Academic journal article Researchers World

An Empirical Study on Consumer Adoption of Mobile Payments in Bangalore City - a Case Study

Academic journal article Researchers World

An Empirical Study on Consumer Adoption of Mobile Payments in Bangalore City - a Case Study

Article excerpt

ABSTRACT

Man started writing letters in the past and now he is using email, SMS and MMS alternatives to communicate where the message is conveyed to the end within a fraction of second instead of 3-4 days in the past. Innovation has been a reality in step after step but it didn't happen overnight. Whenever a new innovation was released for public consumption, it was blindly hailed and consumed as they were tired of older alternatives. Unfortunately miscreants all around the world have updated their skills to throw tantrums at the system as it gets better for eg: bank frauds, fund transfer frauds, stock market hacking etc. As these high profile attacks have taken place and wide publicity has been given to these incidents, people have grown extremely conservative to safeguard their interests, resources etc. Any innovation is looked with skepticism and consumers so particular about liabilities and risk in adopting a new system. It is widely said that technology has widely shrunk distance in the world. Every technological invention and even updates of products and services were swiftly consumed by tech starved generation. Be it business community or the end consumer; if there is a technology that was to be immediately infused in the service process to gain advantage over the other players in the market, consumers want the best product as fast as possible to envy others. Modern man has earned the tag of quick exploiter of any technology that may give cost competency, customer value or even competitive edge. But situation in the market becomes really puzzled when some technologies that are proven will not be accepted by the consumer on many grounds. There are lots of intuitions and reasons to answer why mobile payment is not being accepted. Mere intuition or a guess doesn't represent fact and marketing decisions that are not based on facts are fruitless. A research is need of the day to find out the factors and predict their capability to induce behavioral intention among consumers to use mobile payments.

Research Methodology adopted for the study is of descriptive methodology. Questionnaire method is used to extract data. The paper identifies factors that have shown consistent relationship with the mobile payment adoption and attempts to group it by the method of ANOVA.

Keywords: Mobile, Consumer, Adoption, Technology

INTRODUCTION:

All over the world, mobile phone users in the graph are growing at a healthy rate despite dismal figures of economic growth at key developed economies. There are many applications that fall in the area of mobile telephony like mobile advertising, entertainment services. Among all these applications, mobile payment is the application that is predicted to have the largest potential. This application gives a customer good value services by allowing the customer to transact irrespective of working hours, places beyond geographies almost nullifying the distance constraint(Coursaris and Hassanein, 2003; Dahlberg et al., 2008; Varshney and Vetter, 2002). Though the initial description of technology seemed to be very hi fiand highly advanced, experts have worked hard to prove the technologies that support this application and brand it as a proven technology. Interestingly mobile payment has not been adopted widely by the population as other cashless non payment modes such as credit cards and e-payment systems. Even in advanced countries like Japan and South Korea, there are no major success stories (Bradford and Hayashi 2007; Dahlberg et al., 2008). There is a large gap in the understanding of mobile telephony market by business community about the factors that hinders the adoption. As we know that certain technologies won't get approval of customers easily, market estimations can take a little bit conservative side to predict the growth of many technology adoptions. In the year 2000, Gartner research estimated that mobile payment's transaction value would grow by $15 billion. Again in the year 2005 Gartner came out with the estimation that in Western Europe itself the user numbers would rise to 104 million. …

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