Using mobile services to strengthen brand relationships: The effects of SMS and MMS channel additions on brand knowledge, satisfaction, loyalty and main channel use

The purpose of this report is to study effects of SMS and MMS as channel additions on customers’ relationships with brands. Empirical studies are reported for three brands in which have added SMS and MMS as brand channel additions (FINN, TV2 and Big Brother). The main results of these studies may be summarized as follows. * SMS seems to have a more positive effect than MMS both on the variables included in the extended Relationship Investment model (Rusbult, 1980) and on main channel use. * The effects of SMS/MMS as channel additions are more positive on direct relationship investments and indirect relationship investments than on the remaining variables in the extended Rusbult model. The effects of SMS/MMS on main channel use seem to be mediated mainly by direct relationship investments made by the consumer. THE ECONOMICS OF TELECOMMUNICATIONS This report is one of a series of papers and reports on telecommunication economics published by the Institute for Research in Economics and Business Administration (SNF) as part of its telecommunication economics program. The main focus of the research program is to study the deregulation process of the telecommunication industry, and the economic and organizational consequences of changes in markets, technology and regulation. Being started in 1992, the program is now in its fourth period ending in 2005/2006. The program is financed by Telenor AS.