J.D. Power and Associates Reports: Customer Satisfaction with the Wireless Retail...

J.D. Power and Associates Reports: Customer Satisfaction with the Wireless
Retail Sales Experience Decreases Due to Issues with Product Information and
Promotional Incentives
T-Mobile Ranks Highest in Wireless Retail Sales Satisfaction

WESTLAKE VILLAGE, Calif., May 8 /PRNewswire/ -- Overall customer
satisfaction with the wireless retail sales experience has steadily decreased
since 2006, driven in large part by dissatisfaction with product information
and promotional incentives, according to the J.D. Power and Associates 2008
Wireless Retail Sales Satisfaction Study(SM)-Volume 1 released today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
Now in its fifth year, the semi-annual study analyzes evaluations from
customers who recently had a wireless retail sales experience. Overall
customer satisfaction with major wireless carrier-branded stores is based on
four factors. In order of importance, they are: sales staff (51%); store
display (17%); store facility (16%); and price/promotion (16%).
The study finds that overall satisfaction with the wireless retail sales
experience has reached its lowest level since 2005, and has declined to 699
points on a 1,000-point scale in 2008 -- down 10 points from the last
reporting period (Volume 2 released in October 2007) and down 17 points since
May 2007.
"Changes in the wireless service industry, such as an increase in the
number of new products and services, have made it difficult for carriers to
maintain the same level of customer satisfaction since the inaugural study in
2004," said Kirk Parsons, senior director of wireless services at J.D. Power
and Associates. "Overall customer satisfaction with retail service has
steadily declined as wireless service becomes increasingly widespread, and as
products and services have evolved in complexity."
The study also finds that while scores have declined in all four factors
driving overall satisfaction, the most notable decreases occur in the store
display and price/promotion factors. Customers are particularly dissatisfied
with the rebates offered on phones and accessories, and with the availability
of product and service information.
"Within the past year, there have been a number of new product and service
plan innovations where, in most cases, consumers need to be re-educated in
terms of usage and price plan information," said Parsons. "The information and
materials used to explain these new services need to be readily available and
easy to understand in order for wireless carriers to meet and exceed customer
expectations. Additionally, as providers match each other on price, they are
using rebates and promotional offers to build traffic to their retail outlets.
In doing so, it's important that rebates are received quickly and without any
surprises."
T-Mobile ranks highest in customer satisfaction among major wireless
carrier-owned retail stores with a score of 716, performing particularly well
in the sales staff and store display factors. Alltel (714) and Verizon
Wireless (706), respectively, follow T-Mobile in the rankings.
The study also finds the following key retail wireless sales transaction
patterns:
-- The average wireless retail sales transaction takes approximately 56
minutes to complete from the time the customer enters the store to the
time the final paperwork is finished and the cell phone is received --
down nearly four minutes from the last reporting period.

-- Among customers who visited a retail store in the past six months,
more than 60 percent did so to purchase a new cell phone, while 65
percent upgraded or replaced an existing phone. Additionally, 11
percent of customers visited a wireless retail store to sign up for
new service for the first time, marking a 4 percent decline from six
months ago.

-- Retail satisfaction is 15 percent lower among customers who report
they were pressured during the sales process. The average overall
satisfaction rating among customers who report experiencing no sales
pressure is 721, compared with an average of just 610 among those who
say they were pressured.

Volume 1 of the 2008 Wireless Retail Sales Satisfaction Study is based on
experiences reported by 6,634 wireless customers who completed a retail sales
transaction within the past six months. The results are from the two most
recent reporting waves, which were conducted in September 2007 and January
2008. Visit JDPower.com to view customer satisfaction ratings for wireless
service and carrier performance, call quality, customer care, retail sales and
mobile phone handsets.
Overall Retail Sales Index Rankings
(Based on a 1,000-point scale)

Carrier Index J.D. Power.com Power Circle Ratings
Score For Consumers

T-Mobile 716 5
Alltel 714 5

Verizon Wireless 706 4

Industry Average 699 3
AT&T 693 3

Sprint Nextel 654 2

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement,
training and customer satisfaction. The firm's quality and satisfaction
measurements are based on responses from millions of consumers annually. For
more information on car reviews and ratings, car insurance, health insurance,
cell phone ratings, and more, please visit JDPower.com. J.D. Power and
Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global
information services provider meeting worldwide needs in the financial
services, education and business information markets through leading brands
such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power
and Associates. The Corporation has more than 280 offices in 40 countries.
Sales in 2007 were $6.8 billion. Additional information is available at
http://www.mcgraw-hill.com.
J.D. Power and Associates Media Contacts:
John Tews Karla Tucker
Troy, Mich. Troy, Mich.
(248) 312-4119 (248) 312-4344
john.tews@jdpa.com karla.tucker@jdpa.com

No advertising or other promotional use can be made of the information in
this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com/corporate
SOURCE J.D. Power and Associates

John Tews, +1-248-312-4119, john.tews@jdpa.com, or Karla Tucker,
+1-248-312-4344, karla.tucker@jdpa.com, both of J.D. Power and Associates