i-mode’s current active users
a research for a better understanding of customers in order to increase usage
Final thesis
Michiel J.A. de Jong
Principal: KPN N.V.
KPN Mobile, i-mode office, The Hague
Rijksuniversiteit Groningen
Faculty of Management and Organization
Managers: Drs E.J. Boers, Content Manager i-mode office Drs R. Smits, Marketing Manager i-mode office
Drs J.H. van Uitert, Faculty of Management and Organization Drs M.E. Boon, Faculty of Management and Organization Drs H.C. Stek, Faculty of Management and Organization
Author: Michiel J.A. de Jong
Student number 1001507
E-mail: michieljadejong@hotmail.com
December 2003 The Hague, Groningen
© Michiel J.A. de Jong 2003
The author is responsible for the contents of this report
2
All rights reserved; no part of this report may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior permission of the author.
Management summary
i-mode
This research has been executed for i-mode office, which is a department of KPN Mobile in The Netherlands. i-mode office is one of the departments responsible for the development and marketing of i-mode. i-mode is often described as the mobile Internet.
The product, however, is quite different from ‘the World Wide Web on a mobile phone’.
With i-mode special developed services can be used. Some examples are CNN News, MeteoConsult weather forecast, 538 Ringtones and OV9292 travel information. i-mode allows a user to send mail to and receive mail from any e-mail address. These services are used on a specially developed phone, which can also be used as any mobile phone for calling and sending SMS. For using i-mode, a user has to pay for the data (Kilobytes) used.
For some services an additional fee must be paid with a maximum of two euros per month. Within KPN the thought is that every moment can be an i-mode moment, indicating that i-mode can be of help to the user for almost everything he does.
Motive for research
For the end of the year 2003 KPN has made it its targets to have 1,000,000 i-mode users in The Netherlands, Germany and Belgium. Many new customers have been welcomed and a lot of energy, time and money has been put in this acquisition process. So far, little attention has been paid to the current i-mode user. This, however, is expected to be an important theme in 2004. Relatively little is known about the current active users. The interest of KPN Mobile is to gain an insight into what moves these customers. KPN wants to know more about the development of usage and the behavior of the current active user.
In this way KPN expects to be able to stimulate usage. Some issues on which more knowledge is needed are: why does the user use certain services, and why do others not do so, what does the user know about i-mode and all services that can be found on i- mode, how is the active user influenced by marketing activities undertaken by KPN, and where and when does the user use the product? When this sort of questions is answered by the active user, KPN will have an insight into the behavior of the user and can next try to stimulate this usage.
Problem statement
The goal for this research is as follows:
Defining the ways in which KPN Mobile can influence the factors driving the i-mode behavior of current active users in order to stimulate usage.
The main question for the research is the following:
In what ways can KPN Mobile stimulate the i-mode usage of the current active user, based on the factors that influence usage?
Research plan
The focus of this research is the Dutch market. To find an answer to the main question five sub questions were formulated. Before studying usage behavior and finding alternatives to stimulate usage, an extensive view needs to be formed on how current usage develops. The current stimuli that are undertaken to stimulate usage must also be looked at closely in order to find out what their effects are. To find an answer to the main question desk research was combined with field research in which focus groups play an
4
important role. In the focus groups a distinction was made between light and heavy users.
The findings are translated in limitations that prevent the user from using more kilobytes with the product. These form the basis for the generation of alternatives. The alternatives are judged by a number of criteria.
Conclusion internal and external factors
Five internal factors were subject of study in the part on internal customer factors:
personality, motivation, value, perception and knowledge. An important general finding is that different personalities can use the same services, whereas ‘comparable’ personalities may use very different services. Users appear to differ in usage groups, showing distinctions between light and heavy users. Even users in the same class show differences.
For the subject of motivation it appeared that there is again a difference between light and heavy users. Heavy users know better how and why to use services. Light users lack the overview of possibilities offered. The main motivation to use i-mode is fun. The subject of value showed how important satisfaction is for the use of a product. As regards substitution, especially light users expected i-mode to be a substitute for the Internet.
Mobile relevance was not seen for paid services, as these can often be found free of charge on the Internet. The perception of i-mode showed a mismatch with reality in the light users. The expectation to have mobile Internet on the phone resulted in disappointment. As these users hardly learn to know new services and their knowledge is limited, their total view of i-mode is often negative. Light users do not show any initiative to browse around and see what i-mode can offer to them.
The following issues were subject of research in studying external customer factors:
marketing and PR, situational influences, social and cultural influences and external influences. The influence of stimuli on users are often hard to tell for users. Public relations show how important a properly managed perception is. Having wrong expectations may well lead to less or non-usage. The advertisements did often not match reality according to the users in the research, especially light users. The rating of appreciation of the i-mail newsletters was rather poor, resulting in not reading it. This newsletter may even have a negative effect on some users, as it is a form of advertising paid by the user: it costs some KB. The content brochure was liked and mentioned by most users, being evaluated as positive. This was, however, not seen in the statistics on usage stimulation. The importance of a proper working device has a big impact on total usage. In a social way a big limitation here is the relative small base of users with the same sort of device, which is believed to be essential by the users. The payment for services is of influence on the usage. Users have to get used to paying for content. But when they are willing to pay, they state that they often do not know what to pay for as no preview is provided. In most cases the product i-mode is evaluated as fun and nice to have, but not as essential.
Many users do not perceive the relevance of the product.
Conclusion alternatives to stimulate usage
On the basis of the preceding six limitations are seen that prevent the user from using more kilobytes:
• Menu-structure and usability
• Daring to explore and information supply
• Knowledge of possibilities, relevance and moment
• Mismatch of perception
• Pre-interest in i-mode
• Price-structure
In total eight alternatives are provided that can potentially stimulate usage:
• Segmentation in light and heavy users. Usage differences between these groups are large enough to legitimize this distinction, in order to target them in a different way.
• Database marketing. By targeting users on the basis of their own interests, a higher total usage may be the result.
• Focus on explanation and support. Light users have difficulty in understanding how the product works, they need help in finding their way.
6
• Loyalty and reward. By rewarding users, higher total usage can be expected to be the result.
• Communication of clear relevance. Making clear to users what the services and possibilities can mean to them will help in making them see usefulness and in increasing usage.
• Clear placement of i-mode versus the Internet. Making clear what the users can expect of i-mode in addition to or compared to the Internet will help in forming their perception of the way in which i-mode was intended.
• Boosting the inactive user base. Increasing the base will make social use more interesting as the appearance of communities, which are known for involved usage.
• Research the influence of price on usage. More knowledge on how price plays a role in relation to usage helps in understanding users and stimulating their usage.
