J.D. Power and Associates Reports: Top Consumer `Turn Offs'
30 June 1998
J.D. Power and Associates Reports: Top Consumer `Turn Offs' in Buying a New Vehicle Saturn Keeps Turning Consumers On
AGOURA HILLS, Calif., June 30 -- The results of the
redesigned J.D. Power and Associates 1998 Sales Satisfaction Index Study(SM)
(SSI2) reveals what consumers dislike most about buying a new vehicle from a
dealer. The new study also shows Saturn continues to excel in sales
satisfaction -- Saturn ranks highest followed by Cadillac and Lexus,
respectively.
According to the study, the following are the top reasons consumers are
displeased with their dealership experience:
* Broken Promises
* Complicated Price Negotiation
* Intimidating Environment
The study shows that broken promises occur when a greater number of
personnel are involved in the purchase transaction, resulting in inconsistent
communication and lowered sales satisfaction. This also corresponds to why
consumers feel the price negotiation process is complicated. Consumers often
find the price negotiation stressful, poorly communicated and confusing. This
leads them to feel that they are not getting a good deal.
The study also shows an intimidating environment plays a negative role in
the transaction. In fact, buyers who indicate they experienced pressure
during the sales process have a significantly lower opinion of the dealership
environment. Putting the customer at ease will more likely bring them back
again.
The consistent high achievement of Saturn and the luxury makes in the
study results from sales processes designed to ensure consistent
communication, one-price shopping (a characteristic of Saturn only) and a low-
pressure environment.
"Manufacturers and dealers have focused sales satisfaction improvement
programs almost solely on salesperson training, which has become a basic
fundamental," commented Loretta Seymour, director of sales satisfaction at
J.D. Power and Associates. "It is critical for dealers to implement
standardized transaction processes that eliminate consumer turn offs in order
for the industry situation to change," said Ms. Seymour.
The J.D. Power and Associates 1998 Sales Satisfaction Index Study provides
the automotive industry with a comprehensive analysis of critical information
needed to satisfy today's demanding consumers. For the past 11 years the
study has guided manufacturers in observing the trends that affect the way
consumers view sales satisfaction.
J.D. Power and Associates redesigned the Sales Satisfaction Study after
extensive monitoring and analysis of the factors that affect customer
satisfaction with the sales process. New measurements have been added to
address what is important to today's consumers -- sales process factors such
as the purchase transaction, price evaluation and the finance and insurance
process are now included. As a result, the study provides greater diagnostic
ability to help manufacturers and dealers better analyze existing processes
and develop new ones. This is the first redesign of the study since its
beginning in 1987.
J.D. Power and Associates is an international firm best known for its
marketing information services in key business sectors including market
research, forecasting and customer satisfaction. The firm's quality and
satisfaction measurements are based on actual customer responses from over one
million consumers annually. With its headquarters in Agoura Hills,
California, the firm also has U.S. offices in Torrance, California; Michigan;
and Connecticut. Its international locations include Japan, Korea, England,
Canada and Brazil.
J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com. Media email contact: john.pepitone@jdpower.com.
This press release is provided for editorial use only. No advertising or
other promotional use can be made of the information in this release or J.D.
Power and Associates survey results without the express prior written consent
of J.D. Power and Associates.
J.D. Power and Associates
1998 Sales Satisfaction Index Study(SM) (SSI2)
Nameplates Ranking Above Industry Average
Saturn: 144
Cadillac: 143
Lexus: 142
Land Rover: 140
Volvo: 139
BMW: 138
Jaguar: 138
Mercedes-Benz: 138
Lincoln: 136
Infiniti: 134
Mercury: 132
Oldsmobile: 130
Buick: 128
Saab: 127
Chevrolet: 126
Audi: 125
Ford: 123
Acura: 122
Volkswagen: 122
Chrysler: 121
Pontiac: 120
Finishing below industry average, in alphabetical order, are: Dodge, GMC,
Honda, Hyundai, Isuzu, Jeep, Kia, Mazda, Mitsubishi, Nissan, Plymouth, Subaru
and Toyota.
Note: Eagle, Porsche and Suzuki are not ranked due to insufficient sample
size.
Source: J.D. Power and Associates 1998 Sales Satisfaction Index Study(SM)
(SSI2)
Charts and graphs extracted from this press release must be accompanied by
a statement identifying J.D. Power and Associates as the publisher, and the
J.D. Power and Associates 1998 Sales Satisfaction Index Study(SM) (SSI2) as
the source. No advertising or other promotional use can be made of the
information in this release or J.D. Power and Associates survey results
without the express written consent of J.D Power and Associates.
