THE MOBILE WALLET
Finding the optimal new product proposition
K
ATJA
W
OERDMAN
THE MOBILE WALLET
Finding the optimal new product proposition
Master thesis
University of Groningen
Faculty of Management and Organization Technology Management
Author: K.I. Woerdman
Student Number: 1274945
Company: KPN Mobile
Primary supervisor: Prof. Dr. Ir. F.P.J. Kuijpers Secondary supervisor: Ir. G. Henstra
Company supervisor: Ir. H. Nordkamp
Date: June 2006
The author is responsible for the content of the thesis. The copyright of the thesis is vested in the author.
A
BSTRACT
In this thesis research is done to provide KPN Mobile the optimal, realistic new product proposition for the mobile wallet in the Netherlands. A market research is used to obtain the ideal product proposition, in order to make the proposition realistic, an environmental analysis is performed.
The market research consists of a survey which has been filled out by 600 individual customers of KPN. The questions posed in this survey are based on general factors that are of influence on the success of a new product and on situation specific factors that are of influence on the success of the mobile wallet. The general factors are based on literature; the situation specific factors are based on experiences with services in Japan and the Netherlands that resemble the mobile wallet. After the questionnaire has been filled out, quantitative methods are used for analyzing the data.
The environmental analysis consists of a DESTEP analysis to gain insight in macro environmental trends that influence the mobile wallet and of a value chain analysis to investigate in which part KPN can earn money. Porter’s 5-forces finally are used to know where KPN can expect competition and what the starting point at the moment of introduction will be.
The DESTEP analysis mostly consists of desk research; the value chain analysis is based on several interviews held with companies involved.
The results show that the mobile wallet is a very promising service. Customers react positively, and indicate to be willing to pay for this service. It will take several years before the mobile wallet will be adopted by the mass, because the contactless infrastructure has to be rolled out. Public transport probably will be the first application, as the infrastructure is being rolled out already. The mobile wallet will be a substitute for plastic contactless cards. The focus of KPN should be on the public transport and on closed user groups (e.g. soccer stadiums, hospitals and offices). For KPN at this stadium it is important to initiate or cooperate in as many pilots as possible, in order to gain presence in the market.
To make the mobile wallet a success, it is important to follow an open approach, so all applications and all mobile operators can join.
P
REFACE
After an internship of ten months my thesis, and thereby my entire study, is finished. I consider myself very lucky with the environment in which I wrote this final thesis. After having lived in Groningen for four years, moving to The Hague was a big step. But from the first day at KPN, all my doubts were gone and I was positive that I would have a great time. With all the young colleagues, social activities, development possibilities and the other interns, the work atmosphere has been wonderful. I want to thank everybody I met within KPN for their interest, support, time and feedback.
Especially I would like to thank:
Frans Kuijpers for the constructive sessions, which made me think more critically about my
research and enticed me to make the most of it, Hugo for his enthusiasm and confidence, it really motivated me to make a bigger effort in getting things done, my parents and Simon for supporting me in everything I do, for respecting my decisions and for always being there for me, Guido for the freedom I had, Jaap for the non-comfort zone ‘bila’s’, all my friends for their interest, time and visits, Meggie for taking over, Patrick for the storyboards, Conny for the survey input, Koos for spamming our customers, Corneel for the relaxing coffee breaks, and finally my cubicle for making the office a ‘place to be’; Reinier for his jokes,
Joost for ensuring “no sweat”, Anton for the early weekends, Martijn for the darts
competition, and Lodewijk for all the questions.
Katja Woerdman May 2006
T
ABLEO
FC
ONTENTS 1 INTRODUCTION ...7 1.1 RESEARCH OCCASION... 7 1.2 KPN MOBILE... 7 1.3 THE MOBILE WALLET... 8 2 RESEARCH DESIGN...10 2.1 PRELIMINARY INVESTIGATION...10 2.2 RESEARCH OBJECTIVE...11 2.3 CONCEPTUAL MODEL...12 2.4 RESEARCH PROPOSAL...16 3 SURVEY DESIGN ...18 3.1 SURVEY OBJECTIVE...18 3.2 TARGET GROUP...24 3.3 SURVEY QUESTIONS...28 3.4 TESTING...32 3.5 DATA COLLECTION...32 4 SURVEY RESULTS ...33 4.1 DESCRIPTIVES...33 4.2 GENERAL REACTION...344.3 PAYMENT & LOYALTY...37
4.4 TICKETING...39 4.5 PUBLIC TRANSPORT...41 4.6 POSTER TAGGING...42 4.7 FEES...43 4.8 APPLICATIONS DISTRIBUTION...45 4.9 LEARNING...45 4.10 TECHNICAL FEATURES...46 4.11 HANDSET FEATURES...47 4.12 SEGMENTS...47 4.13 CONCLUSIONS...49 5 ENVIRONMENTAL ANALYSIS...52
5.1 MACRO ENVIRONMENTAL ANALYSIS...52
5.2 MESO ENVIRONMENTAL ANALYSIS...58
6 CONCLUSION ...71
6.1 PRODUCT CHARACTERISTICS...71
6.3 MARKETPLACE CHARACTERISTICS...75 6.4 NEXT STEPS...78 7 REFERENCES ...79 8 REFLECTION...81 9 APPENDIX ...83 9.1 USED ARTICLES...83
9.2 RATIONALE FOR THE CONCEPTUAL MODEL...87
9.3 DESTEP TRENDS...89
9.4 THEORY PORTER'S 5-FORCES...96
1
I
NTRODUCTION
1.1 R
ESEARCH OCCASIONTo get your doctorate's degree in technology management you write a thesis. In this thesis research is performed in assignment of a company, namely KPN.
KPN Mobile, the largest mobile operator in the Netherlands, closely cooperates with the largest Japanese telecom operator, namely NTT DoCoMo. NTT DoCoMo recently introduced a new service in Japan. This new service consists of a contactless mobile wallet. The service is a big success in Japan; it results in a decrease in churn (people ending their contracts) and an uptake in revenue for NTT DoCoMo. KPN Mobile is interested in this service, and wonders how the service should be introduced and what the service should look like in order to be successful in the Netherlands as well.
1.2 KPN M
OBILEKPN Mobile is part of KPN. KPN offers telecommunication services to both consumers and businesses. The company's core activities are telephony and data services through KPN's fixed network in the Netherlands, mobile telecom services in Germany, the Netherlands and Belgium and data services in Western Europe. KPN is the market leader in the major segments of the Dutch telecom market. Through E-Plus in Germany and BASE in Belgium, KPN has number-three positions in the mobile markets of these countries. As of December 2005, KPN served 20.0 million mobile customers in Germany, the Netherlands and Belgium and employed 26,598 individuals.
