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Price determination for 4G service using price sensitivity model in India

Author

Listed:
  • Varsha Khandker

    (Indian Institute of Management Nagpur, VNIT Campus)

  • Kedar Pandurang Joshi

    (T.A. Pai Management Institute, Manipal)

Abstract

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.

Suggested Citation

  • Varsha Khandker & Kedar Pandurang Joshi, 2019. "Price determination for 4G service using price sensitivity model in India," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(2), pages 93-99, April.
    • Handle: RePEc:pal:jorapm:v:18:y:2019:i:2:d:10.1057_s41272-018-0142-4
    DOI: 10.1057/s41272-018-0142-4
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    References listed on IDEAS

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    1. Andre Gabor & C. W. J. Granger, 1961. "On the Price Consciousness of Consumers," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 10(3), pages 170-188, November.
    2. Sakhhi Chhabra, 2015. "Determining the Optimal Price Point: Using Van Westendorp’s Price Sensitivity Meter," Springer Proceedings in Business and Economics, in: S. Chatterjee & N.P. Singh & D.P. Goyal & Narain Gupta (ed.), Managing in Recovering Markets, edition 127, chapter 0, pages 257-270, Springer.
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    Cited by:

    1. Yudha Purbawa & I Gede Mahatma Yuda Bakti & Helena J. Purba & Nidya J. Astrini & Romeyn P. Putra & Sik Sumaedi, 2023. "Acceptable price of packaged palm cooking oil amid scarcity in Indonesia," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(6), pages 446-454, December.
    2. Li-Ling Liu, 2021. "Control model for cosmetic service: risk and price sensitivity," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(5), pages 580-587, October.
    3. Okan Çolak & Levent Koşan, 2021. "Price Sensitivity Measurement: A Yield Management Approach," Istanbul Business Research, Istanbul University Business School, vol. 50(1), pages 47-76, May.

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