Difference between revisions of "Economical factors"
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While the market for LBS has been slow to take off, consumers continue to confirm their interest in these services. Many who have used the services find them indispensable. Industry's challenge is to provide consumers with simple and affordable services they can access without a major investment in equipment or services they may not need. Consumers want to pick the services they want and the type of device most suitable for their lyfestyle.[1]<br><br> | While the market for LBS has been slow to take off, consumers continue to confirm their interest in these services. Many who have used the services find them indispensable. Industry's challenge is to provide consumers with simple and affordable services they can access without a major investment in equipment or services they may not need. Consumers want to pick the services they want and the type of device most suitable for their lyfestyle.[1]<br><br> | ||
In August 1999, Driscoll-Wolfe Marketing & Research Consulting completed a multiclient marketing research study designed to answer questions about consumer interest and willingness to pay for location-based services. This study was funded partially by major cellular carriers, telematics equipment and services suppliers, software developers for wireless platforms, and other technology companies.<br><br> | In August 1999, Driscoll-Wolfe Marketing & Research Consulting completed a multiclient marketing research study designed to answer questions about consumer interest and willingness to pay for location-based services. This study was funded partially by major cellular carriers, telematics equipment and services suppliers, software developers for wireless platforms, and other technology companies. The research findings showed a substantially greater interest in location-based services among consumers who currently subscribe to cellular service than among nonsubscribers.<br><br> | ||
A critical issue covered in the study was consumer willingness to pay for location-based services. In the nationwide survey, respondents who were cellular subscribers were asked if they would pay a monthly fee for each of 10 location-based services. Half of the sample indicated a willingness to pay $5 per month for one or more of the services. These findings indicate that while interest in the services declines when consumers are told they must pay a fee for the service, many cellular subscribers would be willing to pay a "reasonable" monthly fee, in addition to their current cellular bill, for access to location-based services. The data also shows consumers are interested in bundled services offered at a reasonable monthly rate.<br><br> | |||
A critical issue covered in the study was consumer willingness to pay for location-based services. In the nationwide survey, respondents who were cellular subscribers were asked if they would pay a monthly fee for each of 10 location-based services. Half of the sample indicated a willingness to pay $5 per month for one or more of the services. | |||
These findings indicate that while interest in the services declines when consumers are told they must pay a fee for the service, many cellular subscribers would be willing to pay a "reasonable" monthly fee, in addition to their current cellular bill, for access to location-based services. The data also shows consumers are interested in bundled services offered at a reasonable monthly rate.<br><br> | |||
The research study also assessed whether consumers would prefer to pay for convenience services on a monthly or per-transaction basis. Most focus group participants would prefer to pay on a per-transaction basis for services such as routing assistance, mobile Yellow Pages, traffic alerts and information services. The survey confirmed consumers would pay a "reasonable" per-transaction fee for these services. [2]<br> | The research study also assessed whether consumers would prefer to pay for convenience services on a monthly or per-transaction basis. Most focus group participants would prefer to pay on a per-transaction basis for services such as routing assistance, mobile Yellow Pages, traffic alerts and information services. The survey confirmed consumers would pay a "reasonable" per-transaction fee for these services. [2]<br> | ||
Revision as of 13:32, 27 March 2006
Research questions Economical factors
1. What percentage of consumers would subscribe to location-based services, and how much are they willing to pay?
While the market for LBS has been slow to take off, consumers continue to confirm their interest in these services. Many who have used the services find them indispensable. Industry's challenge is to provide consumers with simple and affordable services they can access without a major investment in equipment or services they may not need. Consumers want to pick the services they want and the type of device most suitable for their lyfestyle.[1]
In August 1999, Driscoll-Wolfe Marketing & Research Consulting completed a multiclient marketing research study designed to answer questions about consumer interest and willingness to pay for location-based services. This study was funded partially by major cellular carriers, telematics equipment and services suppliers, software developers for wireless platforms, and other technology companies. The research findings showed a substantially greater interest in location-based services among consumers who currently subscribe to cellular service than among nonsubscribers.
A critical issue covered in the study was consumer willingness to pay for location-based services. In the nationwide survey, respondents who were cellular subscribers were asked if they would pay a monthly fee for each of 10 location-based services. Half of the sample indicated a willingness to pay $5 per month for one or more of the services. These findings indicate that while interest in the services declines when consumers are told they must pay a fee for the service, many cellular subscribers would be willing to pay a "reasonable" monthly fee, in addition to their current cellular bill, for access to location-based services. The data also shows consumers are interested in bundled services offered at a reasonable monthly rate.
The research study also assessed whether consumers would prefer to pay for convenience services on a monthly or per-transaction basis. Most focus group participants would prefer to pay on a per-transaction basis for services such as routing assistance, mobile Yellow Pages, traffic alerts and information services. The survey confirmed consumers would pay a "reasonable" per-transaction fee for these services. [2]
Amarantha:
1. Who bears the operating costs of the common infrastructure?
2. How dependent are location based service "providers" on the owners of the infrastructure in terms of pricing,usage, obligations,etc?
3. What are the preferences and interests of future users of the LBS?
4. How stable is the underlying infrastructure? Does this stability change with expansion?see this article
References:
[1] Driscoll, Clement (july 2002). What do consumers really think? (About Location-Based Services). GPS World, pg.34-37.
[2] Driscoll, Clement. Study gauges consumer interest in location-based services. RCR; 02/28/2000, Vol. 19 Issue 9, p68, 3p, 1 chart