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Alltel Research Project

This research project led by Sara Bender, Matt Creasman, and Sarah White focuses on identifying strategies to improve Alltel's market share among young adults aged 18-25 in the wireless market. It delves into understanding preferences regarding rate structures, technology, handset styles, and coverage. Key factors like switching motivations, satisfaction levels with current carriers, and the significance of features such as cameras and internet usage are examined. Additionally, the project evaluates brand marketing strategies and the relevance of celebrity endorsements to effectively engage this demographic.

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Alltel Research Project

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Presentation Transcript

  1. Alltel Research Project Team Sara(h): Sara Bender, Matt Creasman & Sarah White

  2. Definitions • Management Decision Problem = What should be done to improve Alltel’s market share in the youth/young adult (ages 18-25) wireless market? • Research Problem = To determine young adult preferences and purchase intentions for the wireless market

  3. Preferences • What is most important to you when considering a wireless carrier? • Is it rate structures, technology, handset style, or coverage areas? • What is the key driver?

  4. Handset • Does your current phone have a camera? How often do you use it? • What is important to you on your handset? What is absolutely essential? What things can you do without? • Do you use the Internet on your handset? How often? • How important is text messaging? Ring tones?

  5. Switching Costs • What would lead you to switch carriers? • Why did you choose your current carrier? Are you satisfied with your current carrier? Why or why not? • What are wireless carrier deal-breakers?

  6. Complexity • Do you understand how to read your bill (e.g., do you understand how you are billed for the time you spend on the Internet)? • Are there other things you don’t use on your handset because you either don’t understand them or are worried about being billed for them?

  7. Longevity • How many different cell phones have you had? • How may wireless carriers have you had since using a cell phone? • How often do you think you should keep a cell phone before upgrading?

  8. Marketing • Are Alltel’s current commercials relevant for the youth/young adult segment? • What kind of “celebrity” would play well with this segment? Does Alltel even need celebrities to market to this segment (see: Cingular)? • What about showing young people and using humor in commercials?

  9. Handset • If the opportunity to upgrade your handset every three months was written into your contract, would this be attractive to you? Do upgrades matter? • How important are sim. cards (e.g., devices which save phone numbers, pictures, ring tones, planners, etc.)? Would you pay extra for them?

  10. Music • Do you currently own an iPod or other mpeg player? • Are mpegs important to consider when purchasing a handset?

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