In mobile services KPN focuses primarily on improving the quality and quantity of its customer base and realizing solid margins and free cash flows. It also is developing and commercializing mobile data services such as i-mode.
The department within KPN Mobile for which the research is conducted is the data innovations team within Portfolio Management & Innovations (PM&I). The way KPN Mobile is organized is shown in the following organization chart1.
1
Finance Legal & Regulatory Affairs
Human Resources Internal- and external Communication
Commercial Operations ICT Wholesale Telfort KPN Mobile The Netherlands
Commercial strategy and planning Customer management
KPN Mass Market Hi
Simyo
KPN Business Market
Distribution and customer service management Corporate Sales
Trade Sales
KPN Mobile Contact Centre
Portfolio Management and Innovations Data
Voice
Product house
Portfolio management
Implementation & Process Management
This chart shows that the data team of portfolio management and innovations is part of the commercial department.
1.3 T
HE MOBILE WALLETThe mobile wallet is composed of a mobile telephone device that is equipped with a RFID (Radio Frequency Identification) chip. The RFID chip that is integrated in mobile devices is standardized and named NFC chip. NFC is short for Near Field Communication, this name is because of the read range of maximum 10 centimeters.
Mobile phones that are equipped with such a chip are able to communicate with RFID readers. With the mobile wallet everything that people currently keep in their wallets, can be integrated in their mobile phone device. For example loyalty cards, payment cards, train tickets, cinema tickets and ‘strippenkaarten’. In order to use any of these products, you only have to place your phone in front of the reader, and the appropriate product is selected automatically.
For the mobile wallet there are four interesting application areas, namely: 1. Public transport
2. Poster tagging 3. Payments & loyalty 4. Ticketing
A usage example is given in Figure 1.
2 R
ESEARCH
D
ESIGN
2.1 P
RELIMINARY INVESTIGATIONDeveloping the mobile wallet is a complex task and it involves a lot of different companies and stakeholders, therefore the soft systems methodology2 is used to for structuring.
The soft systems methodology is an organized way of tackling messy situations in the real world. It is based on systems thinking, which enables it to be highly defined and described, but is flexible in use and broad in scope.
Figure 2: Soft Systems Methodology
In this situation the activity that is undertaken is the development of a new service, namely the mobile wallet (represented as A). This is the transformation process that must be performed. The transformation process has initiators, people or organizations that had the idea to start up the transformation process (represented as B). Different actors actually perform the transformation process (represented as C). These actors all play different roles and have different objectives. The service is developed for the consumer market. So consumers play
2
Checkland & Scholes; Soft Systems Methodology in Action
A
C
Transformation Process – What does the service
look like? Actors – Who have to be
involved in the transformation process, what are their
respective roles?
B
Customers – Who are the customers of the new service? How can we make them use the service?
D
E
EnvironmentalConstraints – Which constraints are posed on this service, how can we accommodate/ overcome these?
Pressure groups – Who might have objections, how can we take these objections away?
1.1.1.1.1.1.1.1
Initiators – whose intention is it, what are their objectives?
The Mobile Wallet
1.1.1.1.1.1.1.2
Substitutes – What are the substitutes for this new service?D
part as well (represented as D). It is important to think of how to ensure usage of the new service. There are also environmental constraints posed on the transformation process (represented as E). These restrict the possibilities. Pressure groups are of importance as well (represented as F). They try to stop or slow down the transformation process. Finally the substitutes for the new service have to be taken into account (represented as G). This is represented in Figure 2: Soft Systems Methodology.
2.2 R
ESEARCH OBJECTIVEBecause of the limited time span of the internship, it is not possible to answer all the questions posed in this picture. Traditionally KPN is rather technology push oriented in contrast to market pull. since my personal interest is in market research, the focus of my thesis will be on the customer side of the picture. Asking the customers what their preferences are concerning the mobile wallet will result in an ideal product proposition. To check whether this proposition is realistic, the environment has to be described as well; a value chain analysis will be performed. The objective of this research therefore is:
'Provide the PM&I department of KPN Mobile with the optimal, realistic new product proposition for the mobile wallet in the Netherlands'
To reach this objective, the following research questions have to be answered:
1) What are the most important success factors on the success of the introduction of the
mobile wallet?
a) What are general factors that are of influence on the success of a new product?
b) What situation specific factors are of influence on the success of the mobile wallet? 2) What implications do these factors have on the new product proposition of the mobile
wallet?
a) What do the customers want?
2.3 C
ONCEPTUAL MODELThe answer to the first sub-question (What general factors are of influence on the success of a new product) will be in the form of a conceptual model that represents the factors of influence on new product performance and their mutual relations. For the development of the new model, the following articles have been used:
David H. Henard, David M. Szymanski3; Why some new products are more successful than others
Thomas Astebro, John L. Michela4; Predictors of the survival of innovations
Mitzi M. Montoya-Weiss, Roger Calantone5; Determinants of new product performance: a review and meta-analysis
Fred Langerak, Erik Jan Hultink, Henry S.J. Robben6; The impact of market orientation, product advantage, and launch proficiency on new product performance and organizational performance
R.G. Cooper, E.J. Kleinschmidt7; What separates winners from losers?
A brief description of these five articles is given in Appendix 9.1.
2.3.1 Categories of factors
On the basis of the determinants and categories used in the first three articles (Henard & Szymanski, Astebro & Michela, Montoya-Weiss & Calantone), a re-organization of these factors is performed. In these articles, more than a hundred factors are mentioned. In each article, different categories are used to group the factors. Table 1: Grouping categories shows the different categories used.
