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Debriefing
Debriefing
Debriefing
Debriefing
Debriefing
Debriefing
Debriefing
Debriefing
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Debriefing
Debriefing
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Debriefing

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  • 1. International Marketing « Mobile Phones in the European Union » November 2009
  • 2. The theory behind: TAM (Technology Acceptance Model)
    • A considerable body of scientific literature in Marketing and IT/MIS
    • Key variables: Perceived usefulness & perceived ease-of-use
    • Other variables: perceived behavioral control, perceived risk, demographics (age, gender)
    • (1) Perceived ease of use => a number of your arguments
    • (2) Perceived usefulness of 3G ???? Are the features really perceived as ‘useful’ (especially when price is considered)
    • (3) Perceived risk: electromagnetic waves near to the ear may cause brain tumors, a sensitive topic that is still undecided in terms of medical evidence+activities that require a continuous attention (ex.: driving)
    • (4) Perceived behavioral control and circumstance of mobile phone use (car, restaurant, classroom, train, church etc.)
    • Suggestion: increase (1), (2), and (4); decrease (3)
    • Segmentation according to demographics (age, gender) + business users vs. non-business
  • 3. Mobile operators (MO), handset producers (HP) and software developers (SD): a « supply chain »
    • B2B relation between MO and SD is price driven and competitive
    • Software developers need hardware developers (HP) and may not optimize the functionality of 3G applications for final users because MO are keen to sell minutes or MegaBytes of information transmission
    • The supply chain does not work per se . It is the MO responsibility to make it work with other actors having the real technical solutions
  • 4. Q1. How can mobile operators, software designers, and handset producers inspire Europeans to use their mobile phones for longer lengths of time and for more applications?
    • Mobile operators
      • Price / Tariffs / Special offers
        • Cheap flat-rate fees for teens/persons in their twenties
        • Personalized/Attractive contracts and tariffs
        • Free trial applications
        • Try to change people’s habits to make them consume more (free SMS during one month, then they will get used to it)
        • Free favorites numbers
        • Free/Cheap calls when calling somebody that has the same operator
        • Larger offer of subscriptions (SMS/MMS, downloads, calls, e-mails, etc.)
      • Content
        • Create fidelity program (points that you can collect)
        • Create community (ex.: Swisscom Youth Zone)
        • Updated and diversified information on the portal
      • Additional technological features
        • Partnership with Zattoo (program to watch television on internet) for live TV
        • Use mobile phone as a credit card (operators will then get a commission)
        • Dense signal coverage
  • 5. Q1. How can mobile operators, software designers, and handset producers inspire Europeans to use their mobile phones for longer lengths of time and for more applications?
    • Software designers
      • Applications which make life quicker and easier
        • Web browsers
        • News/Weather forecasts
        • GPS/Navigation software
        • Instant Messaging/Blogging (Skype, Windows Live Messenger, Facebook…)
        • Language software to improve your vocabulary or spelling
        • Bank transactions
        • Ticket purchases and payment options
      • Entertainment options
        • Games
        • Sound and video player (live TV)
        • Sport software that measures your steps and your pulse
        • Decorative capabilities (ex.: personal logo and celebrity photographs)
      • Technological characteristics
        • Performing operating systems
        • User-friendly download interface
        • Large choice of applications
        • Access to secure networks
        • Create softwares that are not so demanding for the battery
  • 6. Q1. How can mobile operators, software designers, and handset producers inspire Europeans to use their mobile phones for longer lengths of time and for more applications?
    • Handset producers
      • Hardware characteristics
        • Longer battery life/better battery quality
        • Larger storing memory
        • Photo and video camera (including video-conference)
      • Handset Design
        • Touchscreen
        • Customized design (color, shape, covers…) like DELL for PCs
        • High-Tech design
        • Very easy-to-use phones with big buttons and a bigger screen for elder people
        • Suitable/Ergonomic shape
      • Compatibility with other devices
        • Bluetooth headsets and car kits
        • Computer port and datacard for notebook PCs
      • Other features
        • Longer warranty
        • GPS/navigation hardware
  • 7. Q1. How can mobile operators, software designers, and handset producers inspire Europeans to use their mobile phones for longer lengths of time and for more applications?
    • Segmentation: business users (Intranet access, GPS, etc.) / leisure users / young people (design, pictures downloading, music downloading, etc.)
    • Specifically target and limit applications at specific price to avoid overpricing (especially for youth targets)
    • Handset design factors and software capabilities should most likely be combined with price incentives
    • => Do users really want multi-function phones or do they prefer specialized phones (with specific applications)?
    • Do they want a mobile phone or a full communication tool?
