Why Consumers Do Not Use Mobile Services - Assignment Example

WHY CONSUMERS DO NOT USE MOBILE SERVICES Background Mobile phones are one of the greatest technological inventions of this era. The growth rate of mobile phone users has increased exponentially in recent years. In 2004, there were almost 180 million users of cell phones in USA only (Charny, 2005). This shows the rate of increase of mobile phones among general public. Nowadays, people from all walks of life have mobile phones that keep them online and connected to their loved ones, business fellows and others. Realising this high level of acceptance of this technology, many cell phone companies and network providers now provide a host of services to mobile phone users. Some of the services available on a mobile phone include voice call, text messaging, video conferencing, ring tones, weather, news, horoscopes, music, emails, mobile internet, video camera, Bluetooth, MP3, still camera, WiFi, mobile television, gaming, Microsoft Office programs, multimedia messaging including pictures and photos, data access and transfer with personal computers, and a number of other value added features. Many people and organisations have carried out a number of researches to find out the impact of new and varied mobile services on users. These market researches are particularly important when new products and services are to be produced. Nielson company has announced that they will conduct a research study to find out the most frequently used mobile phone functions (Balan, 2007). The purpose of this research is to identify the areas which appeal to mobile phone users, and hence target efforts to develop new and novel ways to enhance services in these areas. For instance, if consumers prefer to use text services over watching mobile television; the companies can enhance text messaging option by providing word editor etc. on their mobile phones; and pull back from providing mobile television services since these do not attract consumers' attention. As Balan (2007) quotes, "Reliable and accurate measurement of mobile consumers will enable advertisers to properly evaluate the mobile marketing opportunity. Independent measurement of the cross-media behavior of the growing mobile audience will support and accelerate the evolution of mobile media business models" (Jeff Herrmann - Vice President of Nielsen Wireless). Despite the fact that an increasing number of people keep and use mobile phones, there are groups of people who think that using mobile phones in public is annoying and should be discontinued. Monk, Carroll, Parker, and Blythe conducted a study in 2004 on this topic and the results show that many people believe that face to face meeting is much more effective than mobile phone calls. In addition, the research revealed that people generally disapprove mobile phones ringing in churches, trains, funerals and other events and places of such nature. It is generally treated as unethical as per the research (Monk Carroll Parker Blythe, 2004, p.33-41). In addition, there are some controversies regarding mobile phone use, with regard to medical and health issues. Many people have raised voices against mobile phone usage claiming that it results into brain cancer and other medical disorders, especially in children. BBC News (2000) published a story regarding the cries against mobile phone usage in children, and provided results of various researches on the topic. The summarised results indicated that although there were no proven medical problems from the use of cellular phones, yet children should be kept away from mobile phones until absolutely necessary. This and similar news items and researches have contributed a great deal in reducing the number of mobile phone users and have even more affected the use of other mobile services besides voice calls and text messaging. The recent introduction of third generation (3G) mobiles has revolutionised the way mobile communication used to work. 3G mobiles provide high data speed, better voice and data transfer quality and high availability. However, as per the research results shown on 3G.co.uk's website (3G, 2006), TNS Global Technology Insights (GTI) conducted a survey in 2006 regarding the acceptance level of third generation mobile services by consumers and the results show that most people do not use paid services. Third generation mobile sets and services are not as popular among end users and they were originally estimated by companies who have introduced these. The above researches and studies provide useful information about the pros and cons of using mobile phone services. However, to date there is no comprehensive research on the usage of mobile phone services by consumers targeted to identify the reasons why consumers opt to use a particular service and ignore other ones altogether. This research attempts to find out the reasons why consumers do not use mobile services as much as they use mobile phones for voice calls and text messaging. Project Aims and Objectives The aim of this research work is to study consumer behaviour towards the use of mobile services in order to provide focussed and enhanced services on mobile phones. This aim will be achieved by various intermediate objectives. The objectives of the research work are provided below: To study the impact of mobile phones on people's lives in general by conducting targeted mobile phone consumer surveys To conduct surveys to find out if proper feasibility and viability analysis is carried out by mobile manufacturers and service providers before providing new mobile services To determine the impact of new mobile services on consumers and to find out if these service assist in increasing sales To determine the reasons of low acceptance towards mobile services by users To develop a comprehensive set of recommendations for mobile manufacturers and service providers which can be used to develop strategies and plans that will result in an increase in the use of mobile services by consumers Other objectives of the research work are to obtain an understanding of how mobile services operate