For all alternatives an indication is given of their usefulness. This is done by means of three categories of criteria. These are suitability, feasibility and acceptability. The usefulness of alternatives is the highest where the impact on usage is expected to be big and the consequences for the organization are small. The timeline is preferred to be within one year. The most useful alternatives are segmentation, explanation and support, loyalty and rewarding, relevance communication, placement of i-mode versus the Internet and pricing research.
Reflection
The goal of the research has been reached. Ways were formulated to stimulate usage.
These are, however, not exhaustive. The source of a part of the research (focus groups) can be seen as a limiting factor. Although strong findings were made, it is necessary to keep in mind that the results are based on qualitative research.
Future research
The following recommendations are given towards future research:
• Quantitative research as a follow up of the qualitative one in this research. The insights of this research can be measured and an indication can be given whether the results can be generalized. Also priorities to deal with problems can be indicated in this way.
• As in this research only data-traffic is investigated, some influence of voice-traffic on data can very well be possible. When this is known, it can lead to interesting marketing opportunities.
• Competitor’s customers should be investigated in order to gain insights into the behavior of these customers, their usage development and the effects of stimulation on these users. In this way KPN can learn from its competitors.
• The option of database marketing should be investigated for its costs and effects.
This option is expected to show a barrier within the organization. When a cost and effect analysis is executed, a true valuable view can be formed on this option.
• More groups than those of light and heavy users should be investigated in future research to find out how characteristics of users influence usage.
• The impact and opportunities of UMTS on i-mode should be investigated to see how these products can interact in future developments.
Index
Chapter 1 Introduction, organization and i-mode ... 10
1.1 Introduction ... 10
1.2 The organization of KPN ... 10
1.2.1 KPN Fixed Network division ... 11
1.2.2 KPN Mobile... 11
1.2.3 KPN Mobile in The Netherlands... 12
1.3 i-mode... 12
1.3.1 Handset characteristics... 12
1.3.2 Technology ... 13
1.3.3 Service characteristics... 14
1.3.4 Unofficial portal... 15
1.3.5 Business model ... 16
1.3.6 The success of i-mode compared with the Internet ... 17
1.3.7 Competition... 18
1.4 Recent developments and issues ... 18
1.5 Summary... 19
Chapter 2 Research plan ... 20
2.1 Introduction ... 20
2.2 Background ... 20
2.3 Problem statement... 21
2.3.1 Research objective... 21
2.3.2 Main question... 22
2.3.3 Sub questions... 22
2.3.4 Definitions... 23
2.4 Conceptual model... 25
2.4.1 Background information of the model and its limitations ... 26
2.4.2 Explanation of the model and elaboration of the sub questions... 26
2.5 Research methods ... 28
2.5.1 Desk research... 28
2.5.2 Field research ... 29
2.5.3 Data acquisition technique per sub question ... 31
2.5.4 Overview ... 33
2.6 Conditions for this research ... 33
2.7 Design of the report ... 34
Chapter 3 Literature review ... 35
3.1 Introduction ... 35
3.2 Marketing as a starting point... 35
3.3 Relationship marketing ... 36
3.4 Technology acceptance model... 36
3.5 Customer satisfaction ... 37
3.6 The life cycle concept... 37
3.7 An introduction to adoption-theories... 39
3.8 Consumer behavior ... 40
3.9 Marketing-stimuli ... 43
8
3.10 Communication... 44
3.11 Summary... 44
Chapter 4 Internal customer factors... 46
4.1 Introduction ... 46
4.2 Personal factors... 47
4.2.1 Personality ... 47
4.2.2 Segmentation... 47
4.3 Motivation ... 48
4.3.1 Hidden motives ... 48
4.3.2 Reasons to buy... 48
4.3.3 Reasons to use ... 49
4.3.4 Multiple motives... 49
4.3.5 Moment and relevance... 49
4.4 Value... 50
4.4.1 Worth of the product... 50
4.4.2 Substitute... 50
4.5 Perception... 51
4.5.1 Interpretation process... 51
4.5.2 Internet perception... 52
4.5.3 Perception of difficulty ... 52
4.5.4 KPN versus i-mode ... 52
4.5.5 Competition... 53
4.5.6 Development of perception ... 53
4.6 Knowledge and learning ... 53
4.6.1 Learning... 53
4.6.2 Knowledge... 54
4.7 Summary... 54
4.8 Conclusion ... 55
Chapter 5 External customer factors... 56
5.1 Introduction ... 56
5.2 Marketing and public relations... 56
5.2.1 Effect of the stimuli ... 57
5.2.2 Competition and marketing ... 60
5.3 Social and cultural influences ... 60
5.3.1 Social use and communication ... 60
5.3.2 Word of mouth ... 61
5.3.3 Social context ... 61
5.3.4 Culture ... 61
5.4 Situational factors ... 62
5.4.1 Temporary economic situation... 62
5.4.2 Purchase precipitators... 62
5.4.3 Usage situations ... 63
5.5 External factors... 64
5.5.1 Economic situation... 64
5.5.2 Technological developments... 65
5.6 Score of values... 65
5.7 Summary... 67
5.8 Conclusion ... 67
Chapter 6 Ways to influence usage ... 69
6.1 Introduction ... 69
6.2 Recapitulation... 69
6.3 From recapitulation to limitations ... 70
6.4 Pointing out alternatives to influence usage ... 71
6.4.1 Segmentation... 72
6.4.2 Use of database marketing... 72
6.4.3 Focus on explanation and support... 73
6.4.4 Use of loyalty and rewarding ... 73
6.4.5 Communication of clear relevance... 74
6.4.6 Placement of i-mode versus Internet ... 74
6.4.7 Boosting the inactive base ... 75
6.4.8 Researching the influence of price on usage ... 75
6.5 Choice of criteria... 75
6.5.1 Suitability... 75
6.5.2 Feasibility ... 76
6.5.3 Acceptability... 76
6.6 Usefulness of alternatives ... 77
6.7.1 Explanation of scores... 78
6.7.2 Choice of attractive alternatives ... 79
6.8 Summary... 79
6.9 Conclusion ... 79
Chapter 7 Conclusions and recommendations... 81
7.1 Introduction ... 81
7.2 Problem statement... 81
7.3 Stimulation of i-mode usage ... 81
7.4 Reflection ... 83
7.5 Recommendations... 83
7.6 Limitations... 84
Literature list and other sources ………..69
Abbreviation and explanation list ………....72
10
Chapter 1 Introduction, organization and i-mode
1.1 Introduction
i-mode makes it possible to use mobile services and mobile mail applications. This research was executed for KPN Mobile in The Hague, The Netherlands from April to September 2003.
