Heightened customer expectations have contributed to a decline in overall satisfaction with new-vehicle sales and delivery in China, according to the J.D. Power Asia Pacific 2009 China Sales Satisfaction Index (SSI) Study released today.

Now in its 10th year, the study measures customer satisfaction with the new-vehicle purchase experience in the China market through examination of seven factors. In order of importance, they are: delivery process; delivery timing; dealer facility; salesperson; paperwork; deal; and sales initiation.

Overall satisfaction with the sales experience has declined slightly from 826 on a 1,000-point scale in 2008 to 822 in 2009. An influx of new-vehicle makes and models in the China automotive market has heightened competition among dealerships as well as customer expectations regarding the sales and delivery process.

The study finds that more than two-thirds (68%) of new-vehicle buyers in China visit dealerships of at least two different vehicle brands before making a purchase decision-up from 62 percent in 2008. The ratio of cross-shopping among buyers in China is significantly higher than in other regions in Asia, such as Taiwan,  China (51%) and India (27%), as well as in the United States (41%).

In addition, a climate of economic uncertainty has led many new-vehicle buyers to approach the sales process with increased scrutiny.

"New-vehicle buyers in China now have an unprecedented range of up to 90 makes and more than 400 vehicle models to choose from," said Dr. Mei Songlin, general manager of research at J.D. Power Asia Pacific China operations. "This has raised customer expectations regarding the sales and delivery process. Similarly, apprehensions about the economy have made prospective new-vehicle buyers in China tighten their belts and think even more carefully before deciding on a vehicle."

"Higher customer expectations are raising the bar for excellence," said Michael Dunne, managing director of J.D. Power Asia Pacific. "Automakers must keep a pulse on customer sentiment and execute their sales services in ways that meet or exceed customer expectations." 

Roewe ranks highest in authorized dealer sales service with a score of 851 on a 1,000-point scale. Roewe performs particularly well in six of seven factors: delivery process, delivery timing, salesperson; paperwork; deal; and sales initation. Following Roewe in the rankings are Audi (848); Dongfeng Peugeot (842); and BMW and Mercedes-Benz, in a tie (837 each). 

"The brands that rank highly in sales satisfaction each demonstrate a strong commitment to service excellence in the sales and delivery process," said Dr. Mei. "China's automakers have made commendable progress by implementing effective practices that engage customers at the dealership level." 

Certain key performance drivers are particularly effective in improving customer satisfaction and loyalty. These include demonstrating effectiveness in handling inquiries at delivery; not exerting pressure on customers to purchase a vehicle on the same day as their initial visit; having service agents greet customers immediately upon arrival; providing prompt vehicle delivery; and providing a minimum of nine liters fuel in the vehicle's tank at delivery.

The study finds notable improvement in delivery times, which are down from an average of 3.8 days in 2008 to an average of 2.8 days in 2009. In addition, the proportion of customers who test drove vehicles during the sales experience has increased to 76 percent in 2009 from 73 percent in 2008.

The China Sales Satisfaction Index (SSI) Study is a consumer-driven measure of sales satisfaction based on evaluations received from new-vehicle owners in China during the first two to six months of ownership. The 2009 China Sales Satisfaction Index Study surveyed 9,959 new-vehicle owners who purchased their vehicle between August 2008 and March 2009, and examined 44 passenger vehicle brands in total.  The study was fielded between February and May 2009 in 28 major cities in China.

Courtesy: J.D. Power and Associates

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Posted by Naresh Koshti on 28 August, 2009 3:46:13 PM IST #