In the highly competitive telecommunications market in Slovenia, companies continuously strive to acquire new users to increase their market share. Due to price wars and a high proportion of disloyal customers with a high churn rate, retaining existing users and encouraging upgrades, which indirectly allows for increased profit and long-term growth, is also crucial. The main purpose of this master's thesis was to investigate which pricing strategies are most effective in encouraging subscription package upgrades among Slovenian consumers and to examine the impact of price sensitivity on the frequency of switching telecommunication companies. Four hypotheses, formulated based on the reviewed literature, were tested using quantitative analysis of data obtained from a survey questionnaire. The results confirmed the hypothesis that price sensitivity significantly affects the frequency of switching providers after the promotional price of a package expires. The research also showed that offering additional services, such as a free subscription to streaming services, can be an important factor in consumers' decision to upgrade - half of the respondents who initially claimed that a free subscription upon signing up did not persuade them, ultimately chose a package upgrade that included a streaming service subscription. This master's thesis contributes to a deeper understanding of the impact of price sensitivity on consumer decision-making in the telecommunications sector. It also offers practical guidelines for designing effective pricing strategies, emphasizing the importance of adjusting to different market segments and creating offers that enhance the perceived value of services.
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