Developing a Product Strategy under Circumstances of Consumers' Bounded Rationality

A significant increase in competition on the mobile communications market caused by the emergence of a new player (Tele2) and a decrease in the purchasing power of the population, caused by a decrease in their real incomes, forces market players to pay considerable attention to their product strategy. However, it is hard to predict the attractiveness of a new tariff profile, especially in circumstances of consumers' bounded rationality. Hence the problem is highlighted: the need to forecast consequences of introducing a new tariff profile, in particular, subscribers' choice of a tariff in the context of their bounded rationality, which consists of: - inaccurate understanding of their goals and available opportunities on a certain tariff; - a lag of rational behavior; - in a conscious refusal from rational choice. The aim of the paper is to develop a tool that takes into account an influence of consumers' bounded rationality on the results of product strategy development by Tele2. To reach the stated goal, statistics available to the company regarding the prevalence of different behavior of subscribers when new tariff proposals appear will be analyzed. As a result of the analysis, a tool will be proposed that allows the company to evaluate the effect of launching a new tariff profile in consideration of consumers' bounded rationality.