Arlington, Va., November 13, 2001 -- The sense of well being among consumers has declined sharply from four years ago, according to a Better Business Bureau (BBB) survey of five metropolitan areas. Consumers feel only marginally satisfied with the treatment they receive from businesses, according to the study.
"The overall disposition of respondents reflects the solemn circumstances of the country," the study notes, adding that other surveys "show continued erosion in consumer confidence, down dramatically from one year ago and substantially lower since the events of September."
Results of the survey, which involved the participation of BBBs in each of the five cities, were made public today (Nov. 13). About 2,000 consumers in Buffalo, Memphis, Milwaukee, Seattle and St. Louis were interviewed to determine the degree of customer satisfaction in 11 targeted industries. The interviews were conducted after Sept. 11.
Consumers were asked a general question regarding their degree of happiness. Fifteen per cent said they were "very happy," down six points from a similar survey question four years ago. And 20% said they were "not too happy," up seven points.
Titled "Consumer Sentiments in a Tough Economy," the study advises business, "Particularly in times of turmoil, your customers need reassurance that your company remains committed to providing quality service."
"These valuable survey findings can be used by business for employee training, strategic plans and everyday business practices," said Kenneth Hunter, president of the Council of Better Business Bureaus, the umbrella organization for the nation's BBBs.
Assessing the marketplace in general, 40% rated their experiences between 8 and 10 on a 10-point scale (where 10 equals very good), while 28% rated them in the 1 to 5 range.
"The results show that customers in the five cities included in this study are marginally satisfied with the treatment they receive," the study concluded.
Looking at the specific industries that were studied, consumers gave drug stores and pharmacies the highest ratings, with 62% giving them marks from 8 to 10. Other industries scoring high included banking (58%), grocery stores (58%), hardware stores (57%) and full-service restaurants (57%).
The remaining six industries and the percentage of respondents rating them from 8 to 10 included dry cleaners (51%), discount stores (48%), clothing stores (48%), department stores (43%), auto care services (42%) and fast food restaurants (26%).
The benefits reaped by businesses that deliver value and satisfaction are clear," the study noted.
Of consumers who rated a business high, 66% said they were "very unlikely" to switch providers, and 79% were "very likely" to recommend the business to others. On the other hand, of consumers who rated a business low, only 36% said they were "very unlikely" to switch providers, while 31% said they were "very likely" to recommend the business to others.
Regarding a comparison of customer satisfaction among the five cities surveyed, the study concluded, "No one city emerged as 'best' in relative comparisons of consumer perceptions. Buffalo was rated highly by its respondents in overall treatment and prices, while Seattle and St. Louis were perceived by its residents as especially strong with respect to selection."
"A striking finding in this survey was the extensive cross-shopping done by households," the study noted. "Loyalty is relative and consumers have a foot in many different retail worlds."
The survey also advised business to avoid cutting back on customer service training during tougher economic circumstances, adding, "Short term cost savings may very well cost you dearly in the future in terms of reduced levels of customer service quality."
The survey was initiated and administered by the St. Louis BBB, with the participation of BBBs in Buffalo, Memphis, Milwaukee, and Seattle. Underwritten by AAA, Enterprise Rent-A-Car and MasterCard International, the survey was authored by Drs. James E. Fisher and Mark Arnold of Saint Louis University, and Dr. Dennis Garrett of Marquette University.
