Pricing of mobile phone attributes at the retail level in a developing country: Hedonic analysis |
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| Authors: | Waseem Ahmad Tanvir Ahmed Bashir Ahmad |
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| Affiliation: | 1. Institute of Business Management Sciences, University of Agriculture, Faisalabad, Pakistan;2. Department of Economics, Forman Christian College (A Chartered University), Lahore, Pakistan;3. Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad, Pakistan |
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| Abstract: | This study has been undertaken to determine the effect of mobile phone attributes on their retail market prices. A log-linear hedonic price model was fitted to a total of 348 handsets, for which data were collected about various attributes from different websites, while the price data were obtained from mobile phone retailers in two major cities of Pakistan from November 2016 to February 2017. Results indicate that brand, battery capacity, weight, operating system, RAM, memory size and display size have a significant positive effect on mobile phone prices. Given the significant premium associated with various characteristics, manufacturers need to formulate strategies to emphasize the battery capacity of 2000-3000?mAH, RAM of more than 1GB, screen size of more than 5 inches, memory size of more than 8GB, back camera of over 15MP, 4G network mode, front camera and FM radio. |
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| Keywords: | Mobile phone attributes Hedonic model Retail market price Developing country |
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