J.D. Power and Associates Reports: Use of Portable Navigation Devices and Smartphone Navigation is Prevalent even among Factory-Installed Navigation System Owners

WESTLAKE VILLAGE, Calif., Nov. 18, 2010 /PRNewswire/ -- A considerable proportion of owners of factory-installed navigation systems also use portable navigation devices and smartphone navigation, according to the J.D. Power and Associates 2010 U.S. Navigation Usage and Satisfaction Study(SM) released today.

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The study finds that 36 percent of owners of factory-installed navigation systems also own a portable navigation device, and 28 percent of those owners prefer receiving directions from the portable navigation device. Similarly, 24 percent of owners of factory-installed navigation systems use a smartphone as a navigation system alternative, with 28 percent of those owners preferring to receive directions from the smartphone rather than their factory-installed system.

"Portable navigation devices and smartphone navigation both offer a less expensive and more convenient alternative to a factory-installed navigation system," said Mike Marshall, director of automotive emerging technologies at J.D. Power and Associates. "As these options become more prevalent, it's important that suppliers take into account some of the features that make these systems preferable—such as ease of use and less expensive and more frequent updates for maps and points of interest—and incorporate them into factory-installed navigation systems to better satisfy customer needs. In addition to addressing these key issues, prices of factory-installed navigation systems need to stay competitive with these other navigation devices growing in popularity."

Now in its 12th year, the study identifies seven factors that contribute to overall customer satisfaction. In order of importance they are ease of use; routing; navigation display screen; system appearance; voice recognition; voice directions; and speed of system. The study index was redesigned in 2010 to include voice recognition attributes. While voice recognition is not included on all systems, 65 percent of owners of factory-installed navigation systems indicate having this feature. The study also measures quality by examining problems per 100 (PP100) navigation systems, in which a lower score reflects higher quality.

The study finds that real-time traffic and voice recognition features continue to increase in prevalence among owners of factory-installed navigation systems. Thirty-four percent of customers indicate they have real-time traffic capabilities, up from 26 percent in 2009. Approximately two-thirds of owners of factory-installed navigation systems in 2010 indicate having voice recognition capabilities, compared with 59 percent in 2009.

The Clarion system supplied to the Ford Fusion ranks highest in customer satisfaction with factory-installed navigation systems and performs particularly well in speed of system; voice directions; ease of use; and voice recognition. The Clarion navigation system supplied to the Ford Flex follows in the rankings, and the Clarion system supplied to the Ford Taurus ranks third.

The study also identifies the following navigation system trends:

• Forty percent of owners say that locking out certain features of the navigation system while the vehicle is moving is appropriate for safety reasons.
• While female owners perceive a higher value for their navigation system than do male owners, they are willing to pay nearly $100 less, on average, for a factory-installed navigation system.
• Customers 18-25 years old provide the highest ratings for the value of their navigation system, compared with other age groups, and are also willing to pay the highest prices for their navigation system.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company's quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/.  

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

SOURCE J.D. Power and Associates

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