Heikki Karjaluoto Jari Karvonen Manne Kesti Timo Koivumäki Marjukka Manninen Jukka Pakola Annu Ristola Jari Salo
ABSTRACT. Mobile phone markets are one of the most turbulent market environments today due to increased competition and change. Thus, it is of growing concern to look at consumer buying decision process and cast light on the factors that finally determine consumer choices between different mobile phone brands. On this basis, this article deals with consumers’ choice criteria in mobile phone markets by studying factors that
Heikki Karjaluoto is Research Professor in Marketing; Jari Karvonen is Researcher in Marketing; Manne Kesti is Researcher in Marketing; Timo Koivumäki is Professor in Marketing; Marjukka Manninen is Researcher in Economics; Jukka Pakola is Researcher in Economics; Annu Ristola is Researcher in Marketing; and Jari Salo is Researcher in Marketing, all at the University of Oulu, Faculty of Economics and Business Administration, Finland. Address correspondence to: Heikki Karjaluoto, Faculty of Economics and Business Administration, Department of Marketing, P.O. Box 4600, FIN-90014 University of Oulu, Finland (E-mail: heikki.karjaluoto@oulu.fi). The financial support of the National Technology Agency of Finland is gratefully acknowledged. The authors also wish to thank all the study participants. Journal of Euromarketing, Vol. 14(3) 2005 http://www.haworthpress.com/web/JEM 2005 by The Haworth Press, Inc. All rights reserved. Digital Object Identifier: 10.1300/J037v14n03_04
59
60
JOURNAL OF EUROMARKETING
influence intention to acquire new mobile phones on one hand and factors that influence on mobile phone change on the other. With the use of a series of focus group interviews (Study 1) with 79 graduate students followed by a survey (Study 2) of 196 respondents, it was found that although the choice of a mobile phone is a subjective choice situation, there
References: Alba, J.W., and Hutchinson, J.W. (2000). Knowledge calibration: What consumers know and what they think they know. Journal of Consumer Research, 27 (September), 123-156. Alkio, J. (2004). Suomi on kännykkäkaupan kummajainen [Finland is the oddity of mobile phone commerce]. Helsingin Sanomat, B3 (March). Assael, H. (1995). Consumer Behavior and Marketing Action. 5th ed. Cincinnati, Ohio: ITP, South-Western College Publishing. Batra, R. and Ahtola, O.T. (1990). Measuring the hedonic and utilitarian sources of consumer attitudes. Marketing Letters, 2 (2), 159-170. Beatty, S.E. and Smith, S.M. (1987). External search effort: An investigation across several product categories. Journal of Consumer Research, 14 (1), 83-95. Benady, D. (2002). As simple as one-two-3G. Marketing Week, 26-29. Bockenholt, U. and Dillon, W.R. (2000). Inferring latent brand dependencies. Journal of Marketing Research, 37 (1), 72-87. Bristol, T., and Edward, F. (1996). Exploring the atmosphere created by focus group interviews: Comparing consumers’ feelings across qualitative techniques. Journal of the Market Research Society, 38 (2), 185-195. Brown, J.S. (1991). Research that reinvents the corporation. Harvard Business Review, 69 (January/February), 102-111. Chernev, A. (2003). When more is less and less is more: The role of ideal point availability and assortment in consumer choice. Journal of Consumer Research, 30 (2), 170-183. Chintagunta, P.K. (1999). Variety seeking, purchase timing, and the “lightning bolt” brand choice model. Management Science, 45 (4), 486-498. Coupey, E., Irwin, J.R. and Payne, J.W. (1998). Product category familiarity and preference construction. Journal of Consumer Research, 24 (4), 459-468. Dhar, R. and Wertenbroch, K. (2000). Consumer choice between hedonic and utilitarian goods. Journal of Marketing Research, 37 (1), 60-71. Dhar, R., Nowlis, S.M. and Sherman, S.J. (2000). Trying hard or hardly trying: An analysis of context effects in choice. Journal of Consumer Psychology, 9 (4), 189-200. Dorsch, M.J., Grove, S.J. and Darden, W.R. (2000). Consumer intentions to use a service category. Journal of Services Marketing, 14 (2), 92-117. Drucker, E. (2004). Perceived speed key to 3G success. 3G’s commercial success depends on carriers’ ability to deliver coverage and account for channel loading. Wireless Week, (February), available at: http://www.wirelessweek.com/article/ CA381643 Enpocket (2004). Enpocket mobile media monitor (UK). Research Report, (February). Fitzsimons, G.J., Hutchinson, J.W., Williams, P., Alba, J.W., Chartrand, T.L., Huber, J., Kardes, F.R., Menon, G., Raghubir, P., Russo, J.E., Shiv, B. and Tavassoli, N.T. (2002). Non-conscious influences on consumer choice. Marketing Letters, 13 (3), 269-279. Gartner Dataquest (2004). Mobile phone sales expected to reach 560 million in 2004. Research Report. Karjaluoto et al. 81 Gerstheimer, O. and Lupp, C. (2004). Needs versus technology–The challenge to design third-generation mobile applications. Journal of Business Research, 57 (12) December, 1409-1415. Hamel, G. and Prahalad, C.K. (1991). Corporate imagination and expeditionary marketing. Harvard Business Review, 69 (4), 81-92. Hansen, L. (2003). Service layer essential for future success. Ericsson Mobility World, General article, (June), available at: http://www.ericsson.com/mobilityworld/sub/ articles/other_articles/nl03jun05 In-Stat/MDR (2002). The worldwide PDA market: The next generation of mobile computing. Research Report, (September). Jones, S. (2002). 