An exploratory study of the relationships between mobile data services business models and customer value

Abstract

A model integrating mobile data service providers’ business models decisions with end-users’ perception of customer value is presented and empirically tested. Business model decisions affect the extrinsic and intrinsic attributes of services, and end-users’ assessments of these attributes contribute to perceived customer value. The model is tested investigating six services believed to vary systematically in extrinsic and intrinsic attributes. A supply side and six demand side surveys are reported. The results show that the strongest contributor to end-users’ perceived value is the mobile specificity of the providers’ value proposition. Mobile specificity contributes to value through perceived service usefulness, quality and innovativeness. The results also show that end-users are limited in their ability to assess the value of network size and complementary service variety. THE ECONOMICS OF TELECOMMUNICATIONS This report is one of a series of papers and reports on telecommunication economics published by the Institute for Research in Economics and Business Administration (SNF) as part of its telecommunication economics program. The main focus of the research program is to study the deregulation process of the telecommunication industry, and the economic and organizational consequences of changes in markets, technology and regulation. Being started in 1992, the program is now in its fourth period ending in 2005/2006. The program is financed by Telenor AS.