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

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 Study(SM).

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.

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/.

  Overall Customer Satisfaction with Dishwashers
  (Based on a 1,000-point scale)
  Bosch               841
  KitchenAid          832
  LG                  821
  Maytag              813
  Kenmore Elite       812
  Industry Average    793
  Kenmore             786
  Whirlpool Gold      782
  Whirlpool           773
  GE Appliances       765
  GE Profile          762
  Frigidaire          749

  Overall Customer Satisfaction with Free-Standing Ranges
  (Based on a 1,000-point scale)
  Maytag              823
  Kenmore Elite       817
  KitchenAid          816
  Whirlpool Gold      815
  Kenmore             807
  Whirlpool           801
  Industry Average    801
  Frigidaire          800
  GE Profile          798
  GE Appliances       795
  Hotpoint            780
  Jenn-Air            756

  Overall Customer Satisfaction with Built-In Cooktops and Wall Ovens
  (Based on a 1,000-point scale)
  GE Appliances       801
  Whirlpool           799
  GE Profile          798
  Jenn-Air            794
  Industry Average    793
  KitchenAid          778

  Overall Customer Satisfaction with Freezer-On-Top Style Refrigerators
  (Based on a 1,000-point scale)
  Whirlpool           775
  GE Appliances       760
  Frigidaire          749
  Industry Average    744
  Kenmore             737
  Hotpoint            702

  Overall Customer Satisfaction with Side-by-Side and French Door Style
  Refrigerators
  (Based on a 1,000-point scale)
  Samsung             829
  Whirlpool Gold      819
  Kenmore Elite       812
  Kenmore             806
  LG                  803
  Sub-Zero            803
  Amana               802
  Industry Average    797
  KitchenAid          796
  Whirlpool           795
  Maytag              790
  Jenn-Air            786
  Frigidaire          784
  GE Appliances       783
  GE Profile          780
  GE Monogram         766

  Overall Customer Satisfaction with Over-the-Range Microwave Ovens
  (Based on a 1,000-point scale)
  Kenmore             805
  Whirlpool Gold      805
  GE Appliances       803
  GE Profile          796
  Industry Average    795
  Whirlpool           792
  Frigidaire          791
  Maytag              781

  Overall Customer Satisfaction with Countertop Microwave Ovens
  (Based on a 1,000-point scale)
  GE Appliances       789
  Sharp               786
  Panasonic           784
  Kenmore             779
  LG                  775
  Whirlpool           775
  Emerson             769
  Industry Average    769
  Amana               763
  Hamilton Beach      759
  Frigidaire          758
  KitchenAid          745
  Sanyo               723

  Overall Customer Satisfaction with Clothes Washers
  (Based on a 1,000-point scale)
  LG                  840
  GE Profile          815
  Kenmore Elite       808
  Maytag              805
  Fisher & Paykel     802
  Bosch               799
  Samsung             796
  Industry Average    793
  GE Appliances       788
  Kenmore             787
  Frigidaire          786
  Whirlpool           786
  Amana               769
  Hotpoint            756
  Estate              751
  Roper               739

  Overall Customer Satisfaction with Clothes Dryers
  (Based on a 1,000-point scale)
  LG                  832
  Samsung             825
  Maytag              813
  GE Profile          809
  Kenmore Elite       806
  Fisher & Paykel     801
  Industry Average    789
  Bosch               786
  Whirlpool           782
  Frigidaire          779
  GE Appliances       779
  Kenmore             773
  Roper               754
  Estate              742
  Hotpoint            736

Source: J.D. Power and Associates

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