dylan-copeland
Uploaded by
8 SLIDES
203 VIEWS
80LIKES

Price Sensitivity of Broadband Non-Adopters Tom Koutsky February 7, 2013

DESCRIPTION

This study by Tom Koutsky explores the price sensitivity of non-adopters of broadband services as of February 7, 2013. It highlights that 53% of non-adopters are not influenced by price changes, indicating that simply lowering prices may not bridge the broadband adoption gap in America. The research employs logistic models to analyze how demographic factors impact price sensitivity differently across vulnerable groups. To effectively increase broadband adoption, policy makers should complement price incentives with initiatives targeting barriers such as awareness, digital literacy, and access to hardware.

1 / 8

Download Presentation

Price Sensitivity of Broadband Non-Adopters Tom Koutsky February 7, 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Price Sensitivity of Broadband Non-Adopters Tom Koutsky February 7, 2013

  2. How much does price matter? 53% of non-adopters report not being price sensitive Price incentive strategies alone will not resolve the demand gap across America • If home broadband service was offered at a price you considered acceptable? I would not subscribe(not price sensitive) 53% I don’t know8%

  3. Price sensitive Non-adopters

  4. Barriers to Broadband Adoption

  5. Marginal Impact of Demographic Factors on Non-Adopters’ Price Sensitivity – Binary logistic MODEL = significant at 95% confidence

  6. Marginal Impact of Demographic Factorson Non-Adopters’ Price Sensitivity – EXPANDED MODEL = significant at 95% confidence

  7. observations • Price sensitivity is significantly different across various “vulnerable” demographics on the wrong side of the digital divide • Price-incentive broadband adoption programs will have different results across these demographic groups • Policy makers or marketing strategists should complement price incentive strategies with programs addressing other barriers to entry such asawareness campaigns, digital literacy training, or free/reduced hardware • If we rely on price subsidies alone, we will not close the digital divide

  8. For more INFORMATION… • Late to the Party: How New Broadband Subscribers Compare to Early Adopters, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1995130 • Let’s Make a Deal: Price Sensitivity and Willingness to Pay in the American Broadband Market, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2033415 • Connected Nation Research releases, including state-specific data reports: http://www.connectednation.org/research • Connected Nation Policy Briefs: http://www.connectednation.org/data-center-policy Tom Koutsky tkoutsky@connectednation.org (202) 674-8409

More Related