Nissan ranked highest in customer satisfaction with authorized dealer service in Malaysia, according to the 5th J.D. Power Asia Pacific 2007 Malaysia Customer Satisfaction Index (CSI) Study released today.

The Malaysian study was measured customer satisfaction with maintenance and repair service at authorized dealerships. Overall customer satisfaction was measured by 35 dealer performance attributes grouped into seven factors. They were (in order of importance): service quality, problems experienced, user-friendly service, in-service experience, service advisor, service initiation and service delivery.

Nissan, in the top position this year, had a customer satisfaction index score of 756 on a 1,000-point scale, performing particularly well in the service quality, service advisor, service initiation, user-friendly service and service delivery factors. Honda (744 points) followed in the rankings and performed particularly well in resolving problems experienced.

Perodua was the only Malaysian brand to perform above industry with an index score of 735 points. However, Proton, though still below industry average, showed the greatest improvement in 2007, increasing 36 index points from 2006, according to the annual study.

Perodua has used the studies to improve its CSI year after year and is the only Malaysian brand to score above the industry average

The overall industry average increased to 728 — up 19 points from 2006 — which is the highest overall satisfaction level ever recorded in the Malaysia CSI Study.

“Not only has the industry earned the highest CSI score since 2003 but all automotive brands included in the study also improved,” said Gerrit Kuyntjes, Managing Director at the J.D. Power Asia Pacific based in Singapore. “This demonstrates the intensifying competition among authorized dealers to increase customer satisfaction levels in Malaysia.”

Among the 24 service standards measured in the study, Kia and Proton show the greatest improvement in the number of service standards provided to customers. At the industry level, 39% of customers received at least 18 service standards—an increase of 11 percentage points since 2006. Customers who were provided with at least 18 service standards reported satisfaction scores that were 179 points higher than those receiving fewer than 13 service standards.

The study found that satisfaction levels can affect customer loyalty. Almost one in two customers who reported being “disappointed” with the overall service performance of the dealer then went to a non-authorized service facility at least once. In contrast, only one in four customers who said they were “delighted” had turned to a non-authorized service centre. Disappointed defectors spent one-half of their total service expenditures at non-authorized service facilities while delighted defectors spent considerably less. Furthermore, the likelihood of delighted customers to visit an authorized dealership for service after the warranty period expired was found to be 3 times higher than for disappointed customers.

Proton, though still below industry average, showed the greatest improvement in 2007

“Spending at non-authorized service centres varies by how customers are satisfied with their authorized network,” said Kuyntjes. “To help decrease the possibility of customers defecting, authorized dealerships should always strive to exceed customer expectations.”
 
The 2007 Malaysia Customer Satisfaction Index Study was based on evaluations gathered between February and May 2007 from more than 3,000 owners of new vehicles at 12 to 18 months of ownership. The owners included those who purchased their vehicles between August 2005 and May 2006. There is a strict screening process for each owner before an interview is done and the list of owners is obtained by JD Power & Associates independently and not supplied by any car company. Brands which are not mentioned in the results shown have not necessarily had poor scores but because the sample size available was too small.

J.D. Power and Associates, which has been conducting market research on the auto industry since the 1970s, does CSI studies around the world and its comprehensive studies are referred to by virtually all carmakers as independent assessments. Companies such as Perodua, which subscribe to the studies, receive extremely detailed information that helps them identify weak areas to address.

The CSI Study announced today is one of three consumer-based studies that J.D. Power Asia Pacific conducts in Malaysia. The 2007 Malaysia Sales Satisfaction Index (SSI) Study, which measures customer satisfaction with new-vehicle sales process, is scheduled to be released in October 2007 and the 2007 Malaysia Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners, is scheduled to be released in November 2007.

• Chart showing positions and points scored for brands surveyed
• Factors contributing to CSI scores
• 2006 JD Power Asia-Pacific CSI Study
• 2005 JD Power Asia-Pacific CSI Study