Case Study 2 – New Product Telecon Service Configuration and Pricing
Business Needs
In an effort to establish a new hosted web-based conferencing services in the global marketplace, a telecom services provider
needed information for specific decisions relating to configuring, branding, bundling and pricing the offering.
The web conferencing service was a new business model – a “pay as you go” offering where the customer uses the software on an
as needed basis, but does not have to purchase and maintain the software at his site. The new service provider would serve as
the “host” for the software, and the customer would pay a service fee for use on demand, as needed. The new telecom provider
faced several challenges in launching this offering, specifically: establishing itself versus existing providers, identifying
how best to configure and support the offering and determining a price structure and range for the offering to both generate
business and optimize profitability.
The Study
In order to address the business needs, two phases of research were conducted, an initial qualitative phase followed by a
quantitative e-mail recruit to web survey.
The First Phase -- Qualitative exploration
consisted of four focus groups in the US and 12 personal in-depth interviews in the EU among decision makers and potential
users of the new service. The qualitative learning was used both to understand and explore decision-making and drivers, as well
as to test and refine potential concept offerings, bundles and feature combinations for use in the subsequent quantitative stage
of research. Information yielded in this phase identified desirable features / attributes as well as unmet needs in existing
conferencing products.
The Second Phase – Quantitative Web Survey
utilizing an e-mail recruit from a business panel. 1000 interviews
were completed in US, UK and Germany. Qualified respondents were
business decision makers for telecom services and/or web-based conferencing.
Following an initial battery of questions relating to current web
conferencing behavior and attitudes, we gathered configuration and
pricing information. Data were gathered through a “choice
test” type of questioning where respondents compare and choose
which of several alternative scenarios they would buy. Scenarios
were constructed to reflect the various options and prices that
were being considered, as well as those available from competitors.
All scenarios were identified by a specific brand to determine the
impact brand has on choice of service.
Finally, a “probability model” was constructed to
show the differences in “relative market share” that
would result from various changes in product configuration.
The End Result
The most compelling specific service offerings options distinguishing
the new service from the competition were identified, designating
both desirable features and optimal pricing. Additionally, we were
able to identify the target market for the offering in terms of
company size and industry as well as the value propositions, messages
and positioning to be employed. |