comScore, Inc. in the results of a study evaluating the behaviors and attitudes of wireless phone subscribers. found that price is important.
The study - conducted from February 29 to March 5, 2008 - found that price has become an increasingly important factor in the purchasing decision and that the use of Mobile Internet among existing subscribers continues to grow, with of the majority of these users accessing the Web at least once a day.
“Overall study results indicate that cellular phones are quickly transitioning from being viewed by consumers as a simple communication device to a multi-functional media and entertainment consumption device,” said Serge Matta, senior vice president of comScore Telecommunications Solutions. “There is a significant opportunity for mobile carriers, advertisers and product developers to capitalize on the industry’s continued trend toward consumer dependence on cell phones.”
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Primary Reason For Switching to Current Cellular Source: The comScore Wireless Report |
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Percent of Survey Respondents |
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Primary Reason for Choosing Carrier |
Oct-Nov 2006 Study |
Feb-Mar 2008 Study |
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Better |
27% |
22% |
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Lower Prices |
14% |
19% |
|
Family/Friends Subscribe to Carrier |
13% |
17% |
|
Plan Features |
9% |
12% |
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Promotional Offer |
8% |
9% |
|
Better Minute Level Plan |
9% |
7% |
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For a Specific Phone |
4% |
3% |
|
Other Reason |
16% |
11% |
Role of Price in Decision-Making Process Increases
As consumer dependence on cell phones grows, it has become increasingly important for marketers to understand the factors motivating a customer to switch carriers. Similar to the 2006 comScore study results, the current study found that coverage, price and family/friend connectivity continue to be the strongest factors in driving consumers’ wireless purchasing decisions.
However, the 2008 study found that consumers’ focus on price has increased, while coverage does not have the commanding lead it once had as a factor. This may be the result of the perception that coverage among leading carriers has become more comparable. In the 2006 study, for example, consumers cited “better coverage” twice as often as “lower price” when noting the primary reason for choosing a wireless service provider.
According to the latest survey results, this gap narrowed significantly, with 22 percent of respondents saying “better coverage” was the main determinant compared to 19 percent who said “lower price” was their primary reason for switching to their current cellular carrier.
The findings, published in the March 2008 comScore Wireless Report, are based on a survey of more than 2,000 U.S. wireless cell phone users, providing comprehensive insights into consumer satisfaction, factors influencing purchasing decisions, mobile Internet adoption, and wireless customer migration.
In order to demonstrate the shifts in the wireless consumer landscape, the findings from this study were compared to results from a similar comScore study conducted from October 25 to November 1, 2006, which included data from more than 1,700 U.S. wireless users. These prior findings were first published by comScore in January 2007.