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Internet and telecommunication have played an important role in daily life of people. According to IT Wire news (James R., 2009), there are 4 billion mobile users in the world, and it is almost two third of the global population. Malaysia has around 23.7 million of mobile phone users in year 2008 out of 27 million populations (Freedom on the net, 2009). It shows high mobile phone penetration rate in Malaysia. Thus, mobile commerce is expected to have a great potential to be expanded due to the large amount of mobile users in Malaysia, as well as in the world. So, preferences and expectations of Malaysians toward Mobile Commerce need to be discussed. Moreover, the significance difference on perception of gender toward Mobile Commerce is concerned in the study. Ahasanul H. et al., (2003) presented that there is a significant difference on gender perception toward Mobile Commerce in Malaysia. Hence, relevant service providers can take appropriate actions to facilitate the adoption of Mobile Commerce. Mobile Commerce or Wireless Commerce allows individuals or organizations to do any transaction via wireless network. By using mobile services, users can shop for goods and services, send or receive e-mails, download favored music or graphics or animations, play online games, trade stocks, book tickets, find friends, conduct financial and banking transactions and others. Benefits of the mobile commerce that make people life simple involve flexible in access products or services anytime and anywhere (Tariq B., 2007). Due to such advantages, mobile commerce is widely aware and accepted in many countries such as Japan, South Korea and others (Toh T. W., 2008) and widespread among people. So, awareness of adoption of Mobile Commerce in Malaysia is necessary to be discussed. Comparing to those countries, mobile commerce in Malaysia is proven that still in infant stage and has great space for mobile commerce to move forward in the future (Ahasanul H. et al., 2003).
Mobile commerce makes businesses have opportunities to be expanded as it explores a new way for businesses (Anckar B. et al., 2003). Not only provide businesses a new channel to selling their products and services, mobile commerce even provides customers a new channel for buying their desired products and services (Joe Skorupa, 2009). An addition, competitive advantage that allows buying and selling process can conduct in no restriction from anytime and anywhere facilitate usefulness of mobile commerce. But, mobile commerce is not growing as much as estimated. There is not much adoption of mobile commerce in Malaysia (Ahasanul H. et al., 2003) although services are available in the market. Accordingly, the study analyzes the level of acceptance and satisfaction of Mobile Commerce in Malaysia. Maxis service provider subscribers can check balance of their banking account, news, and stock price, download entertainment elements by using a mobile phone. Furthermore, Ahasanul H. et al. presented that low diffusion of mobile commerce is identified due to the concern of Malaysian in security and trust to mobile commerce. People do not willing to use Mobile Commerce as they perceived risk on conducting it. Hence, they study is going to investigate the impact of perceived risk among people to the adoption of Mobile Commerce.
Clarence Tan N W, (2001) presented that the origin of M-commerce came from E-commerce. Mobile Commerce is believed to be an extension of Electronic Commerce or even a “wireless” E-commerce (Varshney and Vetter, 2002). Electronic Commerce defined as any business transactions that are conducted electronically rather than physical or direct contact involved. It innovates a new way as well as a new venue for doing businesses, so as Mobile Commerce. However, Feng et al. (2006) argued that Wireless Commerce has its own unique characteristic that E Commerce does not have. For examples, there is the mobility and reach ability. Users free to access any information or transactions they need immediately as well as instantly without restrict in certain location. Such flexibility makes users may not restrict in certain location. It even got author identified that mobile commerce can perform better than electronic commerce due to the more and more advancement in mobile devices (Dang Hong-Vu, 2006). Some advance mobile devices with functions like a pocket size PC such as PDA. PDA also called palmtop computer, which work as a mobile phone, web browser or portable media player. PDA combines several functions as one as a whole. According to Toh T. W. (2008), mobile commerce offer more ubiquity and accessibility to users than electronic commerce due to the dependence of electronic commerce on costly infrastructure and fixed line network.
Furthermore, the evolution in mobile network technology benefits the development of mobile commerce. It allows the improvement of performance in mobile devices and directly contributes to the use of mobile commerce. There are four generations of mobile network technology have been developed such as 1G, 2G, 3G and 4G.
1.3 Problem Statement
The widespread of acceptance of mobile phone among people facilitate the use of M-commerce. According to International Telecommunication Union (ITU), worldwide users of mobile phone achieved above 3.3 billion (Technology news 2008). So, the potential future of M-commerce has been paid attention due to the large number of potential customers in the world. However, there is still having people do not welcome this kind of new technology service. Based on this, here are some of the research problems:
- Do perceived risk affects the adoption of mobile commerce in Malaysia?
- Do Malaysians aware of the existing of M-commerce?
- Is there a significant difference toward perceptions of M-commerce between genders?
- What are the expectations or preferences of mobile users on M-commerce?
- What are the acceptance and satisfaction of users toward M-commerce in Malaysia?
Mobile phone is no longer considered as a novelty, popular to the world. Several new and complex functions have been added in the mobile phone to make smooth the consumers' lifestyle and to make consumer life easier. One of the best examples that are contributed is M-commerce. Users can place orders, buy products or services and play online games through this new service by using a mobile phone at anytime and in anywhere. The objectives of research are:
- To understand the effect of perceived risk to the adoption of M-commerce in Malaysia.
- To find out the awareness of Malaysians towards M-commerce.
- To identify the significance difference male and female perceptions of M-commerce.
- To examine attributes that perceived as importance to mobile users when conducting M-commerce.
- To evaluate the acceptance and satisfaction of users toward M-commerce in Malaysia.
1.4.1 To understand the effect of perceived risk to the adoption of M-commerce in Malaysia.
The study tries to understand the effect of perceived risk to the adoption of mobile commerce in Malaysia. There are some challenges and issues that negatively contribute to the mobile commerce. By understanding challenges and issues that faced when conducting mobile commerce, the drawbacks and limitations of mobile commerce will be recognized. These drawbacks make consumers feel uncomfortable and lack of trust on using mobile commerce. Such risk that perceived by Malaysians may directly affect the adoption of mobile commerce. Perceived risk defined as challenges or issues that recognized by people toward mobile commerce in Malaysia.
