Context and mobile services' value-in-use
Highlights
► We study customer use experiences of mobile services. ► We show how the use context influences the value-in-use generated for customers. ► Two types of value could be inferred: context value and value-in-use. ► Context value stems from physical elements and psychological circumstances. ► Value-in-use results directly from using the service.
Introduction
Mobile services (m-services) offer an abundance of unique benefits not available through other channels: they are capable of adjusting to user-specific circumstances (e.g. Balasubramanian et al., 2002, Chen and Kotz, 2000, Standing et al., 2007) and are a means to a connected lifestyle for customers who increasingly spend time beyond the traditional spaces of home and work (Anckar and D'Incau, 2002, Hourahine and Howard, 2004). Despite the potency of mobile services, providers still lack understanding about how consumers perceive their value (Kleijnen et al., 2007). More specifically, it is not understood how value is constructed from a customer value creation perspective (Sandström et al., 2008). Consequently, more research is needed on value-in-use, i.e. the experience of using a service (Holbrook and Corfman, 1985, Woodruff and Gardial, 1996). Value-in-use is based on interaction between a user and an object (Holbrook, 1994), and it is embedded in a use context (Woodruff and Gardial, 1996). Consequently, context is an inherent part of the use experience, and it is expected to impact the value of m-services (Heinonen, 2004, Pihlström and Brush, 2008, Pura, 2005). Some authors have even suggested that in mobile interactions “context is everything” (Braiterman and Savio, 2007: 66), since mobile service use is inherently embedded in customers' everyday lives. According to this view, context in terms of activities in which the customers engage, environmental factors surrounding them and the cultural background underlying the use situation may all impact the use experience (Braiterman and Savio, 2007). However, previous m-service value research has given sparse attention to the role of context. Only a limited set of predefined contextual factors has been studied, in particular temporal and spatial issues (e.g. Vlachos and Vrechopoulos, 2008). Issues such as social and physical surroundings, available resources (e.g. Okazaki, 2005), or user tasks (Dholakia and Dholakia, 2004) remain underresearched. To better understand the impact of context on customer reactions, particularly in terms of technology-based services, researchers have called for more research on contextual factors (Dabholkar and Bagozzi, 2002). Given the shortcomings in previous research, there is a clear need to discover what the constituent parts of value-in-use are, what (if any) the relevant contextual factors are and whether/how they affect customer value perceptions in an m-service setting.
The present article seeks to advance m-value research in two ways: It answers the calls for more research on (1) contextual factors and their impact on customer reactions (Dabholkar and Bagozzi, 2002) in this case value, and (2) on how value is constructed from a customer value creation perspective (Sandström et al., 2008). To meet these ends, a framework is created based on the collected data. The current study includes a wide variety of m-services in contrast to previous research that has often focused on a single service (e.g. m-gaming, banking or financing). Thus, the results may be generalized across m-services. In addition, the data covers actual m-service use experiences, which not all previous m-service studies have had the capacity to capture.
To collect data, the Critical Incident Technique (CIT) was used, because with this method, it is possible to gather rich data on contextual factors from the customer's perspective and investigate the relationships between the context and the service use outcomes, in this case value (Chell, 2004). Employment of CIT is particularly useful for mobile service value research since CIT enables capturing variations in contextual factors, which is typical for ubiquitous m-services. The focus is on positive incidents to capture the value-enhancing elements of mobile service use.
In the realm of marketing, we define mobile services as content and transaction services that are accessed and/or delivered via a mobile handheld device (PDA, mobile, cellular or smart phone, GPS, etc.) based on the interaction/transaction between an organization and a customer. Thus, customer-to-customer mobile communication (calls, private text messages and email) is excluded from this study. Current business-to-customer m-services offered on the studied market include e.g. news, search services, route guidance, logos, ring tones, games, chat, and mobile payments.
The paper is structured as follows. First, prior perceived value literature is reviewed and the role of context in value perceptions is discussed. Second, the chosen interviewing technique and logic of analysis are discussed. Third, the empirical observations are analyzed in relation to previous literature and categorized into a framework. Finally, managerial implications and suggestions for further research are presented.
