Self‐Reflection and Articulated Consumer Preferences

Accurate measurement of consumer preferences reduces development costs and leads to successful products. Some product‐development teams use quantitative methods such as conjoint analysis or structured methods such as Casemap. Other product‐development teams rely on unstructured methods such as direct conversations with consumers, focus groups, or qualitative interviews. All methods assume that measured consumer preferences endure and are relevant for consumers' marketplace decisions. This article suggests that if consumers are not first given tasks to encourage preference self‐reflection, unstructured methods may not measure accurate and enduring preferences. This paper provides evidence that consumers learn their preferences as they make realistic decisions. Sufficiently challenging decision tasks encourage preference self‐reflection which, in turn, leads to more accurate and enduring measures. Evidence suggests further that if consumers are asked to articulate preferences before self‐reflection, then that articulation interferes with consumers' abilities to articulate preferences even after they have a chance to self‐reflect. The evidence that self‐reflection enhances accuracy is based on experiments in the automotive and mobile phone markets. Consumers completed three rotated incentive‐aligned preference measurement methods (revealed‐preference measures [as in conjoint analysis], a structured method [Casemap], and an unstructured preference‐articulation method). The stimuli were designed to be managerially relevant and realistic (53 aspects in automobiles, 22 aspects for mobile phones) so that consumers' decisions approximated in vivo decisions. One to three weeks later, consumers were asked which automobiles (or mobile phones) they would consider. Qualitative comments and response times are consistent with the implications of the measures of predictive ability.     

The Contributions of Firm Innovativeness to Customer Value in Purchasing Behavior

The purpose of this research is to examine the influence of firm innovativeness and product innovativeness on the components of customer value mediated by instrumental and symbolic brand benefits. Over the last 10 years, the mobile phone industry in Korea has grown rapidly, with the introduction of several innovative phone features. The research context therefore is mobile phones with Internet access and their users in Korea. A major research finding is that the firm innovativeness affects product innovativeness, and hence, the instrumental brand benefits. A firm's innovativeness also has a significant effect on the symbolic brand benefits and the partnership value. Our key academic contribution is to expand the previous fragmentary studies of customer value, by classifying customer value into four components: expectation, partnership, transaction, and relationship customer values, rather than just focusing on benefits and sacrifices. Implications for managers include the verification that firm innovativeness is a source of ability for mobile phone firms to create value for customers. Instrumental and symbolic brand benefits through innovation should be the focus area for marketers and new product development (NPD) managers in mobile phone firms to communicate with consumers to increase expectation values in the prepurchase step.     

Switching mobile operators: Evidence about consumers’ behavior from a longitudinal survey

The rate at which consumers switch providers is a key indicator of the level of competition among mobile telephone operators. This paper uses a longitudinal survey of 4110 mobile users in Spain in 2015 and 2016 to analyze what drives consumers’ decisions to switch mobile operators. After controlling for a number of individual characteristics, including gender, age, education level and employment status, switching was found to be significantly less common among satisfied customers and those whose mobile service was bundled with fixed services. Moreover, the more complex the bundle was, the lower the rate of switching was. Considerable consumer inertia was also found: inattentive consumers and those who had not switched previously were much less likely to switch. The implications of these results for regulators and operators are discussed.     

Integrating the Kano model into a robust design approach to enhance customer satisfaction with product design

