• Title/Summary/Keyword: Service pricing

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Optimal Packet Price for Differentiated Internet Services

  • Lee, Hoon
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.34 no.11B
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    • pp.1191-1199
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    • 2009
  • As the Internet service evolves from the best effort data service to a multimedia service such as a mix of voice, data and video, a need for the guarantee of the quality of service to network services became one of the hot issues for the network operators. On the other hand, the introduction of the multimedia services over the IP network requires a managed differentiated service that adopts a prioritized treatment of packets. This incurs a need for a differentiated pricing scheme for the packets that receive different level of quality of service. This work proposes an analytic framework about packet pricing scheme for these services, and investigate the effect of service differentiation to the packet price for each class. Via numerical experiment, we validate our argument and illustrate the implication of the work.

Empirical Study on Unit Bias under the Flat Rate Pricing in the Korean Mobile Telecommunication Market (이동통신시장에서의 단위편향 소비행태 발생에 관한 실증연구)

  • Lee, Sang-Woo;Jeong, Seon-Hwa;Lee, Hyeongjik
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.41 no.2
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    • pp.229-237
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    • 2016
  • The purpose of this paper is to empirically identify whether unit bias exists or not under the flat rate pricing in the Korean mobile telecommunication market and to give the desirable form of pricing plans for minimizing this irrational behaviors. Our results show that with the flat rate pricing consumers tends to make more voice or data traffic over their optimal consumption level, meaning the existence of unit bias in the Korean mobile market. These results imply that under the current pricing plans subscribers may pay higher monthly fee than their optimal cost which maximizes their utility, for using the telecommunications service. Thus, policy makers need to consider adopting mobile operators' segmentation of the flat rate pricing plans for the reduction of subscribers' telecommunications costs and the improvement of consumer welfare.

Design and Impact Analysis of Time-Of-Use Pricing based on Progressive Pricing (누진제기반 계시별요금제 설계 및 효과 분석)

  • Cho, Kyu-Sang;Son, Sung-Yong
    • The Journal of Korea Institute of Information, Electronics, and Communication Technology
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    • v.13 no.2
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    • pp.159-168
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    • 2020
  • Current residential electricity rates, which are charged regardless of consumption patterns, have a problem of restricting consumer choice. In order to improve the problem, the Korea government started a demonstration project based on Time-Of-Use(TOU) pricing from September 2019. However, the analysis of its effect is still limited. This study analyzed the changes and limitations of TOU pricing compared to the current progressive pricing. The result showed that the high rate payer's bill decreased by up to 33.8 % while the low rate payer's bill increased by up to 117.7 %. This can lead to the problem of accepting electricity rates from a social point of view. In this study, TOU pricing based on progressive pricing was proposed to overcome the problem. The results presented the rate changes depending on the power consumption patterns while decreasing the average rate change from 32 % to -1.9 %. It means that the proposed pricing can support the TOU effect while maintaining the framework of the existing progressive pricing.

A New Approach for Pricing the Internet Service

  • Lee, Hoon
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.28 no.11B
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    • pp.1007-1015
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    • 2003
  • In this Paper, we propose a method of determining the price for the elastic traffic in the current or future Internet services. First, we investigate the behavior in the consumption of bandwidth of elastic traffic in IP network. Next, we propose a new method to relate the bandwidth usage with the pricing for the elastic traffic, which is based partially or fully on the usage rate of the network bandwidth. Next, we propose an optimal charging function for elastic traffic, which is applicable to any Internet services. Finally, we will illustrate the implication of the work via simple numerical experiments.

DiffServ-Aware Pricing for Wireless Internet

  • Lee, Hoon
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.37 no.7B
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    • pp.550-564
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    • 2012
  • In this work we propose a new pricing scheme for the wireless Internet services over WiMAX system. First, let us review the characteristics of wireless network which is based on multi-hop relay WiMAX system. Next, we show why usage-based and QoS-aware pricing scheme is needed in the wireless Internet. After that, we propose a theoretical model for the price of multimedia services called a DAP (DiffServ-aware pricing) scheme for the WiMAX multimedia network which takes into account the consumed radio resource of WiMAX system as well as the supported QoS in the IP backbone network. Finally, we present explicit formulae for the packet price, price of consumed radio resource, and price of consumed bytes.

A Study on Packet Scheduling Algorithm Based on Pricing in HSDPA System (HSDPA 시스템에서 요금 기반의 패킷 스케줄링 알고리즘에 관한 연구)

  • Son Ju-Hee;Piao Shi-Quan;Park Yong-Wan;Lee Kyong-Lak;Chang Jae-Sung;Moon Soon-Joo
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.31 no.3C
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    • pp.219-227
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    • 2006
  • In this paper, we propose a packet scheduling algorithm to maximize the required total price of the systems that is applied with a different traffic pricing criterion by the mobile service operator according to different kinds of the services. The proposed algorithm adopts a particular estimation method in scheduling using the value of pricing function, which is based on the required services and the value of SIR(signal to interference ratio) that indicate the channel condition of each user. We compare Max C/I, proportional fairness and round robin algorithm with the proposed algorithm on HSDPA in order to analyze the performance. The result shows that the proposed algorithm satisfies higher throughput and provides maximum the mobile service provider's revenue.

