The Role of (Personal) Network Effects and Switching Costs in Determining Mobile Users’ Choice

2009 ◽  
Vol 24 (2) ◽  
pp. 160-171 ◽  
Author(s):  
Juan Pablo Maicas ◽  
Yolanda Polo ◽  
Francisco Javier Sese
Keyword(s):  
Social Network ◽  
Mobile Phone ◽  
Network Effects ◽  
Switching Costs ◽  
Firm Strategy ◽  
Telecommunications Industry ◽  
Switching Behavior ◽  
Mobile Users ◽  
Personal Network

Network effects and switching costs are two major economic forces in information technology industries. Although the consequences of these mechanisms on competition and firm strategy have been well documented in the literature, research on their impact on customer behavior has received less attention. In this study, the authors investigate the role of personal network effects and switching costs in explaining customer choice in the Spanish mobile telecommunications industry. Personal network effects are present when an individual user's utility increases more when some individuals adopt (social network) than when others do. Switching costs refer to costs associated with the process of switching from one provider to another. In addition, this paper studies the drivers of personal network effects and switching behavior. The results reveal that personal network effects and switching costs play a key role in determining mobile users’ choice: the probability that a customer selects a mobile phone company increases with the number of members of her social network already subscribed to that firm, and switching costs are significantly present in the mobile phone market making switching providers costly. Concerning the drivers of both mechanisms, the authors find that relationship characteristics (length, depth and breadth) and demographics differently affect personal network effects perceptions and consumer switching behavior. Implications for decision makers are discussed.

scholarly journals Understanding Decision Making through Complexity in Professional Networks

2014 ◽  
Vol 2014 ◽  
pp. 1-10
Author(s):  
Kon Shing Kenneth Chung
Keyword(s):  
Complex System ◽  
Primary Care ◽  
Decision Making ◽  
Social Network ◽  
Patient Treatment ◽  
Personal Network ◽  
Professional Networks ◽  
Professional Network ◽  
Network Metrics

The attitudes of general practitioners (GP) play an influential role in their decision making about patient treatment and care. Considering the GP-patient encounter as a complex system, the interactions between the GP and their personal network of peers give rise to “aggregate complexity,” which in turn influences the GP’s decisions about patient treatment. This study models aggregate complexity and its influence in decision making in primary care through the use of social network metrics. Professional network and attitudinal data on decision making responsibility from 107 rural GPs were analysed. Social network measures of “density” and “inclusiveness” were used for computing the “interrelatedness” of components within such a “complex system.” The “number of components” and “degree of interrelatedness” were used to determine the complexity profiles, which was then used to associate with responsibility in decision making for each GP. GPs in simple profiles (i.e., with low components and interactions) in contrast to those in nonsimple profiles, indicate a higher responsibility for the decisions they make in medical care. This study suggests that social networks-based complexity profiles are useful for understanding decision making in primary care as it accounts for the role of influence through the professional networks of GPs.

Efficacy of MBA: on the role of network effects in influencing the selection of elective courses

2018 ◽  
Vol 32 (1) ◽  
pp. 84-95
Author(s):  
Vivek Roy ◽  
Chandan Parsad
Keyword(s):  
Social Network ◽  
Network Effects ◽  
Preliminary Evidence ◽  
Content Type ◽  
Network Characteristics ◽  
Mba Students ◽  
Elective Courses ◽  
Elective Course ◽  
Social Network Effects

Purpose The purpose of this paper is to outline the importance of social network effects in influencing the elective (courses) selection among masters of business administration (MBA) students and its role in influencing the efficacy of MBA. As such, given the enormous time and investment required for students to pursue an MBA and the role of electives in forming the student’s knowledge base, it is important to consider the decision process of students while selecting elective courses as they pursue their degree. Design/methodology/approach This study explores the relevance of network characteristics in the elective selection phenomena through questionnaires administered personally to 50 MBA students from a premier b-school in India. Thereby, it seeks to link the implications with MBA efficacy. Findings In the sample, the authors found that social network connections in terms of homophily and heterophily (similar and dissimilar others) had the strongest association with elective course decisions. Further, the role of tie strength (the level of intensity of the social relationship between two individuals) in governing the phenomena was not confirmed. Practical implications The authors discuss the linkage of elective selection phenomena with the efficacy of MBA. Specifically, the authors focus on a possible risk where network influences may prompt a student to select electives by surpassing his or her academic interests and thereby may hamper the efficacy. The authors also outline implications from the perspective of students, professors, and administrators. Originality/value The study is among the initial studies to present preliminary evidence on the efficacy of MBA from the perspective of elective selection phenomena and the role of social network effects.

Market Investigations

2021 ◽  
Keyword(s):  
Market Power ◽  
Network Effects ◽  
Switching Costs ◽  
Scale Economies ◽  
Economic Sectors ◽  
Dominant Firms ◽  
Competition Laws ◽  
Laws And Regulations

In many economic sectors – the digital industries being first and foremost – the market power of dominant firms has been steadily increasing and is rarely challenged by competitors. Existing competition laws and regulations have been unable to make markets more contestable. The book argues that a new competition tool is needed: market investigations. This tool allows authorities to intervene in markets which do not function as they should, due to market features such as network effects, scale economies, switching costs, and behavioural biases. The book explains the role of market investigations, assesses their use in the few jurisdictions where they exist, and discusses how they should be designed. In so doing, it provides an invaluable and timely instrument to both practitioners and academics.