3
David H. Henard and David M. Szymanski; Why Some New Products Are More Successful Than Others; Journal of Marketing Research Vol. XXXVIII (August 2001), 362-375
4
Thomas Astebro and John L. Michela; Predictors of the Survival of Innovation; Journal of Product Innovation Management; 2005; 22: 322-355
5
Mitzi M. Montoya-Weiss and Roger Calantone; Determinants of New Product Performance: A Review and Meta-Analysis; Journal of Product Innovation Management; 1994; 11: 397-417
6
Fred Langerak, Erik Jan Hultink and Henry S.J. Robben; The Impact of Market Orientation, Product Advantage, and Launch Proficiency on New Product Performance and Organizational Performance; Journal of Product Innovation Management; 2004; 21: 79-94
7
R.G. Cooper and E.J. Kleinschmidt; New Products: What Separates Winners from Losers?; Journal of Product Innovation Management; 1987; 4: 169-184
Henard & Szymanski Astebro & Michela Montoya-Weiss & Calantone
Product Characteristics Technical Factors Market Environment
Firm Strategy Characteristics Production Factors New Product Strategy
Firm Process Characteristics Market Factors Development Process Execution
Marketplace Characteristics Risk Factors The Organization
Table 1: Grouping categories
To create the new model, the hundred factors were regrouped and a name was given to each of the groups. This resulted in the following categorization:
Product Characteristics Marketplace Characteristics Launch Characteristics
Development Process Characteristics
It is important that the categories are mutually exclusive and collectively exhaustive8. This means that every factor can be placed under only one category and that there is a category for each of the factors. While grouping the factors, there were some that couldn't be placed under these four categories. Therefore a fifth, over coupling category is created: the corporate environment. Factors in this category influence the development process characteristics. The corporate environment represents the overall strategy of the firm; this is reflected in the dedicated resources, the top-management support and the organization of the development team. In the attached Excel-file, the factors that belong to each of the categories are shown.
2.3.2 Mutual relationships
The articles used show that these categories are of influence on new product performance. But they don't show the mutual relations between these groups of factors. To get insight in the way these groups of factors influence new product performance and the mutual relations between these groups of factors, the conceptual models used in the studies of Langerak, Hultink & Robben and Cooper & Kleinschmidt are used.
Langerak, Hultink & Robben showed that in order to increase organizational performance, the new product has to perform. In their research it is also empirically shown that new product performance is dependent on the product characteristics and the launch strategy &
8
proficiency. This is shown in Figure 3: Empirically derived framework (Langerak, Hultink & Robben).
Market Orientation
Product Advantage
Launch Tactics New Product Performance Organizational Performance
Figure 3: Empirically derived framework (Langerak, Hultink & Robben)
Cooper & Kleinschmidt show the same results, but they also show the relevance of adding marketplace characteristics. The market potential and the market competitiveness have impact on the performance of the new product. This results in three groups of factors influencing new product performance: product characteristics, launch characteristics and marketplace characteristics. The marketplace characteristics consist of the consumers (market potential, demand predictability), the competitors (advantage above competitor's products, competitiveness, substitutes), and the environmental trends (e.g. demographic, economical). The product characteristics have impact on the launch characteristics as well.
Cooper & Kleinschmidt demonstrate that the development process influences the launch characteristics and the product characteristics. Development process characteristics are for example the amount of dedicated resources, the market orientation, top-management support, and whether a protocol is followed. Cooper & Kleinschmidt emphasize the importance of following a protocol and having a strong market orientation. A structured development process is of crucial importance for the new product performance.
The corporate environment determines a lot of the development process characteristics like the dedicated resources, the top-management support and the organization of the development team.
Corporate Environment Development Process Characteristics Launch Characteristics Marketplace Characteristics Product Characteristics New Product Performance Organizational Performance 3 4 2c 2b 2a 1
Figure 4: Conceptual model
2.4 R
ESEARCHP
ROPOSALSome of the categories in the conceptual model are controllable and some others are uncontrollable. The controllable factors are the launch characteristics and the product characteristics. The uncontrollable factors are the corporate environment and the marketplace characteristics.
The controllable factors can be influenced and should therefore be as closely as possible matched with customers' preferences. To get insight in customers' preferences, a survey will be used. This will result in an ideal product proposition. The uncontrollable factors pose constraints on this ideal product proposition and on the ideal launch strategy. To investigate their role and status, an environmental analysis will be used.
The product and the launch strategy have to be adapted to the target group. Determining the target group can be based on the company objectives. The firm's strategy indicates the factors that are important to the firm and the way the firm wants to make money.
Market research is used to get insight in the needs and wants of the target group concerning the mobile wallet. The data needed to conduct quantitative research will be gathered by a survey. To determine the questions for the survey, all relevant factors have to be identified. The factors considered in the existing literature are general factors of importance. Because a similar service has been introduced in Japan recently, and the precursor of this service is running already, situation specific factors are identified as well. The introduction of i-mode in both Japan and the Netherlands and the introduction of FeliCa in Japan will be analyzed so important situation specific factors can be derived.
The environmental analysis will consist of a macro environmental analysis and a meso-environmental analysis. The macro analysis is performed to describe the marketplace characteristics in the Netherlands and the implications they have for the success of the mobile wallet. The meso-analysis will show the projected value chain and roles the different parties can or will play when introducing the mobile wallet.
The results of both the market research and the environmental analysis will be combined, and together they will form the optimal, realistic new product proposition for the mobile wallet in the Netherlands.
This research design will answer the four research questions posed in paragraph 2.2. An overview of this research design is given in Figure 5: Research Proposal.
Caput
Conceptual Model Determination
Target Group
i-mode Japan & the Netherlands, FeliCa Japan
Survey Questions
Environmental
Analysis Market Research
Ideal Product Proposition Ideal Launch Strategy Realistic Product Proposition
3 S
URVEY
D
ESIGN
The objective of this thesis is to provide the portfolio management & innovations department of KPN Mobile with the optimal new product proposition for the mobile wallet in the Netherlands. The optimal proposition is influenced from two sides; the wishes of the consumers and the opportunities and constraints posed by the technique and the environment. A survey is a good way to get insight in the wishes of the consumers.
Before the survey is carried out, some preparatory work has to be conducted9. A thought-out survey enlarges the likelihood of success of the survey. A plan containing ten steps can be used to make the survey successful. The ten steps are:
1. Define the problem and explicitly state what the objectives of the survey are
2. Decide on the type and size of sampling method that is going to be used, the method for selecting the items in the sample and the survey method for collecting the data. 3. Design the research instrument that is going to be used to collect the data (frequently a
questionnaire).
4. Test the research instrument 5. Collect the data
6. If necessary edit the data
7. Tabulate and classify the information that has been collected 8. Analyze the information
9. Is a follow-up survey necessary?
10. Interpret the findings and report upon them
3.1 S
URVEYO
BJECTIVEIn order to know what factors are of relevance, the general factors of influence that have been identified in the conceptual model can be used. But situation specific factors may be of more importance. The mobile wallet has been introduced in Japan recently; lessons learned there could be useful input here.
mode can be seen as a complementary product of the mobile wallet. In the Netherlands i-mode is not as successful, as the service is in Japan. This difference may be ascribed to the differences in the product characteristics and the launch characteristics in the two countries.
9
These differences and their results are useful input for the survey topics as well, therefore the characteristics of i-mode in Japan and in the Netherlands will be described. Relevant factors will be used as input for the survey.
