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Lexus Again Takes The Top Spot for 2007 in JD Power SSI Study

Agent009 submitted on 11/14/2007 Official Bell & Ross Timestamp: 10:29 AM
from: www.jdpower.com

[122] user comments | category: Spy Shots

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Lexus Again Takes The Top Spot for 2007 in JD Power SSI Study

Lexus improves since 2006 to rank highest in customer satisfaction with the new-vehicle sales process, as the industry records overall improvement and achieves a record high for a second consecutive year, according to the J.D. Power and Associates 2007 Sales Satisfaction Index (SSI) StudySM released today.

The study, now in its 21st year, is a comprehensive analysis of the new-vehicle purchase experience. Overall customer satisfaction is measured based on five factors: dealership facility, salesperson, paperwork/finance process, delivery process and vehicle price.

Lexus ranks highest in satisfying buyers with the new-vehicle sales process, achieving an SSI score of 897 on a 1,000-point scale, and improving by 10 points from 2006. Following Lexus in the rankings are HUMMER, Jaguar, Lincoln and Mercedes-Benz, respectively, rounding out the top five nameplates. For a second consecutive year, the industry achieves a record high overall SSI score, improving by 5 points to 852 from the previous record of 847 set in 2006.

“Lexus improves by four rank positions from 2006, which is a gain driven primarily by increased customer delight with the dealership facility, salesperson performance and vehicle price,” said Tom Gauer, senior director of automotive retail research at J.D. Power and Associates. “For example, Lexus salespeople show particular concern for helping customers stay within their budgets, choosing the right vehicle for their needs, as well as for making the negotiation process clear and understandable. HUMMER receives a score of 895, up by 21 points from 2006, and improves notably in the vehicle price and paperwork/finance process.”

The study finds 44 percent of new-vehicle buyers report spending more than they planned for their new vehicle. These customers provide satisfaction scores that average 67 points less than customers who say they spent within the amount they had budgeted. However, a salesperson who carefully explains the vehicle’s features and demonstrates its value can more than compensate for this decrease in satisfaction.

“While all new-vehicle buyers hope to get a good deal, customers are receptive to spending more than they originally budgeted provided that the salesperson does a good job of educating the customer about the features and benefits that they are receiving,” said Gauer. “Customers are looking to the salesperson to help them buy a vehicle that fits their budget, but they are certainly open to spending more if the salesperson can successfully convey the value of the vehicle.”

The study also finds that customers whose expectations are exceeded during the sales process are much more likely to return to the dealership for customer-paid service work. Approximately 61 percent of customers who described their sales experience as “above expectations” say that they will definitely return to the dealership for paid service, compared with 37 percent of customers who say that their experience merely met their expectations.

The 2007 Sales Satisfaction Index Study is based on responses from 38,654 new-vehicle buyers who registered their vehicles in May 2007. To view ratings on customer satisfaction with the new-vehicle sales process, visit JDPower.com.

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Agent009 - 11/14/2007 10:39:10 AMView My AgentSpace

+9 Boost

Lexus seems to really have the customer service aspect down. A lot of other brands could learn a few things from them in this area.

reply to this comment

EL34 - 11/14/2007 11:34:16 AM

-11 Boost

Agent009, it all about perception.

I've been into many Lexus dealers and I can't imagine what's so special.

I mean it's like walking into a Lincoln-Mercury dealer.

What's the big deal???

MeanVulcan - 11/14/2007 12:43:09 PM

-1 Boost

It seems to me that everyone in this list gets at least a B. While that is hardly a standard I set for myself it really shows how far ALL the manufacturers have come in improving. So it comes to no surprise that the top ones are very very close.

To add more science to this ranking ... there is a deliberate failure in this ranking to note IN BIG LETTERS what the measurement error is. Why does it matter and why is it deliberate? It matters because if it were (and it isn't) +/- 0.1 then you could say ok Lexus is #1 and Hummer #2 and so on but if the error is say +/- 20 then you would be able to say that anyone including Saturn and up could claim to be #1. This is why it is deliberately left out. JD needs to make money out of providing a clear cut ranking. Very unethical, but they get away with it because most people are ignorant of the process and they will believe anything you throw in their face.

JDs rankings may have meant something 10~15 years ago when reliability was horrible, but trying to keep improving it and basing buying decisions on it makes no sense at all when a lot of the top brands already enjoy high levels of reliability.

