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J.D. Power and Associates Reports:
High Reliability of Major Home Appliances May Reduce Need for Extended Warranties
In Seven Kitchen Appliance Segments, Bosch, GE Appliances, Kenmore, Maytag, Samsung,
Whirlpool and Whirlpool Gold Lead Customer Satisfaction Rankings; LG Ranks Highest in
Both Laundry Appliance Segments
WESTLAKE VILLAGE, Calif.: 30 October 2007 — Although most major home appliances exhibit strong reliability, a considerable percentage of consumers still purchase extended warranties—which, in many cases, may not be utilized, according to the J.D. Power and Associates 2007 Major Home Appliance StudySM released today.
The study measures customer satisfaction in nine segments of major home appliances: dishwashers; free-standing ranges; built-in cooktops and wall ovens; freezer-on-top style refrigerators; side-by-side and French door-style refrigerators; clothes washers; clothes dryers; over-the-range microwave ovens; and countertop microwave ovens. The study, now in its third year, examines customer satisfaction with microwave ovens for the first time. Customer satisfaction is measured based on performance in six factors: operational performance (including how well the appliance functions, noise level and energy efficiency); operational features (such as the number of settings available and appliance capacity); ease of use; styling and feel; price; and warranty.
The study finds that during the first two years of ownership, approximately one in 10 consumers report some kind of problem with their major appliance. However, many of these problems can be resolved by following instructions in the owner’s manual or on the manufacturer’s Web site. Relatively few problems actually require a service visit.
Despite this high degree of reliability, many consumers purchase an extended warranty for their appliances. Among owners of refrigerators, stoves, dishwashers and laundry appliances, approximately 25 percent report purchasing an extended warranty, while approximately 15 percent of microwave oven owners do so.
“Extended warranties certainly provide a degree of peace of mind,” said Dale Haines, senior director of the real estate and construction industries practice at J.D. Power and Associates. “With some appliances—particularly those with complex electronics and potentially high repair costs—purchasing an extended warranty may make sense. However, major appliances tend to be very reliable, and consumers should consider very carefully—depending upon their circumstances—whether an extended warranty is worth the additional cost.”
In satisfying customers with major kitchen and laundry appliances, Bosch, GE Appliances, Kenmore, LG, Maytag, Samsung, Whirlpool and Whirlpool Gold rank highest in various segments.
“Particularly strong performers include Bosch, LG and Samsung, which have achieved consistently high satisfaction levels in consecutive years,” said Dale Haines, senior director of the real estate and construction industries practice at J.D. Power and Associates. “For two consecutive years, Bosch has ranked highest in the dishwashers segment and LG has ranked highest among clothes washers, while Samsung has earned an award in a refrigerator segment for three consecutive years. This is especially impressive considering the high levels of quality and reliability that many appliance manufacturers attain.”
Dishwashers
For a second consecutive year, Bosch ranks highest in customer satisfaction with dishwashers, performing particularly well in the areas of operational performance (which includes dishwasher noise level and energy efficiency); styling and feel; and ease of use. Following Bosch in the rankings are KitchenAid and LG, respectively.
Free-Standing Ranges
Maytag ranks highest among free-standing ranges (defined as units containing both a range and oven that are not built into a kitchen countertop), and performs particularly well in ease of use and operational performance. Kenmore Elite and KitchenAid follow Maytag in the rankings, respectively.
Built-In Cooktops and Wall Ovens
GE Appliances ranks highest in satisfying consumers with built-in cooktops and wall ovens, performing well in warranty and price. Whirlpool and GE Profile follow GE Appliances in the segment rankings, respectively.
Freezer-On-Top Style Refrigerators
Whirlpool ranks highest in customer satisfaction with freezer-on-top style refrigerators, and performs particularly well in all six factors. Following Whirlpool in the segment rankings are GE Appliances and Frigidaire, respectively.
Side-By-Side and French Door Style Refrigerators
Performing particularly well in price, Samsung ranks highest in satisfying customers with side-by-side and French door-style refrigerators. 2007 marks the third consecutive year that Samsung receives an award in a refrigerator segment. Whirlpool Gold and Kenmore Elite, respectively, follow Samsung in the segment rankings.
Over-the-Range Microwave Ovens
Among over-the range microwave ovens (defined as built-in units that contain both a microwave oven and a ventilation hood), Kenmore and Whirlpool Gold rank highest in customer satisfaction, in a tie. Kenmore performs particularly well in the price factor, while Whirlpool Gold performs well in the operational performance and warranty factors. Following Kenmore and Whirlpool Gold in the rankings is GE Appliances.
Countertop Microwave Ovens
GE Appliances ranks highest in the countertop microwave ovens segment, performing particularly well in ease of use and operational performance. Following GE Appliances in the rankings are Sharp and Panasonic, respectively.
Clothes Washers
For a second consecutive year, LG ranks highest in satisfying customers with clothes washers. LG performs particularly well in four of the six factors: ease of use; operational performance; styling and feel; and operational features. GE Profile and Kenmore Elite, respectively, follow LG in the rankings.
Clothes Dryers
LG ranks highest in customer satisfaction with clothes dryers, performing particularly well in four of six factors: ease of use; operational performance; styling and feel; and operational features. Samsung and Maytag, respectively; follow in the segment rankings.
The 2007 Major Home Appliance Study is based on 22,637 responses from consumers who purchased one or more new major home appliances through a retail store, their new-home builder, or received one through other means (such as a gift) during the previous 24 months. Each respondent was allowed to evaluate up to three different appliances. For more information and complete rankings on major home appliances, please visit JDPower.com.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm’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 leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 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
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2007 Major Home Appliance Study The 2007 Major Home Appliance Study measures customer satisfaction in nine segments of major home appliances: dishwashers; free-standing ranges; built-in cooktops and wall ovens; freezer-on-top style refrigerators; side-by-side and French door-style refrigerators; clothes washers; clothes dryers; over-the-range microwave ovens; and countertop microwave ovens. Customer satisfaction is measured based on performance in six factors: operational performance (including how well the appliance functions, noise level and energy efficiency); operational features (such as the number of settings available and appliance capacity); ease of use; styling and feel; price; and warranty.  Enlarge Video Player
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