1.4.2 To find out the awareness of Malaysians towards M-commerce.
The study also helps understand the awareness of Malaysian towards M-commerce. Awareness of consumers toward a service is important and is critical to the success of that service. In the introduction stage, information about a new service must be spread through. It makes the service known by people and promotes the service to be tried by people. If the awareness of a new service is well-developed among consumers, its value is affirmative after that as a confirmation. Although the awareness of the use of mobile phone is broadly spread throughout every generation in the world, but, the understanding of mobile commerce is not really well known by everyone, especially for those in an under-developed country. Awareness is defined in this study as the recognition of people towards mobile commerce in Malaysia.
1.4.3 To identify the significance difference male and female perception of M-commerce.
The study involves in identifying the significance difference male and female perceptions of mobile commerce. Perception is the process of people select, organize, interpret, retrieve and respond to information from the world around them. Information can be collected through five senses, which are sight, hear, taste, touch and smell. Each person will perceive differently even though they are in the same event, so do the different in gender (Bland, J., 2003). A difference between male and female involves aptitude, behavior and skill. So, similar things may be perceived in the different way based on gender. Perception is identified in this study as thought of people that shaped toward mobile commerce based on gender in Malaysia.
1.4.4 To examine attributes that perceived as importance to mobile users when conducting M-commerce.
Important attributes will be found out in the study. The preference and satisfaction of consumers are essential to the development of mobile commerce. The success in improving the preference of consumers may enhance the satisfaction of consumers. Understanding of that benefit mobile commerce and make it be promoted and known by the public. It will attract people start using mobile commerce and will stimulate the adoption of public toward mobile commerce. Directly, it improves the trust and confidence of people in using mobile commerce. Trust is an important attribute to the mobile commerce. Lack of trust is likely to make people refuse in participating in mobile commerce. So, the understanding of important attributes may help to the acceptance of people toward mobile commerce. Attributes are examined in this study as components that mobile users think are important for them in using mobile commerce.
1.4.5 To evaluate the acceptance and satisfaction of users toward M-commerce in Malaysia.
This study analyzes the acceptance and satisfaction of mobile commerce in Malaysia. Nowadays, there are a large number of mobile users in the world and mobile phone become necessary to work on people life. So, it directly influences the future of the mobile commerce. Moreover, along with the promoting of mobile commerce, more and more institutions and organizations have introduced such mobile services to the public. For example, Starbuck is venturing mobile payments that may bring convenience to their customers as well as their company operation (CNET News 2009).But, aware of the existing of mobile commerce not really mean that people starting practice the mobile commerce in actual or really satisfy the function of the mobile commerce. Many factors can contribute to the acceptance and satisfaction of the users toward mobile commerce. For example, convenient that can be conducted in anywhere as well as anytime positively affect the acceptance and satisfaction of the mobile commerce but safety and security problem affect negatively to the acceptance and satisfaction of mobile commerce. The acceptance and satisfaction evaluated in this study defined as positive or negative adoption of people toward mobile commerce in Malaysia.
1.5 Scope of Study
The study put emphasis on evaluating the adoption and usage of Mobile Commerce in Malaysia. The study provides enhanced information about challenges and issues that faced by mobile commerce in Malaysia. Moreover, important components that may improve the satisfaction of customers toward mobile commerce will be identified. By understand these important attributes and weaknesses, relevant parties such as customer service providers can better understand requirements for the success development of mobile commerce and continuously take proper actions to enhance mobile commerce adoption.
1.6 Organization of Research
This research is basically divided into three main areas;
- The use of literature review is to find out what the current situation to date is. That is the purpose that journals are used. Through these journals, various factors, services and impacts of Mobile Commerce can be identified. Through the reviews, a framework will be created, a framework will be developed and to understand the variables.
- Once the framework is being done, a questionnaire will be created to understand the revolution and the adoption of Mobile Commerce from users. This questionnaire will then be distributed for results.
- The third part of the research will be analyzing if the results of questionnaires scientifically and come with conclusions and reasons of particular happening. Once this is being done, then we will formulate various ways that could be conducted to make the condition more favourable.
A total of thirty articles are covered in this literature review. The sources of the articles are tabulated in the reference section. The reviews are organized based on the topic of discussion in relation to Mobile Commerce. This chapter is divided into few categories, which are:
- Adoption of Mobile Commerce among countries
- Factors determined adoption of Mobile Commerce
- Opportunities and Challenges of Mobile Commerce
- Perception of Mobile Commerce in customer and company aspects
- Impact of Mobile Commerce
- Mobile Commerce and Electronic Commerce
- Mobile Commerce and Electronic Commerce: Banking sector
- Mobile Commerce and Youth Innovation: Banking sector
- Future Trends in Mobile Commerce
2.2 Adoption of Mobile Commerce among Countries
Anthony Chew A., (2006) presented that although United States is the pioneer in developing the Internet and E-commerce era but there is not much utility of M-commerce in the United States. In a contrast, Europe and other Asian countries more advance in using M-commerce. The advance of mobile commerce that utilized by Europe and other Asian countries depend on their ability to promote using on 3 Generation technology. This study evaluated the attitude of people and willingness of people in using mobile commerce in United States. The purpose of the author in conducting this study was analyzed factors that impact on the low level of adoption of mobile commerce in the United States that is individual's attitude, subjective norm, usefulness, ease of use, trust and privacy, individual's innovativeness, and experience in using E-commerce. The methods that the author conducted his survey are questionnaires and online survey. The overall sample size of this study is 205 people whom age is from 16 to 73. As a result, individuals having positive attitude, subjective norm, usefulness, trust and privacy, experience in using E-commerce previously pose significant relationship toward adopting mobile commerce. Author concluded that individual innovativeness and ease of use do not affect the adoption of people toward mobile commerce. The limitations of this study are that the sample size of the survey was too small and the participants of this survey are mostly come from California, not equally throughout United States.