3.1.1 i-mode Japan & the Netherlands
The mobile wallet can be compared to i-mode, as it is a value added service on top of voice and sms. For example, with the mobile wallet installed on your phone, it is not only possible to find information on movie theatres, but to order tickets with your mobile as well. You don't have to pick up the tickets at the theatre 30 minutes before the movie starts, but you get them on your mobile. Because of the screen and the connection to a network, it is possible to pay for the tickets through your mobile and on the screen of your handset you can see where you are seated. Since there is a link between i-mode and the mobile wallet, reasons to accept or reject i-mode may be applicable to the mobile wallet as well.
3.1.1.1 Marketing message
According to Takeshi Natsuno, the founding father of i-mode, the content of i-mode is the key to the success of mode. The rich content available on mode became the key to marketing i-mode. The lesson that DoCoMo learned fast is that content and services sell, not technology. It is the services – picture messaging, easy direction finding, finance, and games – which took i-mode to the critical mass and more.10 In the Netherlands the message was: Internet services on your mobile. This created the perception that the mobile internet could be used as a substitute for the real Internet. Dutch consumers were used to Internet on their desktops: fast, cheap and a big screen. i-mode can't compete with these characteristics and was therefore no substitute for Internet as the Dutch knew it. In Japan, the marketing message around i-mode was focused on the possibilities it offers. These services included ticketing, banking, news and weather forecast on your mobile. That marketing message causes that the expectations customers get are close(r) to reality and therefore minimizes the performance gap. This makes the customers more satisfied about the service.
This experience indicates that it is important to determine the biggest advantage people see in the new service, and communicate this advantage in the marketing efforts. To find out what the biggest advantage of the mobile wallet is in the eyes of the consumer, the survey will be used.
10
3.1.1.2 Available services
The available services are an important determinant for customers to start using i-mode. The services successful in Japan are not by definition successful in the Netherlands as well.
In order to know what services are vital for a successful introduction of the mobile wallet in the Netherlands, an investigation of customer's wishes on available services will be part of the survey.
3.1.1.3 Available handsets
When i-mode was introduced in the Netherlands, only the NEC n21i was i-mode compatible. This handset had battery problems and wouldn't win the beauty contest for handsets. The features of a handset are one of the main drivers for customers to buy a certain proposition. Many people with mode compatible handsets don't even know that their handset supports i-mode. They bought the handset because of the big color screen or the built-in camera.
Since handsets turn out to be of such importance, customer's preferences on the handsets should be investigated in the survey.
3.1.1.4 Pricing
As was the case for i-mode, the pricing of a new service is crucial for the adoption. For some services people prefer a flat-fee, for other services a rate per minute or pay per byte.
Since pricing is of crucial importance, this aspect needs attention in the survey.
3.1.1.5 Learning
One out of four people in the Netherlands, who possess i-mode compatible handsets but never used i-mode, don't know their handset has i-mode functionality. Some, who do know about the availability of i-mode, don't know what i-mode is and therefore never tried it. People have to learn how to use a new service, in the shop or by a manual before use, or through a mailing after use.
To get insight in how customers want to be informed about how to use the new service, the survey is used.
3.1.2 FeliCa Japan
The mobile wallet has been introduced in Japan, and customer surveys have been conducted. Rules and results from Japan may indicate important factors for the Netherlands as well. In this paragraph these important factors will be described.
In Japan there are four golden rules regarding contactless services11:
1. A recurrent usage at launch time. Hereby is meant that the mobile wallet is used often, at least once a week. The services offered on the mobile wallet have to be services used often by the projected customers.
2. Clear functional added value. Show that the mobile wallet is better than what people have in their wallet nowadays.
3. A tool that can be trusted. Customer's money is in good hands. The contactlessness of the service makes people suspicious of fraud.
4. Universal. The mobile wallet can be used everywhere. The mobile wallet should be compatible with all readers, and readers should be available in most stores.
These are the rules the developers of the mobile wallet in Japan kept in mind during the development. When the mobile wallet was introduced, the reaction of the customers12 on the mobile wallet included the following statements:
The contactless interface has to be available battery off, so that it is possible to use it even if the battery is flat.
Mobile contactless must be multi standards, so it can be used with different readers. It must be possible that mobile handsets can be used as contactless readers in order to
exchange data in one touch.
To make sure that the mobile is not downgraded by the contactless applications, mobile operators should control contactless application download and security.
It would be nice to have i-mode additional functionalities to complete mobile contactless services and have access to on-line added value services via i-mode.
3.1.2.1 Expectations & Experiences
NTT DoCoMo asked owners of wallet phones what their image was of wallet phones before they started using theirs and after they had used theirs13.
11
Contactless workshop i-mode alliance; November 2005; Laurent Julien Bouyges Telecom; Sheet 5 12
Contactless workshop i-mode alliance; November 2005; Laurent Julien Bouyges Telecom; Sheet 12 13
Multimedia Services Department NTT DoCoMo; November 3rd 2005; Issues to consider in launching the I-mode FeliCa service (CONFIDENTIAL)
Figure 6: Results Japanese survey
The number of respondents is 4.000 before use, 1.234 respondents filled in the questionnaire after they had used the mobile wallet. The attributes of the new service on the left hand side of the diagram represent a positive image; the attributes on the right hand side are negative. This diagram makes clear that the image people had in advance is more negative than after using it. The positive attributes are more appreciated and the negative attributes turned out to be not so bad. The biggest advantage of the mobile wallet is the convenience and ease of use it brings. After calculating the top 3 points about wallet phone services, the most popular answers were found to be "It's easy to just scan my phone", then "paying for things is quick", and finally "don't have to bother taking out my wallet". These answers do not reflect the expectations the customers had before using the mobile wallet.
After calculating the top 3 negative points about wallet phone services, the most popular answers were found to be "few if any places where I can use it", then a distant runner up "few benefits such as discounts", and then "no services available that I want to use". These negative points are also different from the expectations. Consumers were afraid of fraud and the hassle
when the phone would get stolen, but after having actually used the new service, these are not the main reasons to reject using it. The objections of the customers identified seem closely related to the newness of the service. When not many people are using this service, content providers don't invest in developing applications. This is also true the other way around, if there aren't many interesting applications, customers don't see why they should use it.
3.1.2.2 Users
There is a very small group of customers who have used the services, but stopped using them. This indicates that the people, who once used the services, do see the relative advantage and therefore continue using the services. People who are not using the service at this moment planned on using the service but never have or never planned on using the service. This group consists of about 70% of all wallet phone owners. Another 27.7% is currently using the services and only 3.2% tried and stopped using the services. It seems that there is a high barrier before using the mobile wallet the first time, but after using it, people are satisfied and continue using it.
