The key objective of this study was to determine customer interest in the concept and purchase of video ringtones, a service that allows callers to identify themselves by ringing friends’ phones with personalized videos of their choice. The study also analyzed price sensitivity/purchase intent at two proposed price points, and thoroughly assessed the impact of phone type and download behavior on purchase intent and perceived value.
| service: | Quantitative |
| completion date: | March 2007 |
| the approach: | Participants received an e-mail invitation to participate in the study. The survey base consisted of both flip and non-flip phone owners. Participants received a unique question set according to their phone type, and completed an online survey about only one of the two study price points. |
| the results: | This study gauged interest in video ringtones among customers with various user profiles and download behaviors. Though interest in the unpriced concept of video ringtones across users of all types of phones was high, the study demonstrated that flip-phone users had greater purchase intent for the priced concept and were generally more willing to accept a higher price point than were non-flip owners, and included an analysis of this disparity. The study revealed an overall low perceived value of video ringtones — two-thirds of the total base indicated they would not purchase the service at any price — as well as specific reasons for this disinterest that point to concrete issues that could be addressed in order to increase the service’s appeal and market it more effectively. Respondents’ input provided other valuable information about typical behavior related to likelihood to purchase, such as a direct correlation between frequency of music ringtone downloads and purchase interest of video ringtones at both proposed price points. Lastly, the survey examined the impact of various bundle offerings on purchase interest and intent. |