If I were to compare how ridiculous this ranking is I would have to equate it to demanding my children to not get any grades below 98.859 in todays "JD terms" compared to demanding a 95 a few years ago. JD is actually trying to say that Lexus is clearly #1 when it actually is statistically the same as the top brands (something they omit on purpose). I'm not even going to go into discussing the subjective methods they use to qualify reliability. This (sadly) has become a normal practice for Americans (to trust JD) who mostly accept what is sold to them. This is why organizations that profit from providing "Best Lists" are so abundant (JD, former Siskel&Ebert, every single sports website, etc). We are told what is good for us and what is not and because most people put their brains on hold these organizations profit. WAKE UP PEOPLE! It's time to make up your own minds with OBJECTIVE information!

autopro - 11/14/2007 7:07:04 PMView My AgentSpace

+4 Boost

I think EL and Mid engine stopped off at the meat packing plant.

1970toyotamarc - 11/14/2007 10:59:50 PM

+5 Boost

Toyota dealers hould be the first to learn from Lexus. Tho I was pleased with Longo Lexus when I bought my Prius this year. Toy dealers have a long way to go.

Agent009 - 11/14/2007 11:01:47 AMView My AgentSpace

-2 Boost

Top quality in service no doubt.
Top quality in quality, well the jury is still out on that.

reply to this comment

david999 - 11/14/2007 11:07:33 AM

0 Boost

Anybody that has various dealership experiences, quickly come to appreciate
how well they get treated at a Lexus one. And yes, the vehicles are top notch too.

reply to this comment

Shredmo - 11/14/2007 11:37:08 AM

0 Boost

LK600, does your dad know you come here to fanboy his car? Is he proud? Someone that actually owns a Lexus would have better stuff to do than not read articles, yet post garbage anyway.

reply to this comment

headphones - 11/14/2007 6:42:37 PM

-2 Boost

good stuff midengine.

reply to this comment

Shredmo - 11/14/2007 11:35:24 AM

-2 Boost

This study seems irrelevant to me. When I buy a car, I want a fair price, little BS and basically want to spend the least amount of time doing it. Maybe some people love talking to a car salesman, but I can think of hundreds of things I'd rather do. Heck, when purchasing my last vehicle, the dealer offered to pay for a nice dinner, while my wife and I discussed the deal. Sure that is nice, but all I wanted was to deal, sign, pay and drive.

This has nothing to do with the quality of a car. It is only about the actual car buying expereince. No, I don't want a back rub or any other perk when purchasing a vehicle, unless the car sales (wo)man is hot.

reply to this comment

EL34 - 11/14/2007 11:36:37 AM

-8 Boost

What does Lexus do that's better than a Maybach or Ferrari dealer?

reply to this comment

answer - 11/14/2007 11:45:27 AM

+9 Boost

What do you contribute aside from constant anti-Lexus trolling and random useless information?

david999 - 11/14/2007 11:50:24 AM

+9 Boost

good point ,answer.

EL34 - 11/14/2007 11:58:58 AM

-9 Boost

Boring + Dull = Lexus

:)

reply to this comment

answer - 11/14/2007 12:01:29 PM

+13 Boost

Off topic + lacking in humour = EL34

theoptimisticpessimist - 11/14/2007 12:30:47 PM

+6 Boost

MY HEAVENS, your all missing the big news HUMMER was second, what? did they sell like eight cars last year.

reply to this comment

Shredmo - 11/14/2007 12:33:48 PM

+1 Boost

Maybe they have hot sales (wo)men, etc.!

EL34 - 11/14/2007 1:19:05 PM

-6 Boost

Hummer sells alot here in Orange County, Ca 92602

;)

EL34 - 11/14/2007 1:14:06 PM

-5 Boost

What is it Lexus does for someone waiting for an oil change?

Do they shine your shoes or give you a raw piece of fish?

:(

reply to this comment

cbro980 - 11/15/2007 6:03:19 PM

+1 Boost

EL, It is hardly worth my time to explain anything to you, you are so biased that you couldn't see anything that is outside the vision field of your blinders (what a horse wears if you don't know). What does the dealer do while you get an oil change? At my dealer, Lexus of Glendale, you get pastries, fruits, popcorn, bottled water, Starbucks and regular coffees, teas, soft drinks, tv, newspapers, a golf practice device, 2 top of the line massage chairs, internet connections and a laptop computer to use and very comfortable seats and chairs. What more could you ask for with an oil change? A service also gets you a loan car of at least the model you are driving.

