Release Restricted © Decision Insight, Inc., 2005 Marketing Research for Strategic-Minded Businesses Decision Insight, Inc. Business Marketing Association

Release Restricted © Decision Insight, Inc.,

2005

Marketing Research for Strategic-Minded Businesses

Decision Insight, Inc.

Business Marketing Association

April 21, 2005

2005 © Decision Insight, Inc. 2

Experienced Researchers

Decision Insight is a full-service market research company specializing in the power of multimedia and 3D simulated environments.

Our visual and interactive surveys result in:

Faster turnaround times Higher cooperation rates More complex studies More in-depth and accurate responses

DI’s multimedia technique cut our cost, freed up resources and most importantly produced results that were highly correlated with sales. – Hallmark Cards, Inc.

2005 AMA EXPLOR Awards Finalist

http://www.hallmark.com/webapp/wcs/stores/servlet/HomePageView?langId=-1&storeId=10001&catalogId=10051


Customer Satisfaction

Profiling & Segmentation

Product Design & Enhancement

Pricing Research

Types of B2B Research


When To Conduct Research?

When the value of the information outweighs the cost

When you can clearly identify the objectives

When you are sure research can solve the problem

When expected results are actionable

When to say “yes”


Market Research Can Be Informative AND Fun!

Top 10 Funniest Cities Top 10 Funniest States

• Mankato, MN 1. Rhode Island• Helena, MT 2. Massachusetts• Cheyenne, WY 3. Minnesota• Providence, RI 4. Colorado• Milwaukee, WI 5. Wisconsin• Minneapolis, MN 6. Nebraska• Colorado Springs, CO 7. Illinois• Boston, MA 8. Wyoming• Madison, WI 9. Washington, D.C.• Peoria, IL 10. Michigan

Source: Shoebox Humor Survey, 2004

Select Call Study

April 2004


Study Overview

Why? T-Mobile is considering a new business’ wireless plan called Select Call and needs to understand the following:

1) Is there a need?

2) Does Select Call meet that need?

3) What is the optimum price point for the Select Call concept?

4) What are the major barriers to acceptance for the Select Call concept?


Study Overview

Select Call Concept Presentation – Screen 1

http://www.decisionvelocity.com/surveys/4866022/images/pres.html


Study Overview

Select Call Concept Presentation – Screen 2


2005

MARKET DEMAND: Is there a need?


Almost all small and medium sized businesses provide wireless phones – BUT only 5% are currently

using T-Mobile

% of Businesses That Provide Wireless Phones

90%

91%

93%

91%

0% 20% 40% 60% 80% 100%

Small (5-24)

Small (25-99)

Medium(100 - 499)

Total

Market Share Among Wireless Providers

Other10%

Sprint PCS8%

Cingular9%

AT&T Wireless

15%

Nextel26%

Verizon Wireless

27%

T-Mobile

5%


About 2/3 of businesses are actually satisfied with their current wireless plan, however, those that are

dissatisfied cite cost as the reason

Satisfaction w/Current Plan (Top 2-Box)

62%

66%

66%

64%

0% 20% 40% 60% 80% 100%

Small (5-24)

Small (25-99)

Medium(100-499)

Total

Reasons for Dissatisfaction

21%

36%

40%

40%

63%

0% 20% 40% 60% 80% 100%

Can'tRestrict

Calls

OverageCosts

PricingComplexity

VaryingCosts

TooExpensive

2005 © Decision Insight, Inc. 13Q10D: How likely would you be to consider a wireless plan that guaranteed a predictable flat rate that carried no risk of overage fees?

Very likely (5)28%

Somewhat likely (4)

39%

Neutral (3)24%

Somewhat unlikely (2)

4%

Very unlikely (1)5%

Approximately 2/3 of businesses do find flat rate billing appealing

Appeal of Flat Rate Billing


Likelihood of Switching Wireless Providers

40% 41%30%

44%

37%

36%33% 29%

33%20%

30%27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total (n=724) Small 5-24 (n=348) Small 25-99 (n=222) Medium 100-499(n=154)

Bottom-2-Box Neutral Top-2-Box

Q11: Over the next 12 months, how likely is your business to switch to a new wireless service provider?

Still, only about 1/3 of businesses are likely to switch wireless providers


2005

SELECT CALL CONCEPT: Does it meet the needs of business?

2005 © Decision Insight, Inc. 16Q15: How interested are you in the Select Call plan?

Select Call Interest (Top 2-Box)

Likelihood of Signing Up at Various Prices

36%

27%

30%

32%

35%

22%

0% 20%

40%

60%

80%

100%

Talk primarily to peopleoutside the company (n=315)

Talk primarily to people withinthe company (n=409)

Medium 100-499 (n=165)

Small 25-99 (n=244)

Small 5-24 (n=389)

Total (n=798)

18%

23%

35%

0% 20% 40% 60% 80% 100%

$30

$40

$50

Fewer than 1/3 of businesses showed interest in the Select Call plan and interest was tied to getting

a cheap rate

2005 © Decision Insight, Inc. 17Q18: Which of the following reasons, if any, describe what might keep you from switching to or signing up for the Select Call plan?

Barriers to Using Select Call

23%

27%

28%

34%

42%

50%

68%

7%

18%

0% 10% 20% 30% 40% 50% 60% 70%

Other

It doesn't offer Push to Talk "walkie-talkie" functionality

The restricted calling group size is too small

It's too expensive

It would be too much of a hassle to switch

My employees wouldn't like the restriction on personal calls

Retaining flexibility is more important to me than the money

I'm happy with my current plan

My employees need the flexibility to call whomever they need

Predictably, the lack of flexibility was the biggest barrier to using Select Call


Select Call does not meet needs of most businesses in this segment

Select Call's Ability to Meet Business Needs (Top 2-Box)

35%

35%

38%

36%

0% 20% 40% 60% 80% 100%

Small (5-24)

Small (25-99)

Medium(100-499)

Total

Reasons Doesn't Meet Business Needs

8%

10%

11%

11%

35%

0% 20% 40% 60% 80% 100%

LowFlexibility

MissedCalls

Time toManage

TooRestrictive

Don't Wantto Restrict


Key Learnings

• Market demand may be lower than initial projections

– 64% of small and medium businesses report being satisfied with their current service, only 10% are dissatisfied

– Only 27% of businesses indicate they are likely to switch wireless providers in the next year

• The Select Call concept, as it is currently designed, has significant barriers to overcome, particularly resistance to the “restricted calling” functionality

– Only 30% of respondents expressed an interest in the Select Call concept when it was presented

– Appeal was largely driven by a lower price point– 68% of those not interested did not like the calling restrictions– Only 36% felt this concept addressed a business need, of those who

didn’t feel it addressed a need – 70% cited the calling restrictions


For more info contact:

Leslie Downie816.221.0445 [email protected]

Brian Seel816.221.0445 [email protected]

Documents

Release Restricted © Decision Insight, Inc., 2005 Marketing Research for Strategic-Minded Businesses Decision Insight, Inc. Business Marketing Association