|
Title: |
Innovative pricing: a case of pricing for profits on the mobile internet |
| |
Author: |
Andreas Jonason, Bo Holma 
|
| |
Address: |
Department of Industrial Economics and Management, 100 44 Stockholm, Sweden. ' Department of Industrial Economics and Management, 100 44 Stockholm, Sweden |
| |
Journal: |
International Journal of Information Technology and Management 2004 - Vol. 3, No.1 pp. 105 - 115 |
| |
Abstract: |
Innovative pricing addresses the pricing challenge faced by mobile operators as a result of the transition from the second to the third generation of mobile telephony. A central issue in the success of this new technology is the charging structure towards end-users. Pricing new services too high will result in a low take-up rate of the service, whereas pricing the service too low could result in low and unsatisfactory revenues. This study presents the results of a consumer study in the UK consisting of a sample of 2000 interviews with potential end-users of third-generation services. The principal conclusion is that the previously accepted price-optimisation theory of charging per megabyte is insufficient for the introduction of wireless broadband services. This opens up a considerably broader and more complex pricing problem that requires a completely different set of theoretical tools and involves a considerable element of innovation in how the price is set. |
| |
Keywords: |
innovative pricing; price elasticity; consumer behaviour;
telecommunications; pricing; wireless broadband; mobile communications. |
| |
DOI: |
10.1504/IJITM.2004.004788 |
| |
Purchase this Paper  Comment on the Paper
|
| |