Patricia H. et al., (2005) presented a cross-cultural study on Hong Kong and United Kingdom that have similar infrastructure but have different culture. There was an investigation on significant differences on the attitude and usage of mobile commerce. Differences were contributed by the collectivism and power distances in the culture as well as the different market structure of both countries. Hong Kong has the tendency toward collectivism that defined as a desire to be interpersonal rather than impersonal, but United Kingdom has the tendency toward individualism. Mobile communication services were examined that will be more popular in Hong Kong's collectivism culture rather than United Kingdom's individualism culture. Hong Kong ‘s resident respect for hierarchy and have high power distance by which people have a high willingness to accept status and power differences. Hedonic M- commerce services were discussed by the authors to have high adoption in Hong Kong's higher power distance culture than in the United Kingdom's lower power distance culture. Sensitivity of price will be higher in Hong Kong's collectivism culture than in the United Kingdom's individualism culture is identified by authors. Collectivism culture is presented that people will more price sensitive. The authors investigated that word of mouth will be useful as a determinant to adopt mobile commerce in Hong Kong's collectivism culture than in the United Kingdom's individualism culture. As a result, the authors presented that there were significant differences between Hong Kong and United Kingdom. Adoption rate of mobile commerce is relatively low in Hong Kong and has less experience on mobile commerce services. Hong Kong users dissatisfied with M-commerce and found it useless but feel less expensive than the United Kingdom do. The authors proposed that mobile communication services are supported in Hong Kong's collectivism culture than in the United Kingdom. Second, the authors showed that hedonic services have significant correlation with the Hong Kong's higher power distance culture. Next, the authors identified that price sensitivity has a relationship with the Hong Kong's collectivism. United Kingdom has higher cost in using mobile commerce services than Hong Kong but there is lower price sensitivity than Hong Kong. Word of mouth was indicated to have impact on the Hong Kong's collectivism culture but authors disclosed that there was no significant statistical information supported the differences between Hong Kong's collectivism culture and United Kingdom's individualism culture. One of the limitations of this study is that it has not been significant equal in terms of age of sample. United Kingdom has relative younger sample than Hong Kong. Furthermore, students are the main respondents for both countries and this limitation may affect the nature of adoption of mobile commerce. Fewer amounts of experienced users in mobile commerce services make authors desire to have larger sample size that can contribute to the study.
Carlsson C. et al., (2002 &2003) presented both Austria and Finland were interesting in the study of mobile commerce. Both countries are small countries with high penetration of mobile subscriptions. The authors conducted the study in Austria and Finland to identify the actual status and process of mobile commerce in year 2002 and year 2003. On the same time, the study was involved in examining the changes of perception toward mobile commerce among the experts within this two year. The target group of the authors was 50 experts of industries and decision makers from companies. There are 27 Austrian and 25 Finnish experts participate in the survey in year 2002. There are 36 expert and 18 respondents in year 2003. Web questionnaires and paper questionnaires were distributed to respondents. There were two aspects of the survey involved in this study that was the company related aspect and customer- related aspect. Each aspect investigated the insight of experts that contribute to the barrier of the adoption of M-commerce. At last, authors concluded that there are different opinions by experts from Austria and Finland. Experts of Austria suggested high start-up costs (initial and operating costs) were the main obstacle for companies to welcome mobile commerce. The experts in Finland proposed that lack of financial resources as well as lack of trust in mobile commerce services as the main barriers. By aspect of consumer, it is identified that high initial cost and operating cost treated as the barrier in Austria, and complexity of service is the main limitations for customers to adopt mobile commerce in Finland. Combining aspect of company-related and consumer-related, financial aspects, slow data connections, poor coverage of telecommunication networks as well as lack of valuable value adding aspects of mobile commerce were seen as obstacles that prevent companies and customers to adopt mobile commerce. The limitation of this study is that there is the lack of explanation and supported information in showing differences of perception of experts toward mobile commerce in year 2002 and year 2003.
Obe O. O. et.al, (2007) presented that the practice of wireless commerce in Nigeria. The authors measured benefits, success factors, future trend and challenges that considered relating with the intention in adopting mobile commerce. The demand of mobile commerce was identified to depend on advantages that were perceived such as ubiquity, accessibility, security, convenience, location and instant connectivity. Ubiquity defined as real time access and allowed customers to conduct mobile commerce in anywhere. Security of mobile commerce has been advanced by which mobile security technology exists in the form of SSL (Secure Socket Layer) within a close end-to-end system. Accessibility defined as reach-ability that provides the opportunity for people to be available contacted in anytime and anyplace. Mobile commerce also relies on the benefit of convenience that data can easily be used. Localization made users can get services, which relate with their physical location, while instant connectivity makes information available for users to obtain. In the prospect of consumers, mobile financial services are treated as the most essential element in the mobile commerce which involves mobile banking, mobile broking and retail banking. Businesses are investigated be contributed by mobile commerce in the area of job dispatch and mobile sales force automation. The former help assigns a new job to the mobile employee. The latter useful for traveling salesperson access to business related data. The success in adopting mobile commerce was proposed have the relationship with some critical factors. That is customer ownership, personalization, timeliness, ubiquity, localization and convenience. The Authors suggested customizing services according to the preferences of customers in personalization. Mobile commerce services suggested to be delivered on time to customers, or it may affect the adoption of customers. Continuously, ubiquity and localization are suggested by the authors to allow users to access and receive information in anytime and anywhere. Mobile commerce services that will make user life easier may attract them in using mobile commerce services persistently. There were some challenges that were examined by authors. One of the challenges is hard to maintain the sustaining growth of mobile commerce as well as the fund required to develop mobile commerce. Attitude of people toward M-commerce, cost, security and privacy issues have set the barrier for people in the intention in using mobile commerce services. Next, middleware issues and absence of the standardized system also prevent the adoption of wireless commerce. As a result, the authors proposed that there will have a positive trend for mobile commerce in the future in Nigeria that mobile commerce will be highly accessed and even substitute the position of E-commerce. The limitation of this study is that there is the lack of empirical data or information have been supported the result of the study.
