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Consumer loyalty versus propensity to switch between providers in mature IT markets (the case of mobile phone market)

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conference contribution
posted on 2005-01-01, 00:00 authored by G Kazakevitch, Lioubov Torlina, S Hendricks
The example of the youth mobile phone market is used for pilot empirical testing of a model of consumers’ decision making, based on common features of consumer behaviour in mature markets of information and high technology products. Firstly, we discuss the key properties of mature high technology markets which affect market behaviour and strategies. These properties include: established customer and provider bases; the elements of both oligopolistic and monopolistic competition; very short product life cycle; considerable product differentiation; and using product quality, versioning and price discrimination as planning and marketing tools. Secondly, a model of consumers’ decision making in such markets is suggested on the assumption that a choice is to be made between the following options: to continue using the existing version of the product, to upgrade it with the current provider or to switch to another provider. Product price, quality characteristics, switching costs and network effects are demonstrated to be the variables affecting consumers’ decisions and therefore, these variables should be considered by competing providers when they choose production and marketing strategies. In conclusion, the results of the empirical study are discussed in the context of their possible application to other information and high technology markets.

History

Event

Pacific Asia Conference on Information Systems (9th : 2005 : Bangkok, Thailand)

Pagination

838 - 851

Publisher

University of Hong Kong

Location

Bangkok, Thailand

Place of publication

Hong Kong

Start date

2005-07-07

End date

2005-07-10

ISBN-13

9789889855437

ISBN-10

9889855437

Language

eng

Publication classification

E1 Full written paper - refereed

Copyright notice

2005, PACIS

Title of proceedings

Proceedings of the Ninth Pacific Asia Conference on Information Systems

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