Comments on: J.D. Power Study Shows J.D. Power Not That Smart

By: TXTee

TXTee — Fri, 16 Jan 2009 05:00:49 +0000

Hmmm I must be backwards because I bought the Lexus sedan before I bought the two Toyotas (SUV then truck). It’s really what you need at a given time. I personally don’t trade my vehicles back in so I look for quality, durability, endurance, versatility, and long-term costs.

By: Jeremy the Automan

Jeremy the Automan — Sun, 11 Jan 2009 23:48:38 +0000

I was amiss about the Scion point. My point was that Scion makes a very good, small car, that is inexpensive. BUT they do not have very good retention due to the whole lineup being geared toward first time car buyers but not having anything else in the line to grow into. If Toyotas plan is working, they buy a scion and then buy a Toyota when the time is right. What I would like to see is how many Scions buyers then buy a Toyota. For all real purposes, that is a retention. Same goes for toyota Owners who then buy a Lexus.

By: admin (Jason)

admin (Jason) — Sun, 11 Jan 2009 03:26:17 +0000

Perry – Your are correct.
Jeremy – Yes, very true. Scion’s performance might be influenced by their extremely low sales volume, but it’s hard to say for sure.

By: Jeremy the Great

Jeremy the Great — Sun, 11 Jan 2009 02:52:29 +0000

The interesting brand was Scion. Which is a gateway company to get people into toyotas.

By: Perry Petek

Perry Petek — Sat, 10 Jan 2009 16:16:12 +0000

Seems to me there’s a lot more companies below the ” industrial average ” than above. This is a survey on companies not models right?

By: admin (Jason)

admin (Jason) — Sat, 10 Jan 2009 05:11:23 +0000

Michael – Thank you – this post was written by me. I like railing against J.D. Power because I don’t like a group of people who know so little about the auto industry but claim to know so much. Thanks for your kind words – feel free to link to this article and/or clip it for use on your site. For anyone who hasn’t done it yet, visit TrueDelta.com and check it out. Interesting and high-quality info.

By: admin (Jason)

admin (Jason) — Sat, 10 Jan 2009 05:08:03 +0000

Marty – You are correct in saying that Honda’s line-up isn’t as complete as Toyota, Ford, Chevy, and Nissan…but it’s close. That does put a little bit of a hole in my argument, but I would suppose that Honda’s overwhelming success in building and selling cheap vehicles that appeal to first-time buyers gives them a leg-up in this survey that compensates for the holes in their line-up. Still, an excellent point.

By: admin (Jason)

admin (Jason) — Sat, 10 Jan 2009 05:04:39 +0000

TXTee – Right on – if you liked your Tundra but needed a big diesel pickup from one of the domestics, that doesn’t mean Toyota has failed you. That just means you had to go somewhere else. Yet, according to this study, Toyota “failed” to retain you as a customer. Flawed logic, flawed survey. All it told us is what we already knew – Toyota and Honda make excellent vehicles. Big news, J.D. Power.

By: admin (Jason)

admin (Jason) — Sat, 10 Jan 2009 05:01:23 +0000

Jeremy – Always good comments from you, thank you. You’re very much correct about Honda offering a line-up geared towards every phase of their customers lives. Re-sale value absolutely helps with retention – I should have mentioned that. Honda’s “certified used” program is only available thru Honda dealers, so they have an inherent advantage over competing dealers offering similar Honda products…in other words, they can sell used Hondas for more than anyone else because only Honda dealers can offer certification. That, in turn, means that a Honda dealer can offer current Honda owners more money on trade. This brings us to yet another reason that Honda experiences high brand retention – they can offer previous customers more money, on average, than most of their competitors.

By: Jeremy the Great

Jeremy the Great — Sat, 10 Jan 2009 02:22:16 +0000

To continue, Honda knows who it is selling to. Buy a civic/ Fit, move to a Accord or CR-V then to a Pilot/Ridgeline/Odyssey mail the kids to college and go back to a Accord or CR-V OR move up to Acura line. Honda also creates a scarcity in the market by under supplying to the demand. Not EVERYONE who wants one, gets one. They leave a few people out there emptyhanded which keeps the prices high and the market stable. The chart measured return sells and Honda is a master of getting people back to buy another. My sister bought a accord 3 years ago and they have personally called her to buy her used accord back and upgrade her to a nicer, higher line model of the accord three times. Honda doesn’t sell near what toyota sells but they sell smart. Honestly, if I had to buy a small car it would be a civic. And I would chose the CR-V over the 4 cyl Rav-4.