Consumer's preferences for a landline and mobile : voice convergent price plan

• Autor(a) principal: Mesquita, Nuno Ricardo Pedrulho
• Data de Publicação: 2011
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/7645
• topic: Network effect; Critical mass; Social network based price plan; Bundling; Choice-based conjoint analysis; Efeito rede; Massa crítica; Planos tarifários tribais

The objective of this dissertation is to analyze consumers’ preferences for a landline and mobile voice convergent price plan within a restricted social network (composed by a landline phone and 3 mobile phones). Thus, we estimate the different willingness to pay for three types of unlimited calls and for a twelve month retention period. By following a choice-based conjoint analysis, we find that the type of communication most valued is the Mobile to Mobile and, on the other hand, Landline to Mobile is the least. As for the retention period, it is negatively evaluated by the consumers. Additionally, our segmentation analysis shows, among other conclusions, that such convergent voice price plan is most valuated by consumers with a monthly landline spending equal or greater than €11. Furthermore, we observe that the “female” segment presents the highest willingness to pay for mobile to mobile communications. Considering our conclusions, we bring forth the idea of (1) leveraging the landline to mobile communications by tying it with mobile communication and (2) advertising the product from the landline service as well as from the mobile service’s perspective. On the landline service, we suggest that a notification on the landline’s invoice is presented to customers that spend more than €6 on contacts associated to 3 mobile phones. As for the mobile service, we recommend female-targeted advertisements as they value more the unlimited mobile communications.