The aesthetic qualities of products are critical factors in achieving higher customer satisfaction. This study presents a robust design approach incorporating the Kano model to obtain the optimal combination of design form elements. This can effectively enhance customer satisfaction and aesthetic product qualities with multiple-criteria characteristics. The Kano model is used to better understand the relationship between performance criteria and customer satisfaction, and to resolve trade-off dilemma in multiple-criteria optimization by identifying the key criteria in customer satisfaction. The robust design approach combines grey relational analysis with the Taguchi method to optimize subjective quality with multiple-criteria characteristics. This simultaneously yields the optimal aesthetic performance and reduces the variations in customer evaluations. Based on Kano model analysis, a weight adjustment process determines the weight of each product criterion for achieving the desired customer satisfaction performance. This process guides the prioritizing of multiple criteria, leading to higher customer satisfaction. A mobile phone design experiment was conducted to verify the benefits of using the proposed integrative approach. Results show that the generated optimal mobile phone design can effectively enhance overall aesthetic performance and customer satisfaction. Although mobile phone designs are the examples of this study, the proposed method may be further used as a universal robust design approach for enhancing customer satisfaction and product quality with multiple-criteria characteristics.     

From the outside in: Consumer anti-choice and policy implications in the mobile gaming market

Significant growth in mobile media consumption has prompted a call to better understand the socio-cultural and policy dimensions of consumer choices. Contrary to industry and technology led analysis, this study argues that to guide consumer choice and innovation via regulatory policies requires an understanding of both ex-ante as well as in ex-post consumption conditions. This study examines mobile phone gaming to uncover how consumer anti-choice shapes decision-making as a framework for closely interrogating the ways in which policy concerns impact on consumers’ behavior. Through eleven focus groups (n=62), the study empirically identifies voluntary, intentional, and positive consumer anti-choice behaviors all of which impact policy initiatives when consumers, both gamers and non-gamers, self-regulate their behaviors. Findings point to four types of policy implication: regulating the self-regulated, understanding anti-choice, boundary-setting and including the self-excluded.     

Consumer choice and local network effects in mobile telecommunications in Turkey

The aim of this paper is to analyze the extent of network effects in mobile telecommunications in Turkey, and to identify other determinants of consumer choice based on consumer survey data. This study shows that there are regional disparities in the adoption of network services in Turkey, the attractiveness of the different networks varies for consumers between different regions. The results show that local network effects are significant for consumer choice. This finding means that consumers are more likely to be affected by the choices of other people within their local area than by the overall size of a network. Furthermore, local network effects also outweigh macro network effects at least in Turkey.     

Estimating switching costs involved in changing mobile phone carriers in Japan: Evaluation of lock-in factors related to Japan’s SIM card locks

This paper employs a web-based conjoint-type questionnaire to examine empirically user preference for a hypothetical Subscriber Identity Module (SIM) unlock situation in Japan’s mobile phone market. This paper also analyzes carriers’ other marketing strategies to lock in consumers. The empirical analysis in this study reveals the following: over 80% of survey respondents evaluate a highly compatible platform with the SIM unlocked. Approximately 70% of consumers find that the value of discounts on initial payments exceeds the discounts on one-year monthly payments. In addition, conditions set by continuing agreements for mobile carriers and mobile handsets reduce consumer benefit by 35% at the median in the case of SIM unlocking with compatible platforms.     

Customer retention: A source of value for serial acquirers

Customer retention, in most cases, is regarded as an indicator of acquisition performance, but factors influencing it have rarely been studied in the serial acquirer context. As a consequence, this paper presents a model of the linkage between serial acquirers and customer retention by drawing on serial acquirer and customer relationship marketing and management literature. The paper proposes that the serial acquirers' focus on retaining acquired firms' business customers per acquisition deals may enhance the post-acquisition value. Furthermore, serial acquirers' acquisition experience (skills), managerial overconfidence/hubris, own customers' behaviour and technological context are identified to impact the customer retention of the acquired firm. Moreover, two dual-purpose variables—acquired firms' customer experience and acquired firms' customer relationships—are proposed to moderate the effects of serial acquirers' acquisition experience (skills), managerial overconfidence/hubris, own customers' behaviour and technological context on acquired firm customer retention and also to autonomously influence acquired firms' customer retention. The implications for serial acquirers and practice are discussed.     

