Premium Essay

Satisfaction Indices

In:

Submitted By ramantanwar
Words 1355
Pages 6
1. The American Customer Satisfaction Index (www.theacsi.org)
The American Customer Satisfaction Index (ACSI) is an economic indicator based on modeling of customer evaluations of the quality of goods and services purchased in the United States and produced by both domestic and foreign firms with substantial U.S. market shares. ASCI interviews more than 80,000 Americans every year about the satisfaction from the products and services that they have consumed. It uses that in a model developed by University of Michigan to measure customer satisfaction. So, the methodology uses customer interviews and econometric modeling. Over the years, ACSI have been able to identify the industries and sectors that have been performing well, and the ones that are not.
ACSI provides customer satisfaction for a company, which correlates with the financial performance and the stock price of the company. Moreover, as consumer spending account for 70% of GDP, it also correlates with GDP growth changes. Manufacturing good industries tend to score higher, as they require lower level of service. Companies that tend to improve quality fair better on the index than companies that tend to reduce price. It also provides the overall industrial satisfaction index, which is helpful especially in case of acquisitions.
Strengths: Companies can use ACSI as a tool to optimize their customer satisfaction to drive customer loyalty. It benefits investors, who would like to know a relation between the company’s current position and the future position. Also, it helps the government by providing information on how best to encourage the economic growth and living standards. Overall, the main strength of the index is the diversity. It is based on more than 47 industries, 225 companies and more than 80,000 citizens. So, it provides a robust customer satisfaction level.
Areas of improvement: The companies

Similar Documents

Free Essay

Taller de Riesgo

...INTEGRANTES: ________________________________________________ ________________________________________________ ________________________________________________ OBJETIVO: DEL TALLER RETROALIMENTACION A CONCIENCIA DE ACUERDO A LO APRENDIDO Y SABERES PREVIOS UNIFICADOS EN CLASE. TALLER DE FACTORES DE RIESGO CASO 1. Estaba trabajando un operario en un torno paralelo, sin protección adosada a la máquina y sin gafas de protección, cuando le salto una partícula al ojo derecho, al hacer un movimiento brusco resbala y cayó al suelo, quedando fuertemente conmocionado. Datos complementarios: El piso estaba resbaladizo, ya que los aceites derramados anteriormente no habían siclo eliminados. El operario utilizaba alpargatas. Con base en la anterior información: 1. Analizar las causas del accidente: Condición ambiental peligrosa y acto inseguro. 2. Determinar recomendaciones técnicas preventivas. 3. Describir recomendaciones generales para un taller de Maquinas - Herramientas. EVALUACION | OBSERVACIONES: | Ciudad – FechaSincelejo- Abril 09 del 2016 | Firma: | | Profesora: Ing. Beatriz Almanza | INTEGRANTES: ________________________________________________ ________________________________________________ ________________________________________________ OBJETIVO: DEL TALLER RETROALIMENTACION A CONCIENCIA DE ACUERDO A LO APRENDIDO Y SABERES PREVIOS UNIFICADOS EN CLASE. TALLER DE FACTORES DE RIESGO CASO 2. En un taller de mecánica industrial labora un...

Words: 404 - Pages: 2

Premium Essay

Consumer Price Index

...Consumer Price Index EC 601 – Fall 2010 December 3, 2010 Consumer Price Index (CPI) According to Mankiw the Consumer Price Index is a measure of the overall cost of the goods and services bought by a typical consumer. The Department of Labor’s subordinate branch the Bureau of Labor who is in charge of providing the Consumer Price Index of states that the Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a “market basket” of consumer goods and services. Some background into how the Consumer Price Index came about. The Consumer Price Index was initiated during World War I, when rapid increases in prices, particularly in shipbuilding centers, made an index essential for calculating cost-of-living adjustments in wages ("United states consumer," n.d.). To provide appropriate weighting patterns for the index, so that it would reflect the relative importance of goods and services purchased in 92 industrial centers in 1917-1919("United states consumer," n.d.). Periodic collections of prices were started, and, in 1919, the Bureau of Labor Statistics began publication of separate indexes for 32 cities ("United states consumer," n.d.). Regular publication of a national index, the U.S. city average began in 1921, and indexes were estimated back to 1913 using records of food prices ("United states consumer," n.d.). Because people's buying habits had changed substantially, a new study was made covering expenditures...

