Honda Ranks Highest in Vehicle Ownership Satisfaction in NZ

Media release: Honda Ranks Highest in Vehicle Ownership Satisfaction in New Zealand

SINGAPORE: 8 December 2010

Vehicle quality, reliability and appeal, as well as dealer service are critically important to overall satisfaction with the vehicle ownership experience, which has a strong impact on brand loyalty, according to the AA JD Power Asia Pacific 2010 New Zealand Vehicle Ownership StudySM (VOSS) released today.

Overall satisfaction is based on owner experiences in four factors: vehicle quality and reliability; vehicle appeal (which measures satisfaction with the vehicle’s design, style, performance and comfort); ownership costs; and service satisfaction. Overall customer satisfaction is measured on a 1,000-point scale, with a higher score indicating higher satisfaction.

The study finds that product-related factors, including vehicle appeal and vehicle quality and reliability, account for 62 percent of overall vehicle ownership satisfaction. Satisfaction with vehicle appeal and quality has a strong effect on customer loyalty. Among owners who are highly satisfied with vehicle appeal and quality (scores averaging 850 and higher) 57 percent indicate they “definitely will” repurchase the same vehicle brand, compared with the industry average of 27 percent.

In addition, satisfaction with dealership service also is an important driver of owner loyalty. On average, 61 percent of vehicle owners say they “definitely will” consider using the same dealership again for paid service that is not covered under warranty. However, among owners who are highly satisfied with dealer service (scores averaging 850 and higher), nearly nine in ten owners say the same.

Honda ranks highest in new-vehicle ownership satisfaction with a score of 772. Volkswagen, Mazda, Kia and Mitsubishi, respectively, follow Honda in the rankings.

Overall satisfaction among new-vehicle owners in New Zealand has declined to an average of 752 in 2010—down 17 points from 2009. In addition, overall quality has declined from 2009, to an average of 159 problems per 100 vehicles (PP100) in 2010, from 156 PP100 in 2009. Problems are summarized as the number of owner-reported problems per 100 vehicles, with lower scores indicating a lower rate of problem incidences and higher quality.

“The increase in the number of problems experienced by vehicle owners as well as a decrease in satisfaction with ownership cost have offset the efforts made by the industry to improve on service satisfaction,” said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore.

The study finds that the number of problems experienced with vehicles has a considerable impact on owner satisfaction with vehicle appeal, particularly with engines and transmissions. Among owners who indicate that they did not experience any problems with their vehicle, vehicle appeal scores average 139 index points higher than among those who experience one or more problems with their vehicle. This gap increases to 168 index points when the problem occurs with the vehicle’s engine or transmission.

“The importance of product-related factors in the overall ownership vehicle satisfaction, combined with the considerable negative impact of problems, help to emphasize how critical it is for manufacturers to deliver high-quality, problem-free vehicles to new owners,” said Arora.

The study finds that dealerships that provide highly satisfying service may also generate higher levels of loyalty toward the vehicle brand. Among owners who are highly satisfied with their authorized dealer service experience (scores averaging 850 or higher), 52 percent say they “definitely will” repurchase the same make. In contrast, among owners who indicate they were highly satisfied with a service experience conducted by an independent dealer, only 28 percent say the same. The study also finds that contacting vehicle owners to check that service work was performed to their satisfaction has a considerable positive impact on overall satisfaction with dealership service.

“Engaging in customer relationship-building activities, such as after-service follow-up contact, is key for manufacturers and their dealership networks to ensure long-term loyalty towards the brand,” said Arora.

The 2010 New Zealand Vehicle Ownership Satisfaction Study serves as a benchmark in measuring customer attitudes and expectations in the market. Now in its fifth year, the study, which is conducted in association with the New Zealand Automobile Association (NZAA), is based on responses from 3,001 new-vehicle owners and 8,345 used-vehicle owners. The study was fielded during the month of September 2010.

ENDS

© Scoop Media