Audi ranks highest in customer satisfaction with the vehicle sales process in China
03-08-2005, 09:37 AM
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Audi ranks highest in customer satisfaction with the vehicle sales process in China
FOR IMMEDIATE RELEASE: March 8, 2005
SHANGHAI, China--Audi ranks highest in customer satisfaction with the vehicle sales process in China, according to the J.D. Power Asia Pacific 2004 China Sales Satisfaction Index (SSI) StudySM released today.
The annual SSI Study has been conducted independently by J.D. Power Asia Pacific since 2000 to measure customer satisfaction with the new-vehicle purchase experience in the China market. Index scores are derived based on customer experiences in six factor areas, which are weighted to reflect what is most important to China's motorists. They are (listed in order of importance): delivery process; salesperson; dealer facility; delivery timing; deal; and paperwork. SSI performance is reported as an index score based on a 1,000-point scale. A higher SSI score indicates a more satisfying sales process experience.
Audi ranks highest in overall sales satisfaction with 815 index points, outperforming all other brands in dealer facility, salesperson and delivery process.
With 809 index points, Tianjin FAW follows Audi in the rankings, performing well in the deal, paperwork and delivery timing factors. FAW-Mazda ranks third with a score of 798.
The study finds that consumers in China are increasingly using the Internet to shop for new vehicles. Since 2002, shopping for a vehicle on the Internet has increased by 24 percent. While purchasing vehicles online is not yet available, many dealers and manufacturers now offer consumers the ability to gather information on the Internet.
New-vehicle owners are most satisfied with their dealership sales experience in the areas of delivery timing, delivery process and salesperson. Implementing certain sales standards, such as delivering the vehicle at the promised time, delivering a clean and undamaged vehicle with the promised features, and fully explaining the warranty terms can also have a significant impact on customer satisfaction.
"Dealers increasingly understand that high customer satisfaction comes as the result of a pleasing sales and delivery process," said John Humphrey, senior vice president of international operations at J.D. Power and Associates. "Dealers in turn benefit not just from loyalty to the brand, but also from increasing the likelihood that customers will return to the dealership for future purchases and for vehicle service."
Among problems experienced with the dealer, customers most frequently cite the small selection of models in stock, followed by a difficulty answering questions and an insufficient staff to handle customers. In addition, 53 percent of customers surveyed said they felt some kind of pressure from the dealer during the sales process--a 10 percent increase from 2003. Customers most commonly cite being pressured to purchase accessories they did not want, buy a vehicle without the exact options wanted, and pay more for vehicle than they wanted.
"Due to the highly competitive nature of the Chinese market, dealers are increasingly being challenged to meet sales goals," said Humphrey. "With this more aggressive form of selling becoming increasingly common, more customers are feeling some form of pressure during the sales process, which ultimately results in an unsatisfying sales experience."
The 2004 China Sales Satisfaction Index Study is a consumer-driven measure of sales satisfaction based on evaluations by customers two to six months into the ownership period. The study is based on responses from 4,576 new-vehicle owners and covers 26 makes. The fieldwork for the study was conducted from March to May 2004.
NOTE: To view accompanying SSI charts, click here:
http://www.jdpower.com/news/releases/pressrelease.asp?ID=2005035
J.D. Power Asia Pacific Reports:
New-Vehicle Quality Improves in China
FOR IMMEDIATE RELEASE: March 8, 2005
SHANGHAI, China--New-vehicle quality in China shows significant improvements, driven by the continuous introduction of new, high-quality models to the market, quality improvement initiatives of automobile manufacturers, and a declining share of low-priced vehicles, from 2003, according to the J.D. Power Asia Pacific 2004 China Initial Quality StudySM (IQS) released today.
The Initial Quality Study provides manufacturers and suppliers with a measurement of problems experienced by owners of new vehicles during the first two to six months of ownership. Overall scores are measured as problems per 100 vehicles (PP100), with lower scores reflecting better quality. The study quantifies problems experienced in nine IQS categories: ride/handing/braking; features/controls; seats; heating, ventilation and cooling (HVAC); sound system; exterior; interior; engine; and transmission.
