Product & Pricing Standardization within the Global Mobile Network Operator Industry

Abstract: Aim: This study focuses on the degree to which mobile network operators standardize or adapt their product and pricing strategies amongst their foreign subsidiaries. Method: 10 mobile network operators with large overseas business investments and 70 of their foreign majority-owned subsidiaries are included in this empirical analysis. Variables related to data, SMS, Voice, and other relevant variables, are selected to represent ‘product’ marketing characteristics; and number of plans and specific price points across three ‘price baskets’ to represent ‘price’ marketing. Results & Conclusion: MNOs exhibited a moderate degree of standardization in terms of product design, with a lesser degree of standardization for price. Standardization scores were highly positively correlated to subsidiary operations in markets within the same region and level of economic development as the domestic market. There is also a notable clustering of marketing approaches in the Sub-Saharan African region. Implications: Existing research on standardization is reinforced by these results. Future research on the MNO industry, if global in nature, will need to account for the large degree of differences between markets. If focused on specific regions, studies can proceed on the basis of similarity in marketing strategies. Contribution: This is the most recent quantitative study on standardization in the MNO industry carried out in the last 10 years. Since that time the industry has also undergone significant changes.