Assessment of Mobile ValueAdded Services MVAS

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Assessment of Mobile Value-Added Services (M-VAS)

• Yati Rodiati
• Student ID 0832771
• Module Engineering Project
• Supervisor Dr. Rebecca DeCoster
• MSc of Engineering Management
• BRUNEL UNIVERSITY

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Outline

• Research Aim Objectives
• M-VAS and Technology Adoption behind It
• M-VAS Business Model Strategies
• M-VAS Customer Value
• Case Study and Market Survey on M-VAS
• Conclusion and Future Work

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Research Aim

• The overall aim of this research is to examine
  the business potential of mobile value-added
  services (M-VAS) based on the principles of
  customer interaction and mass customization.

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Research Objectives

• To evaluate the importance of business modeling
  for emerging telecoms services.
• To determine the adoption of technologies and
  strategies behind M-VAS.
• To identify the elements those affect customer
  value during the adoption of M-VAS.

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What is Mobile VAS?

• In mobile telecommunication industry, VAS is
  defined as services that are
• not part of the basic voice offer.
• allow the mobile operators to develop another
  stream of revenue.
• (Source IAMAI and IMRB, 2006, p.15)

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M-VAS Categorizes
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The Technologies Adoption behind M-VAS

• The evolution of mobile telecommunication
  networks
• The evolution of mobile devices
• The convergence of mobile telecommunication
  networks and Internet

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Mobile Internet
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M-VAS Business Model(Value Chain Review)
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M-VAS Strategies
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Case Study Business Model of Caller Ring Back
Tone (CRBT) ServiceIndonesia

• After US and Japan, Indonesia is the biggest CRBT
  market in the world.
• (Source IFPI Digital Music Report, cited in Asia
  Pacific Digital Marketing Year Book 2008)

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Case Study of CRBT Business Model (contd)
(Service Fee and Revenue Sharing)

• The revenue generated from the service fees is
  split among players in the value chain.
• Most of the revenue goes to the mobile operator.

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Customer Value and Its Importancein M-VAS

• Value is described as a trade-off between
  overall benefits gained and sacrifices made by
  the customer
• (Olaru, Purchase and Peterson, 2008)
• Recent research on M-VAS has found that customer
  value significantly
• - impacts on consumers behavior intention and
  commitment (Pura, 2005)
• - influences on customer satisfaction, and then,
  on loyalty intention (Lim, Widdows, Park, 2006)

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M-VAS Customer Value

• Get Value Dimensions (Benefits)
• - Functionality value
• - Social value
• - Emotional value
• - Freedom of choice value
• - Epistemic value (curiosity/novelty)
• Give Value Dimensions (Sacrifices/Costs)
• - Monetary/price
• - Technical difficulties
• (Sigala (2006) and Pura (2005))

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Market Survey on M-VAS Customer
Value(Questionnaire)

• Questionnaire Topic
• Part 1
• User Profile, M-VAS Usage, and mobile Social
  Networking (10 questions)
• Part 2 Customer Values Measurement
• Get Value Dimensions (22 questions)
• Give Value Dimensions (7 questions)
• (get and give value questions were developed
  based on Pura and Sigalas framework)
• Questionnaire distribution via email
• Country Indonesia

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Survey Result onRespondents Profile

• Respondents gender 21 males and 13 females
• Age 76.5 are 25-34 years old
• Occupation government employees (17.6), private
  companies employees (41.2), engineers (38.2),
  and students (3)
• 82.5 use 3G mobile phone
• The use of mobile phone mainly refers to both
  personal/leisure and business purpose (75.6).

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Survey Result onM-VAS Usage

• 91.2 respondents are using M-VAS.
• Famous M-VAS mobile chat, internet browsing,
  CRBT, LBS, and m-banking.
• The most wanted or planned M-VAS to be purchased
  are mobile TV and video streaming.

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Survey Result onMobile Social Networking (SN)

• 94.2 join SN site (such as Facebook, Friendster,
  Linkedln, etc).
• 62.5 of them access SN via mobile phone.

