Are You Sure About J.D. Power and Associates?
Presenting Copious Data Seems Like a (Convincing) Marketing Tactic
SYNOPSIS: To the purpose of publication titling, herein, the following “Company Overview”, “Marketing Analysis” and “Conclusion” sections provide detail that suffices reason to question J.D. Power and Associates, today. J.D. Power, himself, appears to be a genuine credit to modern consumerism. Today, however, who can substantiate whether any backroom handshakes and deals are not behind any organization receiving an “award” from today’s J.D. Power company? Poignantly, as referenced in conclusion, in comparing reviews for a specific vehicle, J.D. Power and a competitor evaluation company (Repair Pal) had opposite reviews. One approved; the other disapproved. With no one to substantiate whether J.D. Power warrants the trust it insists consumers should have - just because they throw a lot of data at You - why should anyone assume J.D. Power has any more credibility than Anyone Else?
J.D. Power and Associates
Analysis and Informational Report
Maurice Antoine Redwine
Department of English and Linguistics, Purdue University- Fort Wayne
ENGL 33101: Business & Administrative Writing DIS
Dr. Suzanne Kesler Rumsey
13 FEBRUARY 2024 [Last Edited: 15 SEP 2024]
J.D. Power and Associates
Company Overview
J.D. Power and Associates proclaims authority as “a global leader in consumer insights, advisory services and data and analytics.”1 People may exclusively associate this organization with the automotive industry. Also interchangeably known as J.D. Power, J.D. Power and Associates performs the analytical research and data behind many, major industries. In providing this research and data, J.D. Power has become a preeminent source for consumer product evaluations and more.
J.D. Power has a “Ratings Methodology | How J.D. Power Ratings Work” page, which details the mechanics behind how the organization produces “independent and unbiased ratings, reviews, and awards”.1 The page states that J.D. Power (and Associates) uses “detailed survey feedback” from verified car owners. These car owner feedback surveys are stated to provide details from the first, three months of car ownership. Subsequently, the survey feedback is supposed to provide details of the first, three years of car ownership. The J.D. Power methodology claims that its surveys are submitted and analyzed on an annual basis. Accordingly, this methodology purports its information is bona fide. A self-pronouncement proclaims validation because J.D. Power is “unparalleled in delivering the most accurate and unbiased values and insights”.
Again, J.D. Power provides analytics for more than the automotive industry. Based upon public image and web presence, the company appears to provide more emphasis on the automotive industry.
A superficial, online research for secondary validation of what gives J.D. Power its credibility provides no results. Per this superficial research, J.D. Power makes unchallenged proclamations. Concordantly, multiple organizations can be found utilizing J.D. Power as a source for generating credibility to their own presentations.
A more in-depth search for credence to support J.D. Power and Associates’ authority as a trusted source for the information and services it provides included the Better Business Bureau’s website. The Better Business Bureau (BBB) is the popular, commonplace entity that consumers routinely consult for authenticating the veracity or trustworthiness of a business. Consumers also use the Better Business Bureau, significantly, to file complaints.
According to the BBB, it is a nonprofit organization that offers accreditation for registered businesses “To Promote Healthy Business Interaction.”10 The law firm Winston & Strawn LLP developed a Law Glossary that lists the BBB as a “private organization that provides the public with information on businesses and charities”, while offering dispute resolution services through its complaint system. “The BBB offers guidance to companies on proper practices.”9
The Better Business Bureau was the lone entity found in a somewhat in-depth research, as a secondary, trusted source to verify J.D. Power’s business credibility. J.D. Power says it is “[t]he world's most trusted consumer ratings.” However, such an apparent, important organization does not have any easily researchable accrediting authorities. No accrediting agency is easily found to provide validation of J.D. Power and its claims of consumer and business reliability. A search for the company on the BBB’s website presently displays: “This business profile is being updated”.5
the balance is a part of the Dotdash meredith publishing company. It hosts an article from Dori Zinn, titled “What Is JD Power?”.7 Likewise, Vox hosts an article about J.D. Power and Associates, from Aditi Shrikant.6 Each of these respective articles provide perspective on J.D. Power. Neither the writers nor their respective publishers are accrediting entities. They also do not have the signatory status of a nonprofit that a society might assume to have an unbiased purpose as the Better Business Bureau.
J.D. Power claims to provide “advanced data solutions that empower industry transformation”. J.D. Power claims to deliver truth that transforms. Nevertheless, an interested consumer would not easily find an accrediting agency to substantiate these claims. A consumer and business entity is largely left to trust articulated publications, or to trust J.D. Power.
