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Study - Customers Say Trust More Influential Than Bid Pricing - 4/1/2004 - Real Estate Home House Condo

Study: Customers Say Trust More Influential Than Bid Pricing

03/24/2004
A recent study by Intuit’s Construction Business Solutions division found that when choosing a construction firm, customers say that trust and integrity are more influential than the price of the bid. The study found these qualities to be especially important with residential customers, 43 percent of whom cited trust as the number one reason they selected a particular construction firm.

Conducted by independent research firm Decipher, the study surveyed more than 500 customers of commercial and residential construction firms.

Personality and professionalism also count. More than 80 percent of respondents cited these characteristics as important factors in selecting a firm. These qualities, along with trade skill sets, contribute to a contractor's reputation and can mean the difference between success and failure when dealing with customers. When asked how they had heard about the firms they hired, more than 75 percent of respondents from each group favored word-of-mouth over telephone directory and Web research.

"The message for contractors is clear: company integrity is as critical to the success of a construction business as the cost of the job and the quality of the finished product," said Carol Novello, president of Intuit Construction Business Solutions. "The study shows that it is just as important to have the right business management skill set and processes as it is to have the ability to lay a foundation and finish a job."

Customer Satisfaction Ratings
The Intuit study found that contractors are generally succeeding in keeping their customers happy. The survey revealed:

• 94 percent of businesses would recommend their construction firm
• 84 percent of homeowners said they would recommend their contractor
• Approximately 60 percent of those commercial and residential customers trust the firms with which they hired/do business

Commercial and residential customers also agreed on their main reasons for dissatisfaction. A total of 56 percent of residential and 40 percent of commercial customers cited job quality as their primary reason for dissatisfaction. Other key factors included low productivity and efficiency, and both groups felt that construction firms need to do a better job communicating with them. In fact, 41 percent of commercial businesses wanted more clarity and promptness in the communications from their construction firm.


Related Articles:
ToolBase E-News volume 143 | Ask Realty Times - May 7, 2004
Building News Coast to Coast - August 23, 2004 | 10 Tips for Selling in the Fall
 

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