Words: 2885 - Pages: 12

Free Essay

Case Study

...Viewpoint * Reimi, operations manager Problem Statement * How can Reimi improve the profitability of the establishment? Key objectives * Improve profitability of the establishment * Achieve quota sales every week * Decrease costs Areas for consideration * Employees * Inventory * Facility Layout Alternative course of action * Design the place/ facility in to better and more attractive, such as adding bands, themes, promotional events Advantage * It can build its competitive advantage and help attract more customers Disadvantage * It will acquire more costs * Deduct the number of full time employees, add part-time employees and train them to be pleasant to the customers Advantage * It will help decrease labor costs Disadvantage * There could be unexpected high demand of customers, so there could be problems in serving them due to lack of employees * Forecast demand and reduce inventory of products/ingredients/materials on days that it is not selling Advantage * There is inventory control and will help decrease inventory costs Disadvantage * There could be shortage of products/ingredients in case of unexpected high demand that will cause unsatisfying customers. Recommendation As an operation manager, since, the size of establishment is only 80 square meters so the place is too small and the employees are too many for it. Considering the fact that most of the weekdays have fewer customers, so...

Words: 330 - Pages: 2

Premium Essay

Case Study 1 Surver of Hospitality Management

...Keller Graduate School of Management Case Study 1: Guest Satisfaction at the Convention Center Hotel Week 3 Irene Garcia Vilardosa HOSP582 Survey of Hospitality Management Dr. Pratt Introduction In order to be successful in the market it is not sufficient to attract new customers. Managers should also concentrate on retaining existing customers implementing effective policies of customer satisfaction and loyalty. In hotel industry, customer satisfaction is largely hooked upon quality of service. A management approach focused on customer satisfaction can improve customer loyalty, thus increasing the positive image of the touristic destination. Hence, exploring the importance for customers of hotel attributes in hotel selection is indispensable. Problems with front office In order to solve the customers dissatisfaction issues related with check in and check out, Frank should take into account the reservations and have more employees working at front desk when the number of reservations is higher so they do not have to be waiting for a long time. During major arrivals and departures days, the staff has to be increased so that the guests are quickly addressed and they can continue with their trips or business without wasting too long. Problems with housekeeping When dealing with a situation as described in which rooms are not ready, there are usually two possible options to consider. Either the housekeeping staff is not enough considering the number of...

Words: 598 - Pages: 3

Premium Essay

Project Management

...efforts regarding customer satisfaction should be on the collection of best practices and the preparation of guidelines for questionnaires to measure customer satisfaction. Customer satisfaction has therefore become the key operational goal for many organizations. They have invested heavily in improving performance in areas that make a strong contribution to customer satisfaction, such as quality and customer service. The customer satisfaction index measures the quality of the goods and services as experienced by the customers that use them. An individual companies’ CSI represents its served markets and its customers’ overall evaluation of total purchase and user experience. Similarly, an industry CSI represents the industry’s customers’ overall evaluation of its market. A sector CSI is an overall evaluation of that sector, and the national CSI gauges the national total consumption experience Customer satisfaction Index (CSI) represents a new type of customer-based measurement system for evaluating and enhancing the performance of companies, industries, economic sectors and national economics. It is designed to be representative of the economy as a whole and covers many companies over various types of industries in the consumer sectors of the economy. On an annual basis the CSI system estimates a company level customer satisfaction index for each company in the sample and weights their company-level indices to calculate industry, sector, and national indices. Identification of best...

