Pet Food Meets Consumer Expectations
Customer satisfaction with pet food dropped a mere 1 percentage
point in the third quarter of 2005, registering a score of
82 on the American Customer Satisfaction Index, according
to a report by the Ross School of Business at The University
of Michigan (Ann Arbor) in partnership with the American Society
for Quality and CFI Group.
The big news, according to the report, was the rebound by
Del Monte Foods (Pittsburgh). It scored 83, up 5 percentage
points from the year-earlier period. Researchers attribute
its improvement in the pet food category to better quality
and value for money.
All competitors were grouped tightly around the industry
average, with scores of 81 to 83. At the low end of this narrow
spectrum, Nestlé Purina PetCare Co. (St. Louis), the
world’s largest pet food manufacturer, scored 81, dropping
nearly 4 percentage points and recording its lowest score
in five years. It is now tied with The Iams Co. (Dayton, Ohio).
Like food manufacturing, pet food companies demonstrate a
great deal of stability in satisfying their customers. It
is very rare for any one company in this high-scoring industry
to record an ACSI score below 82.
The aggregate ACSI for all goods and services increased slightly
for the third quarter of 2005, was 73.2, down 1.5 percentage
points from the year-earlier period.
Recent improvements in aggregate ACSI scores have been minute
and have done little to counter the tumble that began in the
fourth quarter of 2004. This comes at a time when the country’s
gross domestic product is up 3.8 percent, but household incomes
are not keeping pace and household savings are negative.
Despite the historical relationship between customer satisfaction
measured in one quarter and consumer spending in the following
quarter, the outlook for spending in the fourth quarter was
unclear.
“Combine this marginal rise in customer satisfaction
with uncertainty due to high energy prices, recent natural
disasters and increasing interest rates, and we really don’t
have any reason to be optimistic that consumer spending will
substantially increase during the fourth quarter,” said
professor Claes Fornell, who heads the ACSI at the University
of Michigan. [January 2006 PET AGE]
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