The Impact of Prices and Distribution on Customer Satisfaction in the Pharmaceutical Industry of Kazakhstan

  • Аida OMIR;Assel BEKBOSSINOVA;Orazaly SABDEN;Anel A. KIREYEVA
    • Journal of Distribution Science
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    • v.22 no.7
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    • pp.83-94
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    • 2024
  • Purpose: This article aims to investigate the influence of pricing and distribution on the level of satisfaction and purchase decisions among consumers of pharmaceutical products in Kazakhstan. Research design, data, and methodology: A mixed-methods research design was utilized, incorporating primary and secondary data. Primary data were collected through a survey administered to customers across various pharmacy types, with 100 valid responses analyzed. Secondary data involved an extensive review of existing literature and analysis of national statistics concerning the pharmaceutical market trends from 2008 to 2022. Results: The results reveal a complex relationship between price perceptions and customer satisfaction. A significant segment of the population views current drug prices as high, which affects their satisfaction levels and purchase decisions. The study also highlights the importance of service quality in enhancing customer satisfaction, suggesting that service improvements could mitigate some of the negative perceptions of pricing. Conclusions: This research contributes to the limited but growing body of knowledge on the impact of pricing strategies on consumer satisfaction in the pharmaceutical sectors of developing countries like Kazakhstan. Focusing on economic and behavioral aspects, this study provides a more holistic understanding of the factors driving consumer satisfaction and purchase behaviors in this critical sector.

A Study on deciding optimal price of Bioinformatics services (바이오인포매틱스(Bioinformatics) 서비스의 적정가격 산정에 관한 연구)

  • Choi, Won-Hoon;Kang, Kyung-Sik
    • Journal of the Korea Safety Management & Science
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    • v.18 no.1
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    • pp.203-208
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    • 2016
  • Bioinformatics service is very new and emerging in market that provides information such as whether or not occurrence of a particular disease through the base of DNA(Deoxyribonucleic Acid) & RNA(Ribo Nucleic Acid) sequence analysis. Recently, interest growing rapidly in utilization of the industrial purpose, but provision of commercialization like pricing and service packaging is not enough to go to market. For go-to-market, firstly refine the services and perform cost calculation of services in cost-plus method then estimate consumer utility by conducting conjoint analysis. Collectively, with cost and consumer utility result, optimal service price can be calculated.

Dynamic Pricing Based on Reinforcement Learning Reflecting the Relationship between Driver and Passenger Using Matching Matrix (Matching Matrix를 사용하여 운전자와 승객의 관계를 반영한 강화학습 기반 유동적인 가격 책정 체계)

  • Park, Jun Hyung;Lee, Chan Jae;Yoon, Young
    • The Journal of The Korea Institute of Intelligent Transport Systems
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    • v.19 no.6
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    • pp.118-133
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    • 2020
  • Research interest in the Mobility-as-a-Service (MaaS) concept for enhancing users' mobility experience is increasing. In particular, dynamic pricing techniques based on reinforcement learning have emerged since adjusting prices based on the demand is expected to help mobility services, such as taxi and car-sharing services, to gain more profit. This paper provides a simulation framework that considers more practical factors, such as demand density per location, preferred prices, the distance between users and drivers, and distance to the destination that critically affect the probability of matching between the users and the mobility service providers (e.g., drivers). The aforementioned new practical features are reflected on a data structure referred to as the Matching Matrix. Using an efficient algorithm of computing the probability of matching between the users and drivers and given a set of precisely identified high-demand locations using HDBSCAN, this study developed a better reward function that can gear the reinforcement learning process towards finding more realistic dynamic pricing policies.

An Economic Analysis of Flat Pricing for Unlimited Voice Calls : Necessary Conditions and MNO's Strategy (음성무제한 요금제경쟁의 경제적 분석 : 무제한요금제 도입 필요조건과 통신사의 선택)

  • Kim, Weonseek
    • Journal of Information Technology Services
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    • v.12 no.3
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    • pp.111-126
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    • 2013
  • As the gaps become narrower in interconnection fee and volume rate, the MNOs began to introduce flat pricing for unlimited voice traffic competitively in Korea wireless telecommunication market : 'unlimited talks within intra-network' by the 1st operator, followed by the 3rd operator's 'unlimited talks over all networks'. As a result, subscribers tip in toward the third ranked operator and could bring a substantial change to steadfast market structure over the last decade in Korea. This paper aims to develop a simple economic model to analyze competition with flat pricing for unlimited voice traffic, and to check whether the pricing can be appropriate for the MNOs. The results show that MNOs already step in the necessary conditions to launch flat pricing for voice traffic. It also predicts that the MNOs compete with unlimited talk over all networks and set a single fee in an equilibrium. At present, the MNOs run virtually identical pricing for unlimited talk over all networks, considering their differentiation with respect to service quality, coverage and brand preference.