This may be an indication that more emphasis should be placed on acquiring a customer than on retaining a customer.
3.1.2.3 Places
The place where wallet phones are used the most is by far at convenience stores. 51.8% of all those surveyed said that they use wallet phones at convenience stores once a week or more. Trailing far behind are "at rental shops" (10.7%) and "at vending machines" (10.4%).
3.1.2.4 Factors for Survey
This research has revealed some situation specific factors that can be used in the survey. These include: places where wallet phones are used, usage frequency of these services, available applications (Transport, Retail, Event/Loyalty, Access control, Government ID), advantages of the mobile wallet and negative images of the mobile wallet.
These aspects will all be used as input for the survey questions.
3.1.3 Survey Objective
Now that all relevant factors have been identified, it is possible to formulate the survey objective. After analyzing the data collected through the survey, there should be clarity on the following aspects:
- Number and type of applications that should fit in the handset - Frequency of the usage of certain services
- Percentage of customers interested in the wallet phone - The application of main importance
- The biggest advantage & biggest fears of this new service
- Whether customers are willing to pay for the mobile wallet, if yes indication of the amount
- How to receive the applications
- Customer's wishes on how to be informed about the wallet phone - The preferred technical features
- Importance of handset features (what features are of main importance) - Whether the marketing strategy should be different for different segments
Different target groups should be included in the sample group; the ideal situation can be different for the different user segments. The data gathered by the survey will be analyzed and represented in percentages.
3.2 T
ARGETG
ROUPIt is important to determine the target group of a new service before developing the service. Doing this enlarges the chance that the features of the new service match the preferences of the intended users. To understand what the customers want, market research can be conducted. Not the entire market can be researched; a test sample has to be taken. This test sample should represent the intended group of customers and should therefore fall within the target group.
3.2.1 Firm Strategy
The target group of a new service is partly determined by the firm strategy. The mission statement of KPN can give a first indication of the overall strategy. KPN's mission statement is: "We are committed to providing a portfolio of modern, high quality telecommunications services to our customers. We want to help our customers to achieve their goals and to enrich their lives, whether for business or pleasure."
The department for which this research is conducted is within the business line mass market. This lays the focus for this research on applications of telecommunications services for pleasure, not for business. This restricts the target group to individual customers.
3.2.2 Test sample
The customer base of KPN mobile is relatively large compared to the other operators in the Netherlands. There is no reason to think that the customers of KPN are different from customers of other mobile operators. Therefore the test sample will be taken from the database of KPN.
To further differentiate the individual customers, segmentation variables can be used. The segmentation variables can be clustered in four groups14:
The database not only contains phone numbers, it contains customer specific information as well. In the database no subjective variables, like lifestyle, attitude, perception, and buy-intention, are available for the individual customers. Some of the objective variables like demographic variables, socio-economic variables, and loyalty are stored in the database. These variables can be used for selecting the test sample group.
3.2.2.1 Age
The research conducted in Japan shows who have used the wallet phone services and who didn't. The age group with the largest number of people who have used the service is 30-39. 34.6% of people in that age group have used the services. However the number of people in that age group who have used the services decreases more and more the nearer they are to 40. The age group with the fewest number of people who have used the service is 10-19. (21.9%) This adoption pattern is similar to the adoption of i-mode in Japan. The people who have used the service the most are men in the age group of 30-39 (39.4% of the men in this category are currently using the services).
The mobile wallet is a new to the world concept for most customers in the current base of KPN. To make sure that the majority of the people interviewed understand the idea, a selection is made based on age.
14
Prof. Dr. P.S.H. Leeflang & F.J.CH.M. van Rooy; Leerboek marketing; 1995; Page 262 Objective & General Objective & Situation specific Subjective & General Subjective & Situation Specific
The experience in Japan15 with this new product is used to determine the age group that is most open to this new product.
Usage mobile wallet per age group Japan
49,3 36,1 38,5 43,1 46,1 28,9 32,9 26,9 24,8 30,9 4 2,6 3,1 1,9 18,4 26,9 32 29 21,1 3,5 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Never planned on using the services Planned on it but never have Have used them but stopped Currently using them
This diagram shows that the new product is used most by people aged 20-49; therefore the sample group will contain people aged 50 or less only. On the basis of this analysis, the lower bound can be placed at an age of 20, but because in the Netherlands it is common to start buying your own things at the age of 18, this age will be used as lower limit.
3.2.2.2 Adoption category
When introducing a new product, the adoption grows gradually16. Consumers can be segmented to the point of time at which they adopt the new product. By doing this, adoption categories are created. There are five adoption categories distinguished.
1. Innovators: the first 2,5% of all individuals that eventually by the new product
2. Early adopters: the next 13-14% of all consumers that eventually buy the new product 3. Early majority: 34% of the adopting consumers fall within this category
4. Late majority: the group of consumers that adopt the new product after the early majority; this group consists of 34% of all consumers that eventually buy the new product as well
5. Laggards: the group of consumers that finally adopt the new product; this group comprises 16% of the consumers that adopt the new product.
This segmentation is not the same for all product categories. A person may be an innovator when the product concerned is a new type of car, but the same person can fall in the laggard
15
Multimedia Services Department NTT DoCoMo; November 3rd 2005; Issues to consider in launching the I-mode FeliCa service (CONFIDENTIAL)
16
Prof. Dr. P.S.H. Leeflang & F.J.CH.M. van Rooy; Leerboek marketing; 1995
10-19 20-29 30-39 40-49 50+
category when a new type of detergent is introduced. It is therefore more useful to define adoption categories per product class.
Taking innovators only would ensure their openness to new services like NFC on the mobile, but it is important that eventually all consumers start using this new service. When interviewing innovators only, you can develop a product that will be accepted by them quickly. But the rest of the consumers may not be attracted at all to this product, causing a weak acceptation. Therefore not only people identified as innovators will be asked to fill out the survey, but early adopters and the early majority as well. This ensures that they are open to new products and technological sophistication.
The database of KPN does not contain adoption categories to which the consumers belong. Like stated before, it is not always useful to use adoption categories identified for other products. Since the mobile wallet can be placed in the same product class as i-mode, the adoption date of i-mode can be used as representation of adoption categories for telecommunication services. In the database a variable represents the date at which customers started to use i-mode. If the adoption dates of i-mode are used to make a distinction between early adopters and late adopters, this implicates that the test sample consists of i-mode users. i-mode is not yet adopted by the majority and is still in the beginning of the adoption cycle. Because of the importance of the mobile wallet to be accepted by most Dutch customers and not only by the innovators, non i-mode users have to be included in the test sample as well.
