Willingness to pay for over-the-top services in China and Korea

The increasing penetration of broadband and multiscreen availability has encouraged the development of premium video consumption through over-the-top (OTT) services. Netflix, the leading global OTT provider, is aggressively expanding its international operations and has ambitiously entered the Asian market. To prepare for the shift that the streaming service giant will bring, a proper understanding of consumer acceptance and intent to pay for OTT services is crucial. Therefore, this empirical study uses conjoint analysis to investigate the key attributes and to examine consumers’ marginal willingness to pay (WTP) for OTT services. We identified recommendation systems, resolution, and viewing options as important product attributes of OTT services that influence the WTP of Chinese and Korean consumers. The most important attribute for Chinese consumers of OTT services was resolution, followed by the recommendation system and viewing options. For Korean consumers, the recommendation system was ranked as the most valuable attribute, followed by viewing options and resolution. The overall WTP of Chinese consumers was 22.6 yuan (3.4 USD) per month, while Korean consumers’ intent to pay amounted to a total of 3530 won (3.1 USD) for OTT services.     

Habit spillovers or induced awareness: Willingness to pay for eco-labels of rice in China

The willingness to pay (WTP) for eco-labeled rice is investigated for Chinese consumers using choice experiments with information interventions. The mixed logit model shows preference heterogeneities, and the latent class model unveils two sources: pro-environmental behaviors with spillover effects, which are defined as “catalyst behaviors”, and the awareness about imperatives of ecological farming, which is defined as “induced awareness”. Classification results identify that using BP bags and sorting waste are “catalyst behaviors”. As the multivariate ordered probit model implies, consumers with higher educational attainment and family income levels are more likely to adopt these behaviors. Instead of creating the preference for eco-labels, the “induced awareness” is only found to strengthen preferences that already exist. The results of this study provide policy implications for the design of proper strategies to develop the eco-labeled food market, especially in developing economies.     

Estimating consumer preferences and willingness to pay for the underutilised indigenous chicken products

Indigenous chicken serves many functions, which include the provision of meat and eggs for home consumption and income from sales. The purpose of this study was to estimate the consumers’ responsiveness to an increase in prices of the indigenous chicken products and how much they are willing to pay for them in the market. The survey was conducted in the selected three regions of Kenya. A total of 930 respondents were interviewed both in the urban and rural areas. Contingent valuation experiment was used in empirical data collection. The two-step Heckman selection model was utilised to analyse consumers decisions and the amount they were willing to pay. The study results revealed that consumers are willing to pay 23.26% per kg more for indigenous chicken meat and 41.53% for eggs. Socioeconomic factors like age, income, education and family size significantly determines consumers’ willingness to pay. Other important factors include the indigenous chicken meat substitutes’ prices, attributes like taste/flavour and the product’s form on purchase. The yolk colour and size of eggs determined the consumers’ willingness to pay. Preferences for indigenous chicken products were found to be high. This information will assist in understanding both the urban and rural consumer’s behaviour. Therefore, useful for the indigenous chicken producers, breeders, marketers and policy makers in developing efficient production and marketing strategies. This would also provide a means of improving food security and livelihoods of the rural poor indigenous chicken farmers.     

Evaluating the impact of broadband access and internet use in a small underserved rural community

Having adequate access to the internet at home enhances quality-of-life for households and facilitates economic and social opportunities. Despite increased investment in response to the COVID-19 pandemic, millions of households in the rural United States still lack adequate access to high-speed internet. In this study, we evaluate a wireless broadband network deployed in Turney, a small, underserved rural community in northwest Missouri. In addition to collecting survey data before and after this internet intervention, we collected pre-treatment and post-treatment survey data from comparison communities to serve as a control group. Due to technical constraints, some of Turney's interested participants could not connect to the network, creating an additional comparison group. These comparisons suggest two primary findings, (1) changes in using the internet for employment, education, and health could not be directly attributed to the internet intervention, and (2) the internet intervention was associated with benefits stemming from the ability to use multiple devices at once. This study has implications for the design of future broadband evaluation studies, particularly those examining underserved rather than unserved communities. Recommendations for identifying appropriate outcome variables, executing recruitment strategies, and selecting the timing of surveys are made.     

