Mobile Phone Owners are More Satisfied and Spend More, Says JD Power

jdpowrlogo.jpgCustomer satisfaction with wireless phones has increased as they get more features, even with higher costs according to the J.D.
Power and Associates 2008 U.S. Wireless Mobile Phone Evaluation Study-Volume 2 .

The study finds
that the average reported purchase price for a wireless handset has
increased substantially to $107, up $15 from 2007. The increase in the
average purchase price can be partially attributed to the recent surge
in popularity of smartphone devices, such as the RIM BlackBerry, Palm
Treo and Apple iPhone, as well as music-enabled handsets and messaging
phones, all of which typically have higher price points.

Customers also report spending more on their wireless service-an average of
$80 per month (including federal and state taxes)-as they are more
inclined to purchase data plans, text messaging packages and
downloads.   

The study finds
that overall satisfaction with mobile phones has improved significantly
to 719 on a 1,000-point scale, a 9-point increase from six months ago.

The study measures customer satisfaction with wireless handsets
by examining five key factors. In order of importance, they are:
physical design (24%); operation (22%); features (20%); handset
durability (19%); and battery function (15%).

"Customers
are increasingly integrating feature-rich phones into their daily
routines and finding it rewarding," said Kirk Parsons, senior director
of wireless services at J.D. Power and Associates. "The ability to
communicate by sending instant messages and e-mails, access the
Internet or get directions via GPS are just some of the many features
that handset owners are growing progressively more inclined to utilize."

The
study also finds that satisfaction levels are higher among younger
handset owners, as they are more inclined to own feature-rich phones.
The overall satisfaction score among 18- to 24-year-olds is 750,
compared with 709 among customers between 45 and 64 years old.

"As
more customers continue to upgrade to mobile phones that allow for
multiple methods of communication and access to endless information, as
well as provide convenience and entertainment, overall handset
satisfaction should continue to rise," said Parsons. "It is important,
however, that manufacturers ensure these features are intuitive and
wireless carriers provide their customers with the support to properly
use these features to maximize their experience."  

Sony
Ericsson
ranks highest in overall wireless customer satisfaction for a
third consecutive time with a score of 739, performing particularly
well in features and battery function. LG (733) and Samsung (724)
follow in the rankings.

The study also finds several key wireless handset purchase patterns:

  • Nearly one-half (49%) of wireless users report they are likely to
    purchase a new phone in the coming year, while only 45 percent said the
    same six months ago.
  • Thirty percent of customers indicate they would like to have GPS
    software on their next phone, while 25 percent said they would like a
    touch screen. 
  • The most frequently reported reasons customers give for selecting
    their current cell phone include: pleasing design style (43%); received
    for free (25%); easy to use (25%); discounted/reduced price (23%);
    digital camera features (20%); and variety of features offered (19%).

Volume 2 of the 2008 U.S. Wireless Mobile Phone Evaluation Study is
based on experiences reported by 16,717 wireless users who have owned
their current mobile phone for less than two years. The study was
fielded between February and June 2008. Visit JDPower.com to read an article or view customer satisfaction ratings for wireless service and carrier performance, call quality, customer care, retail sales and mobile phone handsets.