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Platform Transitions in East Asia: Comparing Korean and Japanese Mobile Data Services Users

This survey analysis explores the adoption of mobile data services by Korean and Japanese users, highlighting factors influencing transitions between pager and cellular services. Key questions include market creation, consumer motivation, and incentive mechanisms.

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Platform Transitions in East Asia: Comparing Korean and Japanese Mobile Data Services Users

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  1. Customer Transitions in Adopting Mobile Data Services: A Survey Analysis Comparing Korean and Japanese Users JE Short (jshort@ucsd.edu) and J Siegel (jsiegel@hbs.edu) May 2007

  2. Motivation and Questions • Motivation: Wireless demand growth, user segmentation, application mix, usage (voice, data) and device preference, among others, is mediated by many factors, and is path dependent • Useful to study platform transitions as these transitions represent inflection points in aggregated profiles of use • Questions: • How do firms create markets for new products and services when these products / services are not yet introduced? • Consumer interactivity, expectations, pricing (economic incentives) • What motivates consumers to upgrade existing product / services? • What forms of incentives operate to transition behaviors (discontinuity) versus evolve behaviors over time?

  3. Background • Marketing literature: • WMDS adoption: customer switching and loyalty behavior as a function of technical complexity, personal innovativeness and trust • Keaveney, 1995; Jones and Sasser, 1995; Rust, Lemon and Zeithaml, 2004; Reinartz, Thomas and Kumar, 2005; Pirc, 2005 • General studies of technology adoption (co-evolution, etc.) • Venkatesh, Morris, Davis & Davis, 2003 • Communications literature: • Adoption of new technologies in developing economies, in more advanced economies, etc. • Noam, Komatsuzaki, and Conn 1994; Noam 1998, 1999 • Other factors • To discuss

  4. Study and Method • Companion surveys in Japan and Korea (same instrument), administered over same time period • Survey: 66 questions in five sections, administered in Japan and Korea, replicate planned for this year (to allow for longitudinal analysis) – full survey in paper • Respondent Pool: • Just over 5,000 people responded, and 4,609 responses were judged suitable for analysis (incompletes, etc.) • Average age of respondent was 26. Approx 90% owned a cell phone, just over 80% had owned a pager, allowing a detailed analysis of pager to cell phone transition

  5. Results • Transition Pattern (3 types) versus Price Sensitivity (Korean data)

  6. Results • When Consumers Started Accessing the Internet, Mediated by Pager

  7. Results • Reasons for Using the Internet a. I found out that the mobile Internet existed b. Using the mobile Internet became affordable c. I saw a need to use the mobile Internet. d. The services provided by the mobile Internet became attractive. e. Mobile Internet became easy to use. f. I became satisfied with security on the mobile Internet. g. Because my cell-phone happened to have Internet capability. h. Other

  8. Conclusions and Future Research • Japanese and Korean platform transitions between pager and cellular services were very different • Japanese consumers held on to pager services far longer, and were willing to use (and pay for) both devices • Korean consumers shifted across platforms quickly and started using Internet services much more rapidly • Mediating factor: Korean price subsidies • Further research • Replicate survey planned this year • Comparison of two platform transitions (within and between analysis)

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