Main Article Content

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.

Keywords

Discrete choice experiment Willingness to pay (WTP) Conjoint analysis Mobile internet.

Article Details

Author Biographies

Arya Sohrabi, School of Industrial Engineering, Islamic Azad University, South Tehran Branch, Tehran, Iran

Ph.D. Candidate in Industrial Engineering in the Industrial Engineering Department of the South Tehran Branch of the Islamic Azad University

Mir Saman Pishvaee, School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

Dr. Mir Saman Pishvaee

Associate Professor

Department of systems and supply chain engineering

School of Industrial Engineering

Iran University of Science and Technology

Ashkan Hafezalkotob, School of Industrial Engineering, Islamic Azad University, South Tehran Branch, Tehran, Iran

Associate Professor and the Head of Department of Operational Research (Ph.D.) and the Head of Department of Logistics and Supply Chain (M.Sc.) with the College of Industrial Engineering, Islamic Azad University (South Tehran Branch), Tehran, Iran

Shahrooz Bamdad, School of Industrial Engineering, Islamic Azad University, South Tehran Branch, Tehran, Iran

Associate Professor

School of Industrial Engineering, South Tehran Branch, Islamic Azad University, Tehran, Iran

How to Cite
Sohrabi, A., Pishvaee, M. S., Hafezalkotob, A., & Bamdad, S. (2020). Analysis of consumer preferences for prepaid mobile internet packages in Iran: A Discrete Choice Experiment. Economic Journal of Emerging Markets, 12(1), 39–53. https://doi.org/10.20885/ejem.vol12.iss1.art4
No Related Submission Found