Analyzing Pricing Strategies of MTN-Irancell



Price is one of the four elements of marketing mix. One of the important decisions any business faces is select pricing strategies that can be effective in achieving company goals. Pricing methods are generally divided into cost-based and value-based methods. Considering that the marginal cost of information goods is zero, the pricing methods of these goods is value-based. In this study, MTN Irancell company’s pricing strategies have been (investigated). The type of the research is descriptive and its method is (survey). Vendors and university students are the two selected statistical community. Number of sample per community is 384 and samples are randomly selected. The first result of research is that the relationship between demand of SMS and (call service) is positive. Note that because of positive relationship, bundling is not a suitable strategy. elasticity of demand for each service in each group is less than one, so that the company can reach high levels of income and profit by increasing price of services. Its recommended that company can add third degree of price discrimination to its pricing strategies, because the price elasticity of demand for both service in student group is less that vendors group’s elasticity and average price for each service in student group is more that vendors group. Also it’s recommended to apply two-tariff pricing method because the marginal cost of production is zero and it can help company to increase its profit. In addition, there is positive effect of network externalities in demand of services.