“It makes logical sense that companies with trusted brands should generate more business, which in theory should fuel gains in the stock price. In fact, a new study by consulting firm AlixPartners shows just that,” Marc Lichtenfeld reports for TheStreet.com.
Lichtenfeld reports, “The brands that wowed consumers included Apple, General Electric and Proctor & Gamble. Among those that disappointed them were Gap, Pfizer and Ford.
“Sony is the brand that came out on top in terms of winning consumer trust,” Lichtenfeld reports. “Fred Crawford, managing director of AlixPartners, contrasts Sony with Apple, which also came out near the top. ‘Sony has not been on the leading edge of technology, but it builds solid, reliable products.’ Apple was viewed as a product leader but received bad grades in price and service. ‘Apple is perceived as an innovative company that charges too much for their products,’ he suggests.”
“Apple shares rose nearly 700% between 2004 and 2007, while Sony actually lagged the S&P by about 1%,” Lichtenfeld reports.
“The lowest-scoring brand was Ford, which had ‘good awareness but an abysmal trust score,'” Lichtenfeld reports. “The survey broke down customers’ experience by five categories — price, access, product, service and experience. Some 5,000 consumers were asked 60 questions in the fall of 2006 to determine which were the most and least trusted brands in the U.S. Some brands such as Dell and Nike showed up in the top-10 most and least trusted brands.”
Full article with lists of the top eight brands that exceeded customers’ expectations along with the top seven that did not meet expectations here.
It’s be tough for us to imagine a more mundane-yet-frustrating existence than being a Ford-driving Dell owner who runs Windows. Okay, now we’re feeling physically ill just thinking about such a fate (shudder).