Esteban Uribe, (2007), analyzed the emergence of mobile commerce in Canada. The study examined the overall basic elements that are important in the development of mobile commerce as well as concerns of customers toward mobile commerce. According to the Pollara's survey, it showed that there is relative low penetration of mobile commerce in Canada and really few people experienced utility of mobile commerce before. It was proposed that high barrier on adoption of M-commerce in Canada subject to high and uncompetitive price, outdated “walled garden” approach to wireless commerce, limited geographical coverage of 3G. All of these contribute to the absence of confidence and trust of users in Canada. High price is charged on the users of mobile commerce but low quality service customers have perceived. Outdated “walled garden” approach direct to M-commerce defined as the contribution to the restraint in processing internet access by using a mobile phone that is affected by the experience of users be charged at higher price than the gain of internet access by computer. The author found that issue that occurred to the adoption of mobile commerce includes consumer privacy and personal information protection. Next, security of mobile commerce transactions is required to avoid password to be stolen by unauthorized party. The last issue that had been identified by the author was the contractual issue. The author concluded that competition is necessary in the market of service providers in the Canada. The author measured that higher competition improve penetration rates, affordability, technological advancement and efficiency gained in the adoption of mobile commerce by mobile users. The limitation of this study is that there is an absence of the result of the survey. There is no information is shown to support what the author has been identified.
Enrique Bigné et al., (2007) presented the adoption of Spanish mobile users toward mobile commerce. The study identified the components such as the influence of relations with the mobiles (frequency of mobile use, length of mobile use and mobile affinity), Internet shopping experience, demographics, and attitude toward mobile commerce that might influence the adoption of mobile commerce. Key drivers to the intention to use mobile commerce in the future were investigated by the authors. The study involved 606 Spanish and participants include mobile users and non-mobile users. Authors found that age, relations with the mobile (frequency, length of mobile use and mobile affinity), Internet shopping experience and attitude toward mobile commerce are the most critical key to the adoption of mobile commerce. The result measured that age, length of mobile use, consumer attitude toward M-commerce, affinity and previous experience are the predictors of the intention to adopt mobile commerce in the future. According to the result, age was examined to be the only demographic factor that relates with mobile commerce behavior, mobile affinity and adoption of mobile commerce in the future. Impact of length of mobile use to the adoption of mobile commerce is suggested by the authors due to the increase performance and attributes of terminals. The authors explained that previous experience makes users adapt the mobile commerce and favorable attitude to the mobile commerce. The authors analyzed that individual ability to understand or realize changes or new technologies relate to the emergence of age in the demographic factor. The age is identified has the impact on the length of mobile use. On the other hand, women are found familiar to the mobile environment. The limitation of the study includes lack of analysis in the impact of motivation and barrier to the adoption of mobile commerce. Furthermore, the sample of the study focused on the young may influence the accuracy of attributes that are perceived as the important key.
Addis A., (2009), presented an overall understanding of contribution of mobile commerce to the mobile banking in Africa (South Africa, Kenya and Senegal). The author suggested that better information and communication services can contribute to the economy, especially in rural areas. The author tried to understand infrastructures as well as wireless technologies that create opportunities for the innovation of mobile commerce. Advantages and disadvantages of those infrastructures and wireless technologies in three countries will be identified. Mobile commerce help banking sector gained to assess to the mobile banking. Potential business models of mobile banking which can construct in rural areas are investigated. Accordingly, not only collaboration between mobile service providers and financial institution but also key factors that affect the diffusion of mobile banking was necessary to be paid attention. Issues of mobile banking that the author was interested in this study include trust, confidence, security, service access, regulatory policies and affordability. The methods of the study conducted include interviews and questionnaires. The result of the study showed that South Africa, where the country has the highest GDP than other two countries) has better coverage of mobile network in rural area but relative high cost involved than Kenya and Senegal. International connectivity was found available in Senegal but there is limited coverage in rural areas. Kenya stick in the middle of coverage areas and price charged. Taxation was identified has set the barrier to the adoption of mobile commerce. The author found that it prevents services providers and customer to contribute to the m-commerce. As a result, cost is examined as the main obstacle in three countries. Next, issues of regulation on areas of licensing, pricing, interconnection, universal access and competition is revealed in the study. Mobile banking is identified by the author can expand well in rural areas in each of these countries with collaboration between services operators and financial institutions. Since development of information and communication services is examined can reduce the poor in these countries, the author suggested that rural areas should be included in the strategic development of Africa. Moreover, effective rules and regulations as well as customer protection is necessary to improve the trust and confidence of users in order to improve the adoption of mobile commerce. Significant services that available in the market are suggested by the author toward adoption of mobile commerce. The limitation of the study is that there is no definite number of respondents involved in this study. The author did not illustrate the issues of mobile commerce in this study as well as key factors and barriers of the adoption of mobile commerce.
Raymond A. B., (2007) presented the impact of mobile commerce in the selected rural businesses of Ghana. The objectives of the study involved the implementation of investment cost of mobile commerce, and implementation of adoption mobile commerce and practice of farmers and fishermen in selected rural areas of Ghana. 29 personnel interviews were done in the study to the mobile service provider and m-commerce users work in rural areas of Ghana. There are two companies involved, which are Farming Delight Company Limited and Fishermen Delight Company Limited. In Ghana, the investment cost of adopting mobile services is identified to depend on types of the mobile terminal use and mobile service providers connect to. Fishermen were found are suitable and affordable in using prepaid services. Cost is critical to the farmers, and it makes farmers of the Ghana adopt prepaid services. Adoption of mobile commerce by farmers and fishermen is identified has the benefit in cost reduction, enhancement in communication and convenience and improvement in customer relationship. Adoption of mobile commerce significantly provides competitive advantages to farmers and fishermen. Moreover, the study examined that adoption of mobile commerce in Ghana stimulated by management perception of the usefulness of the mobile commerce, affordability of mobile commerce, better understanding of mobile commerce and the culture. The limitation includes the study only focus on the aspect of farmers and fishermen. Moreover, demographic factors (age) or other factors are neglected in the study.