While the study has been conducted in China since 2000, this is the first year top-level study highlights are being released publicly. The study finds initial vehicle quality in China averages 265 PP100--an improvement of 63 PP100 compared to 2003 study findings.
"As the number of vehicle models being offered in China continues to grow rapidly, consumer perception of vehicle quality is becoming an increasingly important differentiator between brands," said John Humphrey, senior vice president of international operations for J.D. Power and Associates. "Although China's rate of quality improvement is impressive, there is still much work to be done. The average number of problems in China is still more than that seen in other developed automotive markets."
According to the study, the largest number of problems are reported by owners in the area of ride, handling and braking, comprising nearly one-fourth of all reported problems. By comparison, in mature markets such as the United States, vehicle exterior accounts for the largest share of problems. With fuel prices rising over the past year, excessive fuel consumption is the most frequently reported problem by new-vehicle owners in China.
"Exceeding customer expectations on vehicle quality provides manufacturers with an opportunity to increase brand loyalty and advocacy," said Humphrey. "Among those customers who indicate they experienced fewer problems than they expected, 38 percent say they definitely would recommend the vehicle to friends or relatives while 20 percent mention they definitely would repurchase the same brand. When customers experienced more problems than expected, only 16 percent definitely would recommend the vehicle and only 5 percent would repurchase the same brand."
Model Results by Segment
Models ranked in the premium midsize car segment average the fewest number of problems at 180 PP100, followed by the midsize car segment at 190 PP100. Compact cars average the highest number of problems at 459 PP100.
Chery QQ ranks highest in initial quality in the compact car segment at 374 PP100, followed by Tianjin Xiali (406 PP100) and Suzuki Alto (410 PP100). The QQ performs well relative to the segment average in ride/handling/braking; seats; HVAC, sound system and vehicle exterior.
Fiat Palio ranks highest in the premium compact segment at 295 PP100, followed by Suzuki Swift (348 PP100). Palio performs particularly well on ride/handling/braking; features/controls; seats; HVAC; sound system; exterior and interior.
With 145 PP100, Honda Fit ranks highest in the entry midsize car segment--the largest and most competitive segment in China--followed by Toyota Vios (203 PP100) and Volkswagen Polo (204 PP100). Honda Fit performs particularly well in features/controls; seats; HVAC; sound system; exterior; interior; transmission and engine.
Toyota Corolla leads the midsize car segment with 103 PP100, followed by Nissan Sunny (174 PP100) and Mazda Familia (176 PP100). Corolla performs particularly well in ride/handing/braking; features/controls; seats; sound system; exterior; transmission and engine.
With just 80 PP100, Honda Accord ranks highest in the premium midsize car segment and records the fewest number of problems across all segments. Accord performs particularly well in this highly competitive segment in ride/handling/braking, seats, sound system and interior. Honda Accord is followed by Toyota Camry (93 PP100) and Mazda 6 (157 PP100).
Southeast Freeca ranks highest in the SUV segment with 256 PP100, followed by Changfeng Pajero (285 PP100). The Freeca performs particularly well in ride/handling/braking; features/controls; HVAC; sound system and interior.
Honda Odyssey leads the MPV segment with 127 PP100, followed by Buick GL8 (135 PP100) and JAC Refine (229 PP100). The Odyssey performs particularly well in features/controls; seats; HVAC; transmission and engine.
The 2004 China Initial Quality Study is based on evaluations by 5,621 new-vehicle owners. Owners were interviewed between July and September 2004 throughout 20 cities in China.
NOTE: To view accompanying IQS charts, click here:
SHANGHAI, China--Audi ranks highest in customer satisfaction with the vehicle sales process in China, according to the J.D. Power Asia Pacific 2004 China Sales Satisfaction Index (SSI) StudySM released today.