Miguel Delgado-Rodriguez and Javier Llorca created a glossary on the different types of biases that exist. 4 They define the “concept of bias”, first. “Biases can be classified by the research stage in which they occur or by the direction of change in a[n] estimate.” Their article states that the concept of bias involves “the lack of internal validity”. Bias can also involve the “incorrect assessment of the association between an exposure and an effect”. That effect regards “the target population”. “[T]he statistic estimated has an expectation that does not equal the true value” when there is incorrect association from an evaluation. This explanation of bias impacts the proposed validity of a research company that heavily relies upon consumer response. If the consumer is not an expert, influence from numerous social interactions can affect how a person may respond to questions about a product. But, according to J.D. Power, this is how their data is garnered. And there is no easily-accessible accrediting agency to provide consumers with a confidence rating that validates J.D. Power.
HISTORY
"We have been capturing and analyzing the Voice of the Customer globally for 50 years. Our industry benchmarks and reputation for independence and integrity have established J.D. Power as one of the world’s most well-known and trusted brands."
“How J.D. Power Ratings Work” is an article from Tom Scheve.3 It describes how “Dave Power was a Ford employee who didn't find management especially receptive to consumer opinions.” That was J.D. “Dave” Power’s motivation to eventually “become the world's largest automobile consumer-research company.”
Power’s early industry work was with analytical roles such as marketing research for Buick, and a financial analyst for Ford.3 He worked for a chainsaw company, at one point. He assessed a chainsaw and gave feedback to the company. That feedback reflected consumer desire for a lighter chainsaw. Company sales “soared”.
Mr. Power’s early marketing research “showed him U.S. automakers weren't interested in hearing about the consumers' opinions; money was being made, and the manufacturers dictated taste in the showroom.” He maintained his belief that consumer input would benefit product manufacturers. Power started his own research company from his kitchen. Toyota expressed interest in Power’s research. Toyota wanted to enter the American marketplace. Toyota took advantage of Power’s research data on the American consumer.
According to the J.D. Power website, “[w]e have been capturing and analyzing the Voice of the Customer globally for 50 years.”1 That started with a man whose vision compelled him to challenge the business world norm. According to Tom Scheve and the J.D. Power website, businesses began to incorporate consumer input because of J.D. Power.
PRODUCTS AND SERVICES
J.D. Power and Associates presents consumer and business product research, ratings and awards, in varied areas. Those areas are also fields where the company offers business and consumer consultation. The following exemplifies the type of information and detail J.D. Power and Associates offers within each industry:
- Automotive (hyperlinks)
· Benchmarks, Insights & Awards
· Digital
· Advisory
· Product Demos and Data Updates
- Home
· Retail Tips and Trends
· “Competitive insights at your fingertips.”
· “Understand evolving customer expectations.”
· Performance Benchmarks
· Home and Retail Solutions
· Actionable Insights
· Consultation and Expertise
· Measurable Results
- Healthcare
· Healthcare Solutions
· “The Future Of Healthcare Consumerism”
· “Healthchare Benchmarking Research Analytics”
· Commercial Member Health Plan Study
· Individual Life Insurance Study
· Telehealth Satisfaction Study
· Pharmacy Study
· Healthcare Digital Experience Study
- Finance (hyperlinks)
· Banking
· Wealth
· Payments
· Lending
· More Solutions
- Insurance (hyperlinks)
· P&C Benchmarking Research Analytics
· Life Insurance Benchmarking Research Analytics
· Customer Engagement Programs
· Risk Analytics
· Data
· “Expertise & Implementation”
The above is a sample of website section headings to some of the in-depth data J.D. Power offers consumers and businesses. That list is a fraction of the areas J.D. Power and Associates claim to analyze. This company additionally analyzes senior living, technology, media, telecommunications, hospitality and travel, utilities and customer service solutions. In each of the areas of analysis and consultation, J.D. Power presents an itemization of the company’s “capabilities” versus “solutions”. Succinctly, the information presented for each service, product, data and analysis is so in-depth that it gives the impression of an internet rabbit-hole. A simple inquiry into one aspect of an industry can appear to lead to information overload.
MARKETING ANALYSIS (Logos, Pathos and Ethos)
The website for J.D. Power and Associates focuses upon providing extensive information. That somewhat-academic presentation may be intentional. Fostering an overwhelming sense of knowledgeability may enhance a sense of trustworthiness. In the realm of business consultation and consumer advisement, the mountain of information may be J.D. Power’s intentional marketing strategy.
According to Adobe Experience Cloud, “[t]he purpose of a marketing strategy is to generate brand awareness, nurture customer relationships, and convert leads into paying customers.”8 For J.D. Power, the onslaught of information for consumer products, business forays and analytical research for everyone appears to be strategic.
J.D. Power may have developed marketing strategy around specific audience assumptions. J.D. Power and Associates is an organization for products, consumers, and businesses. Consumers and businesses who rely upon or seek trustworthy information to make informed decisions appear as targets. Essentially, with a formal, business and informational marketing genre, J.D. Power possibly targets people and businesses who appreciate data-driven material.
