Exploring consumer adoption of new services by analyzing the behavior of 3G subscribers: An empirical case study

Abstract

As the profit margins of 3G mobile network operators gradually decline, and market competition becomes increasingly intensive, they must develop rich and diverse varieties of brand new application services to attract new subscribers and retain old ones. Understanding the customer’s purchasing behavior is a key issue in this process. The operator must accurately grasp movements in the market based on analysis of the behavior of 3G subscribers. This study proposes a comprehensive customer relationship management strategy framework to furnish a beneficial plan to overcome such challenges. First, we propose a new model to identify who are the high-value customers related to the characteristics of new telecommunication services. After segmenting the customers, we propose a procedure to provide different kinds of usage analysis, including inter-cluster analysis and intra-cluster analysis. The experimental results are determined based on rules extracted from a large number of call detail records generated by the mobile subscribers of leading 3G mobile system operators in Taiwan. The dependency network demonstrates the relationship between voice services, data communications, message services, micropayments and entertainment. Finally, we propose some marketing recommendations for 3G system operators based on these interesting rules.