Study On Adoption And Switching In Mobile Commerce Consumer Decision-Making

Consumer adoption of M-commerce and the switching of mobile consumers are studied in this dissertation, by focusing on consumer decision-making, combined with corporation competition and government regulation. Specifically speaking, a theoretical and empirical research on the consumer adoption of M-commerce is conducted from the perspective of consumer decision-making; a game equilibrium model is established to study the switching of consumers between different M-commerce operators, based on consumer behavior and corporation behavior; the mobile number portability policy which reduces the switching costs and optimizes the market structure is theoretically argued and empirically tested based on government regulation. Generally speaking, both the consumer adoption and consumer switching fall to the study of consumer decision-making.Perception and understanding of the target consumers' behavior is the basis of marketing. In theory, decision-making behavior of consumers can be divided into two parts: one is the purchase decision-making, and the other is the purchase action. Purchase decisions are the consumers mental activity and action inclination prior to using and disposing the products or services purchased, which falls to the study of formation of consumer attitudes, that is, consumer adoption; while purchase action falls to the study of the practice process of the purchase decision-making, that is, repeated purchase or consumer switching. In real life consumption, the two parts constitute the complete process of consumer behavior, by penetrating into and influencing each other.M-commerce is a general term of all types of information services that mobile operators provide to cellular phone consumers through the wireless communication network. It includes the basic voice, mobile Internet and special mobile services designed according to the characteristic of mobile phones. This paper conducts a theoretical and empirical research on the acceptance of mobile Internet, by establishing a Self-efficacy-based Value Adoption Model (SVAM), and choosing mobile auction as the object of survey. The results show that the M-auction self-efficacy and perceived value (categorized into perceived functional, social, emotional value and perceived fees) are the variables that influence the consumers' attitude towards M-auction. While M-commerce is providing the consumers with the value generated from innovation, it should also reduce the obstacles for them to switch from traditional E-commerce to M-commerce, namely to decrease the vertical switching cost. Based on the questionnaire finished by university students, the impact of switching costs (such as costs that are caused by money, learning, trust, risk and cellular phone limitations) on M-auction adoption intention is investigated. The results indicate that cellular phone limitations, such as screen, keyboard and internet access speed, are the biggest obstacles for the traditional Internet consumers to switch to mobile Internet.Consumer decision-making influences the adoption and diffusion of M-commerce, meanwhile, the resulted repeated purchase or switching also have a direct impact on the competition among mobile operators. Mobile consumers and mobile operators are the main bodies in the mobile communications market, with M-commerce as the tie between them. On the one hand, mobile operators create value for customers by offering M-commerce; on the other hand, consumers need to pay operators for the value obtained, thereby making product pricing an important tool for operators in market competition. For the voice service, which is still the major service of M-commerce (is simplified as Undifferentiated products in this paper), a Nash-Bertrand model in dual oligopoly market is established according to consumer behavior and corporation behavior, and which considers the customer preferences and price compensation mechanism, to study the switching costs of consumers between different operators. The observable market data of 2002-2007 China Mobile and China Unicom (such as the number of consumers, newly added consumers, changes in market share and corporation income, etc.) are collected and taken into the theoretical models to find the dynamic consumer switching costs, equilibrium price, equilibrium compensation, equilibrium share, customer loyalty and other variables. The relationship between switching costs and Chinese mobile market structural changes are analyzed, especially changes caused by quasi-one-way toll in 2003 and deregulation of price control in 2004.In the mobile communication market, government regulation can also affect the consumer decision-making, the competitiveness of enterprises, and even social welfare and market structure. Number portability policy can reduce consumer switching costs and enhance competition between operators to increase the social welfare, and have been implemented by more than 40 countries or regions in the world. However, there are still social controversy and questions in the academic circle as whether the policy could benefit the smaller operators in terms of market share. In this paper, theoretical and empirical analysis are done to prove that whenever the number portability policy is introduced, it can fulfill the purpose of optimizing the market structure; so-called occasional anomalies in the market are reasonably explained.In short, this dissertation thoroughly studies the consumer adoption of M-commerce and their switching costs theoretically and empirically by focusing on the consumer decision-making. This study is hoped to provide theoretical support for mobile operators to innovate and popularize M-commerce, as well as guidance to government regulation, as well as to promote the Chinese cellular phone industry to develop in a healthy, rapid and sustainable way.