Measuring Relationship Quality towards the Generation Y Market in the Mobile Telecommunications Industry - an Empirical Study

By Mirpuri, Dimple G.; Narwani, Sangeeta A. | Journal of Services Research, October 1, 2012 | Go to article overview

Measuring Relationship Quality towards the Generation Y Market in the Mobile Telecommunications Industry - an Empirical Study


Mirpuri, Dimple G., Narwani, Sangeeta A., Journal of Services Research


INTRODUCTION

Keen competition in the mobile telecommunications industry since the early 1990s has accelerated considerably (Bohlin et al, 2004). The overall mobile telecommunications industry has an annual revenue of US$900 billion and holds about 1.5% of the world's GDP (Vodafone Group Plc Annual report, 2011). Over 80% of the world's population has a mobile phone which is about 5.6 billion consumers worldwide and approximately 75% of these consumers are in emerging markets like India and China (Vodafone Group Plc Annual report, 2011). This change has led to many mobile telecommunications service firms, in both B2B and B2C configurations, to focus on building long term relationship with their consumers.

The specific direction taken was to build strategies upon the constructs of relationship quality which has been studied in a variety of different industries including tourism and hospitality, banking, lifelong learning and other general services (Roberts et al, 2003; Narwani, 2007; Liang and Wang, 2007; Martin-Consuegra et al, 2006; Leverin and Liljander, 2006; Wang et al, 2004; Xevelonakis, 2005; Jang et al, 2006; Harker, 1999; Jham and Khan, 2008). This research builds upon a framework of relationship quality constructs and measures the variables and their links to customer loyalty particularly towards young consumers.

YOUNG CONSUMERS

The Generation Y (also known as the 'now' generation or 'echo boomers' include a younger group of consumers that are between the ages of 18- 31 years of age. This group of consumers are a very important market to businesses today because of their large spending power (Hedrick-Wong, 2008). The youth population in many Asian Markets are an important and affluent part of society including in emerging markets like India and China (Hedrick-Wong, 2008). In Hong Kong, where this study is taking place, the youth are a very profitable market (Hedrick-Wong, 2008). The per-capita discretionary spending of Hong Kong's Young Premium Consumers is between US$3300-US$4500 and is forecasted to increase to US$4900-US$7300 by 2016 (Hedrick-Wong, 2008). They have a very unique behavior to the older generations with research showing that a lot of what they purchase represents their self-expression (Hendrick-Wong, 2008). Therefore they are a group that craves individualistic style (Twenge, 2006). So the products and services they tend to choose represent their selfimage (Twenge, 2006). They are comfortable with technology and most of their socializing takes place online. Their mobile devices are a part of their personal selves and a mobile telecommunication service that connects them with the world and people around them is a vital companion to them. Due to their lack of commitments, these young people tend to spend more for their mobile lifestyles (Acikalin et al, 2009). More than 70% of them cannot do without their phones as they believe it expresses their identity (Haste, 2005). They also use their mobile devices to communicate in many different ways. For example, in Britain, over 30% of them use their mobile phones to surf the internet and text their friends (Haste, 2005). In Asia, the forecast is that these young mobile users will spend over US$13 billion on data services including mobile tv and surfing the web (O'Doherty et al, 2007). It is clear that globally the young consumer is a very important market for mobile telecommunications firms. Therefore firms in this industry must focus on this generation as a key objective for growth and sustainable competitive advantage.

RELATIONSHIP MARKETING

The term Relationship Marketing (RM) was coined in 1983 by Leonard Berry, it has over 26 different definitions (Harker, 1999). These definitions however have similar terminology including attracting, maintaining, enhancing profitable relationships and terminating unprofitable ones (Gronoos, 1994; Harker, 1999). At that time Relationship Marketing was said to be a paradigm shiftin Marketing (Ballantyne et al, 2003; Gronroos, 1994; Gummesson, 1997; Palmer, 1996). …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Measuring Relationship Quality towards the Generation Y Market in the Mobile Telecommunications Industry - an Empirical Study
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.