Context and mobile services' value-in-use

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Abstract

Context is an inherent part of service use experiences that helps to understand when mobile services generate superior value-in-use for customers and are preferred to other services, but little research exists on the subject. In order to fill this void, a theoretical value framework incorporating context is proposed. The findings of 85 mobile service use situations indicate strong evidence for two types of value: context value and value-in-use. Furthermore, the paper identifies new context value categories such as uncertain conditions, refines the meanings of other context and value-in-use categories, and concludes that conditional value enhances the value of mobile services.

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.

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