Filipino car buyers were most satisfied with the local dealerships of Toyota and Ford, due to a large degree to the quality of service provided by their sales staff, according to the findings of an international market research firm.
At the same time, J.D. Power Asia Pacific’s 2014 Philippine Sales Satisfaction Index showed that the broader level of satisfaction with the knowledge of dealer sales staff and the attention they provided during the shopping experience improved among Filipino new-vehicle buyers.
According to the survey, Toyota ranked highest in new-vehicle sales satisfaction in the Philippines with a score of 860.
“Toyota performed particularly well in the delivery process, delivery timing, salesperson, paperwork, deal and dealer facility factors,” J.D. Power said in a statement. “Ford ranks second at 855.”
Based on a 1,000-point scale, the Philippine vehicle industry had an average satisfaction rating with customers of 847. Only Toyota and Ford scored above this average.
New-car buyers rated buying from Hyundai and the third most satisfying experience at 842 points, followed by Suzuki (839), Mitsubishi (838), Isuzu (834), Honda (832), Kia (829) and Nissan (829).
“With new-vehicle sales in the Philippines increasing by 25 percent in 2014 compared with 2013, sales are at record levels,” said J.D. Power Asia Pacific senior manager Loic Pean. “Capitalizing on the current sales trend, dealerships with dedicated sales representatives who deliver exemplary purchase experiences can greatly benefit from positive word of mouth as 80 percent of customers rely on recommendations from friends and relatives.”
Ninety-five percent of new-vehicle buyers indicated that attending salespersons asked about their vehicle usage and needs and offered test drives. Both activities have notable impacts on satisfaction.
Overall satisfaction among first-time new-vehicle buyers—who comprised 68 percent of the market in 2014—is 844, compared with 854 among repeat buyers, narrowing the gap in satisfaction between first-time and repeat buyers to 10 points in 2014 from 17 points in 2013.
Eighty-eight percent of new-vehicle buyers pre-determine their target purchase model prior to visiting the dealership in 2014, compared with only 84 percent 2013, the survey said.
A third of buyers visited dealerships other than the one from which they ultimately purchased their vehicles. However, 76 percent visited their purchase dealer two or more times before buying a vehicle.
During the delivery process, respondents noted that salespersons improved at explaining vehicle safety, how other features worked, warranty coverage and maintenance schedules.
However, despite an increase in the percentage (85 percent) of owners who negotiated the price of their new vehicle in 2014—up 14 percentage points from 2013—14 percent indicated that they paid more than they expected.
Meanwhile, 74 percent of new-vehicle buyers received discounts when they purchased their vehicle, and 84 percent said they enjoyed the negotiation process.
Overall satisfaction with the sales process improves to 847 in 2014, from 846 in 2013. Satisfaction with salespersons also gained year over year (858 versus 851, respectively), driven primarily by staff knowledge of new-vehicle models and ability to answer customers’ questions.
In 2014, 93 percent of salespersons offered customers loan options, up from 79 percent in 2013, with 90 percent offering a choice of finance provider, an increase from 78 percent in 2013. However, despite the increase in the percentage of salespersons providing finance options, 22 percent of new-vehicle buyers paid cash for their vehicles.
“Internet usage and information sharing on blogs, forums or social networking sites have increased, with 20 percent of new-vehicle buyers posting details of their purchase experience on such sites,” Pean added. “It is, therefore, essential for dealers to focus on customer satisfaction.”
The study is based on responses from 1,484 new-vehicle owners who purchased vehicles between August 2013 and April 2014. The study was fielded from February to June 2014.