The first chapter consists of an introduction into the world of KPN and i-mode. As i-mode is a relatively new product and may not have been used or tried by most persons, the introduction is quite extensive. In reading this chapter all necessary background information will have be for understanding this research to its full extent. An abbreviation and explanation list is given in the appendix, in which technical and some i-mode related terms can be found.
First an introduction into the organization of KPN is given including KPN Mobile, which is a division within the total KPN-organization. After this necessary insights into the mobile world of i-mode are described.
1.2 The organization of KPN
KPN offers individual consumers and companies high-quality, innovative telecommunication services. KPN's core activities are telephony and data-services in the fixed network of The Netherlands, data-services in Western Europe through KPN EuroRings (KPN's fiber-optic network in Europe) and mobile services in The Netherlands, Germany and Belgium.
KPN is market leader in the major segments of the Dutch telecommunications market.
Through E-plus in Germany and BASE in Belgium KPN is the third largest mobile operator in those countries. To give an idea of the size of KPN, the following numbers are indicative: at the end of 2002 KPN had 38,000 employees serving 7.9 million fixed-line customers, 13.4 million mobile customers and 1.4 million Internet subscribers (www.kpn.com).
KPN wants to make it possible for its customers to decide where, when, how and with whom they communicate. This is effected by providing fixed and mobile lines with varying bandwidths (including ADSL, ISDN for the fixed network and GPRS and soon UMTS for mobile communications). KPN observes a shift from voice communication to data communication. i-mode has made this development visible in the use of mobile services.
In short, KPN wants its activities to contribute to materializing the concept of a world in which everybody is able to communicate any time, anywhere (www.kpn.com).
The activities of KPN are split up into two main divisions: fixed and mobile. In this organization a third division can be seen, which reports to both previously mentioned divisions. Therefore it is not seen as a main division, but is actually indicated separately.
This is presented in figure 1.1.
Figure 1.1: organization of KPN
1.2.1 KPN Fixed Network division
This division comprises all KPN’s fixed network activities, including domestic telephone traffic, fixed-to-mobile traffic and outbound international traffic. The parts of KPN responsible for delivering ADSL and lines connected to the European fiber-optic rings form part of this division. The division further includes the KPN department that operates in the wholesale market for telephone traffic and offers support services to other telecom operators. The division also consists of KPN's Internet activities and sales organizations including kpn.com. Internet service providers Het Net, Planet Internet and XS4All are wholly owned by KPN (www.kpn.com).
1.2.2 KPN Mobile
KPN Mobile N.V. is a leading European mobile telecommunications network operator and provider of mobile voice and data services. The company is currently active with its own network operators in Germany (E-Plus), Belgium (BASE) and The Netherlands (KPN and Hi), where more than 8000 employees serve some 13.5 million customers as from the end of December 2001 (figure 1.2).
Figure 1.2: organization of KPN Mobile
KPN Mobile must be seen as one company, active in three countries (speech of KPN Mobile CEO DeMuynck, 2003). The Mobile Division comprises all KPN's mobile activities in Germany, Belgium and The Netherlands. At the end of 2002 KPN had a 97.84 % share in KPN Mobile N.V. NTT DoCoMo in Japan owns the remaining share of 2.16%. KPN Mobile N.V. is 100% owner of E-Plus (Germany) and BASE (Belgium) and has a 15% share in Hutchison 3G UK ltd.
12
KPN's mission is to enhance shareholder value by bringing the mobile economy to its customers through providing world-class personal communication and mobile data and Internet services (www.agora.kpn.org).
1.2.3 KPN Mobile in The Netherlands
Within The Netherlands KPN Mobile is active with two main brands on the market of mobile phone operators. These are KPN and Hi. KPN is positioned at the three following segments, given with a definition by KPN:
SoHo (Small Office and Home Office): owners and employees of small companies depending heavily on communication
Career: 25 years of age and older, committed to work, friends and family Family: phone is mainly used for safety and to be of help to others
Hi is mainly aimed at a younger target group, which is called the segment 'fun & friends'.
Fun & friends: 13 to 25 years of age with fun as the most important benefit from their mobile phone
i-mode, as will be explained further, is an umbrella-brand that can be used with both KPN and Hi. Within KPN Mobile all three countries have their own organization concerning how to deal with i-mode. Within The Netherlands departments of KPN and Hi intensively work together with the help of other departments.
1.3 i-mode
In February 1999 NTT DoCoMo launched i-mode in Japan. i-mode is a mobile Internet access system enabling wireless web surfing. As will be explained in this chapter, this web surfing does not concern the World Wide Web but a specially developed web environment. Because of the enormous success of the i-mode concept in Japan, KPN Mobile started a strategic cooperation with NTT DoCoMo in May 2002 in order to bring i- mode on the European market. In exchange for cooperation in setting up a Pan- European portal, KPN Mobile was allowed to launch the i-mode service.
KPN Mobile was the first company to introduce i-mode in Europe. In March 2002 KPN Mobile’s E-plus introduced i-mode in Germany. In April i-mode was put on the market in The Netherlands. In August Belgium followed with KPN Mobile’s BASE.
The name i-mode consists of two parts: the 'i' and the 'mode' part. The 'i' stands for I as in I myself as well as in individual. I also stands for Internet and interactive. 'Mode' stands for manner, a way of doing. Together the implication is that i-mode is your own mode, your own manner, which is suitable for your interests in a personalized manner in an interactive, Internet-like world.
1.3.1 Handset characteristics
As said, i-mode is an umbrella service, which is added to a normal subscription of one of KPN Mobile service providers (KPN and Hi in The Netherlands, in Belgium to BASE and in Germany to E-plus).
i-mode is a mobile data service that can be used on the mobile phone. For visiting i-mode sites a special handset is needed. The devices look similar to regular GSM cellular phones.
A picture of some models is given in figure 1.3.
Nokia 3650
Mitsubishi m21i Toshiba ts21i
NEC n22i
Figure 1.3: four different i-mode handsets
Special externally remarkable elements for these phones are that they have large 256 or more color screens. For the rest they look just like 'ordinary' phones. The big difference is the technology, which will be discussed further on. A customer needs these special phones to use i-mode. At the end of 2003 about ten different models will be available on the Dutch market. Brands are NEC, Toshiba, Mitsubishi, Nokia and Siemens.
