What WeChat can Learn from WhatsApp? Customer Value Proposition Development for Mobile Social Networking (MSN) Apps: A Case Study Approach

Journal of Theoretical and Applied Information Technology (2019) Vol.97. No 4

25 Pages Posted: 27 Mar 2019 Last revised: 15 Dec 2019

See all articles by Wong Sze Wan

Wong Sze Wan

affiliation not provided to SSRN

Omkar Dastane

Financial Training & Management Services (FTMS) College; Curtin University, Malaysia

Nurhizam Safie Mohd Satar

National University of Malaysia (UKM)

Muhamad Yusnorizam Ma’arif

Universiti Kebangsaan Malaysia

Date Written: February 28, 2019

Abstract

As a result of digital technology revolution and massive growth of smart phone usage, over 66% of world’s population (4.92 billion) is using mobile phones and over half of them are using social media. Mobile social networking (MSN) becomes one of the key communication tool, new trend, necessity and lifestyle. With information transparency, consumer value changes quickly, whilst rapid adaptation of similar offerings in the market place, it is essential for suppliers to keep pace with consumer value changes those directly affect the consumer satisfaction and loyalty. The research applies academic models and frameworks to the real life situation to develop a value proposition in the practical world by considering WeChat (1 billion active users) as the company under study and comparing it with WhatsApp (1.5 billion active users) as the leading competitor in the market. The objectives include identification of customers’ perception of a value for mobile social networking (MSN) services, followed by critical evaluation of existing value proposition of WeChat with Whatsapp to identify gap and finally to propose a new value proposition for WeChat. This paper first identifies customer perceived value (CPV) of mobile social networking (MSN) apps using Overby and Lee (2004) model followed by critical review of existing value proposition of WeChat and then comparing and contrasting with the leading player WhatsApp. Frameworks developed by Piercy (2009), Anderson J. et al. (2006) are employed for the same. Finally, the case develops new value proposition for WeChat by using Osterwalder et al 2014 and other frameworks. By the end of this research, a new consumer value proposition (CVP) proposal for WeChat is proposed for consideration in matching with the globally evaluated consumers’ value criteria.

Keywords: Consumer, Perceived Value, Mobile Social Networking, Social, Value Proposition

JEL Classification: M15, M31

Suggested Citation

Wan, Wong Sze and Dastane, Omkar and Dastane, Omkar and Mohd Satar, Nurhizam Safie and Ma’arif, Muhamad Yusnorizam, What WeChat can Learn from WhatsApp? Customer Value Proposition Development for Mobile Social Networking (MSN) Apps: A Case Study Approach (February 28, 2019). Journal of Theoretical and Applied Information Technology (2019) Vol.97. No 4 , Available at SSRN: https://ssrn.com/abstract=3345134

Wong Sze Wan

affiliation not provided to SSRN

Omkar Dastane (Contact Author)

Financial Training & Management Services (FTMS) College ( email )

Block 3420, Persiaran Semarak Api,
Cyber 4, 63000
Kuala lumpur, WY Selangor 63000
Malaysia

Curtin University, Malaysia ( email )

CDT 250
Sarawak
Miri, Sarawak 98009
Malaysia

HOME PAGE: http://www.curtin.edu.my/

Nurhizam Safie Mohd Satar

National University of Malaysia (UKM)

43600 Bandar Baru Bangi
Bangi, Selangor 06010
Malaysia

Muhamad Yusnorizam Ma’arif

Universiti Kebangsaan Malaysia ( email )

Bandar Baru Bangi
Bangi, Selangor 43600
Malaysia
+60132998346 (Phone)

HOME PAGE: http://https://www.researchgate.net/profile/Muhamad_Maarif2

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1,032
Abstract Views
3,289
rank
27,596
PlumX Metrics