2008 J.D. Power Motorcycle Surveys

The Motorcycle Dealership Experience Can Be a Problem.  Or Not.

by "Mad Dog" Earle for webBikeWorld.com

More:  wBW Reviews Home  |  Owner Comments (Below)

See Also:  JD Power 2006 Survey Results

In 2006, J.D. Power and Associates released a report entitled "New Motorcycle Owners Experience Fewer Problems with Their Bikes", which we described in this report (exactly two years ago today).

Well, here we are in 2008 and apparently not much has changed from the perspective of a motorcycle consumer.

J.D. Power released two reports within one week of each other; one concludes that dealers may be losing sales due to what we think is the 1950's mindset that is still prevalent in many motorcycle dealerships.

The second report concludes that motorcycle owners are pleased with the ownership experience and the service they receive from these dealers.  Sound confusing?  It is.

The first report also states that "the study also finds that price and financing are cited most often as the reason for rejecting a motorcycle brand, with 57 percent of shoppers mentioning price-related issues as a reason for rejection",

But the second report states that “Despite the fact that owners report paying 14 percent more for their motorcycles this year, they are also more satisfied with the value received for the money spent,” said Tim Fox, research manager of the Powersports practice at J.D. Power and Associates.

Hmmm.... So we'll publish the two press releases from J.D. Power and Associates and you make up your mind.

The first report, widely covered by the motorcycle press, is bylined "Brands that Typically Use Multi-line Dealerships Continue to Struggle in Satisfying Customer Needs When it Comes to the Sales and Service Experience".

The report is based on the curiously named "2008 Motorcycle Escaped Shopper Study".  We should have known that the Madison Ave. marketing types even have a name for people who walk out of a store without buying anything. 

Escaped shopper?  Sounds rather sinister...

In any case, the report was summarized by J.D. Power and Associates as "Shoppers Cite Dealer-Related Issues among the Top Reasons for Rejecting Motorcycle Brands"

Apparently, one of the reasons that motorcycle customers will reject a particular dealership is because the dealer won't allow test rides. 

I hope J.D. and the gang didn't spend much on putting this report together, because as any motorcyclist will tell you, this is a problem -- and it's patently absurd to not allow a test ride on a motorcycle in 2008.  A motorcycle purchase is a significant investment, with prices for many bikes reaching nearly $20,000.00 USD.  If you can test drive a car, why not a motorcycle?

"Insurance costs", they'll tell you.  Too bad.  Buy the insurance and cover it with your overhead.  Or let the bikes sit on the showroom floor and collect dust, because I won't be buying one.

The second report follows.

2008 Motorcycle Escaped Shopper Study

Brands that Typically Use Multi-line Dealerships Continue to Struggle in Satisfying Customer Needs When it Comes to the Sales and Service Experience

J.D. Power and Associates, 10 December 2008 -- A majority of new-motorcycle buyers reject a motorcycle brand because of dealer-related issues, according to the J.D. Power and Associates 2008 Motorcycle Escaped Shopper Study released today.

The inaugural study, which analyzes the reasons shoppers consider a particular motorcycle brand but ultimately purchase a different brand, finds that 51 percent of new-motorcycle shoppers cite dealer-related issues as a reason for rejecting a motorcycle brand.

One of the primary dealer-related issues for rejecting a brand is the inability to test ride a bike, which was mentioned by one-fourth of shoppers as a reason for rejection, while 7 percent of shoppers indicate that the inability to test ride was the most influential reason for not purchasing a particular motorcycle brand.

In addition, 18 percent of shoppers rejected a motorcycle because it was not available at the dealership, while the perception of being able to receive better service at another dealership is mentioned by 15 percent of shoppers as a reason for rejection.

“To avoid losing customers due to dealer-related issues, it’s important for dealers to better manage customer expectations,” said Tim Fox, research manager of the Powersports practice at J.D. Power and Associates.

“For example, making customers aware before they arrive at the dealership why they can or cannot test ride a particular motorcycle may help brands convert more shopper visits into sales.  Since dealer-related issues can be controlled to a certain extent by dealerships and brands, focusing on meeting customer expectations in this regard can result in improved customer perception of a brand as well as lower rejection rates.”

The study also finds that price and financing are cited most often as the reason for rejecting a motorcycle brand, with 57 percent of shoppers mentioning price-related issues as a reason for rejection.

Overall, price is cited by 41 percent of shoppers as a reason for rejection, and 28 percent name price as the most influential reason for rejection.  Similarly, 16 percent of shoppers mention the lack of low-interest financing, rebates or other incentives as a rejection reason, while 23 percent of shoppers mention high maintenance costs.

“It is important for dealers to understand that for many of these lost sales, there was a legitimate chance of closing the sale during the shopping process,” said Fox.

“Eighty-four percent of shoppers indicate they ‘seriously’ considered the brand they rejected, and 41 percent indicate they ‘very seriously’ considered the brand.  While price is often a major reason for rejection, 51 percent of shoppers end up spending the same or more on the brand they purchased compared with the brand they considered but rejected.”

A vast majority of customers (81%) report having used the Internet to research motorcycles when shopping, 73 percent say they read magazine reviews, and 28 percent say they attended a trade show or motorcycle event, according to the study.

Seventy-eight percent of motorcycle buyers indicated they contacted or visited a dealership for information before purchasing.

“More than three-fourths of customers report interacting with a dealership to find more information on a particular motorcycle, so manufacturers have a great opportunity to win or lose customers at this point in the shopping process,” said Fox.

