American Customer Satisfaction Index (ACSI)

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Definition: American Customer Satisfaction Index (ACSI)

An economic indicator established in 1994 to measure products’ and services’ quality as perceived by the customer. University of Michigan's Ross School of Business developed some multi-equation econometric model which uses customer interviews as input to give ACSI.


ASCI is measured on a scale of 0 to 100. The arrow in the above model shows the impact. The model shows that what the factors/drivers to retain customer loyalty are.

• Customer Satisfaction (ACSI)

ASCI is measured on the weighted average of the results of 3 surveys (Perceived quality, perceived value & customer expectations) for the given product and service quality. Proprietary software technology is used to measure weights of all the questions for ASCI.


• Customer expectations

It is the customer’s anticipation of the quality of a company’s product and service. Expectation can be from- (i) prior consumption experience (also some non-experiential information like advertising and word-of-mouth, and (ii) Forecast of a company’s ability to deliver the required quality may be because of its Image in the market.


• Perceived quality

Customers perceive quality by evaluating their recent experience of the quality of the product or service of the company.


• Perceived value

It is the ratio of perceived quality and the price paid by a customer. It is important to increase customer loyalty by focusing more on the first purchase customers and hence initiate repeat purchase behavior.


• Customer complaints

Customer complaints are inversely proportional to the customer satisfaction. The less satisfied the customer is, the more will the complaints.


• Customer loyalty

It is the customers’ likelihood to repurchase from the same supplier, company or the retailer irrespective of the various price points set by them.


ACSI is measured Company wise, Industry wise, Sector wise and Brand wise. It is a measure which helps investors to identify the financial position for the future.


Hence, this concludes the definition of American Customer Satisfaction Index (ACSI) along with its overview.

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