Mobile Phone Service Industry Research Articles

The Millennials as Stayers versus Switchers: The Context of Mobile Phone Services in Sri Lanka

The study was conducted to evaluate the nature of the behavioral aspects of the Millennials in terms of loyal and switching behavior as reference to the mobile phone services subscription. The study was conducted in two stages. At the initial stage, a customer survey was conducted with a sample of 521 respondents to identify the nature of retention and switching behaviour of the Millennials in the context of mobile phone services. The comprehensive analysis of customer responses extended the study to the second stage which involved in focus group discussions to probe the perceptions towards the decision of remaining loyal or switching and identify the nature and characteristics of each type of customer. Accordingly, the triangulation research approach involving both qualitative and quantitative data collection methods was adopted to achieve the desired objectives of the study. The study is significant as it evaluates the nature of the behaviour of the Millennials in the context of remaining versus switching and presents a semantic profile of customers with four types of loyalty namely fanatic, satisfied, brand loyal and captive and four types of switchers namely convenience seeker, discontented customer, variety seeker and price-conscious customer with respect to the mobile phone services industry.

Do Reductions in Switching Barriers in The US Mobile Service Industry Affect Contract and No-Contract Customers Differently

In the past four years, the US mobile phone service industry has implemented changes related to product offerings and competition strategies. Mobile phone service providers have shifted from contract to no-contract plans, separated devices from service costs and begun challenging switching barriers by offering to refund the financial costs of potential switchers. This study examines customers' perceptions of contract and no-contract mobile phone service plans regarding the impact of switching barriers on their decisions to change providers. Consistent with previous research, the study finds that contract and no-contract mobile phone service customers differ significantly in their perceptions of relational benefits, switching costs and availability and attractiveness of alternatives. However, in contrast with previous research, the study observes no significant differences in the length of time they intend to wait before switching and their perceptions of providers' effort to recover a service. Implications of the findings for theory and practice conclude.

Do reductions in switching barriers in the US mobile service industry affect contract and no-contract customers differently

In the past four years, the US mobile phone service industry has implemented changes related to product offerings and competition strategies. Mobile phone service providers have shifted from contract to no-contract plans, separated devices from service costs and begun challenging switching barriers by offering to refund the financial costs of potential switchers. This study examines customers' perceptions of contract and no-contract mobile phone service plans regarding the impact of switching barriers on their decisions to change providers. Consistent with previous research, the study finds that contract and no-contract mobile phone service customers differ significantly in their perceptions of relational benefits, switching costs and availability and attractiveness of alternatives. However, in contrast with previous research, the study observes no significant differences in the length of time they intend to wait before switching and their perceptions of providers' effort to recover a service. Implications of the findings for theory and practice conclude.

Antecedents of switching intention in the mobile telecommunications industry

PurposeThis study sheds some light on factors that affect customer switching intention in the Malaysian mobile phone service industry. More particularly, the purpose of this paper is to examine the effect of service quality (SQ), customer satisfaction, switching cost and consumer innovativeness (CI) on service switching intention (SWI); the mediating role of customer satisfaction; and the moderating role of service switching cost on the relationship between CI and SWI.Design/methodology/approachData were collected using a self-administered questionnaire survey that yielded 535 responses. Using structural equation modelling approach, the partial least square software, version 3 was utilised to test the study hypotheses.FindingsResults reveal that customer satisfaction, service switching cost and CI directly affect SWI. However, no significant relationship was found between SQ and SWI. Again, data supported the mediating effect of customer satisfaction as well as the moderating effect of service switching cost.Research limitations/implicationsIt is expected that the findings from this study will enable policymakers, managers and marketers to formulate better strategies and effectively implement loyalty programs, preventing their customers from switching.Originality/valueThis study contributes to the existing literature by testing switching costs as the quasi moderator. Moreover, this is a pioneer study to consider CI as the antecedent of SWI.

