M-Commerce Mobile Commerce Evolution

M-Commerce and Its Evolution

An m-commerce (mobile commerce) business model allows customers to complete every steps of the commercial transaction by utilising mobile phones rather than visiting to the physical or brick and mortar store. The experts of technology predict that the mobile wireless communications by 2020 are possibly to be available to anywhere and anyone throughout the globe at very low cost. But it is important to develop and maintain the trust and satisfaction of customers as well as reducing their risks involved in online payments and transactions. It is specifically true in case of cross-border consumption, as less familiarity with the overseas systems and policies makes it more complex for end users to comprehend their rights and easily use mobile devices for online purchasing. In this regards, the report here is inculcating about development of m-commerce by scrutinising the enabling tools, the mobile commerce impact on the business world and the evolving battle of Android and Apple IOS. Also, the online security issues and ethical and legal concerns for the sellers are discussed at the end.

Use of m-commerce technology and its effects on future retailers

Systems and devices based on mobile techniques are now a part of daily life. These systems and devices include pagers, cellular phones, two-way radios, cordless telephone, remote systems of car locking, baby crib monitors, a system of wireless networking, electronic monitoring devices for parolees and GPS (global positioning system) based maps and locators. Sometimes such systems and devices facilitate undertaking existing activities more efficiently and effectively; at other times, they also allow completely distinct and novel activities (Sahaand Mukherjee, 2003).

The advancement in wireless techniques increased the users of mobile phones and given pace to rapid development of the economy with the effective utilisation of such devices. A type of e-commerce, i.e. dealing through mobile terminals is developed, which is referred to mobile commerce. According to Sadeh (2002) m-commerce more widely characterises as the emerging services and set of applications that can be accessed by people from their smart and internet enabled cell-phones. Basically, the m-commerce occurs in a strategic platform, which is referred to a ‘mobile portal’. There fourth-generation (4G) and third-generation (3G) systems of mobile communication provides a high level of commonality of global roaming capability, which is supporting a wide multimedia and internet services and applications with higher rates of data (Sadeh, 2003).

Due to its intrinsic characteristics, like personalisation, ubiquity, dissemination and flexibility, the m-commerce promises unprecedented market potential of business, high profitability and great productivity. The crux of e-commerce revolves around the idea to reach employees, suppliers as well as customers regardless of places where they are situated. It is about transferring correct information to right place at an exact time. Such mobile commerce flexibility is made possible through the convergence of enterprise applications, internet and wireless techniques (Siau, Ee-Peng and Shen, 2001).

Also, the mobile explosion over last some years has been surprising. It is expected that in the current year around twenty billion of cell phones will be sold. It is not just there is increasing production of mobile phones rather the human being is increasingly relying upon them. In fact, in US there are nine out of 10 customers keeping their mobiles phones 24/7 in reach. It has great ramifications for the retailers, specifically for the online commerce, where 30% of US e-commerce already accounts for m-commerce and is estimated to develop 300% quicker than the traditional e-commerce. The individuals rely on their cell phones all through the day. In actual fact, 91% use their phones while accomplishing some other tasks (Kumar, 2016). Since, the human beings are becoming more reliant on the mobile devices; they are expecting to get exactly what they required in the period when they actually need it. Such mobile mind-set of customers’ presents for the retailers ‘unprecedented opportunities to engage with their clients on cell phones and which also enables the brands to give their consumers exactly what they require instantly.

However, there is a challenge for several retailers that well-known approaches to adapt desktop experiences to cell phones, i.e. an appropriate Web design fall short when it comes to contextual experiences delivery. In order to keep up with the need of their customers during their smart phone moments, retailers need to solve response limitations, for instance, by MEO (mobile experience optimisation) on the top area of their responsive websites (Rigby, 2011).

The retailers are also losing $18 billion on annual basis because of the abandonment of their shopping cart. Moreover, it has been shown by research that over 2 out of 3 users who add any item in their online shopping cart just leave without actually buying it. Even the numbers are worse on smart phones where the rates of conversion are 70% less than the desktop. But 2015 was considered as a pivotal period for the shopping by using mobiles. For instance, in the season of holiday, smart phones play an important role than ever, with 82% improvement in revenue due to the 45% increase in traffic on mobile. In fact, the mobile phone generates 57% and more traffic and nearly 30% revenue during the holidays (De Silva, 2015). Moreover, with m-commerce expected to increase more quickly than the traditional e-commerce, the more retailers will focus on executing a seamless experience of checkout in the coming period.