3G launch strategies, early adopters, why & how to make them yours. Tarifica Report, (October). Karjaluoto, H., Karvonen, J., Pakola, J., Pietilä, M., Salo, J. and Svento, R. (2003a). Exploring consumer motives in mobile phone industry: An investigation of Finnish mobile phone users. Proceedings of the 1st International Conference on Business Economics, Management, and Marketing (Athens, Greece), 3, 335-342. Karjaluoto, H., Pakola, J., Pietilä, M. and Svento, R. (2003b). An exploratory study on antecedents and consequences of mobile phone usage in Finland. Proceedings of the AMA Summer Marketing Educators’ Conference (Chicago, USA), 14, 170-178. Kivetz, R. and Simonson, I. (2000). The effects of incomplete information on consumer choice. Journal of Marketing Research, 37 (4), 427-448. Kumar, N. (1997). The revolution in retailing: From market driven to market driving. Long Range Planning, 30 (6), 830-835. Laroche, M., Kim, C. and Matsui, T. (2003). Which decision heuristics are used in consideration set formation. Journal of Consumer Marketing, 20 (3), 192-209. Liu, C.M. (2002). The effects of promotional activities on brand decision in the cellular telephone industry. The Journal of Product & Brand Management, 11 (1), 42-51. Malhorta, N.K. (2002). Basic Marketing Research. (1st ed.). NJ: Prentice-Hall. McDaniel, C. and Gates, R. (2001). Marketing Research Essentials. (3rd ed.). Ohio: South-Western College Publishing. Morgan, D. (1996). Focus groups. Annual Review of Sociology, 22, 129-152. Morgan, D.L. (1990). Focus Groups as Qualitative Research. Newbury Park, CA: Sage Publications. Moorthy, S., Ratchford, B. and Talukdar, D. (1997). Consumer information search revisited. Journal of Consumer Research, 23 (4), 263-277. Nagel, A. (2003). Beyond Knut Holt’s Fusion model, balancing market pull and technology push. International Journal of Technology Management, 25 (6-7), 614-622. Nokia (2004). Nokia closes 2003 with excellent fourth quarter. Press Release 2004, (January), available at: http://press.nokia.com/PR/200401/931562_5.html Nykänen, P. (2002). Nokia’s market share in Finland 80 percent. Kauppalehti Online, 31, (October), available at: http://www.kauppalehti.fi/sis/etusivu/435110.shtml O’Keefe, M. (2004). 2004 worldwide camera phone and photo messaging forecast. InfoTrends Research Group, Inc. Research Report. Papatla, P., Zahedi, F.M. and Zekic-Susac, M. (2002). Leveraging the strengths of choice models and neural networks: A multiproduct comparative analysis. Decision Sciences, 33 (3), 433-468. 82 JOURNAL OF EUROMARKETING Poropudas, T. (2003). Yli puolet puhelimista värinäyttöisiä [Over half of phones with color display]. Digitoday.fi, (December). Riquelme, H. (2001). Do consumers know what they want? Journal of Consumer Marketing, 18 (5), 437-448. Sehovic, A. (2003). The whole world in 3G: The right choice . . . GSMBOX, Ltd., Mobile News, Third Generation, available at: http://uk.gsmbox.com/news/mobile_news/all/ 95639.gsmbox Sehovic, A. (2004). The end of the beginning? GSMBOX, Ltd., Mobile News, Third Generation, available at: http://uk.gsmbox.com/news/mobile_news/all/97957.gsmbox Slawsby, A. and Chute, C. (2003). Moving pictures 2003: worldwide camera phone survey, forecast, and analysis, 2003-2007. IDC Group Research Report. Slawsby, A., Leibovitch, A.M. and Giusto, R. (2003). Worldwide mobile phone forecast and analysis, 2003-2007. IDC Group Research Report. Slovic, P. (1995). The construction of preference. American Psychologist, 50 (August), 364-371. Solomon, M.R. (2001). Consumer Behaviour. Buying, Having, and Being. 5th ed. NJ: Prentice-Hall. Spier, D. (1996). Direct marketers say “yes” to focus groups. Marketing News, 30 (6), 6. Strategy Analytics (2003). Global handset market: Enabling technologies forecasts, 2003-2008. Research Report, (June). Swait, J. and Adamowicz, W. (2001). The influence of task complexity on consumer choice: A latent class model of decision strategy switching. Journal of Consumer Research, 28 (1), 135-148. Threlfall, K.D. (1995). Using focus groups as a consumer research tool. Journal of Marketing Practice: Applied Marketing Science, 5 (4), 102-105. Thomas, J.W. (1998). Finding unspoken reasons for consumers’ choices. Marketing News, 32 (12), 10-11. Wilska, T-A. (2003). Mobile phone use as part of young people’s consumption styles. Journal of Consumer Policy, 26 (4), 441-463. Submitted: May 2004 First Revision: June 2004 Second Revision: September 2004 Accepted: November 2004