The annual SSI Study has been conducted independently by J.D. Power Asia Pacific since 2000 to measure customer satisfaction with the new-vehicle purchase experience in the China market. Index scores are derived based on customer experiences in six factor areas, which are weighted to reflect what is most important to China's motorists. They are (listed in order of importance): delivery process; salesperson; dealer facility; delivery timing; deal; and paperwork. SSI performance is reported as an index score based on a 1,000-point scale. A higher SSI score indicates a more satisfying sales process experience.
Audi ranks highest in overall sales satisfaction with 815 index points, outperforming all other brands in dealer facility, salesperson and delivery process.
With 809 index points, Tianjin FAW follows Audi in the rankings, performing well in the deal, paperwork and delivery timing factors. FAW-Mazda ranks third with a score of 798.
The study finds that consumers in China are increasingly using the Internet to shop for new vehicles. Since 2002, shopping for a vehicle on the Internet has increased by 24 percent. While purchasing vehicles online is not yet available, many dealers and manufacturers now offer consumers the ability to gather information on the Internet.
New-vehicle owners are most satisfied with their dealership sales experience in the areas of delivery timing, delivery process and salesperson. Implementing certain sales standards, such as delivering the vehicle at the promised time, delivering a clean and undamaged vehicle with the promised features, and fully explaining the warranty terms can also have a significant impact on customer satisfaction.
"Dealers increasingly understand that high customer satisfaction comes as the result of a pleasing sales and delivery process," said John Humphrey, senior vice president of international operations at J.D. Power and Associates. "Dealers in turn benefit not just from loyalty to the brand, but also from increasing the likelihood that customers will return to the dealership for future purchases and for vehicle service."
Among problems experienced with the dealer, customers most frequently cite the small selection of models in stock, followed by a difficulty answering questions and an insufficient staff to handle customers. In addition, 53 percent of customers surveyed said they felt some kind of pressure from the dealer during the sales process--a 10 percent increase from 2003. Customers most commonly cite being pressured to purchase accessories they did not want, buy a vehicle without the exact options wanted, and pay more for vehicle than they wanted.
"Due to the highly competitive nature of the Chinese market, dealers are increasingly being challenged to meet sales goals," said Humphrey. "With this more aggressive form of selling becoming increasingly common, more customers are feeling some form of pressure during the sales process, which ultimately results in an unsatisfying sales experience."
The 2004 China Sales Satisfaction Index Study is a consumer-driven measure of sales satisfaction based on evaluations by customers two to six months into the ownership period. The study is based on responses from 4,576 new-vehicle owners and covers 26 makes. The fieldwork for the study was conducted from March to May 2004.
NOTE: To view accompanying SSI charts, click here:
http://www.jdpower.com/news/releases/pressrelease.asp?ID=2005035
J.D. Power Asia Pacific Reports:
New-Vehicle Quality Improves in China
FOR IMMEDIATE RELEASE: March 8, 2005
SHANGHAI, China--New-vehicle quality in China shows significant improvements, driven by the continuous introduction of new, high-quality models to the market, quality improvement initiatives of automobile manufacturers, and a declining share of low-priced vehicles, from 2003, according to the J.D. Power Asia Pacific 2004 China Initial Quality StudySM (IQS) released today.
The Initial Quality Study provides manufacturers and suppliers with a measurement of problems experienced by owners of new vehicles during the first two to six months of ownership. Overall scores are measured as problems per 100 vehicles (PP100), with lower scores reflecting better quality. The study quantifies problems experienced in nine IQS categories: ride/handing/braking; features/controls; seats; heating, ventilation and cooling (HVAC); sound system; exterior; interior; engine; and transmission.
While the study has been conducted in China since 2000, this is the first year top-level study highlights are being released publicly. The study finds initial vehicle quality in China averages 265 PP100--an improvement of 63 PP100 compared to 2003 study findings.
