This document summarizes a research study that examined consumer perceptions of mobile value-added services in India. The study analyzed how service quality, perceived value, customer satisfaction, loyalty, and post-purchase intention are related. Data was collected through surveys of 511 college students aged 18-25 in Prakasam district, Andhra Pradesh. Statistical analysis found that higher service quality leads to greater perceived value, customer satisfaction, post-purchase intention, and loyalty toward mobile value-added services. The research provides insight into how improving dimensions of service quality can positively influence important consumer behavior outcomes for service providers.

1. http://www.iaeme.com/IJM/index.asp 102 editor@iaeme.com
International Journal of Management (IJM)
Volume 6, Issue 9, Sep 2015, pp. 102-109, Article ID: IJM_06_09_011
Available online at
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=6&IType=9
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
© IAEME Publication
___________________________________________________________________________
CONSUMER PERCEPTION TOWARDS
MOBILE VALUE ADDED SERVICES
B. G. K. Murthy
Research Scholar, JNTUK,
Kakinada
Dr. A. Satish Babu
Reader, PG Department of Commerce and Management Studies
VRS & YRN College, Chirala
Dr. B. Nagaraju
Assistant Professor, Bommidala Dept. of HRM,
Acharya Nagarjuna University, Nagarjuna Nagar, Pin Code: 522006
ABSTRACT
Quality of mobile value added services and have a further discussion of
the relationships among service quality, perceived value, customer
satisfaction, Loyalty and post-purchase intention. Multiple regression analysis
is used to analyze the data collected from college and graduate students of
Prakasam Dist. Andhra Pradesh. The outcome of this research shows an
insight into the impact of service quality on outcome variables viz. perceived
value, customer satisfaction, post purchase intension and loyalty.
Key words: Mobile value-added services, Service quality, Perceived value,
Customer satisfaction, Post-purchase intention and Loyalty.
Cite this Article: Murthy, B. G. K., Dr. Satish Babu, A. and Dr. Nagaraju, B.
Consumer Perception Towards Mobile Value Added Services. International
Journal of Management (IJM), 6(9), 2015, pp. 102-109.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=6&IType=9
1. INTRODUCTION
Mobile value-added services are digital services added to mobile phone networks
other than voice services in which the contents included can be either self-produced
by mobile telecom service providers or provided through strategic alliances with
content providers. These services include games, icons, ringtones, messages, web
browsing, SMS (short message service) coupons, and electronic transaction. They can
bring five values to consumers: time-critical needs and arrangement, spontaneous
needs and decisions, entertainment needs, efficiency needs and ambitions, and

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mobility-related needs (Anckar & D’Incau, 2002). Thus, mobile value-added services
will become new opportunities for telecom service providers. However, mobile value-
added services provided by telecom service providers can be classified into four
types, namely information, communication, transaction, and entertainment, and this
classification applies to almost all the providers. Although new services are being
released at all times, whether they are appealing to consumers and can induce positive
post-purchase intention after consumers have used them so as to effectively increase
revenue and sustainable development will be an important issue for telecom service
providers.
2. LITERATURE REVIEW
Rekha Jain (1993) [13] Ceaselessly reviewed the policy changes with respect to
Indian Telecom Sector during the initial stages of post liberalization. The Author
explained in response to varied modes of forces the telecommunication sector has
experienced vibrant technological and structural changes to meet the business needs at
cost and cheaper rates
Athreya (1996) [1] has identified phenomenal myriad changes in the Indian
Telecommunication Sector during the NTP 1993 in that he observed that three phases
of changes include policy vacuum always up to 1999, paradigm shift in both
telecommunication policy and govt. economic policy are finally the given situation in
implementing the new policy on account of various reasons.
Jain (2001) has analyzed the earth shattering success at spectrum auctions in many
developed countries. Furthermore India was one of the one of the early adopter of
spectrum auction but it success is quite abysmal forever the author stressed the issues
in auction design which are contributed to the delay.
Heinonen & Standvik (2003) [5] studied that mobile channel are perceived to be
more personal than traditional and email channels moreover the author identified a
lopsided view on account of high expectation of consumer by getting the marketing
communications messages on one side and expecting utter dissatisfaction by getting
undesired messages.
Liet al (2002) analyzed varied views and opinions of customers he identified that
some were not positively responding and simply ignore the message
The new media in the digital economy have created plenipotentiary tool for direct
and interactive marketing.
According to Godin 92 traditional marketing communication strategies based on
the tenants of interruption logic which mandate the consumer to pay and attentive
stare.
3. SERVICE QUALITY
Parasuraman et al. (1985, 1988) [11] conceived that service quality is the difference
between customers’ expectation and their perceived performance of a service. Base on
this concept, Parasuraman et al. (1988) developed the SERVQUAL model (including
five dimensions, namely tangible, responsiveness, reliability, assurance, and empathy)
to measure service quality [6, 7, 8, 9]. This model has drawn attention from the
academic and the practical circles. However, many scholars have questioned about the
conceptual framework and measurement method of this model. For instance, Cronin
and Taylor (1992) pointed out that using service quality performance (SERVPERF,
i.e. the perceived service in SERVUQAL) to measure service quality produces better

