IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v27y2008i4p600-609.html
   My bibliography  Save this article

—Planning New Tariffs at tele.ring: The Application and Impact of an Integrated Segmentation, Targeting, and Positioning Tool

Author

Listed:
  • Martin Natter

    (Johann Wolfgang Goethe-University, D-60054 Frankfurt-Main, Germany)

  • Andreas Mild

    (Vienna University of Economics and Business Administration, A-1090 Vienna, Austria)

  • Udo Wagner

    (University of Vienna, A-1210 Vienna, Austria)

  • Alfred Taudes

    (Vienna University of Economics and Business Administration, A-1090 Vienna, Austria)

Abstract

Tele.ring is a mobile phone organization selling contracts and cell phones in the Austrian market. The market situation in 2005 was highly competitive and dynamic, resulting in relatively short tariff life cycles. Excessively long lead times made tele.ring's management feel dissatisfied with their new tariff development process. Furthermore, a new competitor had entered the market, posing a major threat, and it was unclear how to effectively safeguard tele.ring's position in the market. In cooperation with the management, we implemented and tested a new segmentation, targeting, and positioning tool, which provides managers with information on their target markets, customer preferences, competitors' strengths, and customer segments. It allows for the simultaneous visualization of these data on a single map and facilitates timely and accurate decision making. In particular, we report on the design and the implementation of a new pricing scheme, “Formel 10,” which became the most successful new tariff introduction in this competitive market. tele.ring's managers were very much impressed with our tool's ability to represent the market on a single map and with its capacity to allow for intuitive interpretation. In addition, the tool enhanced internal communication between its users and different stakeholders during the new tariff development process.

