| Summary: | 碩士 === 銘傳大學 === 管理科學研究所 === 92 === As the cellular phone market was opened in 1997, the market is more and more competitive. The companies all provide price discount to extend their market share. However, how do their promotions affect consumers? Several studies have examined that reference prices exist and play a significant role in consumers’ choice of brand. There are also many studies that discussed the choice of Cellular Corporation but they didn’t consider the effects of reference price and price threshold. The study investigates the role of threshold to understand the effects of the companies’ price promotion. We use logit model to construct the Cellular Corporations choice model. For further understanding consumers’ price sensitivity, the study incorporates probabilistic threshold for price gains and price losses in the reference price models and models the threshold as a function of company, competitor and consumer specific factors. We collected consumers’ revealed preference (RP) data and stated preference (SP) data through field questionnaire survey.
The results indicate that consumers who think company has low price policy are less sensitive to gains and more sensitive to losses. The higher relative usage fee of competing companies makes consumers more sensitive to gains and less sensitive to losses. The variables that significantly affect the Cellular Corporations choice of consumers are communication quality, usage fee, and reference price effects. Two segments that differ in the size of their thresholds emerge. Brands with a small threshold for gain need offer only a small discount to realize significant effects on consumer choice behavior. Similarly, brands with a large threshold for losses have latitude in raising prices or high resistance.
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