Consumer response to unit pricing for mobile telephony

This project is a co-operative study between ACCAN and Deakin University. It focuses on Unit Pricing, the practice of displaying the price of goods or services based on a standard quantity, to allow a direct comparison between competitive offers. This study aimed at gauging whether the new unit pricing information for mobile phone contracts assists consumers in assessing and comparing the value provided across alternative contracts within and between suppliers. Some 24 in-depth interviews were conducted with consumers who had recently bought or renewed a mobile phone contract.
The research showed that most consumers could use unit pricing information and some found it useful. Where consumers’ plans had unlimited or infinite capacity, unit pricing information was not relevant. Many consumers preferred voice allowances to be expressed in minutes, rather than in dollar allowances. Data was the most problematic category, as consumers typically had only limited understanding of the amount of data that various applications used. Most did have a broad understanding of what total capacity in data they would need, typically expressed in gigabytes.
Consumers commonly sought simplicity in deciding on which plan they would purchase or renew. A key issue for consumers was not “going over”, that is not exceeding their call, text or data allowances. For that reason, they were prepared to choose a plan that commonly resulted in them not using their full allowances each month. Some consumers used Apps on their smartphones to monitor their usage. Not all consumers had experienced advisory messages about nearing the limits of their plan’s allowances.
The Report recommended that:

R1. Unit pricing should be maintained
R2. Where unit pricing is provided for call costs, these should be expressed in terms of a one-minute call.
R3 Unit pricing for data should be expressed in terms of gigabytes or part thereof.
R4 In advertising mobile phone plans and at point of sales, customers should be provided with three levels of information – 1) overall plan features, 2) unit pricing information and 3) a data calculator.
R5 Level 2 and 3 information should be provided in a standard format across the industry, enabling consumers to make ready comparisons between plans and between competitive offers from different providers.
R6. Continuing public education is needed.
R7. Warnings about going over should always include the date when the allowance period ends and tell consumers what the rate will be if they “go over” based on the Level 2 information.
R8. The Consumer Protection Code should be reviewed in the light of these findings and recommendations.

Perceptions of mobile plan unit pricing and terms and conditions

Purpose: The purpose of this paper is to test the efficacy of disclosing unit pricing and increasing the type size of complex terms and conditions in advertising. This is in line with recommendations made by global telecommunications regulators, including in Australia, to protect consumers in selecting mobile plans.

Design/methodology/approach: The authors employed a 2 (unit price disclosed: no, yes)×3 (type size: nine-, 12- and 15-point terms and conditions) full factorial, between-subjects experimental design using a scenario and fictional advertisements for 24-month mobile phone plans. This was complemented by 24 in-depth interviews with consumers who had recently purchased “real” plans and their assessment of these.

Findings: Extra information in the form of unit pricing has a positive influence on consumers’ value perceptions, but not on perceived confusion or risk. Presenting complex terms and conditions in larger type increases consumers’ perceived confusion and risk, but not perceived value, as consumers have difficulty understanding the complicated information presented.

Research limitations/implications: This study focused on a single country market for one product type of mobile phones, using a limited range of mobile plans. Practical implications: Public policymakers and providers are advised to pre-test planned changes to advertising’s informational content prior to implementation to identify the efficacy of proposed changes to protect consumers. Consumers may also need to be educated to accurately interpret complex plans.

Originality/value: The study contributes to the domain of informational content in advertising as a form of consumer protection. The effect of unit pricing and larger type for terms and conditions on consumer perceptions has not been examined previously in complex product settings.

Consumer decision making in telecommunications

The data analyses consumers' decision making processes in the telecommunications market. The dataset includes both autoethnographic videographies and experimental quantitative data.

The data comprises an extended autoethnographic methodology with 22 participants. Participants recorded video diaries, written diaries and extended interviews about their experiences looking for a mobile phone service. It also includes a quantitative experiment with 517 participants to examine, under close to real conditions, how consumers make decisions. This involved advertising and sales scenarios looking at the effect of bundling and limited time offers in advertising on consumer perceptions and purchase intentions; the effect of unit pricing and the presentation of terms and conditions information in advertising on consumer perceptions and purchase intentions; and the effect of information and the mode of its presentation in personal selling on consumers’ perceptions.

Motor-unit Coherence During Isometric Contractions Is Greater in a Hand Muscle of Older Adults

The purpose of this study was to quantify the strength of motor-unit coherence from the first dorsal interosseus muscle in young and old adults using data obtained in a previous study, where no differences in motor-unit synchronization between the two groups were observed.