Switching behavior of U.S. mobile phone service customers after providers shift from contract to no contract mobile phone service plans

The study examines the impact of the recent shift of the mobile phone service providers in the U.S., from contract to no contract mobile phone service offerings, on the switching behavior of customers in different age groups. Consistent with previous research, the findings ascertain that switching barriers related to relational benefits, availability and attractiveness of alternatives, service recovery and retention in the mobile phone industry are perceived differently by customers in different age groups. However, counter to previous research in the retail banking industry, the research finds that younger customers in the mobile phone service industry are more likely to perceive relational benefits, the effort providers exert to recover a service and are less likely to switch to other providers than older customers. The research findings have implications to theory and practice.

The influence of consumer complaint behaviour on relationship quality among Malaysian mobile phone services subscribers: complainers versus non-complainers

Mobile phone service subscribers in Malaysia have been increasing tremendously. However, the number of complaints received with regard to mobile phone services is small as compared to the number of subscribers. Evidently complaining is one of the consumer behaviours which provides significant impact to organisations as well as to complainers or consumers. Studies on Consumer Complaining Behaviour (CCB) are continuously carried out due to its importance. Although, CCB has extensively been studied in various countries and industries, limited studies are found investigating the relationship between CCB and relationship quality. Therefore, this study was conducted to reduce the existing research gap by concentrating on the Malaysian mobile phone services industry. A total of 550 of mobile phone users consisting of complainers and non-complainers from two selected states in Malaysia were selected as respondents. Using Structural Equation Modelling (SEM) to analyze the data, the GOF, AVE, CR and convergent validity values confirmed the measurement model of the CCB dimensions which consist of public complaint soft action, public complaint extreme action, private complaint soft action and private complaint extreme action for complainers and non-complainers, respectively. The structural model revealed mixed results of the relationships between the exogenous and endogenous variables. The results provide the indicator of the relationship quality between service providers and consumers. As the mobile phone services industry involves a huge number of Malaysian population this issue should become the focal point to the parties concerned in protecting the consumers.

Construct Validation of Consumer Complaint Behavioral Scale in the Malaysian Mobile Phone Services Industry

Consumer Complaint Behavior (CCB) is a topic that is continuously being studied globally at various types of industries and from different perspectives. Nevertheless, CCB has varying definitions and different conceptualizations used among the researchers. Public Action, Private Action, No Action and Voice are among the underlying constructs that are frequently used by the researchers to represent CCB. This paper attempts to further clarify the possible and valid constructs of CCB based on the result of EFA and CFA for complainers and non-complainers. SPSS version 21 and AMOS version 21 were used to analyze the data and the results of Goodness of Fit, Average Variance Extracted have met the suggested threshold values. The study also revealed the existence of four factors of CCB for complainers and two factors for non-complainers.

A qualitative inquiry of multi-brand loyalty

Purpose – It is evident that most consumers are polygamous and are loyal to several brands within a particular product or service category. This circumstance is coined as “multi-brand loyalty” (MBL). The present research tries to shade light on consumers' motivation to become a multi-brand loyal by answering the research question: “why consumers become multi-brand loyal within a particular service category?” The paper aims to discuss these issues. Design/methodology/approach – Four focus group discussions and 13 in-depth interviews were carried out to gain deeper insights regarding the drivers of MBL. Findings – The findings of this study suggest that “financial benefits”, “need for privacy”, “competitor's attractive promotional campaign”, “public self-consciousness” and “availability of cheap handset and SIM card” are the most frequently cited reasons that can make mobile phone service users multi-brand loyal. In addition, the study reveals heterogeneity among consumers, i.e. along with “multi-brand loyals”, “sole-brand loyals”, “switchers” and “cross-buyers” also exist in the Malaysian mobile phone service market. Practical implications – These insights put forth the importance for managers of mobile phone service industry to be more cautious in formulating their retention strategies. Moreover, they will be aware of the complicated loyalty pattern of their consumers which will eventually guide them to consider different strategic moves for each different loyalty segments. Originality/value – Although the existence of MBL has been proven empirically, little attention is given to understand consumers' motive to become a multi-brand loyal, particularly in the context of services. Therefore, taking this opportunity into account, the present study fills this gap by providing an in-depth understanding of the phenomenon.