and what are some of the determinants of a consumer opting for a mobile service. The ultimate aim, as noted above, is to study consumer behaviour in the field of mobile communication and to provide a baseline set of recommendations for mobile manufacturers and service providers to enhance the usage of their services among end users. Method To perform the research in order to obtain reliable results and achieve the identified objectives, the research method has to be carefully chosen. The research methodology can be classified in a number of ways. Two of the most common classifications include quantitative research, and qualitative research methodology (Myers, 1997). The distinction between the two methods is provided below: Quantitative Research Quantitative research was originally developed in natural sciences but now is widely used in all forms of research work as an acceptable and effective method of doing research. Examples of quantitative research include survey methods, numerical methods, and laboratory experiments. Qualitative Research Qualitative research was developed as a method to assist researchers in studying social and/ or cultural phenomenon where absolute numbers can not be identified with certainty. Examples of qualitative research include case study research, interviews, questionnaires, observation, and action research. Considering the nature of research question and the research objectives, the research methodology used for this project will largely be based on qualitative research technique where questionnaires will be developed. This involves development of 'Surveys' that will be conducted with consumers of mobile phone services, the manufacturers of mobile phones and cell phone service providers. There will be three separate set of questionnaires for the three categories of respondents. In addition, secondary research will be conducted to gather more statistics and details relating to mobile phone users and services worldwide. The results will be verified against the primary research results to determine the accuracy and reliability of responses obtained from survey respondents. The survey method for research is most suitable to achieve research aim and objectives. This is because there is no scientific answer to the research question, and is actually based on the way people generally behave towards accepting new technology and making its fullest use. The consumer behaviour can only be traced through obtaining data and responses from actual consumers of mobile phone services. The data that will be obtained through surveys will then be analysed to identify statistics and trends in the mobile phone industry and the way mobile services are treated by consumers. The surveys will be developed with focus on research objectives and obtaining answers to research question. The survey for service providers and mobile sets' manufacturers will include questions regarding feasibility analysis before launching a new product or service, and the measurement criteria, if any for measuring the impact of a new service on consumers. The survey for consumers will attempt to extract information regarding the factors that affect consumers' preferences towards a specific mobile service, the threats consumer face from mobile phone usage and will identify the reasons for not adopting third generation mobile services. In this way, the research methodology will comprehensively cover all the areas to achieve research objectives. Programme of Work The work will be divided into components with each component's completion marked with a milestone. The research work is divided into the following components: Task Number Task Title Estimated Effort Brief Description Milestone 1 Literature Review 3 weeks Literature review will discuss the history and expansion of mobile phone industry in the world at length. It will also look at the past studies that have been carried out in mobile phone industry with a view to identify cellular phone impact on human lives and its acceptability thresholds. The views and ideas of various authors will be contrasted to provide comprehensive information about mobile phones and services. Literature review section of the final report 2 Development of Survey Questionnaire 2 weeks Three different sets of surveys are to be developed. The surveys will be administered with general public (mobile phone consumers), service providers and mobile phone manufacturers to obtain their views regarding the use of mobile services by consumers and the reasons for lack of usage of some of the services offered on mobile phones. Completion of three sets of survey questionnaires 3 Survey Administration 2 weeks Surveys will be conducted in local market. It is estimated that approximately 50 different opinions will be gathered from consumers, service providers and manufacturers combined. Survey results and data 4. Data Analysis 2 weeks This includes compiling data, identifying patterns, analysing results, and developing opinions based on the results Data analysis report 5. Research Report Development 3 weeks The final research report will consist of all the above intermediate milestones in addition to a set of recommendations for improving the use of mobile services. Final research report The above provide a tentative estimate of research milestones. The actual deliverables may vary as per the circumstances. References Balan, E. (2007). Research on Which Mobile Functions people Really Use [Internet]. Available from: [Accessed June 10, 2007]. BBC News. (2000). "Mobile Phone Research Ordered". BBC News [Internet]. Available from: [Accessed June 9, 2007]. Charny, B. (2005). "U.S. Cell Tally". CNet News.com [Internet]. Available from: [Accessed June 9, 2007]. Monk, A., Carroll, J., Parker, S., Blythe, M. (2004). "Why are Mobile Phones Annoying" Behaviour and Information Technology, vol. 23, no. 1, pp. 33-41. Myers, M. D. (1997) Qualitative Research in Information Systems. MIS Quarterly. June 1997, pp. 241-242. 3G. (2006). American Consumers not Connecting with 3G Mobile Phone Technology [Internet]. Available from: [Accessed June 9, 2007]. Read More