Rising fuel costs seem to be taking a toll on customer perceptions of quality in the energy utilities and airline industries, according to the Quarterly Quality Report released in May by the American Society for Quality (ASQ). Wireless phone service providers and hospitals both showed significant improvements in quality during the first quarter of 2006 compared to the first quarter of 2005.
The Quarterly Quality Report examines one of the most critical components of the American Customer Satisfaction Index (ACSI): perceived quality of the goods and services measured by the ACSI.
This quarter’s Quality Report focuses on customers’ perceived quality of the goods and services provided in the utility, telecommunications, fast-food restaurant and hospital industries.
“Quality pays off in every single kind of organization,” said Jack West, spokesperson for the American Society for Quality and the author of the Quarterly Quality Report. “Good quality doesn’t cost you anything, but poor quality can cost you customers, loyalty, and repeat business. That’s why it’s essential that companies have an idea of where they rank in their industry and how they can improve.”
Utilities
Customers’ perception of the quality provided by gas and electric utilities has dropped significantly since they were first measured by the ACSI more than a decade ago. Of the 30 energy utilities measured by the ACSI, ten experienced significant changes in their perceived quality scores this quarter compared to the same period last year. Of these, six declined and four improved. TXU and FPL, whose quality scores dropped, were also among the utilities posting the highest price increases last year. Duke Power and Xcel, whose perceived quality scores rose, rank among the lowest-priced utilities as measured by price charged per kilowatt-hour.
Rising fuel costs, aggravated by disruptions in energy supplies as a result of last season’s record number of hurricanes, factor prominently into the way in which customers rate the quality of energy utilities.
Airlines
The airline industry receives low overall quality marks, the lowest of any industry group measured in the ACSI. Among the beleaguered
Limited-Service Restaurants
Customers give pizza restaurants much higher quality marks than burger joints. Little Caesar’s, Domino’s, and Pizza Hut all posted gains this year, but Papa John’s is the clear quality leader among the major pizza restaurants. Their dedication to the quality of pizza ingredients is clearly paying off.
Starbucks has the highest perceived quality rating among all the measured limited-service restaurants. This is the first time Starbucks has appeared in this rating category.
Hospitals
Since hospital care is a locally delivered service, there are no specific hospitals that are listed individually by name. As a group, however, hospitals increased their perceived quality score by nearly four percentage points this quarter compared to the first quarter of 2005. This is a significant increase.
For a number of years hospitals have been adopting and adapting quality improvement approaches that have proven effective in other sectors. Increased transparency, public reporting of quality measures, and growing adoption of pay-for-performance plans seem to be having an impact on improving quality in the industry.
About the Quarterly Quality Report
ASQ’s Quarterly Quality Report is an analysis of customers’ perceptions of the quality and reliability of products and services. It is based on data generated by the nation’s leading measure of customer satisfaction, the American Customer Satisfaction Index (ACSI). The full report can be read online at www.asq.org/quality-report/index.html.
About the ACSI
The American Customer Satisfaction Index (www.theacsi.org) is a national economic indicator of customer evaluations of the quality of products and services available to household consumers in the
About the American Society for Quality
The American Society for Quality (www.asq.org) is the world’s leading authority on quality. With more than 92,000 individual and organizational members, the professional association advances learning, quality improvement, and knowledge exchange to improve business results and to create better workplaces and communities worldwide.