scholarly journals Price strategies of mobile operators in Russia in the conditions of the global economic recession

2020 ◽  
Vol 11 (2) ◽  
pp. 347-370
Author(s):  
Victor Dengov ◽  
Irina Tulyakova ◽  
Elena Gregova ◽  
Gleb Sviridov

Research background: Currently, the four major mobile communications providers dominate the Russian market. The oligopolistic structure leads to negative consequences, such as a weak stimulus for the product development or technological innovation, and the lack of incentive for the call-rate reduction. In their line of work, the mobile service providers use different price strategies. To comprehend what determines the current price level and what changes one should expect therein, we have to understand which factors influence the price of the mobile services. Purpose of the article: The chief goal of this work is the analysis of the influence of the crisis on the price strategies of the providers, as well as the forecasting of the changes of prices for their services. As the main hypothesis, this work presents the assumption that during the recession the price of the mobile services in the different regions of Russia will grow. Methods: The authors built regression models for the dependence of the average price of the mobile providers’ services in a particular region from the selected factors. In this work, we selected the following types of the multiple regression equation as the modeling functions: linear, power-law, exponential. Adding the time factor (t) is the key element of the forecasting. Findings & Value added: After gathering the data and the subsequent calculation of the medium price baskets, we were able to build different multiple regression models. To build the forecasts for the dynamics of prices in the regions for the year 2018 we selected the best regression models. The analysis of the acquired forecasting results generally proved our hypothesis about the growth of the average prices for the mobile communications services, expected in 2018 in the majority of regions. The analysis itself, the programs created for its implementation, as well as the results obtained, can, in our opinion, be considered as some contribution to the development of the theory of price competition in oligopolistic markets. The mobile services’ markets in many EU countries have a similar structure, and, with this in mind, the results of forecasting price dynamics obtained from Russian experience may be of interest to scholars dealing with similar problems in their respective countries, including the possibility of conducting comparative studies.

2009 ◽  
pp. 171-180
Author(s):  
Ofir Turel ◽  
Alexander Serenko

The diffusion of mobile services is one of important technological phenomena of the twenty-first century (Dholakia & Dholakia, 2003). According to the International Telecommunication Union,1 the number of mobile service users had exceeded 1.5 billion individual subscribers by early 2005. This represents around one-quarter of the world’s population. The introduction of .mobi, a new toplevel domain,2 is expected to further facilitate the usage of mobile services. Because of their high penetration rates, mobile services have received cross-disciplinary academic attention (e.g., Ruhi & Turel, 2005; Serenko & Bontis, 2004; Turel, Serenko & Bontis, 2007; Turel, 2006; Turel & Serenko, 2006; Turel & Yuan, 2006; Turel et al., 2006). While the body of knowledge on mobile services in general is growing (Krogstie, Lyytinen, Opdahl, Pernici, Siau, & Smolander, 2004), there seems to be a gap in our understanding of a basic, yet important service that mobile service providers offer, namely mobile portals (m-portals). M-portals are wireless Web pages that help wireless users in their interactions with mobile content and services (based on the definition by Clarke & Flaherty, 2003). These are a worthy topic for investigation since, in many cases, they represent the main gate to the mobile Internet and to wireless value-added services (Serenko & Bontis, 2004). Particularly, users of premium wireless services typically employ m-portals to discover and navigate to wireless content such as news briefs, stock quotes, mobile games, and so forth. Given this, m-portals have a strong value proposition (i.e., a unique value-added that an entity offers stakeholders through its operations) for both users and service providers. These value dimensions, which drive the implementation and the use of m-portals, are explored in the subsequent sections. Despite that a number of publications solely devoted to the topic of m-portals already exist, there are very few works that not only present the concept of mobile portals, but also portray their characteristics and discuss some of the issues associated with their deployment by service providers and employment by individual users. The value proposition of mobile portals was rarely explored in depth, and some motivational factors for developing and using mobile portals still remain unclear. To fill this gap, this article explores value proposition of mobile portals from both a wireless service provider and an individual user perspective. Based on this discussion, two conceptual frameworks are suggested. The rest of this article is structured as follows. First, the key value drivers of m-portals from a wireless service provider’s viewpoint are portrayed. Second, a framework that depicts the unique attributes of mobile portals and their impact on the value users derive from these services is offered. This framework is then utilized for discussing some of the challenges mobile portal developers and service providers currently face. These obstacles need to be overcome in order for service providers and users to realize the true value of mobile portals.