M-Commerce Dissertation
M-Commerce Dissertation

Figure 1: Monthly US visitors across retail websites. (Source: Smith, 2014)

The concept of mobile commerce will possibly emerge as a main focus of the telecommunication sector and the business organisations in the immediate future. The experience of offline shopping covers huge range of emotions by comprising several forms of social interactions with human beings (Tauber, 1972). On the contrary, the experience of online shopping might be viewed as lacking sociability and human warmth, as it attempts to be more anonymous, automated and impersonal (Wangand Emurian, 2005). The experiences attained while shopping comprise positive emotions that have been linked to several important results, like increased time spent at the store, increased spending and improved level of purchasing (Jones, 1999). Moreover, the social aspects of shopping have been considered as the main contributor towards customers’ favourable connection with the retailers.

A significant challenge is faced by the online sellers in making their virtual outlets socially rich as well as in making their services and products appear eye catching to the target customers (Kim, 2002).

In future, it would be hard to earn maximum profits and retailers will be challenged to become more smart venders. Also, they will be required to identify unique methods of reaching customers and more effective methods of measuring their marketing attempts performances. Furthermore, mobile will cease being a developing channel of marketing and will become essential for the retailer to market their brand and measure themselves. Therefore, those who will be fail to integrate and adopt today’s customers’ mind-set for mobile will become the casualties of shift in next digital paradigm (Fulgoniand Lipsman, 2016).

M-Commerce Business
M-Commerce Business

Figure 2: US retail sales growth rate by channels. (Source: McDermott, 2014)

How the battle between Android and Apple IOS will evolve in next five years

In the year 2007, Apple released iPhone based on their iOS mobile operating system. A year later after the grand reception of the revolutionary smart phones by Apple, Google launched Android mobile operating system under an open source license. Since then, Apple and Google have been engaged in a fierce competition for the mobile phone market share around the world. A broader view suggests that the battle between the two has been resulted in offering of more and more alike services. It happened due to borrowing features from each other’s and providing basic Smartphone functions like web browsing, app permissions and running, file sharing in similar ways. Though in recent times, the customer preference to select one of the two primarily depends on add on services and apps that comes along with them ranging from email, cloud services to VR and even mobile payment solutions (Tilson, Sorensen and Lyytinen, 2012).

One of the key differences between Android and iOS remains that Apple’s applications are tied to and updated at the same time as the mobile OS, whereas Google’s applications update are customizable and left on the choice of customers. Another key difference in the line is that use of Android applications across several devices such as Smartphone, laptops, tablets or desktops is smooth whether customers use these devices from the same manufacturer or not. On the other hand Apple doesn’t like their customers to switch the manufacture because Apple produces all these devices itself. Therefore, it’s easier to work across these devices if made by Apple and harder to get out of the Apple’s ecosystem.

Apple took similar approach with the iPhone as they took with their desktop operating system Macintosh. They launched a revolutionary device for a much higher price than existing products with outstanding features and capabilities. On the other hand, Android took approach similar to that of Microsoft and became like “Windows” of the smart phone operating system. The open source license enabled a lot of manufacturers to offer low-cost devices with same features as Apple. As a result, Google’s Android compete Apple’s iOS with its increased percentage of market share in year 2012.

Though, studies suggest that with respect to e-commerce transactions, Apple’s iOS is still ahead of Android in developed economies and average order value around the world. Even though, top choice of customers in m-commerce remains Apple but in reality the Android adoption has increased over the years. With respect to current annual traffic growth, Android’s rate 56% is ahead of Apple’s 33%. Also, the customers are using cell-phones and tablets to shop across mobile sites and apps that ultimately create challenge to the mobile strategies of retailers.

Consumers are also using both tablets and smart phones to shop across apps and mobile sites, which adds complexity for retailer mobile strategies. These trends suggest that, in the longer term it is expected that Android customers will become highly valuable and companies around the globe which offers m-commerce services would design their products specifically for Android customers. The online venders are required to explore such trends and change their m-commerce approach to create a strong presence on every device and platform with a reliable experience to users (Kenney and Pon, 2011).

