Pricing and collection preferences for navigation service offers by mobile network operators: a conjoint analysis

Abstract

Navigation services based on the infrastructure of mobile network operators (MNO) are among the offerings, which many MNO consider promising in order to increase their revenue streams arising from innovative non-voice services. The present investigation attempts a closer look at pricing approach and collection procedure preferences for potential mobile navigation services (MNS) offers of MNO in a sample of 583 German-speaking consumers. It applies the conjoint analysis method to assess effects of three pricing approach and four collection procedure attribute levels on consumer preferences in the context of fictitious MNS. The results reveal that at the aggregate sample level respondents favour MNS accompanied by a flat rate scheme and which incorporate the charges for the services in the invoice which MNO send anyway to their postpaid subscribers. The findings also suggest there exists a small but probably affluent group of consumers to whom use-frequency or data-transfer volume dependent tariffs are appealing.