Improving consumer mobility in the mobile voice services market: a comprehensive set of remedies

Switching costs increase the rigidity of consumers demand and lessen competition between firms, effects that are particularly relevant in the mobile voice services market. This paper characterizes the most important mobility restrictive factors for consumers in this market, presenting specific examples and discussing their impact on competition. In addition, a survey was conducted to obtain data on consumption decisions by mobile voice customers in Portugal. The survey results suggest that switching costs represent more than 13 euros or 57% of the average monthly expenditure with these services. The disclosure of a new mobile phone number is the most difficult task in the switching process. Customers also showed high concern with respect to the possibility of losing quality of service. Compatibility costs also impose high restrictions to customer mobility. Following the identification of these restrictive factors, the adoption by policy makers of remedies to address the different search and switching costs is discussed and their implementation prioritized according to mobile customers' needs. --Switching costs,search costs,remedies

Measuring the Benefits of Mobile Number Portability

Increasing numbers of countries require mobile telephone networks to offer mobile number portability (MNP). MNP allows customers who wish to switch mobile operator to keep their mobile numbers, avoiding the costs of switching to new numbers. Ex ante assessments suggest that MNP should reduce switching costs and strengthen competition. In this paper, we test MNP’s impact on market outcomes using international time-series cross-section data. We find that MNP significantly increases average mobile telephony retail prices and churn (a proxy for switching).

Optimal Bundle of Multimedia Services in Emerging Mobile Markets

Although various emerging technologies have been launched, they present limitations as far as offering full-scale ubiquitous services independently is concerned. In view of this fact, service providers are likely to provide bundled services among possible combinations of services. Indeed, making a timely decision regarding the value maximization of bundled service is directly related to service providers' future growth and success in the turbulent market environment. This paper aims to find the optimal service bundle among five emerging mobile services: T-DMB, S-DMB, WiBro, HSDPA, and Telematics. Considering what kinds of service features among the five emerging services offer differentiation to customers, we examine four attributes (TV, voice, portable wireless internet, and location-based services) using conjoint analysis to distinguish the service features. Our results show that TV service is the most favored among the attributes, followed by voice service in second position, and the internet and location-based service in third and fourth place respectively. Our result implies that mobile operators would be better off bundling HSDPA and S-DMB first, and then adding other services later, while fixed operators would be better off bundling WiBro and S-DMB first and other services later.telecommunications and broadcasting convergence; emerging service; 4G Technology; T-DMB; S-DMB; WiBro; HSDPA; telematics; customer preference

Factors Affecting U.S. Trade and Shipments of Information Technology Products: Computer Equipment, Telecommunications Equipment, and Semiconductors

Despite a recent downturn, the information technology (IT) products sector experienced a tremendous expansion in trade and shipments during the last decade and became an increasingly important component of the U.S. economy. This expansion was driven by a variety of factors such as the globalization of IT production, constant technological innovation, rapid growth in worldwide consumption, and global trade liberalization. This working paper will examine these factors, providing particular attention to the computer equipment, telecommunications equipment, and semiconductor industries.International Development,

AN ANALYSIS OF EQUILIBRIUM RELATIONSHIP BETWEEN PRICE ELASTICITY AND EXPENDITURE LEVEL: A CASE STUDY OF KOREAN MOBILE MARKET DATA

In most developing countries, telecommunications industry has been grown fast and still has more growth potential than in the developed countries. Clearly the telecommunications industry contributes to foster economic developments and also to narrow the communication gaps among countries. Among many components relating to the success of quick developments of telecommunication services, an appropriate and optimal pricing strategies is the most vital element. In this view point, this paper examines the optimal price discrimination strategy for firms in a monopolistically competitive market. The primary interest is the theoretical relationship between price elasticity and the average expenditure level of consumers. Our equilibrium analysis shows that the relationship can go either way (positive or negative) depending on the prevailing price level of the product in concern. As an empirical example, using a hierarchical Bayes model we find that heavy user of mobile service are substantially more elastic to the price of calls in Korea. A discussion of the optimal pricing scheme and market structure is in order.Price Discrimination, Price Elasticity, Price Sensitivity, Mobile Telecommunications, Hierarchical Bayes Model

