• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.3
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• pp.109-115
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• 2019

Most demand forecasting studies for telecommunication services have focused on estimating market size at the introductory stage of new products or services, or on suggesting improvement methods of forecasting models. Although such studies forecast business growth and market sizes through demand forecasting for new technologies and overall demands in markets, they have not suggested more specific information like relative market share, customers' preferences on technologies or service, and potential sales power. This study focuses on the telecommunication service industry and explores ways to calculate the relative market shares between competitors, considering competitive situations at the introductory stage of a new mobile telecommunication service provider. To reflect the competitive characteristics of the telecommunication markets, suggested is an extended conjoint analysis using service coverage and service switching rates as modification variables. This study is considered to be able to provide strategic implications to businesses offering existing service and ones planning to launch new services. The result of analysis shows that the new service provider has the greatest market share at the competitive situation where the new service covers the whole country, offers about 50% of existing service price, and allows all cellphones except a few while the existing service carrier maintains its price and service and has no response to the new service introduction. This means that the market share of the new service provider soars when it is highly competitive with fast network speed and low price.

• Journal of Korean Institute of Industrial Engineers
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• v.27 no.2
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• pp.176-180
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• 2001

In Korea, the mobile telecommunication service market is expanding rapidly and becoming more competitive. For service providers in such a dynamic environment, it is very important to accurately forecast demand including market potential in order to work out marketing strategies. In this paper, we suggest a general approach to forecast the market potential using a multinomial logit model, which is applied to individual-level market survey data. Then we develop a dynamic market potential model that can adapt to changes in the external environment without requiring further market survey. The proposed model is applied to the mobile telecommunication service market in Korea.

• Journal of Information Technology Services
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• v.7 no.1
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• pp.45-62
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• 2008

This review examines the rapid growth of qualitative and quantitative of telecommunication industry for past couple of years from customer's viewpoint. Most of the telecommunication products were positioned in the market by the businesses and government's support, but the entity of telecommunication products were never interpreted from the user's viewpoint. Even though, various kinds of telecommunication services have been actively discussed by businesses, government, and IT professionals, it has not been sufficiently discussed by the marketing academia where they need to focus a lot on customer's utility. For the purpose of providing an insight of the telecommunication service marketing strategy, this study looked over old and new directions of growth, failure and evolution of services by focusing on two main pillar of communication business, which is high-speed internet and mobile phone service. Additionally, the research explains and mentions the limit and trend of the telecommunication service marketing, and the future research task that needs to be solved.

• Korean Management Science Review
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• v.23 no.1
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• pp.115-133
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• 2006

From early 1999 years, the mobile telecommunication companies have introduced the mobile telecommunication membership program to attract more customers. However, the severe competition in the mobile telecommunication market has made the mobile telecommunication membership program to be faced with the matured mobile telecommunication market and the mobile number portability. Wain focus of this study is to find what are the core elements of service qualify of the mobile telecommunication membership program. To achieve research objective, we conceptualized the service quality of mobile telecommunication membership program. We also derived hypotheses regarding the relationships between service quality of the program, customer satisfaction, and customer loyalty and examined it by using the empirical research methodology. We suggest new marketing strategies of the mobile telecommunication membership program which can be applied to improve the corporate competitiveness.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2005.10a
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• pp.371-387
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• 2005

From early 1999 years, the Mobile Telecommunication Companies have introduced the Mobile Telecommunication Membership Program to attract more customers. However, the severe competition in the Mobile Telecommunication market has made the Mobile Telecommunication Membership Program to be faced with the matured Mobile Telecommunication market and the Mobile Number portability. Main focus of this study is to find what are the core elements of service quality of the Mobile Telecommunication Membership Program. To achieve research objective, we conceptualized the service quality of Mobile Telecommunication Membership Program. We also derived hypotheses regarding the relationships between service quality of the program, customer satisfaction, and customer loyalty and examined it by using the empirical research methodology. We suggest new marketing strategies of the Mobile Telecommunication Membership Program which can be applied to improve the corporate competitiveness.

