Service Cost Estimate and Explanation are Important To the After-Sales Service Experience in Taiwan

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Lexus Ranks Highest in Customer Satisfaction with Authorized Dealer After-Sales Service for 15 Consecutive Year



SINGAPORE: 30 September 2013 Customers in Taiwan expect to receive an initial estimate of the service charges when they drop off their vehicle for service and an explanation of the charges after the service is completed, according to the J.D. Power Asia Pacific 2013 Taiwan Customer Service Index (CSI) Study SM released today.

The study, now in its 16th year, measures satisfaction among vehicle owners who visited their authorized dealership service center for maintenance or repair work during the first 12 to 24 months of ownership. The study examines five factors to determine overall satisfaction with dealer service (in order of importance): service quality; service initiation; vehicle pick-up; service advisor; and service facility. Dealership service performance is reported as an index score based on a 1,000-point scale, with a higher score indicating higher customer satisfaction.

In this video, we tackled the following issues:

  • Chapter one: Drivers of improvements in the industry
  • Chapter two: Impact of staying in Service Centers on Satisfaction scores
  • Chapter three: Performance of the Highest Ranked Nameplate
  • Chapter four: Service Appointment Process

Overall customer satisfaction averages 873 in 2013, a 25-point improvement from 2012. Across the industry, satisfaction has increased year over year in all factors, particularly in vehicle pick-up, service initiation, service advisor and service facility (+26 points each). Satisfaction scores for all nameplates have also improved, compared with 2012.

Satisfaction among customers who indicate they received a thorough explanation of cost before the service in the form of a cost estimate and a post-service explanation of the final charges averages 875. In contrast, satisfaction among customers who indicate they received only a cost estimate or a post-service explanation averages 844.

"Customers are value-conscious and expect the dealership to be accurate and transparent on service costs," said Rajeev Nair, director at J.D. Power Asia Pacific, Singapore. "Dealerships that go the extra mile in assuring customers that they are fair and honest by managing service cost expectations and explaining all of the work performed are well-positioned to build customer trust."

The study also finds that 69 percent of customers wait at the service center while their vehicle is being serviced, up from 63 percent in 2012. Satisfaction among customers who wait at the dealership averages 880, which is 23 points higher than among customers who leave the dealership after dropping off their vehicle and return later to pick it up. Customers who wait at the dealership are more satisfied with service advisor and service facility.

"As service times become shorter, there is a gradual increase in the proportion of customers staying at the dealership during service," said Nair. "Ensuring that customer lounges are well maintained, and have such amenities as TV, refreshments and Internet access, can strongly support dealerships in making the customers' stay comfortable. Internet access is becoming widely available, as reported by nearly three-fourths (77 percent) of customers."

Satisfaction with dealer service tends to lead to advocacy and loyalty intentions toward their dealership and vehicle brand. Among owners who are highly satisfied with their service experience at the dealership (CSI scores averaging 931 and above), 50 percent say they "definitely would" revisit their service dealer for post-warranty service. In contrast, only 23 percent of less-satisfied owners (CSI scores averaging 828 and below) say the same. Similarly, 46 percent of highly satisfied owners "definitely would" recommend their make to friends and relatives, compared with only 22 percent of those who are less satisfied.

"With new-vehicle sales flat in 2013, automakers are looking at ways to further strengthen the service side of their business," said Nair. "The service advisor is the face of the dealership and the brand for customers and plays a critical role in satisfaction."

Nair noted that the service advisor's initiatives to engage customers, paying time and attention to their needs, providing explanations and advice, and keeping them updated of the service progress help customers feel that the dealership values the relationship with them, which in turn contributes to increased loyalty and advocacy.

Among the 15 nameplates included in the study, Lexus ranks highest in overall customer satisfaction for the 15th consecutive year, with a score of 909. Lexus performs particularly well in all five factors. Following Lexus in the rankings are Mercedes-Benz (903), Audi (897), BMW (894) and Volvo (886).

The 2013 Taiwan Customer Service Index (CSI) Study is based on responses from 3,118 vehicle owners who received delivery of their new vehicle between March 2011 and June 2012 and took their vehicle for service to an authorized dealer or service center between September 2012 and June 2013. The study was fielded between March and June 2013.

About J.D. Power Asia Pacific

J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: xingti_liu@jdpower.com.sg

About J.D. Power

J.D. Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., J.D. Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power is a business unit of McGraw-Hill Financial.

About McGraw Hill Financial

McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company's iconic brands include: Standard & Poorís Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

Media Relations Contacts:

XingTi Liu; J.D. Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; xingti_liu@jdpower.com.sg

John Tews; J.D. Power; Troy, Mich.; (248) 680-6218; media.relations@jdpa.com

Follow us on Twitter: @JDPower

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. www.jdpower.com/corporate

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