Virgin Mobile USA: Pricing for the Very First Time

1911 Words May 17th, 2012 8 Pages
Case Analysis: Virgin Mobile USA: Pricing for the Very First Time
April 14, 2012

History
As part of the Sprint prepaid brands, Virgin Mobile USA is a mobile phone service that offers Android-powered smartphones and pre-paid web access phone service. Virgin Mobile-branded phones are widely available in over 40,000 stores nationwide, including Target, Walmart, Best Buy and Radioshack. Virgin Mobile USA’s service is based on a non-contract basis, offering a freedom of service to their customers compared to other major-brand mobile phone service (Business Wire, 2012).
Virgin Mobile USA is the leader of no-contract mobile service since its debut in the U.S. market in 2001. Their leading promotional feature includes their Unlimited Web,
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The expectation was met through the offering of the mobile service at an affordable price range without an obligation.

Provider GAP 2
The second Provider Gap, The Service Design and Standards Gap, is finding the middle ground, or understanding, of the customers’ expectations and meeting that with service quality specifications that employees can execute (Zeithaml et al, 2009). Virgin Mobile USA had to be able to provide uninterrupted phone service and tangible items that provided recognition of their brand to customers. Their phone service should be reviewed and compared with competitors’ services to ensure relevancy of their services to potential customers.
The physical evidence includes their selection of phones and objects that represent the Virgin Mobile brand. Virgin Mobile USA would need to keep up with the available mobile technologies, including service speed and the geography of service. Contracts with appropriate phone devices that would support these technologies would maintain the brand’s presence. In addition, the offering of customer service should be promoted and provided as customer-driven service.
Solution. Virgin Mobile USA needs to evaluate their suppliers of the mobile phones to ensure these devices are both physically appealing and have the capacity for the services that would be used

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