A Closer Look at Direct Carrier Billing: Identifying the Determinants of Purchase and Use of a Mobile Game

A Closer Look at Direct Carrier Billing: Identifying the Determinants of Purchase and Use of a Mobile Game

Lorena Herrera López
Copyright: © 2020 |Pages: 23
DOI: 10.4018/IJOM.2020100102
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Abstract

The impulse to digitalization by telecom operators requires the commercialization of over-the-top services (OTT) based on the fine understanding and prediction of customer behaviour through pattern recognition involving big data, resulting in an essential part of web analytics and digital marketing. The objective of this research is to analyse factors influencing the purchase and use of a mobile game commercialized by a mobile network operator (MNO), through different digital marketing channels and using direct carrier billing (DCB) as payment channel. The novelty contribution of this study is twofold. Firstly, it assesses determinants related to the purchase and use of a mobile service through the analysis of variables identified in the scientific literature's review. In addition, it also incorporates a set of variables based on data retrieved from big data analytics. Secondly, this research analyses the willingness of consumers to pay through DCB.
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1. Introduction

The rising interest that telecommunication network operators have shown in digitalization is displayed by distributing OTT services (Ovum 2018b, 2018c, 2018d ; Yang M. et al., 2019; Asghari M., et al., 2019) that leverage telco assets in new areas (e.g., health, location-based services, applications) thus focusing on the mobile market as the number of smartphone users continues to grow and transition to 5G begins to unfold in markets (Ditrendia, 2019).

In this context (Vazquez, 2017), payment through DCB is an increasing option since it allows buying digital goods by means of the consumer's mobile bill or prepaid balance, through any device (smartphone, tablet, PC), helping operators to increase the ARPU (Average Revenue Per User).

Naturally, telecommunications companies actively develop digital marketing strategies to commercialize those digital services that are marketed, delivered, and accessed as part of a mobile (broadband) service; and billed and paid for via the operator's own billing system (Ovum, 2018b, 2018c, 2018d ; Yang M. et al., 2019; Asghari M., et al., 2019).

In 2020 mobile gaming will be the fastest-growing segment, but its players are least likely to spend money due to the relatively casual nature of the platform and the prevalence of free to-play titles (Newzoo, 2018).

Mobile game publishers’ monetization models are in a transition period (Yu Wei C., 2020) and they often seek commercial relationships such as revenue sharing (based on integrated carrier billing arrangements) with telecommunications companies to resell their applications beyond official stores whereby the license to use the service is granted by them directly to the customer (Ovum, 2018b, 2018c, 2018d).

For both digital service providers and telcos, it is very important to provide an excellent mobile experience supported by the understanding and prediction of customer behaviour through pattern recognition thanks to Big Data. Factors that affect gamers’ willingness to pay and use mobile games are critical aspects to be analysed (Hsin-Ke et al., 2016; Peng-Chun et al., 2017; Newzoo, 2019): age, gender, payment method, marketing channels and other diverse characteristics.

Prior studies regarding determinants of purchasing services through mobile devices suggest that trust and satisfaction, privacy factors and perceived risk are essential variables (Kuo et al., 2009).

Mobile advertising on purchase intention has been also investigated analysing variables such us relevant information, negative attitude, entertainment, gamification and credibility (Ching-Wen L., et al., 2017; Hofacker C., et al.,2016 Andres M., et al 2015).

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