The sophisticated and futuristic color scheme in J.D. Power’s website is presented with combination fonts. The size and colors of fonts change and effect emphasis with professionalism. Website imagery is sparse. The imagery is reduced to fonts, highlighting data, and analytics with an occasional consumer photo. The consumers in the website images have a sophisticated appearance.
J.D. Power and Associates’ titular logo interchanges “J.D. Power” and “J.D. Power and Associates”. The website logic is based upon volumes of analytical information and statistics. The ethical portrait J.D. Power presents is constructed with application of historical evidence as a leading, trusted source of information. The site provides data-driven samples, examples, and images. The abundance of information may be deliberate. It may seem to convey a sense of being overwhelmed with information. Otherwise, J.D. Power presents a strictly analytical and informational appearance. This analytical conveyance relies upon the historical presence and reputation mentioned in its literature.
CONCLUSION
Elite Research Statistical Consulting provides consultation on how organizations can build credibility.2 Their advice lists and outlines components that present a face of credibility. According to Elite Research’s advice, you need to have a “good narrative”, in terms of your organization’s story. Following a good story, Elite Research says you should present your company as an efficient and effective entity with a professional website appearance and design. Subsequent to presenting a good face, Elite Research states that a website should present literature and research about your industry. “[P]roviding reports and peer-reviewed literature for viewers helps to solidify the importance of your [organization]”, Elite Research adds. And finally, Elite Research states the importance of “[c]ultivating relationships” prior to “taking action.”
Everything that Elite Research suggests to do for establishing credibility seems apparent within J.D. Power and Associates’ messaging, marketing, and appearance. In this appearance of credibility, Elite Research does not mention provision of actual substance to establish credibility. J.D. Power and Associates boasts an immense amount of data and presence based upon consumer reviews. With so much data based upon consumers instead of experts, J.D. Power does not propose how to utilize its offerings. They do not specify how sufficient it is to apply reviews from random consumers that may or may not have knowledge of what a product should be.
A reddit conversation discussed the reliability of J.D. Power versus another entity, Repair Pal.11 This conversation presented evaluations of two, distinct vehicles, by J.D. Power and Repair Pal. In the reddit evaluation, J.D. Power listed one of the two vehicles as highly reliable. The other vehicle was listed as unreliable. Using the same, two vehicles, Repair Pal rated the vehicles precisely opposite as J.D. Power.
In academia, the initial inclination may be to question reddit as a source. In dismissing reddit as a source, why would J.D. Power be accepted? J.D. Power promotes itself as an authority on numerous subjects. The basis of J.D. Power’s data comes from consumer surveys. The primary difference in credibility from J.D. Power and reddit may only be a marketing strategy.
J.D. Power appears to be a credible organization. Credibility, however, is dependent upon consumer perspective.
CITATIONS
1. J.D. Power (2024). Car Reviews, Ratings & Awards. J.D. Power. Car Reviews, Ratings & Awards | J.D. Power and Associates (jdpower.com)
2. Elite Research (2024). How does your organization build its credibility?. Elite Research, LLC. Elite Research Statistical Consulting - How does your organization build its credibility?
3. Scheve, T. (2024). How J.D. Power Ratings Work. HowStuffWorks. How J.D. Power Ratings Work | HowStuffWorks
4. Delgado-Rodriguez, M. and Llorca, J. (2004). Bias. JSTOR, Journal of Epidemiology and Community Health (1979-) 58(8), 635-641. Bias on JSTOR (pfw.edu)
5. Better Business Bureau© (nd., “This business profile is being updated”). Better Business Bureau©. JD Power | Better Business Bureau® Profile (bbb.org)
6. Shrikant, A. (27NOV2018). Who is J.D. Power, and what do his associates do?. Vox. Why every car commercial mentions J.D. Power and Associates - Vox
7. Zinn, D. (27NOV2021). What is JD Power?. the balance. What You Need to Know About J.D. Power (thebalancemoney.com)
8. Adobe Experience Cloud Team (04MAY2023). How a marketing strategy helps achieve business goals. Adobe (Adobe Experience Cloud). How a marketing strategy helps achieve business goals (adobe.com)
9. Winston & Strawn LLP (2024). What is the Better Business Bureau (BBB)?. Winston & Strawn LLP. What is the Better Business Bureau (BBB)? | Winston & Strawn Legal Glossary | Winston & Strawn
10. Better Business Bureau© (nd.). Better Business Bureau©. BBB: The Sign of a Better Business | Better Business Bureau®
11. reddit (2021). Reliability of reliability ratings (JD Power vs Repair Pal). reddit. Reliability of reliability ratings (JD Power vs Repair Pal) : r/cars (reddit.com)