3.2.2.3 Mobile activity
Another selection criterion has to be chosen, a criterion that represents mobile activity. The more active a user is, the more revenue the user generates for KPN. A good measure would therefore be the average revenue a user generates. This variable is available in the database, under the name ARPU (average revenue per user). The ARPU of pre-paid users is lower than the ARPU of post-paid customers. To make sure that the users selected do use their mobile phone, for pre-paid users the ARPU has to be €5,- and for post-paid customers €20,- a month. These ARPU’s are common for market research.
3.2.2.4 Test sample selection wrap-up:
Age 18-50
i-mode/non i-mode 50/50
Consumer/Business 100/0
ARPU prepaid €5, postpaid €20,
-3.2.2.5 Selection
The selection of the specific users will be done as follows: a large number of customers are selected from the database (approximately 20.000). These customers receive a sms message with the request to fill out the questionnaire on a web page. The questionnaire will be completely digitally. The answers are stored automatically in an Excel-file.
3.3 S
URVEYQ
UESTIONSThe survey questions have a direct relationship with the survey objective. To accomplish the survey objective, there have to be enough questions to be able to give clarity on the aspects of importance. The survey is targeted at Dutch consumers in order to make it understandable the questions are in Dutch. The survey is placed on a website; www.hetgemak.nl. In this paragraph the topics of the questions are represented. This is not a translation of the survey.
3.3.1 Survey topics
1. Information on the respondents to be able to identify different segments a. Gender
b. Age c. Employed d. Education level e. i-mode
f. Type of mobile contract
g. Usage frequency of mobile phone 2. Preferred handset features
a. Five most important features
b. Choice candy bar / slider / clamshell c. Brand
a. Number of plastic cards currently in wallet b. Number of plastic cards currently left at home c. Frequency of usage of the different plastic cards 4. Frequency of the usage of different services
a. Usage frequency of plastic cards b. Buy frequency of tickets
c. Frequency of transportation by public transport 5. Percentage of customers interested in the wallet phone
a. Four usage examples interested
b. If all four available on one handset interested c. Would you buy it
6. Applications of main importance
a. Order of interest four usage examples
b. Usage example with the most / biggest advantages 7. Biggest advantage & fear for this service (customers perception)
a. Advantages per usage category b. To what extent consider fear
8. Customers wishes on how to be informed about the wallet phone a. Choose between options
9. Preferred technical features
a. Mobile wallet available battery flat b. Read range
c. Confirm actions
10. Where customers want to download applications a. Choose between options
11. How customers want to pay & the amount of money they are willing to pay a. Pay base
b. Amount
c. Reasonable to pay 12. Acceptation border
a. Minimum number of acceptation points b. Compatibility with current handset
The survey consists of about 50 questions, and takes about 20 minutes to be filled out completely.
3.3.2 Explanation 'Mobile Wallet'
The survey is used to get insight in the customer's preferences regarding the mobile wallet. But before their opinion on the mobile wallet can be asked, the concept of the mobile wallet has to be explained. The survey will be an on-line survey, so the explanation has to be on the screen. It is important to explain the mobile wallet in an easy to understand manner to the projected customers. Since a picture speaks more than a hundred words and a picture takes less time to understand, it would be best to explain the mobile wallet in pictures.
The comparison of the introduction of i-mode between Japan and the Netherlands showed that technique doesn't sell, but the ease of use it brings. The pictures should not explain the technique that is used, but should show the advantage the mobile wallet brings. Therefore pictures will be used that show usage examples of situations in which the mobile wallet has clear added value.
3.4 T
ESTINGTo test whether the questionnaire is not too long, if the received data is in a format that can be handled and if the respondents understand the questions, a test survey is used.
Before the real survey was placed on the website and the sms messages were sent, some colleagues and friends have been asked to fill out the test questionnaire. The result was that there were slightly too many questions and some questions could be interpreted in different ways. These problems were solved and then the final survey was put on the website.
3.5 D
ATAC
OLLECTIONThe first batch of sms messages was sent to 10.000 customers. This resulted in 300 completely filled out questionnaires, a response rate of about 3%. To be able to generalize the results, 600 respondents are needed. Therefore another 5.000 sms messages were sent. This time only i-mode were addressed, in order to get a larger group of i-mode user respondents. The response rate of this batch was about the same as it was for the first group. To generate 600 respondents, a final batch of 5.000 customers was approached. This has resulted in an n of 600 for all answers.
4 S
URVEY
R
ESULTS
In this chapter the results of the survey are presented, hereby fulfilling the survey objectives as described in the previous chapter. This chapter provides the answer to research question 2a: "What do the customers want?".
4.1 D
ESCRIPTIVESBefore the results of the survey can be investigated, the group of respondents has to be described first. The respondents replied to three sms batches that were sent to a selection of the customer base of KPN and Hi. The three batches together consist of 20.000 phone numbers. The sms that was sent to these 20.000 customers had the following message:
“Cooperate in an on-line research now and win 2 credit notes. Surf to www.hetgemak.nl and fill out the survey. Kind regards, KPN”
4.1.1 Response rate
This incentive resulted in 600 completely filled out surveys, a response rate of 3%. Getting respondents by sending a sms with the instruction to go to a website normally shows response rates between 2% and 5%. The realized response rate is therefore normal.
4.1.2 Respondents
Figure 7: Respondent descriptives
The number of pre-paid users that filled out the survey is 150. This is enough to do statistical analysis on the group separately.
Since the number of i-mode users represented in the results is 150, statistical queries can be posed on them. The overall response was 75% non i-mode users and 25% i-mode users.
60% of the respondents is female, 40% is male. A one-sample t-test shows that the percentage female respondents is significantly higher than the number of male respondents. This has to be taken into account when deriving implications from the results.
Only people 18 to 50 were included in the target group of the sms message, this is why there are very little respondents aged 50+. The other age groups are almost evenly represented. The fact that most respondents are aged 18 to 50 has to be kept in mind when generalizing the results of the survey.
4.1.3 Missing values
Missing values originate from respondents not answering all questions. Because of the length of the survey, many respondents didn't finish the entire survey. Therefore all respondents with more than 5 missing values were excluded from the database. The respondents with 5 or less missing values are included. It is not likely that these respondents have different opinions or different background information, so the answers they did give will be taken into account.
