Toyota Kirloskar Motor and
Mahindra & Mahindra have ranked highest in sales satisfaction among mass
market brands in India, according to the J.D. Power Asia Pacific 2015 India
Sales Satisfaction Index (SSI) Study released recently. The two Indian companies have tied for the
top slot and have scored 872 each. Toyota performs particularly well in the
sales initiation factor and Mahindra performs highest in the paperwork factor.
The study findings show that
purchase reasons and shopping behaviour vary significantly across demographics.
A larger proportion of younger buyers (30 years and younger) place a greater
emphasis on vehicle design, performance and features as purchase criteria for
their vehicle, compared with all other age groups combined (43pc vs. 35pc,
respectively). Additionally, using the internet as a source of information for
vehicle purchase is higher among younger buyers than among all other age groups
combined (32pc vs. 26pc, respectively).
Meanwhile, as shopping traffic
for new vehicles has increased at showrooms in India, dealers have focused on
maximising sales conversions rather than providing a satisfying customer
purchase experience, according to JD Power Study. Now in its 16th year, the
study examines seven factors that contribute to new-vehicle owners’ overall
satisfaction with their sales experience (listed in order of importance):
delivery process, delivery timing, salesperson, sales initiation, dealer
facility, paperwork and deal. Satisfaction is calculated on a 1,000-point
Overall sales satisfaction in
the mass market segment is 851, a 6 point decline from 2014. Nearly one in five
(18pc) customers is dissatisfied with several critical aspects of the purchase
process, including negotiations for their new vehicle, delivery commitments and
the overall delivery process.
“Intense competition and
pressure to maximise sales conversions has shifted focus from a
customer-centric approach to a sales-driven approach for dealers, impacting
customer satisfaction,” said Mohit Arora, executive director, J.D. Power Asia
Pacific, Singapore. “Original equipment manufacturers (OEMs) and dealerships
need to provide a pressure-free environment that is conducive to sales, which
can lead to a positive and lasting impression of the brand and dealerships in
the minds of customers,” he added.
findings of the study are:
• Satisfaction with the
delivery process and delivery timing declines the most year over year, dropping
by 9 points in each factor.
• The average time for vehicle
delivery has increased to 11 days after booking in 2015 from 9 days in 2014.
Shoppers expect to be shown the same model variant that they intend to
purchase. Currently, non-compliance on this aspect of the purchase process is
16 pc in the market in India, resulting in a 40-point decline in overall
• More than one-third (39pc)
of new-vehicle owners visited showrooms at least three times during their
shopping process, up by 4 pc from 2014. Satisfaction among these owners is 25
points lower than among those who visited showrooms two or fewer times.
• Among new-vehicle owners who
are highly satisfied with their purchase experience (sales satisfaction scores
922 and above), 82 pc say they “definitely will” recommend their purchase
dealer to family and friends and 74 percent say they “definitely will” purchase
the same vehicle make in the future. Conversely, only 41 pc of highly
dissatisfied owners (scores 801 and below) say they “definitely will” recommend
their purchase dealer to family and friends and 37 pc say they “definitely
will” repurchase the same brand.
The 2015 India Sales Satisfaction Index (SSI)
Study is based on responses from more than 7,895 new-vehicle owners who
purchased their vehicle between September 2014 and April 2015, and includes
evaluations of more than 75 models
Source: JD Power