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J.D. Power Reports: Luxury Vehicle Buyers Are More Likely than Mass Market Vehicle Buyers in India

To Use the Internet During and After Their Shopping Process

Oct 08, 2014   18:18 IST 
Singapore; India

BMW Ranks Highest in New-Vehicle Sales Satisfaction among Luxury Brands in India


Luxury vehicle buyers in India are more likely to use the Internet during their new-vehicle shopping process and to post feedback about their purchase experience, compared with mass market vehicle buyers, according to the J.D. Power 2014 India Sales Satisfaction Index (SSI) Study,SM luxury segment released today.


Now in its 15th year, the study measures overall satisfaction among buyers of new luxury vehicles with their sales experience based on seven factors (listed in order of importance): delivery process; delivery timing; salesperson; sales initiation; dealer facility; paperwork; and deal. Study findings for the mass market segment were announced in August 2014.


According to the study, 46 percent of luxury vehicle buyers use the Internet during their vehicle-shopping process, compared with 29 percent of mass market vehicle buyers. Luxury vehicle buyers go online to search for information related to vehicle specifications, spare parts, warranty information and financial terms of the loan or lease options.


Additionally, 30 percent of luxury vehicle buyers post information about their purchase experience on blogs or forums and social media websites, while only 13 percent of mass market vehicle owners do the same.


With nearly half of luxury vehicle owners in India using the Internet while shopping and nearly one-third posting their purchase experience feedback on social media or the Internet, it is prudent for automakers to have a system in place to monitor the reviews and feedback being posted by their customers,” said Mohit Arora, executive director, J.D. Power Asia Pacific. “An organization that systematically monitors and responds to feedback is likely to be perceived as proactive and customer centric, thereby enhancing its overall brand image.”


The information luxury vehicle buyers receive during their vehicle delivery process impacts satisfaction, especially regarding the vehicle maintenance schedule. Satisfaction among the 87 percent of luxury vehicle buyers who receive an explanation of the vehicle maintenance schedule during the delivery process averages 897 index points (on a 1,000-point scale), while satisfaction among the 13 percent of owners who do not receive maintenance schedule information during the delivery process averages 844.



  • Overall sales satisfaction in the luxury segment is 890 in 2014, up from 873 in 2013. Satisfaction improves in all factors, with the largest increase in delivery timing (+26 points).

  • Achieving highly satisfied customers has a positive impact on important ROI drivers like dealership service and repurchase intent. Luxury vehicle owners who are highly satisfied (sales satisfaction scores 955 and above), are nearly 1.5 times more likely than owners who are highly dissatisfied (satisfaction scores 846 and below) to take their vehicle for service at their purchase dealer. Additionally, highly satisfied owners are over 1.5 times more likely than owners who are highly dissatisfied to indicate an intention to repurchase the same brand of vehicle again.

  • Communicating an accurate estimate of the delivery time for the new vehicle during the booking stage improves satisfaction. Overall satisfaction among customers who receive an accurate delivery time estimate during booking of their vehicle is 901, which is 54 points higher than among those who do not receive an accurate delivery time.

  • Satisfaction averages 895 when luxury vehicle buyers are proactively offered vehicle financing, compared with 877 when they are not offered financing.

  • Moreover, satisfaction among luxury vehicle buyers is high (932) when they receive a post-sales follow-up call to schedule their first vehicle service appointment.

  • Location and reputation are the two most frequently cited reasons why luxury vehicle buyers choose a particular dealership for their purchase.



BMW ranks highest in luxury vehicle sales satisfaction with a score of 891. BMW performs particularly well in sales initiation and salesperson factors. Mercedes-Benz ranks second at 890, and performs particularly well in the paperwork and delivery process factors.


The 2014 India Sales Satisfaction Index (SSI) Study for the luxury brands is based on responses from 345 new-vehicle owners who purchased their vehicle between September 2013 and April 2014. The study was fielded from March to July 2014.


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