Network Effects, Customer Satisfaction and Recommendation on the Mobile Phone Market

35 Pages Posted: 13 Dec 2012

See all articles by Thomas Cadet

Thomas Cadet

Centre de Recherche en Économie et Management (CREM)

Sophie Larribeau

University of Cergy-Pontoise - THEMA

Thierry Pénard

Université de Rennes 1 - Faculte de Sciences Economiques; Armorican Mole for Research on the Information Society and Uses of the Internet; Centre de Recherche en Économie et Management (CREM)

Date Written: December 12, 2012

Abstract

On mobile phone markets that have reached the maturity stage, customer recommendation becomes a critical focus for operators to attract subscribers from rival operators. Referral propensity is also an indicator of subscriber satisfaction and loyalty. The aim of this paper is to examine the factors that influence customer recommendation. Precisely, we want to know whether referral propensity is more driven by supply-side effects (i.e. characteristics of mobile services) or demand-side effects (i.e. network effects). We use data from French subscriber surveys. The main findings are that referrals depend primarily on supply-side effects: operators’ brand image, the price and quality of services, and customer relations. Price, however, is considered to be a less significant factor than the quality of service when it comes to recommending an operator. Also, information on services and the variety of offerings available, as well as network effects, do not seem to influence referral propensity.

Keywords: network effect, mobile operator, satisfaction, recommendation, customer referral

JEL Classification: L96, D12

Suggested Citation

Cadet, Thomas and Larribeau, Sophie and Pénard, Thierry, Network Effects, Customer Satisfaction and Recommendation on the Mobile Phone Market (December 12, 2012). Available at SSRN: https://ssrn.com/abstract=2187520 or http://dx.doi.org/10.2139/ssrn.2187520

Thomas Cadet

Centre de Recherche en Économie et Management (CREM) ( email )

Rennes, Bretagne 35065

Sophie Larribeau

University of Cergy-Pontoise - THEMA ( email )

33 boulevard du port
F-95011 Cergy-Pontoise Cedex, 95011
France

Thierry Pénard (Contact Author)

Université de Rennes 1 - Faculte de Sciences Economiques ( email )

7, Place Hoche
35000 Rennes
France

Armorican Mole for Research on the Information Society and Uses of the Internet ( email )

France

Centre de Recherche en Économie et Management (CREM) ( email )

7 place Hoche
Rennes, Bretagne 35065
France

Register to save articles to
your library

Register

Paper statistics

Downloads
214
rank
139,861
Abstract Views
1,116
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information