Consumer trust fell in the past two years for most device brands. Among the exceptions, though, is Apple Computer (Nasdaq: AAPL)
, maker of the fantastically popular iPod.
Three factors are important in determining how much consumers trust a brand, according to Forrester's 2005 Technology Brand Scorecard:
- Brand trust -- how much a consumer trusts a brand on a scale from 1 (distrusts a lot) to 5 (trusts a lot);
- Brand potential -- when a household plans to buy or use a brand; and
- Brand adoption -- whether or not a household regularly uses a brand.
Apple earned a C in brand potential, a B in brand adoption and an A in brand trust. The company is able to take advantage of this trust to charge premium prices, according to Forrester. It takes a few years to build product success and therefore earn brand trust, the report notes. Apple has 30 years -- it has just celebrated its birthday last week -- of quality to support
it.
Apple Computer Produces iPods?
It's true. There's a disconnect between the "Apple Computer" and "iPod" brands, Forrester found. Apparently, owners don't associate the iPod with the "Apple Computer" name.
"The success of the iPod has certainly served to demystify Apple to a world of Microsft users," Tim Deal, senior analyst with Technology Business Research, told MacNewsWorld. "However, the iPod has assumed an identity unto itself."
The divide is surprising, considering the public has bought 42 million iPods, and more than 5 million households regularly use them. iPod will probably join "xerox," "jeep," and "polaroid" as a generic name used to reference any MP3-player, Deal said.
Making the Switch
"Apple could double its PC share by winning Microsoft's (Nasdaq: MSFT)
at-risk customers," says Forrester. Over 5 million households gave Microsoft low scores for brand trust. Microsoft received D in brand trust and a D in brand potential, but an A+ in brand adoption.
Users more likely to make the switch from Windows PCs to Macs have higher incomes and are big online spenders. If these at-risk customers switch, the report states, Apple could double its computer share.
Apple might get an opportunity to jump ahead in the next holiday season, thanks to Microsoft's Vista delays, with the latest launch date scheduled for early 2007.
"Ultimately, I believe that the iPod has [led] and will lead more computer users to the Mac platform," Deal says. "The device has served as the company's best calling card, and has created a cultural phenomenon as a result."
Forrester conducted the survey of 4,732 American households in September and October 2005 to find out how much trust consumers have in 48 technology brands -- 22 of which are device brands.