Words: 741 - Pages: 3

Free Essay

Acsi Model

...The Science of Customer Satisfaction The American Customer Satisfaction Index uses customer interviews as input to a multi-equation econometric model developed at the University of Michigan's Ross School of Business. The ACSI model is a cause-and-effect model with indices for drivers of satisfaction on the left side (customer expectations, perceived quality, and perceived value), satisfaction (ACSI) in the center, and outcomes of satisfaction on the right side (customer complaints and customer loyalty, including customer retention and price tolerance). The indexes (shown in the diagram below) are multivariable components measured by several questions that are weighted within the model. The questions assess customer evaluations of the determinants of each index. Indexes are reported on a 0 to 100 scale. The survey and modeling methodology quantifies the strength of the effect of the index on the left to the one to which the arrow points on the right. These arrows represent "impacts." The ACSI model is self-weighting to maximize the explanation of customer satisfaction (ACSI) on customer loyalty. Looking at the indexes and impacts, users can determine which drivers of satisfaction, if improved, would have the most effect on customer loyalty. [pic] 1 Customer Satisfaction (ACSI) The customer satisfaction (ACSI) index score is calculated as a weighted average of three survey questions that measure different facets of satisfaction with a product or service. ACSI researchers...

Words: 564 - Pages: 3

Free Essay

Customer Satisfaction Thesis

...The Evolution and Future of National Customer Satisfaction Index Models1 by Michael D. Johnsona2, Anders Gustafssonb, Tor Wallin Andreassenc, Line Lervikc, Jaesung Chaa a University of Michigan Business School, Ann Arbor, Michigan 48109-1234, USA b University of Karlstad, Service Research Center, 651 88 Karlstad, Sweden c Nowegian School of Management BI, P.O. Box 580, N-1301 Sandvika, Norway December 2000 PsycINFO classification: 3920 JEL classification: E21 Keywords: Customer satisfaction; Loyalty; National barometers 1 Journal of Economic Psychology, forthcoming. The authors thank Associate Editor Henry Robben, two anonymous reviewers, Richard Bagozzi, Andreas Herrmann and Kai Kristensen for their valuable comments and suggestions. We also gratefully acknowledge the support of the Norwegian School of Management BI for providing the data used in the study. 2 Corresponding author. Email: mdjohn@umich.edu; tel.: +734-764-1259; fax: +734-936-0274. 2 Abstract A number of both national and international customer satisfaction barometers or indices have been introduced in the last decade. For the most part, these satisfaction indices are embedded within a system of cause and effect relationships or satisfaction model. Yet there has been little in the way of model development. Of critical importance to the validity and reliability of such indices is that the models and methods used to measure customer satisfaction and related constructs continue to learn, adapt...

Words: 11517 - Pages: 47

Premium Essay

Assignment Brief

...7p’s for Amazon Price – Amazon has lowered its prices of items due to more completion with other e-tailers such as eBay. Products – Amazon allows customers to buy products that are cheaper. The customers would place an order and amazon orders it straight from the local warehouse, this then means the delivery speed is quicker and the customer gets the product a lot quicker. This lowers storage cost and allows businesses to provide a larger range of products instead of having a slow delivery speed and a small amount of products stored, this makes them have a large variety of products. Place – Amazon can access the international markets by being on the internet, they can set up multi – language Amazon can access the international markets by being on the internet, they can set up multi – language website to target specific markets, also there isn’t much cost as a store isn’t needed since it is directly from the manufacturers. Promotions – Amazon allows customers their products according to what they want. Also social media has now become more popular that means that this has become a main way of communication so people chose it as a main form of buying things, this promotes the business because it’s quick, easy and simple to use. It’s a lot more cost effective and is a lot effective for people who don’t have enough time to shop. People - For customers, it can save lots of time and this means they can order what they want and chose from a bigger variety of things instead of...

Words: 453 - Pages: 2

Free Essay

Measuring Customer Satisfaction

...practices for measuring customer satisfaction? Is it upper level management, hired consultants, surveys, or reactions to industry swing? So many choices but what really is a best practice. Customer satisfaction programs, research, employee satisfaction, and personal experience all play a role in measuring customer satisfaction. Even when using those practices it takes effort and continuous improvement to stand a chance on improving customer engagement and satisfaction. Hopefully these next few paragraphs can add some insight on measuring results. The problem companies face, is exactly how to and do it well. Companies need to understand how to quantify, measure and track customer satisfaction. Without a clear and accurate sense of what needs to be measured and how to collect, analyze and use the data as a major strategic focus to achieve business success, no firm can be effective in satisfying customer to drive business. Plans must be constructed using customer satisfaction research results and design a strategy that target customers and/or processes that add to the bottom line. The last thing a company should do is not take action, there is collateral damage in asking (resources and time) customers about a service or product if it won't or can't be changed. What are some of the ways to measure customer satisfaction. One used quite frequently because of the associated low cost is using outdated and unreliable measures of customer satisfaction. The data is already available...

