An empirical study of the existence, relatedness, and growth (ERG) theory in consumer’s selection of mobile value-added services

Abstract

This study utilized Alderfer’s existence, relatedness, and growth (ERG) theory of human needs as the basic framework to investigate consumer satisfaction and desires when choosing mobile value-added services. A web-based survey was conducted to collect data on user characteristics and to validate the ERG theory. Results showed that existing mobile value-added services could be classified into the three need categories of ERG: the need for existence, relatedness, and growth. The results also partially supported the theory, that is, the satisfaction aspect of the ERG theory was validated but not the frustration aspect. Specifically, when users were satisfied with a service, they had a greater desire for services that addressed either the same need or higher order needs. Contrary to the predictions of the ERG theory, frustration with a service did not lead to a greater desire for services that addressed either the same need or lower order needs. Implications for service providers and researchers were discussed. Key words: ERG theory, Maslow’s theory of needs, consumer needs, marketing strategy, consumer buying behavior, mobile commerce, mobile value-added services.

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