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Apple\'s trust grows, iPod disconnect

updated 03:10 pm EDT, Mon April 3, 2006

Apple bucks trust erosion

Bose, Dell, Sony, Panasonic, and Hewlett-Packard are the technology brands that score the highest with US consumers, while Apple and TiVo were among the only brands to achieve an increase in consumer trust, according to a new survey by Forrester Research. Microsoft along with Toshiba, Hitachi, Gateway, and LG were amonst the lowest-rated companies. Forrester also found that the results showed a disconnect between the "Apple Computer" brand and the company's popular iPod. Forrester found that iPod owners did not appear to identify with the "Apple Computer" brand, which it said could mitigate the so-called "halo effect", which has been cited to help drive Mac sales. Bose, which led all brands, was described as "a gem to be mined" with 10 million regular users today, but more than 17 million consumers who aspire to use the brand. The survey found that Americans' trust in consumer technology companies is eroding when looking at results from 2003 to 2005.

The research firm said that the decline was due to ubiquitous technologies like PCs, HDTVs, and MP3 players reaching more price-conscious, mainstream consumers -- a major challenge for tech companies that must now sell to tech-averse customers who demonstrate little brand loyalty, according to report.

"Trust is a powerful way to measure a brand's value and its ability to command a premium price or drive consumers into a higher profit direct channel," said Forrester Vice President Ted Schadler. "A decline in trust causes brand erosion and price-driven purchase decisions, which in turn correlates with low market growth."

Forrester's Technology Brand Scorecard evaluated 22 of the best-known consumer technology brands, based on the responses of more than 4,700 consumers. The third, semi-annual survey ranked consumer electronics and personal computer manufacturers on consumer trust, brand usage, and future purchase intent.




by MacNN Staff

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Comments

  1. dashiel

    Joined: Dec 1969

    0

    bose?

    talk about marketing over substance. ugly kit, bad sound. why do people aspire to that?

  1. trevc

    Joined: Dec 1969

    0

    help with lawsuit?

    ""Apple Computer" brand and the company's popular iPod. Forrester found that iPod owners did not appear to identify with the "Apple Computer" brand"

    Maybe this will help with the Apple Corps Lawsuit! ;-)

  1. slider

    Joined: Dec 1969

    0

    Disconnect

    I can see the lack of connection b/w iPod and Apple Computer. The fact is, most people are computer retarded. So many people I talk to from day to day don't have a clue, I mean really just blank. For them it's "We need things, things that make us go", they push a button or plug something in and don't have the foggiest idea of what's happening. Not really "getting" that the iPod is made by Apple Computer is not some much that they don't know, it's more that they couldn't care less. I personally "know" I'm computer retarded, but most folks I interact with at work or play think I'm a freak'n computer genius, but in reality, I just know enough to know what I don't know.

  1. testudo

    Joined: Dec 1969

    0

    Re: disconnect

    The thing is, a good product, like a computer or iPod or whatever, should be such a thing that you can press a button and it works. You shouldn't "have" to know anything.

    Unfortunately, I don't know if that disconnect is good for Apple. Maybe if they're going to spin off the iTMS. But for market branding and all, if no one knows your company, what luck are you going to have in getting that halo effect to work?

  1. rtbarry

    Joined: Dec 1969

    0

    re: tetsudo

    "no one knows your brand" ???

    the apple brand is one of the most recognized in the world:



    that is not what the research stated. it means that the 'iPod product' is not necessarily associated with the 'computer product'. probably because, to apple's credit, you don't have to use a mac to use an iPod effectively.

  1. rtbarry

    Joined: Dec 1969

    0

    apple brand power

    http://www.brandchannel.com/features_effect.asp?pf_id=298

    http://www.brandrepublic.com/bulletins/br/article/479939/apple-tops-list-fastest-growing-brands-digital-overtakes-traditional/

  1. LouZer

    Joined: Dec 1969

    0

    Re: testudo

    that is not what the research stated. it means that the 'iPod product' is not necessarily associated with the 'computer product'. probably because, to apple's credit, you don't have to use a mac to use an iPod effectively.

    Yeah, but, again, if people don't associate it with Apple, then how does apple take that iPod name and bring in new computer customers?

  1. climacs

    Joined: Dec 1969

    0

    stoopid consumers

    I don't know how anybody could NOT know an iPod is an Apple product!

    I mean, it's one thing to not know what studio produced George Clooney's latest film... but geez, all the iPod TV spots have the Apple logo, the back of the iPod has the logo, you go to the Apple Store to buy the iPod, whenever you read about or hear about iPod the Apple name is usually right next to the word 'iPod'...

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