선택형 컨조인트 분석(Choice-based Conjoint Analysis)을 통한 제품-서비스 통합 효과 분석

PSS (Product-Service System) is a competitive strategy for a service company or a servitized manufacturer. We investigate the product-service integration effect in a mobile phone service industry. Using choice-based conjoint analysis, we measure main and interaction effects of product and service. We collected a sample of size 171 from a college student group in Seoul, Korea. We find the existence of the interaction effect of product and service in PSS and show the direction of PSS strategy using main and interaction effect. Keyword:Product-Service System, Choice-Based Conjoint Analysis

Value Added Service and Service Quality from the Customer’s Perspective: An Empirical Investigation in Thai Telecommunication Industry

Increasing global competition has led to an intensively competitive market among service providers. Several organizations have created and developed a variety of products or services; in particular the telecommunications industry has developed mobile phone services. Various value-added services linked to mobile phone services, such as communication, entertainment, information services and money transfer services have been intensively incorporated to sustain and serve the customer’s need, which in turn demands performance maximization. In service marketing literature, SERVQUAL and SERVPERF have been reported as failing to measure service quality in new industries such as the retail industry’s B2B service. Therefore, service quality models for the mobile phone service industry need to be further developed. Service quality models have placed little focus on value-added services and no research has yet operationalized the concept of value-added services in a service quality model from the customer’s perspective of the service industry. Hence, this paper aims to conceptualize a service quality model based on Gronroos’ Model, other exploratory research and the current market situation in the service context. A total of 998 structured questionnaires were distributed to pre-paid mobile phones users in nine provinces around Thailand. The results indicate four dimensions of service quality. The value-added services have shown a particularly high level of measurements of satisfaction. These findings reveal a meaningful insight into how customers perceive the value-added services offered by service providers. This will help managers to design an appropriate variety of service options that suit their customers and  in turn may lead to the development of a long-term relationship with their organizations. Keywords: Value added services, Service quality, Telecommunication Thailand

TRUST AND COMMITMENT: DO THEY INFLUENCE E-CUSTOMER RELATIONSHIP PERFORMANCE?

Customer relationship management can help companies build lasting relationships with their customers. Today, CRM has dramatically changed because the internet can be used for CRM applications. Thus, Electronic Customer relationship management (e-CRM) is a comprehensive business and marketing strategy that integrates people, processes, technology and all business activities for attracting and retaining customers through the internet and mobile phones. E-CRM results in repeat purchases, word of mouth, retention, cross buying, brand loyalty and customer satisfaction. The keen competition in the communication and mobile phone service market place and the increasing numbers of mobile phone users worldwide has influenced researchers to investigate factors that contribute to e-CRM performance. This study investigates the influence of customer trust and commitment on e-CRM performance in the Jordanian mobile phone services industry. The analysis shows that customer trust and commitment were positively related to e-CRM performance. To cite this document: Nor Azila Mohd Noor, Trust and commitment: Do they influence e-customer relationship performance?, International Journal of Electronic Commerce Studies, Vol.3, No.2, pp. 281-296, 2012. Permanent link to this document: http://dx.doi.org/10.7903/ijecs.1096

Xpressions of generation Y: perceptions of the mobile phone service industry in Pakistan

