Dealers Must Align Higher Expectations of New Low Cost Green Car Buyers with Stronger Service Offerings, J.D. Power Finds
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Mitsubishi Ranks Highest among Mass Market Brands
SINGAPORE: 1 Nov. 2017 — Although a significant proportion of first-time buyers (77%) fall within the low-cost green car (LCGC) segment, only 22% of these customers have experienced all standard processes within their purchase journey, compared with 27% of non-LCGC customers. Additionally, LCGC customers have higher expectations from dealers, with overall satisfaction in this group at 818 points—on a 1,000-point scale—when their experience is higher than expected, compared with 837 in the non-LCGC group, according to the J.D. Power 2017 Indonesia Sales Satisfaction Index (Mass Market) Study,SM released today.
The LCGC segment accounts for 27% of the Indonesian automobile market in 2017, increasing from 22% in 2015. Overall satisfaction among customers in the LCGC segment is 774 points, compared with 788 in all other segments. Moreover, the study finds that LCGC customers not only have higher expectations, but also receive a relatively lower level of implementation of processes from their selling dealers, compared with non-LCGC customers.
A proportion of LCGC owners receive fewer of the following service offerings from authorized dealers than owners in the other segment: demonstrations during test drives (35% vs. 42%, respectively); salesperson offered loan (57% vs. 68%); overpromising by the salesperson for the delivery timing (28% vs. 23%); and new-vehicle delivery time within seven days (58% vs. 63%).
“LCGC segment demand has been quite strong in Indonesia with most of the key automakers launching new models. Given that these customers will likely migrate to the higher segments in their ownership cycle, it becomes important for manufacturers and dealers to ensure they understand the profile and needs of these customers in order to deliver a superior purchase experience,” said Kaustav Roy, Director at J.D. Power. “Manufacturers and dealers that are able to demonstrate a strong focus on LCGC customers are likely to experience higher advocacy and repurchase levels.”
Following are additional key findings of the study:
- Length of closing the deal has increased: The study finds that customers are taking more time to close the final price and deal with the authorized dealer; 52% of customers have closed the deal within one month in 2017, compared with 61% in 2016. When customers do close the deal within one month, satisfaction improves by 14 points.
- Sales completion time has decreased: The speed of completing the sales transaction process has improved in 2017. Nearly three-fourths (73%) of customers indicate completing the transaction within seven days, an increase of 10% from 2016. When the process is finalised within seven days, satisfaction increases by 8 points.
- Vehicle delivery time has decreased: New-vehicle delivery within one week of booking has increased to 61% in 2017 from 55% in 2016. Satisfaction among customers who receive their vehicle within seven days is 24 points higher than among those who receive their new vehicle after seven days (797 vs. 773, respectively). Additionally, while 91% of customers have their new vehicle delivered to their home, a higher percentage have their vehicle delivered by their salesperson this year (71% in 2017 vs. 59% in 2016), resulting in an increase in satisfaction of 11 points.
Mitsubishi ranks highest in sales satisfaction among mass market brands in Indonesia, with a score of 802. The brand shows highest performance across all the factors in the purchase experience. Toyota ranks second with a score of 789, while Daihatsu ranks third with 785.
About the Study
The 2017 Indonesia Sales Satisfaction Index (SSI) Study is based on responses from 2476 new-vehicle owners who purchased their vehicle from September 2016 through July 2017. The study was fielded from March through September 2017 and measures new-vehicle owner satisfaction with the sales and delivery experience from authorized dealers in Indonesia.
Now in its 17th year, the study examines six factors that contribute to overall new-vehicle owner satisfaction with their purchase experience (listed in order of importance): delivery timing; delivery process; salesperson; sales initiation; dealership facility; and deal. Satisfaction is calculated on a 1,000-point scale with a higher score indicating higher satisfaction.
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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, informationtechnology 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.
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