1.3.2 Technology
Voice traffic in Europe is conducted through the GSM network. This is also the case with phone calls made with an i-mode handset. To retrieve information from services i-mode makes use of GPRS. Going very deeply into GPRS technology is out of the scope of this report. In short, the GPRS network works by making use of data-packages, which are received by the mobile phone. GSM and GPRS can work at the same time: when a customer is making use of i-mode he or she can also be called or sent an SMS to at the same moment. In using i-mode the customer calls into the GPRS-network for only short moments, not continuously. The user is not billed for the number of minutes he has a connection with a service number, but for his mail or i-mode usage in bytes. To be able to make the best possible use of this network, sites are limited to 3 to 5 KB (fast downloadable) and mails can have a maximum of 1000 characters.
i-mode services are written in a special programming language called compact HTML (cHTML). This has especially been developed for small information devices with hardware restrictions such as a small memory, a small display and restricted sorts of fonts. CHTML integrates HTML features in the limitations of small devices. Because this language is quite similar to HTML, content developers are familiar with it and can easily develop content for i-mode, making joining the business attractive.
14
1.3.3 Service characteristics
Besides the regular functionalities of a GSM-phone such as making phone calls and sending and receiving SMS (Short Message Services), an i-mode handset can also send and receive e-mail (called i-mail) and retrieve information from sites. These sites are small sites, comparable to those found on the Internet, but then to be viewed on a mobile phone. There are over 150 official sites in four main categories:
• Communication: services for personal data traffic such as chatting, mailing and SMS
• Information: services provide non-personal data to any customer such as weather forecasts, news sites and traffic information
• Transactions: i-commerce, including services as hotel bookings, ticket reservations and buying stocks or books by i-mode
• Entertainment: services that are offered for enjoyment, such as games, horoscopes, ringtones and cartoons
As these categories are very broad and probably not so very clear to customers, the way in which services are presented is done differently. The i-Menu is the main menu in which all sites can be found (see figure 1.4).
Figure 1.4: all services menu in Germany
To find services the user scrolls down the menu and clicks interesting items in the menu.
When clicking for example the first category (News and Weather), a sub-division will be found, stating:
1. News 2. Weather 3. Journals 4. Show news
After clicking for example '1. News' the following menu is seen:
1. NOS Teletekst 2. Telegraaf.nl 3. ANP Nieuws 4. Spits
5. de Volkskrant 6. Reuters News 7. Postbus 51
Now a choice can be made between different services. The following pictures show some examples of services (figure 1.5). Services that are very popular in The Netherlands are NOS Teletekst, 538 Ringtones and MeteoConsult Weather.
Figure 1.5: some examples of sites (from Germany’s E-plus)
Popularity is indicated as sites that are best visited (highest number of unique visitors per month). Here the top ten of the most popular sites is given (figure 1.6).
# Service
1 Meteo Consult 2 NOS Teletekst 3 538 Ringtones 4 De telefoongids 5 Tutch for tones 6 Voetbal International 7 TMF Ringtones
8 The Box Ringtones 9 Passie Erotiek 10 Mobil Email
Figure 1.6: most popular sites February 2003
Apart from providing different kinds of services, i-mode can also be used for sending and receiving mail. This can be done with a special i-mail address, for example michiel@imail.nl. This address can send mail to any e-mail or i-mail address and can also receive mail from both kinds of addresses. This makes it possible to always check your mail. The cost of using of services varies from a free subscription to a monthly fee of two euros.
1.3.4 Unofficial portal
The explanation of the services provides insights into how the official portal works. As i- mode is an open standard (written in cHTML, see next paragraph on technology), it is also possible for the customer to make his own sites without having to adapt to official procedures by KPN (see also the section on the business model). This is called the unofficial portal, where over 7,000 services can be found. These can be visited by typing in the URL or by making use of a search engine.
16
1.3.5 Business model
As was mentioned before, services can be found on i-mode. The business model makes clear how and why both the operator and the Content Provider (CP) cooperate. Three parties can be seen in this model, as shown in figure 1.7.
Customer
KPN Mobile Content
Provider
Figure 1 7: business model for i-mode, an accent is given to the focus of this research, i.e. the current i-mode user
The triangle indicates that all three parties have some relation to each other:
1. KPN and the customer: KPN offers the customer the possibility to make use of i- mode besides its mobile phone for calling and SMS’s. Therefore KPN makes sure there is a good network with good coverage. Moreover, KPN ascertains that all content offered has good quality and added value.
2. Content Provider and the customer: the CP offers services to the customers. The price to subscribe to these services differs from free of charge to 2 euros per month. The CP is responsible for his own content. When the content is interesting and has a good price, the probability for the end-user to subscribe is greater than when the content is poor and expensive. Therefore it is in the interest of the CP to work hard on his content and make and maintain a good and valuable service.
3. CP and KPN: as KPN has to guarantee a good quality network and total number of services, some prerequisites are set by KPN for getting access to the portal:
a. The site should be deep, meaning that enough information can be found during the first visit, as well as during other moments of visiting the site.
b. The site should be fresh, indicating that it will be revised regularly.
c. The site should be sticky, inviting the visitor to come back after his previous visit.
d. The service should have mobile relevance, indicating that the content is of special interest and has added value on a mobile phone.
e. The service should have personal relevance, indicating that it should be of personal interest to the end-user, giving him personal added value.
The end-user will receive one bill from KPN, which includes the cost of calling and SMS, as well as the subscriptions to services. To make use of i-mode the end-user gets a so-called data bundle consisting of a number of MB, which the user can use for a special tariff. In figure 1.8 the cost for the different bundles is given:
Amount 250KB 1MB 2MB 5MB Bundle-name Extra small Small Medium Large Cost per month e. 5 e. 10 e. 12.50 e. 17.50
Cost out of bundle e. 0.0200 e. 0.0100 e. 0.0035 e. 0.0035 Figure 1.8: overview of bundles
In short, what the user needs is:
• An i-mode phone
• A KPN or Hi subscription
• An i-mode subscription (to one of the bundles shown above)
With all this the customer can make use of i-mode. Additionally, for some services the user has to pay up to two euros per month to get access.
1.3.6 The success of i-mode compared with the Internet
A good question to ask is how successful the product has been so far. i-mode was introduced in The Netherlands over a year ago. In June there were 600,000 i-mode subscribers in Europe (including France and Spain), of which 300,000 to KPN Mobile. At the end of September 2003 this number has grown for KPN to almost 500,000. i-mode has not been adopted as fast as in Japan, where it currently has almost 40 million users. The goal for KPN Mobile is having 1,000,000 users at the end of 2003. For a large part the success of i-mode depends on the coming months until the end of 2003, when can be seen whether the number of 1,000,000 i-mode subscribers for Germany, The Netherlands and Belgium has been reached and mass adoption has taken place.
