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IDC Believes Brand Image Holds the Key to Internet Services Firms’ Success

FRAMINGHAM, MA – JULY 10, 2001 – Now more than ever, brand image is essential to an Internet service provider’s success. What’s more, factors that contributed to a positive brand just a year ago may now be detrimental. According to IDC, many Internet services firms are busy this year trying to redefine their brand.


"Firms that once reaped the benefits of being most closely associated with the dot-com market are struggling to build the perception that they can serve enterprise clients," said Pooneh Fooladi, senior analyst with IDC’s Internet Services research program. "Conversely, while the global IT service provider was once faulted for being too stodgy to meet the needs of a new breed of client, those same clients are now often choosing these firms because they are global and ‘safe.’"

To determine the role brand plays in corporations’ choice of an Internet services firm, IDC recently surveyed 125 U.S. executives involved in the selection of service firms for their companies’ Web initiatives. "As with most business decision making, an emotional element is involved in choosing an Internet services firm," Fooladi said. "Selecting between service providers is a complicated process involving memory, impression, and experience. All these components affect the service provider’s image."

IDC’s survey respondents were asked to rate over 25 Internet services firms along various categories. Results clearly demonstrate that while the size of the Internet service firm and the number of engagements it has been involved in translate into high levels of overall brand awareness, they do not necessarily translate into a high rating for more specific service categories such as track record, technical expertise, or price competitiveness. "For service providers, the take-away message is that a brand’s effectiveness is dynamic. It’s measured by its alignment with market opportunity, clients’ needs for specific qualities, and the ability to shout the right message," Fooladi said.

Complete results from IDC’s survey are presented in Managing Your eBusiness Brand: End-User Perception in the Marketplace (IDC #B24758). The report ends with recommendations service providers can implement to improve their branding. IDC conducted a similar survey in Europe, and those results are presented in Opportunity and Brand: European Perceptions (IDC #RE01H).

To purchase either report, contact Jim Nagle at 1-800-343-4952, extension 4549, or at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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