EL34 - 11/14/2007 1:21:51 PM

-4 Boost

Have any of you noticed MidEngine is always spot on when discussing Lexus?

reply to this comment

JUGNU - 11/14/2007 2:57:19 PMView My AgentSpace

+9 Boost

Midengine

do u have some other work in life other than hating Lexus?

U have posted the crap motortrend link some 100th time now but not paying any attention to this study where Lexus came on Top.

JUGNU

reply to this comment

Htay7500 - 11/15/2007 7:06:36 PM

+1 Boost

AlexApex: you bring Thailand to this because...??

midengine: Thailand scares you because...???

Htay7500 - 11/15/2007 7:08:23 PM

0 Boost

and another thing, both of you fanboys need a reality check.

Htay7500 - 11/16/2007 8:51:18 AM

+2 Boost

still unnessecary to bring thailand even though I'm not from there.

migengine: I'm pretty sure they do have a strange prostitution problem,but how is their aesthetics in their religion disturbing?

1995e34 - 11/16/2007 5:13:08 PM

+1 Boost

the whole christianity thing is very off topic...but here's my slant: christianity hasn't become less popular, it just got highjacked by the power hungry.

and thailand is a beautiful country...where you CAN get child prostitutes along with drugs of any flavor. i wouldn't be too fearful of traveling there...bhudists seem to be pretty safe.

1995e34 - 11/16/2007 5:19:33 PM

+1 Boost

all i can do is be honest. even if i'm wrong.

1995e34 - 11/16/2007 7:06:58 PM

0 Boost

how bout ron paul?

Jag_xfr - 11/14/2007 3:31:08 PM

-3 Boost

Nice one Jaguar ,looking good yet again. The new XF should boost sales and secure their well earned position at the top.

reply to this comment

BMW995 - 11/14/2007 4:39:54 PM

0 Boost

I have a Lexus IS..very pleased with the car, and also the service...BUT cost of an oil change: $160.
Cost of an oil change for my wife's Acura RL: $40.
Not good.

reply to this comment

headphones - 11/14/2007 6:47:35 PM

0 Boost

160? wow. get your money back.
i get it free for 4 years/50,000 miles.
i also get new air filters, wipers, brake pads, etc. for free.

sounds like the best to me.

Lexus - 11/14/2007 5:16:58 PM

+3 Boost

Congratulation to Lexus on a job well done!

reply to this comment

autopro - 11/14/2007 7:13:56 PMView My AgentSpace

0 Boost

Everybody always hates #1. That's O.K. Lexus will keep kicking ass and taking names.

reply to this comment

Star - 11/14/2007 11:00:16 PM

+3 Boost

Nobody hates Lexus for being #1 in service satisfaction surveys. They are in the top when it comes to kissing ass, just the way Mercedes, BMW or Porsche are in the top when it comes to building phenomenal cars. Everybody has to make a living and Lexus uses the sucking and kissing method to sell their low quality products.

1995e34 - 11/16/2007 5:37:28 PM

+2 Boost

nobody is leagues ahead of anybody in terms of reliability. this is 2007.

and how do you define quality?

as an engineer, i see 2 aspects in the japan vs germany quality arguments. structural/mechanical quality and electric/technological quality.

german makes have long been known for sturdy body/mechanical components, while japan has clearly mastered the electrical components.

youre likely to notice the flaws of the german car before you would on a japanese car, as the electronics are inside the cabin entertaining you while the mechanicals are out of sight. my point is, consumer reports and others survey people on what they come in contact with. and those people don't come into contact with the fruits of the european brands.

xj13 - 11/14/2007 10:43:38 PM

+4 Boost

I don't care how lex ranks I will never buy one. Sorry give me a Benz, Jag, BM, Porsche,Audi(RS5/R8)Bently even a SAAB anyday of the week.

JD stick your survey where the sun don't shine buddy.

reply to this comment

Star - 11/14/2007 10:53:56 PM

+2 Boost

No type of service can make up for a crappy car and that's what Lexus builds. Old, insecure people who look for point A to point B transportation and good dealership treatment can be fine with a Lexus but for people that like cars, the choices are quite different... Mercedes, BMW, Porsche...Enough said.

reply to this comment

S4cabriofoxone - 11/17/2007 1:20:49 AMView My AgentSpace

+1 Boost

"with such excellent products, they CAN GET AWAY WITH being a little aloof, money grubbing, even arrogant sometimes."

