Are smartphones moving toward commoditization? Evidence from the Italian market

Abstract

Framing of the research: The global smartphone market may be entering a phase of commoditization, where consumers are well-informed, perceive products as (almost) interchangeable, face low switching costs, and make rational choices. Purpose of the paper: This paper investigates whether the Italian smartphone market can be considered commoditized by examining the role of individual characteristics, product attributes, and usage motivations on smartphone customer satisfaction. It also explores how these three dimensions influence the average smartphone lifespan and the number of smartphones owned, which are the main drivers of new sales in saturated markets. Methodology: We conducted an exploratory analysis on a representative sample of Italian users (N= 816). The items concerning respondents’ lifestyles, smartphone features, and usage motivations were reduced through Exploratory Factor Analysis. Hierarchical multiple linear regressions identified the predictors of the three investigated consumption outcomes. Findings: Customer satisfaction appears to be mainly driven by basic and economic product attributes and pragmatic usage motivations, suggesting a trend towards commoditization. Differently, smartphone substitution/duplication is more likely for heavy social media users (a lifestyle component), driven by symbolic and hedonic motivations. Thus, there is a portion of market demand that remains ‘non-commoditized’. Research limitations: The empirical analysis is limited to the Italian context and adults over 18 years, overlooking the younger generations and the differences in sociocultural contexts. Practical implications: Based on their market strategies, companies might either target customers with specific lifestyles and symbolic-hedonic motivations, focusing on incremental innovations and marketing centered on ‘customer intimacy’, or emphasize policies based on low prices and widespread distribution, focusing on organizational and productive efficiency and economies of scale. Originality of the paper: We conducted a pioneering study aimed at assessing the potential commoditization of the Italian smartphone market, combining the TAM and UGT to investigate consumption, also incorporating the analysis of the individual variables.