Analysis of willingness to pay in guaranteed multiple-priority service

Kyoko Yamori, H. Ito, Yoshiaki Tanaka · 2004

Differentiated services, which have multiple classes using priority control have recently been introduced. Various issues need to be addressed when providing multiple-priority, such as what sort of quality should be guaranteed, and what kind of pricing should be applied to the service. In this paper, the quantitative relation between the guaranteed bandwidth and willingness to pay (WTP) is shown by the questionnaire survey. We also did a factor analysis using regression and quantification method I to identify the factors that affect WTP. We identified that the main factors that affect the potential WTP are the number of usage days per week and over-midnight usage. And we also showed that the main factors that affect the sensitivity of the increase in WTP are the bandwidth at response time and the usage duration per day.

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