The determinants of mobile game success in South Korea

The global gaming industry, especially the mobile game market, has grown rapidly in recent years. One of the important characteristics of mobile games is that their lifetime is remarkably short compared with those of PC or console games, and downloads of most games peak during the early period of the service. Acquiring as many users as possible immediately after the launch and retaining these users therefore becomes very important for the successful performance of mobile games. This study aims to identify the determinants of mobile game success during different periods after the launch by comparing the first week's performance with the first 4 weeks' performance using a multiple regression analysis with mobile game application downloads from Google Play and estimated sales revenue as performance indicators. The predictors were classified on the basis of the pre- and postlaunch phases, and developer/publisher and third-party factors. A key finding is that for both revenue and downloads, TV advertising and the number of online videos have strong impacts on both the first week and 4 weeks' performance. In addition, preregistration during the prelaunch stage is effective for increasing both revenue and downloads in a relatively short time. Online videos uploaded by the users during the postlaunch phase may help to maintain long-term revenue. Although awareness of IP and name value of publishers are significant for short-term downloads, the effect diminishes after a month, which might imply that there could be an opportunity for small- and medium-sized companies to invest in media and obtain mobile platform advantages in the long run.     

Estimating consumer surplus in the mobile telecommunications market: The case of Korea

This paper estimates consumer surplus in the Korean mobile telephone services (MTS) market. The Korean mobile telecommunications market has grown rapidly since 1997 when competition was introduced and Code Division Multiple Access (CDMA) technology was commercialized. Because consumer surplus is relevant to the controversy over establishing an appropriate price level between consumers and service providers, the need for a robust measurement of benefit from MTS is increasing. The measured net consumer surplus estimated by means of elasticities of demand reached about US$48.8 billion in the period 1996–2004 and the changes amounted to about US$8.8 billion during the same period. In particular, after competition was introduced into the market with an accompanying price decrease and increase in the number of subscribers, consumers have benefited greatly. Therefore, it can be inferred that a facility-based competition policy and the reduction in price of access such as handset subsidies all played a positive role in the early diffusion of MTS in Korea. The estimated consumer surplus in this paper does not include network externality (option externality); if this were considered, the total social welfare of the consumer would be larger.     

Business ecosystem strategies of mobile network operators in the 3G era: The case of China Mobile

In order to define the mobile network operators' strategies of building value network in the 3G era, this paper applies the ecosystem principles to the mobile industry through a China Mobile case study. Based on an analytical framework of such principles, this paper reviews China Mobile's ecosystem, and identifies its success factors and problems. The results indicate that a complete ecosystem, where mobile network operators collaborate closely with value-added service providers, content/application providers, equipment and device manufacturers, and other involved organizations, can promote the development of mobile data services substantially. Therefore, mobile network operators should play a central role in the ecosystem by managing the entire value-chain and setting up proper value-sharing mechanisms. However, while doing so, problems may arise because of regulatory issues and information asymmetry. High-value common assets, a centralized management system, partner selection schemes and continuous innovations are important success factors.     

Reducing the level of switching costs in mobile communications: The case of Mobile Number Portability

Switching costs are one of the most important economic forces that affect market competition in mobile communications. Both theoretical and empirical studies have shown that switching costs reduce market competition leading to higher prices, lower product and service quality, and lower customer welfare. Given their negative consequences, national regulatory authorities have designed policies aimed at reducing switching costs and fostering competition. One of the most important of these, in the mobile communications industry, is mobile number portability (MNP). The aim of this paper is to investigate the effect of MNP on switching costs in mobile phone services. First, a hierarchical Bayes model is proposed to measure switching costs at the customer level and to investigate the impact of MNP on them. Second, this study examines the drivers of MNP adoption by customers using a binary logit specification. The results reveal that this regulatory policy has significantly reduced the cost of switching and that MNP adoption partially depends on customer-related variables.     

Analysis of spectrum auctions in India—An application of the opportunity cost approach to explain large variations in spectrum prices

The remarkable growth of mobile communication has reinforced the significance of the radio spectrum for mobile network operators. The availability of spectrum varies considerably between different countries due to national regulatory decisions. The focus in this paper is on India where operators have access to a limited amount of spectrum. This paper analyses the value of spectrum by estimating the opportunity cost, which is calculated by the savings that can be achieved by acquiring appropriate amount of spectrum rather than investing in additional base stations. The applied approach combines network deployment, user demand levels, cost, and capacity issues, which are integrated in the application in the opportunity cost approach for spectrum. The opportunity cost of spectrum is compared with prices paid at spectrum auctions. The analysis includes a discussion of drivers that determine the willingness to pay for spectrum. The results show that the opportunity cost of spectrum in relation to auction prices is lower than prices operators paid for 3G spectrum in the metro circles (service areas) while the value derived from the opportunity cost is higher than auction prices in the remaining circles.     

