Analysis Of The Factors Influencing The Consumer’S Attitude Towards M-Commerce
The purpose of this report is to identify the factors influencing the customer’s behavior towards M-Commerce and most importantly, to know insight about what people think of M-Commerce. This report helps to identify the key factors of recent increase in M-Commerce usage. We are going to identify the different aspects that affects online shopping by taking survey of different age group and their interest in different companies for online shopping.
With the rise of smartphone ownership globally in 2018, India will have more than 500 million smartphone users where China will have the highest number of smartphone users up to 1. 3 billion followed by the US as third with 229 million users. There are about 650 million mobile phone users (using all types of mobile phones) in India where just over 500 million of them have smartphones and internet connectivity, confirmed by the Internet and Mobile Association of India (IAMAI) and Kantar IMRB. So, M commerce will increase in very high pace but it has some drawback also. M-Commerce is facing many issues such as, lack of wireless network coverage, security issues, lack of standards, and technical disparities among various wireless devices.
Introduction
M-Commerce can be defined as the buying and selling of goods on mobile devices, including smartphones and tablets. Mobile Commerce can include: Mobile retail on apps like Flipkart, Amazon and Snapdeal; Mobile payments applications such as PayTM, PayPal, PhonePay, Google Pay etc. that provide mobile POS systems and other payment solutions; On-demand services like Ola/Uber (cab sharing), Big basket (grocery delivery), Swiggy (on-demand food delivery), and others.
Economists have concluded that M-Commerce has brought intensified price competition, as it increases consumers’ power to gather information about prices and products. Mobile commerce (MC) has the ability to improve efficiency and productivity in many areas of the country therefore, has got attention in countries. The study shows that to understand the dispersion and adoption of M-Commerce, various issues have to be considered and deal with. The research includes some risk treatment which can regain trust in customers also will conduct a comparison study of various M-Commerce applications that already exist so as to find out a bunch of business model and strategies that should possess by app to maximize their usefulness, safety, and effect.
Literature Review
Paper: Services and applications of mobile commerce in India: an empirical studyю Author Dr. (Smt. ) Rajeshwari M. Shettar.
Mobile Commerce is the next generation mode of business. Mobile Commerce is an evolving area of E-Commerce, where users can interact with the service providers through a mobile and wireless network, using mobile devices. M-Commerce services and application can be adopted through different wireless and mobile networks. Important factor in designing M-Commerce services and applications is the identification of mobile users. This study is one of the few empirical studies which have investigated the adoption of mobile commerce in India, which is considered as one of the fastest growing countries in terms of mobile usage. This paper tried to provide an overview of the fundamental’s concepts of M-Commerce. This paper summarized the different technologies used for Mobile Commerce, different services and applications of Mobile Commerce and also, Mobile Internet Users in India. The study found that, M-Commerce market grows in India because so many growth drivers are favorable in India. The study also found that, 71% of the estimated 371 million mobile internet users in India will belong to urban area. However, the rural area still holds an enormous potential to drive the future growth of mobile internet in India.
Paper: M-commerce in India: emerging issues. Author Dr. Sunil Batra and Dr. Neenu Juneja
This paper extends research on mobile commerce in India. It lists the issues being faced by the Indian M-commerce industry. Businesses and its strategies are ever changing with the advancement of time and technologies. Earlier, business strategies were based on limited geographical reach and scope for the growth. But because of rapid advancements in the Internet and communications technologies geographical boundaries are diminishing. M-Commerce industry is young in India. 9% Indians are using smartphones for the purpose of rapidly consuming contents such as gaming, videos, songs and entertainment on their smart devices and this leads to steady growth in mobile advertising and apps industry. Indian M-Commerce industry, however, is yet not developed enough for comparison to the M-Commerce market in the developed countries. Some of the reasons for a contrast is due to some political, social, economic and cultural factors, but rate at which growth is increasing it is expected that the growth would increase in times to come.
Research Work
Mobile devices play an important role in M- Commerce and with increase in users owning mobile devices, there is an increase in M-commerce sales. As mentioned in above figure total sales in M-Commerce was 1. 36 trillion US dollars and now it is expected to increase 1. 80 trillion US dollars. Above figure tells us regarding expected sales in M-Commerce up to 72. 9% by 2021 in total e-commerce.
