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1 – 10 of 23Young-Soo Kim, Do-Hyung Park and Se-Bum Park
People can easily track and understand their usage pattern for any content (e.g. movies, games) or service (e.g. card payment, cell phone usage) by using technologies such as the…
Abstract
Purpose
People can easily track and understand their usage pattern for any content (e.g. movies, games) or service (e.g. card payment, cell phone usage) by using technologies such as the internet and smart phones. When consumers evaluate their past consumption patterns, they may experience two different kinds of regret: content-based or monetary-based. The purpose of this paper is to propose that perceived self-control, defined as the extent to which people believe they can control their usage, plays a moderating role in the tariff-choice process (flatrate vs pay-per-use) for two types of content: vice-based and virtue-based.
Design/methodology/approach
Two laboratory experiments were designed to test the hypotheses. There were a total of 200 participants (86 for Experiment 1 and 114 for Experiment 2) who completed the entire experimental process (i.e. stimulus exposure, questionnaire reporting, dependent variable measurement, manipulation of the independent variables, and control checks).
Findings
The results of this research provide evidence supporting the role of perceived self-control in tariff preference by showing that preference varies between flat-rate and pay-per-use tariff options. Specifically, virtue-based content users were more likely to prefer the pay-per-use tariff when their perceived self-control was low vs when it was high. In contrast, vice-based content users were more likely to prefer the flat-rate tariff when their perceived self-control was low vs when it was high.
Originality/value
There are three contributions of the present research. First, the authors investigated the effect of content type on tariff preference. Second, the authors suggest that there is a moderating effect of perceived self-control on tariff preference. Third, this study revealed the factors affecting consumers’ perceived self-control.
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Philipp Leinsle, Dirk Totzek and Jan Hendrik Schumann
Promotional cues related to notions of fair prices or pricing designed to fit consumers’ needs are prevalent for many service offers. The purpose of this paper is to investigate…
Abstract
Purpose
Promotional cues related to notions of fair prices or pricing designed to fit consumers’ needs are prevalent for many service offers. The purpose of this paper is to investigate how both customers’ price fairness and idiosyncratic fit perceptions shape their tariff evaluations.
Design/methodology/approach
Two experimental studies involving different tariff types and service contexts test the complex interplay of customers’ perceived price fairness and idiosyncratic fit with customer and context characteristics on their tariff evaluations.
Findings
Customers judge tariffs drawing on both the perceived price fairness and idiosyncratic fit, driven by the perceived price level of the tariff and the perceived pricing transparency of the firm. Customers’ service usage and consumption goals moderate these effects: heavy users and hedonic consumers indicate lower price sensitivity while focusing more on their transparency perception. The role of perceived price fairness and idiosyncratic fit for tariff choice depends on the tariff/service context; idiosyncratic fit is important when it is incidental (e.g. flat rates) rather than intentional (i.e. customized tariffs) and when customers lack the expertise or confidence to evaluate price fairness such as in the case of relatively new services.
Originality/value
Prior studies focused on either price fairness or idiosyncratic fit and thus cannot fully explain the complex interplay between both in the context of tariff choice. This paper explicates the conditions that affect the relative importance of both concepts and under which incidental offers are better received than premeditated ones.
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Torsten J. Gerpott and Sebastian May
Providers of cloud computing storage services (CCSS) charge offers in several unit bundles for a lump sum per bundle. This non-linear pricing approach is known as a bucket-pricing…
Abstract
Purpose
Providers of cloud computing storage services (CCSS) charge offers in several unit bundles for a lump sum per bundle. This non-linear pricing approach is known as a bucket-pricing plan (BPP). If a customer exploits the purchased bucket, he/she can opt for the next higher bucket or refrain from further CCSS use. CCSS suppliers are faced with an optimization problem concerning the number of buckets as well as their lower and upper storage volume boundaries. The purpose of this paper is to develop a model, which supports CCSS suppliers in deriving a BPP-structure and which maximizes their profit in varying market constellations.
Design/methodology/approach
The authors develop a multi-period model of tariff choice decisions of private customers of CCSS. The model is applied in Monte Carlo simulations to determine profit-maximal tariff structures as a function of different market characteristics such as median demand saturation, demand heterogeneity, average price per storage unit and bucket ceiling allocation (identical size of each bucket within the frame set by the lower and upper overall boundary, varying sizes of the buckets offered, so that the interval between two ceilings consecutively increases for subsequent buckets) and type of a customer’s utility function.
Findings
The simulation analysis suggests that demand heterogeneity and average price per unit are the most influential factors for CCSS tariff structure optimization. Price plans with more than two buckets tend to generate higher profits than simple schemes with two buckets only if demand heterogeneity is low and the average price per storage unit is high and/or median saturation level of customers is low.
Originality/value
Despite the popularity of BPP among providers of CCSS for consumers, there is a lack of scholarly modeling work on the profit implications of the number of buckets entailed in a scheme and the size/ceilings of the various buckets on offer. The model suggested in this paper is a first step toward narrowing this research gap.