Motor-unit coherence and its relation with synchrony are influenced by training

The purpose of the study was to quantify the strength of motor-unit coherence from the left and right first dorsal interosseous muscles in untrained, skill-trained (musicians), and strength-trained (weightlifters) individuals who had long-term specialized use of their hand muscles. The strength of motor-unit coherence was quantified from a total of 394 motor-unit pairs in 13 subjects using data from a previous study in which differences were found in the strength of motor-unit synchronization depending on training status. In the present study, we found that the strength of motor-unit coherence was significantly greater in the left compared with the right hand of untrained right-handed subjects with the largest differences observed between 21 and 24 Hz. The strength of motor-unit coherence was lower in both hands of skill-trained subjects (21–27 Hz) and the right (skilled) hand of untrained subjects (21–24 Hz), whereas the largest motor-unit coherence was observed in both hands of strength-trained subjects (3–9 and 21–27 Hz). A strong curvilinear association was observed between motor-unit synchronization and the integral of coherence at 10–30 Hz in all motor-unit pairs (r² = 0.77), and was most pronounced in strength-trained subjects (r² = 0.90). Furthermore, this association was accentuated when using synchronization data with broad peaks (>11 ms), suggesting that the 10- to 30-Hz coherence is due to oscillatory activity in indirect branched common inputs. The altered coherence with training may be due to an interaction between cortical inhibition and the number of direct common inputs to motor neurons in skill- or strength-trained hands.

Predatory pricing and the expectation of recoupment in Australia : Boral and the pathways forward

High Court decision, Boral v ACCC in which the Court overturned the decision of the Full Federal Court and held that Boral's strategy of below cost pricing did not contravene s 46 of the Trade Practices Act - suggestion that the test of recoupment be the central test with respect to predatory pricing cases.

The pricing of property trust IPOs in Australia

Following Brounen and Eichholtz (2002) this paper adds to the international literature investigating the underpricing of REIT initial public offerings (IPOs), with a study into Australian property trusts. This study finds that initial day returns can in part be explained by forecast profit distributions (or dividends) and the market sentiment towards property trusts from the date of the prospectus to the date of listing. There is some support for the “winners curse” explanation of underpricing with evidence that large investor or institutional involvement at the outset of the IPO also has some explanatory power.

Life-cycle energy analysis of building integrated photovoltaic systems (BiPVs) with heat recovery unit

Building integrated photovoltaic (BiPV) systems generate electricity, but also heat, which is typically wasted and also reduces the efficiency of generation. A heat recovery unit can be combined with a BiPV system to take advantage of this waste heat, thus providing cogeneration. Two different photovoltaic (PV) cell types were combined with a heat recovery unit and analysed in terms of their life-cycle energy consumption to determine the energy payback period. A net energy analysis of these PV systems has previously been performed, but recent improvements in the data used for this study allow for a more comprehensive assessment of the combined energy used throughout the entire life-cycle of these systems to be performed. Energy payback periods between 4 and 16.5 years were found, depending on the BiPV system. The energy embodied in PV systems is significant, emphasised here due to the innovative use of national average input–output (I–O) data to fill gaps in traditional life-cycle inventories, i.e. hybrid analysis. These findings provide an insight into the net energy savings that are possible with a well-designed and managed BiPV system.

Motor unit synchronization measured by cross-correlation is not influenced by short-term strength training of a hand muscle

The purpose of the study was to quantify the strength of motor unit synchronization and coherence from pairs of concurrently active motor units before and after short-term (4–8 weeks) strength training of the left first dorsal interosseous (FDI) muscle. Five subjects (age 24.8 ± 4.3 years) performed a training protocol three times/week that consisted of six sets of ten maximal isometric index finger abductions, whereas three subjects (age 27.3 ± 6.7 years) acted as controls. Motor unit activity was recorded from pairs of intramuscular electrodes in the FDI muscle with two separate motor unit recording sessions obtained before and after strength training (trained group) or after 4 weeks of normal daily activities that did not involve training (control group). The training intervention resulted in a 54% (45.2 ± 8.3 to 69.5 ± 13.8 N, P = 0.001) increase in maximal index finger abduction force, whereas there was no change in strength in the control group. A total of 163 motor unit pairs (198 single motor units) were examined in both subject groups, with 52 motor unit pairs obtained from 10 recording sessions before training and 51 motor unit pairs from 10 recording sessions after training. Using the cross-correlation procedure, there was no change in the strength of motor unit synchronization following strength training (common input strength index; 0.71 ± 0.41 to 0.67 ± 0.43 pulses/s). Furthermore, motor unit coherence z scores at low (0–10 Hz; 3.9 ± 0.3 before to 4.4 ± 0.4 after) or high (10–30 Hz; 1.7 ± 0.1 before to 1.9 ± 0.1 after) frequencies were not influenced by strength training. These motor unit data indicate that increases in strength following several weeks of training a hand muscle are not accompanied by changes in motor unit synchronization or coherence, suggesting that these features of correlated motor unit activity are not important in the expression of muscle strength.

