Smartphone Pricing's Up, But Customers Are Happier - InformationWeek

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IoT
Mobile

Smartphone Pricing's Up, But Customers Are Happier

J.D. Power reports that costs for smartphone customers have increased, but that these consumers are happier than they've ever been -- especially with AT&T.

(Image: Mutlu Kurtbas/iStockphoto)

(Image: Mutlu Kurtbas/iStockphoto)

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shamika
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shamika,
User Rank: Ninja
2/27/2016 | 8:56:27 PM
Re: The psychology of pricing
In my view the customers are more focus on the features than the price. 
Per Sjofors
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50%
Per Sjofors,
User Rank: Apprentice
2/22/2016 | 12:24:09 PM
The psychology of pricing
First a disclaimer: I founded and run America's most trusted pricing research and advisory firm. (Atenga Inc)

It is no surprise for me that higher prices of smartphones drives higher satisfaction - anytime we buy something that we see as an aspirational purchase (we buy something that we wanted to buy for some time and finally were able to do to so), we are more likely to feel more satisfied with it. We like to pat ourselves on the back.

In a famous experiment from a couple of years ago, researchers put volunteers in MRI machines and had them taste wine. When they were told they tasted expensive wine, the pleasure center in their brains fired up. When they were told they tasted cheap plonk, it did not. But the wines they tasted were actually always the same wine! So higher prices, to a point, drives higher consumer satisfaction. The trick, of course, is to know exactly where that point is.  
shamika
50%
50%
shamika,
User Rank: Ninja
2/21/2016 | 9:41:37 PM
Re: I'm happier!
Interesting article. I think the main reason is the options it has given to the customers. At the same time its more user friendly and easy to use.
TerryB
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50%
TerryB,
User Rank: Ninja
2/19/2016 | 1:38:33 PM
I'm happier!
I've always had to administer our AT&T company account, make all plan changes, order new phones, etc. I've absolutely hated that (my real job is IT developer/manager). With this new paradigm of separating phone purchase from plans, it's led us to create a BYOD program and just reimburse employees a specified amount each month for plan, then give them $500 allowance every two years for phone. Then they can optimize with their families and their personal usage, I'm out of loop. Woo hoo!

Here is the best part. It became clear our AT&T biz rep was AT&T's rep, not ours. Once they began publishing phone costs in Premier web portal separate from 2 year contract plans, I noticed our plan costs did not decrease. We were paying $40 for 450 minutes voice, $20 for unlimited text and $26 for 2GB of data, that was best I could do. The consumer AT&T plans were $55 for unlimited voice and text and 2GB of data. The consumer AT&T reps were laughing when they heard what we were paying on biz side with our FAN discounts.

How sad is that. You'd like to think reps would look at your biz from time to time and help you optimize when things changed. Not these clowns. I was happy with quality of the National Business Center reps when I'd have to call for things I couldn't do in portal. But these AT&T account reps are a joke, strictly a sales function where optimizing their commission appears to be primary goal.
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