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

Author

Listed:
  • Arya Sohrabi
  • Mir Saman Pishvaee
  • Ashkan Hafezalkotob
  • Shahrooz Bamdad

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.

Suggested Citation

  • Arya Sohrabi & Mir Saman Pishvaee & Ashkan Hafezalkotob & Shahrooz Bamdad, 2020. "Analysis of consumer preferences for prepaid mobile internet packages in Iran: A Discrete Choice Experiment," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 12(1), pages 39-53.
    • Handle: RePEc:uii:journl:v:12:y:2020:i:1:p:39-53:id:13725
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    File URL: https://journal.uii.ac.id/JEP/article/view/13725/10099
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    Cited by:

    1. Qiu, Shangzhi & Wu, Laurie & Yang, Yanjia & Zeng, Guojun, 2022. "Offering the right incentive at the right time: Leveraging customer mental accounting to promote prepaid service," Annals of Tourism Research, Elsevier, vol. 93(C).

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