J.D. Power and Associates Reports: Costco Ranks Highest in Customer Satisfaction among Eyewear Retailers.

WESTLAKE VILLAGE, Calif. -- Costco ranks highest in satisfying customers among large eye care retailers, according to the J.D. Power and Associates 2005 National Retail Vision Satisfaction Study(SM) released today.

The study measures retailer satisfaction among eye care customers of mass merchandisers, vision chains and department stores. Overall satisfaction is based on six performance factors (listed in order of importance): eyewear purchase experience, cost, retail store environment, choice and variety of eyewear, eye doctor office environment, and eye exam.

Among the 13 retail chains included in the study, the top three retailers are mass merchandisers. Highest-ranked Costco leads the industry in the factors for cost as well as choice and variety of eyewear. Costco also has a high proportion of customers who indicate they will repurchase and recommend eyeglasses and contact lenses from a Costco optical center.

Costco is followed in the rankings by Sam's Club and Wal-Mart, respectively. Sam's Club performs particularly well in the eyewear purchase experience, while Wal-Mart receives the highest ratings from customers for the retail store environment.

"Mass merchandisers seem to have found a balance between satisfying customers on cost and providing an optimal purchase experience -- the two most important factors to consumers. This combination results in strong performances overall," said Steven D. Wood, senior vice president and general manager of the healthcare practice at J.D. Power and Associates. "However, competition among optical retailers is fierce and only customers with the highest possible satisfaction scores indicate a strong likelihood of purchasing from the same retailer again."

The study finds 21 percent of customers who went to an independent eye doctor for their eye exam later bought glasses or contact lenses at a retail store, almost uniformly because of cost.

On average, 9 percent of retail customers reported dissatisfaction with their initial vision correction for eyeglasses and 14 percent for contact lenses. Customers reported an overall 18 percent initial problem rate with eyeglass frames. Most concerning is that overall, 28 percent of those experiencing problems with their frames say their problem was never fully resolved.

The study also finds that on average, 39 percent of customers have a managed vision plan through their employer. Overall, 34 percent of respondents used a managed vision care plan for their eye exam, and 25 percent used a vision plan for their eyewear purchases.

The 2005 National Retail Vision Satisfaction Study is based on responses from 2,861 customers who purchased glasses and/or contact lenses from a mass merchandiser, vision chain or department store in the past 12 months. The study is released in conjunction with the 2005 National Vision Plan Member Satisfaction Study, which measures the satisfaction of national vision plan members.

About J.D. Power and Associates

Headquartered in Westlake Village, J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education and BusinessWeek. The Corporation has more than 300 offices in 40 countries. Sales in 2004 were $5.3 billion. Additional information is available at http://www.mcgraw-hill.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates (www.jdpower.com).