4.1.4 Mobile phone usage
More than 90% of the respondents take their phone with them in more than 80% of the occasions in which they leave their house. This is advantageous for the success of the mobile wallet, since the mobile wallet requires you to have your mobile phone with you.
The usage of value added services like the mobile Internet and MMS is not high. Only 10% of the respondents use these services weekly. 65% of the respondents don't use these services at all. This is disadvantageous for the poster tagging application. If the customers don't use these value added services, they can't use the poster tags to receive more information either. For the three other application areas (public transport, ticketing and payments & loyalty) the mobile Internet is not necessary, but it does enable advanced services.
4.2 G
ENERALR
EACTIONIn this paragraph, two of the survey objectives will be accomplished, i.e.: Percentage of customers interested in the mobile wallet
4.2.1 Overall interest
To learn how interested the respondents are in the mobile wallet, two questions are used. The first one directly asks for their interest, the second one asks for the intention to buy a mobile wallet equipped handset. The answers to these questions are presented in the pie charts below.
Figure 8: Overall interest & buy intention
The respondents had the possibility to answer on a 7-point Likert scale. Figure 8: Overall interest & buy intention shows that more than 50% of the respondents have a positive interest in the mobile wallet. The buy intention image is very positive as well. More than half of the respondents would choose a mobile wallet handset when they replace their current handset and even more than 10% indicates to switch immediately. Important remark is that the sentence: “given that it would be available for the same price as a normal handset” was stated in the question. A cross tabulation revealed that the respondents that gave a green answer and the respondents that had a neutral interest in the wallet phone, gave a green answer as well in response to the buy intention. There is a significant correlation between answers given to the two questions.
4.2.2 Interest different applications
In the survey a distinction is made based on four different applications. In Figure 9: Respective interests, customers’ interest in the different applications is given.
Would you buy a mobile wallet compatible handset, if all services were available?
13%
51% 28%
8%
Yes, immediately Yes, for replacement No, initially not No, not at all
To what extent would you be interested in the wallet phone if all services were available?
9% 10% 10% 18% 22% 16%
15% Not interested at all Not interested Not really interested Neutral
Slightly interested Interested Very interested
Figure 9: Respective interests
For public transport, payment & loyalty and ticketing the distributions are relatively alike. In all three cases almost 50% has a positive interest in the application area and around 20% has a neutral image. For poster tagging the chart shows a different perception. Not even 30% of the respondents is positive about the possibilities this service offers, and more than 50% has a negative point of view. This indicates that poster tagging is nice to have, the three other applications offer added value.
4.2.3 Fears
In subjoined chart the negative sides of the mobile wallet are presented. The most left bar shows the biggest fear, while the most right bar represents the statement that is valued the least disadvantageous.
Losing your phone or being robbed is by far the biggest fear people have concerning the mobile wallet. This is not only clear from the chart below, but the open answers the respondents were able to give, represent the same fear. The comments that were given by the respondents indicate that entering a pin code before each action is performed is an expected safety feature. The respondents are really afraid of their mobile wallet being used unintended. Another concern that is showed in the results is that people are afraid of losing overview over their expenditures. If paying for things is easy, quick and digital you no longer have a direct view on your money. The respondents especially are concerned about youngsters, who in this way can get into debt easily. A solution to this problem has to be found in the way of an application that shows your payments over the last 4 weeks for example.
A remarkable result is the answer to the question about privacy. Every time RFID is mentioned in the newspaper or in magazines, there are groupings of people complaining about violation of privacy. With RFID it is possible to track and trace individual items. A big privacy issue was expected, but this turned out to be of relatively little concern.
Interesting as well is the fact that people think they can learn how to use this service very easily. More than 80% of the respondents don’t think of the mobile wallet to be hard to learn and difficult to use.
The biggest concern is safety, where unintentional use of the mobile wallet must be prevented. The marketing message should include a solution for this fear.
4.3 P
AYMENT& L
OYALTY4.3.1 Current usage
To get insight in the number of payment and loyalty applications that should fit in the handset, the respondents were asked about the number of plastic cards they currently have in use. The results of these questions fulfill the second research objective: “how many applications should fit in the handset?”
The payments and loyalty application is mainly focused on ease of use for the customer. There are many different companies issuing all kind of loyalty cards. Signing up to these programs often involves receiving a plastic card you have to bring with you every time you buy something at the particular shop. It is likely that people find this annoying and therefore refuse to sign up for the offered loyalty programs.
To get insight in how many cards people currently keep in their wallet, the following question was posed: “how many plastic cards do you currently have in your wallet?”
30,00 25,00 20,00 15,00 10,00 5,00 0,00
Number of cards currently in wallet 120 100 80 60 40 20 0 F re q u e n c y Mean = 7,3601 Std. Dev. = 4,07474 N = 661
95%
Figure 11: Number of cards
In order to be able to store all cards customers currently have in their wallet in 95% of the cases, there should be space for at least 15 different cards.
In the Netherlands there are three usual plastic payment methods: the most common one is the Pinpas, followed by the ChipKnip (for micro payments) and the Credit Card. The Pinpas is a debit card that is secured by a pin-code.
How often do you use your
0 10 20 30 40 50 60 70 80 90
Daily Weekly Once or twice a month Once in the 2 or 3 months Less often / not applicable PinPass ChipKnip CreditCard
Keeping in mind the golden rule of the Japanese, that applications should be used at least once a week, the Pinpas fulfils this rule for 85% of the respondents. This payment system is therefore the most interesting at this moment. The micro payment system offers potential as well, but it needs some adjustments. For the mobile wallet, the micro payment application is important; it can cause an uptake in usage of a micro payment system.
The Credit Card is currently not interesting at all, with almost 80% of the respondents not using it.
4.3.2 Advantages
For the marketing message it is important to know what the reason to buy the mobile wallet is for the target group. Therefore the respondents were asked what they like about the payments & loyalty application.
Figure 13: Payment and loyalty advantages
There is not one advantage that is much more or less valued than the other mentioned advantages. In the marketing message all advantages have to be communicated, picking one doesn’t attract all customers.
4.4 T
ICKETING4.4.1 Current usage
Ticketing is an application area with many different usage situations. It can be used for the cinema, for soccer matches, dance events, trades and for parking tickets for instance.
Just like what was done for public transport, the respondents were asked how often they attend events, go to cinemas or park their car in a car park.
Figure 14: Ticket usage
When looking at services that are used at least weekly, the car park offers the most potential customers. If the minimum usage rate is reduced to monthly, the cinemas and theatres are frequented the most. As Figure 14: Ticket usage shows, about 40% of the respondents visit car parks and cinemas/theatres at least monthly. This is a high potential customer base and therefore an interesting application area.
