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Study finds quality and brand are strong factors in consumers' operator and handset
choices
Nokia Connection 2005, Helsinki, Finland - Countries in Latin America, South
East Asia, Africa, the Middle East, and Central and Eastern Europe are among the
fastest growing new markets for mobile services. New consumer research commissioned
by Nokia looks beneath the surface and explores what happens in such New Growth
Markets after mobile services take-off. The study found that brand, handset quality,
and network service quality are strong market drivers in New Growth Markets that
sometimes outweigh the cost factors that industry watchers typically expect.
Dr. Walid Moneimne, Senior Vice President, Networks, Nokia said: "The research
reveals that from early adoption, New Growth Markets take off very quickly to
become more sophisticated about their expectations about handsets and services
than some people might immediately think. Price and cost are issues but they
are influencing consumers in subtler ways next to equally powerful factors like
network reception strength, handset brand value, design, and quality. These are
among the driving forces in new national markets that are contributing to such
a rapid pace of growth that we see the world passing its three billionth mobile
user by 2010."
In the survey, over 8000 urban mobile phone users and non-users were surveyed
in Ukraine, Russia, India, Indonesia and Argentina. The research was done by
independent market researcher Synovate between September and November 2004.
Among current mobile users in these New Growth Markets, the research reveals
how local operators are building strong businesses based on high levels of customer
satisfaction, with an average of 86 percent of surveyed users satisfied with their
service. In some markets like India and Indonesia, satisfaction rates are even
higher at 90 and 91 percent, respectively. These figures have added weight because
one-third of respondents say they have used a different operator before.
The factors that are driving consumers to choose one operator over another are
not simply the availability of low priced tariff plans. The research finds that
across all the markets surveyed good reception quality is the main reason for
operator choice. When asked why they decided to subscribe to their current operator,
network reception quality was the top reason - 48 percent compared to the second
ranked factor - a low priced tariff plan - at 41 percent. In some markets like
Indonesia, reception quality was the reason for more than 70 percent of respondents.
When those who have switched operators were asked why they had done so, price
was more important for most - 44 percent - followed by reception quality at 32
percent.
The study revealed a degree of sophistication in phone usage that points to the
potential for offering more advanced services and products. Handset brand is
the main factor in phone choice among respondents. On average, 46 percent expressed
this opinion unprompted; among the 16-24 age group it is even higher at 52 percent.
In India it is 64 percent. Brand is closely followed by the phone's quality and
durability, then its cost and its design as leading choice factors.
Voice is regarded as the key application in New Growth Markets. The research
confirms its importance for existing users. Almost half of all respondents said
they expected that they will make more voice calls in the future- among Indian
consumers the finding was closer to 60 percent.
The research also reveals how data content services are beginning to take off,
with one in five of the mobile user respondents saying they have used a content
service during the last month. There are some interesting national differences,
however. For example, Russians appear to be bigger consumers of weather forecasts,
whilst Indians are sports mad with 82 percent of content users accessing sports
news; Indonesians prefer fun and games (63 percent) and Argentineans use their
mobiles for reading news headlines (58 percent).
The research confirms that the perceived cost of handsets is an important factor
for both users and non-users. For example, those who have never owned a mobile
phone were asked why they have never owned one - 49 percent said they couldn't
afford a phone compared to 30 percent who said they couldn't see a need for one.
The influence of actual cost is subtler than previously thought. The perceived
cost remains the main barrier to mobile phone ownership, however for users and
non-users alike, costs are typically perceived to be higher than what the actual
costs are.
Nokia is a world leader in mobile communications, driving the growth and sustainability
of the broader mobility industry. Nokia connects people to each other and the
information that matters to them with easy-to-use and innovative products like
mobile phones, devices and solutions for imaging, games, media and businesses.
Nokia provides equipment, solutions and services for network operators and corporations.
www.nokia.com.
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