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SPOTLIGHT: Understanding Consumer Choice in Telecom

Every once in a while, we like to share what we’ve been up to, including how our research engagements have helped our clients achieve their business goals and some of the lessons learned. This study highlights W5’s role in assisting a telecommunications company in understanding how their customers make decisions and discern differences between themselves and competitors.

A regional telecommunications service provider experienced a large number of customer defections after the market entry of a national competitor. The client wanted to understand consumer perceptions of its brand relative to the competition, and apply insights gathered from consumer interviews to develop strategic product offerings.

APPROACH

To determine the product attributes and configurations of greatest value to customers, and to further establish price points for potential products, W5 constructed a choice-based quantitative conjoint study to mimic the purchase process for products in the telecommunications market.

W5 developed a customized market simulator based on current and hypothetical products. This tool enabled the client to simulate “what-if” scenarios based on current marketplace conditions, including the ability to gauge market demand and acceptance of current and future product configurations against competing product offerings.

RESULTS 

Conjoint analysis provided the ability to assess brand equity, importance of product attributes, price metrics, share of preference, and purchase likelihood, for both client and competitive product offerings. New insights guided development of several product bundles with broad appeal, helping to customer erosion and build strategy for long-term growth.

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