Utilitarian or entertainment? Value obtained from mobile phones by users in low socioeconomic strata in emerging markets

This research empirically investigates the differential roles of utility and entertainment on the value obtained from the use of mobile phones by users belonging to low-income groups in emerging markets.

This research reports the findings from an investigation that obtains data through a survey of mobile phone users from urban and rural areas across five emerging markets. Structural equation modeling is used to analyze the data obtained.

Study findings demonstrate that users obtain utility, social as well as entertainment value from mobile phones.

This investigation uses the capability approach for conceptualizing the capabilities obtained from mobile phones by users from lower socioeconomic strata, a theoretical lens that is particularly suited for explaining behavior that may represent well-being of the user group.

Managers may explore whether the platform of entertainment is a suitable vehicle for offering additional services. This study’s findings also suggest that creating value for customers should be a primary concern in emerging markets, similar to that in developed markets.

This research is among a few that report investigations into the differential roles of utility and entertainment on the value obtained from mobile phones. This study also presents differences in terms of: urban versus rural, younger versus older and male versus female subgroups. This research presents a large-scale multicountry empirical study investigating mobile phone use by users from lower socioeconomic groups in emerging markets.