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Survey: Hands-Free Car Phone Kits Need A Bit Of Sales Encouragement

By TWICE Staff -- TWICE, 10/9/2000

WHEATON, MD. -- A report on the purchasing habits of consumers who use hands-free wireless phone kits shows that 12-17 percent buy hands-free kits at the time they purchase their phone, and a similar percentage do not buy hands-free kits immediately but come within six months of their initial phone purchase.

The findings, released in a survey of 400 retailers at a variety of boutique and mass-market distribution points by Herschel Shosteck Associates, reveals that salespeople are most motivated to sell hands-free kits to promote end-user safety, rather than to increase accessories sales.

The report, called "Stimulating the Adoption of Hands-Free Car Kits," surprisingly finds that manufacturer encouragement has a stronger effect on sales of hands-free kits than do commissions to salespeople.

Among retailer respondents who perceive makers of hands-free kits as extremely encouraging, 52 percent reported that more than 25 percent of their customers purchase kits when they buy phones. Among respondents who perceive companies as not encouraging, only 5 percent report that more than 25 percent of their customers buy kits at the same time as phones.

In releasing the findings, Shosteck said its primary purpose is to identify the steps network operators can take to stimulate greater adoption of hands-free devices by end users.

"Encouraging greater adoption of hands-free is now critical for the industry," the analyst said. "Political pressures are building to impose restrictive legislation. Our findings show how the industry can stimulate end-user adoption of hands-free devices on its own accord, free from the burden of regulatory or legislative pressures.

"Findings reveal that internal communications and educational programs by cellular carriers to emphasize the importance of selling hands-free kits will go a long way toward increasing kit sales."

The 26-page report costs $195 and is available from www.shosteck.com.

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