Family Wireless Plans Prove Popular with Two in Five U.S. Adult Cell Phone Users Participating, According to New Harris Interactive Survey
2 April 2006
Two in five (41%) U.S. adult mobile phone users say they currently have a family plan, and 97 percent of these consumers say they never had a family member leave their plan, according to a recent survey by Harris Interactive(R). Looking to the future, even more subscribers could sign up as one-third (33%) of mobile phone users who are not currently in a family plan say they will consider one when their contract expires. The survey also reveals the factors that fuel purchase decisions when selecting a family plan and who is making these decisions.
Below are some of the results of the Harris Interactive(R) Winter 2006 Telecommunications Report titled "Hot Issues Facing the Industry." The study was conducted online from January 19 to 25, 2006 among 1,067 U.S. adults, of whom 865 are current mobile phone users and 342 are in a family plan.
All in the family
The survey shows that about three-quarters (71%) of family plans primarily consist of just two members, spouses or partners, but the network of family plan users extends far beyond couples. Other members include:
* Parents (19%)
* Adult children ages 18 and over (18%)
* Children ages 10 to 15 (10%)
* Adult children with separate households (8%)
* Children ages 16 to 17 (6%)
* Elderly family members (3%)
* Other (9%)
Who's making the call
When it comes to contributing to the purchase decision for a family plan, 84 percent of adults say they put their two cents in. In some cases, other relatives (19%), parents (12%) and adult children aged 18 and over (7%) and those with separate households (5%) contribute their say.
Deciding factors
There is a mix of factors that impact a purchasing decision, but for those in a family plan, coverage/quality of service (32%) is almost as important as the price/monthly fee (41%)(1). Other factors like the phones available (14%) and customer service (13%) play a slightly smaller role.
Joe Porus, vice president and chief architect for the Technology Research Practice at Harris Interactive, states: "Wireless consumers clearly love family plans because they deliver great value. Wireless service providers offer such plans to build subscriber loyalty and reduce churn. However, this might not prove a winning strategy for providers in the long term. When contracts near expiration, consumers shop for the best deal and if a better family plan presents itself, the entire family will jump to the new provider. So, in the long run, family plans could contribute to lower margins and have little impact on churn."
TABLE 1
MOBILE PHONE USERS WHO HAVE A FAMILY PLAN "Many wireless providers are offering 'family' plans (i.e. pricing featuring
pooled minutes shared among a group of people). Which statement best fits
you?"
Base: Current mobile phone user
Total
%
I currently have a family plan 41
I am not under a family plan and will not consider it in the future 40
I am not under a family plan but will consider it when my
contract expires 19
TABLE 2
THOSE INCLUDED IN THE FAMILY PLAN
"Who is included in the family plan?"
Base: In a family plan
Total
%
Spouse/partner 71
Parents 19
Adult children 18+ 18
Children 10-15 10
Adult children with separate households 8
Children 16-17 6
Elderly family members 3
Children under 10 *
Other 9
* Less than 0.5%.
Note: Multiple-response question.
TABLE 3
THOSE WHO CONTRIBUTE TO PURCHASE DECISION "When selecting a family plan, which family members contribute to the purchase
decision?"
Base: In a family plan
Total
%
Me 84
Parents 12
Adult children 18+ 7
Adult children with separate households 5
Elderly family members 1
Children 10-15 1
Children 16-17 1
Children under 10 *
Other relatives 19
* Less than 0.5%.
Note: Multiple-response question.
TABLE 4
FACTORS AFFECTING PURCHASE DECISION "When selecting a family plan, how much does each of the following affect your
purchase decision?" Respondents asked to indicate a percentage for each factor. Their totals had
to equal 100%. Mean responses given below.
Base: In a family plan
Total
%
Your perception of coverage and quality of 41
service from wireless service provider
Price (monthly fee) 32
Types of phones available 14
Customer service 13
TABLE 5
FAMILY PLAN MEMBERS WHO HAVE LEFT
"Has any member of your family plan left the family plan?"
Base: In a family plan
Total
%
Yes 3
No 97
Methodology
Harris Interactive(R) conducted the online study from January 19 to 25, 2006 among a nationwide sample of 1,067 U.S. adults (aged 18 years and over) of whom 865 are current mobile phone users and 342 of whom are in a family plan. Figures for age by gender, race/ethnicity, education, region, and household income were weighted to reflect the total U.S. adult population. Propensity score weighting was used to adjust for respondents' propensity to be online.
In theory, with a probability sample of this size, one can say with 95 percent certainty that the results for the overall sample have a sampling error of plus or minus 3 percentage points of what they would be if the entire U.S. adult population had been polled with complete accuracy. Sampling error for the various sub-sample results is higher and varies. Unfortunately, there are several other possible sources of error in all polls or surveys that are probably more serious than theoretical calculations of sampling error. They include refusals to be interviewed (nonresponse), question wording and question order, and weighting. It is impossible to quantify the errors that may result from these factors. This online sample was not a probability sample.
These statements conform to the principles of disclosure of the National Council on Public Polls.
About Harris Interactive(R)
Harris Interactive Inc. (http://www.harrisinteractive.com), based in Rochester, New York, is the 13th largest and the fastest-growing market research firm in the world, most widely known for The Harris Poll(R) and for its pioneering leadership in the online market research industry. Long recognized by its clients for delivering insights that enable confident business decisions, the Company blends the science of innovative research with the art of strategic consulting to deliver knowledge that leads to measurable and enduring value.
Harris Interactive serves clients worldwide through its United States, Europe (http://www.harrisinteractive.com/europe) and Asia offices, its wholly-owned subsidiary Novatris in Paris, France (http://www.novatris.com), and through an independent global network of affiliate market research companies. EOE M/F/D/V
To become a member of the Harris Poll Online(SM) and be invited to participate in future online surveys, go to http://www.harrispollonline.com.
Press Contact:
Jennifer Cummings
Harris Interactive
585-214-7720
(1) Respondents asked to indicate a percentage for each of the four
purchase decision factors given. Their totals had to equal 100%. Mean
responses reported.
Source: prnewswire
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