Cho Y. C., (2008) presented the attitude and behavior of users in Korea and US toward mobile commerce. The author analyzed the differences in usage of mobile commerce in these countries by factors that influence the attitude and behavior of M-commerce, how factors involved to affect the perceived ease of use and usefulness, the effect of perceived ease of use and usefulness to M-commerce, and the effect of attitude of users to satisfaction of users. Factors involve in this study are information, price, service, convenience, technology, promotion and entertainments. There are total of 570 respondents, allocation of the survey is 280 in US and 290 in Korea, participate in this study and all of participants have above 2 year experience in utility of mobile phone. As a result, perceived ease of use and usefulness in both countries are affected by factors of information, convenience and entertainments. But, factor like price, services and technology only affect the market of mobile commerce in Korea. Promotional factor does not influence the attitude of mobile commerce in both countries. The author proposed that perceived usefulness and ease of use have the significant impact on the attitude of users toward mobile commerce. Moreover, effect of attitude of users found significantly impact to M-satisfaction of users. The author suggested that there is a large potential for the improvement of mobile commerce. Variety related products and services are encouraged to provide to users in order to improve their satisfaction and loyalty to the mobile commerce. The limitation of the study involves the lack of analysis in cause and effect relationship toward mobile commerce. The author conducted a cross-countries study but cultural factors have been neglected in the study by which the author is going to improve in the future.
Anckar B. et al. (2003) analyzed consumer's acceptance of mobile commerce in Finland. The authors tend to identify the adoption of mobile commerce by benefits and barriers at a perceived-value based than the technology acceptance model (TAM). Furthermore, benefits and barriers that perceived importantly in each target customer group are investigated. The adoption of mobile commerce is analyzed by dividing into two kinds of adoption, which is adoption of mobile Internet and adoption of mobile commerce. Accordingly, there are 6 customers groups, which involve mobile Internet adopter, intended mobile Internet adopter, mobile Internet averse, mobile commerce adopter, intended mobile commerce adopter and mobile commerce averse. Intended mobile Internet adopter or intended mobile commerce adopter defined as respondents that willing to use mobile commerce or mobile Internet in the future. Mobile Internet averse or mobile commerce averse defined as participants that do not have the intention to adopt mobile Internet or mobile commerce neither in current nor in the future. The survey of the study was completed by 487 customers in Finland. The authors found that the expansion of mobile commerce depends on the benefits perceived than risk perceived. Customers are more interested to know how many benefits they can enjoy rather than know how many risks they suffer. The authors suggested that enhancement in the benefits users can achieve is necessary to stimulate the adoption of M-commerce. Next, adopters and intended adopters are proposed prefer benefits in enhancement of face-face communication and flexibility, while non-adopters seem benefits as nothing. Adopters and intended adopters perceived limitation of networks and devices as the barrier than prevent the diffusion of mobile commerce. High initial and operating cost perceived as the main barrier to averse customers. The limitation of the study is that there is no equal sample size of customer groups, and it may affect the accuracy of the result of the survey.
Susy Chan S. et al., ¼ˆ2002¼‰, conducted the study of utility of wireless commerce by implementing cognitive walk through and heuristic evaluation methods in accessing ten wireless sites by using three kinds of mobile devices. Mobile devices that involved include WAP-enabled mobile phones, Palm OS based wireless PDAs, and Pocket PCs running Windows CE operating systems. Criteria such as high volume of traffic Internet Web sites, capability of supporting WAP and Palm OS platforms, and representing a wide range of consumer m-commerce activities are necessary for the selected wireless sites. Wireless sites are Travelocity and United Air Lines, Amazon and eBay, Yahoo and Excite, Fidelity and E*Trade, and ABC News and the Wall Street Journal which cover sectors of travel, retail, portal, financial services and news. The authors emphasized form factors like user tasks, content presentation, search, navigation systems and their impact on the utility of mobile commerce. The study was the aim to identify the potential research problems when conducting mobile commerce as well as identify guidelines for designing proper applications for the mobile commerce. There are two graduate students act as the role of novice users and participate in a cognitive walk through method. While, there is four expert evaluator access heuristic methods in this study. According to the outcome of examining all form factors, suggestions such as the content be displayed in shorter length, avoid using scrolling and user memory, use flat site structure and a navigation system similar to the regular browser with consistent back and history, and provide indications for signal strength and download progressing are encouraged for the improvement of wireless application. On the other hand, Pocket PC is found to be the most dissatisfied devices in practice wireless sites but PDAs are examined to be the most useful in clearly defined tasks as well as content presentations. The limitation of the study is that the result of the finding depends on subjective thoughts of evaluators toward wireless sites and that may not have the capacity of represent all problems of wireless sites. Next, there are too few participants respond to the study.
