2013 U.S. Wireless Full-Service and Non-Contract Purchase Experience Study--Volume 1 Results

Customer satisfaction with their wireless purchase experience is higher among those with a 4G-enabled device than among those with a less technologically advanced device, according to the recently released J.D. Power and Associates 2013 U.S. Wireless Full-Service Purchase Experience StudySM--Volume 1 and 2013 U.S. Wireless Non-Contract Purchase Experience StudySM--Volume 1.

Now in their 10th year, the two studies evaluate the wireless purchase experience of customers using any one of three purchase channels: phone, retail (in-store), and online. Overall satisfaction with both full-service and non-contract branded carriers is based on six factors (in order of importance): store sales representative; website; phone sales representative; store facility; offerings and promotions; and cost of service.

The 2013 Wireless Full-Service Purchase Experience Study--Volume 1 finds that among full-service customers who own a 4G-enabled device, satisfaction with their most recent purchase experience is 774 (on a 1,000-point scale), considerably higher than among those who own a previous-generation network technology device, such as a 3G smartphone or feature phone.

Full-service customers who purchase a device in a retail store provide higher satisfaction ratings than do non-4G customers for fairness of price paid for additional services, attractiveness of phones, and equipment to choose from.

"Customers making purchases in retail stores have an opportunity to touch handsets and accessories and understand the value associated with each, something not possible over the phone," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "In addition, carriers have invested heavily in merchandising, store upgrades, and staff training to make the overall purchase experience for customers more enjoyable and efficient in the retail store."

The study finds a direct correlation between a knowledgeable salesperson regarding device technology and higher levels of customer satisfaction with the overall retail experience.

In contrast, the 2013 Wireless Non-Contract Purchase Experience Study--Volume 1 finds that satisfaction with the overall purchase experience among non-contract customers who purchase their phone online is 789, compared with 768 among those who purchase their device over the phone and 742 among those who buy their device in a store, trends that are opposite those in the full-service sector.

Other key findings from the study include:

  • Satisfaction is higher when shopping on general store websites (772) than on big box store (752) and carrier (736) websites.
  • Satisfaction is higher among customers with a 4G phone than among those with a non-4G phone (774 vs. 753, respectively).
  • Satisfaction among 4G retail customers is 821 when the technology is explained to them during the purchase process, compared with 714 among those who do not receive an explanation.
  • On average, customers with a 4G phone spend $24 more per month than do those with a non-4G phone.

For a fourth consecutive reporting period, Sprint Nextel ranks highest in overall customer purchase experience satisfaction among major full-service wireless carriers, with a score of 778. Verizon Wireless (764) follows in the rankings.

Boost Mobile (773) ranks highest in overall customer purchase experience satisfaction among non-contract service carriers. MetroPCS (768) and Virgin Mobile (767) follow in the rankings.

Based on both studies, J.D. Power and Associates offers the following tips to consumers:

  • If you're making a contract purchase, carefully examine the terms of the contract. Pay attention to any provisions for technology updates/upgrades.
  • Combine online and in-store shopping, going online first and compiling a list of questions and issues to consider. Then, discuss these issues with an in-store salesperson.
  • Consider how you're likely to use your device, as well as how often, before deciding on a full-service or a non-contract arrangement. A higher initial cost might lead to savings in the long run.

The 2013 Wireless Full-Service Purchase Experience Study--Volume 1 is based on responses from 7,777 wireless customers. The 2013 Wireless Non-Contract Purchase Experience Study--Volume 1 is based on responses from 3,533 wireless customers. Both studies are conducted among current wireless service customers who indicate having had a sales transaction with their current carrier within the past 6 months. The studies were fielded from July through December 2012.

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