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Customer Satisfaction Analysis Among Pest Management Professionals 2004

Product Type: Market Research Report
Published by: Kline & Company, Inc.
Published: September 2004
Product Code: R379-0155
Description
INTRODUCTION

Kline & Company, a leader in market research for the specialty pesticides industry and in business-tobusiness customer satisfaction research, is pleased to present to the U.S. pest management market a new customer satisfaction and benchmarking analysis. The focus of this new research project is quantifying customer satisfaction levels among U.S. pest management firms with their manufacturers. As an optional component to the project, Kline has also quantified customer satisfaction levels among pest management distributors.

It is a given in the pest management business that product performance is a major determinant of customer satisfaction. Yet, as company consolidation continues, most of the surviving market leaders have a stable of similar products covering most segments. As this market environment evolves, product differences are likely to become less pronounced, and perceptions of manufacturers may become more important as drivers of customer satisfaction.

CUSTOMER SATISFACTION ANALYSIS AMONG PEST MANAGEMENT PROFESSIONALS 2004 has been specifically designed to assist manufacturers of pest control products in answering a variety of strategically important questions regarding their customers' needs, including:
  • How are we viewed by current and potential customers: PMPs and distributors?
  • How do we rank against our competitors in servicing the market?
  • Is our image as strong in the marketplace as we think it is?
  • How are our technical service and R&D capabilities perceived by our customers?
  • How should we prioritize critical customer issues?
  • Has a recent customer service initiative achieved the desired effect with customers?
  • What improvements in the way we meet customer needs will generate the biggest return?
PROGRAM OBJECTIVES

CUSTOMER SATISFACTION ANALYSIS AMONG PEST MANAGEMENT PROFESSIONALS 2004 is an indepth analysis designed to: (1) develop an understanding of the key issues of importance to the U.S. pest management customer base; (2) quantify the relative importance of purchase decision factors; and (3) compare and contrast perceptions of each subscriber firm relative to its competition. As an optional component, the project also contrasts PMP views and distributor views of manufacturers.

Key program objectives of this report series are as follows:
  • Identify the key factors used by PMPs and distributors (optional) to make purchase decisions
  • Determine the importance of each factor
  • Measure the perceived performance of each manufacturer and against the purchase decision factors
  • Compare the importance of each manufacturer to the PMP and distributor customer base
  • Compare each supplier against its competition as a whole to determine the satisfaction level of each manufacturer's customer base
  • Complete a mirror analysis (extra cost option only available to initial subscribers) to compare the evaluations of PMP customers with the self-evaluation of surveyed staff members of each company that selects this option
  • Suggest to each supplier separately the top priority improvements that are likely to give the biggest return for the time, effort, and money spent
REPORT PROGRAM AND SCOPE

- Purchase Decision Factors and Their Importance -

The first step is an analysis and relative ranking by importance of 28 key purchase decision factors (attributes) used by purchasers of pest management chemicals. The ranking identifies those attributes that are most important in a customer's decision in selecting a manufacturer. A sample list of factors is provided below:
  • Product performance (by specific product types)
  • Education and training
  • Environmental friendliness
  • Supplier technical support
  • Innovation
  • Logistics and distribution
  • Lowest price per treatment unit
  • Non-cash incentive programs
  • Packaging
  • Pricing according to total value received
  • New product development capability
  • Consistent product quality
  • Product safety
  • Profit
  • Promotion/advertising support
  • Supplier sales rep support
  • Order placement
An example of how the importance of each factor was reported is shown in Figure 1. Note that this figure is supplied only as an example and does not contain actual data.

- Perceived Supplier Performance -

PMPs and distributors (optional) rated each manufacturer from excellent to poor on a six-point scale on each purchase decision factor and on the overall perception of the manufacturer. Product performance ratings were tied to a specific product type (e.g., termiticides, general pest products). Figure 2 provides an example of a deliverable for the analysis of manufacturer performance.

- Manufacturer Importance -

Manufacturer importance is determined by a series of questions to gauge which manufacturers a customer: (1) is aware of but does not buy from; (2) purchases from but only as a secondary supplier; or (3) considers a major supplier. It is understood that the actual product transaction normally involves a distributor, so this study examines the importance of, and differences in, both PMP and distributor customers' perceptions of the manufacturers. Differences among manufacturer awareness ratings can measure market success and can also indicate which suppliers best retain customers.

