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New vehicle buyers choose dealers based on reputation: Study

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Press Trust of India New Delhi
Last Updated : Aug 28 2014 | 6:46 PM IST
New vehicle buyers in India are increasingly choosing dealers based on their reputation and operational effectiveness, says a study.
According to the J D Power 2014 India Sales Satisfaction Index (SSI) study, reputation of the dealer as a reason to purchase from that particular dealer has increased by 11 per cent during the past five years.
Owners who selected their dealer based on its reputation, availability of the exact model and hassle-free negotiation pay an average of four per cent more for their vehicle than those who chose a dealer for other reasons.
"The Indian automotive industry has been facing significant challenges over the past two years, but dealers that are able to present their offerings to customers in a transparent manner, aided with availability of the exact model and commitment of a faster delivery time are often rewarded because customers are willing to spend more for their vehicle," said Mohit Arora, Executive Director at J D Power Asia Pacific, Singapore.
The study said overall sales satisfaction in the mass market segment is 857 index points on a 1,000-point scale in 2014, a 16-point increase from 2013.
Increase in overall satisfaction is attributed to strong improvements across all factors, most notably in delivery timing (+20 points) and delivery process (+18 points), the study added.
About 49 per cent of the owners indicate that they received a discount when they purchased new vehicle in 2014, up from 36 per cent in 2013. The average amount of discount has also increased 12.4 per cent year-on-year.
Now in its 15th year, the study examines seven factors that contribute to new-vehicle buyers' overall satisfaction with the sales experience.

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First Published: Aug 28 2014 | 6:46 PM IST

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