3. B. G. K. Murthy, Dr. A. Satish Babu and Dr. B. Nagaraju
http://www.iaeme.com/IJM/index.asp 104 editor@iaeme.com
results of reliability, validity, and predictive power than using SERVQUAL. Some
other studies (Boulding et al., 1993; McAlexander et al., 1994; Parasuraman et al.)
[10].
4. PERCEIVED VALUE
Customer’s perceived value can be defined from the perspectives of money, quality,
benefit, and social psychology. The Monetary perspective indicates that value is
generated when less is paid (such as by using coupons or promotions) for goods
(Bishop, 1984) [2] earning of purchasing a certain goods to the buyer’s community
(Sheth et al., 1991) [14]. That is, goods carrying particular meanings (such as social
economic status and social culture) can increase the effect of social self-concept
(Sweeney & Soutar, 2001; Wang et al., 2004) [15]. In this study, perceived value is
the evaluation of the benefits of a product or a service by customers based on their
advance sacrifices and ex-post perceived performance when they use mobile value-
added services [16].
5. CUSTOMER SATISFACTION
Customer satisfaction can be defined using the transaction-specific perspective or
cumulative perspective. The transaction-specific perspective indicates that customer
satisfaction is the evaluation based on the recent purchase experiences (Boulding et
al., 1993) [3]. Compared with the transaction-specific perspective, the cumulative
perspective stresses overall evaluations, indicating that evaluations of customer
satisfaction should be based on all the purchase experiences of the customer,
disregarding any specific purchase experience (Johnson & Fornell, 1991).
Parasuraman et al. (1988) argued that the cumulative perspective is more capable of
evaluating the service performance of firms and more effective in predicting
consumers’ post-purchase behaviors (Wang et al., 2004) [17].
6. POST-PURCHASE INTENTION
Post-purchase intention is the tendency that consumers will purchase the goods or
services at the same shop and deliver their use experiences to friends and relatives
(Zeithaml et al., 1996; Cronin et al., 2000; Wang et al., 2004) [4]. To evaluate post-
purchase intention, Zeithaml et al. (1996) adopted loyalty, switch, pay more, external
response, and internal response to assess the evaluation work. Boulding et al. (1993)
used repurchase intention and word of mouth (WoM) to evaluate consumer's post-
purchase intention
7. SERVICE LOYALTY
Service loyalty is the degree to which a customer exhibits repeat purchasing behavior
from a service provider, possesses a positive attitudinal disposition toward the
provider, and considers using only this provider when a need for this service arises.
8. OBJECTIVES OF THE STUDY
1. To study and understand how different variables under study impact consumer
perception towards mobile value added services.
2. To know the relationship between these variables and their impact on service quality
dimensions.

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9. VARIABLES UNDER STUDY
1. Service quality
2. Perceived Value
3. Customer satisfaction
4. Repeat purchase intension
5. Customer Loyalty
10. RESEARCH METHODOLOGY
This study aims to understand consumer perception [12] towards mobile value added
services with special reference to Prakasam district, Andhra Pradesh. This study is
based on primary data through well structured questionnaire. The relevant secondary
data have been collected from various journals magazines groups and websites.
11. SAMPLE SIZE:
The sample size is 511 and data were collected from student who are in the age group
18 to 25.
12. STATISTICAL TOOLS
Simple percentages, ANOVA and Multiple Regression using SPSS (Statistical
Package for Social Sciences)
13. SAMPLING METHOD
13.1. Convenient Sampling
Figure 1 The proposed model based on the literature review.
14. DATA ANALYSIS, RESULTS AND DISCUSSION
Service Quality is a latent construct better understood by Content Quality, Network
Quality, Responsiveness, Reliability, Assurance, Empathy, Tangibles, Convenience.
To test whether Service quality influences Perceived Value, Step wise regression
method was administered with above mentioned variables as independent variables
and perceived value as dependent variable.
H6
H4
H3
H2
H1
Service Quality
Customer
Satisfaction
Repeat Purchase
IntensionPerceived Value
Customer Loyalty
H5
H7
H8