The diffusion of mobile data services and applications: Exploring the role of habit and its antecedents

Given the prevalence of mobile data services and applications (MDSA) such as App Store, it is important to diffuse MDSA and understand user behavior toward it. Recent research on marketing and information systems (IS) has shed light on the habitual use of frequently used IS. This study attempts to develop a research model that clarifies the role of habit in the actual use of MDSA. Considering the unique and specific characteristics of MDSA, this study examines the antecedents of MDSA habit in an effort to elucidate key factors accelerating the development of MDSA habitual use. Data collected from 317 users who had prior experiences with MDSA were empirically tested against the research model using partial least squares (PLS). The analysis results indicate that both continuance intention and habit play an important role in the actual use of MDSA. Moreover, the findings reveal that habit is a more prevalent predictor of actual use compared to conscious intention. It was found that user satisfaction, perceived monetary value, and variety of use serve as the antecedents of MDSA habit. The theoretical and policy implications of the findings are described.     

Behavioral assumptions and theory development: the case of transaction cost economics

From a critical realist perspective, I discuss the role played by behavioral assumptions in organization theories, and use transaction cost economics as an illustrative example. Core behavioral assumptions often constitute the foundation of the mechanismic explanations of a theory, and thus should play a pivotal role in theory development. I distinguish between assumption‐based and assumption‐omitted theory testing, and show that empirical research in transaction cost economics has been dominated by assumption‐omitted testing. To establish a solid foundation for a new theory, management researchers should pay more attention to assumption‐based testing. Copyright © 2006 John Wiley & Sons, Ltd.     

The welfare effects of mobile termination rate regulation in asymmetric oligopolies: The case of Spain

This paper examines the effects of mobile termination rate regulation in asymmetric oligopolies. It extends existing models of asymmetric duopoly and symmetric oligopoly where consumer expectations about market shares are passive. First, demand and product differentiation parameters are calibrated using detailed data from the Spanish market from 2010. Next, equilibrium outcomes and welfare effects under alternative scenarios of future termination rates are predicted. Lowering termination rates typically lowers profits of all networks and improves consumer and total surplus.     

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.     

The role of mobile network operators in next-generation public safety services

Field of researchThis research is in the field of public safety communications in mobile broadband 4G/5G networks. The focus is on mobile network operators and their business opportunities in the public safety market.PurposeThe purpose of this research is to provide a review of ongoing public safety mobile broadband projects in which mobile operators play a key role. In addition, a business model analysis is presented to determine the role of mobile operators in these projects. A comparison of the two key business models is also included to reveal their general characteristics.Methods and dataThe research used a qualitative method, an inductive case study. This method was used to draw general conclusions from a small number of case studies based on ongoing public safety mobile broadband projects. The Casadesus-Masanell and Ricart framework and the business model canvas were used to analyse and compare the two key business models discussed. Data were collected from a variety of sources, including company reports, press releases, international events and conferences, and selected interviews with managers in charge.FindingsThe results show that mobile operators have new business opportunities in the public safety market. Their existing mobile networks can be used for public safety services with certain enhancements. Within existing projects, mobile operators have different business models. The two analysed models were found to require different resources and offer different business opportunities for mobile operators. Procurement authorities responsible for selecting business models are encouraged to pay attention to the choice of model based on, for example, strategic objectives.ValueVery little research has been done on the business opportunities of mobile operators in the public safety market. In this area, this study lays the groundwork for new research. Procurement authorities can use the results when deciding on the business model. Mobile operators can benefit from these results by better understanding their own roles in public safety projects and when assessing the business opportunities of a particular project.     

Financial inclusion,mobile money,and individual welfare: The case of Burkina Faso

Access to financial services promotes investment and facilitates consumption smoothing by enhancing resource mobilization. Over 60 percent of Burkinabe adults are excluded from financial services by banks and other nonbank financial institutions, so mobile money is expected to bridge this gap. Accounting for the importance of financial inclusion with the rapid prevalence of mobile money, this paper assesses the effects of financial inclusion and mobile money use on an individual's nonmonetary welfare in Burkina Faso by applying matching methods. The results confirm the significant role of financial inclusion in alleviating poverty. More importantly, our analysis shows that once individuals access financial services through mobile money, such favorable effects on poverty alleviation become more substantial. Financial regulators in Burkina Faso should promote financial inclusion with mobile money to ensure the efficient enhancement of individual welfare with poverty reduction.     

