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Who wants 4G? Talk at BCS on 10 October 2013
 

Who wants 4G? Talk at BCS on 10 October 2013

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This was a talk for the members of the Chartered Institute for IT. In this talk, we put technology to the side and focus, instead, on the social and psychological needs of mobile phone users.

This was a talk for the members of the Chartered Institute for IT. In this talk, we put technology to the side and focus, instead, on the social and psychological needs of mobile phone users.

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Who wants 4G? Talk at BCS on 10 October 2013 Who wants 4G? Talk at BCS on 10 October 2013 Presentation Transcript

  • BCS OXFORDSHIRE 10.10.13 Who wants 4G? Dr. Ana Isabel Canhoto Oxford Brookes University www.anacanhoto.com @canhoto © Ana Isabel Canhoto 2013
  • • Oxford Times… xxx 2© Ana Isabel Canhoto 2013
  • • Oxford Times… xxx 3© Ana Isabel Canhoto 2013
  • “Set to revolutionise the way business people operate (…) incredibly quick to send and receive emails, download files and video call on the move (…) Streaming HD clips and uploading and downloading massive files, will be all in a day‟s work.” Source: Gill Oliver for Oxford Mail Benefits for Business Users 4© Ana Isabel Canhoto 2013
  • “While you are waiting for something, you are stood at the bus stop, you are at the dentist in the waiting room, you can watch a (football) game live now on 4G and people will flock to that” Source: Guy Laurence, chief executive of Vodafone UK Benefits for Residential Users 5© Ana Isabel Canhoto 2013
  • So, who wants 4G? 6© Ana Isabel Canhoto 2013
  • 7© Ana Isabel Canhoto 2013
  • Value = Benefits – Costs If Benefits > Costs => Value > 0 => Buy Consumption decision 8© Ana Isabel Canhoto 2013
  • Costs 9© Ana Isabel Canhoto 2013 • Handsets • Subscription “I found 4G to be pretty decent with EE but ultimately I missed my unlimited T-mobile data and switched back.” • Usage “On the whole it drained my battery faster and I was rapidly going through my 2Gb allowance.”
  • Benefits 10© Ana Isabel Canhoto 2013
  • Benefits 11© Ana Isabel Canhoto 2013
  • Benefits – The 3G case 12© Ana Isabel Canhoto 2013
  • Roger’s framework for diffusion 13© Ana Isabel Canhoto 2013 • Degree to which the innovation is perceived to be better than the idea it supersedes Relative Advantage • Degree to which the innovation is perceived to be consistent with existing valuesCompatiblity • Degree to which the innovation is perceived to be difficult to understand and useComplexity • Degree to which the innovation may be experimented withTriability • Degree to which the results of the innovation are visible to othersObservability
  • Case study: telephone adoption 14© Ana Isabel Canhoto 2013 “The Americans have need of the telephone, but we do not. We have plenty of messenger boys.” – Sir William Preece, Chief Engineer, British Post Office, 1878 “This telephone has too many shortcomings to be considered as a means of communication. The device is of inherently no value to us.” – Western Union internal memo, 1876
  • Case study: telephone adoption 15© Ana Isabel Canhoto 2013 • Installation and usage fees were high • Limited reach: geography and „No one to call‟ Relative Advantage • „Supernatural‟ nature of technology • Telegraph provided a permanent „hard copy‟ of a client/loved one‟s words Compatiblity • A mixed bag- some concerns that would hamper adoptionComplexity • Limited to rich peopleTriability • A strong factor, wires depicting presence of productObservability
  • Case study: 3G adoption 16© Ana Isabel Canhoto 2013 • Required new handsets • Text is good enough • Expensive data access (PAYG was most popular option) Relative Advantage • Stay connected, be productive, be entertained • But „who wants to see the other person‟s face?‟ or „Why would I want to have a camera with me all the time?‟ Compatiblity • How could I type the www address on such a tiny screen?Complexity • Limited – had to purchase phoneTriability • Distinctive handsets • Distinctive usage behaviourObservability
