Marketing Science

Why Wireless Firms Love Family Plans

Family plans make sense for smartphone users who want to share minutes or data. Research from the University of Maryland’s Robert H. Smith School of Business shows why wireless service providers also win when they offer a full menu of individual and group subscription plans.

“Family plans allow the firm to better price discriminate and capture additional surplus from some consumers,” Maryland Smith professor Bo “Bobby” Zhou and two co-authors write in Marketing Science.

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