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Table 1 The explanatory power of the three regression models
Model Summary
Model R
R
Square
Adjusted
R Square
Std. Error
Of The
Estimate
Change Statistics
R Square
Change
F
Change
Df1 Df2
Sig. F
Change
1 .488a
.238 .237 .63072 .238 159.222 1 509 .000
2 .552b
.305 .302 .60323 .066 48.453 1 508 .000
3 .571c
.326 .322 .59467 .021 15.728 1 507 .000
From the above Table we can see that the explanatory power of the three regression
models. We can see that content quality explains about 23.7% variation in perceived value.
The r2 value improves when network quality is also fitted into the regression equation and
improves further with the inclusion of Responsiveness. Combined, the three variables,
explain 32.2% of the variation in the dependent variable. Even though the variance
explained is low at 32% approx. but the model is significant at 95% level of significance.
Table 2 ANOVA test
ANOVA
Model Sum Of Squares Df Mean Square F Sig.
1
Regression 63.340 1 63.340 159.222 .000a
Residual 202.484 509 .398
Total 265.824 510
2
Regression 80.971 2 40.485 111.259 .000b
Residual 184.853 508 .364
Total 265.824 510
3
Regression 86.533 3 28.844 81.566 .000c
Residual 179.291 507 .354
Total 265.824 510
Table 3 Regression coefficients and p-values of the independent variables
Coefficients
Model
Unstandardized
Coefficients
Standardized
Coefficients T Sig.
B Std. Error Beta
1
(Constant) 1.491 .155 9.643 .000
Content Quality .570 .045 .488 12.618 .000
2
(Constant) .989 .165 6.011 .000
Content Quality .418 .048 .358 8.629 .000
Network Quality .295 .042 .289 6.961 .000
3
(Constant) .913 .163 5.590 .000
Content Quality .384 .049 .329 7.911 .000
Network Quality .240 .044 .235 5.467 .000
Responsiveness .119 .030 .161 3.966 .000

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The ANOVA test shows that the independent variables are independent of each
other and all the three models are significant. By observing p-values we are rejecting
null hypothesis and conclude that some of the independent variables are significant in
influencing the perceived value in among customers of MVAS.
The Table 3 depicts the regression coefficients and p-values of the independent
variables. In stepwise regression, the software automatically removes the independent
variables, which are not significant, from the regression equation. The excluded
variables can be seen in the below table. As the 3rd model is giving the highest
variance in the dependent variable, the regression equation is represented as:
14.1. The effect of service quality on perceived value
Service quality had a positive and significant effect on perceived value. Only three
dimensions contentquality, networkquality and responsiveness had significant effects
on perceived vaiue. This result is consistent with those of previous studies on the
telecom industry (Wang et al., 2004; Turel & Serenko, 2006). In other words, when
telecom companies provide good service quality in terms of mobile value-added
services, perceived value can be enhanced.
14.2. The effect of service quality on customer satisfaction
As expected, customer satisfaction was significantly directly influenced by both
service quality and perceived value. Except reliability and convenience all other
dimensions of service quality influencing customer satisfaction. These results echo
the findings of previous studies on the telecom industry (Wang et al., 2004; Tung,
2004; Turel & Serenko, 2006). Thus, when customers perceive higher service quality.
and value of mobile value-added services, their satisfaction will be more positive
14.3. The effect of perceived value on customer satisfaction
It is clear from regression equation that perceived value explains 47% variation in
customer satisfaction. These results are consistent with the findings of previous
studies on the telecom industry (Wang, 2004; Lin & Wang, 2006). Thus, when
customers perceive higher value of mobile value-added services, their satisfaction will
be more positive.
14.4. The effect of service quality on post-purchase intention
Service quality had significant positive influence on post-purchase intention. Content
quality, network quality, responsiveness and tangibles have significant effect on post
purchase intension. This means that the effect of service quality on post-purchase
intention was significant. The respondents in this study were undergraduates and
graduate students. In this era of information and technology, computer and new things
would be frequently involved in their life. Therefore, according to their life
experiences, they would consider that the service quality of the mobile value-added
services should be equipped with these quality attributes.
14.5. The effect of perceived value on post purchase intension
It is clear from regression equation that perceived value explains 42% variation in
customer post purchase intension. It implies that when customers have high
perceptions of value and high levels of satisfaction with the mobile value-added
services, they are more likely to use or reuse the services again in the future or to

7. B. G. K. Murthy, Dr. A. Satish Babu and Dr. B. Nagaraju
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encourage their friends and relatives to do so. By delivering higher values to
customers, customers’ repurchase intention can be increased and their positive words
of mouth can be transmitted to others (Eggert & Ulaga, 2002; Petrick, 2002; Lin et al.,
2005).
14.6. The effect of customer satisfaction on post purchase intention and
loyalty
The study found that customer satisfaction impacts post purchase intention in mobile
value added services and customer loyalty. This reiterates the findings of many
service quality studies that a high customer satisfaction will result in positive post
purchase intention and high customer loyalty.
14.7. The effect of post purchase intention on loyalty
The study found that post purchase intention impacts customer loyalty in mobile value
added services. It is observed from the regression table that positive post purchase
intention causes 47% variation in customer loyalty. As established in many previous
studies that a positive post purchase intention will result in high level of customer
loyalty, this research found a similar pattern in mobile value added services.
15. RECOMMENDATIONS FOR FUTURE RESEARCH
For future research, we suggested that variables that affect consumer’s post-purchase
intention (such as switch cost) should be discussed to have more extensive
understanding. In addition, some respondents’ characteristics may affect on the results
of multiple regressions for example gender, education, and level of value-added
services usage. There variables may consider as control variables to modify their
effects. In the aspect of sampling respondents, this study selected only the main user
group of mobile value-added services (university students and graduate students).
Follow-up studies can extend this scope to other consumer groups. Due to the
limitation of time, cross-sectional data collection method was adopted. Thus, follow-
up studies can collect longitudinal data to re-verify the proposed model or find out
whether there is any difference when applied to different consumer groups.
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