This was a talk for the members of the Chartered Institute for IT. In this talk, we put technology to the side and focus, instead, on the social and psychological needs of mobile phone users.

1. BCS OXFORDSHIRE 10.10.13
Who wants 4G?
Dr. Ana Isabel Canhoto
Oxford Brookes University
www.anacanhoto.com
@canhoto
© Ana Isabel Canhoto 2013

2. • Oxford Times…
xxx
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3. • Oxford Times…
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3© Ana Isabel Canhoto 2013

4. “Set to revolutionise the way business people operate
(…) incredibly quick to send and receive emails,
download files and video call on
the move (…) Streaming HD clips
and uploading and downloading
massive files, will be all in a day‟s work.”
Source: Gill Oliver for Oxford Mail
Benefits for Business Users
4© Ana Isabel Canhoto 2013

5. “While you are waiting for something, you are stood
at the bus stop, you are at the dentist in the waiting
room, you can watch a
(football) game live now on 4G
and people will flock to that”
Source: Guy Laurence, chief executive of Vodafone UK
Benefits for Residential Users
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6. So, who wants 4G?
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7. 7© Ana Isabel Canhoto 2013

8. Value = Benefits – Costs
If Benefits > Costs
=> Value > 0
=> Buy
Consumption decision
8© Ana Isabel Canhoto 2013

9. Costs
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• Handsets
• Subscription
“I found 4G to be pretty decent with
EE but ultimately I missed my
unlimited T-mobile data and switched back.”
• Usage
“On the whole it drained my battery faster and I was
rapidly going through my 2Gb allowance.”

10. Benefits
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11. Benefits
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12. Benefits – The 3G case
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13. Roger’s framework for diffusion
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• Degree to which the innovation is perceived to be
better than the idea it supersedes
Relative
Advantage
• Degree to which the innovation is perceived to be
consistent with existing valuesCompatiblity
• Degree to which the innovation is perceived to be
difficult to understand and useComplexity
• Degree to which the innovation may be
experimented withTriability
• Degree to which the results of the innovation are
visible to othersObservability

14. Case study: telephone adoption
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“The Americans have need of the
telephone, but we do not. We
have plenty of messenger boys.”
– Sir William Preece, Chief
Engineer, British Post Office, 1878
“This telephone has too many
shortcomings to be considered as
a means of communication. The
device is of inherently no value to
us.” – Western Union internal
memo, 1876

15. Case study: telephone adoption
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• Installation and usage fees were high
• Limited reach: geography and „No one to call‟
Relative
Advantage
• „Supernatural‟ nature of technology
• Telegraph provided a permanent „hard copy‟ of a
client/loved one‟s words
Compatiblity
• A mixed bag- some concerns that would hamper adoptionComplexity
• Limited to rich peopleTriability
• A strong factor, wires depicting presence of productObservability

16. Case study: 3G adoption
16© Ana Isabel Canhoto 2013
• Required new handsets
• Text is good enough
• Expensive data access (PAYG was most popular option)
Relative
Advantage
• Stay connected, be productive, be entertained
• But „who wants to see the other person‟s face?‟ or „Why
would I want to have a camera with me all the time?‟
Compatiblity
• How could I type the www address on such a tiny screen?Complexity
• Limited – had to purchase phoneTriability
• Distinctive handsets
• Distinctive usage behaviourObservability

17. • 3G auction in UK raised
2.5% of GNP
Benefits – The 3G case
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18. Benefits – The 3G case
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19. Case study: 3G adoption
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• Everything that a normal phone does and more
• 1 device to perform the functions of 3 or more
• Clumsy screen + keyboard
Relative
Advantage
• In line with main use of phones and progression towards
digitalCompatiblity
• Better UX and interfacesComplexity
• Limited – had to purchase phoneTriability
• Distinctive handsets
• Distinctive usage behaviourObservability

20. Case study: 3G adoption
20© Ana Isabel Canhoto 2013
• Everything that a normal phone does and more
• 1 device to perform the functions of 3 or more
• Clumsy screen + keyboard
Relative
Advantage
• In line with main use of phones and progression towards
digitalCompatiblity
• Better UX and interfacesComplexity
• Limited – had to purchase phoneTriability
• Distinctive handsets
• Distinctive usage behaviourObservability

21. Roger’s framework – 4G
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Relative
Advantage
Compatiblity
Complexity
Triability
Observability

22. “The buyer chooses between different
offerings on the basis of which is perceived to
deliver the most value. Value reflects the
perceived tangible and intangible benefits and
costs to the customer…”
Kotler & Keller (2006, p25)
© Ana Isabel Canhoto 2013 22
Customer value

23. Needs vs. product attributes
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24. Maslow’s hierarchy of needs
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25. Freud:
• Conscious
(immediate awareness)
• Preconscious
(accessible memories)
• Unconscious
(drives, instincts, etc)
Theories of motivation
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Product
Reasons
for use
Cues

26. Consumption decision
26© Ana Isabel Canhoto 2013
Value = Benefits – Costs
Vi = θRi – Ci
Where:
V = Net benefit from consumption of product i
R = Gross benefit from consumption of product i
θ = Probability of successfully evaluating quality
of product i
C = Cost of product i

27. Perceived benefits
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θ ≈ 1 θ ≈ 0

28. Roger’s framework – 4G
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Relative
Advantage

29. Roger’s framework – 4G
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Relative
Advantage

30. Roger’s framework – 4G
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Relative
Advantage
„On the outskirts of cities I can pull quite
easily a good 30Mbps (…) In the centre
of cities it's much less. (…) In Westfield,
where my 3G would not work at all…
and I couldn't even
send a Whatsapp, 4G
(worked). (…) 4G has
it's advantages but in
the city centre … it
was still nothing to
shout home about.‟

31. Roger’s framework – 4G
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Relative
Advantage
Compatiblity
Complexity
Triability
Observability
Niche appeal

32. Trend 1: Together alone
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33. Trend 2: Big(ger) devices
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34. Trend 3: Sharing
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time
Usercontrolandengagement
Me, the media, right now

35. Trend 4: Cloud, streaming…
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36. Trend 5: Quantified self
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Source: https://blog.dacadoo.com/wp-content/uploads/2012/11/Sport-QuantifiedSelf_Das-Handy-ist-mein-Fitnesstrainer-1024x837.png

37. Trend 6: Web 3.0
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38. Trend 7: Mass customisation
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39. Trend 8: Research-shopper
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40. Roger’s framework – 4G
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Relative
Advantage
Compatiblity
Complexity
Triability
Observability

41. So, who wants 4G?
41© Ana Isabel Canhoto 2013

42. Relative advantage
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43. Relative advantage
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44. Tap into macro trends
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45. Who wants 4G?
Ana Isabel Canhoto
Oxford Brookes University
w: www.anacanhoto.com
t: @canhoto
e: adomingos-canhoto@brookes.ac.uk
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