Consumer preferences for service portability in Japan's mobile phone market

Abstract

Japan’s mobile phone market has been oligopolized by three incumbents who are seeking vertically integrated business models, which may prevent competitors from using platform layers to provide original services. We conduct two types of conjoint analysis to measure consumer-stated preferences and draw two main conclusions from the analyses. First, the average consumer is willing to pay more than JPY 2, 000 (US $18) to increase mobile service portability. Second, the average consumer’s willingness to pay (WTP) corresponds to JPY 100~200 (US $1~2) per song for securing music download platforms. In addition a dilemma exists in consumer preferences, namely the choice between free mobile service portability and convenient music download platforms.