*Jozzua Notes from a Business and Marketing Strategist/Tactician

Telcos Make Money Off You By Subtle Deception

You underestimate your text-spending:

Survey respondents estimate that they spend an average of P544 on texting every month but computations on actual spending show an average of P1,110 a month, IMS said in a statement.

Reading Jayvee's review of "Predictably Irrational", the survey is not surprising:

"When you buy a mobile phone for instance, you always compare the affordability based on a previous phone you owned, or with the relative price of similar units. More importantly though, the book talks about how consumers’ anchor price can change. We used to pay P5.00 for a sachet of Blend 45. Now we pay P100.00 for a cup of Starbucks. Ariely explains how “perceived value” raises the anchoring price of things we buy. Starbucks’ ambiance makes you feel like you’re drinking quality coffee and marketing changed “small,” “medium,” and large to “tall,” “venti” and “grande.”"

What's happening? You are being deceived. More appropriately, you allow yourself to be deceived. The "tingi" factor - buying in very small amounts over a period of time, actually ends up being more expensive!

The other thing you have to remember is that what you perceive may just be hurting you. Consider how UNLIMITED plans from SUN might not just be worth it:

I find ITMC’s data on dropped calls more convincing. They were trying to point out that, even if anyone decided to maximize SUN’s P25/day scheme, the provider’s unreliable network would prevent them from doing so:

In a recent November 2008 survey by the NTC on telco usability, SUN Cellular was reported to have the highest drop call rate of 17.05% which was alarmingly far off from… competitors Globe Telecommunications (1.99% drop call rate) and SMART Telecommunications (3.79%) were reporting. [emphasis mine]

17.05% is very high, close to 1 out 6 calls dropped. Wow, I had no idea that SUN Cellular was that unreliable.

When you think about it, however, it's a natural psychological effect.

The Bayan Wireless Land line I currently have might just be worth the the P500 a month for unlimited calls - especially since the service quality seems pretty good.

I just allowed myself to be anchored by a perceived value. Since text calls can be unreliable and it turns out that "tingi" buying is expensive, then an unlimited reliable voice call is much better! Right?

Then again, there is REAL VALUE in it anyway.

Still, what an effective marketing tactic.