Section snippets
Perceived m-service value
There is a growing body of research on customer-perceived value in the mobile service context as illustrated in Table 1. However, there seems to be little agreement on how to conceptualize and measure value. Some researchers settle with one overall value dimension and define several anteceding constructs that typically consist of benefits and sacrifices (e.g. Kim et al., 2007, Kleijnen et al., 2007, Vlachos and Vrechopoulos, 2008), whereas others have suggested several coexisting value
Method
In order to examine perceived customer value of mobile services, personal face-to-face interviews were conducted using Critical Incident Technique (CIT). CIT was originally described as “a flexible set of principles which must be modified and adapted to meet the specific situation at hand” (Flanagan, 1954, p. 9). The technique generates detailed information on the total use experience, including situational factors. CIT is very suitable for discovering value-enhancing service components (
Results
The mobile value (m-value) framework grounded in the collected data is presented in Fig. 1. It is an illustrative framework that depicts value as a holistic phenomenon, differentiates between context and in-use value, and summarizes the different value categories. Context value represents customer perceptions of value associated with the use context. It includes contextual elements (time, location, lack of alternatives, and uncertain conditions) and conditional value. Conditional value stems
Emotional value
Emotional value is acquired when a product or service arouses feelings or affect (Sheth et al., 1991a). It stems from aesthetic pleasure, as well as play or fun for its own sake (Holbrook, 1994). In the current study, emotional value is gained particularly through emotional communication and having fun while using the service. Emotional value has gained importance especially in mobile chat, picture messaging, ring tones, and gaming. Using technology may induce an emotional experience even for
Theoretical implications
This study is one of the first to empirically investigate the influence of use context on mobile service value. In particular, it explores the nature of the use situations and illustrates how contextual elements have an important role in influencing the value of mobile services, in addition to customers' more permanent value perceptions and preferences that are related to the mobile service content itself. The m-value framework is theoretically important because it provides understanding of
Acknowledgments
We thank Professor Veronica Liljander, Professor Tore Strandvik, Professor Maria Homlund-Rytkönen, and Assistant Professor Pia Polsa for their valuable comments regarding this paper.
References (83)
- et al.
Removing the contextual lense: a multinational, multi-setting comparison of service evaluation models
Journal of Retailing
(2005) Consumer evaluations of new technology-based self-service options: an investigation of alternative models of service quality
International Journal of Research in Marketing
(1996)- et al.
Mobility and markets: emerging outlines of m-commerce
Journal of Business Research
(2004) - et al.
Systematic combining: an abductive approach to case research
Journal of Business Research
(2002) Situation-dependent services – a challenge for mobile network operators
Journal of Business Research
(2004)- et al.
Value-based adoption of mobile internet: an empirical investigation
Decision Support Systems
(2007) - et al.
An assessment of value creation in mobile service delivery and the moderating role of time consciousness
Journal of Retailing
(2007) - et al.
The social-economic-psychological model of technology adoption and usage: an application to online investing
Decision Support System
(2005) Made sense and remembered sense: sensemaking through abduction
Journal of Economic Psychology
(2000)- et al.
The impact of use context on mobile services acceptance: the case of mobile ticketing
Information & Management
(2009)
The qualitative interview in IS research: examining the craft
Information and Organization
Service value revisited: specifying a higher-order, formative measure
Journal of Business Research
Why we buy what we buy: a theory of consumption values
Journal of Business Research
Consumer perceived value: the development of a multiple item scale
Journal of Retailing
User acceptance of wireless short messaging services: deconstructing perceived value
Information & Management
Value creation in mobile commerce: findings from a consumer survey
Journal of Information Technology Theory & Application
Work and/or fun: measuring hedonic and utilitarian shopping value
Journal of Consumer Research
Exploring the implications of m-commerce for markets and marketing
Journal of the Academy of Marketing Science
The objective situation as a determinant of consumer behavior
Advances in Consumer Research
The service encounter: diagnosing favorable and unfavorable incidents
Journal of Marketing
Integrating attitudinal theories to understand and predict use of technology-based self-service
International Journal of Service Industry Management
Design sketch: the context of mobile interaction
International Journal of Mobile Marketing
Model of adoption of technology in households: a baseline model test and extension incorporating household life cycle
MIS Quarterly
The Critical Incident Technique
Emerging value propositions for m-commerce
Journal of Business Strategies
Technology-based service delivery: a classification scheme for developing marketing strategies
Understanding consumer motivation and behavior related to self-scanning in retailing: implications for strategy and research on technology-based self-service
International Journal of Service Industry Management
An attitudinal model of technology-based self-service: moderating effects of consumer traits and situational factors
Journal of the Academy of Marketing Science
Perceived usefulness, perceived ease of use, and user acceptance of information technology
MIS Quarterly
Information systems success: the quest for the dependent variable
Information Systems Research
Is a critical incident critical for a customer relationship?
Managing Service Quality
Expanding understanding of service exchange and value co-creation: a social construction approach
Journal of the Academy of Marketing Science
The critical incident technique
Psychological Bulletin
A means-end chain model based on consumer categorization processes
Journal of Marketing
Reconceptualizing customer perceived value – the value of time and place
Managing Service Quality
Hedonic consumption: emerging concepts, methods and propositions
Journal of Marketing
The nature of customer value: an axiology of services in the consumption experience
Quality and value in the consumption experience: phaedrus rides again
Money on the move: opportunities for financial service providers in the “third space”
Journal of Financial Services Marketing
Managing the paradoxes of mobile technology
Information Systems Management
Cited by (107)
ARvolution: Decoding consumer motivation and value dimensions in augmented reality
2024, Journal of Retailing and Consumer ServicesThe development and validation of a scale to measure perceived value of mobile commerce (MVAL-SCALE)
2023, Journal of Retailing and Consumer ServicesStudent roles and behaviors in higher education co-creation – a systematic literature review
2022, International Journal of Educational ManagementThe role of mobile value and trust as drivers of purchase intentions in m-servicescape
2022, Journal of Retailing and Consumer ServicesReconceptualizing value creation: Exploring the role of goal congruence in the Co-creation process
2022, Journal of Retailing and Consumer Services