Consumer Loyalty and Willingness to Pay for Service Attributes Across Digital Channels PDF Print E-mail
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Friday, 22 August 2008 12:29

A Study of the Japanese Digital Content Market

Donghun Kim, Ph.D.
Philip Sugai, D.Sc.

Abstract
In this paper, the impact that the internet access device has upon consumer loyalty behaviors relative to internet content was explored. To do so, a mixed logit demand function for mobile and PC subscribers to digital content was estimated and consumers’ willingness to pay for attributes related to specific content providers and their levels of service quality were measured. It was found that significant differences in loyalty and willingness to pay for service quality factors existed between mobile and PC internet content subscribers, suggesting that while content may be developed as device independent, consumers interact differently with similar internet content accessed through different devices. Specifically, the willingness to pay for more robust and more frequently updated content was on average higher in the mobile segment than in the PC segment. In addition, the overall switching costs consumers attributed to specific content providers via the mobile channel were far higher than through the PC channel. These results suggest that more robust content management systems must be developed to accommodate for such differences in consumer behavior.

Keywords: Device Independence, Switching Costs, Consumer Loyalty, Mobile and PC contents, Hierarchical Bayesian model, a Mixed logit Model

Last Updated ( Monday, 01 September 2008 15:24 )
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Exploring the impact of handset upgrades on mobile content and service usage PDF Print E-mail
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Friday, 22 August 2008 12:28

Philip Sugai
International Journal of Mobile Communications (2007)

Abstract: The majority of handset sales in developed mobile markets has shifted from first time purchases to upgrades, with handset manufacturers, network operators and content and service providers appealing to consumers with increasingly advanced offerings in the hope of generating increased usage of, and revenues from, next generation services. However, there is a dearth of research exploring the relationship between mobile usage and handset upgrades. This paper provides the first empirical results in this area, showing that pre-existing usage habits play a far more important role in post-upgrade usage behaviours than upgrade motivations or the incremental technical capabilities of the new handset.

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Mapping the Mind of Mobile Consumers Across Borders PDF Print E-mail
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Friday, 22 August 2008 12:25

AN APPLICATION OF THE ZALTMAN METAPHOR ELICITATION TECHNIQUE

Abstract
Purpose: To define the similarities and differences in perceptions that mobile consumers in culturally distinct markets hold towards the mobile Internet.
Design/methodology/approach: Using the Zaltman Metaphor Elicitation Technique (ZMET), mental maps between consumers from Indonesia and Japan were developed and compared.
Findings: Results showed clear structural similarities between aggregate maps, while differences were found in experiential factors such as technical infrastructure or the underlying business model. The main barriers to widespread consumer adoption of the mobile Internet were not found in cognitive structures unique to individual markets, but appeared instead to be caused by inefficiencies within the wireless ecosystem.
Research limitations/implications: These results identified factors from a number of preexisting theories relevant to the mobile platform, suggesting the need to develop a new, more inclusive theory of mobile consumer behavior. ZMET was also shown to be an effective comparative analysis tool applicable to cross-cultural research.
Practical implications: Marketers can establish sustainable competitive advantage by effectively addressing the many negative aspects consumers raised about the MobileNet.
Additionally, these results suggest that the mobile platform can serve as the foundation for truly co-creative marketing initiatives.
Originality/value of paper: This is the first paper to explore the cognitive structure and content of consumer perceptions of the mobile Internet. This study was also the first to apply ZMET as a comparative tool, as well as the first to extend ZMET to include composite weights of construct dyads.

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