Who benefits from the research? Problems with J.D. Power's approach

Like that in Consumer Reports, J.D. Power's research has helped consumers by pressuring vehicle manufacturers to improve the reliability of the cars and trucks they sell. But even more in J.D. Power's case there are reasons for concern.

1. Motivation

For all of its faults, the heart of Consumers Union is generally in the right place. Though they're a bit stuck in their ways, the primary goal of the people who publish Consumer Reports is to help consumers.

In contrast, far and away the #1 goal at J.D. Power is to make money. Now, there is nothing wrong with seeking to make money in itself. This is what businesses are supposed to do. But it becomes an issue when the pursuit of profits not only limits the extent to which consumers receive helpful information, but can actually encourage distorted consumer perceptions of the information that is provided.

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PlanoA4 - 8/10/2006 1:38:06 PM

+1 Boost

Will- actually you may be correct, however his points are very valid. Hence the posting of this article. He basically explains the basic assumptions consumers make and the limitations that JD Power surveys have.

I agree with most of the points he makes, and he shows alternate methodologies that can give a clearer picture. JD Power doesn't really want the picture to be clear to the consumer, it simply posts the survey results out there and you make “assumptions” and “informed” decisions based on them. The people that get the concise information have to pay for it.

chewy - 8/10/2006 3:16:35 PM

+1 Boost

TrueDelta was started by some guy not long ago, of course they aren't respected, because no one really knows about it. It might work.

mkaresh - 8/11/2006 9:39:34 AM

+1 Boost

I'm the guy, and I am just getting started. If I thought J.D. Power and CR were doing a great job, I wouldn't be spending so much time and money to get this research started. But they're not. This and other pieces I've posted to the site (you'll see a list in the sidebar to this editorial) explain why I think new research is necessary.