Customer Satisfaction Survey

An emailed newsletter caught my eye a few minutes ago, with an article about the just-released American Consumer Satisfaction Index (ACSI) for the second quarter of 2004. Although the article was trumpeting Apple's score as the highest of any computer manufacturer (and, indeed, as the ACSI commentary states, "...the highest score any PC manufacturer has achieved in the 11 years of ACSI measurement"), that's not the most interesting tidbit to come out of the study, at least not to me.

One of the study's categories is "News and Information Sources" and here's the summary of the 2nd quarter survey results (emphasis mine):

News and Information: Not Much News While the news and information industry climbs by 1% this quarter to 75, pushed upwards by two small company-level changes, what is noteworthy is how little things change in this industry. From the customers’ point of view, no dramatic or new developments have occurred in the past 3 years. Not a single news and information website has moved significantly up or down more than 2 points during that period and no company deviates substantially from the industry average - all five are packed tightly between 72 and 75. This suggests that nobody has yet been able to create a real competitive advantage and that there is little differentiation among the players. But perhaps more importantly, when compared to its primary competition – print newspapers – the electronic news and information industry scores 10% higher, 75 compared to 68.

This has significant implications for the mainstream print media. As the ACSI website puts it, "The ACSI model is a set of causal equations that link customer expectations, perceived quality, and perceived value to customer satisfaction (ACSI). In turn, satisfaction is linked to consequences as defined by customer complaints and customer loyalty – measured by price tolerance and customer retention." If you cut through the consultant-speak, this means that people will eventually stop doing business with a company that has a lower score, in favor of a company with a higher score.

I just mailed a check to the MRT for $132, for another 12 months of daily newspapers. My 12 month subscription to the online version of the Wall Street Journal is just $79. The online version of the MRT is free. At some point, the satisfaction of holding a handful of newsprint while drinking a cup of coffee in the morning will no longer outweigh the inconvenient immediacy of the online alternative.

T minus 365 and counting.

Comments

Wow. I'd forgotten how much a paper costs when you get one every day. Just the thought of all that newsprint piling up every day gives me the heebie-jeebies.

Posted by: Scott Chaffin at August 31, 2004 07:52 AM
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