The attraction of personalized service for users in mobile commerce

TLDR

Mobile commerce usage has risen sharply, prompting firms to invest heavily in platforms to attract and retain customers. The study examines how mobile service providers can attract new customers by assessing subscribers’ intention to switch when offered personalized services. The authors evaluate four constructs: the volume and perceived usefulness of general ads, and the perceived usefulness and privacy concerns of personalized ads. All four constructs significantly influence subscribers’ decisions to switch to a new mobile service provider.

Abstract

There has been a notable increase in consumer use of mobile applications. Consumers begin to adopt mobile commerce applications. In response, firms have been investing billions of dollars in order to enhance the hardware and software platforms for mobile commerce. Consequently, with such large investments, firms are highly motivated to attract new clients and retain their old customers. In the present study, the strategic parameters have been studied in order to determine the ways in which mobile service providers acquire new customers. For the purpose of analysis, the dependent variable is the service subscribers' intention to switch to a new service provider with personalized services. Four main constructs have been studied - the amount and the perceived usefulness of general advertisements, the perceived usefulness and privacy issues about personalized advertisements. This empirical study indicates that all four constructs are significant in affecting the decision by subscribers to change to a new mobile service provider.