Lexus Ranks Highest in Customer Satisfaction with Dealer Service in Japan for a Fifth Consecutive Year
TOKYO (MMD Newswire) October 6, 2011 - - When it comes to providing after-sales service, customer perceptions of the care and quality with which key services are performed have a strong impact on overall satisfaction with the dealer, according to the J.D. Power Asia Pacific 2011 Japan Customer Satisfaction Index (CSI) StudySM released today.
The study, now in its 10th year, measures overall customer satisfaction with service performed at automotive dealer facilities, based on five factors. In order of importance, they are: service representative (23%); service charge (22%); service content (21%); service system/process (19%); and facility (15%). Overall customer satisfaction is reported as an index score, based on a 1,000-point scale. Overall customer satisfaction with dealer service averages 623 in 2011, an increase of three points from 2010.
In addition to examining the number of key service activities that are performed by dealers during a service visit, the study has been expanded in 2011 to also measure customer perceptions of the care and quality with which dealers perform these activities. For example, customers are asked whether dealer staff was gentle when opening and closing the doors of the vehicle.
The study finds wide variations among brands in both the quantity of key services performed and the quality of service delivery. For example, brands that deliver service with the highest levels of quality perform more than approximately 40 percent of the activities that are viewed as key quality indicators, compared with the industry average of 25 percent. As a whole, luxury brands tend to deliver both a higher number of key service activities with higher levels of quality than do mass market brands. Washing the vehicle or cleaning its interior is a practice that represents is the greatest performance gap between luxury and mass market brands.
The study also finds that as the quality with which service is delivered increases, overall customer satisfaction also increases. Among customers who indicate that 10 of the 11 key quality practices are performed, satisfaction averages 753--130 points higher than industry average.
"As the automotive market in Japan has matured, each brand has developed its own standards and protocols for dealing with customers at service visits, and it is particularly important for brands to integrate a focus on quality of service delivery to differentiate themselves from competitors," said Taku Kimoto, director at J.D. Power Asia Pacific, Tokyo.
Among the 16 brands included in the ranking, Lexus ranks highest for a fifth consecutive year, achieving a score of 761 and performing particularly well in all five factors. Audi ranks second with a score of 683, increasing notably by 33 points from 2010. Audi is followed in the rankings by Mercedes-Benz (669) and BMW (668).
Approximately 50 percent of customers say they use their selling dealer for service needs, such as routine maintenance, shaken1 inspections, oil changes and repairs. However, following three years of ownership, the proportion of customers who say they continue to use the dealer for shaken inspections declines by 15 percentage points.
The primary reasons cited by customers for continuing to visit the dealer for shaken inspections are that they prefer the security of using a manufacturer-affiliated dealer; they received a reminder from the dealer; and they trust the dealer service staff from previous visits.
"Service customers who continue to use the dealership for their routine maintenance and shaken inspections tend to make this decision based on trust in the dealership, rather than low price," said Kimoto. "These customers are more likely to say they were introduced to the service advisor and asked if service was satisfactory than are customers who visit non-dealer facilities. Performing these simple actions may help customers gain trust in the dealership, which may translate into increased loyalty and recommendation rates, as well as higher satisfaction."
According to Kimoto, the plateau in new-vehicle sales in Japan has created challenging conditions in the after-sales service market. This makes it even more critical for dealers to work on building trust and lasting relationships with customers by performing such actions as communicating with customers thoroughly prior to service visits and also providing satisfactory, high-quality after-sales service.
The 2011 Japan Customer Service Index (CSI) Study is based on responses from 11,759 customers who have owned their vehicles between 15 and50 months. The study was fielded in June 2011.
For brand ratings included in the customer satisfaction index ranking, view the Power Circle RatingsTM (PCRs) at www.jdpower.com/jp.
1Shaken inspections are performed to ensure that vehicles are properly maintained, safe to be on the road and have not been illegally modified. These inspections are required every two to three years.
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 www.jdpower.com. Media e-mail contact: shizue_hidaka@jdpower.co.jp
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. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com/.