New Vehicle Sales Satisfaction Improves from 2010

AutoInformed.com

Calling Mini a mass market brand could be misleading since BMW owns it and transaction prices are far higher than other same size cars.

Satisfaction with the new-vehicle sales process has improved from 2010, according to a new study released today. All sales satisfaction measures improved “notably” from 2010, with the greatest increase in the delivery process, despite the fact that the average length of time to complete the delivery portion of a new-vehicle sale has increased by four minutes to an average of 32 minutes in 2011.

Overall, the average length of time a buyer spends at a dealership has increased by 11 minutes, to an average of 4.3 hours in 2011 from 4.1 hours in 2010.

The data come from the J.D. Power and Associates 2011 U.S. Sales Satisfaction Index (SSI).

The study is a look at the new-vehicle purchase experience and measures customer satisfaction with the selling dealer (satisfaction among buyers). It also measures satisfaction with brands and dealerships that were shopped, but ultimately rejected in favor of the selling brand and dealership (satisfaction among rejecters).

Among buyers, satisfaction is examined across four measures (listed in order of importance):

  1. working out the deal (17%);
  2. salesperson (13%);
  3. delivery process (11%);
  4. and dealership facility (10%).

Among rejecters, satisfaction is examined across five measures:

  1. salesperson (20%);
  2. fairness of price (12%);
  3. facility (6%);
  4. inventory (6%);
  5. experience negotiating (5%).
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Lexus ranks highest among luxury brands in satisfaction with the new-vehicle buying experience. Cadillac and Mercedes-Benz follow in the luxury-brand segment rankings.

Overall sales satisfaction averages 648 on a 1,000-point scale in 2011, improving by 13 points from an average of 635 from 2010.

Power said the reason for the lengthened delivery process is the increasing proportion of buyers who are receiving more in-depth demonstrations of technology in their new vehicle (including audio, entertainment, navigation and communications systems). About 88% of buyers in 2011 say they received a technology demonstration at vehicle delivery.

“Although technology demonstrations add time to the delivery process, those explanations substantially improve satisfaction, as well as customer loyalty and advocacy,” said Jim Gaz, director of automotive research at J.D. Power and Associates.

The 2011 U.S. Sales Satisfaction Index (SSI) Study is based on responses from 24,045 buyers who purchased or leased their new vehicle in May 2011. The study was fielded between August and October 2011.

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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