Budget services win consumer approval

05.21.09
By Lewis Green

Many American consumers have had to rethink and likely transform their household budget to reflect the ongoing threat of layoffs, falling home values and, for many, mounting credit card debt.

According to results reflected in the American Customer Satisfaction Index, these new cost-conscious consumers are increasingly happy with businesses and services reflecting a more budget-friendly product offering.

The ACSI, produced by the University of Michigan Ross School of Business, recorded its second straight quarterly improvement in the first quarter of 2009 increasing by 0.4 percent to 76.0 on a 100-point scale.

By measuring customer satisfaction for utilities, transportation, information, healthcare and hospitality, the ACSI aims to provide additional insight into consumer habits and ultimately a window into economic activity.

Experts associated with the ASCI calculations say the most recent results offer hope for recovery.

"Stock prices have been rising, real estate is showing signs of life, consumer confidence is up, corporate earnings are mixed but generally better than expectations and inventories are becoming more in line with demand and, above all, consumer spending rebounded in the first quarter," said Claes Fornell, founder of the ACSI.

Results from the ACSI reveal that businesses like budget airline Southwest and economy hotels including Best Western and Choice Hotels recorded improved levels of customer satisfaction. Low rates have appealed to individuals and families looking to travel without breaking the bank or sacrificing service.

The restaurant industry has followed a similar pattern. More consumers working on debt management are increasingly choosy about how they spend their money when dining outside the home.

Based on ACSI findings, cheaper fast food and quick dining options are rivaling sit-down restaurants for consumer business.

A number of high-end food establishments have altered menus, pricing and general offerings to appeal to a broader crowd that is increasingly thinking about how to stretch a dollar.

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Budget meals are appealing to consumers with little left in their wallets