Customer retention,loyalty, and satisfaction in the German mobile cellular telecommunications market

Customer retention (CR), loyalty (CL), and satisfaction (CS) are important (intermediate) goals for telecommunication network operators on their way to superior economic success in the liberalised German market. Therefore, drawing on a sample of 684 residential customers of digital cellular network operators in Germany this study tests hypotheses suggesting that CR, CL, and CS should be treated as differential constructs which are causally inter-linked. LISREL analyses support a two-staged model in which overall CS has a significant impact on CL which in turn influences a customer's intention to terminate/extend the contractual relationship with his mobile cellular network operator (=CR). Mobile service price and personal service benefit perceptions as well as (lack of) number portability between various cellular operators were identified as supply-related variables with the strongest effects on CR. Mobile network operators’ perceived customer care performance had no significant impact on CR. The findings suggest that an important lever for regulators to promote competition in cellular markets is the enforcement of efficient number portability procedures between mobile network operators.     

Intra-operator mobile plan switching: Evidence from linked survey and billing microdata

This paper examines consumers' intra-operator mobile phone plan switching in Ireland. It models the factors associated with switching outcomes, including the direction of change in expenditure and whether those who are observed to switch plans tend to arrive at more or less optimal plans given their usage. A dataset is employed that combines survey responses from mobile consumers with the same consumers' actual usage data in the period 2017–2019; this was collected by Ireland's national regulatory authority. The cost each consumer would have incurred on every plan offered in the market based on their observed usage is estimated. Using models that allow for selection into switching, associations between switching outcomes and demographic and user characteristics are modelled. Controls are included for plan and user attributes, including demographics and proxies for user sophistication and access to alternative communication options. A substantial proportion of intra-operator switchers in the sample increase expenditures when they switch plan. While many switchers move to plans that are more optimal given their usage, a slight majority move to plans that charge a higher price premium over the best available plan (based on observables) than the consumer's previous plan did. Few observable characteristics of consumers or plans seem to be significantly associated with which switches achieve greater optimality, although fixed operator effects are large and significant. These findings add to the weight of evidence which finds that many consumers fail to arrive at the best price even after switching.     

Determinants of customer loyalty in the wireless telecommunications industry

This paper reports the results of research investigating the determinants of the propensity to switch wireless service providers. A model generated from the data rather than from a priori theory is presented, and it is found to uphold the strong relationship between customer satisfaction and customer loyalty exhibited in prior studies. In sharp contrast to the prevailing industry practice of ‘locking in’ customers by means of restrictive contracts, this research suggests that wireless service providers are better off improving customer satisfaction in order to minimize customer defection. This would imply shifting scarce resources to customer retention through improved service, saving costs of expensive customer acquisition campaigns. The paper also proposes two methodological innovations. First, the research employs the ‘Tetrad methodology’ as an exploratory technique prior to building a Structural Equation Model (SEM) making it possible to identify drivers of loyalty—direct or indirect—when it might not be known a priori what these drivers might be. Secondly, the paper proposes an approach to estimating moderator effects on the relationship between satisfaction and customer loyalty.     

Drivers and barriers to cross-border e-commerce: Evidence from Spanish individual behavior

This paper explores the determinants of the individual's decision to perform cross-border e-commerce (CBeC). The European Union (EU) is especially interested in the promotion of CBeC because it is an important tool in its strategy to achieve the Digital Single Market in Europe. In this paper official data is used from a representative survey of 16,209 individuals on ICT usage by households and individuals that was carried out in Spain by the National Institute of Statistics (INE) for the year 2016. Using a standard neoclassical utility maximization framework, and logistic regression techniques, the results show that being a male is positively related to the probability of practicing CBeC. Education is positively and significantly related to the probability of being involved in CBeC with EU countries. Computer and Internet Skills are significant and positive factors in explaining CBeC (either with EU countries or with the rest of the world). The variable “how often the consumer sees other customer reviews before buying online”, has a positive effect. Foreign nationality also increases the likelihood of using CBeC. To promote CBeC in Spain measures towards developing digital skills, Internet trust and use of online information reviews of goods and services are discussed.     