Attaching unit costs to Australia`s national survey of mental health and wellbeing

Background: In mental health, policy-makers and planners are increasingly being asked to set priorities. This means that health economists, health services researchers and clinical investigators are being called upon to work together to define and measure costs. Typically, these researchers take available service utilisation data and convert them to costs, using a range of assumptions. There are inefficiencies, as individual groups of researchers frequently repeat essentially similar exercises in achieving this end. There are clearly areas where shared or common investment in the development of statistical software syntax, analytical frameworks and other resources could maximise the use of data.

Aims of the Study: This paper reports on an Australian project in which we calculated unit costs for mental health admissions and community encounters. In reporting on these calculations, our purpose is to make the data and the resources associated with them publicly available to researchers interested in conducting economic analyses, and allow them to copy, distribute and modify them, providing that all copies and modifications are available under the same terms and conditions (i.e., in accordance with the `Copyleft' principle). Within this context, the objectives of the paper are to: (i) introduce the `Copyleft' principle; (ii) provide an overview of the methodology we employed to derive the unit costs; (iii) present the unit costs themselves; and (iv) examine the total and mean costs for a range of single and comorbid conditions, as an example of the kind of question that the unit cost data can be used to address.

Method: We took relevant data from the Australian National Survey of Mental Health and Wellbeing (NSMHWB), and developed a set of unit costs for inpatient and community encounters. We then examined total and mean costs for a range of single and comorbid conditions.

Results: We present the unit costs for mental health admissions and mental health community contacts. Our example, which explored the association between comorbidity and total and mean costs, suggested that comorbidly occurring conditions cost more than conditions which occur on their own.

Discussion: Our unit costs, and the materials associated with them, have been published in a freely available form governed by a provision termed `Copyleft'. They provide a valuable resource for researchers wanting to explore economic questions in mental health.

Implications for Health Policies: Our unit costs provide an important resource to inform economic debate in mental health in Australia, particularly in the area of priority-setting. In the past, such debate has largely been based on opinion. Our unit costs provide the underpinning to strengthen the evidence-base of this debate.

Implications for Further Research: We would encourage other Australian researchers to make use of our unit costs in order to foster comparability across studies. We would also encourage Australian and international researchers to adopt the `Copyleft' principle in equivalent circumstances. Furthermore, we suggest that the provision of `Copyleft'-contingent funding to support the development of enabling resources for researchers should be considered in the planning of future large-scale collaborative survey work, both in Australia and overseas.

Pricing segmentation and MBA course choice

The consensus from studies of the price-demand relationship for higher education is that this relationship is negative but small. This paper investigates the circumstances in which demand for an MBA is positive to price increases. A survey of currently enrolled MBA students, and prospective MBA students, found that most students displayed the expected price elasticity in a conjoint analysis of hypothetical MBA course ratings. However, 12 per cent of respondents exhibited “reversal” behaviour regarding price. Profiling these respondents using discriminant analysis suggested that “reversals” seemed prepared to pay more for a course at a high prestige university, if they could study off-campus using print-based materials.

The relationship between business unit strategy and the use of market research

A study of 42 Australian marketing managers was conducted linking strategy to the use of market research, with a measure known as USER. It was expected that the Miles and Snow strategic typology with its greater emphasis on internal organisational culture, practices and structure would be more powerful than the Porter strategic dimensions in determining the motivation and actual use of market research. The findings showed that neither strategic typology was superior in predicting market research practice. In the study, the USER characteristics most linked to strategy were “the misuse of market research for political purposes” and “internal improvements based on market research.” Two other USER factors “rational use of market research findings” and “use of market research to confirm decisionmaking” were not found to be related to marketing strategy.

Pricing in the museum sector : the need to balance social responsibility and organisational viability

An essential component of marketing strategy is pricing. Pricing in museums, however, is problematic as issues beyond cost recovery or surplus, such as social responsibilities, need to be considered. This area of marketing is under researched. The aim of this study is to address the research gap by synthesising the literature on pricing strategy in the museum sector. The study found that there are a number of strategies being advocated with regard to pricing in the museum sector in the literature, each representing various perspectives of museology. A research agenda was proposed to assist marketers in the museum sector to meet their organisational needs, whilst balancing their social responsibilities.