In line with this it is interesting to notice the success of the World Wide Web. Although i- mode is not promoted as mobile Internet, it can to some extent be compared with this medium. Without claiming to be comprehensive, some important characteristics can be compared. One similarity is (in simple words) that both media make use of digital information, expressed in bytes. Both media are an open standard, making it possible to add information. Both media can be accessed independently of a location (for i-mode in those countries that have adopted the product).
Some important differences can also be seen. Whereas the distinction between official and unofficial content is clear on i-mode, on the Internet this distinction is not seen in this way. Another difference is paying for daily content on i-mode, which is not seen on the Internet in a comparable manner. A third difference to be mentioned here is the function of facilitator. Within i-mode this role is taken by KPN. On the Internet this cannot be dedicated to one company. The last but important difference is the device to make use of both media. Whereas i-mode makes use of small, relatively slow mobile phones with relatively small screens, the Internet is accessed with big, fast systems and screens.
As is generally known, the Internet has grown in an explosive way, going from 3 million users in 1997, to 6 million in 1998, to 20 million in 1999 and blasting to 100 million users worldwide in the year 2000. In Europe, the number of users has doubled from December 2000 to November 2003. Average usage per week in hours has increased from 2.1 in 1997 to 12.6 in 2003 (www.internetworldstats.com/stats4.htm, 2003).
It should be clear that the differences between i-mode and the Internet limit i-mode in having the same functionalities as the Internet, at least for now. Due to limitations, of which some were pointed out above, i-mode will not have the same development as the
18
Internet. A full research can be executed to make this comparison and draw useful conclusions. However, this is out of the scope of this report and will not be done here. It should be kept in mind that i-mode is something different from the Internet. The product needs to be seen in its own context.
1.3.7 Competition
KPN's i-mode is not the only product of its sort that is available on the market. Vodafone and T-mobile also offer services that have a comparable character. For Vodafone this product is called Vodafone Live! and for T-Mobile this product is mentioned by the name T-zones. While the introduction of T-mobile services was in June 2003, Vodafone has been operating in The Netherlands with its V-live! since October 2003 and has been an intensive competitor. To give an indication of the main differences between the products, the most important one on the outside is the camera, which has been available on the phone of Vodafone from its introduction. From the inside, it is often stated in the media that i-mode services work better and look nicer, as V-live services are slow and all look the same (Herald Tribune, 2003). The content is somewhat similar, though KPN has some more services. Another important difference is that i-mode is an open standard, as was indicated before. Vodafone’s services lack this open character, so that only official services can be found on the portal. Another important issue has to do with the fact that V-live! is rather expensive in comparison to i-mode. One ringtone on a Vodafone device will cost one and a half euros, whereas this is a maximum of 40 cents or cheaper for i- mode.
An important difference concerning marketing activities must be mentioned here.
Whereas Vodafone is able to communicate about its product in a flashy and sexy way, KPN has difficulties in explaining what i-mode is and what it can do for the customer. A very striking comparison of the two products is the following: i-mode has good services but lousy marketing, whereas V-live! has good marketing but lousy services (Herald Tribune, 2003).
1.4 Recent developments and issues
The mobile market with all kinds of services has been moving forward rapidly.
Developments are quickly followed by new developments and competition works hard and aggressively to have the most as well as the most valuable customers. Some developments for the present and the coming years are mentioned here.
Mobile phones are getting more and more high-tech in relation to software and hardware. Nowadays most new handsets, especially on the mobile data market, are equipped with a small camera. This enables the user to make pictures and send and receive them. Recently video-streaming was introduced enabling the customer to view video clips, news and send personal video messages to others. Another development is a java application on the phone, rendering new graphical possibilities. SSL is being developed further, guaranteeing a safe connection between phone and service, making it possible to do all banking transactions on the mobile phone.
UMTS is often mentioned in the media. UMTS makes it possible to have a higher speed of data transport (broadband), which will enable the user to download better quality video images, make use of video calling and have a high-speed wireless connection. UMTS is seen as the next generation of mobile phones. In this context i-mode can still be used, but of course with more fancy applications. As the scope in this report is on i-mode making use of GPRS, more detailed information can be found on http://www.3g.co.uk.
1.5 Summary
In this chapter an introduction to i-mode has been given. The product, service, technology, future developments and the business model have been explained. Three parties are seen in this model: KPN Mobile, the Content provider and the customer. In this introductory chapter basic insights into i-mode have been provided.
20
Chapter 2 Research plan
2.1 Introduction
This research plan presents an introduction to the research on KPN's i-mode, which is set forth in this report. The plan forms the starting point of the research. First some background information on i-mode is given, pointing towards the problem to be researched. In this part a link to the next section is given, containing the main question and main goal, as well as the sub questions. After this the research model is presented. This model is explained and information is given on theories used, boundaries to the research and methods used to come up with an answer to the main question. The last part of this proposal consists of an overview of the structure of the research report.
After reading this chapter it should be clear what the content of the research looks like, the way in which it is executed and what results may be expected.
2.2 Background
An introduction to i-mode was given in the introductory section. The idea within KPN Mobile is that every moment of the day can be an i-mode moment for the end-user: for almost everything the end user does in his daily life, i-mode can be of help to him (see box 2.1).
Box 2.1: example of service applications
Since the introduction of i-mode many new users have been welcomed. Most of these users use i-mode on a regular basis with all kinds of motives and are mentioned as active users. The top three of the most popular services for these active users are weather forecast (Meteo Consult), ringtones (538 Ringtones) and news (Teletekst). There are also users, who were previously active but haven't used i-mode for a period longer than one month; they are called non-active users.
A new customer gets an offer to use i-mode for free (or for a small fee) during the first two or three months. After purchasing i-mode a lot of customers start to get to know i-mode and in that way get the (free) opportunity to use i-mode without restrictions due to budget.
A lot of focus on research within KPN is put on the acquisition of new customers, as a clear goal of 1,000,000 i-mode users and subscriptions at the end of 2003 is set (a collective goal for Germany, Belgium and The Netherlands). This goal is of enormous importance to KPN as this is seen as the ultimate test for i-mode in Europe, indicating its chance to survive in the coming years (International Herald Tribune, 2003).
In contrast to this issue, not so much attention has been paid to the retention of current active customers. After the acquisition of customers in 2003 this is expected to be the most important issue, the main 'theme' for 2004 within KPN (from KPN employees). A lot of the To give some examples: a person wanting to avoid traffic jams can use the relevant services for this purpose; while waiting at the bus stop another person has something to do without getting bored; looking for information on what to cook tonight, somebody finds useful recipes, while another person writes an i-mail to his mother when no
behavior of the active customers is quite unknown. It is therefore of interest to KPN Mobile to gain insight into what moves these customers, i.e. what do they use on i-mode and why or how do they act and what are they looking for. Overall the main idea is to find out and understand what goes on in the head of the current active i-mode user and to gain insight into the behavior of current active users in this way. It is important to understand how usage can be stimulated, as the active users are of value to KPN, especially on the long term.
