Honda Ranks Highest in Used-Vehicle Sales Satisfaction in Japan for a Second Consecutive Year

J.D. Power Asia Pacific Reports: A Large Majority of Used-Vehicle Buyers Decide on the Vehicle They Want to Purchase Prior to Visiting a Dealership

TOKYO: 28 September 2007 — For a second consecutive year, Honda ranks highest in satisfying consumers who purchase a used vehicle, according to the J.D. Power Asia Pacific 2007 Japan Used-Vehicle Sales Satisfaction Index (UVSSI) StudySM released today.

Now in its second year, the study measures used-vehicle owner satisfaction with the dealership sales and delivery process based on four factors that contribute to overall satisfaction: contract and delivery, sales personnel, vehicle purchased, and facility and display. The study also gives a detailed analysis of customer shopping behaviors prior to purchasing a vehicle, such as how they collected information; how they found a dealer; and why they chose a specific dealer.

The study finds that overall satisfaction with the sales and delivery process for the used-vehicle industry is 714 on a 1,000 point-scale in 2007—up 35 index points from 679 in 2006. When examining owner satisfaction by vehicle origin, customers who purchased their used vehicle from a domestic-branded authorized dealer have an average satisfaction score of 738, while customers who purchased from an import-branded authorized dealer report satisfaction scores averaging 756. Additionally, owners who purchased from a non-authorized dealer have the lowest satisfaction levels, averaging 696.

Among authorized dealers examined in the study, Honda ranks highest in sales satisfaction for a second consecutive year, achieving an overall satisfaction score of 756. Toyota (746) and Nissan (741) follow Honda in the rankings.

“Dealers for all three of these brands receive sales satisfaction index scores above the authorized dealer average,” said Atsushi Kawahashi, manager at J.D. Power Asia Pacific. “Honda in particular performs very well in the sales personnel factor. Efforts made by Honda dealers in product-knowledge training for their sales staff and meeting customer demands and expectations have truly paid off.”

The study also finds that 65 percent of used-vehicle owners have already decided on a particular vehicle prior to visiting the dealer. That percentage increases considerably—to 81 percent—among owners who purchased their vehicle from an import-branded dealer. Additionally, 78 percent of all used-vehicle owners report that they collected information before they visited the dealer. Among these owners, 79 percent report that they used the Internet to collect information.

While a large percentage of customers know which used vehicle they want prior to visiting the dealership, 30 percent of those who haven’t chosen a particular model still visit a dealer with a general idea of what they are looking for and how much they are willing to spend. Customers who visit a dealer with a general idea of what they are looking for have the highest overall satisfaction among used-vehicle buyers.

“Customers who come to the dealer with a general idea of what they want also tend to have much more interaction with the salesperson when compared with customers who definitely know what they want prior to visiting the dealer, and it seems that this interaction drives overall satisfaction with the used-vehicle sales process overall,” said Kawahashi. “With this finding in mind, it becomes important for dealers to understand where their potential customers are in the decision-making process in order to meet their needs and expectations. By doing this, dealers can potentially increase customer loyalty rates, which in turn strengthens the foundation of their business.”

The 2007 Japan Used-Vehicle Sales Satisfaction Index (UVSSI) Study is based on evaluations from 5,299 used-vehicle owners within the first year of ownership. The study includes owners who purchased their used-vehicles from authorized dealers (of domestic makes or imported brands) and non-authorized used-vehicle dealers. The Internet survey was conducted in July 2007.

About J.D. Power Asia Pacific
J.D. Power Asia Pacific, established in 1990, conducts customer satisfaction research and provides consulting services in the automotive, information technology and finance industries. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at http://www.jdpower.co.jp/

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional information is available at http://www.mcgraw-hill.com/.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

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Source: J.D. Power and Associates

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