Pull-and-suck effects in Taiwan mobile phone subscribers switching intentions

This paper uses a binary logit model to investigate the factors that influence subscribers to stay or migrate based on the competitive nature of Taiwan's mobile phone industry and subscribers' habit formation regarding service providers. The results show that subscribers' satisfaction, switching costs, and habit strength negatively influence switching intentions, constituting a sucking effect that motivates subscribers to stay with their original providers. Alternative attractiveness, on the other hand, positively influences switching intentions, comprising a pulling effect that encourages subscribers to migrate to other providers. In spite of the promotional benefits offered by new service providers, Taiwanese mobile phone subscribers generally remain with their original providers. For instance, when subscribers perceive that there are no significant influences between service satisfaction and switching costs associated with different providers, what encourages subscribers to stay with their original providers is habit strength. Oftentimes, it is difficult for subscribers with strong habits to be attracted by promotions offered by alternative service providers. Because the concepts of suck-and-pull effects or habit-and-competition forces are infrequently studied, this paper explores these concepts and attempts to fill the void.     

Is doing good good for you? how corporate charitable contributions enhance revenue growth

This study examines the impact of corporate philanthropy growth on sales growth using a large sample of charitable contributions made by U.S. public companies from 1989 through 2000. Applying Granger causality tests, we find that charitable contributions are significantly associated with future revenue, whereas the association between revenue and future contributions is marginally significant at best. We then identify the mechanism underlying our findings. Our results are particularly pronounced for firms that are highly sensitive to consumer perception, where individual consumers are the predominant customers. In addition, we document a positive relationship between contributions and customer satisfaction. Overall, our evidence suggests that corporate philanthropy, under certain circumstances, furthers firms' economic objectives. Copyright © 2009 John Wiley & Sons, Ltd.     

Characteristics and mobile Internet use intensity of consumers with different types of advanced handsets: An exploratory empirical study of iPhone,Android and other web-enabled mobile users in Germany

This work explores personal characteristics and mobile Internet (MI) use behaviors of consumers equipped with four distinct types of advanced handsets for accessing the Internet via cellular radio infrastructures of mobile network operators (MNO). Furthermore, it investigates the extent to which personal and mobile appliance characteristics explain variance in actual MI use intensity. Data on two demographic variables, three MNO relationship characteristics and actual MI use intensity (average monthly volume of mobile IP traffic generated by a subscriber in May and June 2011) of 9321 adult consumers with a flat MI pricing scheme are extracted from customer files of the German subsidiary of a large international MNO. 959, 2213, 2410 and 3739 of the sample members use an Apple iPhone 3, an Apple iPhone 4, a model running with Google’s Android operating system (OS) and other MI-enabled mobile OS/phone types, respectively. Compared to the adult population in Germany, persons at least 50 years of age are clearly underrepresented among MI adopters with the four studied device types. Differences between the four phone type groups with regard to gender, age, time from enrollment and MI use experience emerge as statistically significant, but they achieve only minor substantial relevance. MI use intensity is highly positively skewed: In each of the four appliance groups, a small number of users disproportionately add to the total MI traffic generated by the subjects. Consumers’ advanced OS/handset type strongly contributes towards explaining MI use intensity variance. iPhone subscribers generate more traffic than Android customers who in turn show a higher MI activity level than individuals running other web-enabled mobile models. Age is the only studied personal characteristic consistently showing a (negative) association with MI usage, which both is statistically and materially significant. Conclusions are drawn for MNO on MI marketing issues. Implications of study limitations for research on MI adoption and use behaviors on the MI are also outlined.     

