Exploring the Relationship between Mobile Data Services - Business Models and End-User Adoption

Adoption of mobile data services may be analyzed within the framework of two-sided markets. Service or content providers should adopt platforms for developing, integrating and distributing mobile services and end-users should adopt the offered services as well as the user platform offered. These two markets are often analyzed separately using different theoretical perspectives and models. In this article, we propose a model for integrating the two sides of the mobile data services market. We suggest that end-users adopt services with high perceived 1 Corresponding author: Per E. Pedersen, Agder University College, Grooseveien 36, 4876 Grimstad, Norway, email: [email protected], Phone: +47 37253219, Mobile: +47 90655321 Exploring the relationship between mobile data services business models and end-user adoption 2 value. Perceived value is obtained through intrinsic and extrinsic service attributes appreciated by end-users. Intrinsic attributes are the inherent attributes of the mobile data service itself whereas extrinsic attributes are attributes of the network of users and complementary services offered. However, end-users differ with respect to their ability to assess perceived value from offered service attributes. Intrinsic and extrinsic services attributes are determined by dominant actors’ decisions along four dimensions of their business models. The model is used to propose relationships between dominant actors’ choice of business models for individual services and the end-users’ perceived value of these services. Exploring the relationship between mobile data services business models and end-user adoption 3