From the start KPN has invested a lot of money in every new customer by providing phone subsidies, promotional activities and usage subventions. To earn money out of the customer in the long term it is necessary for KPN that the customer does make use of KPN services. Money is earned with i-mode when the end-user uses data on a frequent basis, as the end-user pays for the used bytes. The earnings are expressed in average revenue per user (ARPU).
The question is why it is so important to understand the current active user. It is known that KPN is a company very committed to technology (from KPN employees, 2003). It designs products for end-users with the idea of being of help to this user. Although ideas and products seem to be quite logical and user-friendly, it appears that the customer does not always see it that way. What is sometimes (or even more often) forgotten is that it is the end-user who has to use the product and that it is also the current active user who is the key to earning money out of this product.
In line with the awareness of the relevance of customers it is essential to know and understand how the end-user uses i-mode in order to take action in a good direction and to give a boost to the usage in case of opportunities seen. Kotler (2000) indicates that customers will buy products from the company that sells the products with the highest perceived value. This implicates the importance of serving the customer in an optimal way. Thus, knowing more about current customers will help to serve them in a better way and understand their needs. It is necessary to gain an insight into the extent to which every moment really is an i-mode moment. Moreover, understanding current customers now will help KPN understand them in the future. As indicated, knowledge on current customers is rather limited. A better understanding can potentially lead to higher earnings for KPN in the end.
2.3 Problem statement
A general indication of the problem-area for KPN Mobile was presented above. The research to be done here has the character of a management supportive research (De Leeuw, 1996). In this kind of research the problem statement consists of a main goal (research objective), a main question and the conditions for the research. The main question is split up into sub questions. Essential elements in this type of research are a properly chosen theoretical framework and empirical fieldwork in order to be able to have well-founded conclusions and recommendations.
2.3.1 Research objective
As was pointed out, KPN wants to understand its current active users better in order to be able to (potentially) stimulate usage. To understand its customers KPN needs to know what factors influence the behavior of these current users. This will lead to a better understanding of current active users and higher earnings in the end.
The main goal in this research is the following:
22
Defining the ways in which KPN Mobile can influence the factors driving the i-mode behavior of current active users in order to stimulate usage.
2.3.2 Main question
The main question in this research is:
In what ways can KPN Mobile stimulate the i-mode usage of the current active user, based on the factors that influence usage?
2.3.3 Sub questions
The following sub-questions are used to achieve the goal mentioned before. These will be further explained in the section with the name 'explanation of the model'.
1. What does the current usage look like from a company point of view?*
2. What are the effects of current stimuli on the usage of current active users?*
3. In what way do internal customer factors influence the i-mode behavior of current active users?
4. In what way do external customer factors influence the i-mode behavior of current active users?
5. What alternatives can be pointed out to influence usage and which of these are attractive to use?
* Due to the confidential character of this question, the answer is left out in this publicly available report. An answer is provided only to KPN.
2.3.4 Definitions
The following words are frequently used in this research. An exact definition is given in order to have a clear and one-way understanding of their meaning.
i-mode
i-mode is defined as mobile data services and mail applications on the mobile phone.
Making phone calls and sending SMS are also possible with the phone, but are not included in the definition.
Usage
Usage can be defined in two ways. First of all it can be indicated as a number, defined in terms of Kilobytes or Megabytes. Secondly, in a 'softer' way usage is defined as using i- mode as well as i-mail as a part of daily life. The unofficial portal will also be taken into consideration in this definition of usage. Usage can also consist of browsing the portal (surfing). This second definition is a more qualitative indication.
Current active users
i-mode users that have used i-mode for more than three months
Customer
A customer in this research is an active i-mode user who was activated in March 2003 or earlier and still used i-mode in May 2003. This choice is further explained in paragraph 5.2 of this chapter. Although the Content Provider can also be seen as a customer, this research will not do so and will not study the CP. The end-user is the focus in this research.
Non-active users are also not subject to focus.
In this report the customer is mainly referred to in a masculine form. This is done to keep the writing consistent, without discriminating or excluding the opposite gender. With customer both male and female customers are indicated.
Stimulus
A stimulus is any action taken to stimulate usage (in this context). The result strived for is more frequent use or more extensive use.
Consumer behavior
Many definitions can be given here. Wilkie is one of the authors who provides a complete and comprehensive definition. Wilkie (1990) defines this term as follows: 'The activities that
24
people engage in when selecting, purchasing and using products and services so as to satisfy needs and desires. Such activities involve mental and emotional processes, in addition to physical actions'. This definition will be used in this research. The focus in this report is on the part of the definition on using the product/service, and not on the acquisition process. The usage process can, however, be seen as a continuous process of selecting, purchasing (using bytes or paying for content) and using the product, which repeats itself every time the product is made use of.
Internal customer factors
Wilkie (1990) splits consumer behavior up into two areas. First of all internal customer factors are pointed out as 'the building blocks' of consumer behavior, which guide the users of i-mode in their actions as consumers. This concerns decision-making, motivation, perception and other issues trying to explain and understand consumers from inside.
External customer factors
Many authors, Wilkie included, point out that consumer behavior is adaptive in nature, meaning that consumers adapt to the situations that surround them. This implicates that consumers are influenced in their decision-making by external factors. These can, for example, be social, cultural and situational.
Company or operator point of view and customer point of view
Both points of view take a different starting point, i.e. the company or the customer. When one of these is mentioned this means that the other point of view is taken into account to a lesser extent.
2.4 Conceptual model
The use of the stated sub questions is clarified by presenting the conceptual model, which will be used in this research. This will be the guide to achieve the stated goal. The model clarifies what elements play a role in this research and also what the relation is between these elements. According to De Leeuw (1996) the conceptual model provides the general view that forms the basis of the research. Van der Zwaan (1990) states that the 'views' given in the conceptual model are related to the concepts and the relations between the concepts. The way in which this model and the sub questions are built is discussed in the coming sections.
Current usage
Current usage-stimuli
External influences on
customer Usage from
internal customer perspective
W ays to influence
Higher usage
Motivation Personal
Perception Value
Knowledge
Ext. conditions Situational Social + cultural Marketing + PR Factors of influence
Figure 2.1: research model for this research
26
2.4.1 Background information of the model and its limitations
De Leeuw (1996) indicates that models are very important tools for a researcher. A model is a representation of a system and can therefore be seen as a system itself. Van der Zwaan indicates that presenting the model is important but the limitations that are of relevance for the model should also be precisely indicated. The sort of model that is built is an abstract model of a concrete system.