心理契约违背、顾客满意与消费者非伦理行为——伦理意识的调节作用

消费市场竞争日益激烈,企业不能履行承诺的责任与义务时,则会形成心理契约违背,导致顾客产生不满意情绪,甚至出现非伦理行为。本文通过对328个样本数据的实证研究表明,交易型、关系型心理契约违背对消费者非伦理行为在部分维度上存在显著的正向影响;顾客满意在关系型心理契约违背与消费者非伦理行为之间的关系中起中介作用;相对主义伦理意识在关系型心理契约违背与无伤害行为之间具有显著的正向调节作用。为引导消费者进行伦理消费,企业应履行自身承诺维护顾客心理契约,提供个性化服务提升顾客满意度。     

Competition reform and household welfare: A microsimulation analysis of the telecommunication sector in Ethiopia

This paper presents a novel simulation method for estimating the likely welfare effects of policy reforms aimed at increasing competition in strategic economic sectors such as mobile phone services. The proposed method relies on a partial equilibrium simulation approach and estimates the welfare impacts on current consumers and the potential welfare effects among new consumers brought into the market by changes in prices due to competition. This approach is applied to the information and communication technology (ICT) sector in Ethiopia, one of the three countries in the world with a monopoly in the market for mobile phone services. Based on household budget survey data for 2015/16 and departing from a baseline reform scenario that dilutes the market share of the state-owned monopoly to 45 percent, the simulation model estimates a 25.3 percent reduction in the price of mobile services and an increase in 5.7 million new users of mobile services. The predicted drop in prices and increased users would generate a combined relative welfare gain of 1.18 percent (1.09 percent among current users and 0.09 percent among new users), that could be translated into a 0.31 percentage point decline in the national poverty rate and equivalent to lifting about 275,000 people out of poverty. Alternative reform scenarios that dilute the market share of the monopoly to 75 percent and to 30 percent are expected to reduce poverty rate in 0.13 and 0.52 percentage points, respectively. The method proposed in this study represents a useful tool for promoting competition reforms in developing countries, particularly in sectors known for excluding significant segments of the population because of high consumer prices.     

Health-related attitudes as a basis for segmenting European fish consumers

This paper identifies and profiles consumer segments based on health-related attitudes. Cross-sectional data were collected in 2008 through a pan-European consumer survey (n = 2400) with samples representative for age and region in France, Poland and Spain. Four distinct consumer segments based on health-related attitudes are identified: low interest in healthy eating consumers (29.4%), positive health enthusiasts (28.2%), health strivers (35.0%) and health uninvolved (7.4%). The segments differ significantly with respect to fish consumption, attitudes and knowledge about the health benefits of fish, interest in potential informational cues when purchasing fish, and individual socio-demographic characteristics. The segment low interest in healthy eating is characterised by younger age, more males, higher BMI, low fish consumption and low interest in information, and herewith emerges as a relevant though difficult to reach segment from a food and health policy perspective. Positive health enthusiasts and health strivers have a strong involvement with food, and a strong interest in healthy eating. Both segments have a very favourable disposition towards fish consumption, which would fit with their focus to either stay healthy (positive health enthusiasts) or improve their current health status (health strivers). Health uninvolved consumers do not care strongly about health in general; though attach high importance to eating healthily.     

Anti‐Competitive Interconnection: the effects of the elasticity of consumers' expectations and the shape of the network effects function

I find that interconnection might cause the market to be less competitive, and might lead to an increase in the price firms charge for their product. Absent interconnection, firms compete for a consumer for two reasons. The first reason is to obtain revenue from selling the product to a consumer (as in the case without network effects). The second reason is that by expanding the network by one more consumer, the product becomes more attractive to all other consumers. Interconnection eliminates the second reason—when firms interconnect, they are no longer concerned with consumers' following the crowd. I show that consumers and society might be worse off from interconnection. I focus on two factors that make the (post‐interconnection) price increase larger: consumer expectations that are highly sensitive to prices and consumers putting a high value on small increases in network size at the equilibrium market shares. Both of these factors make firms highly competitive, but only if the firms' products' networks are not interconnected.