Correlating Personality and Actual Phone Usage

2014 ◽  
Vol 35 (3) ◽  
pp. 158-165 ◽  
Author(s):  
Christian Montag ◽  
Konrad Błaszkiewicz ◽  
Bernd Lachmann ◽  
Ionut Andone ◽  
Rayna Sariyska ◽  
...  
Keyword(s):  
Big Data ◽  
Social Network ◽  
Mobile Phone ◽  
Mobile Phones ◽  
Self Report ◽  
Psychological Variables ◽  
New Approach ◽  
Report Data ◽  
Self Report Data ◽  
Voice Calls

In the present study we link self-report-data on personality to behavior recorded on the mobile phone. This new approach from Psychoinformatics collects data from humans in everyday life. It demonstrates the fruitful collaboration between psychology and computer science, combining Big Data with psychological variables. Given the large number of variables, which can be tracked on a smartphone, the present study focuses on the traditional features of mobile phones – namely incoming and outgoing calls and SMS. We observed N = 49 participants with respect to the telephone/SMS usage via our custom developed mobile phone app for 5 weeks. Extraversion was positively associated with nearly all related telephone call variables. In particular, Extraverts directly reach out to their social network via voice calls.

The Effect of Prestige Sensitivity on Price Acceptance in Vietnam’s Mobile Phone Market

2018 ◽  
pp. 97-112
Author(s):  
Huyen Thi Nguyen ◽  
Ngoc Minh Nguyen
Keyword(s):  
Mobile Phone ◽  
Mobile Phones ◽  
Structural Equation ◽  
Sampling Method ◽  
Product Knowledge ◽  
Mediating Role ◽  
Modelling Method ◽  
Equation Modelling ◽  
Convenience Sampling

The purpose of this study is to examine the effect of prestige sensitivity on mobile phone customer’s price acceptance in Vietnam and the mediating role of product knowledge and price mavenism on this relationship. We used the convenience sampling method for data collection via questionnaires with a sample of 605 consumers who purchased mobile phones. The collected data was analysed by applying a structural equation modelling method. The result indicates that prestige sensitivity has both direct and indirect effects on price acceptance via product knowledge and price mavenism. The findings suggest that prestige sensitivity can be used as a market segmentation criterion for mobile phones when making price decisions and providing customers with adequate information could improve price acceptance.

The Role of Mobile Phone Technology in Resolving Communal Conflicts in Mandera County, Kenya

2020 ◽  
Vol 4 (2) ◽  
pp. 69-80
Author(s):  
Mohamed Ibrahim Eymoi ◽  
Patrick Mbataru
Keyword(s):  
Social Media ◽  
Conflict Resolution ◽  
Mobile Phone ◽  
Short Message Service ◽  
Instant Messaging ◽  
Video Conferencing ◽  
Short Message ◽  
Mobile Phone Technology ◽  
Message Service

The unprecedented global adoption of information and communication technologies (ICTs) is rapidly changing the way people are communicating in solving problems. For several years now, the role of ICTs has become important in the way people construct their relationships in conflict resolution. Yet little is known on the dynamism of this interaction. It is not clear how mobile technology has contributed toward conflict resolution, and this study will contribute to the knowledge on the role of mobile telephones in conflict resolution. The purpose of this study was to explore how the mobile phone technology contributed in resolving communal conflicts in Mandera County, Kenya. This study was guided by three theories: conflict transformation theory, diffusion of innovations theory and social representation theory. The conflict Tansformation Theory is adopted as the main theory of analysis.  The main idea of this theory is transforming negative conflict into constructive conflict, deals with structural, behavioural and attitudinal aspects of conflict. This study adopted a descriptive survey. The population for this study consisted of 301 employees in ICT and security department where stakeholders in technology and security sectors and the public. Primary and secondary  data was analysed according to the objectives. Primary data was derived from questionnaires formulated to target employees in ICT and security department. The data analysis included qualitative and quantitative techniques.  Qualitative data was summarized and categorized according to common themes and was presented using frequency distribution tables, graphs and charts. Content analysis was used mostly to arrive at inferences through a systematic and objective identification of the specific messages. The quantitative data collected was analyzed using descriptive statistics. The results confirmed that short message service, social media plateform, instant messaging applications, and video conferencing play a role in resolving communal conflicts in Mandera County. The study concludes that Short Message Service, Social Media Platforms and Instant Messaging Applications can be used conflict such as communal conflicts. Video Conferencing can be used to solve conflict such as relationship conflict, arises from differences in personality, style, matters of taste, and even conflict style as well as conflict in the workplace like task conflict. County government of Mandera must come up with ways of incorporating mobile phone technologies such as Short Message Service, Social Media Platforms, Instant Messaging and Video Conferencing on matters conflict resolution. The study recommends that the County Government of Mandera in collaboration with the National Government need to come up with agencies to regulate the use of social media as a medium to communicate in times of conflict since they are sometimes prone to misuse.

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