Differences in consumer loyalty and willingness to pay for service attributes across digital channels: the case of Japanese digital content market

  • Authors:

  • Donghun Kim;Philip Sugai

  • Affiliations:

  • International University of Japan, Minami Uonuma-city, Japan;International University of Japan, Minami Uonuma-city, Japan

  • Venue:
  • IWCMC '07 Proceedings of the 2007 international conference on Wireless communications and mobile computing
  • Year:
  • 2007

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Abstract

In this paper, we explored differences in consumer behavior between the mobile and PC internet. Specifically, we estimated mixed logit demand functions for mobile and PC subscribers in the Japanese digital content market and measured consumers' willingness to pay for attributes related to service quality. We found that the willingness to pay for more robust and more frequently updated content was on average higher in the mobile segment than in the PC segment. In addition, the overall switching costs mobile subscribers attributed to content providers were far higher than PC subscribers for the same content. Our results suggest that significant and measurable differences exist in the effectiveness and impact of similar content across different interactive media channels.