Bangkok--2 Aug--J.D. Power Asia Pacific
Toyota Ranks Highest in Sales Satisfaction in Thailand
As the automotive market in Thailand begins to recover from a period of slow sales, customer satisfaction with the new-vehicle sales and delivery process has improved notably from 2009, according to the J.D. Power Asia Pacific 2010 Thailand Sales Satisfaction Index (SSI) StudySM released today.
Now in its eleventh year, the study examines seven factors that contribute to overall customer satisfaction with the purchase experience. In order of importance, they are: delivery process, salesperson, dealer facility, sales initiation, paperwork, delivery timing and deal. SSI performance is reported as an index score based on a 1,000-point scale, where a higher overall SSI score indicates greater satisfaction with the new-vehicle sales and delivery process. Overall sales satisfaction averages 884 in 2010—an improvement of 9 points from 2009.
Among the nine brands included in the study, Toyota ranks highest in customer satisfaction with new-vehicle sales with a score of 890. Toyota performs particularly well in the sales initiation, dealer facility, deal and paperwork factors. Closely following Toyota in the rankings are Isuzu (889) and Ford (888). Isuzu performs particularly well in the salesperson and delivery process factors, while Ford performs well in delivery timing.
Customer satisfaction has increased in each of the seven factors, compared with 2009, with the most noticeable improvements occurring in aspects of sales initiation, deal and paperwork, particularly for the financing process. Overall, dealerships improve most notably in providing vehicle demonstrations and a wide range of payment options in 2010, compared with 2009. In addition, satisfaction with explanations and answers to enquiries has increased in 2010, compared with 2009, in a variety of areas, including vehicle features and benefits, financing requirements, purchase documents and vehicle delivery.
A number of factors have contributed to a notable increase in new-vehicle sales in the Thailand market, including the recovering economy and consumer confidence; new fuel-efficient model launches from major makes—particularly in the compact and entry-midsize segments; and promotional campaigns, In addition, relaxation of financing requirements; the entry of new finance providers such as banks; low interest rates; and the greater consideration for customer needs by dealerships have also contributed to the improvement in sales.
The recent political unrest in Thailand has yet to impact demand in the automotive market. Demand between January and May 2010 increased by 52 percent to 278,000 units. J.D. Power forecasts that sales in 2010 will increase by 18 percent year-over-year to 630,000 units, returning to levels seen in 2007.
“After months of low demand in the automotive market, it appears that dealership personnel are maximizing sales opportunities by placing great emphasis on addressing customer enquiries thoroughly,” said Loic Pean, country manager at J.D. Power Asia Pacific, Bangkok. “In addition, the frequency of customer-reported problems and incidence of sales pressure has decreased from 2009, likely due to the strong desire of dealers to boost their close ratios.”
Despite the overall industry improvement, the proportion of customers who say they are “delighted” with the new-vehicle sales process (providing ratings of 10 on a 10-point scale) has decreased by 2 percent in 2010 from 2009. Furthermore, dealerships are consistently implementing fewer sales standards (best practices that may have a positive impact on overall satisfaction when performed) in 2010, compared with 2009.
“Overall, implementation of sales standards has had somewhat less of an impact on overall satisfaction in 2010, compared with 2009,” said Pean. “This seems to indicate that customers lowered their expectations and were more tolerant during the sales process, particularly on aspects they perceived rather as value-added or non-essential services. For instance, a salesperson’s lack of exclusive focus on the customer did not have a notable negative effect on overall satisfaction.”
The study finds that the high levels of customer satisfaction are closely related to the proportion of customers who provide positive recommendations about their vehicle brand. Among customers who say they are “delighted,” 65 percent say they “definitely would” recommend their vehicle make. However, only 47 percent of customers who say they are “pleased” (providing ratings of eight or nine on a 10-point scale), and 30 percent of customers who are “indifferent” or “disappointed” (providing ratings of five or less on a 10-point scale) say the same. The proportion of customers who said they “definitely would” recommend their vehicle make has decreased by 9 percent in 2010, compared with 2009
“The close relationship between purchase experience and positive word of mouth demonstrates the importance of not merely satisfying customers, but truly delighting them,” said Pean. “Focusing on delighting customers may have substantial positive effect on new-vehicle owner perceptions of the brand and its image.”
The 2010 Thailand SSI Study is based on responses from 3,101 new-vehicle owners who purchased their vehicles between August 2009 and March 2010. The study was fielded between February and May 2010.
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 performance analytics 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, Thailand and Vietnam. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact:
[email protected].
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
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