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1 Customer Transitions in Adopting Mobile Data Services: A Survey Analysis Comparing Korean and Japanese Users JE Short and J Siegel.

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Presentation on theme: "1 Customer Transitions in Adopting Mobile Data Services: A Survey Analysis Comparing Korean and Japanese Users JE Short and J Siegel."— Presentation transcript:

1 1 Customer Transitions in Adopting Mobile Data Services: A Survey Analysis Comparing Korean and Japanese Users JE Short and J Siegel May 2007

2 2 Motivation and Questions >Motivation: Wireless demand growth, user segmentation, application mix, usage (voice, data) and device preference, among others, is mediated by many factors, and is path dependent >Useful to study platform transitions as these transitions represent inflection points in aggregated profiles of use >Questions: How do firms create markets for new products and services when these products / services are not yet introduced? Consumer interactivity, expectations, pricing (economic incentives) What motivates consumers to upgrade existing product / services? What forms of incentives operate to transition behaviors (discontinuity) versus evolve behaviors over time?

3 3 Background >Marketing literature: WMDS adoption: customer switching and loyalty behavior as a function of technical complexity, personal innovativeness and trust Keaveney, 1995; Jones and Sasser, 1995; Rust, Lemon and Zeithaml, 2004; Reinartz, Thomas and Kumar, 2005; Pirc, 2005 General studies of technology adoption (co-evolution, etc.) Venkatesh, Morris, Davis & Davis, 2003 >Communications literature: Adoption of new technologies in developing economies, in more advanced economies, etc. Noam, Komatsuzaki, and Conn 1994; Noam 1998, 1999 Other factors To discuss

4 4 Study and Method >Companion surveys in Japan and Korea (same instrument), administered over same time period >Survey: 66 questions in five sections, administered in Japan and Korea, replicate planned for this year (to allow for longitudinal analysis) – full survey in paper >Respondent Pool: Just over 5,000 people responded, and 4,609 responses were judged suitable for analysis (incompletes, etc.) Average age of respondent was 26. Approx 90% owned a cell phone, just over 80% had owned a pager, allowing a detailed analysis of pager to cell phone transition

5 5 Results >Transition Pattern (3 types) versus Price Sensitivity (Korean data)

6 6 Results >When Consumers Started Accessing the Internet, Mediated by Pager

7 7 Results >Reasons for Using the Internet a. I found out that the mobile Internet existed b. Using the mobile Internet became affordable c. I saw a need to use the mobile Internet. d. The services provided by the mobile Internet became attractive. e. Mobile Internet became easy to use. f. I became satisfied with security on the mobile Internet. g. Because my cell-phone happened to have Internet capability. h. Other

8 8 Conclusions and Future Research >Japanese and Korean platform transitions between pager and cellular services were very different >Japanese consumers held on to pager services far longer, and were willing to use (and pay for) both devices >Korean consumers shifted across platforms quickly and started using Internet services much more rapidly Mediating factor: Korean price subsidies >Further research Replicate survey planned this year Comparison of two platform transitions (within and between analysis)


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