Effects of Social Promotion for Customer Choice in the High Mobility of Mobile Phone Market
Authors: Javid Ahson, Hisashi Masuda
Abstract: Current mobile phone markets have becoming high mobility of mobile-phone users by standardizing the mobile phone devices. In Japan, before introducing MNP (mobile number portability), the Japanese market was saturated in between three international companies named NTT DoCoMo, KDDI au and Softbank with their specified mobile phones. The competitive condition around the mobile phone market to switch from specific to standardized mobile phones is becoming severe. However, in Japan, the current main strategy has been price competition still because the devices are well developed and the traditional mobile phone market has a low mobility of mobile-phone users. Conversely, in Pakistan, to be undertaking social promotions based on high mobility of mobile phone users. In this case, how can we develop and balance individual/social promotion in the high mobility of mobile-phone users? Mobile-carriers should understand customer preference for mobile phones and services rather than increasing their market shares. Customer retention and loyalty are important goals for mobile carrier companies. We found the equilibrium of individual/social promotion effect based on numerical simulation. Marketers can better cultivate relationships with existing customers instead of attracting new customers. We will design an optimal customer selection, formulating a distinct marketing mix and modifying the marketing organization.
Keywords: Social promotion, Individual promotion, Brand switching, Customer retention
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