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Satisfaction Indices

In: Business and Management

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

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