Price determination for 4G service using price sensitivity model in India
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The recent launch of 4G in India initiated disruption in telecom sector with price wars. Knowing the consumers’ willingness to pay (WTP) is vital step toward the survival in such a turbulent situation. We present Van Westendorp price sensitivity model to assess the range of acceptable price as well as the optimal prices for 2 GB and 5 GB data packs to understand the consumer’s WTP for 4G data services. The price sensitivity meter identifies the acceptable range and optimal price points. The estimates obtained are similar to the current prices of the data packs in the same telecom circle which validates suitability of the price sensitivity model.
Keywords4G India Van Westendorp Telecom services Price sensitivity model
The authors acknowledge the efforts of the members of the student team at T. A. Pai Management Institute led by Ms. Apoorva Agarwal in designing the games, collecting the data, and doing the preliminary analysis for this study.
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