Consumer decisions to adopt mobile commerce
- 1. Predicting consumer decisions to adopt mobile commerce: Cross country empirical examination between China and Malaysia
- 2. About Author 1. Alain Yee-Loong Chong, The Hong Kong Polytechnic University, Hung Hum, Hong Kong 2. Keng-Boon Ooi University of Tunku Abdul Rahman, Malaysia
- 3. Aim of this presentation This study aims to investigate the factors that predict consumer intention to adopt mobile-commerce.
- 4. INTRODUCTION Advancements in wireless communications have increased the number of people using mobile devices, and have increased the growth of mobile commerce (m-commerce). M-commerce is a well adopted technology in many developed countries such as Japan, Korea and the United States, it is still at a growing stage in many developing countries. Users rarely use their mobile phones to purchase products or conduct mobile banking.
- 6. Variables Dependent Variable: Consumer intention to adopt m-commerce Independent Variables are: 1. Trust 2. Cost 3. Social Influence 4. Variety of Services 5. Perceived Usefulness 6. Perceived Ease of Use 7. Trial-ability Control Variables are 1. Gender, 2.Age,3.Educational Level
- 7. 1. Trust IV Trust is an important element which affects consumer decisions to adopt technologies such as e-commerce.
- 8. Cost IV
- 9. Social Influence IV The actions, reactions, and thoughts of an individual are influenced by other people or groups.
- 10. Variety of Service IV M-commerce has a great potential in its applications, m-commerce offers various entertainment such as allows users to use social networking tools, listen to music or watch videos and playing mobile games.
- 11. Perceived usefulness Perceived usefulness is one of the most important variables in technology adoption. Different activities such as internet banking, reserving tickets, playing online games etc can be conducted through both e- commerce and m-commerce.
- 12. Perceived ease-of-use How users come to accept and use a technology. Davis defined this as "the degree to which a person believes that using a particular system would be free from effort.
- 13. Trial-ability Trial-ability refers to whether users given free trials are more likely to accept a new technology. Offering free trials to users also means that m-commerce providers will have to bear the initial costs.
- 14. Hypotheses H1. Trust has a significant relationship with consumer decisions to adopt m-commerce. H2. Cost has a significant relationship with consumer decisions to adopt m-commerce. H3. Social influence has a significant relationship with consumer decisions to adopt m-commerce. H4. Variety of services has a significant relationship with consumer decisions to adopt m-commerce. H5. Perceived ease of use has a significant with consumer decisions to adopt m-commerce. H6. Trial-ability has a significant with consumer decisions to adopt m-commerce.
- 15. Implication 1) The study shows that consumers are more concerned with the variety of services offered by m-commerce. 2) The result shows consumers are price conscious when it comes to m-commerce. Service providers should develop creative promotional and pricing strategies (e.g. cost reduction) to attract price-conscious customers. 3) This is one of the few studies to offer a comparative study in m-commerce adoption in fast growing developing countries. 4) This study focuses on developing countrieswhere the mobile devices and infrastructure are quite advanced, but the m-commerce doption remains low.
- 16. Limitations and future studies 1. Firstly, the study is restricted to comparing the consumers of two countries. 2. Future studies can extend this scope to include consumers from other countries. 3. A comparison between various developing and developed countries will improve the generality of the model. 4. As m-commerce is relatively, this study has the intention of measuring m-commerce adoption. 5. Future studies can consider measuring of m-commerce across time, and investigate if the adoption factors change at various stages of consumer diffusion of m-commerce. 6. Lastly, there is a possibility that additional adoption factors have not been included in this model, such as self efficacy and perceived enjoyment for example, and these can be included in future research models.
- 17. Finding The result allows enable telecommunication and m- commerce companies to develop strategies that are appropriate to consumers from developing countries. The results show that traditional variables found in TAM is not sufficient to predict m-commerce adoption. Instead, m-commerce developers should focus on cultural elements such as trust and social influence when targeting Malaysian and Chinese consumers