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J.D. POWER AND ASSOCIATES STUDY UPDATE REVEALS ONE-PRICE CAR DEALER PROFITS, GROWTH AND CUSTOMER SATISFACTION ARE UP

 AGOURA HILLS, Calif., Jan. 26 /PRNewswire/ -- New information on the development of the no-haggle auto retailing philosophy shows that one-price retailers' profit and productivity levels are higher than those using traditional selling techniques. According to J.D. Power and Associates' study of retailing trends, the elimination of price haggling at some retailers also leads to a substantially higher degree of customer satisfaction.
 Based on research from "Volume 2, One-Price Selling: Revolution in the Showroom(SM)," J.D. Power and Associates estimates that the growth in one-price retailers from 1991 to 1992 was 71 percent, and the potential for future growth in the number of no-haggle dealerships is high. An estimated 15 percent of the auto retailers in the United States are projected to be operating on this basis by year-end 1993.
 "Important to note," commented Doris Ehlers, account director and author of the study, "is the fact that while current one-price dealers are high on the concept, a third of those who were operating on that basis a year ago have abandoned the idea. Nevertheless, the number of no-haggle retailers increased dramatically from 1991 to 1992."
 The analysis accompanying the report cautions retailers to carefully consider the pros and cons of a no-haggle concept because of the customer reaction. "It is more than simply a matter of posting prices on vehicles and selling without negotiation. Salespeople must be prepared with product knowledge and value information instead of price," said Ehlers.
 J.D. Power and Associates' "Volume 2, One-Price Selling: Revolution in the Showroom(SM)" includes details on the positive impact that one-price selling has had on overall profitability, salesperson compensation, vehicle inventory, advertising expenses and finance and insurance profits. In addition, it identifies changes in shopping patterns that are caused when a one-price operation is introduced into a market.
 Critical to one-price selling success is its credibility with customers. One-price retailers are challenged to find the right advertising message and pricing strategies that will convince customers that this is both a new way and a beneficial way to purchase a new car.
 J.D. Power and Associates is an international marketing information firm with headquarters in Agoura Hills. The firm has offices in Torrance, Calif.; Detroit; Westport, Conn.; and Tokyo. The firm is best known for its marketing information and consulting in the areas of consumer opinion and customer satisfaction.
 -0- 1/26/93
 /CONTACT: Patricia A. Patano or Jim Olson of J.D. Power and Associates, 818-889-6330/


CO: J.D. Power and Associates ST: California IN: AUT SU:

LS-JB -- LA017 -- 8884 01/26/93 08:05 EST
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Date:Jan 26, 1993
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