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SERVICE ADOPTION
Exploring mobile device user adoption patterns and
market segmentation.
The mobile phone is a multipurpose device. In addition to transmitting voice communication it can provide a number of other functions
and services. A good example of the differentiation from voice services
is the Short text Messages Service (SMS). Other examples of more
advanced use include mobile banking, taking and sharing pictures and
videos, and using the Internet. This transformation process is similar
to the evolution of computers: what originally was a number-crunching machine is now a multimedia information and communication
device.
During the last decade we have experienced the proclaimed failure of Wireless
Application Protocol (WAP), consecutive
revisions of third-generation (3G) mobile
technologys diffusion forecasts, and a
slow actual 3G uptake in Western markets. Consequently, both academics and
practitioners emphasize that technological
advances and service availability do not
automatically lead to widespread adop-
51
kept pace with mobile service revolutions occurring in other national settings such as Japan and
South Korea.
Vis--vis traditional diffusion-curve research,
which operates under the stringent assumptions of
an invariant unit of innovation and a definable
population of potential adopters [8, 10], the
mobile services market presents different scenarios
[5]. Multiple mobile services with different scaling
properties can be diffused as a result of the deployment of several devices and other services, thus
vivid reinvention can be present.
Diffusion of innovation theory seeks to explain
and predict the rate of adoption in a user population. Factors that have been found to influence
adoption rate include: adopter characteristics,
social networks, communication process, promoters strategies, and innovation attributes such as triability, relative advantage, compatibility,
observability, and complexity [8]. Additionally,
this theory is based on the assumption that an
innovation is superior to old products/services and
thus it will eventually replace them (similar to the
transition from the use of horses to tractors in
farming). Mobile services are different. Adoption
of a new mobile service does not automatically lead
to abandonment of the previous ones. Instead, new
mobile services are adopted in addition to existing
ones due to complementarities. Furthermore,
many mobile services are not valuable if used in
isolation due to network effects [6] (for example,
SMS is a service that only has value if others use it
too, but it represents little value to the first
adopters). However, for most innovations,
adopters can be classified into distinct categories
that relate to demographics. This enables technology providers to focus development and marketing
efforts on particular segments.
In this article, we utilize a reverse approach, and
use espoused behavior to identify groups that are
distinct, yet in the same dimension. We suggest it
is critical not only to identify core characteristics
among different adopter types in terms of their
degree of innovativeness, but also to determine
user categories based on their behavior and how
differences in technology and service use yield variations in their requirements and attitudes. We take
a learning perspective based on the assumptions
that: technology and service use is not completely
random but evolves over time as people learn and
technology matures; technology and service adoption requires and instantiates behavioral change in
incremental steps; technology and service requirements provide indications on behavioral change
52
The survey instrument included 43 questions organized in different categories including mobile services adoption diffusion and use, technology use, and demographics. The
sample consisted of 1,103 respondents that completed the survey. The survey instrument is available at the Mobiconomy Web site under Activities:
www.mobiconomy.dk.
2
Economist Intelligence Unit (EIU), The 2006 Rankings. A white paper from the
Economist Intelligence Unit (2006); http://graphics.eiu.com/files/ad_pdfs/
2006Ereadiness_Ranking_WP.pdf.
lize Multimedia Message Service (MMS) or new minutes. Writers and surfers send less than 20 SMS,
mobile services (such as those offered through while photographers send more than 20 SMS
mobile portals). Thus, mobile users can be broadly weekly. In addition, photographers use MMS occadivided into GPRS and non-GPRS subscribers. sionally, while the majority of surfers use it less than
These two groups can be
five times weekly. It
further distinguished in
seems that SMS remains
Talkers-adopters of voice services only
terms of mobile coma prominent communica4%
Writers-adopters of SMS in addition
6%
to voice
33%
munications
services
tion means and MMS has
use. The non-GPRS
not taken over yet. MorePhotographers-adopters of MMS
and camera-related services in addition
subscribers can be subdiover, proposed categoto voice and SMS
56%
vided into those using
rization is supported by
Surfers-adopters of GPRS data services
in addition to SMS, MMS and voice
only voice services and
the significant differences
those using SMS in
among groups on selfFigure 1. Categories of assessment of innovativeness, perceived usefulness,
addition to voice sermobile users according to the
vices. For the GPRSsurvey data. and intention to use mobile services (see Figure 2).
enabled subscribers, a
The most important perceived benefit from
similar distinction is made between one
group that fig
mobile
communications for all groups is improveConstantiou
1 (6/07)
uses only MMS but no other data-based services ment of personal relationships with peers. If we
and another group using such services in addition to combine this observation with findings on relatively
MMS. Both of the latter groups also use voice and low voice service and rather high SMS uses,
SMS. Accordingly, four
it appears the mobile
categories are delineated
device is perceived as a
Talkers Writers Photographers Surfers
(see Figure 1).
contact-enabling tool
Gender
male
82%
58%
59%
92%
female
18%
42%
41%
8%
Under the categorizathat allows connectivity
>50
42%
14%
9%
10%
tion scheme shown in Age
and communications
50-41
34%
16%
12%
7%
Figure 1, talkers have
anywhere and anytime.
