MVNO services Policy implications for promoting MVNO diffusion

5. Results
5.1. Structural paths and hypotheses tests
To test structural relationships, the hypothesized causal paths were estimated. All ten hypotheses were supported with
satisfactory levels of significance (Table 6). The results are reported and depicted in Table 5 and in Fig. 4.Theoverallfitofthe
model is sufficiently good, since the goodness-of-fit statistics are satisfactory and acceptable. The results generally support
the proposed model, illustrating the new dimension of MVNO user acceptance. The specified relationship between PU and
relative advantage (H4) was supported by the data, as indicated by a significant critical ratio (CR=3.012). Also, the
relationship between the perceived ease of use and compatibility (H6) was supported by significant critical ratio (CR=3.254).
The CR is a t-value obtained by dividing the estimate of the covariance by its standard error. According to Arbuckle (2005),
CR values larger than 1.96 and 2.32 are statistically significant at 0.05 and 0.01, respectively. Ease of use of MVNO services,
which is enhanced by compatibility, is related to reaching a higher level of positive intention (H7; CR=3.113). The usefulness
of MVNO services, which is influenced by relative advantage over MNO services, significantly affects intention to adopt
MVNO (H2; CR=4.152). Besides PU and PEoU, the switching cost was the strongest determinant of user intention for MVNO
services (H9; CR=3.913). The high effect of switching cost is in line with other significant effects (relative advantage and
compatibility). Given the factors are related concepts, we may infer the hidden relations among switching cost, relative
advantage and compatibility. Quality is also a great factor to user intention (H8; CR=2.211). Finally, there is a strong positive
relationship between social influence and intention (H10; CR=2.392).
Fig. 4 displays all the structural relationships among the studied constructs. The figure indicates that the variance in
MVNO usage explained by the model is 72 percent, which is fairly high, given that numerous factors may affect acceptance
of, and intention to use, the service. The results show that the variance in individual intentions toward accepting the MVNO
services can be explained by the large proportion of PU and PEoU, along with a large proportion of switching cost. Variance
in behavioral intention to usage behavior of the MVNO services was explained 40 percent by behavioral intention.
5.2. The effect of price sensitivity on customers’ purchase decisions
As the price variable is shown as a significant factor, it is worthwhile to consider the possible influence of price sensitivity,
that is, how price sensitivity influences customers’ purchase decisions of MVNOs. Three levels of price difference
Relative
advantage
Social
influence
Switching
cost
Perceived
quality
Compatib-
ility
*p < 0.05; ** p < 0.01
D.-H. Shin / Telecommunications Policy 34 (2010) 616–632 625
2.392*
2.211*
3.012*
-3.913**
2.356*
3.254**
4.013**
Perceived
usefulness
Behavioral
Intention
4.152**
3.113**
Perceived
ease of use
Fig. 4. Result of the research model.
2.122*
Use
behavior
Price
level
2.903*