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

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Journal of Revenue and Pricing Management Aims and scope

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.

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Acknowledgements

The authors acknowledge the efforts of the members of the student team at T. A. Pai Management Institute led by Ms. Apoorva Agarwal in designing the games, collecting the data, and doing the preliminary analysis for this study.

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Authors and Affiliations

  1. Indian Institute of Management Nagpur, VNIT Campus, South Ambaazari Road, Nagpur, Maharashtra, 440010, India

    Varsha Khandker

  2. T.A. Pai Management Institute, Manipal, Post Box No. 9, Manipal, Karnataka, 576 104, India

    Kedar Pandurang Joshi

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  1. Varsha Khandker
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  2. Kedar Pandurang Joshi
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Correspondence to Kedar Pandurang Joshi.

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Khandker, V., Joshi, K.P. Price determination for 4G service using price sensitivity model in India. J Revenue Pricing Manag 18, 93–99 (2019). https://doi.org/10.1057/s41272-018-0142-4

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  • DOI: https://doi.org/10.1057/s41272-018-0142-4

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