Customer Treatment–Not Price–Influences Car Sales

December 6, 2010

JD Power and Associates Contrary to the stereotypical image of a person happily haggling for a less-than-sticker price on a new car, a survey from JD Power shows that new-car buyers are driven more by the way they are treated at a dealership than by the price of the car. The study, an analysis of the new-vehicle purchasing experience, was measured across four factors: working out the deal, salesperson, delivery process, and dealership facility. In the study, 52 percent of respondents cited dealer treatment as a reason to buy a car from a specific dealer, while 30 percent said vehicle price was the reason they selected their dealer. The study found that 60 percent of respondents visit more than one dealership when looking for a new vehicle, with 18 percent saying they left a dealership because of poor treatment by salespeople. Given the stereotype of car salespeople, it may not be surprising that poor treatment was described as too much pressure, but respondents also complained about too little attention from salespeople. Perhaps least surprising of all is the luxury brand ranked highest for satisfying customers during the new-car-buying experience: Jaguar.

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