40-31
18%
24%
27%
37%
30-20
5%
45%
49%
37%
taken one primary learnThis is also supported by
<20
0%
1%
3%
10%
ing step related to Education Primary &
the second most impor42%
34%
39%
27%
mobile communications
tant benefit, which is
Secondary
Tertiary
37%
36%
33%
27%
use, writers, photogservices make me accesQuaternary
21%
30%
29%
46%
raphers and surfers Occupation Private sector 53% 28%
sible anywhere and any33%
42%
Students
7%
43%
44%
34%
have experienced one,
time. Furthermore, the
Semi public or
40%
29%
23%
24%
two, and three addimonthly payment for
public sectors
tional transformations Monthly <3.500 ?
talkers and writers is less
19%
41%
38%
29%
30%
34%
in their behavior respec- Household 3.500 ?-8.000 ? 38% 31%
than 10 euros whereas
Income
> 8.000 ?
25%
15%
16%
25%
tively. Mobile users
for photographers and
No response
18%
13%
16%
12%
advance one step at a
surfers the range is
Table 1. Demographics of between 15 and 30 euros, while the main reason for
time and migration
mobile users.
evolves in stages.
choosing a mobile operator is low price.
table
1 (6/07)
MOBILE USERS PROFILE AND SERVICEConstantiou
USE
MOBILE
USERS DEVICE REQUIREMENTS
The demographics of the four categories are pre- Experience with mobile devices may affect adoption
sented in Table 1. Talkers are mainly middle-aged and use of specific services. There is significant difmen with at least a high school education, working ference in years of experience with mobile devices
in the private sector; writers and photographers are since talkers and surfers have more than six years,
mainly students; and surfers are mainly men in their whereas writers and photographers have less than six
early thirties working in the private sector.
years of experience. This result may relate to the
The proposed categorization is based on the use observation that the latter two groups mainly
of mobile communications services and we investi- include younger people (such as students). With
gate the groups behavior according to the survey respect to the current device used for both talkers
data. There is a significant difference in daily use of and writers is more than one but less than two years
voice services between the groups: for talkers and old, whereas for the other two groups less than one
writers it is less than five minutes, whereas for pho- year.
tographers and surfers it ranges between five and 10
Technology-service features of mobile devices
COMMUNICATIONS OF THE ACM June 2007/Vol. 50, No. 6
53
kept pace with mobile service revolutions occurring in other national settings such as Japan and
South Korea.
Vis--vis traditional diffusion-curve research,
which operates under the stringent assumptions of
an invariant unit of innovation and a definable
population of potential adopters [8, 10], the
mobile services market presents different scenarios
[5]. Multiple mobile services with different scaling
properties can be diffused as a result of the deployment of several devices and other services, thus
vivid reinvention can be present.
Diffusion of innovation theory seeks to explain
and predict the rate of adoption in a user population. Factors that have been found to influence
adoption rate include: adopter characteristics,
social networks, communication process, promoters strategies, and innovation attributes such as triability, relative advantage, compatibility,
observability, and complexity [8]. Additionally,
this theory is based on the assumption that an
innovation is superior to old products/services and
thus it will eventually replace them (similar to the
transition from the use of horses to tractors in
farming). Mobile services are different. Adoption
of a new mobile service does not automatically lead
to abandonment of the previous ones. Instead, new
mobile services are adopted in addition to existing
ones due to complementarities. Furthermore,
many mobile services are not valuable if used in
isolation due to network effects [6] (for example,
SMS is a service that only has value if others use it
too, but it represents little value to the first
adopters). However, for most innovations,
adopters can be classified into distinct categories
that relate to demographics. This enables technology providers to focus development and marketing
efforts on particular segments.
In this article, we utilize a reverse approach, and
use espoused behavior to identify groups that are
distinct, yet in the same dimension. We suggest it
is critical not only to identify core characteristics
among different adopter types in terms of their
degree of innovativeness, but also to determine
user categories based on their behavior and how
differences in technology and service use yield variations in their requirements and attitudes. We take
a learning perspective based on the assumptions
that: technology and service use is not completely
random but evolves over time as people learn and
technology matures; technology and service adoption requires and instantiates behavioral change in
incremental steps; technology and service requirements provide indications on behavioral change
52
The survey instrument included 43 questions organized in different categories including mobile services adoption diffusion and use, technology use, and demographics. The
sample consisted of 1,103 respondents that completed the survey. The survey instrument is available at the Mobiconomy Web site under Activities:
www.mobiconomy.dk.
