• Research Paper on:
    Finding Optimum Pricing Levels in Cellular Telephone Service

    Number of Pages: 12


    Summary of the research paper:

    A 12 page paper providing a proposal for research into customers’ perceptions of the value of their cellular telephone service. Competition is so very intense in the industry that the service provider able to operate at optimum pricing levels likely will gain competitive advantage over other competitors. As price pressures increase, profit margins will become even tighter than they are at present. It is in this range of operation that sound and astute management provides the greatest benefit, and where optimum pricing can provide competitive advantage. Bibliography lists 9 sources.

    Name of Research Paper File: CC6_KScellInd.rtf

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    Unformatted Sample Text from the Research Paper:
    strategic groups chart to appear correctly. Introduction The cellular service provider industry is one that is never static. It also is an  industry in which true globalization is progressing dramatically. Currently there is a battle of technologies underway, but it appears that attention to technological capabilities overshadows customers perceptions of need  and price. There is not a great deal of customer loyalty among cellular service users, particularly now that telephone numbers have become "portable" between providers. The purpose here  is to assess the state of the industry and propose research that can provide insight into customers willingness to accept higher prices. The Cellular Telephone Industry  Market penetration in the US is lower than in any other developed market in the world. In 2001, Europe led the world in "mobile penetration at  40%, followed by North America (30%)" (Wireless Users to Reach 1.1b in 2004, 2001, p. PG). Though overall market penetration in Asia was only 4 percent by the end  of 2000, that 4 percent total included 40 percent market penetration in Japan (Wireless Users to Reach 1.1b in 2004, 2001). In those regions where market penetration is highest  (i.e., Europe and Japan), competitors are likely to have interest in alliances and be operating with an eye toward globalization. Being first to market with innovations is important in  Japan but is of less concern in Europe and the US (Saran, 2002), though one study concludes that European mobile operators could be generating ?16 billion from wireless data revenues  by 2007. If they "start to introduce next-generation services in 2003, GPRS and UMTS non-voice revenue will increase dramatically" (Study predicts data revenues, 2002; p. PG). Of note 

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