Mobile Pricing & Bundling 2007

The Psychology and Strategy of Consumer Pricing
Led by Sarah Maxwell, Ph.D. Co-Director, Fordham Pricing Center, New York City
This workshop will present research and insights from the author’s new book, The Price is Wrong! The purpose is to show how consumers determine whether a price is acceptable and how consumers perceive and process price information. Participants will discover new pricing strategies, which can be applied to the mobile industry. The sessions will include hands-on exercises and will provide ample opportunity for discussion.

1) Morning: How Consumers Determine Price Acceptability

The current theories of consumer behavior will be discussed as they apply to pricing:

• How emotions influence price evaluations
• How consumers base evaluations on a reference price
• How biases skew consumers’ price evaluations
• How consumers make price-based decisions

2) Pricing Strategy

Alternative pricing strategies will be presented so that respondents can determine how they can be applied to Mobile pricing.

• Pricing objectives
• Price strategies
• Price bundling
• Price segmentation
• Price changes over product life cycle
• Pricing plan

3) Afternoon: Pricing Case Study

A case study will be used to apply the pricing concepts in a Mobile pricing context.

• Discussion in small groups.
• Conclusions shared with all the participants

4) Pricing Research

The basics of pricing research methods will be demonstrated, with the pros and cons of each discussed.

• Focus groups
• Direct question surveys
• Conjoint analysis

Led by: Arun Dehiri, Director, Redbox Consulting Ltd

This workshop will present a robust, transferable framework we have developed to create new pricing regimes for a wide variety of clients. Redbox will guide attendees through this interactive, step-by-step workshop, providing them with a knowledge base to be taken away and used to support future pricing plan development. We will investigate the end-to-end processes involved in developing mobile propositions establishing strategic positioning, develop pricing propositions through to implementing and measuring the impact of those deployments. We will provide a variety of innovative case studies from the marketplace including flat-rate and bundled pricing as well our best practice experience in developing propositions and prices in the mobile market.

1) Emerging Pricing Models

Voice, data, fixed mobile substitution, segmentation etc.

• A robust and comprehensive framework for future-proof pricing strategies
• Catering for different access technologies, speeds, content etc.
• Separation of delivery mode and service pricing
• Segmentation
• Innovative pricing concepts
• Evaluating tariff structures
• Developing price points

2) Establishing your Strategic Positioning

Developing a positioning map based on:

• Customer demand
• Operator capabilities/costs
• Competition

3) Evaluating and Profiting from Winning Pricing Innovations

• Simplicity
• Add ons / Bolt ons
• Community / Segmented
• Bundling
• Flat Rate
• Tenure / loyalty propositions
• Converged propositions
• Handset subsidy innovations

4) Implementing a Pricing Strategy

• Communication
• Developing a toolkit and information skills for successful pricing
• Understanding price elasticity effects

5) Summary & Conclusions

Arun Dehiri has 14 years of media and telecoms experience. Arun has had key industry roles within BSkyB, Orange and has performed several projects for major wireless players during his 4 years as a managing consultant for a major specialist global telecoms consultancy. Arun was the Head of Revenue and Pricing for Orange UK and Head of Controlling at Orange Switzerland. He has advised blue chips across Europe, Asia and USA on key topics including MVNO, pricing, proposition development, distribution and convergence. Arun is the Managing Director of Redbox Consulting Ltd, a niche, specialist telecoms and media company delivering focused research and consultancy advice. Redbox assists companies to penetrate their target markets through shaping, executing and managing product, proposition, channel and market entry strategies. Redbox has developed a ‘mobility toolkit’ with frameworks to develop and implement world class strategies, such as pricing innovations.