Press Release

2013 Japan Navigation Systems Customer Satisfaction Index Study

10/25/2013
J.D. Power Asia Pacific Reports:
Expandability Is a Key Factor in Product Differentiation for Aftermarket Navigation Systems


Alpine Big X Ranks Highest in Customer Satisfaction Among In-Dash Aftermarket Navigation Systems for a Second Consecutive Year

TOKYO: 25 October 2013 --Expansion features, such as rear entertainment capability, improve overall customer satisfaction with aftermarket navigation systems, according to the J.D. Power Asia Pacific 2013 Japan Navigation Systems Customer Satisfaction Index StudySM released today.

Now in its seventh year, the study measures customer satisfaction with aftermarket brand in-dash vehicle navigation systems. The study also measures satisfaction with navigation systems as in-vehicle information systems--also known as a portable navigation device (PND)--including music and video player functions, and telematics services, as well as search and guidance functions. For in-dash systems, four factors are examined (in order of importance): navigation function1 (42%); infotainment equipment (21%); operation/user interface (20%); and screen (17%). Overall satisfaction scores are calculated based on customer evaluations of multiple attributes of these factors and are based on a 1,000-point scale.

The study finds that satisfaction among owners of in-dash aftermarket navigation systems equipped with expansion features, such as rear entertainment systems is 558, which is 26 points higher than the in-dash aftermarket navigation segment average of 532, and 15 points higher than satisfaction among owners of aftermarket navigation systems equipped with terrestrial digital TV tuners--an increasingly desirable feature (543).

Similar to owners of factory- or dealer-installed (OEM) navigation systems, owners of aftermarket systems desire expansion features that contribute to security and safety, with 58 percent of owners indicating they have a rear-view camera, 7 percent indicating they have a front-view camera, and 5 percent indicating they have a side-view camera. These safety features also contribute to high satisfaction, as overall satisfaction among owners of aftermarket navigation systems with rear-view cameras is 537, while satisfaction among owners with front-view cameras and side-view cameras is 551 and 540, respectively.

"Sales of in-dash aftermarket navigation systems and PNDs have decreased, and low-price navigation systems/devices have emerged in the market," said Taku Kimoto, executive director of the automotive division at J.D. Power Asia Pacific, Tokyo. "Since it is known that owners value expansion features, incorporating these expansion features into aftermarket systems will help differentiate them from other basic, low-cost systems."

High satisfaction leads to higher repurchase intent and customer recommendations. The study finds that 40 percent of owners who are highly satisfied with their in-dash aftermarket navigation system (index score of 800 higher on a 1,000-point scale) indicate they "definitely will" repurchase the same brand when they buy their next navigation system and 30 percent say they "definitely will" recommend the brand to others. However, loyalty and advocacy decrease to 12 percent and 8 percent, respectively, among owners with satisfaction scores between 700 and 799. Repurchase intent and product recommendation increase dramatically when the overall satisfaction is 800 points or higher.

The Alpine Big X series ranks highest aftermarket navigation systems in the in-dash segment for a second consecutive year, achieving a score of 564 points. The Big X series performs particularly well in the screen and infotainment equipment factors. The Panasonic Strada H series (550) ranks second and The Pioneer Cyber Navi (549) ranks third.

"Until now, successful aftermarket navigation systems have been highly distinctive systems that fully explored the possibilities of specific functions and high-spec systems with features that OEM navigation systems cannot keep pace with," said Kimoto. "Aftermarket systems with functions and appearance similar to factory- or dealer-installed navigation systems that also utilize expansion features to provide systems that owners can customize are key to achieving differentiation from competitors."

The 2013 Japan Navigation Systems Customer Satisfaction Study is based on responses from 2,623 owners who purchased their system between April 2011 and March 2013. The Internet study was fielded in July 2013.

The 2013 Japan Navigation Systems Customer Satisfaction Index Studyis one of eight consumer-based benchmark studies conducted by J.D. Power Asia Pacific in Japan. Other 2013 studies conducted by J.D. Power Asia Pacific include:
  • - The 2013 Japan Winter Tire Customer Satisfaction Index Study, which measures overall customer satisfaction with winter tires, was released in May.
  • - The 2013 Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership, was released in late August.
  • - The 2013 Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in late August.
  • - The 2013 Japan Customer Service Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities, was released in late September.
  • - The 2013 Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle's performance and design during the first two to nine months of ownership, was released in late September.
  • - The J.D. Power Asia Pacific 2013 Japan Navigation Systems Customer Satisfaction Index Study (OEM), which measures customer satisfaction with factory- and dealer-installed navigation systems, was released in October.
  • - The 2013 Japan Original Equipment Tire Satisfaction Study, which measures customer satisfaction on original equipment tires, was released in October.
  • - The 2013 Japan Replacement Tire Satisfaction Study, which measures customer satisfaction with replacement tires, will be released in October.

About J.D. Power Asia Pacific
J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at japan.jdpower.com. Media email contact: cc-group@jdpower.co.jp

About J.D. Power
J.D. Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., J.D. Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power is a business unit of McGraw Hill Financial.

About McGraw Hill Financial
McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company's iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

Media Relations Contacts
Shizue Hidaka; J.D. Power Asia Pacific; Toranomon 45 MT Bldg. 8F; 5-1-5 Toranomon; Minato-ku, Tokyo; Japan 105-0001; Phone +81-3-4550-8090;shizue_hidaka@jdpower.co.jp

John Tews; Director, Media Relations; J.D. Power; 320 E. Big Beaver; 5th Floor, Suite 500, Troy, MI, 48083 USA; 001 248-680-6218; john.tews@jdpa.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power. www.jdpower.com

1 Navigation Function includes evaluations of destination search, route setting, route/road guidance and map data

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