Snobbery Still on Speed Dial: Over half of consumers say they prioritise price when choosing their mobile contract, yet 1 in 4 are too embarrassed to take up the best deals
- New research by Lyca Mobile reveals that over half (52% ) of Vodafone, EE, Three, and O2 customers cite price as their biggest priority when signing up for a mobile contract deal
- Yet misplaced snobbery is getting in the way, with nearly a quarter (24% ) of consumers admitting they would be embarrassed to reveal they get their mobile contract from an alternative provider
New research commissioned by Lyca Mobile – the world’s largest mobile virtual network operator (MVNO) – reveals that despite over half (52% ) of customers valuing price the most when it comes to choosing their mobile contract, nearly half (47%) would still be willing to pay more for a product simply because of its brand name or badge. This is despite 9 in 10 (90% ) consumers recognising that brands play on this loyalty and overcharge, knowing people will pay more because of their brand name.
But brand loyalty isn’t paying dividends for customers
However, brands aren’t cashing loyalty cheques. As of April, many mobile network operators raised mobile contract prices by 14% in line with increasing inflation in the UK. As a result, nearly two-thirds (63% ) of surveyed consumers with Vodafone, O2, EE and Three, have experienced a price hike in the last six months.
As consumers look to save on household budgets as the cost-of-living crisis continues to bite, value for money has never been more important. The majority (72% ) of “big four” mobile network operator (MNO) contract customers would consider switching to an alternative, smaller provider, if cheaper.
Yet for some, misplaced snobbery is getting in the way, with nearly a quarter (24%) of consumers admitting they would be embarrassed to reveal they got their mobile contract from an alternative, smaller provider.
Lyca Mobile chairman, Allirajah Subaskaran, said: “As the cost-of-living crisis continues to bite, consumers mustn’t fall into the trap of prioritising a brand name or badge over value, and miss out on the best deals as a result. At a time when the majority of major players have hiked prices, there are many alternative providers who have frozen mobile bills to support struggling customers. Loyalty to the biggest companies is not paying dividends for many Brits, who risk losing out on some of the most cost-effective offers if they never look beyond the big four”.
Lyca Mobile has announced a freeze on its prices until the end of 2023, amidst industry-wide hikes.
Lyca Mobile’s latest mobile deals for new customers include:
- Saver Plan – 6GB for £1 (down from £5, for 3 months – www.LycaMobile.co.uk/en/bundle/saver-plan/)
- National Plus – 20GB for £5 (down from £10, for 6 months – www.LycaMobile.co.uk/en/bundle/national-plus/)
- UK Plan Mega Plus – 100GB for £10 (down from £20, for 6 months – www.LycaMobile.co.uk/en/bundle/uk-plan-mega-plus/)
All plans have unlimited calls and texts within the UK, 100 international minutes to selected countries (except Saver Plan), EU roaming included and 5G available at no extra cost.