Introducing a New Internet Solution
Introducing a new Internet solution for consumers can be challenging – especially when there are a variety of Internet providers that have multiple offerings. Our client, a telecom company, was looking to expand their portfolio of Internet solutions by offering a new, innovative way to connect to the Internet. However, they were unsure of what specific features to include in the release of the offering and how drastic this new offering would impact the Internet market.
We started with preliminary research to address the first objective – what features should our client include. Leveraging a Q-Sort analysis, we were able to determine the top features that were most important to consumers. With this narrowed-down list of features, we then tested the new Internet solution against current offerings that consumers can purchase. A Discrete Choice design was implemented whereby consumers had to pick the Internet service provider and Internet solution at various price points that they were most likely to purchase.
Determining how a new service can impact the market is crucial. In this case, we were able to identify that a majority of those who opted to purchase the new solution were our client’s current customers in the market for a cheaper and more cost-friendly service, while only some were new customers coming from a competitive Internet provider. Our client was then able to determine the price point of the new Internet solution that would not negatively impact their revenue based on the number of current customers making the switch.