Impact of switching costs and network effects on adoption of mobile platforms

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en Dzhain, Nikita 2014-05-22T07:09:46Z 2014-05-22T07:09:46Z 2014
dc.description.abstract Objectives of the Study: The purpose of this thesis is to evaluate the switching costs while adopting a new mobile platform and examine the network effects on the user switching behavior of the mobile platforms. In addition, this thesis examines whether it is more difficult to shift to a new cloud service provider or mobile platform. Windows, Android and iOS are the three platforms that are analyzed in this study. Academic background and methodology: To achieve the purpose of this study the qualitative research technique involving focus group interviews was utilized. The background literature outlined current understanding of the switching costs and divided them into five categories: search costs, costs of transaction, learning costs, complementary investments and brand relationship costs. Additional concepts were defined to get better understanding of the network effects, cloud services and mobile platforms. Three largest mobile platform providers, Microsoft, Apple and Google were analyzed using the (IISIn) model. The impact of the switching costs and network effects was analyzed from the user's perspective through four different focus groups with participants from different professional occupations. Thereafter the interviews were transcribed and qualitatively analyzed. The results of this study are presented in the form of propositions that can be tested in the future research. Findings and conclusions: The research shows that the most prominent barriers when adopting new mobile platforms are: time and effort required to learn how to use the new platform, loss of non-transferable goods and services, and emotional attachments to the brand. Furthermore, user's social circle, for example family and friends, play an important role in pre-adoption decision because of recommendations through word of mouth. Members that live in the same household might adopt the same mobile platform due to greater product compatibility. The high number of application developers in a platform is crucial to retain consumers in the post-adoption phase. Specifically, lack of available applications is one of the primary causes for negative user experience that can lead to switching. Finally, there is no consensus among users if switching mobile platform is harder than switching cloud service provider. There are multiple user characteristics that determine the outcome: extent of use of the cloud services, knowledge about converters to transfer data between cloud providers and monetary investments made into a mobile platform. en
dc.format.extent 92
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.title Impact of switching costs and network effects on adoption of mobile platforms en
dc.type G2 Pro gradu, diplomityö fi Kauppakorkeakoulu fi School of Business en
dc.contributor.department Tieto- ja palvelutalouden laitos fi
dc.contributor.department Department of Information and Service Economy en
dc.subject.keyword switching costs
dc.subject.keyword mobile
dc.subject.keyword platform
dc.subject.keyword cloud
dc.subject.keyword network effects
dc.subject.keyword user
dc.subject.keyword ecosystem
dc.subject.keyword consumer behavior
dc.subject.keyword lock-in
dc.identifier.urn URN:NBN:fi:aalto-201405261915
dc.type.dcmitype text en
dc.programme.major Information Systems Science en
dc.programme.major Tietojärjestelmätiede fi
dc.type.ontasot Master's thesis en
dc.type.ontasot Pro gradu tutkielma fi
dc.subject.helecon tietojärjestelmät
dc.subject.helecon information systems
dc.subject.helecon mobiilitekniikka
dc.subject.helecon mobile technology
dc.subject.helecon palvelut
dc.subject.helecon service
dc.subject.helecon arviointi
dc.subject.helecon evaluation
dc.subject.helecon kustannukset
dc.subject.helecon costs
dc.subject.helecon kuluttajakäyttäytyminen
dc.subject.helecon consumer behaviour
dc.ethesisid 13567 2014-05-05
dc.location P1 I fi

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