To: djane who wrote (3156 ) 2/26/1999 10:28:00 PM From: djane Respond to of 29987
Guest Opinion: Let's Avoid Misleading Messages [Well, G* will help service providers avoid such problems...]wirelessweek.com From the March 1, 1999 issue of Wireless Week By Roni Jackson Less than 15 years ago, few consumers had even heard of the term "cellular phone." Not two decades later, millions of consumers nationwide depend on wireless service to make business deals, schedule carpools, check movie schedules and traffic patterns, and as an important adjunct to their home and business communications systems. This tre-mendous consumer acceptance of a technology that was virtually unknown in the recent past is a testament to the outstanding success of the wireless industry's marketing efforts. However, in today's highly competitive market, wireless providers must reach significantly higher penetration levels than ever before to become and remain profitable. This challenge is made increasingly more difficult by the increased likelihood of churn in a multi-carrier environment. One of the key reasons for subscriber churn--dissatisfaction with the service provided by the "churned-from provider"--can be successfully combated by effectively managing consumers' expectations. This can be accomplished in part by the use of clear and creative advertising messages. When consumer expectations are realistic, not only is churn reduced, but so is the incidence of consumer complaints, governmental investigations and class action lawsuits. How, then, can advertising messages be tailored to effectively manage consumer expectations?Some wireless companies describe their coverage as "nationwide" to spark consumer interest. While industry insiders and certain "in the know" consumers may understand this description to mean that the service provider owns wireless licenses throughout the nation, many consumers expect that service described as "nationwide" will be seamlessly available across the United States. Accordingly, they are shocked (even angered) when they realize that little or no coverage is currently available in major cities like Chicago or Dallas, or that significant roaming charges apply when traveling in Topeka, Kan. Without intending to do so, wireless companies also can easily violate state laws prohibiting unfair, deceptive, untrue or misleading advertising in their marketing efforts. Many states have a very strict definition of "misleading." For example, an advertisement is misleading in California if it is simply likely to confuse or deceive the public. Actual confusion or deception need not be demonstrated. Similarly, in many states, advertisers are required to assume that persons in the targeted audience are unsophisticated, ignorant individuals who will take the words and concepts presented in an advertisement at face value, without stopping to analyze how the concepts might affect their personal circumstances. Given these restrictive standards, it is clear that wireless marketers face a challenge in presenting their message to the public. Practices that may be particularly susceptible to consumer confusion and an attendant legal or regulatory challenge include comparison claims (particularly, technology comparisons) and advertising low per-minute rates that only apply in certain circumstances. As the industry moves into the 21st century, it faces new challenges as it introduces consumers to an increasing variety of wireless technologies and services (including a vast new array of data services) that can further enhance their lives and businesses. If past performance is a key indicator of future performance, it is clear that the industry will successfully meet these challenges while exceeding customer expectations. Roni Jackson is a principal of Jackson Downes LLP, a San Diego-based provider of telecom consulting and legal services. Please send comments and suggestions on this Web site to jcollins@chilton.net Wireless Week, 600 S. Cherry St., #400, Denver, CO 80246 Voice: 303-393-7449, Fax: 303-399-2034 Published by Cahners Business Information © Copyright 1999. All rights reserved.