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Andreea Molnar and Cristina Hava Muntean
Multimedia content that is accessible through mobile devices has a larger size than other types of content (e.g. text, images). This may lead to higher prices for accessing the…
Abstract
Purpose
Multimedia content that is accessible through mobile devices has a larger size than other types of content (e.g. text, images). This may lead to higher prices for accessing the content via mobile devices, as mobile operators are capping mobile data billing plans in an effort to increase their revenues and prevent congestion. This poses problems for the users that are not willing/do not afford to pay the required price but still want to use multimedia content through the mobile networks. A price reduction for the user, as well as minimising bandwidth consumption can be obtained as a trade-off in multimedia quality. However, as previous research shows, not all people are willing to trade-off quality for a lower price; therefore, there is no straightforward approach to this problem. In this context, the purpose of this paper is to present a model of user willingness to pay for multimedia content quality as a function of the user risk attitude with the aim to provide personalised content depending on the user willingness to trade-off price for multimedia content quality.
Design/methodology/approach
A user model was proposed based on a literature review and an existing data set. A stereotypical approach was used where users are divided in two groups: risk averse and risk seekers. An experimental study involving six scenarios was used to validate the findings.
Findings
The results of the evaluation show that for the proposed user risk model, risk seekers preferred to pay for multimedia quality, whereas risk adverse users preferred to switch to a lower multimedia quality when monetary cost is involved. However, when the mobile data billing plan had the bandwidth limited, rather than a higher price to be paid when the bundle quantity was exceeded, the risk averse people’s preference for a lower quality still holds, but it does not show that most of the risk seekers prefer to pay for the multimedia quality.
Research limitations/implications
This paper adds to the state of the art by providing a novel way to model the user preferences for multimedia quality based on their attitude towards risk, age, and gender.
Practical implications
Mobile data users, content providers (application service providers, over-the-top providers), mobile network operators (MNOs) and internet service providers (ISPs) could benefit from the results of this research. For mobile data users, the outcome of this research could be beneficial, as they can obtain personalised content based on their needs. From the content providers’ point of view, providing personalised content can lead to more satisfied users. It could also reduce the bandwidth consumption and the traffic to the server and/or proxy. Reducing the bandwidth consumption could lead to the possibility to acquire more customers and hence increase the revenues.
Originality/value
This is among the first studies to assess how the user preference towards multimedia quality if affected by the user attitude towards risk.
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Xiaojing Zhang and Yulin Zhang
This study highlights the impact of mental accounts on a user's decision-making regarding payment schemes and aims to determine the pricing strategy for the first-enjoy-after-pay…
Abstract
Purpose
This study highlights the impact of mental accounts on a user's decision-making regarding payment schemes and aims to determine the pricing strategy for the first-enjoy-after-pay service offered by the two-sided media platforms.
Design/methodology/approach
This study establishes a game-theoretic model and utilizes backward induction to derive the equilibrium price by maximizing the monopolist's profit.
Findings
The findings indicate that the conditions for a two-sided media platform to offer the first-enjoy-after-pay service depend on the trade-off between pleasure attenuation and pain buffering and the effect of time discounts. Moreover, the authors found that the time discount is a critical factor in determining pricing strategies under various payment schemes offered by the platform.
Research limitations/implications
This work adopts a uniform pricing strategy for users who opt for either immediate or post-payment schemes. Nevertheless, it is important to note that this approach has limitations in terms of offering discriminatory pricing for those who choose both payment schemes.
Practical implications
This analytical work provides valuable insights for two-sided media platforms to optimize their payment scheme strategies and pricing considering the influence of a user's mental account.
Originality/value
In a two-sided media platform, the authors provide applicable conditions for the platform to offer first-enjoy-after-pay service considering the effect of mental accounts. Further, the authors show the optimal pricing strategy under different payment schemes provided by the platform.
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Anna Pistoni, Lucrezia Songini, Paolo Gaiardelli and Sara Pegorano
Ahmed Patel, Ali Seyfi, Yiqi Tew and Ayman Jaradat
Grid computing, cloud computing (CC), utility computing and software as a service are emerging technologies predicted to result in massive consolidation as meta‐level computing…
Abstract
Purpose
Grid computing, cloud computing (CC), utility computing and software as a service are emerging technologies predicted to result in massive consolidation as meta‐level computing services of everything beneath one umbrella in the future. The purpose of this study is to foster the understanding and differentiation, by using the three aforementioned types of computing technologies and software, as a service by both public and private libraries to meet their expectations and strategic objectives.
Design/methodology/approach
The approach in this study is a review based on comparing the four computing technologies with a brief analysis for researching and designing the mind map of a new meta‐level computing service approach, taking into consideration the need for new economic tariff and pricing models as well as service‐level agreements.
Findings
Since it is anticipated that there will be likely potential consolidation and integration of computing services, a study of these four most advanced computing technologies and their methodologies is presented through their definition, characteristics, functionalities, advantages and disadvantages. This is a well‐timed technological advancement for libraries.
