Stephen Connell Research & Consulting

Friday 17.11.2017

Methods / New Product Development

Case Study

An incumbent telephone operator was providing fixed line telephone, internet access and mobile phone services to consumers, and was considering entry into the digital TV market.

Research was needed to identify potential interest in and demand for a service bundle that offered three or four (“triple play” or “quad play”) previously separate services, on a single contract and monthly tariff.

There were four service options and a total of 16 possible attributes (e.g. price per month, contract term, broadband download speed, number of free text messages or mobile voice minutes per month and inclusion/absence of movies or sport in the TV option). Each of these attributes had 2-4 variants.

The only way of dealing with this variety of options is to present each respondent with a reasonable selection of choices and to use statistical techniques to model or estimate the results that would be obtained if ordinary consumers had the stamina and willingness to consider every possible combination of options. The project used a statistical technique (Discrete Choice Model) which allows respondents to compare a number of partially described bundles and to indicate their preferences.

As part of a broader interview covering current patterns of service consumption and attitudes to brands, respondents were shown up to five combinations of service attributes (e.g. 2 year contract, €20 per month, 100 mobile minutes per month, superfast broadband (8 mb/s or higher), 30 TV channels without movies or sport, etc.) and asked to say which they would be most likely to buy if it was offered in the next six months.

A very clear set of recommendations identified three key service attributes. Bundled services are now part of the product mix.

A very clear set of recommendations identified three key service attributes.