Words: 1148 - Pages: 5

Free Essay

Case Study of National Bank Pakistan

...Service quality; Service features; and Customer complaint handling as the major determinants of customer satisfaction in Banking sector: A Case study of National Bank of Pakistan Ishfaq Ahmed1, Shafiq Gul2, Umer Hayat3, Mohammad Qasim44 Introduction Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. The study is intended to identify customer satisfaction and retention is critical for retail banks, and investigates the major determinants of customer satisfaction and future intentions in the retail bank sector. Identifies the determinants which include service quality dimensions (e.g. getting it right the first time), service features (e.g. competitive interest rates), service problems, service recovery and products used. Finds, in particular, that service problems and the bank’s service recovery ability have a major impact on customer satisfaction and intentions to switch. This study investigates the relationship between perceived performance, satisfaction and behavioural intention, and the extent to which each is associated with actual performance, customers' attributions for problems...

Words: 3294 - Pages: 14

Premium Essay

Scope of Study of Credit Management of a Bank

...Linking Customer and Employee Satisfaction to the Bottom Line Also Available from ASQ Quality Press: Analysis of Customer Satisfaction Data Derek R. Allen and Tanniru R. Rao Customer Centered Six Sigma: Linking Customers, Process Improvement, and Financial Results Earl Naumann and Steven H. Hoisington Customer Satisfaction Measurement Simplified: A Step-by-Step Guide for ISO 9001:2000 Certification Terry G. Vavra Improving Your Measurement of Customer Satisfaction: A Guide to Creating, Conducting, Analyzing, and Reporting Customer Satisfaction Measurement Programs Terry G. Vavra Measuring Customer Satisfaction: Survey Design, Use, and Statistical Analysis Methods, Second Edition Bob E. Hayes The Trust Imperative: Performance Improvement through Productive Relationships Stephen Hacker and Marsha Willard Customer Satisfaction Measurement and Management Earl Naumann and Kathleen Giel Performance Measurement Explained: Designing and Implementing Your State-of-the-Art System Bjørn Andersen and Tom Fagerhaug Value Leadership: Winning Competitive Advantage in the Information Age Michael C. Harris To request a complimentary catalog of ASQ Quality Press publications, call 800-248-1946, or visit our Web site at http://qualitypress.asq.org . Linking Customer and Employee Satisfaction to the Bottom Line A Comprehensive Guide to Establishing the Impact of Customer and Employee Satisfaction on Critical Business Outcomes Derek R. Allen and Morris...

Words: 8302 - Pages: 34

Premium Essay

Customer Switching Cost

...maintenance of a brand’s life in the long term. To achieve this aim, customer satisfaction and trust must be measured and “switching costs” identified. The latter render subscribers’ preference for rival operators more expensive. In this connection, this paper’s aim is to measure the effects of customer satisfaction and trust on customer loyalty, and the direct and indirect effect of “switching cost” on customer loyalty. Design/methodology/approach – The data set covered 1,662 mobile phone users in Turkey. The data were analyzed by moderated regression analysis to test the hypotheses. Findings – The findings of this study show that the switching cost factor directly affects loyalty, and has a moderator effect on both customer satisfaction and trust. Therefore, it plays a crucial role in winning customer loyalty. In short, it is a quasi moderator. However, switching costs was measured as a unidimensional factor, but switching costs in fact contains psychological, financial and procedural sub-dimensions. Therefore, future research might measure the sub-dimensions of switching costs and examine their moderating effects. Originality/value – With respect to the findings, trust has more importance than customer satisfaction in engendering loyalty, since trust contains belief in the brand, which provides positive outcomes not only in the present but also in the future. But customer satisfaction does...

