Empirical Analysis of Mobile Voice and SMS Service: A Structural Model

Kim, Youngsoo; Telang, Rahul; Vogt, William B.; Krishnan, Ramayya

doi:10.2139/ssrn.1085285

Cited by 11 publications

(17 citation statements)

References 40 publications

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“…Kim et al (2010) assess user demand for competing products. Liu (2010) investigates alternative pricing strategies, whereas Musalem, Olivares, Bradlow, Terwiesch, and Corsten (2010) seek to measure the effects of out-of-stock situations.…”

Section: Models and Methodsmentioning

confidence: 99%

Paving the way for “distinguished marketing”

Leeflang

2011

International Journal of Research in Marketing

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Section: Models and Methodsmentioning

confidence: 99%

Paving the way for “distinguished marketing”

Leeflang

2011

International Journal of Research in Marketing

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“…Sophisticated wireless consumers use a combination of the available communication channels, with a decreasing share allocated to voice conversations, thus interacting less with basic consumers. Such substitution effects between voice and data services (voice versus SMS) at usage level are also identified by Kim et al (2010). As discussed in §3.2.1, in Japan, consumers prefer to use mobile e-mail over SMS, and per-packet charges are the same for e-mail usage and Web access.…”

Section: Discussion Of Resultsmentioning

confidence: 91%

“…A series of very recent papers by Grzybowski and Pereira (2008), Andersson et al (2009), andKim et al (2010) started to explore the interdependence between wireless voice and data services, but they only focus on complementarity or substitution relationship between voice and SMS services. These studies do not explore adoption, but rather the interaction between the consumption levels for the two services, conditional on consumers having adopted voice services in the past.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Therefore, it is very important for all these involved parties to understand how the adoption curves for voice and data services jointly evolve over time. Prior research (Grzybowski and Pereira 2008, Andersson et al 2009, Kim et al 2010) links the two services solely at consumption level, focusing primarily on the complementarity or substitution effects between voice and SMS communication, conditional on preexistent adoption of a voice plan. However, as mentioned above, in technologically advanced countries, wireless data services have grown far beyond just being an alternative inter-personal communication channel.…”

Section: Introductionmentioning

confidence: 99%

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Research Note—Codiffusion of Wireless Voice and Data Services: An Empirical Analysis of the Japanese Mobile Telecommunications Market

Niculescu

Whang

2012

Information Systems Research

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W ireless telecommunications have become over time a ubiquitous tool that not only sustains our increasing need for flexibility and efficiency, but also provides new ways to access and experience both utilitarian and hedonic information goods and services. This paper explores the parallel market evolution of the two main categories of wireless services-voice and data-in leading technology markets, inspecting the differences and complex interactions between the associated adoption processes. We propose a model that addresses specific individual characteristics of these two services and the stand-alone/add-on relationship between them. In particular, we acknowledge the distinction between the nonoverlapping classes of basic consumers, who only subscribe to voice plans, and sophisticated consumers, who adopt both services. We also account for the fact that, unlike voice services, data services rapidly evolved over time due to factors such as interface improvement, gradual technological advances in data transmission speed and security, and the increase in volume and diversity of the content and services ported to mobile Internet. Moreover, we consider the time gap between the market introduction of these services and allow for different corresponding consumer learning curves. We test our model on the Japanese wireless market. The empirical analysis reveals several interesting results. In addition to an expected one-way effect of voice on data adoption at the market potential level, we do find two-way codiffusion effects at the speed of adoption level. We also observe that basic consumers impact the adoption of wireless voice services in a stronger way compared to sophisticated consumers. This, in turn, leads to a decreasing average marginal network effect of voice subscribers on the adoption of wireless voice services. Furthermore, we find that the willingness of voice consumers to consider adopting data services is positively related to both time and penetration of 3G-capable handsets among voice subscribers.

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“…[]), i.e., there is no interactive utility from consuming them together, or that consumer decisions are the consequence of a single utility maximization problem (Kim et al . []). We explicitly incorporate a time lag (time separation) between the choice stage and the usage decision stage in our model, and thus a consumer must consider her expected usage of all of the services when selecting a service plan.…”

Section: Introductionmentioning

confidence: 99%

Estimating the Demand for Service Bundles under Three‐Part Tariffs

Chen

Luo

Xiao

2019

The J Industrial Economics

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Consumers may face demand uncertainty when choosing a service plan under three‐part tariffs, and preferences for multiple services may be inter‐dependent. To examine such a demand system, we construct a two‐stage discrete/continuous choice model for service bundles, allowing for interactive utility and preference correlations. Implementing a piecewise maximization approach to consumers’ non‐differentiable utility maximization problem, we estimate the model via simulated method of moments. We empirically illustrate the model using data from a Chinese wireless service provider. Our counterfactual analysis shows that the three‐part tariffs with interchangeable units show no significant loss of revenue, compared to existing tariffs.

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Empirical Analysis of Mobile Voice and SMS Service: A Structural Model

Cited by 11 publications

References 40 publications

Paving the way for “distinguished marketing”

Paving the way for “distinguished marketing”

Research Note—Codiffusion of Wireless Voice and Data Services: An Empirical Analysis of the Japanese Mobile Telecommunications Market

Estimating the Demand for Service Bundles under Three‐Part Tariffs

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