Abstract
Worldwide, more and more users of mobile communication services (MCS) are in tariffs which decouple the level of customer usage of one or several MCS (voice calls, Internet access, SMS) from the fixed monthly charge of mobile network operators (MNOs). However, consumers may inappropriately subscribe to such a flat rate because other usage-dependent price schemes are available which more closely match with their MCS use patterns. Surprisingly, little research has examined how the degree of consumer tariff misfit is correlated with socio-demographic, contract-, MCS-usage- and device-related subscriber characteristics. The present paper analyzes such associations. We develop two volume-based measures of the degree of tariff misfit in a sample of 1,274 subscribers of an MNO in Germany who had switched into a “grand flat rate” which includes unlimited national call minutes, mobile Internet traffic as well as national SMS. We find that the degree of tariff misfit is significantly higher among subscribers who are older, live in West Germany, have a longer MNO tenure, have larger monthly usage volume variations of voice calls, mobile Internet and SMS and are equipped with a device which is not an Apple iPhone. Implications of the results are discussed for MNO practitioners and for future scholarly work.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
