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ET Phone Home Inc Forecasting Business Demand Case Solution

Solution Id Length Case Author Case Publisher
2025 609 Words (3 Pages) Frank V. Cespedes Harvard Business School : 583121
This solution includes: A Word File A Word File

ETPH, if granted FCC Cellular license would face marketing challenges that can be categorized under two broad challenges; promotion and pricing. These two challenges are explained below along with the recommended actions that ETPH can take.

Case Analysis for ET Phone Home Inc Forecasting Business Demand Case Solution

Firstly, ETPH managers will face challenges in terms of promotion of the cellular radio service. ETPH managers may find it difficult to move customers to purchase in the purchase funnel. The purchase funnel is a marketing concept that states how customers move across 4 stages when they make a purchase. These are awareness, consideration, purchase intent and satisfaction (Colicev, Kumar & O'Connor, 2019). ETPH can create awareness about its cellular service through advertisements and customers can come to know about them. However, it would find it difficult to bring the service into their consideration or lead them to making a purchase. 

This is because 60.25% of the survey participants were not interested in buying cellular radio service. These people did not find the need for one as 92.35% of these stated. The survey also showed that the interest in using the cellular service was more among people who had used other radio services before. For customers, there would be a challenge in leading them to purchase as these customers have not used radio services before and are not aware of its benefits. 

This problem can be tackled by being involved in promotional activities that communicate the usefulness of the new technology for the business customers of ETPH. This is because according to Nysveen, Pedersen and Thorbjørnse (2005), perceived usefulness is the most important in determining intentions to purchase for mobile services.

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