  • • 3G auction in UK raised 2.5% of GNP Benefits – The 3G case 17© Ana Isabel Canhoto 2013
  • Benefits – The 3G case 18© Ana Isabel Canhoto 2013
  • Case study: 3G adoption 19© Ana Isabel Canhoto 2013 • Everything that a normal phone does and more • 1 device to perform the functions of 3 or more • Clumsy screen + keyboard Relative Advantage • In line with main use of phones and progression towards digitalCompatiblity • Better UX and interfacesComplexity • Limited – had to purchase phoneTriability • Distinctive handsets • Distinctive usage behaviourObservability
  • Case study: 3G adoption 20© Ana Isabel Canhoto 2013 • Everything that a normal phone does and more • 1 device to perform the functions of 3 or more • Clumsy screen + keyboard Relative Advantage • In line with main use of phones and progression towards digitalCompatiblity • Better UX and interfacesComplexity • Limited – had to purchase phoneTriability • Distinctive handsets • Distinctive usage behaviourObservability
  • Roger’s framework – 4G 21© Ana Isabel Canhoto 2013 Relative Advantage Compatiblity Complexity Triability Observability
  • “The buyer chooses between different offerings on the basis of which is perceived to deliver the most value. Value reflects the perceived tangible and intangible benefits and costs to the customer…” Kotler & Keller (2006, p25) © Ana Isabel Canhoto 2013 22 Customer value
  • Needs vs. product attributes 23© Ana Isabel Canhoto 2013
  • Maslow’s hierarchy of needs 24© Ana Isabel Canhoto 2013
  • Freud: • Conscious (immediate awareness) • Preconscious (accessible memories) • Unconscious (drives, instincts, etc) Theories of motivation 25© Ana Isabel Canhoto 2013 Product Reasons for use Cues
  • Consumption decision 26© Ana Isabel Canhoto 2013 Value = Benefits – Costs Vi = θRi – Ci Where: V = Net benefit from consumption of product i R = Gross benefit from consumption of product i θ = Probability of successfully evaluating quality of product i C = Cost of product i
  • Perceived benefits 27© Ana Isabel Canhoto 2013 θ ≈ 1 θ ≈ 0
  • Roger’s framework – 4G 28© Ana Isabel Canhoto 2013 Relative Advantage
  • Roger’s framework – 4G 29© Ana Isabel Canhoto 2013 Relative Advantage
  • Roger’s framework – 4G 30© Ana Isabel Canhoto 2013 Relative Advantage „On the outskirts of cities I can pull quite easily a good 30Mbps (…) In the centre of cities it's much less. (…) In Westfield, where my 3G would not work at all… and I couldn't even send a Whatsapp, 4G (worked). (…) 4G has it's advantages but in the city centre … it was still nothing to shout home about.‟
  • Roger’s framework – 4G 31© Ana Isabel Canhoto 2013 Relative Advantage Compatiblity Complexity Triability Observability Niche appeal
  • Trend 1: Together alone 32© Ana Isabel Canhoto 2013
  • Trend 2: Big(ger) devices 33© Ana Isabel Canhoto 2013
  • Trend 3: Sharing 34© Ana Isabel Canhoto 2013 time Usercontrolandengagement Me, the media, right now
  • Trend 4: Cloud, streaming… 35© Ana Isabel Canhoto 2013
  • Trend 5: Quantified self 36© Ana Isabel Canhoto 2013 Source: https://blog.dacadoo.com/wp-content/uploads/2012/11/Sport-QuantifiedSelf_Das-Handy-ist-mein-Fitnesstrainer-1024x837.png
  • Trend 6: Web 3.0 37© Ana Isabel Canhoto 2013
  • Trend 7: Mass customisation 38© Ana Isabel Canhoto 2013
  • Trend 8: Research-shopper 39© Ana Isabel Canhoto 2013
  • Roger’s framework – 4G 40© Ana Isabel Canhoto 2013 Relative Advantage Compatiblity Complexity Triability Observability
  • So, who wants 4G? 41© Ana Isabel Canhoto 2013
  • Relative advantage 42© Ana Isabel Canhoto 2013
  • Relative advantage 43© Ana Isabel Canhoto 2013
  • Tap into macro trends 44© Ana Isabel Canhoto 2013
  • Who wants 4G? Ana Isabel Canhoto Oxford Brookes University w: www.anacanhoto.com t: @canhoto e: adomingos-canhoto@brookes.ac.uk 45