J.D. Power Asia Pacific Reports: A Highly Satisfying Experience with New Vehicle Tires Drives High Repurchase Rate for the Same Brand of Tire
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1 J.D. Power Asia Pacific Reports: A Highly Satisfying Experience with New Vehicle Tires Drives High Repurchase Rate for the Same Brand of Tire Pirelli Ranks Highest in New Vehicle Tire Customer Satisfaction in China SHANGHAI: 26 September 2013 Vehicle owners who are highly satisfied with the tires equipped on their new vehicles are likely to repurchase the same brand when replacing their tires, according to the J.D. Power Asia Pacific 2013 China New Vehicle Tire Satisfaction Index (NVTSI) Study SM released today. The study measures satisfaction among new vehicle tire owners during the first 12 to 24 months of ownership based on four factors: appearance; durability; ride; and traction/handling. The brand ranks are based on consumer experiences with the brand of tires they report having on their vehicle. The study finds that high customer satisfaction with tire on their new vehicle equates to more after-sales business for dealers. When owners are satisfied with their new vehicle tires, they are more likely to repurchase the same tire brand in the future, compared with when they are less satisfied with their new vehicle tires. Among owners who are highly satisfied (795 points and higher), 47 percent say they definitely would choose their current tire brand when replacing their tires. When overall satisfaction is low (749 points or less), only 27 percent of owners say they definitely would repurchase the same brand of tire. Overall customer satisfaction with new vehicle tires averages 779 points on a 1,000-point scale. Of the four factors examined in the study, satisfaction is highest in appearance (793), followed by durability (786). Satisfaction is lowest in traction/handling (766). The study shows that satisfaction drops significantly when owners experience problems with their new vehicle tires. Satisfaction averages 782 among owners who experience one tire problem; however, satisfaction declines to 753 among those who experience two problems and to 690 among those who experience four problems. Approximately 30 percent of owners experience damage to their tires in 2013, with punctures topping the list of 19 problems examined in the study. Stones getting caught in the tread is the second-most-frequently experienced problem, followed by road hazard damage. Tires are one of the most frequently replaced components on vehicles, said Dr. Mei Songlin, vice president and managing director, J.D. Power China, Shanghai. Although consumers don t have a choice with the new vehicle tires on the point of car delivery, they have a wide range of choice when replacing them. Therefore, a superior customer experience with the first tires may have a positive impact on their decision with replacement tires. (Page 1 of 3)
2 Pirelli ranks highest in customer satisfaction among the 19 tire brands examined in the study, with a score of 861. Pirelli performs particularly well in all factors. Michelin ranks second (822), followed by Goodyear (811), Dunlop (809) and Bridgestone (808). The study finds that the satisfaction is highest among vehicle owners in the East (787) and North (785) regions of China, while satisfaction is lowest among those in the West (769) and South (766) regions. The study is based on responses from 10,834 new-vehicle owners, who purchased their vehicle between February 2011 and May The study was fielded between February and May 2013 in 43 major cities in China, and includes 206 vehicle models. The China New Vehicle Tire Satisfaction Index Study is one of eight consumer-based benchmark studies conducted by J.D. Power Asia Pacific in China. Other 2013 automotive-related studies conducted in China include: The China Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in late June. The China Customer Service Index (CSI) Study, which examines satisfaction with the after-sales service experience among vehicle owners between 12 and 24 months of ownership, was released in late July. The China New-Vehicle Intender Study (NVIS), which examines customers pre-purchase perceptions and considerations, was released in late August. The China Automotive Brand Website Evaluation Study (BWES), which measures the effectiveness of brand websites on the basis of the Voice of the Customer, was released in mid-september. The China Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to six months of ownership, will be released in October. The China Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle s performance and design during the first two to six months of ownership, will be released in November. The China Vehicle Dependability Study (VDS), which evaluates overall vehicle dependability during the first months of ownership, will be released in December. About J.D. Power Asia Pacific J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, Australia, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at Media contact: ellen_wang@jdpa.com. Please follow J.D. Power at About J.D. Power J.D. Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., J.D. Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power is a business unit of McGraw Hill Financial.
3 (Page 2 of 3) About McGraw Hill Financial McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company's iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at Media Relations Contacts Ellen Wang; Public Relation Supervisor; J.D. Power Asia Pacific; Shanghai, China; ; ellen_wang@jdpa.com John Tews; Director, Media Relations; J.D. Power; Troy, Michigan USA; ; john.tews@jdpa.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. # # # (Page 3 of 3) Note: Two charts follow.
4 J.D. Power Asia Pacific 2013 China New Vehicle Tire Satisfaction Index (NVTSI) Study SM Customer Satisfaction Index Ranking above Industry Average (Based on a 1,000-point scale) Pirelli 861 Michelin 822 Goodyear 811 Dunlop 809 Bridgestone 808 Yokohama 807 Continental 798 Maxxis 788 Hankook 781 Industry Average 779 Source: J.D. Power Asia Pacific 2013 China New Vehicle Tire Satisfaction Index (NVTSI) Study SM Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power Asia Pacific as the publisher and the J.D. Power Asia Pacific 2013 China New Vehicle Tire Satisfaction Index (NVTSI) Study SM as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power Asia Pacific study results without the express prior written consent of J.D. Power Asia Pacific.
5 J.D. Power Asia Pacific 2013 China New Vehicle Tire Satisfaction Index (NVTSI) Study SM Factors Contributing to Overall Satisfaction Traction/Handling 21% Appearance 29% Ride 23% Durability 26% Note: Percentages may not total 100 percent due to rounding. Source: J.D. Power Asia Pacific 2013 China New Vehicle Tire Satisfaction Index (NVTSI) Study SM Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power Asia Pacific as the publisher and the J.D. Power Asia Pacific 2013 China New Vehicle Tire Satisfaction Index (NVTSI) Study SM as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power Asia Pacific study results without the express prior written consent of J.D. Power Asia Pacific.
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