Personal Attention during Luxury-Vehicle Purchase Process Drives Satisfaction in India
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BMW Ranks Highest in Sales Satisfaction among Luxury Brands
SINGAPORE: 9 Dec. 2016— Luxury-vehicle owners in India expect their dealerships to engage in personalized interaction, according to the J.D. Power 2016 India Sales Satisfaction Index (SSI) StudySM luxury segment, released today.
Undertaking certain activities—such as understanding a customer’s vehicle needs, providing an explanation of the features and their benefits, and providing proactive status updates regarding delivery of their new car—drive satisfaction among luxury-vehicle owners. Performing these activities improves overall satisfaction by 91 points (to 910 on a 1,000-point scale), compared with when they are not performed.
“Luxury-vehicle owners in India are from the highest socio-economic strata of the country,” said Mohit Arora, executive director at J.D. Power, Singapore. “Hence, they look for a significant amount of personalized attention during the purchase process. Dealerships that are able to deliver on such demands will assist in enhancing the manufacturer’s brand image as well as their own reputation in this competitive market environment.”
Following are additional key findings of the study:
- Luxury Shoppers Are Decisive: 78% of luxury-vehicle owners knew the exact model they wanted to purchase. Nearly three-fourths (72%) of these owners cite brand reputation, vehicle quality and design as the key purchase reasons.
- Dealerships Focus on Process: 85% of luxury-car owners received all the process-related sales standards, which range from the pre-sale stage—such as offering a test drive—to the post-sales stage, such as offering to set up a service visit.
- Dealerships Lag on Communications: Only 43% of customers were offered all communication standards, among whom satisfaction is 49 points higher than among those who did not receive all these standards.
- Problems during Purchase Process Hurt Satisfaction: These problems include limited vehicle stock, payment issues and salesperson-related issues. Satisfaction among owners who experienced such problems is 89 points lower, on average, than among those who did not experience any problems.
BMW ranks highest in sales satisfaction in the luxury-vehicle market with a score of 915. BMW performs particularly well in the delivery process and sales initiation factors. Mercedes-Benz ranks second at 903.
About the Study
The 2016 India SSI Study luxury segment examines six factors that contribute to overall customer satisfaction with their new-vehicle purchase experience in the luxury market. In order of their effect on overall sales satisfaction, those factors are sales initiation (17%); dealer facility (17%); deal & paperwork (17%); delivery timing (17%); salesperson (16%); and delivery process (16%). Sales satisfaction performance is reported as an index score based on a 1,000-point scale, with a higher score indicating greater satisfaction with the new-vehicle sales and delivery processes. Overall satisfaction for luxury brands averages 896 points in 2016.
The study is based on responses from 233 new-vehicle owners who purchased their vehicle between September 2015 and April 2016. The study was fielded from March through October 2016.
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About J.D. Power in the Asia Pacific Region
J.D. Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power and its products can be accessed through the internet at asean-oceania.jdpower.com.
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 The India Sales Satisfaction Index Study has been redesigned in 2016 to capture the changes in trends in the automotive industry, as well as to better reflect the shifts in consumer preferences. Due to the study redesign, the SSI scores for the 2016 study cannot be compared with index scores from previous years.