As M-Commerce is increasing at a very high pace, there are certain disadvantages of M-Commerce that citizens need to deal with as: Connectivity Issue; Security; Screen Size Mobile connection is not stable in every area. Mobile data might be disconnected and ongoing transaction might get cancel due to that. So, many users try to complete the payment of any transaction either in stable connection or from home where they can order from laptop or desktop. Sometime order is not placed and money is deducted from account as mobile data might be off for few seconds during transaction. Then, user need to wait for few working days to get money credited back to account causing inconvenience. So, Connectivity plays an important role in sales of M-Commerce.
Security is another most important aspects in M-Commerce that causes problem within users. Users feared that their devices would be attacked by viruses, resulting in theft of personal data. People feels safe at home on desktop or laptop as they mostly are protected by anti-virus software. People still doesn’t feel safe and have not yet given thumbs up to do transaction on mobile due to theft of data.
Screen size is another aspect as people are not comfortable to view some application as they are not mobile friendly and also look and feel for product is not good. Unless a buyer is familiar with a product or the product’s appearance doesn’t matter, users are hesitant to buy an item on a smartphone. Screen sizes and the behavior of smartphone users are not taken into account enough in general, whether it concerns E-Commerce, mobile websites or mobile email.
The matter of security and safety on mobile devices is solvable. Consumers can store purchasing data at a business they buy from. Another possibility for businesses is to offer Google Pay (companies like Google Pay and many others are increasingly changing the way we pay, pushing mobile and digital payments and challenging retail banks that undergo digital transformations in many areas). This eliminates the cumbersome ordeal of filling out a form on a small screen. This technique works for big E-Commerce businesses like Amazon.
Proposed Solution
Initial phase of the study includes understanding of various ecommerce threat, risk and results so as to reclaim customer trust. It includes how these outcomes can be applied to solve various issues that customer is seeing. After that, give them best solution for mobile application to increase its customer mass. To view any product, the application should have such GUI which should be user friendly and better look of product with detail description will add to it.
Payment gateway can be assigned to another third party for safe transaction that provides best security which will increase the trust in user to use M-Commerce. Below is the flow of whole flow which can be implemented for secure transaction of any product.
Implementation Details
A 8 item questionnaire were used. Questionnaire consists of two parts. First part consists of two questions which collected data on the user details like age and gender. Second part of 6 questions are related to usage of mobile applications.
Participant were given the perspective of questionnaire provided to them and were given utmost 5 minutes to fill required details. As sample data was taken into consideration so results were accurate and obvious.
Conclusion
The aim of this study was customer behavior towards M-Commerce and how to increase scope of M-Commerce as there is a huge possibility to increase business in M-Commerce. As we took survey of 32 people of different ages of different gender and studied their attitude towards M-Commerce. Almost 68% of respondent were below age of 40 years and their main consideration was focused on Offers and Payment Gateway Security. They were mostly into offers on product and also need proper payment gateway as to ensure their transaction was successfully done without any fraud. Other 32% of respondent that were above age of 40 years were mostly focused on GUI and Mobile Application Size as might be very few might be updated with larger memory smart phone. They are not so much technology adaptive so for them short tutorials have to defined like in applications. There were few who also were dependent on offers and secure payment gateway.
With increase in online fraud though it is with offers in which it can be first copy product and in payment gateway where transactions are not secured, consumers are much dependent on these 2 aspects. So It should be make sure that correct products should be delivered to consumer with proper payment gateway.
If we take into consideration for developing countries where most people are illiterate, they are ready for change but they are not aware. Awareness should be created and concept of M-Commerce should be introduced to all as most of the people have now access to mobile phone. So to create awareness and provide them tutorials will create great impact to M-Commerce. If we take into consideration of India and report quoted by IAMAI (Internet and Mobile Association of India) “Urban India witnessed an estimated 18. 64 per cent year-on-year rise, while rural India witnessed an estimated growth of 15. 03 per cent during the same period”. With huge increase in mobile users, there is tremendous growth in M-Commerce.
There is huge growth in M-Commerce as large population are shifting their shopping online through mobile. As above survey was taken for few respondent but there are hundreds of online shopping applications in the world with different attitude of different people in different countries. So analyzing M-Commerce on vast platform can help us to predict exact growth of M-Commerce and its issues and solutions.
