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Study On The Pricing Models Of Mobile Services Based On Consumer Value

Posted on:2013-01-06Degree:DoctorType:Dissertation
Country:ChinaCandidate:X L ZhongFull Text:PDF
GTID:1119330371480644Subject:Management Science and Engineering
Abstract/Summary:
The development of mobile commerce has broken down the structure of the operator-led value chain, along with the development of mobile Internet, the types of mobile services has become increasingly diversifie. The pricing decision of mobile services becomes more and more significant for mobile service providers. Hence, it is valuable to investigate on mobile service pricing models based on characteristics of mobile service industry, one hand, for service providers to expand the market better; the other hand, for consumers to make purchasing decision wisely.The main purpose of pricing decision is to attract consumers'willingness to buy and to improve service providers' profit. Pricing model for mobile services includes various factors, this paper employ the consumer utility as a main analytical tool, aiming to explore the following questions:1) which factors influence the consumers'value perception of mobile services; 2) how to combine these factors and mobile service pricing models to derive more comprehensive models also considering the various market competition landscape and differentiation of services;3) under different level of consumer and market conditions, the two-stage dynamic pricing model for the profit of the ISP.Aiming to the above problem, the main work and contribution of this paper focused on the following aspects:First, based on an empirical survey of 650 consumers, and analysis of 519 valid questionnaires, the perceived value of mobile services is divided into the direct and indirect source of value. The attributes of mobile services suach as ubiquity, entertainment, network externalities directly influence the consumer's perceived value; in addition, other four value-added characteristics of mobile services, i.e., informativeness, personalization, quality of content and compatibility, indirectly affect perceived value through usefulness and ease of use. This study provides a more detailed model of the influence between the perceived value of mobile Internet and its attributes including the unique and basic attributes, and the distinguishing job comtributes to explan binary-value structure of mobile services.Second, a binary-value of utility model is proposed to discuss consumer purchasing behavior and consumer demands. Under a game of three service providers with different advantages in the market, the numerical simulation analysis is provided. It is evidnced that even under the different service advantages; service providers may influence the utility of consumer through the marketing strategy, further impact consumers'purchase intention.Third, the network extranality and differentiation of service quality are introduced to modeling of consumers' utility analysis. The impact of network externalities on market share and profit of service providers and the relationship between service quality and network externalities, as well as the quality of service differences on social welfare are analysed. The results show that:while the firms' pricing strategy based on the quality level, the lower quality service will generate higher performance price ratio, and will be a competitive advantage in the market. Compared with high-quality service, providers who should adopt other marketing strategies to obtain high network externalities, in order to gain market share.Finally, two typical two-stage dynamic pricing model for mobile services-price discrimination and bundling are proposed. First, the influence of a two-stage pricing by service providers on consumer utility is discussed. Given the critical point of the four categories of consumer purchasing behavior, the influence of proportion of high-value consumers and "strategy type" high-value consumers on the optimal price, market share and profit are analysed through the simulation. Secondly, a two-stage dynamic pricing model with mobile services bundling strategy is proposed. In this context, the influenceof mobile service provider's two-stage dynamic pricing strategies on consumer utility and profit are discussed. Given two cases, as the market completely monopoly and oligopoly, under the use of bundled pricing, the influence of attributes of two services on the market share and profits of service providers are simulated.
Keywords/Search Tags:Mobile Services, Perceived Value, Consumer Utility, Network Externalities, Bundled Pricing
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