Practical implications
It appears that the future of library services will become even more integrated, running over CC platforms based on usage rather than just storage of data.
Social implications
Libraries will become an open useful resource to all and sundry in a global context, and that will have huge societal benefits never imagined before.
Originality/value
Concisely addresses the strategies, functional characteristics, advantages and disadvantages by comparing these technologies from several service aspects with a view to assisting in creating the next generation outer space computing.
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Joseph P. Redden and Stephen J. Hoch
This paper aims to outline a decision process for how consumers choose among two‐part tariffs which consist of a flat fee plus a per unit charge for usage over an allowance. The…
Abstract
Purpose
This paper aims to outline a decision process for how consumers choose among two‐part tariffs which consist of a flat fee plus a per unit charge for usage over an allowance. The paper also seeks to examine what types of decision aids help consumers choose lower cost tariffs.
Design/methodology/approach
The approach used is two experimental studies.
Findings
Most consumers do not choose a tariff by calculating an expected cost because of usage uncertainty. They instead rely on simple comparisons of the overage rate, usage allowance, and flat fee attributes. These heuristics lead to systematic biases, beyond what actual true cost justifies, for favorable comparisons on these attributes. An online calculator improved choice of the lower cost option from 65 percent to 80 percent, yet this increased to 91 percent if people were also forced to consider a range of usage levels.
Practical implications
Consumers struggle to choose the lowest cost tariff, especially with uncertain usage. Consumers should realize the biases in their decision shortcuts and use the presented decision aids. Firms can leverage these biases by offering larger usage allowances (often done) and smaller overage rates (often not done), or correct them with decision aids.
Originality/value
Much work on tariffs assumes consumers calculate a cost, but the authors question this assumption, and show that consumers instead use simple attribute comparisons to deal with uncertain usage. An understanding of the specific heuristic consumers use allows the authors to better account for past effects, predict and establish new effects, and design effective decision aids. Results indicate tariff biases largely result from information processing shortcomings.
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Mark de Reuver, Tim de Koning, Harry Bouwman and Wolter Lemstra
The purpose of this paper is to explore how technological and strategic developments enable new billing processes for mobile content services.
Abstract
Purpose
The purpose of this paper is to explore how technological and strategic developments enable new billing processes for mobile content services.
Design/methodology/approach
Interviews with practitioners are used as input for designing different archetypical role division models for billing and process models. The potential of these process models to reshape the mobile industry is evaluated on three criteria: convenience for the end‐user; potential resource barriers; and the fit with strategic interests of the actors involved.
Findings
Both technological advances and the introduction of new roles and strategies in the mobile domain enable the emergence of alternative billing methods. While network operator‐centric models remain relevant in the short term, in the longer term they will co‐exist with other models in which the customer transaction is owned by the content aggregator, the content provider, the ISP or the payment provider.
Research limitations/implications
The research demonstrates the relevance of analysis at the process level in assessing the feasibility of new role division models at the value creation level.
Practical implications
The emergence of alternative billing providers is expected to change the power balance in the value network and assist in opening up the “walled garden”.
Originality/value
The analysis extends beyond existing discussions on billing in the mobile industry, which typically focus on the value network level, as the process level and the related resources are included. Moreover, the empirical data from the interviews with practitioners at various organizations provide new insights into the feasibility of these models in practice.
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Xiaojing Zhao and Wei Pan
The wide uptake of green building is hindered by factors such as limited market demand and high up-front cost despite substantial policy incentives. Successful business models…
Abstract
Purpose
The wide uptake of green building is hindered by factors such as limited market demand and high up-front cost despite substantial policy incentives. Successful business models (BMs) help facilitate the diffusion of sustainable innovation and have attracted increasing attention. However, little attention has been paid to examining the adoption of green building from the perspective of BM. This paper aims to identify the characteristics of BM that companies adopted to deliver green building projects and examine the evolution path of BM for green buildings.
Design/methodology/approach
A total of 744 interdisciplinary bibliographic records related to BM and green buildings from the Web of Science Core Collection database have been identified from the Web of Science Core Collection and analyzed through co-author analysis, co-word analysis and co-citation analysis.
Findings
BM research mainly focuses on five subjects, namely, environmental science, engineering, business, economics, science and technology. Keywords “strategy”, “capability”, “perspective” and “design” receive the highest centrality index, which suggests that the strategy design and corporate capability are indispensable elements when designing or innovating a company's BM. “BM canvas” and “resource based view” received the burst citations in the recent decade. Twelve research clusters are identified, including performance evaluation, waste management, energy efficiency, BM, project business, professional capital, leadership and product innovation. These topics highlight three evolution direction for green building projects, i.e. life cycle-oriented value proposition, collaborative value delivery and innovative cost and revenue structure.
Originality/value
The findings contribute to a systematic understanding of the underlying mechanisms of BM for green buildings and illuminate the development trend of business strategies for sustainability.
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