Verizon: Expect More FiOS Rate Hikes > Key Phrase

reply to openbox9

Re: Key Phrase

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.

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.

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.

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.