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Web Usage-based Pricing Confuses Shoppers, U.S. Watchdog Finds | 4 Breaking News

Buyers in concentrate groups run by the U.S. Government Accountability Office had few severe concerns about usage-based pricing of wireless net plans, but had “sturdy damaging reactions” to such pricing of wireline ISPs. (CBC)

Buyers often incorrectly estimate how a lot data they consume online and pay internet providers for much more downloading and uploading than they actually do, a U.S. government watchdog stated in findings released on Tuesday.

The preliminary observations of U.S. buyers were from the Government Accountability Office’;s evaluation of the practice of usage-primarily based pricing, in which shoppers spend world wide web service providers (ISPs) for a distinct amount of data they agree to consume instead of a flat fee for unlimited information.

All 4 leading U.S. wireless carriers — Verizon, AT&T , Sprint and T-Mobile US — offer tiered pricing plans and so do seven of the best 13 wireline ISPs, even though only three stated they charged overage costs, GAO mentioned.

ISPs say usage-primarily based pricing allows customers who use much less data to pay accordingly and, in the case of wireless carriers, aids handle congested networks.

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Web Usage-based Pricing Confuses Shoppers, U.S. Watchdog Finds.

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