"Customer loyalty" was not a good description. It's more like a "gotcha", based on the following:
1. AOL is easy; finding an isp, installing the software, and learning how to navigate around the net is beyond what some people are willing to go through. This is the same set of people who don't know how to program their VCR.
2. Another set of people don't want to go through the hassle of changing their email address, setting up a new address book, notifying their correspondents, setting up a new portfolio, etc.
3. Yet another group has established relationships with other aolers in chat rooms, game rooms, bulletin boards, etc., and don't want to leave "home".
4. Then there are the family customers, who like the feeling of security against smut, and special areas reserved for kids.
5. Finally, there are a significant number of people who adhere to the "if it ain't broke, don't fix it" school.
That's what I meant by "customer loyalty", and I'd wager it accounts for a big percentage of aolers. Otherwise, they would have left already, like I did, due to too many busy signals and too high a price.
I sure love the stock,
Frank |