The goal of the model is stated as 'to be of assistance in studying and resolving the given problem'. This is a very general goal, but other goals can be seen too. One of these is providing an overview of the process to follow in order to do the research in a proper way. The practical goal for this model is to find ways to stimulate usage leading to a substantial higher usage.
The boundaries of the research are given by the dotted box, which excludes higher usage (limitation). Although this is an effect to be aimed at, this is not the area to be researched within the scope of this report. It is very important to keep in mind that only those aspects that are stated within the model are dealt with. More relations can be seen, but these are not researched. In the research ways to influence are investigated, which can be seen as the route to walk. During this route some aspects have to be studied to find a solution.
The aspect system to be studied is the usage of i-mode. The sub system of relevance here is the product i-mode. The phase system consists of current active users and aims at increasing usage.
2.4.2 Explanation of the model and elaboration of the sub questions
To be able to understand and influence usage insights have to be gained into the factors driving usage. The starting point for the model is the current usage. The result of the model is higher usage.
Current usage (from a company perspective)
The starting point of view in this research is formed by understanding what the current usage of the customer looks like. An insight will be gained into how usage develops: a close look will be taken at those issues that are of relevance in studying usage, e.g. used bytes, mail-usage, subscriptions to services and other subjects. In sub question 1 the current usage will be described and analyzed. This question is useful due to fact that it shows to what extent usage develops in an optimal way and whether stimulation needs to be considered in order to increase usage. Theoretically, stimulation would not be necessary if usage develops in a perfect way. The assumption is, however, that this is not the case.
Due to the confidential character of this question, the answer is left out in this publicly available report. An answer is provided only to KPN.
The arrow that starts at the left end of the box and points to ways to influence can be seen as the way to walk that is necessary to come up with the alternatives to influence.
The three arrows touching this arrow can be seen as stations to be visited in order to acquire the relevant knowledge.
Current usage-stimuli (from a company perspective)
Alsem (1998) indicates that an evaluation of the current (marketing) strategy forms the basis to formulate a new strategy. In this context it is essential in this research to understand what the current strategy concerning the stimulation of usage looks like. In this
way a good understanding of the current situation is acquired. The information coming from the box in the model, corresponding to sub question 2 is of relevance to finding potential ways to influence usage, which will be answered in sub question 5. The question is useful as it evaluates current stimulating activities and shows what current methods can be applied in stimulating usage. Of those actions where the effect is clear, these can be used to be of help in answering sub question 5.
Due to the confidential character of this question, the answer is left out in this publicly available report. An answer is provided only to KPN.
Usage from internal customer perspective (from a customer perspective)
Wilkie (1990) indicates that to understand the behavior of a consumer, he needs to be analyzed from two points of view. First of all an internal perspective views the consumer from an internal decision-making point of view. Here it is essential to understand what goes on in the consumer’s mind. Relevant issues in this case are, for example, motivation, valuation, knowledge and perception. Sub question 3 will go deeper into these issues.
28
External influences on customer (from a customer perspective)
The second way of looking at the consumer, as indicated by Wilkie, is from an external focused point of view. This way of looking considers all influences that are exerted on the consumer by his environment. Issues here are marketing, situational, social and external influences. De Leeuw indicates this two-perspective way of looking as Wilkie does as using different pairs of glasses to form a good analysis. This is discussed in sub question 4.
Within the model the external and internal influences touch each other. This indicates some relation with each other. As was pointed out, both sorts of factors are a way of looking. This means that in some cases an overlap will be seen: a motivation, for example, can have to do with a social influence. This is the first reason for the 'contact'. The second one is that some relationship may be expected to the importance of an issue: to give an example, when there is no knowledge, this will have consequences for the motivation as well as for the perception and the valuation. However, the choice in this research has been made for active users, so this influence is limited. Still, serious attention has to be paid to this issue.
Ways to influence (from both company and customer perspectives)
After dealing with the boxes that correspond to sub questions 1 to 4, this part will deal with the ways to influence. The acquired information will be the input to formulate relevant ways to influence. The factors of influence are found in the previous part of the research and are now put together. Those alternatives that are attractive to use are found by evaluating these on the basis of criteria. These criteria are discussed later.
Higher usage
When the found ways of influencing are applied, a higher usage should be seen. This is also the goal of the research, namely to define the ways in which KPN Mobile can influence the factors that drive the behavior current active users. The biggest dotted box around the model gives the boundaries of this research. Higher usage is the final goal, this box is mentioned but it is not a part of the research-focus. It is not a goal to measure the effectiveness after implementation and because of this the box is not within the boundaries of the research.
2.5 Research methods
To be able to give an answer to the main research question several research methods are used in this report. First the used methods will be explained and the second part consists of describing the technique used per sub question.
In this research two kinds of research-methods are used: desk research and field research.
Desk research is done on the basis of written documents. Field research is done on the basis of acquired experience in the field (De Leeuw, 1996).
2.5.1 Desk research
The first type of research is based on available documents. De Leeuw (1996) points out that for this kind of research three different sources can be used: scientific literature, internal documents and external documents. The following documents are used in this research.
Internal documents
Internal documents on KPN Mobile Internal documents on i-mode
Internal documents on developments in the market
Internal document in the form of market research performed for KPN by for example Blauw or TNO
Internet and intranet pages of KPN (Agora and Mike)
External documents
Internet-pages of competitors
Discussion forums and opinion sites as W2Forum and Forrester Marketing Tribune, Adformatie and other magazines
Scientific literature
This consists of scientific theories on and insights into consumer behavior, adoption theories, marketing communication and other subjects. A full list of sources can be found in the appendix.
2.5.2 Field research
The second method is done by making use of actors in the field: in this research users of i- mode are these actors. Saunders (2000) indicates that in those situations in which no information is available, explorative qualitative research needs to be done. Field research is necessary due to the fact that essential information is not available within KPN.
Qualitative research is defined as unstructured explorative research among small samples with the purpose to gain an insight into a certain area and to also understand this (Saunders, 2000). Explorative research is especially useful for understanding motives and knowledge levels. Another advantage of this type of research is that it enables the researcher to go deeply into the subject in order to get deeper answers than the most superficial and to be expected ones. The most relevant method in this case is the use of focus groups.
Focus groups
In this field research the choice is made for focus groups. Focus groups involve open- ended interviews with groups of five to eight people on specially targeted or focused issues. The idea of focus groups is that interactions are kept focused allowing individual perspectives and experiences to emerge (Patton, 2002). Focus groups have been developed as a recognition that many consumer decisions are made in a social context.
