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No Long-Term Contract Carrier Virgin Mobile USA Sees Greater Awareness of Value Among Consumers
Thursday, November 20, 2008
New Poll Reveals That In Tight Times Consumers Kick Cars, Clothes and Concerts To the Curb Before Cutting Cell Phone Costs
WARREN, N.J., Nov. 20 /PRNewswire-FirstCall/ -- In a tough economy, Americans are more likely to cut back on entertainment, food and clothing before they change the way they use their cell phones, according to a recent Virgin Mobile USA customer poll.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070613/VIRGINMOBILE )
Economic concern has 87 percent of customers changing spending overall, as nearly half claim that they don't have enough money to cover day-to-day expenses. When asked to prioritize expenses, an overwhelming amount of those surveyed said they would cut back on leisure activities such as dining out (88 percent), entertainment (86 percent) and shopping (82 percent). The poll also found that more expensive purchases, like cars, furniture, electronics (79 percent) and vacations (71 percent) are being delayed indefinitely.
The poll indicates that cell phones have become a necessity for most rather than a luxury, with just 32 percent planning to spend less on their mobile phone service, before cutting cable/satellite costs (25 percent), and delaying payment on other bills (18 percent) and rent/mortgage (7 percent).
"People need to be able to adjust spending in a tough economy," said Bob Stohrer, Chief Marketing Officer for Virgin Mobile USA, "and the ability to be change spending levels without penalty is one of the benefits of prepaid wireless. With cell phones remaining a 'must have' for most, we expect more people will be drawn to the flexibility and value of prepaid offerings."
Despite concerns about the broader economy, and their own economic situations, 73 percent of customers feel that Virgin Mobile USA saves them money. Customers are benefiting from cost savers like Virgin Mobile USA's no long-term contract plans and programs like Sugar Mama, which allows customers to earn free air time minutes in exchange for watching ads. Currently, nearly one million of the carrier's customers utilize Sugar Mama and 66 percent polled expressed interest in the program.
About the Survey
The survey was conducted online within the United States by Vision Critical via Virgin Mobile USA customer panel of 750 adults. The results of the survey are reliable with a +/- 4 percent margin of error.
Summary of Survey Results:
-- 87 percent say they have made changes in the way they spend money
overall.
-- 47 percent say they sometimes don't have enough money to cover
day-to-day expenses.
-- 57 percent indicate they have changed the way they use their Virgin
Mobile USA phone to save money, with 35 percent of respondents using
fewer calling minutes in the past three months and 19 percent texting
more and calling less in the past few months.
-- 51 percent feel the current economic situation makes Virgin Mobile
USA's no long-term contract service more valuable.
-- 66 percent are more interested in programs like Sugar Mama, which allows
customers to earn free air time minutes in exchange for watching ads.
Almost a third of Virgin Mobile USA's customers currently use it.
-- "Customers say when money is limited, I will":
-- Eat out less: 88 percent
-- Spend less on entertainment: 86 percent
-- Spend less on clothes: 82 percent
-- Delay major purchases (cars, furniture, electronics): 79 percent
-- Cancel or spend less on vacations: 71 percent
-- Drive less: 57 percent
-- Spend less on food and groceries: 41 percent
-- Spend less on mobile phone service: 32 percent
-- Spend less on cable or satellite: 25 percent
-- Delay paying other bills: 18 percent
-- Delay paying rent or mortgage: 7 percent
About Virgin Mobile USA
Virgin Mobile USA, Inc. (NYSE: VM), through its operating company Virgin Mobile USA, L.P., offers more than five million customers control, flexibility and choice through Virgin Mobile's Plans Without Annual Contracts and postpaid offerings through Helio By Virgin Mobile, with national coverage for both powered by the Sprint PCS network.
Virgin Mobile USA is known for its award-winning customer service, with 90% of its own customers reporting satisfaction. Virgin Mobile USA allows customers to earn free minutes in exchange for viewing advertising content online through the innovative Sugar Mama program. Virgin Mobile USA's full slate of smart, stylish and affordable handsets are available at approximately 40,000 top retailers nationwide and online at http://www.virginmobileusa.com/, with Top-Up cards available at more than 140,000 locations. Helio's advanced devices like the Ocean and unlimited All-in voice plans can be explored at http://www.helio.com/.
SOURCE Virgin Mobile USA, Inc.
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