The Consumerist ACSI Fund v2.0

The Consumerist ACSI Fund v2.0

Based on your suggestions, we redid The Consumerist ACSI fund mock portfolio. We changed it from 100 shares to $1000 worth of each company, rounded down to whole shares. This way the highest stocks won’t have an undue influence on the portfolio’s performance.

The Consumerist ACSI Fund

The Consumerist ACSI Fund

We made a mock portfolio buying 100 shares of companies scoring high on the American Customer Satisfaction Index (ACSI).

How To Beat The Stock Market: Buy Companies With High Customer Satisfaction Scores

How To Beat The Stock Market: Buy Companies With High Customer Satisfaction Scores

Using a back-tested paper portfolio and an actual case, the authors of a study published in the Journal of Marketing found that companies at the top 20% of the the American Customer Satisfaction Index (ACSI) greatly outperformed the the stock market, generating a 40% return.

Most And Least Improved Companies In Customer Satisfaction Since 1994

We’re obsessed excited by this ACSI data so let’s slice it another way!

Customer Satisfaction Winners And Losers

Here are the winners and losers on the American Customer Satisfaction Index for industries of particular interest to Consumerist readers. The scores are out of 100. Format is company name (score, difference from last year’s score).

Customer Satisfaction Up Thanks To Lower Prices, Not Increased Quality

Customer Satisfaction Up Thanks To Lower Prices, Not Increased Quality

But if the increase in quality is minor and ACSI growth is driven mostly by lower prices, or an absence of price increases, satisfaction becomes vulnerable to more volatility because prices change much quicker than quality…. Pricing power depends on upward shifting demand curves. But an upward shift is unlikely unless there is shrinking supply or higher levels of buyer satisfaction. There are no signs of the former in most industries, so the latter becomes more critical.

Good product quality and customer service and starting to look like a savvy business decision yet? — BEN POPKEN

Customer Satisfaction At All Time High

Customer Satisfaction At All Time High

University of Michigan’s American Customer Satisfaction Index (ACSI) increased to an overall 74.9 score out of 100 in the fourth quarter of 2006, its highest level since the survey first started in 1994. That’s a gain of almost 2 percent from the previous year and a 0.7 increase from the previous quarter.

So who is winning and who is losing?

Holiday Shopper Survey: Netflix Top, CDW Bottom

Holiday Shopper Survey: Netflix Top, CDW Bottom

A survey of 10,000+ consumers ranked the best and worst shopping sites during the the 2006 holiday season.