Gülfem Işıklar, Mehmet Üner, Ayşe Başar Bener



Mobile network operators (MNOs) and service providers need flexible pricing mechanisms in order to fulfill next generation business models. Heavy competition in the wireless market place increases the importance of designing the most effective business models and developing long-term relationships with customers. Customer Relationship Management (CRM) is an effective tool in order to pursue long-term relationship with profitable customers. In this article, we focus on proposing a simple and robust pricing model for mobile commerce services based on CRM approach. This mechanism enables operators to satisfy the needs of their existing customers and to achieve the maximum revenue and utilization rate on their current customer portfolio as well. Our aim in this research is to come up with a unit price for each mobile service/product class by taking the issues of social welfare maximization into consideration. The CRM implementation in the proposed model further allows MNO to better understand its customers and hence to direct its marketing plans to a specific target market. Analytical and simulation results demonstrate the implementation and the effectiveness of the suggested approach.


  1. Deitel, H.M., Deitel, P.J., Nieto, T.R., and Steinbuhler, K., 2001. Wireless Internet and Mobile Business How to Program, Prentice Hall, 1st edition.
  2. Kuo, Y.F., and Yu, C.W. 3G telecommunication operators' challenges and roles: A perspective of mobile commerce value chain. Technovation, article in press.
  3. Clark, I. III, 2001. Emerging value propositions for mcommerce. Journal of Business Strategies, Vol.18 (2), pp. 133-148.
  4. Keen, P.G.W., and Mackintosh, R., 2001. The freedom economy: Gaining the m-commerce edge era of the wireless Internet, Osborne/McGrew-Hill, Berkeley.
  5. Mahatanankoon, P., Wen, H.J., and Lim, B., 2005. Consumer-based m-commerce: exploring consumer perception of mobile applications. Computer Standards & Interfaces, Vol. 27, pp. 347-357.
  6. Varshney, U., Vetter, R.J., and Kalakota, R., 2000. Mobile Commerce: A New Frontier, Computer, pp.32-38.
  7. Porter, M.E., 1985. Competitive Advantages, The Free Press, New York.
  8. Rülke, A., Iyer, A., and Chiasson, G., 2003. The ecology of mobile commerce: charting a course for success using value chain analysis, 2003. In: Mennecke, B.E. Strader, T.J., Mobil Commerce: Technology, Theory and Applications, Idea Group Publishing, pp. 114-130.
  9. Questus report, 2000. The ramp towards the pricing of broadband mobile services: UMTS & EGDE.
  10. Barnes, S.J., 2002. The mobile commerce value chain: analysis and future developments. International Journal of Information Management, Vol. 22, pp. 91- 108.
  11. Roh, T.H., Ahn, C.K., and Han, I., 2005. The priority factor model for customer relationship management system success. Expert Systems and Applications, Vol. 28, pp. 641-654.
  12. Kim, S.Y., Jung, T.S., Suh, E.H., and Hwang, H.S., 2005. Customer segmentation and strategy development based on customer lifetime value: A case study. Expert Systems with Applications, pp.1-7.
  13. Dwyer, F.R., 1999. Customer lifetime valuation to support marketing decision making. Journal of Interactive Marketing, Vol. 11(4), pp. 6-13.
  14. Hoekstra, J.C., and Huizingh, E.K.R.E., 1999. The lifetime value concept in customer-based marketing. Journal of Market Focused Management, Vol. 3(3-4), pp. 257- 274.
  15. Jain, D., and Singh, S.S., 2002. Customer lifetime value research in marketing: A review and future directions. Journal of Interactive Marketing, Vol. 16(2), pp. 34- 45.
  16. Hwang, H., Jung, T., and Suh, E., 2004. An LTV model and customer segmentation based on customer value: A case study on the wireless telecommunication industry. Expert Systems with Applications, 26(2), pp. 181-188.
  17. IBM Customer Analytics, Customer Lifetime Value, 2003. available at: http://www.cebt.re.kr/wh/%EC%B0%A8%EC%84%B 8%EB%8C%80CRM/CLTV.pdf
  18. Blake, S., Black, D., Carlson, M., Davies, E., Wang, Z., and Weiss, W., 1998. An Architecture for Differentiated Services, RFC 2475.
  19. Deering, S. and Hinden, R., 1998. Internet Protocol, Version 6 (IPv6) Specification, RFC 2460, Internet Engineering Task Force.
  20. Stidham, S.Jr., 2002. Pricing and congestion management in a network with heterogeneous users, submitted to IEEE Trans. Auto. Control.
  21. Shenker, S., Clark, D., Estrin, D., and Herzog, S., 1996. Pricing in computer networks: reshaping the research agenda. ACM Computer Communication Review, Vol 26, pp. 19-43.
  22. Kelly, F., 2000. Congestion control: fairness, pricing and stability. 15th IEEE Computer Communications Workshop, Captiva Island, Florida.

Paper Citation

in Harvard Style

Işıklar G., Üner M. and Başar Bener A. (2006). A CRM-BASED PRICING MODEL FOR M-COMMERCE SERVICES . In Proceedings of the International Conference on e-Business - Volume 1: ICE-B, (ICETE 2006) ISBN 978-972-8865-62-7, pages 118-125. DOI: 10.5220/0001428101180125

in Bibtex Style

author={Gülfem Işıklar and Mehmet Üner and Ayşe Başar Bener},
booktitle={Proceedings of the International Conference on e-Business - Volume 1: ICE-B, (ICETE 2006)},

in EndNote Style

JO - Proceedings of the International Conference on e-Business - Volume 1: ICE-B, (ICETE 2006)
SN - 978-972-8865-62-7
AU - Işıklar G.
AU - Üner M.
AU - Başar Bener A.
PY - 2006
SP - 118
EP - 125
DO - 10.5220/0001428101180125