Auto Rating Firm Rolls out New Survey - on Credit Cards

By Meece, Mickey | American Banker, November 9, 1995 | Go to article overview

Auto Rating Firm Rolls out New Survey - on Credit Cards


Meece, Mickey, American Banker


The company that sets the standard for consumer research in the automotive industry has ventured down a new road - into credit cards.

J.D. Power & Associates, whose customer satisfaction data can make or break an auto model, recently completed its first scan of the card market a survey of 7,200 cardholders that yielded ratings of 21 major issuers.

The AT&T Universal Card came out on top, followed by two other nonbank competitors - Discover and Household International's credit card subsidiary.

Jacksonville, Fla.-based AT&T Universal scored a 113, which Power describes as a weighted average of the "six dimensions comprising customer satisfaction": billing and payment quality, interest rate, credit and cash advance limits, point of sale processing quality, rewards, and fees.

The industrywide average would be 100. Discover and Household Bank came in at 106. Three banks - Bank of New York, Bank One, and Citibank - also scored above 100.

The results showed billing and payment quality is the "key differentiating dimension of satisfaction," said Andrew March, group director of J.D. Power.

"Over the long run," Mr. March said, "the customers are saying to the issuers that these are the areas they need to focus on that are important and that will differentiate one issuer from another."

Going against the grain of conventional credit card thinking, the survey showed that rewards and fees were the least significant factor in measuring customer satisfaction. Mr. March said this is not surprising because it was a retention study. "If it was an acquisition study, you might see interest rates as most important."

Stuart Feldstein, president of SMR Research, Budd Lake, N.J., said that for the past five years rates, fees, and rewards, have been driving cardholders' credit card choices.

J.D. Power wants issuers to believe that what makes people decide to hold onto and use a card has more to do with customer service and billing, Mr. Feldstein said.

"I will contend that people make decisions on what cards to use and keep based on the features of the card," he said.

Low-interest balance-transfer offers are driving attrition, Mr. Feldstein added, not how nice the bill looks or how accurate it is. "I know of nobody who changes their mind (about card usage) for that reason."

When American Express Co. saw a decline in Optima cardholders a couple of years ago, Mr. Feldstein said, it was because the cards had fees, high interest rates, and no rewards - not because of customer service and billing, which are American Express strong points.

"Customers do care about fees, rates, and rewards," Mr. Feldstein said. "That I'm positive about."

Experts in customer satisfaction and retention strategies have pointed out that there are limitations in much of the research on the subject.

"Satisfaction surveys are simply a poor litmus test for satisfaction," Frederick F. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Auto Rating Firm Rolls out New Survey - on Credit Cards
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.