COVID-19 and changes in content usage behavior: The case of South Korea

This study examines changes in content usage time due to the COVID-19 pandemic in South Korea using Korean Media Panel data for the period 2011–2020 and explores the reasons for these changes. This study focuses on four principal contents: television programs, movies/videos/user-created content, traditional telecommunication services, and chatting/messenger/social network services. The empirical results indicate an increase in usage time for the four principal contents, as well as total content usage time because of the pandemic. The results also show that average Korean people stayed longer at home after the onset of the pandemic, leading to an increase in the time spent on all the principal contents, except for traditional telecommunication services, as well as an increase in total content usage time. Furthermore, this study suggests that whereas the effect of the pandemic on television program viewing time was mainly attributable to changes in time spent at home because of the pandemic, the effect on other contents was mainly caused by non-location-related factors. This study predicts changes in content usage time after the end of the pandemic and provides strategic suggestions.     

The effects of M&As within the mobile ecosystem on the rival's shareholder value: The case of Google and Apple

As a result of the speed of information and communications technology convergence, the concept of the business ecosystem has been adopted for understanding the business value chain. Within the business ecosystem, keystones play a central role. Currently, Google and Apple are the keystones of the mobile ecosystem, and they have been quite active in acquiring firms over the past years. This study empirically examines the effects of these two firms’ mergers and acquisitions (M&As), especially the different effects on the acquirer and the rival depending on the type of target firm. After the target firms are classified according to the businesses of the acquiring firm that each target firm is related to, the study examines the effects of different types of M&As on the values of the acquirer, the rival, or both. The results provide a basis for understanding the complex relationship between two keystones within the mobile business ecosystem.     

Salesperson's innovation resistance and job satisfaction in intra-organizational diffusion of sales force automation technologies: The case of South Korea

One of the rapidly growing areas in industrial marketing is the application of sales force automation (SFA) technologies to help improve the efficiency of the sales force task. What is often overlooked is that there are some potential negative effects related to SFA technologies that arise when these innovations are forcefully adopted on the individual salesperson. This study empirically examines the psychological and social antecedents of salespeople's resistance toward SFA technologies in South Korea. Unlike previous studies that only looked at adoption, this studies adds to the literature on SFA technologies by looking at resistance toward innovation in the post-adoption or intra-organizational diffusion stage. This study looks at the direct and indirect relationships between innovation resistance and some key constructs such as job satisfaction, job performance, self-efficacy, group-efficacy, innovativeness, and peer usage. This study represents also one of the very few empirical studies conducted on sales force behavior in South Korea and as such may offer some insights on sales force management in collectivist cultures.     

Diversification strategies in network-based services: The case of mobile virtual network operators

This paper aims at discussing the entry process and competitive strategies of MVNOs in Italy and France. It illustrates the features of competition in a sector – the mobile telecom service industry – which is characterized by market saturation and demand heterogeneity. In doing so, it looks at the characteristics of the two countries in terms of competition and entry of new operators, at the motivations behind the entry of MVNOs, and at the performance of different companies. Results show that the most successful MVNOs are those characterized by the ability to find a perfect match between their core competencies (large network management, strong brand reputation) and the needs of specific segments of demand that had not been previously fulfilled. In this context, companies with ICT network management skills, whether coming from the telecom sector or from other network-based service industries such as postal operators, have been particularly successful in the market. From a policy perspective, despite the failure of some MVNOs, customers have benefited from the increased competition between MNOs and MVNOs in terms of range of service offerings and prices.     

Business model innovation and competitive imitation: The case of sponsor‐based business models

This paper provides the first formal model of business model innovation. Our analysis focuses on sponsor‐based business model innovations where a firm monetizes its product through sponsors rather than setting prices to its customer base. We analyze strategic interactions between an innovative entrant and an incumbent where the incumbent may imitate the entrant's business model innovation once it is revealed. The results suggest that an entrant needs to strategically choose whether to reveal its innovation by competing through the new business model, or conceal it by adopting a traditional business model. We also show that the value of business model innovation may be so substantial that an incumbent may prefer to compete in a duopoly rather than to remain a monopolist. Copyright © 2012 John Wiley & Sons, Ltd.