J.D. Power Releases Customer Satisfaction Results

November 14, 2007

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WESTLAKE VILLAGE, Calif. — J.D. Power and Associates released its yearly Sales Satisfaction Index Study on Wednesday. Ranking at the top for customer satisfaction was Lexus.

The analysis is broken down by five factors: dealership facility, salesperson, paperwork/finance process, delivery and price. Lexus scored 897 out of 1,000, improving 10 points from last year.

"Lexus improves by four rank positions from 2006, which is a gain driven primarily by increased customer delight with the dealership facility, salesperson performance and vehicle price," explained tom Gauer, senior director of automotive retail research for J.D. Power.

"For example, Lexus salespeople show particular concern for helping people with their budgets, choosing the right vehicle for their needs, as well as for making the negotiation process clear and understandable," he added.

Hummer was second-highest at 895, as it inclined 21 points on the year, followed by Jaguar, Lincoln and Mercedes-Benz.

Officials note that the industry itself is improving. The average score for all brands was 852, a seven-point improvement from the previous year.

The company went on to note that 44 percent of new-vehicle customers spent more than intended. And those who ended up spending more than originally anticipated tended to report lower customer satisfaction. In fact, on average, customer satisfaction for this group was 67 points less.

"While all new-vehicle buyers hope to get a good deal, customers are receptive to spending more than they originally budgeted provided that the salesperson does a good job of educating the customer about the features and benefits they are receiving," explained Gauer.

"Customers are looking to the salesperson to help them buy a vehicle that fits their budget, but they are certainly open to spending more if the salesperson can successfully convey the value of the vehicle," Gauer added.

Additionally, the study found that when consumer experience was higher than expected it can be indicative that the customer is likely to return (61 percent). On the other hand, when consumer experience simply met expectations (37 percent), the customer is less likely to return.

The study was based on reports from 38,654 consumers registering purchases in May 2007, the company noted.

For more information, visit www.jdpower.com.

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