Author(s):  
S. Sakthivel Rani ◽  
S. Kannan

Objective - The world is moving towards continuous and ubiquitous availability of information. Entry of private operators in 1990's, competition has caused prices to drop and calls across India are one of the cheapest in the world. Technological advances combined with forces of globalization resulted in the transformation of the economy, industries, markets and customers resulting in a connected knowledge economy, borderless global economy, globalizing, covering and consolidating industries, fragmenting and frictionless markets and active, connected, informed and demanding customers. The objective of this research is to ascertain the constructs like customer satisfaction towards the mobile phone service providers, switching barrier and the customer loyalty factors. Methodology/Technique - Respondents in the study are the customers who use mobile phones. Primary data were collected with the help of the specially designed questionnaire, which was administered to the mobile users. The final questionnaire was pre-tested on 40 respondents and the coefficient values are all above .8 thus meeting Nunnaly's recommendation of greater than 0.7 as the acceptable reliability level. The overall alpha value was 0.8 and the instrument consists of customer satisfaction regarding the mobile service providers, which includes factors like price (5 items, 0.816), network coverage (4 items, 0.795), customer service (5 items, 0.852) and usage (8 items, 0.884). Switching barriers factors consists of 28 items like credibility factors (8 items, 0.863), congruency factors (7 items, 0.816), switching cast (8 items, 0.871), and value (5 items, 0.900). Final part of the instrument includes 17 customer loyalty factors like trust (7 items, 0.858), commitment (4 items, 0.848), word of mouth (3 items, 0.779) and cooperation (3 items, 0.691). Findings - Gender, location of the customers and service providers has a significant association with level of customer satisfaction. Gender and occupation have a significant association with level of customer switching barriers. Hierarchical regression analysis was used to analyze the main effect and the adjustment effect of those switching barrier factors and the relative effect. The contribution is that this study reviews theoretically and verifies empirically the relationship and mechanism between the customer retention and the switching barrier. Type of Paper - Empirical Keywords: Customer satisfaction factors; switching barrier factors; Customer loyalty factors.


Author(s):  
Sanna Sintonen ◽  
Sanna Sundqvist

Because only a fraction of new service ideas are successful, and due to the turbulence and dynamics in mobile business markets, a thorough understanding of factors underlying mobile service adoption decisions is necessary. Use of mobile communications has been increasing extensively (Watson et al., 2002). Today, an extensive selection of mobile services is available to consumers. However, consumers use mobile devices mainly for simple services, like text messaging (Nysveen et al., 2005a). In order to better understand the acceptance of mobile services, it is necessary to study behavioral intentions (i.e. antecedents of actual adoption behavior) of consumers adopting new mobile services.


Author(s):  
Ofir Turel ◽  
Alexander Serenko

The diffusion of mobile services is one of important technological phenomena of the twenty-first century (Dholakia & Dholakia, 2003). According to the International Telecommunication Union,1 the number of mobile service users had exceeded 1.5 billion individual subscribers by early 2005. This represents around one-quarter of the world’s population. The introduction of .mobi, a new top-level domain,2 is expected to further facilitate the usage of mobile services. Because of their high penetration rates, mobile services have received cross-disciplinary academic attention (e.g., Ruhi & Turel, 2005; Serenko & Bontis, 2004; Turel, Serenko & Bontis, 2007; Turel, 2006; Turel & Serenko, 2006; Turel & Yuan, 2006; Turel et al., 2006). While the body of knowledge on mobile services in general is growing (Krogstie, Lyytinen, Opdahl, Pernici, Siau, & Smolander, 2004), there seems to be a gap in our understanding of a basic, yet important service that mobile service providers offer, namely mobile portals (m-portals).


2012 ◽  
pp. 1891-1899
Author(s):  
Amit Lingarchani

Pervasive mobile services are part of almost all business processes. These services are provided irrespective of location, time and place using devices such as mobile phones, smartphones and laptops. This boost in mobile services has also resulted in numerous environmental challenges ranging from design and manufacturing of the mobile device through to mobile service providers and corresponding network infrastructure. This chapter outlines the use of mobile services to increase customer base. In addition, it also provides a better view on opting mobile wireless services over wired services. Environmental challenges around the use of mobile services are described as part of the chapter. Finally some suggestions to reduce carbon emissions and to be energy efficient are provided. In short the chapter goes in line with sentence “Going green is no longer optional from business vantage point” (Brenner, 2008).


