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Thursday, August 16, 2007

Apple, Google satisfaction ratings slip


American consumers still like Apple and Google, but not as much as they did last year, a new report indicates.


Both companies rank near the top of their respective industries in the latest update of the University of Michigan's American Customer Satisfaction Index, which will be released today. But both companies' rating in the index slipped over the past year.


That decline could have long-term repercussions for both companies, said Claes Fornell, a business professor at the University of Michigan who heads up the index. Companies who see their customer satisfaction rating change often see their profits change in the same direction, Fornell said.


On the flip side from Google, Yahoo has seen its rating in the index increase over the past year, so its score now is nominally higher than Google's.


"Whenever users are becoming more satisfied with your service, that's going to help," Fornell said.


Apple's rating fell from an 83 last year to a 79, while Google dropped from 81 to 78. Yahoo's score increased from 76 to 79.


All three were graded on a 100-point scale using responses from a national survey. Any change of two or more points is considered statistically significant, as is a difference of two or more points in any companies' scores.


Apple's score dropped because of customers complaining about the reliability of its products, Fornell said. The company's sales and computer shipments have grown rapidly in


recent years, outpacing the broader PC industry.
"We know it's just difficult to maintain quality at all levels if you do that," Fornell said.


While Apple is happy to remain the top-ranked PC maker the index, the company "is going to try even harder," after its rating slipped, said company spokeswoman Natalie Kerris.


"Customer satisfaction is very important to Apple," she said.


Despite the decline, Apple's score was still three points higher than that of Hewlett-Packard, the second-highest-ranked computer maker.


Google's decline was a result of what was going on around it, Fornell said. While Yahoo and Ask.com have revamped the look and feel of their homepages, Google's has stayed largely static.


"Google's is a bit stale compared with Ask.com," said Fornell, noting that Ask's rating increased four points from last year to a 75.


The problem for Google is that it has to be cautious about updating its site to match those of competitors, he said.


"They run the risk of alienating people that really like it," he said.


"We are continually working to provide the best online experience for our users and welcome strong competition that helps drive market innovation," a Google representative said in a statement.


A Yahoo spokesperson said, "Yahoo is pleased with the results of this year's ACSI study, which reflect our continued efforts to enhance the consumer experience for our more than 500 million users."


More News
American consumers still like Apple and Google, but not as much as they did last year, a new report indicates.


Both companies rank near the top of their respective industries in the latest update of the University of Michigan's American Customer Satisfaction Index, which will be released today. But both companies' rating in the index slipped over the past year.


That decline could have long-term repercussions for both companies, said Claes Fornell, a business professor at the University of Michigan who heads up the index. Companies who see their customer satisfaction rating change often see their profits change in the same direction, Fornell said.


On the flip side from Google, Yahoo has seen its rating in the index increase over the past year, so its score now is nominally higher than Google's.


"Whenever users are becoming more satisfied with your service, that's going to help," Fornell said.


Apple's rating fell from an 83 last year to a 79, while Google dropped from 81 to 78. Yahoo's score increased from 76 to 79.


All three were graded on a 100-point scale using responses from a national survey. Any change of two or more points is considered statistically significant, as is a difference of two or more points in any companies' scores.


Apple's score dropped because of customers complaining about the reliability of its products, Fornell said. The company's sales and computer shipments have grown rapidly in


recent years, outpacing the broader PC industry.
"We know it's just difficult to maintain quality at all levels if you do that," Fornell said.


While Apple is happy to remain the top-ranked PC maker the index, the company "is going to try even harder," after its rating slipped, said company spokeswoman Natalie Kerris.


"Customer satisfaction is very important to Apple," she said.


Despite the decline, Apple's score was still three points higher than that of Hewlett-Packard, the second-highest-ranked computer maker.


Google's decline was a result of what was going on around it, Fornell said. While Yahoo and Ask.com have revamped the look and feel of their homepages, Google's has stayed largely static.


"Google's is a bit stale compared with Ask.com," said Fornell, noting that Ask's rating increased four points from last year to a 75.


The problem for Google is that it has to be cautious about updating its site to match those of competitors, he said.


"They run the risk of alienating people that really like it," he said.


"We are continually working to provide the best online experience for our users and welcome strong competition that helps drive market innovation," a Google representative said in a statement.


A Yahoo spokesperson said, "Yahoo is pleased with the results of this year's ACSI study, which reflect our continued efforts to enhance the consumer experience for our more than 500 million users."




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