Janine Joubert et al., (2009), investigated factors of trust and risks that possible effect the adoption of mobile commerce in South Africa. The study identified the trustworthiness of people toward vendor and the trust perceived by people to the technology of mobile commerce. Components of trust which involve in the study include disposition to trust, vendor trust, system trust, institutional based trust, and trust in mobile commerce. Perceived risk of participants, which includes vendor risk, institutional risk and system based risk. The authors incorporated Innovation Diffusion factors (IDT) in the study to evaluate the impact to the intention to use mobile commerce. The targeted group of the study is “early adopter” and there are 110 of them respond to the study. Early adopter defined as young age, frequently used mobile devices, better acceptance of new technology, and innovativeness. As a result, perceived trust significant effects the adoption of mobile commerce as well as the disposition to trust significant effect the perceived trustworthiness. Moreover, perceived trustworthiness of vendor and institutional significantly influence the trust of users toward mobile commerce. Out of seven factors in IDT, there are only three factors are identified to have a great impact on the adoption of mobile commerce, which are compatibility, image and cost. The result showed that not all factors of IDT capable in affecting the adoption of mobile commerce. The authors proposed that risk and trust directly affect the adoption of mobile commerce in South Africa. But, from the aspect of “early adopter”, benefit such as the convenience treats as more important than perceived risk and trust. The limitation of the study is that the study only focuses on the targeted group, early adopter but not focuses on all generations of population. So, it cannot provide the overall results of the impact of risk and trust toward adoption of mobile commerce in general.
2.3 Factors determine adoption of mobile commerce.
Tariq B., (2007) analyzed components that determine the acceptance of users toward mobile commerce. A goal of the author is to develop an efficient model in providing useful information to mobile commerce. The author suggested that there are several factors that can predict the intention of using mobile commerce. TAM identified that ease of use and usefulness are two important keys to the adoption of technology. TPB identified that subjective norms and perceived behavioral control are important for the understanding of acceptance of mobile commerce. Based on that, the author proposed the intention to adopt mobile commerce as the dependent variable, while ease of use and usefulness as moderating variables. Subjective norms, personal innovativeness and behavioral control viewed as independent variables that influence dependent variable. This study discussed the effect of subjective norms that positively influence on the perceived ease of use, on the perceived usefulness and on the adoption of mobile commerce. In addition, factor of personal innovativeness is examined to have the impact on the perceived usefulness and on the perceived ease of use. The author constructed the study on the relationship between perceived behavioral control and perceived ease of use as well as on the relationship between perceived behavioral control and the adoption of mobile commerce to understand the determinant attitude toward adoption of mobile commerce. The perceived ease of use is defined as users can easily master a particular technology without much effort. That was realized by author that perceived ease of use may positively influence the intention of adopt mobile commerce. The ability to enhance task performance of individual makes them realize the usefulness of a particular technology. This belief develops the relationship of perceived usefulness with the adoption of mobile commerce. As a conclusion, subjective norms pose a significant impact on the perceived ease of use, perceived usefulness and the adoption of mobile commerce. Furthermore, perceived ease of use and behavioral control has positively influenced on the intention to use mobile commerce, which is consistent with previous research. According to the report, perceived behavioral control is supported that impact on the perception of ease of use. The respondents of the study were mainly students. The limitations of the study are that respondents of the study are only students but not involve others and that may influence the exact outcome of the study.
Toh T. W. et al., (2008) presented that Malaysia has a great potential in developing mobile commerce, although the mobile commerce in Malaysia is still remained at infant stage and has not the ability to compare with other developed countries such as Japan and South Korea. The authors examined the factors that impact the intention of people to adopt M-commerce. The study has extended the TAM model and made additions with trust-based construct, one behavioral control constructs and one subjective norm constructs. The factors involve in this study are perceived usefulness, perceived ease of use, social influence, perceived cost and trust. It provides better information in understanding the acceptance of mobile commerce. The surveys of the study were distributed to the mobile users from different mobile service providers. There are 222 respondents had participated in this study in Malaysia. The authors found that perceived usefulness is the most distinct determinant that can predict the adoption of mobile commerce. They suggest service providers and vendors pay attention to the improvement of the system to match the requirement of customers. Helpful and quality information encourages to be given to users. Second, the authors identified perceived ease of use does not have close correlation with the adoption of mobile commerce. Younger generalization who involved majority in this study is analyzed to have no difficulty in mastering mobile commerce. Social influence is concluded to have the significant relationship with the intention to use mobile commerce. The authors predicted that the decision of the young is more aware of new technology as well as trends and is easily influenced by external to adopt mobile commerce. Perceived cost treat as the barrier to the mobile commerce in Malaysia.Cost is suggested to reduce and pricing strategies and promotion are suggested to overcome this obstacle to improve the acceptance of M-commerce. Essential element like trust is seemed to have the significant impact on the use of mobile commerce. Immature mobile commerce in Malaysia needs trust of users to support it. Valuable and reliable system is desired in developing trust by service providers and vendors. The limitation of this study involves the majority in young age. It is possible that different result will be recorded by different group of age. Furthermore, the authors suggested limitation of this study can be improved in the future study by comparing services of different service providers that may influence the adoption of mobile commerce.
Léger et.al. (2003) involved in the understanding of the adoption of mobile commerce by analyzing important determinants that will affect the diffusion of mobile commerce. Determinants of this study involve business to customer orientation, digital nature of offering, level of electronic commerce adoption and size of firms. Business to customer orientation makes firms gain the opportunity in expanding their business areas and continuously provide great value to customers. It stimulates the adoption of M-commerce. Digital nature of offering defined as distinctive characteristic and function of mobile products and services, which provide the ability of effective and efficient to users and have helped in the intention of adopting mobile commerce. Next, experience in conducting E-commerce may influence the acceptance of mobile commerce. The study involved 150 Canadian and Scandinavian (Finland, Sweden, Norway, Denmark and Iceland) executive manager who works in the wireless communication industry. The result of the study showed that experience in electronic commerce direct the practice of mobile commerce. The authors identified that the quality of products and services available in the market to the public has the significant relationship with the implementation of wireless commerce. The size of firms is examined is not a determinant of adoption of mobile commerce and all types of firms are allowed to access mobile commerce. Firms oriented in B2C market are investigated to have no relationship with the adoption of mobile commerce. The authors suggested development of mobile commerce predisposed to the complementary of electronic commerce as well as more valuable mobile commerce related products and services offered in the market. The limitation of the study is that the scope of this study, which focuses in telecommunication industry limit the generalization of the result of the report. It is better involving the investigations of adoption of mobile commerce in other similar industries.
