|
UWSpace >
University of Waterloo >
Electronic Theses and Dissertations (UW) >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10012/7061
|
| Title: | Effects of Consumer Preferences on Endogenous Switching Costs |
| Authors: | Kwong, Raymond |
| Keywords: | Endogenous Switching Cost
Consumer Preferences |
| Approved Date: | 27-Sep-2012 |
| Date Submitted: | 2012 |
| Abstract: | The paper provides a model that assesses the set of complementary components of varying compatibility and its effect towards consumer adoption decisions. The smartphone market is a system good which utilizes the device and a set of compatible applications (apps). The amount of switching costs may vary depending upon the consumer’s decision to switch devices or across platforms. Analyzing the Android ecosystem, the process of custom ROMs (and rooting) and the large set of games, news, etc. apps justify the existence of device-specific and platform-specific apps. The model reinforces the findings of a survey conducted by UBS suggesting the retention rate (i.e. level of switch costs) of Apple users is higher than Android users. The retention among Android devices is much lower in comparison as well. The model observes that the product fragmentation and the interdependence of apps lead to the noticeably lower retention rates across Android devices and platforms. |
| Program: | Management Sciences |
| Department: | Management Sciences |
| Degree: | Master of Applied Science |
| URI: | http://hdl.handle.net/10012/7061 |
| Appears in Collections: | Faculty of Engineering Theses and Dissertations
Electronic Theses and Dissertations (UW)
|
This item is protected by original copyright
|
All items in UWSpace are protected by copyright, with all rights reserved.
|
