Survey respondents also find the variety of high-speed alternatives indistinguishable
BOSTON - MARCH 23, 2004 The Yankee Group report, "2003 TAF Survey Findings Highlight the
Consumer Market`s Competitive Challenges," finds that U.S. consumers are
struggling to distinguish between high-speed Internet options. While
interest in high-speed services is still growing, dial-up consumers remain
highly price-sensitive. Only 17 percent of consumers say they are likely to
subscribe to broadband at $45 per month.
"Seventy-one percent of Internet customers claim they would switch to
broadband if it were available at a lower price," says Patrick Mahoney,
Yankee Group Consumer Technologies & Services analyst. "Based on these
responses, it appears DSL providers are hitting the vital price point. In
addition, tiered services continue to be attractive to consumers, with 43
percent of dial-up households more likely to subscribe to broadband if they
could choose a lower speed/lower priced package. This next generation of
adopters is less concerned with connection speed than their predecessors
and more interested in cost."
Based on results from the Yankee Group’s Technologically Advanced Family
(TAF) Survey, the report suggests that bundling will prove an effective
strategy for targeting the secondary consumer market for broadband
"Thirty-one percent of broadband households chose their high-speed
providers because of bundled discounts for multiple services. Bundling
allows providers to lower the monthly price of broadband without
sacrificing subscriber profitability because of higher revenue per customer
and lower churn," says Mahoney.
The Yankee Group’s annual TAF survey evaluates attitudes and spending
across key consumer segments. Topics include: media and entertainment
applications, devices, and content; voice/telephony services; home
computing and networking; Internet; and wireless/mobile. The survey
thoroughly examines U.S. consumer perceptions of products and services,
drivers and inhibitors of technology adoption, brand and channel
preferences and loyalty.
director of marketing
The Yankee Group (http://www.yankeegroup.com)
The Yankee Group is the global leader in communications & networking
research and consulting. The company helps businesses understand the
opportunities, risks and competitive pressures of developing, deploying and
consuming products and services that drive communication or information
exchange. Now in its fourth decade, the Yankee Group is based in Boston
with offices throughout North America and Europe.