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Needs of Many Not Outweighing Few; First-Time Vehicle Buyers Less Satisfied, J.D. Power Finds

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Honda Ranks Highest in Philippines Sales Satisfaction

SINGAPORE: 31 July 2019 — While first-time buyers make up 79% of the new-vehicle buyers, they are less satisfied than repeat buyers, according to the J.D. Power 2019 Philippines Sales Satisfaction Index (SSI) StudySM, released today. The study finds that first-time buyers have an overall satisfaction of 815 (on a 1,000-point scale) with the new-vehicle sales experience, while satisfaction of repeat buyers (those either replacing or buying an additional vehicle) is 837.

The difference in satisfaction between first-time and repeat buyers is most apparent in areas relating to working out details of the deal and paperwork completion. Informal modes of presenting the price, such as handwritten figures, are used more often with first-time buyers (72%) than repeat buyers (44%). Overall, customers who are presented with a signed formal offer have higher satisfaction than those not given one (838 vs. 811, respectively).

“Getting your first car is an exciting experience but not an easy decision to make,” said Sigfred M. Doloroso, Country Manager, Philippines J.D. Power. “Dealers can add value by not only making sure that customers get the right car for the best price, but also spending the time to celebrate this first new purchase. This can be made possible through better understanding the customers’ profile, needs and preferences.”

The study finds that when it comes to delivering the new vehicle, sales outlets are less likely to provide first-time buyers with a special ceremony compared with repeat buyers (66% vs. 73%, respectively). Furthermore, first-time buyers (33%) are also less likely to compare prices across dealerships than repeat buyers (51%), and more first-time buyers (81%) are financing their new vehicle purchase with a loan than repeat buyers (69%). This highlights the need for dealers to take more time to guide, advise and help new customers get the best deal possible.

Following are additional key findings of the 2019 study:

  • Digital tools to demonstrate vehicles features: Sales consultants are using digital devices more extensively to demonstrate vehicle features during the vehicle selection process (59% vs 50% in 2018). Satisfaction is 22 points higher among customers who experienced this.
  • Using background information an asset: Customers finding the dealer to be “very effective” in using information provided prior to visiting the dealership increases to 79% in 2019 from 72% in 2018. These customers have a satisfaction level that’s 29 points higher than those who found the dealer’s use of information only “somewhat effective.”
  • Exact model/variant not always available: Only 9% of customers indicate that the exact model/variant they were interested in was not available at the dealership. There is 24-point gap in satisfaction between customers who found the exact model versus those who did not.

Study Rankings

Honda ranks highest in overall sales satisfaction with a score of 832. Mitsubishi ranks second with a score of 829 and Toyota ranks third with a score of 823.

The J.D. Power 2019 Philippines Sales Satisfaction Index (SSI) StudySM is a comprehensive analysis of the new vehicle purchase and delivery experience. The study is based on responses from 1830 new vehicle owners who purchased their vehicle between July 2018 and April 2019 and was fielded between January and June 2019.

Now in its 19th year, the study examines six factors that contribute to overall customer satisfaction with the new vehicle purchase experience. In order of importance, they are sales consultant; dealer facility; delivery process; paperwork completion; working out the deal; and dealer website.

The study also includes the Net Promoter Score® (NPS)[1], which measures new vehicle owners’ likelihood to recommend their vehicle brand on a 0-10 point-scale.

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.

Media Relations Contacts

Shahilia Bhagat; J.D. Power; Singapore; 65-3165-0120; shahilia.bhagat@jdpa.com

Geno Effler; J.D. Power; Costa Mesa, Calif., USA; 001-714-621-6224; media.relations@jdpa.com

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info


[1] Net Promoter, ® Net Promoter System, ® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

Media Contacts

Geno Effler

Costa Mesa, California
(714) 621-6224
media.relations@jdpa.com