Abstract
The Czech mobile telecommunication market constitutes an oligopoly of three operators, who have built a privileged position and effectively crush any competition. The entry of a new operator has been considered by the government since the end of 2009. The new mobile operator should push down the prices of services, which are the highest in Europe and also affect the development of new mobile services. This paper analyzes consumer behavior in the mobile telecommunication market. It reveals how different elements are considered by customers and what is important when choosing a mobile tariff. With use conjoint analysis, we obtained empirical arguments about the preferences of customersin the Czech Republic. The analysis shows that the relatively high price of services greatly reduces the unsaturated demand in the mobile telecommunication market, and proves that the price is crucial in customer decision-making.
Highlights
In present-day market research, the most popular methods for modeling customer buying behavior are discrete-choice methods which include Choice-Based Conjoint (CBC) [6]. These methods are favored mainly for their ability to mimic a real purchasing decision by a discrete choice better than traditional conjoint methods based on ranking or rating a set of product concepts, where customer preferences are usually expressed as rank orders respectively as values on quantitative scales
We provide a preference model based on empirical customer choice data which confirms that conjoint analysis is very helpful tool to quantify the potential effects of specific aspects of operator tariffs
The market analysis in this study consists of a counting analysis, a part-worth analysis, a choice simulation model and a price sensitivity model
Summary
In present-day market research, the most popular methods for modeling customer buying behavior are discrete-choice methods which include Choice-Based Conjoint (CBC) [6]. These methods are favored mainly for their ability to mimic a real purchasing decision by a discrete choice better than traditional conjoint methods based on ranking or rating a set of product concepts, where customer preferences are usually expressed as rank orders respectively as values on quantitative scales. The advantage of the choice is that this kind of decision is intuitive for everyone, but several pieces of information concerning the preferential orders of product concepts in the set are not recorded. Approaches for designing more effective discrete choice questionnaires are still concern for market researchers
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