A Study On The Price Model Of Cable Digital Television Products In China Based On Hedonic Price Theory

This situation in the world today, technology progress become an important force promoting economic and social development, technology innovation is the one of the most active factors in technology progress, is the process by which science technology transform to part of the productive forces. Technology innovation made constant efforts to promote the creation of new industry and reconstruct traditional industries, to promote the development of economy and society, to change in the management system and operation mechanism.Digital television(DTV) is one of the most important technology innovation in the history of broadcasting television, is the application in all processes of collection of television show, production, transmission and take-over, is also the trend of development of broadcasting television all of the world.After three years experiments, the works of cable digital television have been carried out in all-round way. At present, the cable digital television industry has became the culture and information industry, can supply the comprehensive business, including video or audio broadcasting, television programs, information, and services on line; the cable television system has been built by program base, transmission base, services base and monitoring base; the new idea of cable digital television development which is informationization, localization, and individuation, has been formed. The model of"adding services, adding charges, operating by market, transforming as the whole"is extended all of the country.The market of cable digital television in the stage of the whole transformation is similar to the market of abroad while transformation from wireless to cable television, the programs of informationization, localization, and individuation are the mainstream, and the products are more heterogenous. So the paper applies the hedonic price theory in the research of cable digital television price based on the abroad research. In terms of the necessary and situation of the problem about the pricing of cable digital television of China, building a cable digital television hedonic price model, which can reflect the situation of China, and test the model with the data which is collected on the experimental units, and discuss further the effect of factors on the price of cable digital television and effect mechanism. The objective of this paper is building a new theory and method which are suitable to the cable digital television pricing of China, and providing a theory basis for the pricing of the cable digital television of China, and then push the implementation of the whole transformation of the cable digital television of China.The study of the paper includes the following aspects. Firstly, reviews the relative literature about the theory of hedonic price and research of cable television.Secondly, chooses and measures the hedonic variables of cable digital television. Confirms the factors which affect the price of cable digital television, codes and measures the data of cable digital television, builds a good foundation for structure the model of cable digital television. According the characters of the cable digital television of China market, there are 13 character variables which affect the price of the cable digital television of China.Thirdly, analysis of the model of cable digital television, uses SPSS software to analysis the model, and gets the hedonic prices of cable digital television products, and analysis the effect of price of cable digital television products, confirms the main factors which affect the price of the cable digital television products.The results of the paper is as following, Firstly, the hypothesis of perfect competition of the hedonic price theory is difficult to satisfy, especially to the cable digital television market. So the modification to the cable digital television hedonic price model is necessary, the method of modification is add a variable of market power of monopoly firm to build a hedonic model to suit the monopoly market. Secondly, the characters which affect the price of the cable digital television can classify in three categories, such as products characters, market power and need characters. The characters of products include program types, program numbers, and modes of services. The market power is evaluated from the control of monopoly firm to the price, including make-up of price and other substitute business. The need characters reflect the effect of difference of consumers on the price, including the per-capita disposable income and taste, and so on.Thirdly, the results of analysis impact that there are 6 variables which affect on the price of the cable digital television of China, they are the charge of simulate television, the program number of simulate television, areas, special channel numbers, pay channel numbers and program numbers of CCTV and CETV. The effect of the charge of simulate television, the program number of simulate television, special channel numbers, program numbers of CCTV and CETV on the price of the cable digital television of China is significant positive, and the effect of areas, pay channel numbers on the price of the cable digital television of China is significant negative.The results impact that the charge of simulate television, the program number of simulate television, play a great role to the price of the cable digital television of China, the effect of digital broadcasting and information services on the price of based tier are not significant. The orientation of base tier and pay tier is confusion, so the positive role of pay network channel is limited seriously. The characters of the base tier price of the cable digital television of China is not significant, market power is an important factor which affects the price, and the features of need characters are difficult to identify.