Consumer behavior in the Italian mobile telecommunication market

Since the 1990s, the mobile telecommunication industry has significantly extended its boundaries. The cell phone now has a multiform identity: it may become a portable computer, dedicated to professional customers; sometimes it has a few predetermined keys to allow easy use for other consumers (e.g., elderly individuals); it can take on multiple forms for entertainment and communication among young people. At the same time, the use functions have multiplied and there has been technological convergence with other media (computer, television and the Internet): besides the basics of mobile telephoning, at present the mobile phone manages short message services (SMS), multimedia messaging services (MMS), music, video games, software for professionals, photo camera, video camera, television programs, movies, and information. It supports every kind of accessory function, from the more common (alarm, calculator, etc.) to the more original: it becomes an audio guide to visit museums, a navigator for motorists, or a book narrator (downloading digital recordings of famous texts). Product design can vary from a valuable luxury item to a trendy cell phone for teenagers. It satisfies needs for relationships, but also security and affiliation; it has created new languages and new rules for community membership and interactivity. On the demand side, the evolution of mobile communication consumption is an overwhelming phenomenon, as reported in the recent international literature. In Italy, recent investigations show increasing use of the cell phone against a general dip in purchases. This paper explores the Italian demand for mobile phones through the use of a multidimensional segmentation approach. In particular, it poses the following questions: (1) Do differences exist among Italian mobile phones users leading to the identification of different market segments? (2) More specifically, is it possible and useful to describe them adopting a multidimensional approach? Thus, it aims to contribute to a better understanding of consumer behavior in Italy, by investigating the characteristics of cell phone users. A multidimensional segmentation approach was adopted, using concurrently three sets of variables: consumer/user lifestyles, use motivations and product/service attributes. Data on a national sample (1067 individuals) were collected and factor and cluster analysis were then performed on the database. The study led to the identification of three user segments, each with a diverse combination of the segmentation variables. Findings provide implications for the mobile telecommunication industry and could suggest strategic choices to mobile operators—especially cell phone producers—and constitute the basis for their strategic positioning.