Magazine

Table: Big Deal


Most High-Profile Mergers Left Consumers Feeling Dissatisfied Two Years After They Happened...

BUYER

TARGET

CHG. IN CUSTOMER SATISFACTION

COMPANY RESPONSE

BUYER

INDUSTRY

Charter Comms AT&TBroadband Assets -12.7% -4.7% Does its best to satisfy customers

Qwest US West -12.5 -1.4 Dramatically improved its service last year

BP Amoco -8.4 -3.8 Company surveys show customer satisfaction is now higher than before the merger

First Union Core States -8.1 -2.8 Paid high premium and moved too quickly to consolidate operations

SBC Ameritech -7 -4.1 Company surveys show quality of service is better than before the merger

Dillards Mercantile Stores -6.8 0 Declined to comment

Exxon Mobil -6.3 -3.8 Company surveys do not show a decline in customer satisfaction

Bank One First Chicago -5.7 -2.8 Operations were not integrated for years and branches were closed

Worldcom MCI -5.4 -4 Almost every carrier had a merger that affected customer service

J.C. Penney Eckerd -3.8 -1.4 Diverted focus from fixing department stores; failed to dominate drug retailing

AT&T Tele-Communications -2.7 -4.1 Declined to comment; sold the assets

Kroger Fred Meyer -2.7 0 Success overall; understand must satisfy customers every time they shop

Unilever BestFoods -2.4 -2.4 Declined to comment

Kraft* Nabisco -1.2 -1.2 Declined to comment

...And Many Didn't Improve Consumer Sentiment...

Hewlett Packard Compaq 0 +4.2 Recent internal surveys show a rise in customer customer satisfaction

Daimler Chrysler 0 +1.3 Fluctuations in customer satisfaction are not merger-related

Pepsi Quaker 0 +1.2 Customer satisfaction scores are not merger-related

Comcast AT&T Broadband 0 0 Service disruptions in the short-term are necessary for a better product

Albertsons American Stores 0 0 No comment

Hilton Promus 0 0 Customer satisfaction is now higher than before the merger

Ford Volvo 0 0 Customer satisfaction is merger-related

Bell Atlantic GTE 0 -1.4 Bell Atlantic took advantage of the best practices and people

Nations Bank BankAmerica 0 -2.8 Company surveys show customer satisfaction has been improving ever since the deal

SBC Pacific Telesis 0 -3.9 Company surveys show quality of service is better than before merger

...While A Few Created Better Feelings

First Union Wachovia +10.6 +5.6 Focused on retaining customers and took more time to integrate

Nestle Ralston Purina +3.7 +1.2 Quickly introduced new and improved products

Bell Atlantic NYNEX +1.4 -3.9 Bell Atlantic took advantage of the best practices and people

General Mills Pillsbury +1.2 -1.2 Quickly extended PR push for Pillsbury lines

*Kraft is 85% owned by Altria which merged Nabisco into it.

Data: University of Michigan Customer Satisfaction Index, Thomson Financial Corp., Companies


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