September 30, 2002—A nation-wide survey entitled, “Credibility Crisis: Earning Customer Trust,” recently conducted by RKS Research & Consulting, a market research and public opinion polling firm, reveals that business customers continue to express a high degree of support for their local utility, although the energy industry as a whole fared less well.
Three out of four business energy decision-makers give their local suppliers high marks for honesty, ethics and integrity, according to the survey. Overall favorability of the local utility—expressed on a 0 (Poor) to 10 (Excellent) scale—stands at an impressive 7.9, virtually unchanged from the same measure taken in the November, 2001 survey.
RKS completed in-depth telephone interview during the month of August with 602 energy managers representing companies with monthly revenues of $5 million and more. The interviews focused on recent business and energy market events and their effects on business customer satisfaction, confidence and trust in the local utility.
In contrast, U.S. business customers register a steep decline in confidence in the energy industry as a whole, compared to their local providers. Trust in energy suppliers, for example, rates only a 6 on the 0-10 scale, a difference of two full points from the comparable local utility score. More than a quarter—28 percent—of business customers—believe ethical and accounting problems are widespread throughout the energy industry.
Results from the RKS survey convey a mood of institutional disillusionment on the part of U.S. business. For example, more than six in 10 respondents believe that ethical and financial transgressions—as represented by companies such as Enron, Tyco, and WorldCom—are widespread among the nation’s businesses.
Corporate energy managers interviewed for the RKS survey also reflect many of the new realities of the marketplace. For instance, four in 10 manage separate suppliers for electricity and gas services, and these users trust the electricity provider over the gas company by a 2-1 margin. More than a third of these businesses—36 percent—operate in states where they can choose alternative energy suppliers, separate from the local utility, for their electricity needs.
For more information, contact RKS Research.