Words: 7581 - Pages: 31

Free Essay

Loss & Grief in Workplace

...1 LITERATURE REVIEW ABSTRACT The economic recession that hit the world in 2007 resulted in global downsizing in many prestige organizations and its effects of workers productivity. This literature reviews focuses on affective organizational commitment among survivors of organizational restructuring and downsizing. It focused on middle level managers and employees in supervisory positions because survivors of this group are often called upon to assume expanded roles, functions and responsibilities in a post restructuring and downsizing environment. This paper also explores the impact of recession for those still in employment by looking at a key indicator of employee wellbeing, work pressure staff reductions and company reorganization both increase work pressure, as does current job insecurity. Other job changes, like large pay cuts, increases in responsibility, autonomy and monitoring also increase work pressure. Keywords: Recession, downsizing, layoffs, economic downturns, organizational behavior, commitment, motivation, loss and grief, leaders, employees, stakeholders. 2 INTRODUCTION The great recession of 2007 started on the month of December. National Bureau of Economic Research (NBER), the prestigious private research institute declared it officially. The government of US acknowledged the NBER's declaration, aware of the downfall since August 2007; the White House did not change its course on coping with the financial crisis. This was the third longest...

Words: 3597 - Pages: 15

Premium Essay

Performance Relationship

...A Term Paper On Performance Evaluation through Deposit Mobilization Of Private Sector Banks in Bangladesh – A Critical Analysis on Mutual Trust Bank Ltd.. A Term Paper On Performance Evolution through Deposit Mobilization Bangladesh Of Private Sector Banks in – A Critical Analysis on Mutual Trust Bank Ltd. Under the Guidance of Supervision of Mohammed Didarul Alam Associate professor Department of Accounting Govt. City College, Chittagong. Submitted By MEHRAJ UDDIN Roll: 9799577 Reg: 1794467 BBA (Hon’s.) Second Year Department of Accounting Govt. City College, Chittagong. Letter of Transmittal Date: Mohammed Didarul Alam Associate professor Department of Accounting Govt. City College, Chittagong. Subject: Submission of Term Paper . Sir, It is a great pleasure and privilege to present the term paper “Performance Evolution of Private Sector Banks in Bangladesh through Deposit Mobilization - A Critical Analysis on Mutual Trust Bank Ltd.” which was assigned to me as a partial requirement for the competition of BBA (Hon’s.). Throughout the study I tried with the best of my capacity to accommodate as mush information and relevant issues as possible and tried to follow the instructions as you have suggested. I tried...

Words: 3746 - Pages: 15

Premium Essay

Sewing Machine

...PARTS AND FUNCTION 1. Spool pin: It is fitted on top of the arm to hold the reel.  2. Thread guide: It holds the thread in position from the spool to the needle.  3. Tension disc: The two concave discs put together with the convex sides facing each other. The thread passes between the two. The tension of the thread is adjusted by a spring and nut which increases or decreases pressure  4. Take up lever: It is a lever fitted to the body of the arm. Its up and down motion feeds the thread to the needle and tightens the loop formed by the shuttle.  5. Needle bar: This is a steel rod to hold the needle at one end with the help of a clamp. Its main function is to give motion to the needle.  6. Bobbin case: This moves into position to catch the top thread and form the stitch as the needle is lowered into the bobbin chamber.  7. Presser foot: It is fixed to the presser bar to hold the cloth firmly in position when lowered.  8. Presser foot lifter: A lever attached to the presser bar for raising and lowering the presser foot.  9. Stitch regulator: This controls the length of the stitch.  10. Bobbin winder: A simple mechanism used for winding thread on the bobbin.  11. Fly Wheel: When this is made to revolve, it works the mechanism of the motion  12. Clutch or Thumb Screw: This is in the center of the fly wheel and it engages and disengages the stitching mechanism.  13. Slide Plate: A rectangular plate, which facilitates the removal of the bobbin case...

Words: 367 - Pages: 2