Microsoft's branding problems are a huge part of the company's challenge to finally gain ground against Google (GOOG). In blind tests, most users say they don't see much of a difference between the search results provided by Microsoft or those provided by Google, says Microsoft exec Yusuf Mehdi. But tell people one set of results is "Google," and people invariably say Google's results are better.

Source:http://www.businessinsider.com/microsoft-onlines-hurdle-people-hate-its-brand-2009-4

Remember, these blind tests have been conducted by Microsoft, not a neutral party. I find it somewhat hard to believe that users won't see differences between Google.com and Live.com results quality, I'd like to see another test by a non-conflicted party, as well as one by Google...

i cant help wondering if psychologically the name of the company is having an impact on consumer perceptions.

MICROsoft – micro : small, tiny, insignificant

sometimes the obvious stares you in the face without you realising it.

justinf – I don't think so, Microsoft has the exact opposite perception problem. It is viewed as too big, arrogant, faceless.

(off the Topic)

Justinf as u called the name MICROSoft

i just remembered one Old Micro$oft /Bill Gates Joke Hope u like it

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Bill Gates Spending one night with Julia Roberts says very Happily : Now i Know Why People Called u Pretty Woman .

Julia Roberts, very disgusting and Unhappily Replied: and now i know why people called u micro..... soft (LOL)
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well Brand Image is definitely a factor . Micro$oft has not so much good reputation as Customer friendly .