The primary objective of this study was to determine differences in purchase rates of two types of navigation services, also known as location-based services (LBS), available for customers’ cell phones. The study also sought to measure pricing for each of the navigator options, to assess general reasons for disinterest in LBS among certain customers, to understand consumers’ perceptions of quality tied to each of the navigator brand names, and to gauge interest in typical LBS features and capabilities.
| service: | Quantitative |
| completion date: | June 2007 |
| the approach: | Current customers who had previously indicated a definite, probable or possible likelihood of purchasing a navigation service were invited to participate in the survey through a company-branded e-mail. The online survey was fielded over a four-day period. |
| the results: | The survey inquired about customers’ interest in a portable navigator service available on their mobile phones as either a daily/per-use or monthly plan basis. Survey participants were asked to assess one offering, whose name included both a well-known mobile phone service provider and the brand of a well-known navigation application, versus another, which included two separate navigation applications ─ each featuring one of the brands described above ─ sold together as a bundle. Each offering was evaluated and compared for purchase intent, brand preference, reasons for purchasing or not, and customers’ willingness to purchase at lower, higher and optimized price points. The study also included an analysis of customers’ preferences for a monthly service plan versus a daily or per-use billing structure, providing a quantifiable basis for a business model likely to appeal to the greatest number of consumers. Low, high and market optimized price points were determined using recognized pricing models, and consumer feedback on willingness to purchase and perceived value is critical for setting realistic pricing goals. Study participants also ranked each of the navigation applications according to its appeal, relevance and quality, revealing a strong correlation between user age and brand preference. In addition, the study gathered information on the LBS functionalities ranked most and least interesting, and featured a detailed breakdown of study participants ─ across all levels of purchase intent for each of the LBS programs examined ─ according to age, gender, ethnicity, education level and average monthly wireless spending. |