Across All Brands, New-Vehicle Shoppers Visit and Reject Four Automotive Dealers before Making a Purchase
SÃO PAULO: 29 May 2014 — Hyundai-CAOA and Toyota tie for the highest-ranked brand among automotive manufacturers in Brazil, according to the J.D. Power 2014 Brazil Sales Satisfaction Index (SSI) StudySM released today.
The study, now in its second year, is a comprehensive analysis of the new-vehicle purchase experience and explores customer satisfaction with the selling dealer by examining five measures (listed in order of importance): working out the deal (29%); delivery process (22%); test drive (18%), added in 2014; salesperson (16%); and dealership facility (16%).
Five Highest-Ranked Brands
Hyundai-CAOA (787 on a 1,000-point scale) performs particularly well in dealership facility, working out the deal and delivery process, while Toyota (787) performs particularly well in salesperson, working out the deal, delivery process and test drive. Ranking third are Citroën and Hyundai-HMB in a tie (776 each), followed by Nissan (769). Overall sales satisfaction averages 754.
Sales Process Is Increasingly Important
Amid general economic uncertainty in Brazil, the passenger-vehicle market is expected to stay flat in 2014. Simultaneously, consumers in Brazil have more choice than ever in terms of vehicle brands, vehicle models and automotive dealerships. As a result, new-vehicle shoppers have become very selective, and improving sales satisfaction is increasingly important. Across all brands, shoppers visit and reject four automotive dealerships, on average, prior to making a purchase.
“Given the market conditions in Brazil, sales satisfaction has become an extremely important competitive differentiator,” said Jon Sederstrom, country manager, J.D. Power do Brasil. “The sales experience is critical in the short-term to maintain market share. We also know through our automotive syndicated studies that providing a satisfying sales experience typically leads to higher levels of brand loyalty, drives recommendations to purchase and influences shoppers to return to the dealer for service in the medium- and long-term—all of which have an impact on a dealer’s ROI.”
Among new-vehicle shoppers who indicate their buying experience is outstanding (overall satisfaction rating of 10 on a 10-point scale), 71 percent say they “definitely will” return to the dealership for paid services, 57 percent “definitely will” purchase the same make vehicle in the future, and 63 percent “definitely will” purchase a vehicle from the same dealership.
- More than one-third (35%) of new-vehicle shoppers indicate that they had entered purchase negotiations on a vehicle before rejecting the dealer. Key rejection reasons cited among these shoppers relate to dealer staff, including the dealer did not provide a straight answer about the best price for the vehicle (27%); the dealer was unable to provide adequate financing (26%); and the dealer staff applied too much pressure/too pushy (24%).
- Among shoppers who stayed and purchased a new vehicle, 43 percent indicate having had at least one problem during their final negotiation and the paperwork process, which is nearly twice as high as new-vehicle shoppers in the U.S. market facing similar problems at a dealership (23%).
- Working out the details (finalizing the paperwork) is one of the highest-weighted measures of overall satisfaction in the study, and closing the deal properly is critical. For example, satisfaction is more than 80 points higher among new-vehicle shoppers who experience no paperwork problems (769) than among those who have to return to the dealer due to paperwork problems (688).
According to Sederstrom, “Dealers need to identify and eliminate any step in the sales process that might cause a shopper to reject them, from model selection and pricing to final paperwork. If the dealer staff can meet the needs of the shopper and retain their interest once they enter the dealership, the shopper is more likely to continue with the same dealer until the purchase process is complete.”
The 2014 Brazil Sales Satisfaction Index Study is based on the evaluations of more than 3,400 online interviews with Brazilian new-vehicle owners one to seven months after purchase. The study was fielded in March and April 2014.
About J.D. Power do Brasil
Established in São Paulo in 2010, J.D. Power do Brasil conducts customer satisfaction research and provides market intelligence and consulting services for the automotive industry—manufacturers and dealers. Information regarding J.D. Power do Brasil and its products can be accessed through the Internet at http://brasil.jdpower.com./
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