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GM, Lexus, Saturn and Buick Tops in Dealer Experience

30 June 1998

GM, Lexus, Saturn and Buick Tops in Dealer Experience

    SAN DIEGO, June 30 -- General Motors was the best corporation
in offering a quality dealer experience to its customers -- for the third
year.  Three of the top five brands were GM, with Saturn and Buick leading
their segments, and all divisions were above industry average.
    This is according to more than 32,000 new vehicle buyers reporting their
experience to Strategic Vision, Inc.  The San Diego-based research firm today
released the results of its 1998 Dealership Total Quality Index(TM)(DTQI).
    "GM has put significant effort into improving the dealership experience,
and it shows," said Strategic Vision vice president Daniel Gorrell.  "Besides
Saturn, simplified pricing, dealership consolidations and informational
websites have all contributed to their number one position."
    The index has a possible score of 1,000 and measures customer satisfaction
with sales and service experiences, including the emotional response.  "Our
research shows us that customers respond on all levels to the experience,"
said Gorrell, "not simply whether the building is new or they were offered a
test drive.  That's why we explicitly measure the emotional issues of trust,
security, control and respect."
    For the third year, Lexus led in Brands over $30,000 and Saturn in Brands
Under $20,000.  Buick was a repeat winner in the Brands $20,000 to $30,000
segment, based on the average price per vehicle.
    "The winning brands excel in making their customers feel secure and
trusting in the relationship," said Gorrell.  "They also feel more in control
of the experience and have their sense of esteem strengthened.  When you can
feel respected, smart and important in a relationship, aren't you going to be
more satisfied?"
    "The customer's relationship with the dealer affects the whole ownership
experience," said Gorrell, "acting like a halo when it is positive.  So GM has
been able to increase its owners' satisfaction while it works to strengthen
its products."

    By category, the winning brands are scores are:
    Best Brand Under $20,000:  Saturn (DTQI = 891).  Saturn scores well in
every area, but is especially strong in making customers feel they were
treated honestly and that they were smart to deal with Saturn.
    Best Brand $20,000 - $30,000:  Buick  (DTQI = 877).  The personal skill of
dealer personnel and making buyers feel free to ask and do what they want, as
well as feeling respected and smart led Buick to the top.
    Best Brand Over $30,000:  Lexus (DTQI = 895).  Lexus excels in dealership
environment and thoughtfulness, making customers feel free to ask and do what
they want as well as respected.

    Domestic manufacturers maintain a lead over Asian firms in buyer
satisfaction with the dealership experience.  The latter occupy the bottom
nine positions on the index.
    "Toyota in particular has not yet been able to improve the franchise
experience, despite efforts in that direction," said Gorrell.  "Sadly, they
haven't been able to translate their success with Lexus to the rest of the
corporation."
    Scores for the industry as a whole changed little from 1997.  Hyundai
showed the most improvement, up 37 points, while Kia had the lowest score.
    "To face the challenge of alternative retail channels, like Republic
Industries, companies need to continue improving consumers' experiences at the
dealership in all areas," said Gorrell.  "Reducing negotiations, improving the
clarity of explanations and providing personal and engaging follow up offer
the potential for the biggest payback."
    Since 1995, Strategic Vision has annually conducted a syndicated Total
Quality survey of new car buyers that measures the complete ownership
experience.  From that it calculates a Total Quality Index(TM), Dealer Total
Quality Index(TM), Total Value Index(TM) and, new this year, a Problem Impact
Measure(TM).
    The firm also researches consumer decision-making and experiences in a
variety of industries.  Clients include Coca-Cola, American Airlines, Procter
and Gamble and the American Broadcasting Company, in addition to various
automotive manufacturers.
    For further information, visit Strategic Vision's website at
http://www.vision-inc.com or contact Daniel Gorrell at (714) 544-3466.