
NEW YORK: The least reliable car sold today is better quality than the most reliable car sold 15 years ago. But differences in customer satisfaction, car design, and treatment of shoppers mean some brands will be more desirable, command higher prices, and generate more repeat buyers, says Chris Denove, vice president of J.D. Power & Associates (based in Westlake Village, California). Even as differences decrease between the haves and have-nots, the impact of Internet technology proves a powerful amplifier for the remaining differences.
"Ford can't say quality is Job One," Denove said, "if thousands of people online are saying it's Job Ten." Speaking to the International Motor Press Association (IMPA) in New York City, Denove said that customer satisfaction directly affects automaker sales and even a company's market value. When the market research firm divided the automakers into three groups based on low, medium, or high customer satisfaction across its customer surveys, J.D. Power found sales declined 4 percent, on average, for automakers with the lowest satisfaction scores; increased 24 percent for those in the middle; and increased 44 percent for those with the highest satisfaction rankings.
Cars sell when they're reliable, satisfying, or attractive, and when the customer is satisfied with the buying experience. "If you don't have any of those attributes, there's only one [buyer] passion left low price," said Denove, who founded J.D. Power's Internet and Retailing practice areas and co-wrote a book due in February called "Satisfaction," about the link between customer satisfaction and company profits.
Universally popular design helps sell cars, but so can polarizing design. Based on its surveys, Power & Associates grouped models according to whether buyers liked or disliked designs and cross-compared to actual purchases. Findings showed that good design makes it easier to sell cars, polarizing design makes it easy to sell to the group that likes the design, and poor design means the car gets bought despite its design.
Universally appreciated designs included (in alphabetical order): the BMW 6 Series, Cadillac Escalade, Ford Mustang, Infiniti G35, Jaguar S-Type, Mercedes-Benz CLS, Mini Cooper, and Toyota Tundra. Polarizing cars that some loved and some hated, with little neutral ground, included the Cadillac CTS, Chrysler 300, Dodge Magnum, Infiniti FX, Mitsubishi Outlander, Plymouth PT Cruiser, and Toyota Matrix. Near-universally disliked designs included the Buick Rendezvous, Buick Park Avenue, Cadillac DeVille (the previous generation), Honda Element, Saturn Ion, Subaru Legacy, Subaru WRX, and Toyota Corolla. "The [Subaru] WRX looks like it was driven through a Pep Boys store with a magnet attached," Denove said. "Boy racers say they buy in spite of the design."
The Pontiac Aztek, until it went out of production, was a mainstay on the universally disliked list. When J.D. Power plotted good and bad design as a quadrant chart, Denove joked, "We had to move the rest of the chart over to make room for the Aztek." Part of the problem for GM and Ford, Denove says, is their dearth of vehicles with desirable or even polarizing designs, other than Cadillacs and the Ford Mustang.
Oddly, cars with high repair rates are more satisfying than zero-defects cars, when customers are treated well when they come in for service. If that sounds like a recipe for success -- well, not so fast. "Only 15 percent of the time, customers had a perfect service experience," he said.
As technology becomes a bigger component of cars, J.D. Power has begun surveying what can be one of the most satisfying or exasperating components: navigation systems. Japanese providers Alpine Electronics, Xanavi Informatics, and Denso Corp. take 13 of the top 15 spots, although one is an American car -- the Corvette.
If you're looking for a deal on a car, Denove said, consider vehicles that have high satisfaction scores but haven't caught on with the public: for example, the Chevrolet Malibu. On most measures, the Malibu equals or surpasses the Toyota Camry (except, say, sales and resale value), but because of lagging perceptions about the Malibu, it sells for about $2,000 less.