This form of field research can best be seen as an interview. One advantage of focus groups is that unlike in one-to-one interviews participants get to hear each other's responses and will make additional comments beyond their own original responses when they hear what other people have to say. The result that can be achieved is getting high- quality data in a social context (Patton, 2002). The interaction that can be seen by means of this method can lead to additional information that is more difficult to find in one-to- one situations. The questions in this research are rather broad and not always easy to answer for the i-mode user. This method makes it likely that relatively deep information is found.
The potential risk of this method lies in a situation when a group is put together the members of which do not know each other. Although the group-effects can be interesting, they may also limit some group members in answering questions and provide an insight. Another risk is the dominance of certain group members: these can influence the outcomes to a greater or lesser extent. It is very important to keep group behavior in mind when making use of outcomes. In addition, the analysis needs to be properly executed in order to use findings. All risks are limited when a professional and experienced focus groups moderator is engaged.
30
To be certain that all issues have been discussed, a checklist is used (Saunders, 2000). By means of a checklist all subjects can be discussed without being limited to a predeveloped structure and ranking of questions. Due to the fact that the questions are not fully written down, flexible questions can be asked in a way appropriate for the situation. By working with a checklist there is also room for other issues that are not directly seen within a predetermined list of questions.
Profile discussion
The sample groups of persons participating in the research were contacted from a customer file of KPN. Due to considerations in budget, trustworthiness and time, the choice was made to have two sessions of focus groups. To fill in these groups, the next choice was to have two different sorts of participants: light and heavy users. Although many choices could have been made, the assumption within KPN that differences between users play an important role in relation to usage has led to this choice. By means of this distinction, a behavioral exploration as in this research can potentially lead to differences between users, but will certainly lead to insights, even when these differences do not exist.
To be sure that the participants would show a rather ‘normal’ usage pattern, not being influenced by promotional start-up actions, the choice was made to have participants who have used i-mode for several months (activation in March 2003 or earlier). As said, the participants are active users, as these are the focus of this research. Although non- active users can also lead to valuable information on usage, these are left out, again due to given limitations. The participants themselves do the bill payment, as this will lead to more involved users that will potentially also show the influence of price on usage. Due to budget, time and other researches performed by KPN, the choice was made for the city of Utrecht to select participants. Light users are defined to use at least 50 KB to exclude users that have used i-mode by accident by pressing the button. The maximum to be classified as light users is a use of 500 KB. This indication is also used within KPN and is therefore copied here. The month of usage measurement is May 2003.
In total, the following background of persons in the file was chosen (group 1):
Product user: i-mode
Status of the user: active user
Usage in the month of May: between 50 and 500 KB Activation month: March 2003 or earlier
Bill payment: i-mode user also pays the bill Domicile: city of Utrecht
Per person on the list the following information was available:
Name Address Place Age
Cellular phone-number Hi or KPN subscription i-mode activation month
Usage in the month of May 2003
Group 2 consists of persons with the same background and information, but with the difference of having used 501 KB or more in May 2003.
The fieldwork takes place in two focus groups. First the lighter user group participates, next is the heavier user group. The results can be compared in their differences. The goal of this qualitative research is to gain an insight into the factors that of influence the usage of the active customer. The main question is: in what way do factors play a role in the usage of the customer?
The Millward Brown/Centrum has executed the qualitative research on the 21st of August 2003. The role for the researcher is to deliver the input for the research, as well as providing the necessary checklist. The analysis of the fieldwork has been done by the researcher in cooperation with the research company.
In addition to the field research some employees within KPN were interviewed. They are marketing managers, content managers, portal managers, CRM managers and research managers. By means of interviews with these experts within KPN Mobile helpful information was found to be of use as input in this research.
2.5.3 Data acquisition technique per sub question
To come up with an answer to the main question, the question was split up into sub questions. Every sub question forms a part of the research and needs its own data acquisition technique. As the model and research are based on theoretical literature, this scientific source is of relevance to answering each sub question.
32
Sub question 1
This sub question goes deeply into the current usage of i-mode. As this information is not available in a comprehensive document at the moment of research, it needs to be collected on the basis of current relevant internal and external documents, as well as interviews with experts in this area within KPN Mobile.
Sub question 2
This sub question concerns analyzing current usage stimuli. As most of this information is available in administration systems within KPN Mobile, this question can be answered by doing desk research making use of internal documents. Interviews can provide insights into the issues of which direct and relevant information is missing.
Sub questions 3 and 4
The main data acquisition method here is by using focus groups with customers. These focus groups have an open, in-depth character. Saunders (2000) indicates that this type of interviewing is of special relevance in researching behavior. This type of interview and this way of looking for information can be very helpful to 'find out what is happening and to seek new insights'. With the help of a spider-diagram a comparison is made between the light and heavy users on the basis of some values that the participants in the research provided a score to. These are ten values based on the terms mobile and personal relevance as provided by KPN (KPN, internal document, 2003).
External as well as internal documents provide links to fill in this part. Using relevant scientific insights helps in doing proper analyses of the findings.
Sub question 5
This last sub question is investigated both on the basis of desk research and field research.
As this question forms an important step towards outcomes, its explanation is rather extensive. When the results of sub questions 1 to 4 are known, these will be used as input to define alternatives. The translation into attractiveness is done with the help of scientific sources.
After the analysis of the behavior of the active user the factors are found that may influence the behavior of the active user in some way. The following step is that the translation has to be made into potentially useful alternatives. This translation can be smoothened with the help of an extra translation step. When the influences of different factors are clear, the extra step consists of analyzing these findings: which factors are limitations to make (more) use of the product? When these limitations are pointed out, they form the input for the generation of ideas together with the results of sub questions 1 and 2. Ideas are generated by means of resolving these limitations during brainstorm sessions. Alsem indicates that for this purpose a brainstorm can be very helpful in order to stimulate creative thinking.
When different alternatives are found, based on the previous research on active users and brainstorm sessions, a manner should be found to judge these alternatives. Not every option may be a real possibility for KPN, due to different factors. This process of selecting has to be performed very precisely and critically, as different involved parties and areas have to be taken into account. Not only do the targets of the company need to be linked to the relevance of options, internal and external success-possibilities have to be judged as well. In scientific literature many authors only take the own company targets into account, paying no attention to the mentioned internal and external factors.
Frambach, contrary to this, believes that (strategic) alternatives need be considered in an open way, taking three general criteria into account. These are suitability, feasibility and acceptability (Frambach, 1999). Suitability refers to the extent to which the scenario is a solution to the stated problem. Suitability also refers to the extent to which the alternative