4.4.2 Advantages
The advantages contributed to the ticketing application are highly valued.
Figure 15: Ticketing advantages
The first statement reads: "Not having to arrive at the event 30 minutes before it starts in order to pick up my tickets and pay for them". As Figure 15: Ticketing advantages shows, this is highly valued. The other mentioned advantages are highly valued as well. Ticketing offers high added value for the customers, but has a lower user base than payments and loyalty. The
added value is easy to communicate and there is a low entrance barrier to start using the service.
4.5 P
UBLIC TRANSPORTThe Dutch public transport organizations are currently implementing a contactless chip card system for the public transport in the area of Rotterdam, to be rolled out all over the Netherlands in the near future. This is one of the first big projects concerning contactless services.
4.5.1 Current usage
Figure 16: Public transport usage is used to assess the usage frequency of the public transport of Dutch consumers.
How often do you travel by
0 10 20 30 40 50 60 70 80
Daily Weekly Once or twice a month Once in the 2 or 3 months Less often / not applicable P e rc e n ta g e Bus Train Subway
Figure 16: Public transport usage
One of the golden rules the Japanese used when introducing applications for the mobile wallet is that the projected users should use the service at least once a week. Figure 16: Public transport usage shows that about 30% of the respondents use the public transport weekly; this is the primary projected target group. There is a secondary group of about 20% that uses the public transport as well, but less often. 30% of the Dutch population aged 18 to 50 is a large target group; the public transport application seems very promising.
4.5.2 Advantages
In the survey the respondents were confronted with three possible advantages the mobile wallet could provide when using it to pay for public transport.
Figure 17: Public transport advantage
The three mentioned advantages are: "don't have to take out my wallet / bring my wallet when travelling", "am flexible in where I'm going in and out of the train / bus / subway" and the last one "only need a mobile phone to travel with public transport (no more 'strippenkaarten' or train tickets)".
The last one turned out to be the most advantageous, 64% of the respondents indicates that they think of this as an advantage.
The two other statements were less strongly supported by the respondents, showing just as many positive as negative answers. This is an indication for the marketing message that should be used when promoting the public transport application on the mobile wallet:
only one payment method that can be used instantly for any trip and any means of transport.
4.6 P
OSTER TAGGING4.6.1 Current usage
Poster tagging is a service that is not currently in use. The usage frequency of this service can therefore not be pictured at this moment.
4.6.2 Advantages
The previously presented results indicated that poster tagging is thought of as the least interesting application. The reactions to the statement "being able to receive more information easily just by scanning my mobile phone" reflect the same perception.
Figure 18: Advantage poster tagging
Only 34% of the respondents think of this attribute of the mobile wallet as an advantageous feature. 50% has a negative attitude towards poster tagging.
As indicated earlier, poster tagging is not an interesting application from the customers point of view. KPN should not actively promote this application, but just offer it as a possibility.
4.7 F
EESA very interesting part of the survey comprises customers’ willingness to pay for the mobile wallet. In the survey attention not only has been paid to the amount people are willing to pay, but to the preferred payment method as well. The results of this part of the survey will now be presented.
4.7.1 Fee base
“If you have to pay to use the mobile wallet, which of the suggested payment methods would you prefer?” The suggested payment methods are:
1. Pay as you go. This means that you pay a small amount of money every time you use any of the services of the mobile wallet.
2. Pay per application. This means that you pay a one-time fee for each application you download to your mobile phone.
3. Flat fee. Choosing for this option implies you prefer to pay a fixed amount of money each month. In exchange you can unlimitedly use as many applications as you like.
Figure 19: Preferred payment method shows that ‘pay per application’ is the least preferred payment method. Pay as you go and flat fee are almost equally chosen.
These results can be taken into account when deciding on the pricing. It is of course also possible to use combinations of the different payment methods. This should be investigated further; the
above-presented chart only is a first indication.
Figure 19: Preferred payment method
4.7.2 Fee amount
Figure 20: Payment amounts
Figure 20: Payment amounts quickly shows that people are actually willing to pay. The flat fee payment method is attractive for both KPN and the consumers. The consumers won’t have financial surprises and know what they pay. The pictures presented above show that when talking about a flat fee, only 15% of the respondents is not willing to pay, whereas this percentage is 26% for the two other means of payment. This indicates that with a flat fee people are expecting to have to pay. The pie chart also shows that as a flat fee rate, almost 75% of the respondents is willing to pay 2,00 euro or more each month for services they currently don’t (notice to) pay for.
How much are you willing to 'pay as you go'?
0,10 euro 14% 0,05 euro 32% 0,02 euro 10% 0,01 euro 18% Nothing 26%
How much are you willing to pay per application?
2,00 euro 19% 1,00 euro 23% 0,50 euro 32% Nothing 26%
How much are willing to pay as monthly flat fee rate?
5,00 euro 28% 3,00 euro 23% 2,00 euro 22% 1,00 euro 12% Nothing 15% N=264 N=102 N=234
4.8 A
PPLICATIONSD
ISTRIBUTIONA step in the value chain in which KPN can add value, and therefore earn money, is in the distribution of the various applications. There are five scenario’s identified for installing the needed application on the mobile phone.
The first one is to select the desired application in the menu of the mobile phone and to download it via the mobile Internet. The second one is to have to application installed in the store / organization that issues the application. A variant to this scenario is to go to the website of the issuing organization and send the application from there to your mobile phone. It is also possible that KPN gathers all the possible applications on his own website and customers can select the needed applications there all at once. The final possibility is to receive the application by placing your phone in front of a special poster, in which the application is stored. This poster is located in (the neighbourhood of) the issuing organisation. The respondents were asked to indicate their preferred installation method. The results are presented in the bar chart below.
46 26 14 12 2 0 5 10 15 20 25 30 35 40 45 50 On the mobile All applications on the KPN site In the concerning shop On the concerning internetpage Poster tag P e rc e n ta g e
Figure 21: Preferred installation method
For the two most preferred installation methods, KPN is in control of the distribution of the applications. Therefore KPN is in the position to be able to ask money for the distribution. The preferences of the consumers are therefore very positive for KPN.
4.9 L
EARNINGThe survey showed that most people (45%) chose for the written manual. The second answer is a website and ranked third a verbal explanation (18% and 14% respectively). The written manual is a traditional way of explaining the workings of a new product. Maybe that is why most people opted for this alternative. Another option was: “don’t explain, I’ll find out