PurposeThe purpose of this paper is to verify the consumer preference and choice behavior; also determine the speculative low loyalty behavior of consumers belonging to generation Y sub segment – adults (age 19‐28) and their perceptions regarding various brands.Design/methodology/approachData were collected from 100 university students in Pakistan belonging to the age group 19‐28 years old. The research was concentrated in the mobile phone service sector. Data analysis was conducted using statistical analysis software SPSS.FindingsThe results indicate that stated preference set and actual choice behavior are dissimilar. The generation Y adults sub group contra‐indicates loyalty characteristics as high in a developing market context against the established wisdom of low loyalty found in developed countries. The perceptual maps of brands indicate no distinct personality characteristics necessitating marketers to rethink their strategies in this service industry. Finally, this research reconciles the gap between loyalty, stated preference and distinctiveness of brand personalities.Research limitations/implicationsOne limitation pertains to the target segment of 19‐28 years old. Future research could be expanded to other demographic segments and use other products and brands.Originality/valueThe major contribution of this paper is that it will advance theory regarding generation‐based characteristics to a less developed economy context by verifying theoretical proposition with regard to brand preferences and revealed brand choices. Second, marketers would be able to focus their promotions keeping in mind the perception and loyalty factors.

The influence of usability and enjoyment on electronic customer relationship management performance in Jordan mobile communication services

Electronic customer relationship management performance is a comprehensive business and marketing strategy that integrates people, process, technology and all business activities for attracting and retaining customers over the internet and mobile phone to reduce costs and increase profitability by consolidation the principles of customer loyalty. Therefore, the results of electronic customer relationship management performance are repeat purchase, word of mouth, retention, cross buying, brand loyalty and customer satisfaction. The keen competitive in the communication and mobile phone service market place and the increasing numbers of mobile phone users all over the world has influence the researcher to investigate usability and enjoyment as antecedents of electronic customer relationship management performance in mobile phone services industry. Four hundreds and eighty eight set of questionnaires have returned and analyzed. Two factors been tested to investigate the relationship with E-CRM performance. The analysis shows that usability was positively significant towards E-CRM performance. Enjoyment has failed to predict E-CRM performance. Base on the results, it can be concluded that the mobile service provider has to ensure their services fully satisfied their customer usability. Somehow, future research must investigate other factors as the antecedent for E-CRM performance. Other initiative is to consider a model testing in difference context of electronic service to see any generalization on the research result. Key words: Electronic customer relationship management, mobile communication services, enjoyment, usability.

Electronic Customer Relationship Management Performance: Its Impact on Loyalty from Customers’ Perspectives

Undeniably, the telecommunication industry is changing radically. Today, communication is becoming the nerve of the life. In particular, mobile phone service industry is gaining popularity and importance all around the world and as mobile usage is growing rapidly, telecommunication marketers are developing new strategies to take advantage of the potential customers. Companies including communication companies are putting much more emphasis on customer relationship management (CRM) as a tool for managing customer relationship and to increase customer satisfaction and loyalty. E-CRM emerges from the internet and web technology to facilitate the implementation of CRM. E-CRM performance as the amount of improvement that companies achieve in customer relationship strength, sales effectiveness, and marketing efficiency after implementing CRM technology. This study examines the influence of e-CRM performance on customer loyalty in Jordanian telecommunication industry. Data were gathered from students in various universities in Jordan using survey method. Using regression analysis, the results supported that e-CRM performance significantly related to customer loyalty. The theoretical implications and managerial implications of these findings are discussed.

Evaluating wireless carrier consolidation using semiparametric demand estimation

The US mobile phone service industry has dramatically consolidated over the last two decades. One justification for consolidation is that merged firms can provide consumers with larger coverage areas at lower costs. We estimate the willingness to pay for national coverage to evaluate this justification for past consolidation. As market level quantity data are not publicly available, we devise an econometric procedure that allows us to estimate the willingness to pay using market share ranks collected from the popular online retailer Amazon. Our semiparametric maximum score estimator controls for consumers’ heterogeneous preferences for carriers, handsets and minutes of calling time. We find that national coverage is strongly valued by consumers, providing an efficiency justification for across-market mergers. The methods we propose can estimate demand for other products using data from online retailers where product ranks, but not quantities, are observed.