TracFone, in partnership with Technology Goes Home, will test the effect of both discounted price and hardware cost on mobile broadband adoption and retention using four variations in its broadband service plans and one control group randomly assigned over a large, geographically diverse sample. By offering varying combinations of free or discounted hardware and $10 or $20 per month service, low-income customers’ sensitivity to upfront and ongoing prices can be measured. By comparing the two variations in offers with the control group, which is priced at market rate, TracFone will be able to estimate the take-rate for each price point with 2 GB on data limits.
Virgin Mobile, in partnership with Technology Goes Home, will test the effect on adoption and retention of discounted prices and device costs by randomly offering one of four treatment groups to a large, geographically diverse sample. Two groups of subscribers will pay $20 while another two groups of subscribers will pay $0 with a $20 activation fee. This project will provide information on customers’ relative sensitivity to upfront and ongoing costs, as well as the expected subscribership increase from a lower cost offering.
For more information contact: Elaine M. Divelbliss, 908-660-0358Published: July 10, 2013 Updated: July 23, 2013