New vehicle sales satisfaction improves in the Philippines

New vehicle sales satisfaction improves in the Philippines image

Text: / Photos: J.D. Power Asia Pacific Press | posted September 04, 2012 13:10

Customer satisfaction with new vehicle sales improves for second consecutive year

As domestic sales of new passenger vehicles in the Philippines continues to grow, customer satisfaction with the new-vehicle sales and delivery process has improved for a second consecutive year, according to the J.D. Power Asia Pacific 2012 Philippines Sales Satisfaction Index (SSI) Study released today.

Customer satisfaction has increased from 2011 across all factors, with the largest improvements in delivery timing (+33 index points) and salesperson (+27 index points). In addition, overall satisfaction for all 10 brands included in the study has increased by double digits in 2012.

“As the market recovers from supply issues caused by the floods in Thailand in 2011, dealers in the Philippines are putting more efforts on customer satisfaction and in meeting customer needs,” said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore.

Now in its 12th year, the study examines seven factors that contribute to overall customer satisfaction with the purchase experience. In order of importance, they are: delivery process; delivery timing; salesperson; paperwork; deal; sales initiation; and dealer facility.

SSI performance is reported as an index score based on a 1,000 point scale, and a higher overall score indicates greater satisfaction with the new-vehicle sales and delivery process. Overall sales satisfaction averages 855 in 2012—an improvement of 26 points from 2011.

Honda ranks highest in new-vehicle sales satisfaction with a score of 862 and performs particularly well in the paperwork, salesperson and delivery timing factors. Closely following Honda in rankings are Hyundai (861), Kia (860) and Ford and Toyota in a tie (857 each). Hyundai performs particularly well in the deal factor, while Kia performs particularly well in sales initiation and delivery process and Ford performs well in dealer facility.


The study finds that high levels of satisfaction translate into higher levels of repurchase intent and brand loyalty. Among customers who say they are “delighted” with the sales process for their new vehicle (providing a rating of 10 on a 10-point scale), 44 percent say they “definitely would” repurchase the same make, compared with 11 percent of customers who are disappointed” with the sales process (ratings of five points or lower) say the same.

“The challenge for dealers is to focus on long-term satisfaction and loyalty, as 67 percent of new-vehicle owners in 2012 is first-time buyers in the Philippines,” said Arora.

The 2012 Philippines SSI Study is based on responses from 1,505 new-vehicle owners who purchased their vehicle between August 2011 and April 2012. The study was fielded from February to June 2012.