PREDICTING DEMAND OF BUNDLED TELECOMMUNICATIONS SERVICES USING DISCRETE CHOICE-BASED MODELS

Authors

Keywords
menu-based conjoint analysis, multinomial logit model, hierarchical Bayes model, bundled telecommunications services, predictive analysis

Summary
This study explores consumer choice of bundled telecommunications services and empirically investigates some new possibilities of menu-based choice models for explaining and predicting the share of preferences. It demonstrates how to use menu-based conjoint analysis, aggregate multinomial logit and hierarchical Bayes models in order to estimate part-worth utilities of attributes and price levels of digital telecommunications services for home users. A spreadsheet-based analytical simulation model for predictive analysis of the demand structure for alternative scenarios is composed based on empirical estimates of preferences. Our research purpose is to offer and demonstrate opportunities for optimal planning of product bundles that match the actual and potential customers’ expectations and willingness to pay.

JEL: Ñ11, Ñ15, Ñ16, Ñ83, Ì39
Pages: 29
Price: 3 Points

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