To: AJ Berger who wrote (160485 ) 9/8/2000 2:49:46 PM From: kaka Read Replies (1) | Respond to of 176387 AJ Berger, Happy fishing.......... Dell Extends Lead in Corporate Customer Satisfaction as Competitors Fall Back Business/Technology Editors HAMPTON, N.H.--(BUSINESS WIRE)--Sept. 7, 2000--Technology Business Research (www.tbri.com) just completed its second quarter 2000 Corporate IT Buying Behavior & Customer Satisfaction Study: Intel Servers, Desktops and Notebooks, part of a quarterly tracking service measuring corporate end-user satisfaction with desktop, Intel-based server and laptop/notebook systems vendors. This quarter's study was based on the opinions of 535 IT managers at large U.S. corporations from interviews conducted between mid-April 2000 and July 2000. Weighted satisfaction scores declined for all vendors across all form factors this quarter, with the exception of Dell, which earned higher Intel-server satisfaction scores from the previous quarter. The most significant declines in overall satisfaction were for Compaq on both its desktop and mobile platforms and for Hewlett-Packard on its desktop platform. Change of Change of Sample Size 2Q00 Score Rank 1Q00 over 4Q99 2Q00 over 1Q00 Intel Servers Dell 70 89.02 1 0% +0.9% Compaq 168 86.34 2 0% -0.8% Hewlett-Packard 58 86.12 2 +2.0% -2.0% IBM 65 81.58 3 0% -2.4% Desktops Dell 150 86.76 1 0% -2.5% Compaq 106 82.83 2 +4.0% -3.7% Gateway 48 82.30 3 +2.1% -0.5% Hewlett-Packard 64 81.25 4 0% -3.1% IBM 77 79.90 5 -2.0% -2.0% Notebook Dell 125 84.62 1 +3.1% -2.4% IBM 100 78.03 2 -1.4% -2.8% Compaq 78 76.44 3 +3.8% -7.0% Toshiba 52 76.32 3 0% -1.8% The weighted customer satisfaction scores TBR uses as a means of ranking the systems vendors are based on a calculation where each satisfaction score for each attribute is weighted by the stated importance of each attribute. These are tallied up based on a scale of 100 points. Overall satisfaction and customer loyalty ratings are given the highest relative weights. Weights are adjusted each quarter to account for shifts in buying patterns. While the smaller companies and divisions included in the sample (less than 1,500 systems installed) tend to contribute higher satisfaction ratings each quarter than the large organizations, this quarter's segment results showed declining satisfaction which influenced the ratings overall. These results are indicated in the table above. TBR considers a change of 2.75% or greater to be significant. While customer satisfaction among the largest companies remained stable this quarter compared to the preceding quarter, satisfaction ratings among respondents from the smaller companies or divisions fell an average of 4% across all variables. The areas most affected include support, delivery times and configuration. Intel server satisfaction remained the most stable among the form factors. Compaq (NYSE: CPQ) Intel-based server customers this quarter showed declining satisfaction relative to support; however, the server is, and continues to be, Compaq's most respected product line. A significant decline in the desktop segment's satisfaction overall was impacted by declining support and cost of ownership satisfaction ratings. In the mobile arena, satisfaction ratings returned to low levels last seen in 1999 due to deteriorating satisfaction across most categories; Compaq scored below the industry average for product design, configuration, DOA rates, parts availability, reliability and pricing. Dell's (NASDAQ: DELL) customer satisfaction scores this quarter showed a nonspecific, general decline in both the desktop and notebook form factors, possibly the result of Dell's shift in focus to the server product line. Dell was the only vendor with rising server satisfaction ratings, primarily in the area of on-site support, which this quarter was marked as a competitive strength for the vendor. While Dell's scores fell regarding desktop and notebook satisfaction, the marketplace at large experienced declining satisfaction in these segments this quarter, ultimately leading to an increased lead for Dell over the competition across all form factors. Gateway's (NYSE: GTW) customer satisfaction ratings were stable this quarter; however, satisfaction with out-of-box quality (DOA rates) declined relative to the competition, resulting in Gateway being cited as competitively weak in this area. Similarly, its decline in satisfaction relative to replacement parts availability meant Gateway is no longer considered strong in this area when compared to the competition. Hewlett-Packard (NYSE: HWP) has historically been cited as a strong competitor in the area of support, an honor not shared with any other Intel-server vendor until this quarter. The root cause of HP's declining satisfaction in both the desktop and Intel-server segments was attributed to growing inconsistencies regarding support. Perceived overall value (price/performance) was another weakness for HP in both form factors. Server reliability and performance continued to be included as the company's major strengths. IBM's (NYSE: IBM) satisfaction scores continued to average between the B and B+ level. While clearly satisfactory, these scores are not adequate to compete in a landscape that consistently averages at a higher level. Regardless of form factor, IBM received consistently poor ratings in the areas of product availability and delivery times. This quarter showed additional declines in satisfaction relative to these areas. IBM also experienced marginally declining satisfaction in support. IBM regained its No. 2 ranking in notebook satisfaction due to Compaq's declining satisfaction scores. While previous quarters identified all Toshiba's attribute areas as competitive weaknesses, this quarter the vendor was hampered primarily by poor support. Toshiba's satisfaction ratings showed marked declines across all its support attribute areas this quarter, while the remaining satisfaction categories remained relatively consistent. The complete study results are contained in TBR's second quarter 2000 Corporate IT Buying Behavior & Customer Satisfaction Study: Intel Servers, Desktops and Notebooks. The study represents an installed base of approximately 2 million systems and a purchase intent of around 400,000 systems. For vendors, distributors, large-end users and the investment community this program has become the preeminent tactical tool for monitoring customer satisfaction quarter-to-quarter. A customer satisfaction research program subscription, consisting of four quarterly reports, is available for $5,000 annually to interested parties through the contacts listed below. TBR publishes separate quarterly customer satisfaction studies on technical support and RISC-based servers.