Model of customer buying behavior in the CZ mobile telecommunication market

Abstract

The Czech mobile telecommunication market constitutes an oligopoly of three operators, who have built a privileged position and effectively crush any competition. The entry of a new operator has been considered by the government since the end of 2009. The new mobile operator should push down the prices of services, which are the highest in Europe and also affect the development of new mobile services. This paper analyzes consumer behavior in the mobile telecommunication market. It reveals how different elements are considered by customers and what is important when choosing a mobile tariff. With use conjoint analysis, we obtained empirical arguments about the preferences of customers in the Czech Republic. The analysis shows that the relatively high price of services greatly reduces the unsaturated demand in the mobile telecommunication market, and proves that the price is crucial in customer decision-making.