A consumer perspective on mobile market evolution

In 2007 (Mazzoni, Castaldi, Addeo) we performed a wide research on consumer behavior in the Italian mobile communication market. Using a multidimensional segmentation approach, we identified three consumer clusters according to lifestyles, mobile phone use motivations and product attributes. One of the most interesting finding was that two clusters out of three were characterized by a minor propensity to an integrated and service-oriented use of mobile communication. In other words, some consumers conceived mobile phone not only as a simple communication devices, but more like a technologically advanced multipurpose tool. In mid-2000s Italian mobile companies and operators tried to push mobile communication market toward an integrated use, mostly relying on videophone communication. Although videophone communication had a very low impact on mobile market, integrated and service oriented use of cellular phones are becoming more and more the pillars of mobile communication market. Considering that the mobile communication market changes quickly under the spur of many technological innovations, new challenges or opportunities stem from the exploitation of innovations in mobile devices. The service economy (Fuchs, 1968; Gustafsson & Johnson, 2003), that implies the shift of manufacturers from goods selling to services delivering, is one of those challenges for mobile industry. Mainly since 2007, with the iPhone introduction, the “servitization” (Vandermerwe & Rada, 1988) has been an extending trend (Neely, 2007) among the mobile phones suppliers as they try to mix in their offerings either good and service, integrating phone devices with increasing software and applications. In a supplier perspective, this shift has an important impact on economical aspects, in term of cash-flows growth, or additional revenues - those streaming from selling more complementary services for products. Nevertheless, servitization also brings implications in the operation management, in the innovation strategy and compels providers to revise their business model also. But what is happening in the consumer perspective? A mass-market product like the mobile phone becomes extremely customizable by the complementary services that can be integrated into it: software updating allows customers to entail the mobile phone functionality on their unique needs. Analyzing the consumer perspective through the adoption of a behavior model above outlined (Mazzoni, 1995) and already applied and tested into the exploration of mobile market (Mazzoni, Castaldi, Addeo, 2007), this chapter aims - through a literature review - to understand how changes in the offerings can affect the three dimensions: lifestyles, use motivations and product attributes. Particularly, if shifts in product attributes are clear and evident, the chapter aims to consider the impact in the way in which customer’s expectations, needs and use of mobile phones are transforming.