Consumers Think Beer Quality is Better Than Ever; Quality of Food, Soft Drinks, Shoes Remains High
Quarterly Quality Report from ASQ Released Today
Milwaukee, Wisconsin (November 18, 2005) – American customers are more satisfied than ever with the quality of beer produced by Anheuser Busch, Miller, and Coors, according to the Quarterly Quality Report released today by the American Society for Quality. The Quarterly Quality Report examines one of the most critical components of the American Customer Satisfaction Index (ACSI): perceived quality of the goods measured in the ACSI’s third quarter report, released earlier this week.
The industries measured as part of this quarter’s Quality Report on the manufactured nondurable goods sector are food and beverages, apparel, cigarettes, breweries, athletic shoes, personal care products, pet food, and cleaning products. The ACSI reports on different sectors each quarter, and consumers’ perception of quality of manufactured nondurable goods is among the highest of all the sectors measured by the ACSI.
The ACSI is produced by the University of Michigan’s Ross School of Business in partnership with the American Society for Quality and CFI Group.
The perceived quality index—the focus of the Quarterly Quality Report and a component of the ACSI-- stands strong at 87.4. Non-durables remain a bright spot compared to the overall national quality index, sitting a full nine index points above the overall national quality index of 78.5 for the economy as a whole. There was not a single company in the entire manufacturing non-durables sector that experienced a significant decline in its perceived quality score.
“The strong showing that we consistently see in consumer non-durable goods suggests that market leaders in this sector have a solid understanding that quality--as defined by the customer--is a key ingredient of successful corporate strategy,” said Jack West, former president of the American Society for Quality and author of the Quarterly Quality Report.
Food Manufacturing
A particular bright spot in the manufacturing/nondurable goods sector is H.J. Heinz, producer of ketchup and many other household brands. Heinz had far and away the highest quality score of any of the companies assessed in the Quarterly Quality Report.
“The Heinz approach to quality is instructive, illustrating several ways in which having a strategy dedicated to improving product quality can play a crucial role in delivering results in a highly competitive consumer products environment,” said West. “Heinz has put the work into quality improvement and assurance, and they have been rewarded with the highest quality and satisfaction scores of any company measured in this report.”
Soft Drinks/Beverages
Cadbury Schweppes has the highest quality score in this category, followed closely by Coke and Pepsi. Overall quality ratings for the industry remain stagnant, despite hotter than usual temperatures driving sales.
Breweries—Beer
The brightest spot in the third-quarter manufacturing non-durables results is the brewing industry, where all measured companies racked up gains in consumer-perceived quality. This category has regained the ground lost in quality perception of American consumers over the past decade.
“Despite strong performance and competition from the wine and spirits industry, the macro brews are stepping up to the plate and producing a quality product that is really satisfying customers,” said West.
Athletic Shoes
In the athletic shoes category, there were no statistically significant changes for either Nike or Reebok or for the category as a whole. However, the aggregate quality score for the athletic shoes category (82) lags significantly behind the manufacturing/nondurable goods score (87.4), so athletic shoe companies would be well-served to refocus on quality as major changes come to the industry next year in the form of Reebok’s acquisition of Nike.
Cigarettes
The cigarettes category improved its perceived quality score this quarter over the same quarter last year, with all of the gain attributable to an increase in the quality rating from purchasers of R.J. Reynolds products. Nevertheless, Reynolds still has considerable ground to make up in order to regain the quality ratings it enjoyed a decade ago when these scores were first recorded.
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 next Quality Report, slated for Feb. 21, 2006, will analyze the role quality plays in the ACSI scores in: retail, including supermarkets, gasoline stations, department & discount stores, specialty retail stores; and finance and insurance, including banks, life insurance, health insurance, property and casualty insurance
About the ACSI
The American Customer Satisfaction Index is a national economic indicator of customer evaluations of the quality of products and services available to household consumers in the United States. The index is produced by the University of Michigan ’s Ross School of Business in partnership with the American Society for Quality and CFI Group, and is supported in part by ForeSee Results, corporate sponsor for the e-commerce and e-business measurements, and by Market Strategies Inc., a major corporate contributor.
About the American Society for Quality
The American Society for Quality 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. As champion of the quality movement, ASQ offers technologies, concepts, tools, and training to quality professionals, quality practitioners, and everyday consumers, encouraging all to Make Good Great®. ASQ has been the sole administrator of the prestigious Malcolm Baldrige National Quality Award since 1991. Headquartered in Milwaukee, WI, the 60-year-old organization is a founding partner of the American Customer Satisfaction Index (ACSI), a prominent quarterly economic indicator.
Other information about ASQ and the ASQ Quality Report can be found on the ASQ Web site.
