Model for Studying Commodity Bundling with a Focus on Consumer Preference

As various mobile contents can be delivered over mobile platform, mobile contents have been considered as new profit opportunities, Choices of mobile contents and mobile terminals are not independent but closely related. Accordingly, this paper analyses consumer preferences and correlations between the adoption of mobile phones and mobile contents. Based on survey data, multinomial logit and multivariate probit models with a Bayesian approach are used for understanding structures of consumer preferences. The results show not only consumer preferences for specific features of mobile phones and complementary relations between various types of mobile contents but also significant correlations between the adoption of phones and of contents. The results identify necessities of releasing phones with full web browsers in specific forms as well as providing product and services with an integrated view for both mobile phones and mobile contents. Also, the study presents information and new business opportunities for the telecommunication market.