Consumer Choices Based on Signals: the Case of Mobile Phone Services in Vietnam

Although it is well known that firms can use signals to inform consumers about the unobservable of their products or services in a market where asymmetric information exists, research on the role of signal characteristics in consumer choices of service brands is largely ignored. Using a choice experiment with best-worst scaling, the authors found that signal credibility, consistency, and clarity have positive impacts on consumer choices. Further, the interaction between signal clarity and credibility also affects the choice of consumers. These findings suggest that service providers should send clear, consistent, and credible signals to assist consumers in making purchase decisions.

Citation:

Tho Nguyen, Trang Nguyen, and Nigel Barrett (2006) ,"Consumer Choices Based on Signals: the Case of Mobile Phone Services in Vietnam", in AP - Asia-Pacific Advances in Consumer Research Volume 7, eds. Margaret Craig Lees, Teresa Davis, and Gary Gregory, Sydney, Australia : Association for Consumer Research, Pages: 396-400.