J.D. Power

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J.D. Power
FormerlyJ.D. Power and Associates
IndustryMarket Research
FoundedLos Angeles, California (1968)
FounderJ.D. Power III
Troy, Michigan
Key people
Dave Habiger, President and CEO
OwnerThoma Bravo
Number of employees

J.D. Power is an American data analytics and consumer intelligence company founded in 1968 by James David Power III. The company, headquartered in Troy, Michigan, describes itself as "a global data & analytics company."[1] It conducts surveys of customer satisfaction, product quality, and buyer behavior for the automotive, banking & payments, wealth & lending, telecommunications, insurance, health, travel and utilities sectors. The firm is best known for its customer satisfaction research and benchmarking on new-car quality and long-term dependability. Its service offerings include industry-wide syndicated studies, proprietary research, consulting, training, and automotive forecasting.[2]

McGraw Hill Financial purchased from James David Power III in April 2005. Dave Habiger was named its president and CEO in March 2018, with the objective of continuing to aggressively build and enhance the company's data and analytics and customer insights leadership. On July 30, 2019, equity firm Thoma Bravo announced that they had reached an agreement to buy the company from XIO Group for an undisclosed sum. On December 16, 2019, J.D. Power announced a merger with Autodata Solutions, a provider of data and software for the automotive ecosystem. The merger marked the completion of J.D. Power's acquisition by Thoma Bravo, a leading private equity firm, and owner of Autodata Solutions.

J.D. Power reportedly charges hundreds of thousands of dollars to carmakers for access to its survey results, a large fee to mention their awards in advertisements, and has a service to help companies make improvements that should raise their rankings.[3]


J.D. Power was founded in 1968 by James David Power III. Power had previously worked in advertising and doing customer research for the Ford Motor Company, where he felt customer satisfaction data was too often overlooked. He later joined Marplan, and then McCulloch, a chainsaw manufacturer. He left his position at McCulloch and founded J.D. Power and Associates on April 1, 1968. The company incorporated on February 7, 1969.

In 1973, the company first drew significant national attention when Julia P. Power, working from the results of customer surveys, discovered a design flaw in the O-rings of certain Mazda rotary engines. The report was then publicized by the Wall Street Journal and widely repeated in other outlets. In the following years, J.D. Power and Associates became particularly known for its automotive customer satisfaction rankings, while continuing to work in other areas such as food and computers. The firm created the first Dealer Attitude Study in 1976 and the U.S. Automotive Customer Satisfaction Index in 1981.[4][5]

In a commercial during Super Bowl XVIII in 1984, Subaru became the first company to use its ranking in the J.D. Power Awards to promote its product, which one journalist described as a "watershed moment for the company". In the decades since, J.D. Power's rankings have appeared in more than two billion advertisements and become "an international household name".[6][7]

In 2002, the company moved its headquarters from Agoura Hills, California, to Westlake Village in Ventura County.[8] In 2005, James David Power was ready to retire and sold the firm to McGraw Hill Financial and also resigned as chairman. In September 2016, McGraw Hill sold JD Power to XIO Group for US $1.1bn.

J.D. Power expanded its offerings to sell financial and insurance products through car dealerships in 2017.[9] In March 2018, Dave Habiger was named its president and CEO, with the objective of continuing to aggressively build and enhance the company's data and analytics and customer insights leadership.[10]

On December 16, 2019, J.D. Power was acquired by Thoma Bravo and, as part of this acquisition, JD Power was merged with Autodata Solutions, a provider of data and software for the automotive ecosystem.

Market research[edit]

A selection of the awards presented to the Ford Motor Company by J.D. Power in 2007

J.D. Power's market research[11] and benchmarking studies are drawn from deep analysis of consumer behavior and market data. J.D. Power ratings are based on the survey responses of randomly selected and/or specifically targeted consumers. Companies which have used J.D. Power surveys range from automotive, cellphone, and computer manufacturers to home builders and utility companies.

Automotive surveys[edit]

J.D. Power conducts multiple annual studies of the automotive industry in the U.S. as well as in other countries. The Vehicle Dependability Study (VDS) is a measure of problems experienced after three years of ownership, while the Initial Quality Study (IQS) is a measure of problems experienced within the first 90 days of ownership.[12] Other surveys include the APEAL survey, reflecting consumer's attitudes towards a vehicle's attributes, dealership service surveys, and customer purchasing experience surveys. Similar versions of the Vehicle Dependability and Initial Quality Studies are performed internationally, and usually released with the country's name, followed by the same title, e.g. China Initial Quality Study.[13]

International research[edit]

J.D. Power research surveys are conducted in the local languages of India, Japan, Taiwan, China, Philippines, Indonesia, Singapore, Thailand, Malaysia, Vietnam, Canada, Mexico, Europe, Australia, Germany, UAE and the UK.[14]

See also[edit]


  1. ^ "A global Data & Analytics company".
  2. ^ "USNews.com: From boats to Internet service, J. D. Power lives to rank". US News. 2004-03-07. Archived from the original on 2013-10-09. Retrieved 2007-04-05.
  3. ^ Morran, Chris (2010-05-10). "Can You Trust Those Awards You See In Auto Ads?". Consumer Reports.
  4. ^ Al Lewis (December 18, 2013). "How J.D. Power made companies listen to the customer". Market Watch. Retrieved April 10, 2013.
  5. ^ Taryn Luna (January 12, 2014). "Seven Things You Need to Know about James David Power". Boston Globe. Retrieved April 10, 2018.
  6. ^ Roger Schlueter (April 1, 2017). "This is how J.D. Power became a big deal". Retrieved April 10, 2018.
  7. ^ Eric Schilling (December 6, 2017). "Everything You Ever Wanted To Know About The JD Power Awards". Jalopnik. Retrieved April 10, 2018.
  8. ^ "J.D. Power Moving to New Headquarters". Los Angeles Times. April 11, 2002. Retrieved April 10, 2018.
  9. ^ "Dave Habiger, J.D. Power's new CEO, is tech expert and car guy". Automotive News. 2018-03-21. Retrieved 2019-12-16.
  10. ^ "New CEO Says His Job Is to Help J.D. Power Grow Faster". Bloomberg.com. 2018-03-21. Retrieved 2020-09-09.
  11. ^ "Why every car commercial mentions J.D. Power". November 27, 2018. detailed market research
  12. ^ Cheryl Jensen (October 30, 2012). "Why Consumer Reports and J.D. Power Are So Different". The New York Times. Retrieved April 10, 2018.
  13. ^ "Domestic and International Brand Vehicle Initial Quality Gap Continues to Narrow, J.D. Power Finds". JD Power. Retrieved April 10, 2018.
  14. ^ About J.D. Power | J.D. Power

External links[edit]