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Syvetril Perryman
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Felix Friedrich
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J.D. Power and Associates Reports:
Vehicle Shoppers in Germany Cite Lack of Attention from the Salesperson
Among Top Reasons for Rejecting a New Vehicle
Vehicle Shopping Experience Satisfaction is Highest among Customers
Who Purchase from Manufacturer-Owned Dealerships and Smaller Dealerships
MUNICH: 26 November 2008 — Lack of attention from the salesperson is the most frequently cited non-price-related reason for customer rejection of European premium and volume automotive brands, while poor interior design is the top non-price-related reason for rejection of non-European volume brands in Germany, according to the J.D. Power and Associates 2008 Germany Automotive Shopper StudySM released today.
The inaugural study analyzes reasons that new-vehicle shoppers may reject certain models, brands or dealerships, as well as the factors that influence customer satisfaction with the new-vehicle sales process. The study also examines customer shopping habits and reveals strengths and weaknesses in the selling process, as well as their influence on customer satisfaction. Customer satisfaction with the new-vehicle sales process is based on five factors (listed in order of importance): delivery process (34%); dealership facility (20%); salesperson (17%); paperwork process (17%); and negotiation of the deal (12%).
The study finds that as customer satisfaction with attentiveness of the salesperson increases, the likelihood that the shopper will reject a brand due to price or product reasons decreases.
“High satisfaction with dealer and salesperson performance make it significantly less likely that the shopper will reject due to price,” said Dr. Tobias Schütz, director at J.D. Power and Associates, Munich. “When sales processes are fully aligned to meet shopper expectations, customer service can, to some extent, compensate for product deficiencies and price concerns.”
Of the 11 makes included in the study, BMW, Mercedes-Benz, Renault and Toyota are amongst the highest-ranked brands for overall sales satisfaction with the sales personnel, paperwork and delivery processes.
The study also finds that the satisfaction levels are higher, on average, among customers who purchase their vehicles from manufacturer-owned dealerships (known as “Niederlassungen”), or smaller independent dealerships, compared with customers who purchase from medium or large dealerships. Customers who purchase from Niederlassungen dealerships are particularly satisfied with the dealership facility and the paperwork and delivery processes. Customers who purchase from smaller independent dealerships are being particularly satisfied with the interactions with salespersons.
“Niederlassungen dealerships tend to be more flexible and are able to offer competitive prices to potential buyers, while smaller independent dealerships are able to manage personal relationships with customers,” said Schütz. In order to increase satisfaction levels and potentially gain new and repeat sales, medium and large and dealerships in particular should focus specifically on offering competitive prices and developing personal relationships with buyers.”
While there is no significant difference in overall satisfaction ratings provided by male and female customers, the salesperson’s gender does have a substantial impact on satisfaction with the overall shopping experience. The study finds that while male shoppers appreciate assistance by female salespersons, female shoppers may be not be as appreciative when served by female salespersons.
“The study also finds that female shoppers tend to reject relatively often due to product issues, such as interior styling, exterior design or lack of room in the cargo area or trunk,” said Schütz. “In order to conquest sales in the downturned economy, dealerships need to consciously manage their sales personnel gender mix when dealing with shoppers, in addition to offering diverse product availability.”
Additionally, the study finds that among customers who say they are “extremely satisfied” with the purchase process, 75 percent report that they are willing to recommend their dealership to friends and family. In contrast, among all other customers, only 27 percent report that they are willing to recommend their dealership to friends and family.
“J.D. Power’s research repeatedly finds that recommendations from customers are crucial for the economic success of dealerships, and it is evident that there is a strong relationship between overall customer satisfaction and willingness of customers to recommend their dealerships,” said Schütz. “The same correlation can also be observed when examining the likelihood of new-vehicle customers to have their vehicle serviced at the selling dealership.”
The study also finds the following key purchase behavior and decision drivers among new-vehicle shoppers in Germany: - Satisfaction among non-European volume brand customers is significantly higher than satisfaction among European volume brand clients.
- Younger shoppers (those younger than 30 years old) are the single-most-dissatisfied demographic segment, while older shoppers (ages 50 and older) are the most satisfied, on average.
- Younger shoppers are more price-driven when making vehicle-purchase decisions, while older shoppers are more likely to base decisions on their prior experience with a make and the durability of the vehicle model.
- Top reasons cited by customers for purchasing a particular model include: low price (15%); good past experience with the make (14%); and obtaining a satisfactory deal (11%).
The Germany Automotive Shopper Study is based on responses from more than 1,500 customers who purchased a new vehicle during the past year. The study was fielded in September and October 2008.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on boat ratings, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. 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 leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com/.
Media Relations Contacts:
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Syvetril Perryman
J.D. Power and Associates
Specialist, Media Relations
2625 Townsgate Road, Suite 100
Westlake Village
, CA
91361
USA
(805) 418-8103
syvetril.perryman@jdpa.com
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Felix Friedrich
J.D. Power and Associates GmbH
Consultant/Press Contact
Munich
Germany
+49-89-2880366-15
felix.friedrich@jdpa.com
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No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate # # #
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What does J.D. Power and Associates do?J.D. Power and Associates' research, consulting, and performance improvement services are used by a variety of industries to improve product quality and customer satisfaction. The firm's research is based solely on responses from millions of consumers and business customers worldwide. Product and service rankings that result from this research reflect the opinions of consumers and business customers-not the opinion of J.D. Power and Associates. Rankings are derived from nationally syndicated studies that serve as industry benchmarks for measuring and tracking quality and customer satisfaction. J.D. Power and Associates conducts the research, publicly announces the results, and then offers analysis based on consumer feedback to product and service providers to help them improve their businesses.
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