Operators face many challenges when developing new plans. The landscape is constantly changing with new promotions. Offers typically need to contain many different elements bundled together (device pricing, data volume, network speed and more). Consumer demands are often fickle. In short, strategists and propositions analysts are often confronted by competing objectives. Making matters worse from an intelligence gathering standpoint, operators closely guard data on the performance of their offers, so it can be nearly impossible to separate the crucial pieces of information from the mundane when deciding where and how to best compete.
With hedonic modeling, we can calculate the value each plan component contributes to the price of a mobile plan.