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Technology Stocks : America On-Line: will it survive ...?
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To: PAL who wrote (8259)2/25/1998 1:00:00 PM
From: steve lipson  Read Replies (1) of 13594
 
>>Will not be surprised if Earthlink will issue news release shortly as how many AOL members defected.<<

CompuServe did the same thing a little more than a year ago with their high-profile Super Bowl ad. We know where they are today.

If AOL was vulnerable on this front, AT&T and Microsoft would have already run it out of town.

One of AOL's underestimated strengths is the comfort consumers draw from the presence of so many others who have made the same choice. The psychic benefit of this self-reinforcing reassurance is something consumers consistently look for, drinking Budweiser, eating at McDonald's, etc. There are also some real benefits, in terms of e-mail, chat and an informal tech support network/moral support network because we all have friends, neighbors, co-workers or classmates who use AOL.

The Earthlink efforts are doomed to failure because the company is trying to tell consumers they do not need this comfort of the crowd, a message consumers will reject because they most certainly do crave that comfort. At the same time, Earthlink is further failing to to address this issue by developing an image and message telling consumers how comfortable they could be as part of their community.
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