"As the number of vehicle models being offered in China continues to grow rapidly, consumer perception of vehicle quality is becoming an increasingly important differentiator between brands," said John Humphrey, senior vice president of international operations for J.D. Power and Associates. "Although China's rate of quality improvement is impressive, there is still much work to be done. The average number of problems in China is still more than that seen in other developed automotive markets."
According to the study, the largest number of problems are reported by owners in the area of ride, handling and braking, comprising nearly one-fourth of all reported problems. By comparison, in mature markets such as the United States, vehicle exterior accounts for the largest share of problems. With fuel prices rising over the past year, excessive fuel consumption is the most frequently reported problem by new-vehicle owners in China.
"Exceeding customer expectations on vehicle quality provides manufacturers with an opportunity to increase brand loyalty and advocacy," said Humphrey. "Among those customers who indicate they experienced fewer problems than they expected, 38 percent say they definitely would recommend the vehicle to friends or relatives while 20 percent mention they definitely would repurchase the same brand. When customers experienced more problems than expected, only 16 percent definitely would recommend the vehicle and only 5 percent would repurchase the same brand."
Model Results by Segment
Models ranked in the premium midsize car segment average the fewest number of problems at 180 PP100, followed by the midsize car segment at 190 PP100. Compact cars average the highest number of problems at 459 PP100.
Chery QQ ranks highest in initial quality in the compact car segment at 374 PP100, followed by Tianjin Xiali (406 PP100) and Suzuki Alto (410 PP100). The QQ performs well relative to the segment average in ride/handling/braking; seats; HVAC, sound system and vehicle exterior.
Fiat Palio ranks highest in the premium compact segment at 295 PP100, followed by Suzuki Swift (348 PP100). Palio performs particularly well on ride/handling/braking; features/controls; seats; HVAC; sound system; exterior and interior.
With 145 PP100, Honda Fit ranks highest in the entry midsize car segment--the largest and most competitive segment in China--followed by Toyota Vios (203 PP100) and Volkswagen Polo (204 PP100). Honda Fit performs particularly well in features/controls; seats; HVAC; sound system; exterior; interior; transmission and engine.
Toyota Corolla leads the midsize car segment with 103 PP100, followed by Nissan Sunny (174 PP100) and Mazda Familia (176 PP100). Corolla performs particularly well in ride/handing/braking; features/controls; seats; sound system; exterior; transmission and engine.
With just 80 PP100, Honda Accord ranks highest in the premium midsize car segment and records the fewest number of problems across all segments. Accord performs particularly well in this highly competitive segment in ride/handling/braking, seats, sound system and interior. Honda Accord is followed by Toyota Camry (93 PP100) and Mazda 6 (157 PP100).
Southeast Freeca ranks highest in the SUV segment with 256 PP100, followed by Changfeng Pajero (285 PP100). The Freeca performs particularly well in ride/handling/braking; features/controls; HVAC; sound system and interior.
Honda Odyssey leads the MPV segment with 127 PP100, followed by Buick GL8 (135 PP100) and JAC Refine (229 PP100). The Odyssey performs particularly well in features/controls; seats; HVAC; transmission and engine.
The 2004 China Initial Quality Study is based on evaluations by 5,621 new-vehicle owners. Owners were interviewed between July and September 2004 throughout 20 cities in China.
NOTE: To view accompanying IQS charts, click here:
03-08-2005, 02:48 PM
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Have you been to or seen a large city in China?The metropolitan areas are as developed and elaborate
as they are anywhere else in the world. The large cities put some large "nice" US cities to shame.
BTW, the Chinese are no more easy to impress/satisfy as Americans....the values and basis of customer sat (AKA Drivers of Satisfaction) differ from American's and European's, but they certainly are not easier to please.
BTW, the Chinese are no more easy to impress/satisfy as Americans....the values and basis of customer sat (AKA Drivers of Satisfaction) differ from American's and European's, but they certainly are not easier to please.
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