Consumers aren’t clamoring for 4G (and aren’t sure what it is anyway)
Mobile users are satisfied when they get 4G, but when it comes to making a purchase decision it's pricing that ultimately drives their choice, according to a new report.
Nearly half of consumers can't identify the benefits of 4G, while 60 percent said they weren't willing to pay more for those benefits, according to a June report from Morpace Research & Consulting (PDF).
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Additionally, two-thirds of those surveyed said they weren't willing to upgrade their contracts for 4G, and married people are less likely than unmarried people to pay more for 4G. However, nearly 60 percent of those with 3G service said the expansion of 4G networks would likely affect the purchase of their next phone.
In short, people seem to think 4G is probably important, don't really know much about it, and are ultimately led by their purse strings.
"Network capabilities were a consistent factor in the purchase decision of virtually all consumer demographics," stated the report, [which] "should have an important impact upon the choice of service provider."
However, when asked about the most important factor when selecting a provider, terms of the contract excluded, consumers most often (29%) cited the price of data plans, followed by network coverage (26%).
"Interestingly, network speeds were the most important factor to only 4% of respondents, which may be surprising given the attention that some cell phone network providers have given to that feature in advertising campaigns," the report added.
Also interesting: Those consumers who have made the leap to 4G are a happy lot. Eighty-three percent of consumers with 4G reported being satisfied with their service.
How can carriers capture 4G early adopters, get more dollars back on their 4G investments and boost their overall customer rating? Morpace recommends "better marketing communication with an emphasis placed upon the benefits of a 4G network for a consumer's smartphone."
That happy 83 percent? "This suggests that cellular phone service providers who are willing to invest in their technology and educate consumers," said the report, "coupled with a significant increase in network sizes, will increase their market share."
A note of consolation: Yankee Group, at the end of last year, pegged 2011 as a year of 4G preparation — not adoption. "By the end of 2011," the firm shared in a December report, "the world's most important 4G technology (LTE) will account for only 0.04 percent of all mobile lines."
It added that 4G will also fail to win over the enterprise this year. Less than a third of enterprise decision makers believe 4G is important, the firm stated, adding, "that number won't budge by year end."
With innovation these days moving from the home to the office, piquing consumer interest may be carriers' best bet.
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© 2012 Penton Media Inc.
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