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Mass Customization in Wireless Communication Services: Individual Service Bundles and Tariffs

Author

Listed:
  • Chen, H.
  • Pau, L-F.

Abstract

This paper presents results on mass customization of wireless communications services and tariffs. It advocates for a user-centric view of wireless service configuration and pricing as opposed to present-day service catalog options. The focus is on design methodology and tools for such individual services and tariffs, using altogether information compression, negotiation algorithms, and risk portfolio analysis. We first analyze the user and supplier needs and aspirations. We then introduce the systematic design-oriented approach which can be applied. The implications of this approach for users and suppliers are discussed based on an end-user survey and on model-based calculations. It is shown that users can achieve desired service bundle cost reduction, while suppliers can improve significantly their risk-profit equilibrium points, reduce churn and simplify provisioning.

Suggested Citation

  • Chen, H. & Pau, L-F., 2007. "Mass Customization in Wireless Communication Services: Individual Service Bundles and Tariffs," ERIM Report Series Research in Management ERS-2007-051-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:10515
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    File URL: https://repub.eur.nl/pub/10515/ERS-2007-051-LIS.pdf
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    References listed on IDEAS

    as
    1. Grenci, Richard T. & Watts, Charles A., 2007. "Maximizing customer value via mass customized e-consumer services," Business Horizons, Elsevier, vol. 50(2), pages 123-132.
    2. Pau, L. -F., 2002. "The communications and information economy: issues, tariffs and economics research areas," Journal of Economic Dynamics and Control, Elsevier, vol. 26(9-10), pages 1651-1675, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    individual tariffs; mass customization; mobile communication services; negotiation; service configuration;
    All these keywords.

    JEL classification:

    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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