The following manufacturers were included in our survey:
  • BASF
  • Bayer
  • Dow AgroSciences
  • FMC
  • Syngenta
- Performance Comparison Analysis - end user perceptions -

The Performance Comparison analyses provide a benchmark analysis of marketplace satisfaction for each pest management chemical manufacturer included, based on the supplier attributes selected for the needs analysis.

By statistically analyzing the performance ratings, we can provide a quantitative measure of each firm's performance in meeting customer expectations. This will also identify ways to improve subscribers' understanding of their customers' evolving needs. The following questions are addressed:
  • Which manufacturers are the leaders from the customers' perspective?
  • What are the strengths of manufacturer firms as perceived by their customers?
  • What are the relative strengths and weaknesses of manufacturers versus their competitors?
  • What improvements in performance should each manufacturer pursue first (company-specific data)?
- Distributor Analysis (optional component) - Subscribers may elect to purchase a distributor survey as an optional component. This segment will solicit manufacturer ratings and comments from distributors that will be compared with those from PMPs. The distributors included in this survey are listed below:
  • B & G
  • Chem-Tech
  • JC Ehrlich
  • Lesco
  • Oldham
  • Pest Control Supplies
  • Residex
  • Southern Mill Creek
  • Target
  • Univar (branches)
Data is shown for both PMPs and distributors on a national basis.

- Action Recommendations to Enhance Customer Satisfaction - The culmination of this analysis is a set of manufacturer-specific action steps suggesting improvements that could be made in customer perceptions and the relative priority for each. Figure 3 provides an example of the format used to depict the areas of improvement that will generate the biggest customer response. This analysis will be used to determine what corrective action, if any, should be taken first.