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Discussion and Implications ofthe Survey
Findings (1)

• High usage of mobile chatting and mobile internet
  reveals that mobile operators have to keep
  offering their customers attractive price plans
  for mobile internet access.
• The customers high expectations on emerging
  services, such as mobile TV and video streaming,
  reveals that mobile operators still have to
  develop a viable business model for these
  services.

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Survey Result onM-VAS Customer Values Measurement

• The most important benefit perceived by the
  respondents is functionality value, followed by
  freedom of choice, curiosity, emotional, and then
  social value.
• Respondents perceive that the M-VAS are
  technically easy to use.
• In term of monetary cost, respondents perceive
  the additional costs that they have to pay for
  using M-VAS.

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Discussion and Implications ofthe Survey
Findings (2)

• Findings from this customer value measurements
  reveal that
• all of the customer value dimensions are
  important for customized mobile users
• customers can appreciate and are aware of the
  benefits and costs in using a mobile service.
• It means, the mobile operators must realize that
  the services that they create will only be
  accepted if they are delivering enhanced customer
  value in exchange for their perceived costs.

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Conclusions

• M-VAS is changing the role of most players across
  the telecom value chain, while also providing
  room for many new entrants, and requiring
  reconsideration of business model and
  partnership.
• From the findings of CRBT case study (by
  interviewing the companys VAS Senior Engineers),
  we have learnt
• - the M-VAS business model approached by the
  company in terms of its value chain, roles of
  its players, revenue sharing, and the service
  fees.
• - the partnership strategy implemented by the
  company in MVAS.
• In general, findings from market survey showed
  that customers perceive both get and give
  value dimensions. Specifically, for the
  customers, the most important get value is
  functionality value, and the least important is
  social value.

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Future Work

• Identify the 3G applications most suitable to be
  implemented in Indonesia based on customers
  behaviour and requirements
• Develop a mass customisation model for mobile
  Social Networking sites.

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References

• Text Books
• Paavilainen, J. (2002), Mobile Business Strategy
  Understanding the technologies and opportunities,
  Wireless Press, Great Britain.
• Sadeh, N. (2002), M-Commerce Technologies,
  Services, and Business Models, John Wiley Sons,
  Inc., Canada
• Journals
• Olaru, D., Purchase, S., Peterson, N. (2008),
  From customer value to repurchase intentions and
  recommendations, Journal of Business
  Industrial Marketing, Vol. 23, No. 8, pp. 554-565
  
• Pura, M., (2005), Linking preceived value and
  loyalty in location-based mobile services,
  Managing Service Quality, Vol. 15, No. 6, pp.
  509-538
• Sigala, M. (2006), Mass customization
  implementation models and customer value in
  mobile phone services (preliminary findings from
  Greece), Managing Service Quality, Vol. 16, No.
  4, pp. 395-420.
• Lim, H., Widdows, R., Park, J. (2006),
  M-loyalty winning strategy for mobile
  carriers, Journal of Consumer Marketing, Vol.
  23, No. 4, pp. 208218.

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References (contd)

• Other Free Resources (Internet Articles and White
  Paper)
• Asia Digital Marketing Association (ADMA), Asia
  Pacific Digital Marketing Year Book 2008,
  http//www.asiadma.com (accessed March 1, 2009)
• Internet and Mobile Association of India (IAMAI)
  and eTechnology Group_at_IMRB (2008), Mobile
  Value-Added Services in India, http//www.iamai.in
  (accessed February 28, 2009).
• Vodafone Mobile Internet, http//mobileinternetdem
  os.vodafone.co.uk/ (accessed March 7, 2009)
• UMTS Forum White Paper (October 2005), 3G/UMTS
  Towards mobile broadband and personal Internet,
  http//www.umts-forum.org (accessed Feb 24, 2009).

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Acknowledgments

• I am grateful to
• My supervisor, Dr. Rebecca DeCoster, for her
  helpful and outstanding guidance.
• Mr. Sumantri and Mr. Saptono, Senior VAS
  Engineers, Indonesia, for providing me with M-VAS
  data.