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AT&T Offering 'Unlimited' Plan to GoPhone Customers

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Top message:  Nice! by Jarahawk   Oct 1, 2012, 1:15 PM

Replying to:  Re: Nice! by Jellz   Oct 1, 2012, 7:54 PM

Re: Nice!

by algorithmplus    Oct 1, 2012, 9:35 PM

Jellz said:
I never understood this. If they don't want you to sell it, why do they have it on the display? Just take it off.

There is a well known marketing tactic that is in use in full force. I can't remember what the name of it is, but I'll describe it for you.

Given the choice of 3 products, a 'cheap', a 'standard', and a 'premium', most people will choose the standard product. Nobody wants to buy a cheap and inferior product, and many people don't want to feel they've overpaid for a premium product they don't need.

Now, say that you are a company and you have a product. You think people view the product as too much of a premium product because it's near the top end of the range. It's much easier to introduce more expensive products to make the current premium product a middle of the line product than it is to convince consumers in the value of it.

Now, knowing any large corporation, and even many small businesses, you will find that products or services on either the low end or high end might actually be strategically placed alternatives to 'guide you to the right product' since most consumers will choose one in the middle of the spectrum.

If you want to see a good case study on the subject, read about the Goodyear Aquatred release. Below is also a good article on it. I have worked for several large companies and I can say that after actually doing an analysis on their products and services, every single one strategically offers these choices.

http://www.scientificamerican.com/podcast/episode.cf ... »

In today's world with phones seemingly increasing in price as time goes on and the state of the economy where more people are likely to default, it wouldn't surprise me if certain prepaid plans might be more profitable since there is little risk of the subsidies going 'toxic'. The new prepaid plans are increasing in price as well and certain prepaid plans may have actually become profitable per month than post paid plans and true network choices are dwindling. In the U.S., MetroPCS is probably the most widely known company that operates solely prepaid, and although not the largest operator, is very successful with it. In Europe, many if not most companies run this way as well.

Times are changing (as they tend to do) and the companies are using your subconscious to make an extra dime as you think you are adapting to natural competitive change when you are adapting to planned change.

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