Dianne Cyr et al., (2006) presented the study in which related to the mobile commerce. Factor of aesthetics is investigated by the authors that capable in affecting TAM model, which include perceived usefulness, perceived ease of use and enjoyment. According to that, it continuously affects customer loyalty to the mobile commerce. Moreover, TAM model is examined to have the impact on loyalty of customers toward mobile commerce. There are sixty participants responded to the study. They performed requirements of the survey under accompany of an investigator and had at least one year experience in using mobile devices. Nokia 6600 is used in the survey of the study due to its larger screen size. The authors concluded that perceived ease of use has the significant impact on perceived usefulness and this infection also influence the acceptance of mobile commerce. Next, perceived usefulness and enjoyment are detected influence loyalty toward mobile commerce. Enjoyment is found as an important determinant of the adoption of mobile commerce. Design aesthetics like color, shape, font type, music or animation are identified to have a relative large impact on enjoyment, perceived ease of use and usefulness and in turn affect the M-loyalty. The limitation of the study is that there is only one kind of mobile device involved in the study and which may affect the belief of participants toward identification of TAM model. Second, the study is a laboratory experiment that may affect the nature of the result. Third, the finding of the study argued to be collected in one time only and that may not be suitable in identifying M-loyalty as loyalty is a repeated action done by customers.
Fan Yandong et al., (2005), presented the study which focused on the impact of the speech interface to the improvement of the adoption of mobile commerce. The authors also examined factors according to the Theory of Reasoned Action (TRA), the Theory of Planned Behaviour (TPB) and the Technology Acceptance Model (TAM) that capable in stimulating the adoption of mobile commerce. For examples, there are perceived usefulness, perceived ease of use, social influence, confidence belief and affective attitude. Effect of four moderators like the type of the application, stage of adoption, environment of study and type of subject are investigated in this study by authors. According to the finding, influence of stage of adoption and type of subject are found significantly than type of application and environment of study. It implied that direct impact of belief and perception on mobile users' intention to use mobile commerce is varying from time to time. Moreover, practice of individual in a group may differ if exposed to the determination of accepting a service. Value such as ubiquity, convenience, adaptability, entertainment and personalization are added to determine the impact of them to the adoption of mobile commerce. The authors have indicated various advantages that come from those five values and those advantages help in stimulating acceptance of mobile commerce. The authors identified that speech interface has improved naturalness, efficiency, parallelism, trustworthiness of mobile commerce, which in turn benefit the users' intention to adopt M-commerce. Five factors such as perceived usefulness, perceived ease of use, social influence, confidence belief and affective attitude are supported to have a positive relationship with the utility of mobile commerce. The limitation of the study is that sample size of participants did not show in the study and authors do not explain a depth in the relationship between five factors and adoption of mobile commerce.
Oug Gi et al., (2006) identified critical factors, that important to the adoption of mobile commerce from aspects of users, developers, operators, functional, technology and market. The authors evaluated this study by using analytics hierarchical process (AHP). The study provided 35 alternatives of critical success factors, which are created based on 8 specified criteria. Those criteria include application function, mobile device, middleware, network, system quality, content quality, usability and satisfaction. Then, AHP is used to evaluate those selected factors. In the system quality, trust is identified as the most important element, while understandability is the essential element in the criteria of content quality. Personalization is emphasized in the criteria of application function. Moreover, mobile device which can access heterogeneous system is favored by users. Users' privacy which functions in the middleware are concerned after evaluation. Usage of transaction is also examined important in this study. The overall result, the most important success factors are content quality, system quality, usability, and middleware. The authors concluded that users conduct mobile commerce only when it is easy to use and understand as well as high usability of transactions are needed. Furthermore, the authors suggested high satisfaction can be improved through customization on content and setting of lateness content to the user. The limitation of the study is that the lack of disclosure of methodology in which the study exposed to such as the source of the result from and the number of participants responded to the study.
Ho S. Y. et al., (2003) investigated the effect of personalization to the intention of users in adopting wireless commerce. Moreover, the effect of implementation of personalization that may cause to the switching cost of subscribers to other service providers is examined by authors in this study. In order to evaluate the condition that may make subscribers switch to new service providers, impact of general advertisement, ease in locating general advertisement, perceived usefulness or personalized services, and privacy concern toward personalized services are identified. There were 205 questionnaires that had been done by students in universities of Hong Kong. All of respondents are mobile service subscribers and experienced in receiving broadcast advertisement from service providers. As a result, general advertisements contribute to the switch of subscribers to the new service provider with personalized services. The authors proposed that difficulty in locating useful general advertisement and perceived usefulness of personalized services positively affect the decision of users to change to a new service provider with personalized services. Hence, the authors suggested that service providers can participate in enhancing the functionality of personalized services to attract more customers as well as more businesses. The result found that the importance of the perceived usefulness of personalization is greater than the concern of privacy. The study indicated that more information of advantages spread to customers may increase the willingness of customers to disclose their private information to service providers to do analysis. Next, subscribers identified that large amount of advertisement make them hard to locate useful messages and feel disturbing. It directly strengthens the persistence of subscribers to change to a new service provider. The result showed that large amount of advertisements do not useful in attracting more customers but lesser customers. The limitation of the study is that there are not all participants have experienced in receiving broadcast advertisement from service providers. Second, the purpose of the study is to identify the impact of broadcast messages from service providers to the switch of customers to new service providers. There is an absence of investigation in issues of commitment of service providers to the subscribers in this study. Last, the evaluation of the differences between personalized advertisement and general advertisement in the perception of users can be further identified in the future, not only customer decision that contributed by general advertisements.