Suggested Citation

  • Martin Natter & Andreas Mild & Udo Wagner & Alfred Taudes, 2008. "—Planning New Tariffs at tele.ring: The Application and Impact of an Integrated Segmentation, Targeting, and Positioning Tool," Marketing Science, INFORMS, vol. 27(4), pages 600-609, 07-08.
    • Handle: RePEc:inm:ormksc:v:27:y:2008:i:4:p:600-609
    DOI: 10.1287/mksc.1070.0307
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.1070.0307
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.1070.0307?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wedel, Michel & DeSarbo, Wayne S, 1996. "An Exponential-Family Multidimensional Scaling Mixture Methodology," Journal of Business & Economic Statistics, American Statistical Association, vol. 14(4), pages 447-459, October.
    2. Nanda Kumar & Ram Rao, 2006. "Research Note—Using Basket Composition Data for Intelligent Supermarket Pricing," Marketing Science, INFORMS, vol. 25(2), pages 188-199, 03-04.
    3. Wolfgang Jank & P. K. Kannan, 2005. "Understanding Geographical Markets of Online Firms Using Spatial Models of Customer Choice," Marketing Science, INFORMS, vol. 24(4), pages 623-634, December.
    4. John D. C. Little, 2004. "Models and Managers: The Concept of a Decision Calculus," Management Science, INFORMS, vol. 50(12_supple), pages 1841-1853, December.
    5. Ganesh Iyer & David Soberman & J. Miguel Villas-Boas, 2005. "The Targeting of Advertising," Marketing Science, INFORMS, vol. 24(3), pages 461-476, May.
    6. Edward Anderson & Frank Kelly & Richard Steinberg, 2006. "A Contract and Balancing Mechanism for Sharing Capacity in a Communication Network," Management Science, INFORMS, vol. 52(1), pages 39-53, January.
    7. Wayne S. DeSarbo & Alexandru M. Degeratu & Michel Wedel & M. Kim Saxton, 2001. "The Spatial Representation of Market Information," Marketing Science, INFORMS, vol. 20(4), pages 426-441, June.
    8. J. Kruskal, 1964. "Multidimensional scaling by optimizing goodness of fit to a nonmetric hypothesis," Psychometrika, Springer;The Psychometric Society, vol. 29(1), pages 1-27, March.
    9. Wayne DeSarbo & Vithala Rao, 1984. "GENFOLD2: A set of models and algorithms for the general UnFOLDing analysis of preference/dominance data," Journal of Classification, Springer;The Classification Society, vol. 1(1), pages 147-186, December.
    10. Dan Horsky & Sanjog Misra & Paul Nelson, 2006. "Observed and Unobserved Preference Heterogeneity in Brand-Choice Models," Marketing Science, INFORMS, vol. 25(4), pages 322-335, 07-08.
    11. David Klahr, 1969. "A monte carlo investigation of the statistical significance of Kruskal's nonmetric scaling procedure," Psychometrika, Springer;The Psychometric Society, vol. 34(3), pages 319-330, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wayne DeSarbo & Joonwook Park & Vithala Rao, 2011. "Deriving joint space positioning maps from consumer preference ratings," Marketing Letters, Springer, vol. 22(1), pages 1-14, March.
    2. Gensler, Sonja & Hinz, Oliver & Skiera, Bernd & Theysohn, Sven, 2012. "Willingness-to-pay estimation with choice-based conjoint analysis: Addressing extreme response behavior with individually adapted designs," European Journal of Operational Research, Elsevier, vol. 219(2), pages 368-378.
    3. Faure, Corinne & Natter, Martin, 2010. "New metrics for evaluating preference maps," International Journal of Research in Marketing, Elsevier, vol. 27(3), pages 261-270.
    4. Dimitrios K. Nasiopoulos & Dimitrios M. Mastrakoulis & Dimitrios A. Arvanitidis, 2022. "The Contribution of Digital Technology to the Forecasting of Supply Chain Development, in IT Products, Modeling and Simulation of the Problem," Forecasting, MDPI, vol. 4(4), pages 1-19, November.
    5. Aimé, Isabelle & Berger-Remy, Fabienne & Laporte, Marie-Eve, 2022. "The brand, the persona and the algorithm: How datafication is reconfiguring marketing work☆," Journal of Business Research, Elsevier, vol. 145(C), pages 814-827.
    6. Charles E. Gengler & Michael S. Mulvey, 2017. "Planning pre-launch positioning: Segmentation via willingness-to-pay and means-end brand differentiators," Journal of Brand Management, Palgrave Macmillan, vol. 24(3), pages 230-249, May.
    7. Germann, Frank & Lilien, Gary L. & Rangaswamy, Arvind, 2013. "Performance implications of deploying marketing analytics," International Journal of Research in Marketing, Elsevier, vol. 30(2), pages 114-128.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joonwook Park & Priyali Rajagopal & Wayne DeSarbo, 2012. "A New Heterogeneous Multidimensional Unfolding Procedure," Psychometrika, Springer;The Psychometric Society, vol. 77(2), pages 263-287, April.
    2. Roger Shepard, 1974. "Representation of structure in similarity data: Problems and prospects," Psychometrika, Springer;The Psychometric Society, vol. 39(4), pages 373-421, December.
    3. Douglas Clarkson & Richard Gonzalez, 2001. "Random effects diagonal metric multidimensional scaling models," Psychometrika, Springer;The Psychometric Society, vol. 66(1), pages 25-43, March.
    4. DeSarbo, Wayne S. & Selin Atalay, A. & Blanchard, Simon J., 2009. "A three-way clusterwise multidimensional unfolding procedure for the spatial representation of context dependent preferences," Computational Statistics & Data Analysis, Elsevier, vol. 53(8), pages 3217-3230, June.
    5. Avi Goldfarb & Catherine Tucker, 2007. "Search Engine Advertising: Pricing Ads to Context," Working Papers 07-23, NET Institute, revised Sep 2007.
    6. Kopalle, Praveen & Biswas, Dipayan & Chintagunta, Pradeep K. & Fan, Jia & Pauwels, Koen & Ratchford, Brian T. & Sills, James A., 2009. "Retailer Pricing and Competitive Effects," Journal of Retailing, Elsevier, vol. 85(1), pages 56-70.
    7. U. Umesh & Sanjay Mishra, 1990. "A Monte Carlo investigation of conjoint analysis index-of-fit: Goodness of fit, significance and power," Psychometrika, Springer;The Psychometric Society, vol. 55(1), pages 33-44, March.
    8. Junghyun Park & Minki Kim & Pradeep K Chintagunta, 2022. "Mapping Consumers’ Context-Dependent Consumption Preferences: A Multidimensional Unfolding Approach [An Empirical Comparison of Logit Choice Models with Discrete versus Continuous Representations o," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 49(2), pages 202-228.
    9. Thomas Reynolds & Kenneth Sutrick, 1986. "Assessing the correspondence of one or more vectors to a symmetric matrix using ordinal regression," Psychometrika, Springer;The Psychometric Society, vol. 51(1), pages 101-112, March.
    10. Wayne DeSarbo & Robert Madrigal, 2012. "Exploring the Demand Aspects of Sports Consumption and Fan Avidity," Interfaces, INFORMS, vol. 42(2), pages 199-212, April.
    11. Frank Busing & Mark Rooij, 2009. "Unfolding Incomplete Data: Guidelines for Unfolding Row-Conditional Rank Order Data with Random Missings," Journal of Classification, Springer;The Classification Society, vol. 26(3), pages 329-360, December.
    12. Giovanna Boccuzzo & Licia Maron, 2017. "Proposal of a composite indicator of job quality based on a measure of weighted distances," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(5), pages 2357-2374, September.
    13. Shaheer, Noman Ahmed & Li, Sali, 2020. "The CAGE around cyberspace? How digital innovations internationalize in a virtual world," Journal of Business Venturing, Elsevier, vol. 35(1).
    14. Rademaker, Claudia A., 2011. "Hinders for Eco-friendly Media Selection," SSE/EFI Working Paper Series in Business Administration 2011:7, Stockholm School of Economics, revised 16 Nov 2011.
    15. Alexandre de Corniere, 2013. "Search Advertising," Economics Series Working Papers 649, University of Oxford, Department of Economics.
    16. Jong-Seok Lee & Dan Zhu, 2012. "Shilling Attack Detection---A New Approach for a Trustworthy Recommender System," INFORMS Journal on Computing, INFORMS, vol. 24(1), pages 117-131, February.
    17. Jentzsch, Nicola & Sapi, Geza & Suleymanova, Irina, 2013. "Targeted pricing and customer data sharing among rivals," International Journal of Industrial Organization, Elsevier, vol. 31(2), pages 131-144.
    18. Beltran-Royo, C. & Zhang, H. & Blanco, L.A. & Almagro, J., 2013. "Multistage multiproduct advertising budgeting," European Journal of Operational Research, Elsevier, vol. 225(1), pages 179-188.
    19. Cai, Ya-Jun & Lo, Chris K.Y., 2020. "Omni-channel management in the new retailing era: A systematic review and future research agenda," International Journal of Production Economics, Elsevier, vol. 229(C).
    20. Ján Kulfan & Lenka Sarvašová & Michal Parák & Marek Dzurenko & Peter Zach, 2018. "Can late flushing trees avoid attack by moth larvae in temperate forests?," Plant Protection Science, Czech Academy of Agricultural Sciences, vol. 54(4), pages 272-283.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:27:y:2008:i:4:p:600-609. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.