2
Economist Intelligence Unit (EIU), The 2006 Rankings. A white paper from the
Economist Intelligence Unit (2006); http://graphics.eiu.com/files/ad_pdfs/
2006Ereadiness_Ranking_WP.pdf.
lize Multimedia Message Service (MMS) or new minutes. Writers and surfers send less than 20 SMS,
mobile services (such as those offered through while photographers send more than 20 SMS
mobile portals). Thus, mobile users can be broadly weekly. In addition, photographers use MMS occadivided into GPRS and non-GPRS subscribers. sionally, while the majority of surfers use it less than
These two groups can be
five times weekly. It
further distinguished in
seems that SMS remains
Talkers-adopters of voice services only
terms of mobile coma prominent communica4%
Writers-adopters of SMS in addition
6%
to voice
33%
munications
services
tion means and MMS has
use. The non-GPRS
not taken over yet. MorePhotographers-adopters of MMS
and camera-related services in addition
subscribers can be subdiover, proposed categoto voice and SMS
56%
vided into those using
rization is supported by
Surfers-adopters of GPRS data services
in addition to SMS, MMS and voice
only voice services and
the significant differences
those using SMS in
among groups on selfFigure 1. Categories of assessment of innovativeness, perceived usefulness,
addition to voice sermobile users according to the
vices. For the GPRSsurvey data. and intention to use mobile services (see Figure 2).
enabled subscribers, a
The most important perceived benefit from
similar distinction is made between one
group that fig
mobile
communications for all groups is improveConstantiou
1 (6/07)
uses only MMS but no other data-based services ment of personal relationships with peers. If we
and another group using such services in addition to combine this observation with findings on relatively
MMS. Both of the latter groups also use voice and low voice service and rather high SMS uses,
SMS. Accordingly, four
it appears the mobile
categories are delineated
device is perceived as a
Talkers Writers Photographers Surfers
(see Figure 1).
contact-enabling tool
Gender
male
82%
58%
59%
92%
female
18%
42%
41%
8%
Under the categorizathat allows connectivity
>50
42%
14%
9%
10%
tion scheme shown in Age
and communications
50-41
34%
16%
12%
7%
Figure 1, talkers have
anywhere and anytime.
40-31
18%
24%
27%
37%
30-20
5%
45%
49%
37%
taken one primary learnThis is also supported by
<20
0%
1%
3%
10%
ing step related to Education Primary &
the second most impor42%
34%
39%
27%
mobile communications
tant benefit, which is
Secondary
Tertiary
37%
36%
33%
27%
use, writers, photogservices make me accesQuaternary
21%
30%
29%
46%
raphers and surfers Occupation Private sector 53% 28%
sible anywhere and any33%
42%
Students
7%
43%
44%
34%
have experienced one,
time. Furthermore, the
Semi public or
40%
29%
23%
24%
two, and three addimonthly payment for
public sectors
tional transformations Monthly <3.500 ?
talkers and writers is less
19%
41%
38%
29%
30%
34%
in their behavior respec- Household 3.500 ?-8.000 ? 38% 31%
than 10 euros whereas
Income
> 8.000 ?
25%
15%
16%
25%
tively. Mobile users
for photographers and
No response
18%
13%
16%
12%
advance one step at a
surfers the range is
Table 1. Demographics of between 15 and 30 euros, while the main reason for
time and migration
mobile users.
evolves in stages.
choosing a mobile operator is low price.
table
1 (6/07)
MOBILE USERS PROFILE AND SERVICEConstantiou
USE
MOBILE
USERS DEVICE REQUIREMENTS
The demographics of the four categories are pre- Experience with mobile devices may affect adoption
sented in Table 1. Talkers are mainly middle-aged and use of specific services. There is significant difmen with at least a high school education, working ference in years of experience with mobile devices
in the private sector; writers and photographers are since talkers and surfers have more than six years,
mainly students; and surfers are mainly men in their whereas writers and photographers have less than six
early thirties working in the private sector.
years of experience. This result may relate to the
The proposed categorization is based on the use observation that the latter two groups mainly
of mobile communications services and we investi- include younger people (such as students). With
gate the groups behavior according to the survey respect to the current device used for both talkers
data. There is a significant difference in daily use of and writers is more than one but less than two years
voice services between the groups: for talkers and old, whereas for the other two groups less than one
writers it is less than five minutes, whereas for pho- year.
tographers and surfers it ranges between five and 10
Technology-service features of mobile devices
COMMUNICATIONS OF THE ACM June 2007/Vol. 50, No. 6
53
55
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