THE HARRIS POLL #25, May 10, 2000

COMPUTER SOFTWARE AND HARDWARE COMPANIES TOP THIS YEAR’S LIST OF COMPANIES DOING BEST JOB OF SERVING CONSUMERS. OIL COMPANIES FALL SHARPLY SINCE LAST YEAR

MANAGED CARE, PHARMACEUTICAL, HEALTH INSURANCE AND TELEPHONE COMPANIES HAVE ALL LOST MUCH GROUND IN LAST 3 YEARS

________________________________________

by Humphrey Taylor

The computer software industry – fractionally ahead of the computer hardware industry – does a better job than any other industry of serving consumers. There is some irony in this result at a time when the Justice Department is arguing, successfully so far, that Microsoft, the world’s largest software company, is a monopoly, has used its power to damage its competitors and consumers, and should be split into two companies.

Every year at this time the Harris Poll asks a nationwide cross-section of adults to rate 13 industries as to whether they are doing a good or a bad job of serving their consumers. This year’s survey of 1,024 adults was conducted by telephone between April 7^th and April 10^th.

Fully 78% of the public believe that computer software companies are doing a good job of serving the consumers, followed by 76% who believe computer hardware companies are doing so. Other industries which do well and come near the top of the list include banks (73%), and hospitals (72%).

At the bottom of the list, fully 62% believe tobacco companies do a bad job of serving consumers and only 28% think they do a good job. Managed care companies have fallen sharply every year for the last three years and now (29% good job, 56% bad job) score almost as badly as tobacco. The health insurance industry, of which managed care is a part, has also slipped badly and is now (39% good job, 54% bad job) third from the bottom of this list.

The biggest change, by far, between this year’s results and last year’s is that the oil industry has fallen precipitously because of the rapid inflation of gas prices. A year ago a 55% majority felt that oil companies were doing a good job of serving consumers; this year that has dropped to 39%. This sixteen point fall is the biggest change in any industry in one year since Harris began asking these questions in 1997.

Three other industries have fallen significantly since last year – pharmaceutical companies (from 66% to 59%) airlines (from 71% to 66%) and managed care companies (from 34% to 29%).

Over the last three years, five industries have seen a fall of sixteen percentage points or more. Managed care companies (from 51% to 29% saying good job) have fallen the farthest. Both pharmaceutical companies (from 79% to 59% saying good job) and oil companies (from 59% to 29% saying good job) have clearly been very badly hurt by rising prices. Three years ago telephone companies (80% saying good job) came equal top of the list; now (with only 64% saying good job) they are in the middle of the list.

One other pattern is noteworthy. Three out of the four industries which have fallen the farthest, the pharmaceutical, managed care and health insurance industries are all in the health care field.

"And now some questions about different industries. Do you think (READ EACH ITEM) generally do a good or bad job serving their consumers?"

NOTE: In 1997 "computer companies" were rated together (i.e. hardware and software companies were not separate).

"Do you think (READ EACH ITEM) generally do a good or bad job of serving their consumers?"

NOTE: In 1997 "computer companies" were rated together (i.e. hardware and software companies were not separate).

This Harris Poll was conducted by telephone within the United States between April 7 – 10, 2000, among a nationwide cross section of 1024 adults. Figures for age, sex, race, education, number of adults and number of voice/telephone lines in the household were weighted where necessary to bring them into line with their actual proportions in the population.

In theory, with a sample of this size, one can say with 95 percent certainty that the results have a statistical precision of plus or minus 3 percentage points of what they would be if the entire adult population had been polled with complete accuracy. Unfortunately, there are several other possible sources of error in all polls or surveys that are probably more serious than theoretical calculations of sampling error. They include refusals to be interviewed (non-response), question wording and question order, interviewer bias, weighting by demographic control data and screening (e.g., for likely voters). It is difficult or impossible to quantify the errors that may result from these factors.

____________________________________________________________

12144
Q405