Access to ICT in rural and urban Thailand

This paper addresses the information and communication technology adoption decisions of Thai households. The findings suggest that household composition, education, wealth, and occupation are key factors determining information and communication technology adoption. The rural–urban gap of mobile phone adoption was negligible in 2009 after controlling for household characteristics, while the gaps for other information and communication technologies have persisted. Having a family member migrate to work elsewhere significantly increases the likelihood of mobile phone adoption.     

Voices from Northern Canada: Integrating stakeholder expectations in telecommunications policy for rural,remote and Northern regions

In Canada, residents of rural, remote and Northern communities generally pay more for slower, less reliable, and more expensive telecommunications services compared to southern and urban residents. This situation is particularly concentrated in small-population, rural Indigenous communities located in the Northern territories. Over the last several decades, many public policy initiatives have attempted to develop telecommunications services, including high-speed broadband, in these underserved areas. However, Northern input into these initiatives and their outcomes has been limited — despite increasing evidence of the benefits of place-based planning, monitoring and evaluation processes. In this context we examine a recent public consultation about telecommunication services in these regions, focusing on expectations submitted by individual Northerners and by intermediary organizations representing their interests. Our analysis reveals distinct but complementary functions expressed by these different kinds of intervenors, which we suggest policymakers could take into consideration when planning consultations involving rural and remote regions.     

Strategic choice and broadband divergence in the transition to next generation networks: Evidence from Canada and the U.S.

This article investigates how infrastructure competition among broadband network infrastructure operators in Canada and the U.S. has influenced their incentives to increase fixed broadband connection speeds and invest in next generation fiber-to-the-premises (FTTP) technologies. The evolution of measured broadband speeds since the late 2000s documents growing differences in the incentives of dominant broadband operators to respond to demand for higher speed connectivity by increasing connectivity speeds they deliver to their customers. Dominant network operators in Canada have shown relatively stronger incentives than their counterparts in the U.S. to invest in and increase the capacity of legacy platforms. In the U.S. FTTP deployment incentives have been somewhat stronger, but network operators have been more reluctant to upgrade legacy technologies to deliver higher speeds. Diversity of strategic choices by large operators helps explain increasing regional and local broadband infrastructure gaps within the two countries. A high dividend payout financial strategy and increasing vertical integration appear to enhance the potential for overinvestment and inefficient duplication in legacy platforms by competing infrastructure providers.     

The participation society and its inability to correct the failure of market players to deliver adequate service levels in rural areas

This paper critically reviews the ‘participation society’ inspired policy measures of two Dutch provinces (Drenthe and Groningen) for providing rural broadband. Based on a database with broadband initiatives, interviews with stakeholders, focus groups and document analysis, it analyzes how rural broadband initiatives and regional governments interact in their ventures to provide superfast broadband to rural communities. Essential in this is that in the Dutch participation society concept, citizens' initiatives are seen as an important actor to deal with failing service delivery by market players in rural areas. The relation between regional governments and citizens' initiatives, however, is troublesome, resulting in inadequate policies. Key findings are that even when governments come up with supportive policies for citizens' initiatives, initiatives still experience governmental efforts as constraining factors. Regional governments apply ‘old style’ governance and construct generic policy instruments, forcing initiatives to put a lot of effort in complying with generic policy requirements or political goals. Overall, solving a national market problem at the regional level proves to be problematic. More national guidance is needed to solve the rural broadband gap.     

Differences in consumer loyalty and willingness to pay for service attributes across digital channels: A study of the Japanese digital content market

In this paper, the impact that the Internet access device has on consumer loyalty behaviors relative to Internet content was explored. To do so, a mixed logit demand function for mobile and PC subscribers to digital content was estimated and consumers’ willingness to pay for attributes related to specific content providers and their levels of service quality were measured. It was found that significant differences in loyalty and willingness to pay for service quality factors existed between mobile and PC Internet content subscribers, suggesting that while content may be developed as device independent, consumers interact differently with similar Internet content accessed through different devices. Specifically, the willingness to pay for more robust and more frequently updated content was on average higher in the mobile segment than in the PC segment. In addition, the overall switching costs consumers attributed to specific content providers via the mobile channel were far higher than through the PC channel. These results suggest that more robust content management systems must be developed to accommodate for such differences in consumer behavior.