The study, which also examines the impact of gas prices on motorcycle riding habits, finds that 29 percent of motorcycle riders report that they changed their driving habits during late September and early October 2008 when gas prices averaged $3.42 per gallon.

Among those riders who changed their habits, 75 percent report using their motorcycle more often for commuting to work or school, and 41 percent say they use their motorcycle more often when driving around town.  Additionally, 31 percent report doing less cruising, and 30 percent say they did less extended traveling.

The 2008 Motorcycle Escaped Shopper Study is based on responses from 3,022 new-motorcycle buyers.  The study was fielded in September and October 2008.

Photo courtesy of Ros, Mexico

Customer Satisfaction with the Motorcycle Ownership Experience Reaches Record-High Levels

Despite Higher Owner-Reported Motorcycle Prices, Satisfaction with Perceived Value Increases in 2008

J.D. Power and Associates, 17 December 2008 -- Overall satisfaction with the motorcycle ownership experience has increased for a sixth consecutive year to a record-high level, according to the J.D. Power and Associates 2008 Motorcycle Competitive Information Study released today.

Now in its 11th year, the study measures owner satisfaction with new motorcycles by examining five major components of the overall ownership experience: product; quality; cost of ownership; sales; and service.

Overall motorcycle ownership satisfaction averages 814 (based on a 1,000-point scale) in 2008, up 5 points from 2007.  While all five components driving satisfaction improve in 2008, the most notable increases occur in the areas of cost of ownership and product quality.

Overall, satisfaction with cost of ownership has increased steadily over time. In 2008, satisfaction with cost of ownership improves by 11 points from 2007 to an average of 707. 

In addition, 18 percent of owners in 2008 report that the cost of owning their motorcycles is “outstanding” (a rating of 10 on a 10-point scale), compared with only 10 percent of customers in 2005 who indicated the same.

Furthermore, 30 percent of motorcycle owners in 2008 indicate that the value they received for the price paid is “outstanding,” compared with 21 percent in 2005.

The study finds that product quality has improved in 2008, compared with 2007, primarily due to a decrease in owner-reported problems.

The overall number of problems reported averages 152 problems per 100 vehicles (PP100); down 8 PP100 from 2007.

In addition, the number of owners who report having a problem-free experience with their motorcycle averages 42 percent in 2008, an improvement of 3 percentage points, compared with 2007.

“Despite the fact that owners report paying 14 percent more for their motorcycles this year, they are also more satisfied with the value received for the money spent,” said Tim Fox, research manager of the powersports practice at J.D. Power and Associates.

“There are several motorcycle models with a higher price point that owners have indicated are a particularly good value for the money.  This demonstrates that if you make a superior product, consumers are willing to pay a higher price for it because they believe it to be an excellent value.”

The study also finds that the industry continues to struggle with attracting younger, first-time motorcycle buyers.

“Since 2001, the average age of motorcycle owners has increased from 40 to 47 years,” said Fox.  “This indicates that the current population of motorcycle buyers is aging, and a large proportion of these owners are likely to soon exit the market."

"Because first-time motorcycle buyers comprise 22 percent of all new motorcycle purchases -- a figure has remained relatively flat since 2001 -- it is critical for manufacturers to focus on attracting first-time and younger buyers -- primarily those in the Gen X and Y demographics -- in order to ensure continued growth in this market.”

The study also includes the following findings:

• Among motorcycle owners who visit a dealer for repair work, 79 percent report that the repair was performed correctly the first time -- an increase of four percentage points from 2007.

• The two problems that have the greatest negative impact on overall product satisfaction are rough paint and engines that overheat.

• Other problems that have a particularly strong impact on satisfaction include gearshift issues, lacking power, and the ride being too stiff or too soft.

• During the past seven years, satisfaction with the engine and transmission has shown the greatest improvement among product-related aspects.

The 2008 Motorcycle Competitive Information Study includes responses from 7,334 owners who purchased new on-road or dual-sport motorcycles between September 2007 and May 2008.  Owners were surveyed in September and October 2008.

For more information on the performance of motorcycle brands, visit the J.D. Power Consumer Center.

More: JD Power 2006 Survey Results

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►Reader Comments and Owner Feedback

From "T.G.C." (1/09):  "I agree 100% with the comment in the J.D. Power article regarding being able to test ride a bike prior to the purchase.

In fact, I had a deal cut on a new 2008 Gold Wind with GPS, ABS etc. last spring at a Honda dealer I had previously purchased 2 bikes from.  The deal was done and all that was left was to get a deal sheet faxed to my credit union and cut the check.  I was pre-approved for the loan.

The dealership was an hour from home so I told him that I would come down on Saturday with a check in my pocket for the bike.  I told him that I wanted to ride the Wing and while I couldn't imagine not liking the Wing, still for that kind of money, no way was I going to buy something that expensive w/o riding it 1st.

Well.........the dealer told me it was "company policy" that they could not offer test rides. I told him that I would be responsible for the bike......if I damaged it.....I would buy it.  Still.........no test ride and this dealer is listed on Honda's web site as a "test ride dealer".

Anyway, I declared the deal dead and a month later bought a Harley at a H-D dealer that insists on the customer riding the bike prior to purchase.  Needless to say, I'll never go back to that Honda dealer.

Keep up the great work on your web site.  It's a great way to get real world info on motorcycle gear and accessories."