The Internet Encyclopedia (Volume 3)

P1: B-13

Kwok WL040/Bidgoli-Vol III-Ch-68 August 14, 2003 18:9 Char Count= 0

WIRELESSCONSUMERBEHAVIOR 855

Consequently, it facilitates marketers to strengthen their

branding strategies because the Web enable firms to

communicate instantly with each customer.

Consumer Decision-Making

Process for Wireless

Adoption of wireless services can be divided into five

stages (Steuernagel, 1999):

1. Awareness stage—information obtained from televi-
   sion advertisement, mass media, observation of users.


2. Interest stage—attention and interest are stimulated by
   multiple exposures to users and ads.


3. Evaluation stage—perceived benefits (e.g., job or
   lifestyle, emergency, security), making enquiries for
   different models of handsets.


4. Trial stage—through friends or promotional demon-
   strations.


5. Adoption stage—customer adopts wireless service and
   continues tracking the cost—benefit relationship of the
   adoption.

Segmentation Variables for Wireless

Consumer Markets

Three major segmentation variables have been identified

for wireless consumer markets (Lamont, 2001):

1. Demographic—generation (e.g., Generation Y), in-
   come groups (e.g., high disposable income groups who
   can afford to pay for the wireless services), occupation
   (e.g., professional athletes).


2. Psychographic—lifestyle (e.g., high mobility, enjoying
   high-tech life, people who prefer to do everything on-
   line), personality (e.g., personal value).


3. Behavioral—benefits (e.g., seeking speed, convenient
   services, etc.), loyalty (through brand community).

Permission Marketing and Customer

Relationship

Godin and Peppers (1999) indicated the merit of per-

mission marketing is that it allows both parties to en-

joy “mutually beneficial dialogue” without worrying about

the privacy and legal issues. “Permission Marketing has

been around forever (or at least as long as dating), but

it takes advantage of new technology better than other

forms of marketing. The Internet is the greatest direct mail

medium of all time, and the low cost of frequent interac-

tion makes it ideal for Permission Marketing” (Godin &

Peppers, p. 51). Wells, Burneet, and Moriarty (2003, p. 23)

documented that this concept because many advertising

messages are regarded as interruptive. As a result, per-

mission marketing should be taken seriously as a means

to foster good customer relationships and “mutually bene-

ficial dialogue.” This concept includes the following three

principles:

1. The consumers (or audience) are in charge of the
   process.
   2. The consumers (or audience) have agreed to receive
   promotional messages.
   3. The consumers willfully sign up (i.e., willingness to
   participate).

Because consents are obtained from customers before

sending promotional messages, the perception of invasion

of personal privacy can be reduced. More important, cus-

tomers are given an opportunity to control the process of

marketing communication activities such as accepting or

rejecting an SMS promotional message. This is an effec-

tive and efficient way to attract customers’ attention and

acceptance to the advertising messages. It also enables

marketers to foster good customer relationships without

invasion of personal privacy or sending offensive SMSs.

Participation Marketing and Customer

Relationship

This concept goes beyond permission marketing, accord-

ing to Alan Rosenspan (2000), an expert in direct market-

ing. It covers the following five principles (as cited in Wells

et al., 2003, p. 24):

1. You really understand your customers (i.e., needs and
   preferences), for example, by collecting feedback from
   customers through marketing research, internal sales
   team, enquires, and customers’ complaints.


2. You provide feedback at every opportunity (i.e., to show
   your concern and customer care), for example, by mak-
   ing a call to seek subscribers’ opinions of new value-
   added services.


3. You involve customer and prospects as much as pos-
   sible (i.e., stimulate customers’ participation to build
   loyal customers, e.g., inviting customers to participate
   into charity events or public relations activities.


4. You market on customers’ schedules, for example, by
   making promotional offers, such as sending coupons
   or e-gifts (e.g., free download services) on customers’
   birthdays.


5. You make customers feel vested in your success.

Ethical and Privacy Issues in

Wireless Marketing

Similar to wired marketing (i.e. marketing activities con-

ducted through fixed telephone lines), wireless marketing

can annoy and interrupt customer’s privacy. Ethical and

privacy issues (e.g., irritation, fraud, invasion of personal

privacy) should be taken into consideration when develop-

ing the marketing strategies to foster long-term customer

relationships. Some examples of ethical and privacy

issues that can arise in the mobile environment are as

follows:

1. Irritation—sending out too many, too long SMS promo-
   tional or advertising messages to potential customers
   for pursuing location marketing strategies.


2. Fraud—making false claims such as “today is the last
   day for the special offer” when it actually isn’t, over-
   charging customers on their bills, giving “misleading”