SINGAPORE: 30 July 2019 — While overall customer satisfaction with new vehicle purchase and delivery experience in the mass market segment is on the rise, the luxury segment, while high, has largely stayed the same, according to the J.D. Power 2019 Taiwan Sales Satisfaction Index (SSI) StudySM, released today.
Overall satisfaction for the mass market segment is 819 (on a 1,000-point scale), an increase of 17 points from 2018, and 832 for the luxury segment, a decrease of 3 points from last year.
The increase in satisfaction among mass market customers is partially attributed to improvement of in-store amenities, not just for increased customer comfort but to make the sales experience more engaging. In 2019, there has been a rise in dealerships offering free Wi-Fi (up 9 percentage points from 2018); complimentary snacks (up 6 percentage points); touchscreens to view vehicle models (up 4 percentage points); and counter/viewing area for accessories (up 7 percentage points).
“While luxury brands are lowering their threshold with entry-level models, mass market brands are also launching new cars with advanced features,” said Anthony Tay,Territory Manager, Taiwan at J.D. Power. “With mass market brands gaining momentum, luxury brands cannot afford to just maintain the status quo—evidenced by the stagnant satisfaction scores—as customers are becoming more discerning and are expecting a differentiated and more engaging experience.”
The study finds that more dealerships of luxury brands are offering a signed formal offer and finalising the price in a larger private office thus outperforming their mass market counterparts by providing a better closing experience. However, sales consultants for mass market brands perform better than their luxury counterparts when it comes to not pushing for a sale (70% vs 63%, respectively) and providing a straight answer to their customers on the vehicle price (86% vs 82%, respectively).
Following are additional key findings of the 2019 study:
- Differences in buyer needs: Performance, interior and exterior styling remain the key purchase reasons cited across all segments. However, buyers of import mass market models are mirroring the luxury segment by placing higher emphasis on vehicle image (33% for domestically produced mass market; 41% for import mass market; 58% for luxury).
- Going the extra mile pays off: Customers who received additional follow-up explanation of vehicle features are more satisfied than those who did not receive an explanation (+38 points for mass market, +120 points for luxury). Customers with whom dealers shared fuel efficiency tips are also more satisfied (+70 points for mass market, +106 points for luxury).
Hyundai ranks highest among the mass market brands, with an overall score of 831. Nissan ranks second with a score of 827 and Volkswagen ranks third with a score of 824.
Mercedes-Benz ranks highest among the luxury brands, with an overall score of 856. Lexus ranks second with a score of 819 and BMW ranks third with a score of 816.
The J.D. Power 2019 Taiwan Sales Satisfaction Index (SSI) StudySM is a comprehensive analysis of the new-vehicle purchase and delivery experience. The study is based on responses from 2,574 mass market segment new-vehicle buyers and 816 luxury segment new-vehicle buyers who purchased their vehicle between July 2018 and March 2019 and was fielded from January through May 2019.
Now in its 21st year, the study examines five factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are sales consultant (26%); dealer facility (22%); delivery process (21%); working out the deal (18%); and paperwork completion (13%).
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.
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