2017 ◽  
Vol 2 (6) ◽  
pp. 1
Author(s):  
Adan Billow Mohamed ◽  
Mr. Gerald Atheru

Purpose:  The purpose of the study was to determine the effect of corporate governance on financial performance of mobile service providers in Kenya in the case of Airtel Kenya.Methodology: The study adopted a descriptive research design where a case study was conducted. The target population comprised of all the 96 employees in the top and middle level management working with Airtel Kenya Ltd within Nairobi. The study used primary data collected using a questionnaire. The study used multiple regression analysis. The statistical software used to run the multiple regression was SPSS.Results: The study findings revealed that board members’ experience, their educational qualifications and board ethnic diversity had a positive and significant effect on the financial performance of the firm. Board size, however was found to have a negative but significant effect on the financial performance of the firm. Board gender diversity though had a positive effect on the financial performance of the firm; this effect was found to be insignificant. Financial leverage was also found to moderate the relationship between corporate governance and financial performance of the firm.Unique contribution to theory, practice and policy: Based on the responses given by the individuals in the two management levels participating in the study, it was recommended that if Airtel Kenya Ltd was to improve their financial performance which had not been impressive, they needed to place key emphasis on the characteristics of their board for efficiency and effectiveness. The management had to ensure that they limited the amount of debts of the firm.


2019 ◽  
Vol 11 ◽  
pp. 184797901986541 ◽  
Author(s):  
Sa’Ed M Salhieh

This article analyzes the rationality of customer’s behavior when switching mobile services. Customer rationality is manifested by selecting the service provider capable of delivering the highest amount of benefits to the customer. A model based on multinomial logistics regression that makes use of the rational choice theory is developed to emulate customers’ service switching behavior and predicts the probability of switching mobile services. Customer rationality is assessed by comparing the choice predicted by the model with the true choice of customers and rationality is considered as achieved when a customer chooses a service provider that maximizes his/her benefit. The model was tested and validated by modeling the behavior of customers in the Jordanian telecommunication market and a rationality assessment was conducted. The results show that mobile service customers in Jordan are making rational decisions and would be willing to switch their current service provider if offered a better service. The study encourages service providers to challenge their assessment of customer loyalty and investigate new ways to enhance customer experience and guarantee customer loyalty.


Author(s):  
R. Willis ◽  
A. Serenko ◽  
O. Turel

This article will present implications for both scholarship and practice. In terms of academia, it is believed that researchers conducting empirical investigations on customer loyalty with mobile services should be aware of the two independent dimensions of the business-customer relation-ship and utilize appropriate research instruments to ensure the unidimensionality of each construct.


Author(s):  
Amit Lingarchani

Pervasive mobile services are part of almost all business processes. These services are provided irrespective of location, time and place using devices such as mobile phones, smartphones and laptops. This boost in mobile services has also resulted in numerous environmental challenges ranging from design and manufacturing of the mobile device through to mobile service providers and corresponding network infrastructure. This chapter outlines the use of mobile services to increase customer base. In addition, it also provides a better view on opting mobile wireless services over wired services. Environmental challenges around the use of mobile services are described as part of the chapter. Finally some suggestions to reduce carbon emissions and to be energy efficient are provided. In short the chapter goes in line with sentence “Going green is no longer optional from business vantage point” (Brenner, 2008).


Author(s):  
Jarkko Vesa

“We don’t believe that a business model, where mobile operator takes a large proportion of our subscription revenue, is going to a viable long-term option.” Andy Bird, former CEO of Turner International (2003) Europe is an extremely difficult market for any type of service-related business, and an even bigger challenge for mobile service providers due to various regulatory issues, as we will discuss later on. The reason for this is that Europe is not a single market (despite the hard effort by the European Union with its directives and guidelines), but a man-made and culturally fragmented economic region. As Whalley and Curwen (2003) point out in their analysis of licence acquisition strategies in the European mobile communications industry, Europe must be defined before it can be analyzed. They define Europe as “encompassing the member states of the European Economic Free Trade Area (EFTA), the European Union (EU), those countries that have applied to join the European Union and all other sovereign countries within the post-Communist era understanding of Europe” (p. 2). Based on this definition, Whalley and Curwen found 41 countries to be included in the European mobile market. Albeit it is possible to cluster these countries to some extent according to common language (e.g., Germany, Austria, and the German-speaking part of Switzerland), culture, or some other factors (e.g., the close cooperation between the Nordic countries that include Denmark, Finland, Norway, and Sweden), the fact is that the European mobile services market easily consists of over 20 different markets. No wonder that academic research and business analyses are typically done on a country-by-country basis.


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