Ahasanul H. et al., (2003) discussed that adoption of mobile commerce in Malaysia is quite low. The study was conducted to find out the perception of Malaysian toward mobile commerce as it could expose the scope of marketing strategies that vendors can emphasize to the mobile commerce. To evaluate the perception of people toward mobile commerce, authors identified that satisfactions of users as well as preferences of users were defined as important attributes. So, factors that were considered can contribute positively to the satisfaction of users to the mobile commerce had to be found out. Moreover, differences on the perception of mobile commerce based on gender were going to be examined by authors in this study. An addition, impact of different types of information to various groups of respondents is examined. There was a total amount of 300 respondents participated in questionnaires of the study as the response. As a result, convenience and simplicity were identified as important factors that may affect the decision of a person toward adoption of mobile commerce. Mobile shopping is the most favored wireless activities that preferred by mobile users when conducting mobile commerce. Furthermore, the authors proposed that SMS is welcomed by people as the most popular application based on its ease of use. According to this, the authors suggested vendors focus on the development of simple and convenience services to users. The study investigated that there is a significant difference on gender perception of mobile commerce. Types of information were not proven by the authors have influence to the adoption of mobile commerce among various respondents. The limitation of the study is that there was not balance of number participants on the group as well as gender aspects that were treated as an area to be identified in the study. According to the study, there was a greater tendency to male, and a greater tendency to respondents who age below 30 rather than distributed questionnaires equally to each group. These tendencies have the possibility to affect the accuracy of the result of the study.
2.4 Opportunities and Challenges of Mobile Commerce
Kim S. H., (2006), presented the study which has provided well understanding of the overall view of wireless commerce by incorporating with four main issues that affect the adoption of mobile commerce as well as actual benefits of mobile commerce. The author disclosed that advantages of adopting mobile commerce more than disadvantages, which derived from mobile commerce. Four main issues that have been measured are measurement issues, security issues, competition issues and standardized issues. In measurement issues, the market of wireless commerce will be more and more close saturation. M-commerce firms are suggested by the author to find the way to stimulate the market of mobile commerce by its services and users. In security issues, the author suggested mobile commerce service provider tailor the security protection for mobile commerce to ensure the success of mobile commerce. Those providers are encouraged to pay attention to the potential future security issues in persistence. Competition issues defined the competitive market of mobile commerce in the future and firms suggested by the author in the managerial plans and technological plan in order to compete with competitors. Firms should evaluate their competitors as well as other internal or external factors that might affect them in managerial plans. Technological plans facilitate the development of advanced technology and network by firms in related to mobile commerce. Standardization issues occurred and face difficulty by mobile commerce services providers due to the matter of hard to integrate all different settings and application. M-commerce firms are suggested by the authors to cooperate with partners in standardization issues. Direct and Indirect benefits of M-commerce have measured by the author not only for individuals but also for companies. Substantial benefits obtained by companies from mobile commerce in aspect of manufacturing, retailing, finance, and marketing. Benefits of individual are better data exchange and communication. The limitation of this study is that the author did not involve any survey or analysis about the issues and benefits of mobile commerce.
Shahidul Islam Sheikh, (2006) provided an understandable study on how the M-commerce can be utilized by the customers today. The purposes of the study involve in identifying the benefits and barriers of the mobile commerce to the customers. Moreover, the buying process of the mobile commerce is to be examined in the study. There is total of six respondents in the study. There are 3 respondents from eastern part of Bangladesh and there are 3 respondents from western part of Sweden. The author proposed that mobile financial services, micro-payments, macro-payments, mobile banking, funds transfer between accounts and stock trading are the benefits found in the study. Micro-payments are found to be the most popular among the users. Moreover, ease of use is significant affect the adoption of the users toward mobile commerce. The author examined that individuals with great intention to use mobile devices and with high level of income are likely to adopt mobile commerce. The result of the study is shown that advertising as a tool important to the buying process of the mobile commerce. Requirement of having educational knowledge is suggested in conducting the buying process of the mobile commerce. A user will probably buy a product by using a mobile device if there is enthusiasm on adopting innovative wireless technology. The author presented that high cost, slow speed of connection, absence of support from the government and the security problem are the major concerns of the users to the mobile commerce. The limitation of the study is that the sample size of the study is too small in which the study only involve six respondents.
2.5 Perception of Mobile Commerce in Customer and Company Aspects
Rajnish T. et al. presented that mobile commerce provide opportunities for the banking sector in developing attractive, value-added and innovative services for customers. The study examined the acceptance of mobile commerce in the banking sector (mobile commerce). Mobile banking facilitates the process of complete bank-related transactions. Objective of finding core target customer groups for mobile banking are investigated. Next, factors that motivate banks to provide mobile commerce are examined. The components related to the inhibition toward mobile commerce by banks are involved. The survey was conducted involves 16 banks in Germany. 12 out of 16 banks currently provide mobile financial services to the customers. Another 1 participant is planning to provide this service in the future. The authors found that decision that other banks against mobile banking due to the reason of bad experience from the aftermath of dotcom burst, lack of demand, high cost and fewer establishments of standard that can integrate all different devices and systems. Banks in Germany have a more interest in targeting groups of technology fans and students and executives in companies as their potential customers of mobile banking. Furthermore, banks are identified to be more motivated by “soft” strategic reason like image than “hard” strategic reason such as cost reduction. The result of banks analyzed that there is an expectation in developing mobile banking as an important channel of distribution in a medium to long run. On the other hand, the study conducted the analysis of perception of mobile banking in the aspect of customers. It identified advantages and disadvantages that perceived in mind of people who include users and non-users. Familiarity of participants toward mobile banking and preferences of respondents toward each bank are examined. There is a total of 452 respondents participate in this study. All respondents involved in the desired targeted group of the bank (e.g. young and business people). The authors proposed that there are above half of respondents familiar with online banking. Saving banks are found to be preferred by the young whom have age below 20. Young professionals (age 21-30) prefer direct banks while professionals who have a range of ages from 31 to 40 prefer big banks. Advantage of ubiquity that a