Contractual Obligations between Mobile Service Providers and Users

Contractual Obligations between Mobile Service Providers and Users

Robert Willis (Lakehead University, Canada), Alexander Serenko (Lakehead University, Canada) and Ofir Turel (McMaster University, Canada)
DOI: 10.4018/978-1-59904-945-8.137

Abstract

The purpose of this chapter is to discuss the effect of contractual obligations between users and providers of mobile services on customer loyalty. One of the unique characteristics of mobile commerce that distinguishes it from most other goods and services is the employment of long-term contractual obligations that users have to accept to utilize the service. In terms of over-the-counter products, sold in one-time individual transactions in wellestablished markets, a strong body of knowledge exists that suggests that businesses may enhance loyalty through the improvement of quality and customer satisfaction levels. With respect to mobile commerce, however, this viewpoint may not necessarily hold true given the contractual nature of business-customer relationships.

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