Growth of mobile value added services study of BSNL Karnataka customer perceptions on service value and behavior intentions

Abstract

Growth of Mobile value added services (MVAS) is driven by a complex combination of value attributes that connect with people s lifestyles. Since Telecom business is highly competitive, product/service differences are getting closed at an increasing speed. Many companies try to win the battle for customers by price reductions. With this cost may not be an issue in assessing the value of the service in long run. Hence, in MVAS industry, Value is personalized to customer perception and lifestyle-driven, not cost-driven. Any service is considered to be valuable if it is useful, usable, and desirable from customer perception. The more powerful factor is the customer need to connect their service purchases with their own personal values. Usually the willingness to pay for any service depends on the perceived value of that service. The higher service perceived value, the more people pay for it. Here an attempt is made to study the BSNL Karnataka mobile customer s perceptions and then analyze the value attributes which influence the user behavior for growth of MVAS. Proven Models with Service Quality and Value are used to analyze the perceptions of BSNL post paid customers that are collected through mail survey. After Confirmatory Factor Analysis, Structural equation modeling is used to analyze the attributes of perceived service value and behavior intentions. It is seen that MVAS applications perceived value is influenced by basic mobile service quality, choice of applications available with service provider. It is also seen that Customer behavior intentions are influenced by the quality of Basic services and Customer support provided in using the MVAS applications. Findings of this study give BSNL managers an insight on strengths and weakness of MVAS business that customers perceive and suggest strategies for effective utilization of resources.