Strategic Pricing and Positioning in the Telecommunications Industry: Retaining Customers and Attracting Subscribers

Abstract

The telecommunications industry provides a real-world example of the strategic use of pricing and positioning strategies to retain existing customers and attract new subscribers. Telecom companies offer special discounts and incentives to retain long-term customers, acknowledging the challenges and costs associated with switching service providers. Loyalty programs and exclusive offers are designed to cater to both inertial and variety-seeking consumers, aligning with the concepts explored in the paper. In addition, telecom companies may offer discounted plans and promotional deals to attract new subscribers, targeting consumers with lower switching costs. These strategic pricing and positioning strategies demonstrate how businesses in the telecommunications industry adjust their pricing and promotional strategies based on consumer behavior and market dynamics, aligning with the concepts explored in the paper. This model was solve with two-period duopoly method concentrating on Switching and remaining cost to figure out how consumers behavior effect on companies strategies.