Lexus ranks highest for a second consecutive year in customer satisfaction with the new-vehicle sales process in Taiwan, according to the J.D. Power Asia Pacific 2009 Taiwan Sales Satisfaction Index (SSI) Study released.

Now in its 11th year, the redesigned study measures new-vehicle owner satisfaction with the sales and delivery experience by examining seven key factors that contribute to overall satisfaction. In order of importance, they are: delivery process, salesperson, delivery timing, sales initiation, deal, paperwork and dealer facility. Overall satisfaction averages 876 on a 1,000-point scale in 2009.

Among the 11 brands included in the study, Lexus ranks highest with an overall SSI score of 918 and performs particularly well in all seven factors. Mercedes-Benz follows Lexus with a score of 897, while Toyota (892) and BMW (881) rank third and fourth, respectively. 

The study finds that 43 percent of new-vehicle buyers shopped at least one competing dealer before making their final purchase at a different dealer. However, new-vehicle owners who seriously considered purchasing their vehicle from another dealer have lower satisfaction scores (867 points) compared with those owners who considered only one dealer during the shopping process (884 points).

"It's interesting to note that new-vehicle sales have declined for three consecutive years in the Taiwan market, and new-vehicle buyers who are actively shopping in this turbulent marketplace are very particular about seeking out the best deal," said Masako Hori, senior research director at J.D. Power Asia Pacific, Singapore. "Although it is much tougher for dealers to satisfy this group of customers, providing value-added elements in dealer showrooms-such as a display of product information or offering a wide selection of vehicle displays-can increase sales traffic and help give dealers an advantage in the competitive auto market."

The study finds that there has been steady growth in the number of new-vehicle buyers who use the Internet while shopping, which is a key indicator that customers want more information before making their final purchase decision.

In 2009, 53 percent of new-vehicle buyers used the Internet to help them shop for their vehicle-up 17 percent compared with study results five years ago. Among shoppers ages 30 to 39, 63 percent utilize the Internet during the shopping process, while 69 percent of customers ages 29 and below do the same. The level of Internet usage drops among customers ages 50 and older, with only 24 percent using the Web for shopping.

In addition, customers who use the Internet for shopping are less satisfied, on average, than those customers who do not use the Internet.

"Customers who shop for vehicles using the Internet generally have more information and knowledge with which to compare products and deals prior to visiting dealers, and this likely makes them much more critical during the sales process," said Hori.

The study also finds that nearly 70 percent of customers with SSI scores averaging 956 points or higher say they definitely would recommend the dealer from which they purchased their vehicle to family and friends. This percentage drastically decreases to only 17 percent among customers with SSI scores averaging 825 points or lower.

"Customers report friends and relatives as the most frequently used sources of information when shopping for a new vehicle," said Hori. "This further verifies the benefits of improving customer satisfaction, as it promotes loyalty and advocacy intentions through positive recommendations to potential customers."

The 2009 Taiwan SSI Study is based on responses from more than 2,000 new vehicle owners who purchased their vehicles between July 2008 and February 2009. The study was fielded from January to April 2009. An additional J.D. Power Asia Pacific automotive industry study, the 2009 Taiwan Customer Service Index Study (CSI), which measures new car owner satisfaction with after-sales dealership service, will be published in September 2009.

Courtesy: J.D. Power and Associates

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Posted by Naresh Koshti on 2 July, 2009 11:53:48 AM IST #