Critical review of the e-loyalty literature: a purchase-centred framework

Over the last few years, the concept of online loyalty has been examined extensively in the literature, and it remains a topic of constant inquiry for both academics and marketing managers. The tremendous development of the Internet for both marketing and e-commerce settings, in conjunction with the growing desire of consumers to purchase online, has promoted two main outcomes: (a) increasing numbers of Business-to-Customer companies running businesses online and (b) the development of a variety of different e-loyalty research models. However, current research lacks a systematic review of the literature that provides a general conceptual framework on e-loyalty, which would help managers to understand their customers better, to take advantage of industry-related factors, and to improve their service quality. The present study is an attempt to critically synthesize results from multiple empirical studies on e-loyalty. Our findings illustrate that 62 instruments for measuring e-loyalty are currently in use, influenced predominantly by Zeithaml et al. (J Marketing. 1996;60(2):31-46) and Oliver (1997; Satisfaction: a behavioral perspective on the consumer. New York: McGraw Hill). Additionally, we propose a new general conceptual framework, which leads to antecedents dividing e-loyalty on the basis of the action of purchase into pre-purchase, during-purchase and after-purchase factors. To conclude, a number of managerial implementations are suggested in order to help marketing managers increase their customers’ e-loyalty by making crucial changes in each purchase stage

Adoption of Mobile Financial Services among Rural Under-Banked

During the last decade, there has been tremendous growth in mobile penetration in many countries across the globe and most interestingly in a number of developing countries. On the other hand around, half of the world’s population is deprived of banking and financial services. This paper is based on a study that was aimed to identify drivers and inhibitors for adoption of MFS among the rural under-banked population and to compare the same with that of the existing studies. During the study, an extensive review of literature was conducted to identify the factors that were studied and found significantly affecting the adoption of mobile financial services. This was followed by an exploratory qualitative research conducted among the rural under-banked population of three distinct states in India. The findings of the study indicate that the demand for banking and financial services and the amount of hardships faced in availing these services through the existing channels of delivery can act as strong drivers for MFS adoption among the rural under-banked. On the other hand, factors like lack of trust on technology and lack of technology readiness were found to act as barriers to the adoption of MFS.

Understanding Consumer Churning Behaviors in Mobile Telecommunication Service Industry : Cross-national Comparison between Korea and China

It is crucial for telecom operators to shift from a subsidy-centered to a service-centered marketing strategy. As the market reaches its saturation point, the effectiveness of customer acquisition through the traditional subsidy decreases and offering differentiated services for existing customer retention is critical. This study aims at finding out factors affecting consumer churning intention based on PPM (Push-Pull-Mooring) theory in order to exactly understand consumer behaviors in the mobile telecommunication service industry (MTSI). This study also analyzes the difference between Korea (saturation market) and China (growth market) in terms of the causality between the intention to switch and the affecting factors. The research findings will encourage telecom operators to establish the effective service strategy that corresponds to their level of market maturity

Mobile Subscribers\u27 Willingness to Churn Under the Mobile Number Portability (MNP)

Mobile number portability (MNP) means that customers using mobile service can retain their telephone numbers when they change operators. Mobile carriers are concerned about which factors influence willingness to churn of customers. This study examined these concerns through three steps. The first is checking whether willingness to churn between the different situations, without MNP and with MNP differs. The second is to figure out how different factors influence willingness to churn in those situations. Finally, a classification model is proposed to categorize the subscribers who have willingness to churn or not. This study shows that the difference of willingness to churn before and after MNP. The results show that quality and price are the most influential factors in both cases. Inconvenience of changing numbers is additional factor in case of the unavailability of MNP. The results have implications particularly that mobile carriers should consider their quality of service and price more under the new situation