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Electronics and Telecommunications Research Institute (한국전자통신연구원)
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Analysis of Consumers' Choices and Time-Consumption Behaviors for Various Broadcasting and Telecommunication Convergence Services

  • Koh, Dae-Young (Service Industries Division, Korea Institute for Industrial Economics and Trade) ;
  • Lee, Jong-Su (Department of Technology Management, Economics, and Policy Program, Seoul National University)
  • Received : 2009.08.30
  • Accepted : 2010.02.16
  • Published : 2010.04.30
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Abstract

In this study, we analyzed consumers' choices of various broadcasting and telecommunication convergence services and time consumption for chosen services by using survey data. A multivariate probit model was used to model consumers' choices of various broadcasting and telecommunication convergence services, and an ordered probit model was used to model consumers' time consumption for chosen services. Factors affecting consumers' choices and time-consumption behavior were identified, and simulation results of market competition and substitution were obtained. Based on these results, it was found that for the time being, consumers are highly locked into existing broadcasting services and are likely to become more price-sensitive to the new broadcasting and telecommunication convergence services. Also, the ways in which individual characteristics affect choices and time consumption were found to be very diverse service by service.

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