WESTLAKE VILLAGE, Calif.—U.S. consumers are increasingly focusing on devices when considering wireless services, according to a survey from J.D. Power and Associates. The market research firm found that 19 percent of customers cite the type or brand of cell phone as a key factor during the initial selection process, up from 11 percent two years ago.
While the network operator remains the top factor in choosing a service, it has “decreased significantly in importance,” down 8 percentage points from the 2004 study to 40 percent this year. The study underscores the importance of popular handsets such as Motorola Inc.’s Razr, which continues to enjoy success nearly two years after its U.S. debut.
And while carriers appear to be losing some sway among consumers, they are increasingly using hot handsets to entice customers to sign service contracts.
“As service plans are more competitively priced, retail outlets of the major wireless carriers are also using cell phones as a key differentiator—typically offering exclusive deals on new and popular models,” said Kirk Parsons, senior director of wireless services at J.D. Power. “Carriers and retail chains are making these trendy cell phone models more available in order to increase store traffic, raise market share and, more importantly, increase the likelihood of repeat purchases.”
T-Mobile USA Inc.-owned stores once again ranked highest among tier-one carriers, according to the study, marking the operator’s fourth consecutive first-place finish.
J.D. Power also found that the average wireless retail sales transaction takes about an hour, down 10 minutes from 2005, and that users who purchase handsets in big-box retailers generally use their handsets less than those buying from carrier-owned stores.
