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openbox9
Premium
join:2004-01-26
Germany
kudos:2
reply to rradina

Re: Key Phrase

said by rradina:

So do we need regulations? Seems like collusion.

I think collusion is too strong. As for regulation, I'm not sold on that being the answer. It can get dangerous. I'd suggest that what we need is to enable easier entry into the market by new competitors. Not risk free, but maybe subsidize some of the risk.
said by rradina:

How can both statements be true?

Simple. Even though most consumers probably won't notice a difference, VZ has done a great job at branding and marketing FiOS as a premium service worth the money...and many consumers buy into that. It's not that far fetched. A lot of consumers easily succumb to good marketing efforts for strong brands. Apple is the expert in this arena. VZ is doing pretty well itself, IMO.

rradina

join:2000-08-08
Chesterfield, MO
Again you say "most" won't notice. Then you say "many consumers" buy into their marketing.

Both cannot be true, can they? Either there is a noticeable difference that many notice (because the marketing educated folks on how to notice the tangible difference), there isn't a tangible difference but marketing convinced folks that there is or many don't notice and only the few are willing to pay the premium.

Skippy25

join:2000-09-13
Hazelwood, MO
You are missing his point and Yes both can be true.

Marketing and noticeable quality are 2 totally different things.

People will perceive for themselves that something is better if it is marketed and priced that way. I gave 2 examples above: Bose and Monster Cable. Neither are any better than the average in their industries but they charge a premium and people pay it because they "perceive" better quality because they want to, not because it is really there.

rradina

join:2000-08-08
Chesterfield, MO
Perhaps I'm arguing over nothing but the OP claimed most won't perceive a value in a premium service and then went on to say Verizon has done a great job of marketing it as a premium service and most buy into the marketing.

I guess it depends on what buying into the marketing means. If it means marketing has most believing it is a premium service and it is worth extra, then we have two mosts and both cannot be true.

openbox9
Premium
join:2004-01-26
Germany
kudos:2
reply to rradina
Stop picking nits. I think you understand my point just fine.

openbox9
Premium
join:2004-01-26
Germany
kudos:2
reply to rradina
said by rradina:

Perhaps I'm arguing over nothing but the OP claimed most won't perceive a value in a premium service and then went on to say Verizon has done a great job of marketing it as a premium service and most buy into the marketing.

I said nothing of perceived value. I said most consumers won't notice a difference in services (e.g., FiOS vs Cable vs DSL) that warrants a premium price, but that VZ has done a good job marketing FiOS such that consumers believe the service is worth a premium.

rradina

join:2000-08-08
Chesterfield, MO
reply to openbox9
Skippy25 said I missed the point and I think I still do. If most see "nothing of perceived value", VZ marketing has failed. I don't live in a Verizon FIOS area so I can only go on what you say.

openbox9
Premium
join:2004-01-26
Germany
kudos:2
You honestly don't understand that if a product is marketed well, to the point that people "just have to have it", that they'll buy it even though they'll probably notice little or no difference in performance or quality of service? VZ has marketed FiOS a lot as superior due to it being all digital, all fiber, blah, blah, blah. Take Joe Blow who now salivates at the mere mention of FiOS because he believes it's a Godsend. Joe decides to leave his current ISP providing him with 20/2 Mbps service for the 30/30 Mbps FiOS. He pays more, but he believes he's better off because he's got FiOS. Does Joe notice any actual difference in his service while watching Netflix, playing his Xbox online, and downloading iTunes...besides paying more $/mth? I doubt it. It's a placebo effect.

rradina

join:2000-08-08
Chesterfield, MO
If they have to have it and they spend more to get it, then they perceive value, right? (Refer to your statement that "most see nothing of perceived value".)

The value may be nothing more than a fashion statement but in their mind it's value. Similar, IMO, to the folks lining up outside stores this past Monday to get an iPhone 5 this coming Friday. They could buy an Android and get what the iPhone 5 offers without holding their piss all day to keep their place in line.

openbox9
Premium
join:2004-01-26
Germany
kudos:2
Even though I said nothing about perceived value, one can argue that consumers perceive value in just about anything they purchase. My point is that due to the psychological benefit of marketing FiOS as superior, Verizon likely snags several customers that won't notice a difference between FiOS and a competitor's service, even if the tangible difference in quality services is negligible. Marketing is a powerful weapon.

rradina

join:2000-08-08
Chesterfield, MO
My mistake. I misinterpreted an earlier statement "I said nothing of perceived value." You were clarifying that you did not say this and I thought otherwise.