Verizon Wireless and T-Mobile have recently been aggressively promoting new deals in efforts to lure mobile consumers away from other carriers. According to brand intelligence research firm BrandIndex, these competitive marketing programs have resulted in a close tie in the value perception ratings of both companies.
Value perception is a measure of consumers’ opinions, thoughts, or feelings about a company or brand. When consumers have a positive perception about the value of a brand, they are more likely to become new customers or continue using the company’s services.
The Big Mobile Wars
On February 13, Verizon launched its “More Everything” plans, promising more data for some of its customers as well as free cloud storage and free international text messaging. Research from BrandIndex shows that, since early this year, T-Mobile has continued to see its value perception rise with consumers drawn to its no-contract unlimited data deals. T-Mobile is also strategically offering unbundled services, no-contract plans, and free roaming for international data.
AT&T’s perception has also improved since January, albeit modestly. The company even offered cash incentives to customers who switched to its network. Through March, this campaign proved effective in raising its value perception, but such gains seem to have been erased, dropping its value perception down to where it was before the promotion.
Looking for More Value
The YouGov BrandIndex score, which ranges from -100 to 100, considers survey responses from individuals 18 and over on their opinions about the four major wireless carriers: T-Mobile, AT&T, Verizon, and Sprint. When asked, “Does it give good value for what you pay?” Verizon came out ahead, followed closely by T-Mobile. AT&T and Sprint finished in the third and fourth places, respectively.
When it comes to which carrier customers plan on switching to within the next six months, T-Mobile is increasingly the customer favorite; AT&T came in second, while Verizon took the third position, and Sprint the fourth.
Customers Get More for Less
As the value perception competition among the major phone carriers continues to gain steam, companies are implementing marketing and sales programs that offer more services to customers.
The result of this rigorous competition—several previously unheard-of plan features like no contracts, free international messaging, and free international data roaming—are now becoming standard. This means cell phone plans are coming with more features at the same or a lower cost to customers.
What is the most important factor for you when choosing a phone service?
Image courtesy of Flickr
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