Demand Segmentation in the 5G Era: A Mixed Logit Analysis of Japanese Consumer Preferences

Naoki Takano ()
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Naoki Takano: Takushoku University

The Review of Socionetwork Strategies, 2025, vol. 19, issue 2, 255-269

Abstract: Abstract This study investigates how consumer digital usage patterns shape adoption preferences for fifth-generation mobile services (5G) in Japan. We use a mixed logit model on original survey data from 2024 to identify distinct consumer segments and drivers beyond conventional price factors. The analysis reveals that heavy engagement in online activities is strongly associated with users choosing 5G over 4G. For example, users who spend a substantial amount of time on web browsing or mobile gaming are much more likely to adopt 5G. This finding indicates that non-price factors, such as personal digital usage patterns, have a significant influence on technology adoption. Moreover, while price sensitivity remains important, behavioral factors exhibit an even stronger effect on choice. For example, an increase in a consumer’s web use or gaming time increases the likelihood of choosing a 5G plan far more than it increases the likelihood of choosing a 4G plan. In other words, usage intensity matters more for 5G adoption than for 4G. These findings suggest that consumer segmentation by usage profile is key to understanding 5G adoption. Furthermore, carriers and policymakers should tailor strategies to different user groups rather than relying on one-size-fits-all price competition. These insights demonstrate how user behavior patterns drive 5G adoption, offering a novel perspective beyond traditional price-centric analyses.

Keywords: Mobile; 5G; Telecommunications; Information and internet services (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s12626-025-00189-3

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