Competition is changing the customer satisfaction landscape in wireless markets, according to J.D. Power and Associates’ 1998 U.S. Wireless Customer Satisfaction Study.
Carriers who previously led in customer satisfaction changed in 10 out of 18 markets, said the study.
“With as many as four or five carriers in major markets, consumers are being given wide choices when making a wireless purchase decision,” said Peter Dresch, director of telecommunications market analysis at J.D. Power and Associates. “Fierce competition has caused significant changes in customer satisfaction ratings in the most competitive markets.”
Wireless penetration increased the most in Dallas with 9 percent and San Francisco with 6 percent, driven by entry of Sprint PCS in Dallas and Pacific Bell Mobile Services in San Francisco.
Respondents to the survey indicated call quality was the most important factor in determining their satisfaction with a wireless service. Other important factors included pricing options, corporate capability, customer service, credibility and customer communication, roaming and coverage, handset, billing and cost of roaming, said the report.
Carriers with strong brands-primarily traditional long-distance and regional Bell operating companies-dominated the satisfaction ratings in most markets. Carriers with high ratings in multiple markets include Bell Atlantic Mobile (four out of five markets surveyed), AT&T Wireless Services Inc. (five out of 10), BellSouth Corp. (three out of three), Ameritech Cellular (three out of three) and AirTouch Communications (three out of eight).
Customer satisfaction ratings were very close in many markets including Detroit, Miami, Minneapolis, New York, Pittsburgh and Sacramento, Calif., said the report.
Personal communications services carriers had the highest customer service ratings in three of the five markets where they were evaluated-San Diego with Sprint PCS, San Francisco with Pacific Bell Mobile and Charlotte, N.C., with BellSouth Mobility DCS.
About one-third of households surveyed said they might switch providers during the next year. The primary motivation for considering a change of carriers is price, said the study.
Those who were not thinking about switching carriers indicated calling party pays, Internet access and number portability were the most important features that could cause customers to change carriers.
More than 90,000 households were contacted for the survey and 10,249 households in 22 market completed surveys.