RESEARCH METHODOLOGY

Kline & Company constructed a
Table of Contents
TABLE OF CONTENTS

2. PURCHASE DECISION FACTOR OVERVIEW
Table 2-1 PURCHASE DECISION FACTORS USED IN THIS REPORT

Table 2-2 IMPORTANCE SUMMARY OF ALL FACTORS BY ALL RESPONDENTS
Table 2-3 PRODUCT-RELATED FACTOR GROUP

Table 2-4 SUPPORT-RELATED FACTOR GROUP

Table 2-5 MARKETING-RELATED FACTOR GROUP

Figure 2-1 PURCHASE DECISION FACTOR IMPORTANCE
Figure 2-2 IMPORTANCE RATINGS FOR THE PRODUCT-RELATED GROUPING OF PURCHASE FACTORS
Figure 2-3 IMPORTANCE RATINGS FOR THE SUPPORT-RELATED GROUPING OF PURCHASE FACTORS
Figure 2-4 IMPORTANCE RATINGS FOR THE MARKETING-RELATED GROUPING OF PURCHASE FACTORS
Figure 2-5 STATISTICALLY DERIVED IMPORTANCE BY PURCHASE FACTOR GROUPINGS
Figure 2-6 IMPORTANCE OF VARIOUS INFORMATION SOURCES TO PMPs
Figure 2-7 PERFORMANCE RATINGS FOR ALL PMPs AND ALL PURCHASE FACTORS
3. PURCHASE DECISION FACTOR RATINGS
4. COMPANY FACTOR ANALYSIS RATINGS
Figure 4-1 OVERALL PERFORMANCE RATINGS BY COMPANY
Figure 4-2 PRODUCT-RELATED FACTOR RATINGS FOR BASF
Figure 4-3 SUPPORT-RELATED FACTOR RATINGS FOR BASF
Figure 4-4 MARKETING-RELATED FACTOR RATINGS FOR BASF
Table 4-1 REASONS FOR THE PERFORMANCE RATING GIVEN TO BASF
Table 4-2 SUGGESTED AREAS FOR IMPROVEMENT FOR BASF
Figure 4-5 PRODUCT-RELATED FACTOR RATINGS FOR BAYER
Figure 4-6 SUPPORT-RELATED FACTOR RATINGS FOR BAYER
Figure 4-7 MARKETING-RELATED FACTOR RATINGS FOR BAYER
Table 4-3 REASONS FOR THE PERFORMANCE RATING GIVEN TO BAYER
Table 4-4 SUGGESTED AREAS FOR IMPROVEMENT FOR BAYER
Figure 4-8 PRODUCT-RELATED FACTOR RATINGS FOR DOW AGROSCIENCES
Figure 4-9 SUPPORT-RELATED FACTOR RATINGS FOR DOW AGROSCIENCES
Figure 4-10 MARKETING-RELATED FACTOR RATINGS FOR DOW AGROSCIENCES
Table 4-5 REASONS FOR THE PERFORMANCE RATING GIVEN TO DOW AGROSCIENCES
Table 4-6 SUGGESTED AREAS FOR IMPROVEMENT FOR DOW AGROSCIENCES
Figure 4-11 PRODUCT-RELATED FACTOR RATINGS FOR FMC
Figure 4-12 SUPPORT-RELATED FACTOR RATINGS FOR FMC
Figure 4-13 MARKETING-RELATED FACTOR RATINGS FOR FMC
Table 4-7 REASONS FOR THE PERFORMANCE RATING GIVEN TO FMC
Table 4-8 SUGGESTED AREAS FOR IMPROVEMENT FOR FMC
Figure 4-14 PRODUCT-RELATED FACTOR RATINGS FOR SYNGENTA
Figure 4-15 SUPPORT-RELATED FACTOR RATINGS FOR SYNGENTA
Figure 4-16 MARKETING-RELATED FACTOR RATINGS FOR SYNGENTA
Table 4-9 REASONS FOR THE PERFORMANCE RATING GIVEN TO SYNGENTA
Table 4-10 SUGGESTED AREAS FOR IMPROVEMENT FOR SYNGENTA
5. DISTRIBUTOR PERSPECTIVE
Figure 5-1 IMPORTANCE RATINGS BY DISTRIBUTORS
Table 5-1 DISTRIBUTOR RATINGS OF SUPPLIERS TO THE PMP MARKET FOR THE MOST IMPORTANT FACTORS
Table 5-2 DISTRIBUTOR RATINGS OF SUPPLIERS TO THE PMP MARKET FOR LESS IMPORTANT FACTORS
7. SUMMARY AND COMPANY CONCLUSIONS
Table 7-1 DIFFERENCES IN HIGHEST TO LOWEST PERFORMANCE RATINGS BY COMPANY AND BY FACTOR
Figure 7-1 PURCHASE FACTOR GROUPINGS FOR DERIVED IMPORTANCE

Figure 7-2 DERIVED FACTOR IMPORTANCE VALUE MAP
Figure 7-3 PURCHASE FACTOR IMPORTANCE BY GROUPING
BASF
Table 7-2 BASF'S RELATIVE COMPANY PERFORMANCE RATINGS
Figure 7-5 BASF'S SECONDARY FACTOR ANALYSIS: PMP PERSPECTIVE
Figure 7-6 BASF'S CUSTOMER SATISFACTION GRID: PMP PERSPECTIVE
BAYER
Table 7-3 BAYER'S RELATIVE COMPANY PERFORMANCE RATINGS
Figure 7-7 BAYER'S SECONDARY FACTOR ANALYSIS: PMP PERSPECTIVE
Figure 7-8 BAYER'S CUSTOMER SATISFACTION GRID: PMP PERSPECTIVE
DOW
Table 7-4 DOW'S RELATIVE COMPANY PERFORMANCE RATINGS
Figure 7-9 DOW'S SECONDARY FACTOR ANALYSIS: PMP PERSPECTIVE
Figure 7-10 DOW'S CUSTOMER SATISFACTION GRID: PMP PERSPECTIVE
FMC
Table 7-5 FMC'S RELATIVE COMPANY PERFORMANCE RATINGS
Figure 7-11 FMC'S SECONDARY FACTOR ANALYSIS: PMP PERSPECTIVE
Figure 7-12 FMC CUSTOMER SATISFACTION GRID: PMP PERSPECTIVE
SYNGENTA
Table 7-6 SYNGENTA'S RELATIVE COMPANY PERFORMANCE RATINGS
Figure 7-13 SYNGENTA'S SECONDARY FACTOR ANALYSIS: PMP PERSPECTIVE
Figure 7-14 SYNGENTA'S CUSTOMER SATISFACTION GRID: PMP PERSPECTIVE
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