Measurement of Consumer Preferences for Bucket Pricing Plans with Different Service Attributes

摘要: A bucket pricing plan charges a periodic (usually monthly) fixed price that allows consumers to use the service up set allowance. The determination of optimal plans requires knowledge about each consumer's simultaneous decision subscription, choice, and consumption, which are interrelated difficult predict. Beside prices, attributes also influence three decisions, but how they do depends on particular attribute. This article describes novel method predict consumers’ reactions with varying develops an algorithm optimize plans. Methodologically, we show failure model correctly leads non-optimal prices profits differ by 22.75% from solution. Substantially, approximately as profitable other nonlinear if at least serve segment market. Bucket therefore present attractive alternative for providers differentiate according their WTP consumption.