Service demand analysis using customer-choice behavior modeling, with consideration of awareness and perception

This paper presents a method of customer-choice behavior modeling for analyzing demand for telecommunication and Internet services. We have proposed a framework for analyzing service demand, which can be used to simulate scenarios under various assumed conditions. It consists of a customer behavior model, a service model, an environment model, and scenario simulation functions. A customer behavior model is constructed for each customer segment in order to improve the accuracy of the overall model. Customers are classified into several segments according to not only their preferences or attributes but also their knowledge of services, including existing services and their specifications. This paper examines customer-choice behavior modeling using awareness and perception of services. It shows service demand analysis for providers of various Internet access line services as an application example. It also demonstrates that the proposed method effectively improves the accuracy of modeling demand.