Recommendation, Reviews and Prior Experience Remain Key Drivers of Dealer Choice among New-Vehicle Shoppers in India
Nissan Ranks Highest in India Sales Satisfaction for First Time
DELHI: 8 Nov. 2023 — In an era of digitalization, a recommendation from others’ shopper experience remains one of the key drivers for choosing a dealership in India, according to the J.D. Power 2023 India Sales Satisfaction Index (SSI) Study,SM released today. Since 2021, J.D. Power has conducted the India Sales Satisfaction Index Study in partnership with NielsenIQ.
The study finds that a customer’s choice of dealership often depends on word-of-mouth recommendations and online reviews. Nearly one-third (32%) of customers cited these two elements as the primary reasons for choosing their current dealer. In addition, appearance of the dealer facility (13%) is a key reason for choosing a dealership.
“Experience remains a key driver towards dealer recommendations in both the offline and online space,” said Sandeep Pande, lead of the automotive practice India at NielsenIQ. “With customers looking towards their peer group for advice on dealer choice, an enhanced quality of experience encompassing sales and after-sales for existing customers is likely to drive dealer referrals.”
Following are some key findings of the 2023 study:
- Safety as a theme takes precedence: The perception of a vehicle’s safety is the main reason to purchase the same vehicle again (11%). Among SUV owners, safety as a key reason for model choice is cited as the main reason for choosing that type of vehicle.
- Digital and physical information sources co-exist: While digital sources like YouTube videos, reviews, blogs and social media advertisement are cited as the main sources of information for model choice (39%), equally important are word-of-mouth from friends/ family, test drives and visiting the dealership (39%).
- Shopping and research time before booking increases: The study shows an increase in the time that customers are taking to shop and research a new vehicle. In 2023, the number of days from the start of vehicle research to the actual booking was 55 days, up from 47 days in 2022.
Nissan ranks highest for the first time in the study, with a score of 881. MG (879) ranks second and Hyundai (878) ranks third.
The 2023 India Sales Satisfaction Study (SSI) is based on responses from 5,445 new vehicle owners who purchased their vehicle from December 2022 through August 2023. The study was fielded from June through September 2023.
The study measures new-vehicle owner satisfaction with the sales process by examining satisfaction on six factors (listed in order of importance): sales consultant (19%); working out the deal (19%); dealership facility (18%); paperwork completion (17%); delivery process (15%); and brand website (12%).The study only examines the sales satisfaction in the mass market segment.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
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NielsenIQ is the leader in providing the most complete, unbiased view of consumer behavior, globally. Powered by a groundbreaking consumer data platform and fueled by rich analytic capabilities, NielsenIQ enables bold, confident decision-making for the world’s leading consumer goods companies and retailers.
Using comprehensive data sets and measuring all transactions equally, NielsenIQ gives clients a forward-looking view into consumer behavior to optimize performance across all retail platforms. Our open philosophy on data integration enables the most influential consumer data sets on the planet. NielsenIQ delivers the complete truth.
NielsenIQ, an Advent International portfolio company, has operations in nearly 100 markets, covering more than 90% of the world’s population. For more information, visit NielsenIQ.com.
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