• Journal of Information Technology Services
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• v.8 no.2
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• pp.229-245
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• 2009

The Korean mobile telecommunication service market is faced with a tremendous competitive period, in which the market is entering into the maturity stage with launching of the 3rd generation service and with introduction of mobile number portability. In general, it is more important to sustain the old customers than to attracting new customers, as the life cycle of an industry is entering the maturity stage in which the growth rate of new customers is decreasing gradually or becoming stagnant. Thus, mobile telecommunication business has to seek a way to maintain the existing customers instead of promoting new customers. So this study investigates whether the service quality of mobile telecommunication could have effects on the switching barrier of the industry. In order to test the hypothesis on the effects of service quality of mobile telecommunication in Korea on switching barrier, this study collected the questionnaire response data of students including middle and high school students and undergraduates, who are regarded as the major customers in that mobile telecommunication industry.

• Journal of Korean Institute of Industrial Engineers
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• v.13 no.2
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• pp.65-77
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• 1987

Congestion occurs whenever users interfere with each other, while competing for scarce resources. In a congested market, such as a telecommunication service market, users of telecommunication services incur costs in using the service in addition to the price. The user's own time costs involved in learning to use the service, waiting for the service, and making use of the service are typically greater than the price of telecommunication services. A market equilibrium analysis is performed in which a method for user demand aggregation is developed. The effects of price changes on user demands and market demands for congested services are examined. It is found that total market demands may increase as the price for less-congested services increase under certain demand conditions. This suggests that a nonuniform pricing scheme for a congested service may improve the utilization of the congested system. The sign of price cross-elasticity for congested services is show to vary with demand conditions. A possible complementary property of congested services is found and the implication of such a property is discussed. It is argued that such a complementary property may lead to a cross subsidy in a market with congestion. Finally, comparisons between uniform pricing and nonuniform pricing policies are made. A specific numerical example is given to show that a nonuniform pricing policy may be Pareto superior to a uniform pricing policy.

• The Journal of Society for e-Business Studies
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• v.17 no.2
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• pp.63-72
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• 2012

The Korean telecommunications market has been expanding swiftly, these days, to be saturated. In this environment, the upcoming mobile telecommunication market, where 4G service was introduced this year, is becoming more substitutive and competitive. Thus, the demand forecasting of 4G service is very difficult, while it is critical to market success. This paper adopts a multi-generation diffusion model to capture the diffusion and substitution patterns for two successive generation of technological services, i.e., 3G and 4G mobile telecommunications services. The three parameters, i.e., the coefficient of innovation, the coefficient of imitation, and the coefficient of market potential, used in the multi-generation diffusion model based on Norton and Bass[11] are obtained by inference from similar substitutive relations between older and newer telecommunication services to 3G and 4G services. The simulation results show that the Bass type multi-generation model can be successfully applied to the demand forecasting of newly introduced 4G mobile telecommunication service.

• Journal of Information Technology Services
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• v.9 no.2
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• pp.43-72
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• 2010

The Korean mobile telecommunication service market is faced with a tremendous competitive period, in which the market is entering into the maturity stage with launching of the 3rd generation service and with introduction of mobile number portability. In general, it is more important to sustain the old customers than to attracting new customers, as the life cycle of an industry is entering the maturity stage in which the growth rate of new customers is decreasing gradually or becoming stagnant. Until now, many researches had tested whether the customer satisfaction and loyalty were the core factors of sustaining customers or not. Also service quality and switching cost were given a remarkable attention for their possibility of exogenous factors, which could exercise effects to customer satisfaction and loyalty. In the same context, mobile telecommunication business has to seek a way to maintain the existing customers instead of promoting new customers. So this study investigates whether the service quality and switching barrier of mobile telecommunication could have effects on the customer satisfaction and loyalty, which are recognized as an efficient means to sustain the current customers. In order to test the hypothesis on the effects of service quality and switching barrier of mobile telecommunication to customer satisfaction and loyalty in Korean telecommunication industry, this study collected the questionnaire response data of students including middle and high school students and undergraduates, who are regarded as the major customers in that mobile telecommunication industry.

• Korean Management Science Review
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• v.19 no.2
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• pp.125-137
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• 2002

The telecommunications market is expanding rapidly and becoming more substitutive. In this environment, demand forecasting is very difficult, yet important for both practitioners and researchers. in this paper, we adopt the modeling approach proposed dy Jun and Park ［6］. The basic premise is that demand patterns result from choice behavior, where customers choose a product to maximize their utility. We apply a choice-based substitutive diffusion model to the Korean mobile telecommunication service market where digital service has completely replaced analog service. In comparison with Bass-type multigeneration models. our model provides superior fitting and forecasting performance. The choice-based model is useful in that it enables the description of such complicated environments and provides the flexibility to include marketing mix variables such as price and advertising in the regression analysis.