Location-Based Mobile Services: Case of a European Directory Service Provider - CENTRE OF DIGITAL ENTERPRISE (CODE)
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2004
CENTRE OF DIGITAL ENTERPRISE (CODE)
Location-Based Mobile Services:
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Case of a European Directory Service Provider
by
New Zealand
Minna Pura
The University of Auckland
Research Fellow
13 April 2005
(This is a short public version of the presentation)2004
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Introduction
New Zealand
“The provision of superior value and customer
loyalty may serve to be the best entry barriers that
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a firm could erect to keep competition at bay in an
age where the physical presence and high capital
costs of traditional retailing no longer
matter:”(Grewal et al., 2003, p. 398)Background of Location Based Services
2004
“Location based services (LBS) are services in which the location of
a person or an object is used to shape or focus the application or
service.” (Duri, Cole, Munson, & Christensen, 2001)
Key market driver in USA has been emergency service caller
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location. Successful applications in fleet management, people
tracking, roadside assistance.
Implementation in BtoC area has been slow.
– Low awareness of the services.
New Zealand
– Lack of interesting content.
– Lack of widely accepted payment systems.
– Lack of accuracy of location information.
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Need for more customized services for specific customer
segments.
Services need to be personalized, accurate, affordable and easy to
use. (Osman, Maquire & Tarkiainen 2003)Mobile Location Services Revenue Forecast
– Over 9 000 Million USD in Europe by the year 2005.
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(Strategy Analytics)
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New Zealand
The University of AucklandIntroduction to the Case Company’s Market
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Entertainment services dominate the mobile service
market, but new growth is sought from segments that
prefer utilitarian services. (eBird Scandinavia)
Mobile Yellow Pages are one of the most popular
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location based applications offered at the moment
throughout Europe.
Directory services offer services primarily via Internet.
WAP services including maps haven’t become popular.
New Zealand
People are promoted to try location based services first
with SMS to experience the real value of location based
search services.
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Success of mobile services depends on their ability to
create value to the customer in the right context.2004 Penetration of multimedia enabled phones
– 20 % of the population in Finland will have a camera phone
by the end of year 2005. (eBird Scandinavia report 2003)
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New Zealand
The University of AucklandExamples of location-based services
offered to consumers in Finland
Fishing permit
2004
– Order the appropriate fishing permit for the right region by SMS while fishing. The
permit is invoiced on the phone bill. 40 % of the permits were ordered via the mobile
phone in 2003.
Find your dog GPS
– Hunting, pets: Track your dog with 5 m accuracy, map, listen to the dog barking, set
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boundaries for the dog moving in the forest.
Find your friends
– Those (in the same operator’s network) who have given you permission to track
where they are, can be tracked.
New Zealand
Routing & maps
– Find the best way to get from one place to another either with driving instructions
including a map or with optimized public transportation information at a specific time.
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Ordering a taxi
– Let the taxi locate yourself and be picked up when you are not sure of the location.
Mobile Advertising
– SMS offers sent to customers in shopping malls.
– PDAs sponsored to museum visitors and tourists, advertisements pop up in specific
locations2004 EU privacy issues
EU privacy and electronic communication directive (Article 9)
– Location data can only be used with the consent of the subscriber.
– The subscriber has to be able to temporarily block the location tracking if
the consent is given for an ongoing location tracking service.
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– Only emergency services and law enforcement authorities in defence of
public and national security and for criminal investigations have permission
to use location based information without the users’ prior consent.
– Marketing messages such as SMS and MMS also require prior consent from
New Zealand
the customer in the European Union. The only exception of the privacy
and electronic communications directive is if the contact details were
obtained in the context of a sale.
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Global market requires co-operation agreements
– EU Directives cover all communication sent from or received on a public
network within the EU.The University of Auckland New Zealand CODE 2004
Theoretical BackroundCASE:
“Where is the nearest…”
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Service offered by Fonecta Ltd, a Directory Service Provider
Location based services supports the directory services:
printed directories, directory advice via telephone and self
service directories online and via mobile devices.
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“Where is the nearest…” location based service finds the
services and service providers closest to the customer,
wherever he is at each time. Search words include public and
commercial services like restaurants, hotels, banks and
New Zealand
pharmacies, post offices, cash tellers, discos, restaurants etc.
Mobile phone customers may use the service by an SMS-
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message. (send “PIZZA” to the number 16222)
The answer includes the address and contact information of
the two nearest services locations. (Offers from partner
companies could be included to the message)Earlier the same service was offered just as
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an Exclusive WAP service for Sonera’s Customers
Earlier offered as a WAP-service solely via
Sonera’s network.
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WAP-service allows scrolling down and
clicking on the Etsin-menu, thus no keywords
or access numbers need to be remembered.
Additionally, the customers with the latest
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mobile phones supporting MMS-technology
may request to see the location of service
provider on a colour map.
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Wider reach needed for the service to
become successful. WAP has not become
popular. Multimedia phone diffusion still low.Concluding Managerial Implications
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Service providers should choose the type of services that
suit their target group best or choose to create attracting
content to the customer segment they wish to attract and
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keep.
Reaching the critical mass of customers and crossing the
border from early adopters to attract later adopters
requires good knowledge of the underlying needs and value
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perceptions of the specific segments.
The University of AucklandDiscussion Themes
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1. Should offers or sweepstakes from partner companies be
included in the “where is the nearest” result message?
– For example a possibility to order e.g. a Pizza with a reply message.
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– Any experiences from consumer response in similar cases?
2. Price not an issue in context sensitive services?
– Where is the nearest € 0,70 / search in Finland.
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3. How to attract different types of customers on the innovation
adoption life cycle?
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– Portals like Vodafone Live?
– Direct marketing to most valuable customers?
– Events?
– Other?KEEP IT SIMPLE
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“Early adopters are attracted by a revolution, but most people
would want evolution” (Hoffmeister and Oudghiri, 2004 p. 15).
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Offer something that your customers value and that is
guaranteed to work reliably in the relevant situational context!
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Questions, Comments, Feed back?
Minna Pura
The University of Auckland
+64 9 373 7599 ext. 84516
m.pura@auckland.ac.nz
minna.pura@hanken.fiYou can also read
