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Cable Technology Feature Article

September 21, 2012

Gen Y and Pre-Boomers Happier with Home Phone Service than Gen X and Boomers

By Rory Lidstone, TMCnet Contributing Writer

According to J.D. Power and Associates' recent 2012 U.S. Residential Telephone Customer Satisfaction Study both Generation Y and Pre-Boomer customers tend to be more satisfied with their home telephone service as compared to other generational groups. The study's respondents were selected from four regions throughout the U.S. and broken down into generational groups.

The five factors examined to determine overall satisfaction, in order of importance, were: performance and reliability; cost of service; billing; offerings and promotions; and customer service.

On a 1,000-point scale, satisfaction among Pre-Boomers rated at 709, while Gen Y customers averaged 690, both groups rating satisfaction higher than the average of 682. Meanwhile, Gen X respondents averaged 667 and Baby Boomers rated their landline service at 678 overall.

The reasons for Gen Y and Pre-Boomer satisfaction are different, however, with the former group citing the ability to bundle other services like mobile phone service and high-speed Internet with landline service, while the latter cited reliability. The two groups also differ in that the majority of Pre-Boomers are unlikely to switch providers while almost a quarter of Gen Y customers are likely to shop around in pursuit of the best deal.

"Pre-Boomers tend to take an 'if it's working, why switch' approach to their telephone service, while Gen Y customers are not afraid to switch and will consider a provider offering a less expensive alternative," said Frank Perazzini, director of telecommunications at J.D. Power and Associates.

Of those willing to switch providers, 72 percent of Gen Y said they would do so for a better price, compared with 60 percent of Pre-Boomers who answered the same.

As long as Gen Y customers are able to stay with one provider, they present the greatest opportunity for growth as 41 percent of respondents in this group said they would buy additional products from their provider — the highest percentage of any of the groups.

J.D. Power and Associates also recently released its 2012 U.S. Wireless Network Quality Performance Study which found that wireless customers who use 4G LTE-enabled devices tend to experience fewer data-related issues compared to 3G and other 4G-enabled devices.

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Edited by Brooke Neuman

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