Despite a trend among customers to migrate to non-dealer service centers for post-warranty vehicle service, some dealerships provide an extraordinary vehicle service experience and maintain almost all of their customers beyond the warranty period, according to the J.D. Power and Associates 2000 Service Usage and Retention Study(SM) released Oct. 26.

Lexus achieved top billing among post-warranty customers for service satisfaction; Lexus was also the top nameplate in this year's J.D.

Power and Associates 2000 Customer Service Index

Study(SM), which measures customer satisfaction during the first three years of ownership.

Following Lexus in the Service Usage and Retention Study is Infiniti. Both makes demonstrate strong performance with uncomplicated appointment processes, "hands-on"

service advisors, honest and courteous customer

treatment and quick, knowledgeable responses to

service requests and questions.

"The quality of routine maintenance and repair service during the warranty period has a large impact on future service work," said John Harbicht, senior manager of service satisfaction research at J.D. Power and Associates. "Nearly one-half of all customer spending on post-warranty service is influenced by the experience at the dealership during the warranty period. Even though some dealerships have extraordinary vehicle service and high customer retention after warranty, two-thirds of original owners reported using an aftermarket service facility at least once during the past year. This is particularly true for owners in non-luxury segments."

Customer frustrations with slow service and marginal service quality during the warranty period push owners to non-dealership service facilities for vehicle maintenance and repairs after their warranty runs out.

Increasingly, post-warranty customers demand two things: easily accessible, quickly performed service work and courteous, knowledgeable service personnel. Aftermarket service facilities effectively address these areas and earn close to one-half of consumer post-warranty service dollars.

Independent garages, as opposed to national and

regional chains, receive high ratings from customers due to their ability to directly interact with service operators/technicians and speed of service provided. Independent garages build strong relationships with their customers, promoting a sense of trust.

Specialty shops such as Midas and Jiffy Lube provide quicker service without appointments for most vehicles for work such as oil changes and muffler service. Retail chains such as K-mart and Sears are chosen for their convenient locations and pricing.

"On a positive note for dealerships, they certainly have the right equipment and training for virtually any type of service work, meaning one-stop shopping for repair and maintenance," said Harbicht. "For luxury owners, dealership visits have additional benefits. Luxury dealers generally give more personal service and many provide loaner cars to minimize inconvenience. Lower price sensitivity among luxury owners also reduces the likelihood of price shopping

for service. These factors contribute to the higher customer retention of luxury dealerships."

The study indicates that aftermarket facilities are more likely to handle maintenance and oil changes, while dealership service facilities complete a larger share of more difficult repair work. In the final analysis, this helps dealers keep the larger share of overall post-warranty spending, retaining more than one half of the customer-pay service dollars.

The study, based on responses from more than 28,300 owners of 1996 model-year vehicles, is designed to provide automotive service organizations with valuable, relevant information to assist them in improving customer satisfaction.

J.D. Power and Associates can be accessed through the Internet at www.jdpa.com.