Oh, so this is okay for TOYOTA your holy God to do, but not for BMW, Merc, Audi, etc?

RIGHT!

reply to this comment

chuck717 - 11/15/2007 10:57:51 AM

+2 Boost

Lexus was on a mission for years about customer satisfaction and to their credit they continue to stay in the top spot, i also couldn't beleive the move Hummer made, a nice turnaround for MBZ very nice, just shows when the public responds to not being happy and the mfg actually does something about it is what i call paying attention to the public's wants, good job.

reply to this comment

1995e34 - 11/15/2007 1:28:43 PM

+3 Boost

sooo...their good salesmen...that's nice

reply to this comment

1995e34 - 11/15/2007 3:19:19 PM

+2 Boost

i can't say i would buy a car based on dealership experience. as long as they don't kick me in the balls, i'm happy.

Extract - 11/15/2007 5:46:34 PM

+2 Boost

Who cares? Why is this site so fixated on Lexus? All I ever read is crap about Lexus. I had a Lexus and a BMW previously...customer service was the least of my worries when I bought them. I don't drive my CLS now because I'll get an ass kissing when I bring it in. I dont even remember the salesmans name, my service reps name or even the dealerships name. I bought a kick-ass machine; end of story. I dont care where you go ...if you buy a $20000 car they could give a rats A%% about your service...put down 80k and guess what...smooch smooch smooch. Simple really.

reply to this comment

xj13 - 11/15/2007 7:44:58 PM

+2 Boost

The CLS is a awesome car, good choice Extract.

reply to this comment

lexusis350 - 11/15/2007 8:30:18 PM

0 Boost

Honda was below average?!?! What happened there.

reply to this comment

Htay7500 - 11/16/2007 4:20:30 PM

+2 Boost

Midengine: (since I can't reply to your comment for whatever reason) my parents are from Burma, and my mom knows a lot about therevada buddhism, thats really nothing to be scared or disturbed about. thats a guardians (we call "ballou" in burmese) of the paya (buddhist shrine aka pagoda)who guard this shrine. I'm pretty sure Thais don't worship the devil. since they are therevada budhists, they celebrate the water festival (apr.) where they wash the evil spirits in themselves and to cleanse themselves for the new year. its all about being happy during this time. its part of THEIR culture. and yes, I, myself, find that to be offenseive as well since I am buddhist and having been there once w/o any trouble.

reply to this comment

1995e34 - 11/16/2007 5:17:49 PM

+1 Boost

how did ted kennedy ruin your religeon?

1995e34 - 11/16/2007 7:13:22 PM

+1 Boost

so allowing non-whites to migrate to the united states ruined your religion?

Htay7500 - 11/16/2007 8:17:43 PM

+2 Boost

Burma use to have the best living standards in SE asia, and the most educated population prior to military rule, since then, the military has neglected there people causing the economy to cripple. its a nice place to be though. lots of nice people (save beggars who want you to buy their stuff) and some fairly english speakers. when your in rangoon at nite, the most beautiful thing you'll ever see is the shwedagon pagoda light up the whole city with its gold essence. living standards are so-so. I stayed in a hotel since I'm not use to the bathrooms and such. you'll see lots of monks walking around the streets of rangoon collecting alms in barefoot. monks are considered a higher authority being buddhas servant. lots of people pay respect to them by donating rice as they walk barefoot. the military betrays this and has probably killed many. I can say some more but I have to make a run.

1995e34 - 11/17/2007 9:29:06 AM

+2 Boost

the u.s. was founded on terrorism. boston tea party?

Porschinator - 11/16/2007 4:38:30 PM

+1 Boost

Good job Hummer. Now if they can only increase the MPG! As for Lexus, not a big surprise. I have noticed that Lexus dealerships go above and beyond the call of duty. NOT ALL OF THEM, but most do and that is a major plus to gain market share. I would say MB is next, Porsche, BMW, then Audi.

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pnsb24a - 11/17/2007 4:56:49 PM

+1 Boost

HUMMER is number 2 I DON'T THINK SO. What BS

reply to this comment

xj13 - 11/18/2007 8:22:49 AM

0 Boost

I forgot what this thread is about.

Go BENZ and Jesus.

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