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

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.

Testing the circumplex model of emotions in a consumer setting

There is widespread belief that more positive emotional reactions to consumption situations will lead to positive business outcomes such as increased market share through the combination of increased loyalty, repeat purchase and strengthened reputation. However, most of the psychological work on emotions has not dealt directly with consumption experiences, but rather broader everyday experiences. In this study, psychological models of emotion were tested using magazine subscribers, specifically looking at their emotional responses to the magazine and the overall subscription package. The aim was to determine whether one of the major theories on emotional structure, the circumplex model, is relevant and consistent when applied specifically to a consumption experience. The results are positive, with the model being supported, and they provide insight into the structure and relations of different emotional responses (e.g., satisfaction, delight) consumers might have to a consumption experience.

Consumer behaviour

The third edition of this Australian text continues to convey the essence of consumer behaviour and to connect psychological, socio- cultural and decision making aspects of the discipline. While the book is based on the American edition of Schiffman, it has been heavily adapted to suit the Australian market.

Consumer behaviour : an Asia Pacific approach

Applies behavioural science concepts to the understanding of the activities of individuals in the marketplace. It contains diverse and balanced coverage of consumer behaviour research in theory and application.

Consumer responses to free service trial offers

Consumers find it difficult to evaluate services they have not previously used, especially where these services have high experience or credence properties (Mittal 2002, 2004). A frequent promotional strategy used by marketers is to offer a free trial, such as a free brake check on cars or a free session at a new gym. While there is extensive literature on product trials, very little research has been conducted on free service trial offers. This led the researchers to undertake preliminary content analysis and qualitative interviews and ultimately to develop a comprehensive model of consumer evaluations of these offers. The model takes account of the type of service on offer, the manner in which it is offered and the pricing mechanism used (free versus discounted). It also characterizes the cognitive and emotional evaluations consumers make in response to these offers and how these contribute to trial and purchase propensity. Individual characteristics of consumers, such as deal proneness, were also incorporated into the model. The current study reports an experiment where the model was systematically tested among groups of male and female consumers (in total 400) who varied by age group and service experience. The research indicated that a free trial offer operated rather differently from a discount, inducing a sense of obligation which motivated some people to adopt the trial and subsequent full service offer. Traditional trial-cognition-evaluation models (e.g. Smith and Swinyard, 1983) are not sufficient to explain the phenomena uncovered by this research.