  • 8. Q2. Using the cultural differences highlighted in the case, outline a 2G strategy targeted to one northern and one southern European country, that will explicitly take these differences into account
    • Countries chosen:
      • South: Italy (16x), Spain (1x), Portugal (1x)
      • North: Netherlands (9x), Sweden (3x), Germany (3x), Norway (1x), Denmark (1x), UK (1x)
    • Cultural Differences:
      • South: Polychronism, Collectivism, Masculinity, Being, Externalization, Language (needs more words), Changes (like to have some changes), Value of money (Call costs don’t have that much importance)
      • North: Monochronism, Individualism, Feminity, Doing, Neutralization, Language (direct), Changes (don’t like changes), Value of money (don’t like to spend too much money for phone calls)
    • Other differences: climate, local regulations, symbols, religion, history…
  • 9. Some theory: Looking at (real) cultural differences
    • Start from the surface before digging deeper: look first at a consumption behavior and its context in as great detail as possible
      • Freedom dimension
      • Pleasure of talking (i.e. oral culture favoring speaking over writing)
      • Being reachable / (permanent) social connection
      • Possibly disturbing others (proxemics, Hall)
      • Sensitivity to perceived risk (health issues)
    • Meaningful differences: communication patterns, individualism-collectivism, language, time orientations (monochronic/polychronic), orientation to others
    • Communication patterns differ across Southern and Northern Europe
    • Individualism does not significantly differ
    • Time orientations differ
  • 10. Findings from Valette-Florence, Ferrandi, and Usunier (2001) about differences in time orientation between France and Germany, and their influence on use of mobile phone Mobile phones involve daily routines in reference to chronological time (Newtonian time), saves time (economic time), and enables immediate voice communication in order to relate to others (unorganized-time). Using a mobile phone allows the individual to manage activities instantaneously, much like a polychronic use of time. An initial qualitative survey was set up in order to determine the main components of mobile communication behaviour through a focus group of twenty French mobile phone users. Three main dimensions appeared to be relevant for users: freedom, contact with other people, and instantaneous behaviour. Interestingly, these dimensions are located on different levels. Freedom is a means-end interpretation of a value, contact with other people a social benefit, and instantaneous behaviour a functional benefit. Seven items were generated in order to capture these three dimensions [1] of the mobile communication attitude. In France, two time styles dimensions, economic time (.295) and tenacity (-.229) had an influence on the general mobile communication attitude. The link between economicity and mobile communication attitude suggested that the French associate the use of a mobile phone with the capacity to organize their own lives and to save time. The French have been described as intellectually monochronic but behaviourally polychronic (Hall, 1983). Monochronism is more associated to tenacity than polychronism, explaining why tenacity in the French time style is negatively associated with the overall mobile communication attitude. In Germany, preference for quick return (.346) and non-organized time (.313) were found to have a significant influence on the overall mobile communication attitude.
  • 11. The positive link between preference for quick return and mobile communication attitude suggested that Germans associate the use of a mobile phone with instantaneous behaviour. The positive relationship between non-organized time and mobile communication indicate that mobile communication is also associated with flexible time and instantaneous behaviour. The Germans, traditionally described as being monochronic and valuing organized time, paradoxically associate a positive attitude to mobile communication to free and spontaneous behaviour. These findings indicate that consumers are not sensitive to the same product benefits, depending on country and time style. French consumers mostly value the economicity aspect of using a mobile (saving time). The Germans put more value on mobile communication to get immediate gratification and to create space in their lives for unorganized time. [1] Jöreskog’s Rhô (reliability indicator) is .96 for Instantaneous behavior (2 items), .98 for Freedom (3 items) and .96 for Contact with other people (.96).
  • 12. Q2. Using the cultural differences highlighted in the case, outline a 2G strategy targeted to one northern and one southern European country, that will explicitly take these differences into account
    • Prices differences:
      • South: monthly subscription that contains unlimited calls
      • North: many offers with unlimited SMS
    • Handset design:
      • South: high-Tech, fashion, entertainment
      • North: big keyboards, high quality, neutral design
    • Use of mobile phones
      • South: everywhere, to keep in touch, own several subscriptions
      • North: often banned in public places, economical way of calling, concerned about electromagnetic waves, business use
    • Strategy:
      • South: free SMS for each call made, advantageous price for family numbers (“family-packages”), limited series phones (“Prada” or “Gucci”), picture of the person calling+developp MMS services, create flashy phones
      • North: try to make people call (offering them free numbers to dials to change their habits), give free minutes, improve agenda/organizer in the phone, insist on security
  • 13. Q2. Using the cultural differences highlighted in the case, outline a 2G strategy targeted to one northern and one southern European country, that will explicitly take these differences into account
    • Competitive environment different in each country
    • Users segmentation: business users, leisure users, young users is rather culture-free
    • Some segments are likely to be rather transnational (e.g. young users) and relatively culture-free
    • Motivations for acquiring a mobile phone differ according local circumstances (safety for women)
  • 14. Q3. Taking the case of mobile operator Orange, what would you advise as a pan-European 3G strategy?
    • The context: high prices for UMTS licenses (3G) + costly investment in new equipment have caused difficulties for the mobile phone industry in Europe
    • Robins’ (2003) recommendations: Market segmentation (business users vs. leisure users, desired content for each segment), recreational services, regularly add content, games, weather forecast, secured transaction mode
    • Price reductions
    • Education of the consumers (not easy)
      • Addiction factor: once a customer uses 3G services, he quickly becomes addicted
    • Improvement of the services, high-speed connections
    • Regularly add new content
    • Advertisement (with the risk of investing for other brands)
    • Roaming: attractive price from foreign countries (EU)
    • Compatibility between countries (3G standards)
    • => Standardized package with local adaptation

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