dealer facility; deal; and delivery timing. BMW ranks second with a score of 804, performing particularly well in deal; salesperson; and delivery process. Lexus ranks third with a score of 791.
About the Study
The 2017 Taiwan Sales Satisfaction Index (SSI) Study examines six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are delivery process (20%); dealership facility (20%); salesperson (19%); deal (16%); delivery timing (13%); and sales initiation (12%). The study examines sales satisfaction only in the luxury segment.
The study, now in its 19th year, is based on responses from 635 new-vehicle owners in the luxury segment who purchased their vehicle between July 2016 and March 2017. The study, which was fielded from January through May 2017, measures new-vehicle owner satisfaction with the sales and delivery experiences from authorized dealers in Taiwan.
Media Relations Contacts
Aisling Carty; J.D. Power; Singapore; 65-6733 8980; firstname.lastname@example.org
Geno Effler; J.D. Power; Costa Mesa, Calif., USA; 001‐714-621-6224; email@example.com
About J.D. Power in the Asia Pacific Region
J.D. Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding J.D. Power and its products can be accessed through the internet at asean-oceania.jdpower.com.
About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info