Economic Journal of Emerging Markets
Volume 12 Issue 1, 2020

Analysis of consumer preferences for prepaid mobile internet packages in Iran: A Discrete Choice Experiment

Arya Sohrabi (School of Industrial Engineering, Islamic Azad University, South Tehran Branch, Tehran, Iran)
Mir Saman Pishvaee (School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran)
Ashkan Hafezalkotob (School of Industrial Engineering, Islamic Azad University, South Tehran Branch, Tehran, Iran)
Shahrooz Bamdad (School of Industrial Engineering, Islamic Azad University, South Tehran Branch, Tehran, Iran)



Article Info

Publish Date
08 Apr 2020

Abstract

As a first discrete choice experiment in Iran emerging telecommunication market, this paper studies consumer preferences for prepaid mobile internet packages with a combined software and paper-based interview. A two-stage Bayesian D-optimal design procedure is deployed to design choice sets of mobile internet packages from four main attributes. The utility structure and customers’ willingness-to-pay for mobile internet packages are analyzed. Findings/originality: The results indicate that even with a considerable price reduction, consumers avoid prepaying for data plans with commitment periods longer than six months and high traffic volume. Traffic volume and brand attributes are recognized as the two most influential factors on consumers’ behavior. Simulating the market demonstrates the competition between mobile internet operators in Iran market. The statistics express a significant effect of consumers’ current mobile operator on their preferences for the brand attribute.

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Journal Info

Abbrev

JEP

Publisher

Subject

Economics, Econometrics & Finance

Description

The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal ...