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Eurasian Business Review

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14-06-2019 | Regular Article

Analysis of household broadband technology preferences in Slovenia

Authors: Matej Švigelj, Nevenka Hrovatin

Published in: Eurasian Business Review | Issue 4/2019

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Abstract

This paper empirically examines the factors broadband users take into account when choosing their fixed broadband access mode in Slovenia. The conditional logit model was employed incorporating the survey data. The results reveal that the socioeconomic characteristics of users (age, education, gender, presence of student/pupil in the household, living in the city, subscription to TV services, and preferences for speed) influence the choice between different broadband access modes. Contrary to our expectations, access mode characteristics (the price, the download speed) have no statistically significant impact on the choice of the broadband access mode. This may be attributed to the intense price competition among different broadband technologies resulting in the price convergence and behavior of users, which tend to use the internet mainly for basic services. The results of the analysis may hold important implications for internet service providers when identifying appropriate strategies to attract customers to subscribe to their broadband technologies.

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For details of discrete choice models, see Train (2009), Maddala (1983) and Greene (2000).

Potential presence of multicollinearity was checked in two ways, firstly by calculating the bivariate correlation coefficients and, secondly, by calculating the Variance Inflation Factor (VIF). The estimated values for all bivariate correlation coefficients are below 0.41, indicating a small possibility of multicollinearity in our data set. The calculated values of the VIF test for all explanatory variables are below 1.3, reconfirming that multicollinearity is not present in our data set.

Variables AGE (CABLE) and DSTUSEC (DSL) are statistically significant only under the one-sided hypothesis.

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Title: Analysis of household broadband technology preferences in Slovenia
Authors: Matej Švigelj
Nevenka Hrovatin
Publication date: 14-06-2019
Publisher: Springer International Publishing
Published in: Eurasian Business Review / Issue 4/2019
Print ISSN: 1309-4297
Electronic ISSN: 2147-4281
DOI: https://doi.org/10.1007/s40821-019-00127-8

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