Dim halo: Forrester survery shows iPod owners don’t identify with “Apple Computer” brand

Bose, Dell, Sony, Panasonic, and Hewlett-Packard are the technology brands that score the highest with US consumers according to a new survey by Forrester Research, Inc. Forrester’s Technology Brand Scorecard evaluated 22 of the best-known consumer technology brands, based on the responses of more than 4,700 consumers.

This is Forrester’s third, semi-annual survey ranked consumer electronics and personal computer manufacturers on consumer trust, brand usage, and future purchase intent. A sample of the rankings:
• Highest-rated companies: Bose, Dell, Sony, Panasonic, and Hewlett-Packard.
• Lowest-rated companies: Toshiba, Hitachi, Microsoft, Gateway, and LG.

A top finding: Americans’ trust in consumer technology companies is eroding. Forrester believes that the decline in trust from 2003 to 2005 is due to ubiquitous technologies like PCs, HDTVs, and MP3 players reaching more price-conscious, mainstream consumers. That’s a major challenge for tech companies that must now sell to tech-averse customers who demonstrate little brand loyalty. “Trust is a powerful way to measure a brand’s value and its ability to command a premium price or drive consumers into a higher profit direct channel,” said Forrester Vice President Ted Schadler in the press release. “A decline in trust causes brand erosion and price-driven purchase decisions, which in turn correlates with low market growth.”

Additional highlights include:
• Apple and TiVo are the only brands that enjoyed an increase in consumer trust between 2003 and 2005. But the results show a disconnect between the “Apple Computer” brand and the company’s wildly popular iPod. In our survey, iPod owners did not appear to identify with the “Apple Computer” brand, which could impede the so-called “halo effect” that iPods might have on Macintosh sales.
• Bose is a gem to be mined with 10 million regular users today, but more than 17 million consumers who aspire to use the brand.
• Despite brilliant growth in the past two years, Korean manufacturers such as Samsung and LG engender low consumer trust.

“The 2005 Technology Brand Scorecard” includes profiles of each brand’s regular users and aspiring users, data that holds lessons for marketers seeking to reach new customers. The Forrester report is available to WholeView 2(TM) clients and can be found at http://www.forrester.com
If we had a nickel for every time we heard some mall shopper say to another, “let’s go to the iPod store,” we’d run fewer ads. These survey findings back up something about which we’ve written many times before: We firmly believe that a short 5-10 minute video explaining what Apple Macs can do for average personal computer users should be shipped on every video-capable iPod sold. A video that already exists, no less! Such an omission is criminal. It’d be easily deleted, unobtrusive, and Windows-only users would be able to quickly see what they’re missing. Why this isn’t currently the case is baffling. Apple is squandering a huge opportunity to inform Windows iPod owners about Mac OS X. Apple doesn’t even need to Think Different to do such a thing, they just need to think.

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Related article:
Apple in secret deal with Microsoft to hide Macintosh from world? – January 19, 2006

37 Comments

  1. “Apple is squandering a huge opportunity to inform Windows iPod owners about Mac OS X.”

    One of the great things about getting an iPod as compared to other players is that you AREN’T forced to deal with (delete) crap included with the player. You only get what you need which is QuickTime, iTunes and the iPod drivers.

    To do more than that would be to be just like every other wannabe digital music player. Unless you’re saying those other players are successful BECAUSE they include cruft…

    because they aren’t.

  2. Actually, a better take

    Mac Daily News “is squandering a huge opportunity” by wasting valuable space on these pages that COULD be used for advertising!

    Just because there is an “opportunity” for an ad, doesn’t mean you have to take it. Apple could have Google banner ads on each of their iPod pages that would make them a MINT (since it’s one of the most travelled pages on the internet). Is that also a “missed opportunity”?

  3. I heard a guy on CNN talking about how “iPod is expected to announce new models…” Thankfully the anchor’s response mentioned Apple and the reporter switched to talking about Apple after that.

    A friend of mine mentioned getting an iPod for Christmas. Later I found out it was a Dell DJ brand “iPod.”

  4. I know a family of four where each person has had their own iPod for almost a year. Everyone is very physically active. Running, school sports, etc. The parents are professional people that have only used Windows PCs at work, while the kids have only used the same in school, and a typical Windows PC is all they’ve used a home. I’ve know these people for over ten years.

    They purchased their first Mac (a new G5) two months ago.

    The iPod commercials are building brand awareness for Apple. They don’t sell iPods. Like any good product that people become aware of, iPods sell themselves, and convenience is the major factor.

    And FWIW, I think the iPods runaway succes caught Apple by surprise. I really doubt they expected it.

  5. I like MDN’s take, hell, if people want to delete it right away – so be it. They don’t have to watch it. The only thing would be that they would have to load this video demo during production runs, and I doubt they want to add that time on.

    A little note of interest – I cannot verify this as I read it in a book about Apple (and everyone knows you can’t believe everything you read,see hear etc. etc.), but Apple supposedly makes ALMOST as much profit on each iPod sale as it does from it’s iMacs. iPods are much less expensive to produce and at $399 for a 60GB video iPod the profit margins are HIGH.

    All said, I agree with the MDN take. I just think Apple would have done it by now if they were going to do it at all.

  6. As if Forrester hasn’t always tried to minimize the value of the Apple marque. How is it in other surveys we’re often in the top two respected brands? How is it that so many people who walk into the Apple store who are PC owners end up walking out with Macs?

    They’re idiots. The survey probably has MS funding behind it. HP at the top? It took me 15 minutes to stop laughing so I could type this response. Panasonic? Please! How about Pioneer?

    Bose? They have mediocre technolgoy. Their strength is in deceptive marketing. Not technology. Please! Give us some reality here.

  7. “Bose is a gem to be mined with 10 million regular users today, but more than 17 million consumers who aspire to use the brand.”

    It never ceases to amaze me how clueless American consumers are. I wonder what percentage of these 17 million consumers think American Pilsner Lager is actually good beer and/or voted for George Bush?

  8. Ampar,

    I think we had the same academic. I remember one lecture…actually I can’t quite remember the whole lecture because I fell asleep. But all was well because it was Sociology and anyone could pass that sucker. Bloody hell, just thinking about that guy makes me sleepy!

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