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Title:High correlation between net promoter score and the development of consumers' willingness to pay (Empirical evidence from European mobile markets) PDF Logo
Authors:Jeanjean, Fran├žois
Issue Date:2011
Series/Report no.:22nd European Regional Conference of the International Telecommunications Society (ITS2011), Budapest, 18 - 21 September, 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues
Abstract:This paper shows that the correlation between the Net Promoter Score and consumers' Willingness To Pay in five European mobile markets is very strong. The Net Promoter Score is provided by a survey and the Willingness To Pay is calculated using the Spokes Model which is an economic model based on horizontal differentiation among firms. The model input data (firms' revenues, number of subscribers and profits) are provided by Merill Lynch, Bank of America. The well-known correlation between Net Promoter Score and Revenues is weaker and arises from the previous correlation. The same is true of the correlation between Net Promoter Score and Profits.
Subjects:Net Promoter Score
recommend intention
customer satisfaction
consumer's Willingness to Pay
JEL:D11
D43
L13
L96
M31
Document Type:Conference Paper
Appears in Collections:22nd European Regional ITS Conference, Budapest 2011

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