How Strong Are the Effects of Technological Disruption? Smartphones' Impacts on Internet and Cable TV Services Consumption

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Abstract

Emerging technologies have created disruptions in organizational, business process and industry contexts. They act as shocks to a system. We focus on a retail telecom service provider's offerings of different bundles, including mobile phones, Internet and cable TV services. We conduct empirical regularities analysis for Singapore, which was affected by the emergence of smartphones in 2009. We assess the impacts on the service bundle choices of a provider's customers. We analyze customer switching among service bundles involving three services. We compute switching probabilities for each of the service levels offered, as well as between bundles. We use Markov chain transition analysis to describe the patterns. We find evidence for: smartphone effects on the contents of service demand; substitution between different kinds of Internet services; and migration of video consumption from cable TV to mobile services. Our results provide a basis for improved management of retail services bundling and pricing strategies.
Original languageEnglish
Title of host publicationProceedings of the 46th Annual Hawaii International Conference on System Sciences
Number of pages9
Place of PublicationLos Alamitos
PublisherIEEE
Publication date2013
ISBN (Print)9781467359337
ISBN (Electronic)9780769548920
DOIs
Publication statusPublished - 2013
Externally publishedYes
EventThe 46th Annual Hawaii International Conference on System Sciences. HICSS 2013 - Wailea, United States
Duration: 7 Jan 201310 Jan 2013
Conference number: 46

Conference

ConferenceThe 46th Annual Hawaii International Conference on System Sciences. HICSS 2013
Number46
Country/TerritoryUnited States
CityWailea
Period07/01/201310/01/2013
SponsorUniversity of Hawaii at Manoa
SeriesProceedings of the Annual Hawaii International Conference on System Sciences
ISSN1060-3425

Keywords

  • Bundling
  • Consumer choice
  • Markov chain transistion
  • Switiching
  • Telecoms
  • Service subscriptions

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