The potential customers of mobile payments services are from the 25 to 34 years of age group, with 78% in this age group. Furthermore, the most purchased services are music, which is followed by books, travel tickets, electronic products and apparel. Study also reveals that mobile purchase choices is more dependent on convenience rather than price because users are selecting high-value items like hotels, train tickets and clothing together with the economic products. In conclusion it can be said that consumers are growing more comfortable shopping on mobile and Apple mobile payment buyers spend more time and money than Android mobile payment buyers.

Security, legal and ethical issues in m-commerce

The e-commerce implementation comprises several legal issues. These issues can be classified in varied manner, such as jurisdiction over trades, internet gambling and encryption policies. On the contrary, the ethical issues are concerned with what is considered to be wrong and right. There are many significant policy issues raise by the mobile commerce, specifically in relation to inadequate disclosure of information, unsolicited sales and minor protection. Besides this, SMS spam and unauthorised use are some additional issues (Mehra, 2015).

A high risk of crime is being carried by the wireless network. Hackers can erase and steal data and information from the cell-phone devices and disrupt the traffic on wireless network by overloading it with phone messages and information. The mobiles are also infected by virus, which cause them to randomly switch of or erase all information and addresses from it. Based on the surveys of Georgia Tech (1997 and 1998), the internet face most significant issues in relation to privacy, taxation, encryption, navigation and censorship (Niranjanamurthy and Chahar, 2013).

In particular, the privacy has long been a social and legal issue in many countries. With the increasing and broad use of e-commerce and internet, the privacy issue becomes more challenging. In this regards, an organisation known as the Electronic Privacy Information Centre is constantly working on safeguarding the privacy (ROTENBERG et al., 2003). The e-commerce security is an important portion of Information Security framework and is especially pragmatic to the constituents that creates impact on the electronic commerce including Data security, Computer Security and several other wide Information Security framework realms. The security at e-commerce has its own specific nuances and is considered as the key visible security constituents, which influence the end user by their day to day payment transactions with the organisation. Therefore, security and privacy in today’s internet era are the main consideration for e-commerce and m-commerce technologies (Massoud, n.d).

In addition to above, the privacy concerns in m-commerce have been also identified in revealing less trust in several contexts, like commerce, electronic health records, technology of e-recruitment and social networking that directly influence the response of end-users. Furthermore, the main and constant concern for the online retailers is security that restrict organisation and customers engaging via e-commerce. Also, the web e-commerce applications handle payments by electronic transactions as well as using debit and credit cards and online banking and PayPal are closely linked with the compliance issues (Mennecke and Strader, 2003).

Moreover, shopping online through websites includes several steps to buy a commodity with complete security and safety. The online mobile transactions require customers to reveal a large number of sensitive personal data to the seller by placing themselves at a great risk. Thus, comprehending and gaining trust of customers is significant for the m-commerce regular development. Also, the function of electronic payment in online shopping is the main issue to ensure that customers are convenient and fast as well as to ensure the parties secrecy and safety to a transaction that requires a complete electronic systems of trading (Caudill and Murphy, 2000).


It can be concluded that e-commerce is mainly considered as the products selling and buying over the internet, but any transaction which is solely accomplished through electronic systems can be called as e-commerce. The concepts of m-commerce and e-commerce is playing a great role in today’s retail businesses, as people utilising mobile devices for their transactions and purchases are regularly increasing around the globe. However, the e-commerce is not free from several securities, ethical and legal issues, due to the unauthorised use, destruction, alteration and access over the retailers’ site. The fraudsters are continuously looking to take benefit of online shoppers, who are liable of making novice errors.

Some common mistakes that leave customers at risk include shopping on insure websites, leaving the devices open to viruses and providing too much sensitive or personal information. Therefore, the online retailers are require to apply proper ethical standards to their online transactions and selling practise, in order to gain customers trust and offer them safe and secure shopping method. It is because all the business aspects are greatly affected by ethics. Also, it creates impact on the brand image and subsequently the advertising, marketing and selling functions of the business. Thus, in order to keep up and increase revenue with growing mobile uses and online shopping behaviours of customers, the sellers needs to consider code of conduct related to m-commerce operations.


Caudill, E.M. and Murphy, P.E., 2000. Consumer online privacy: Legal and ethical issues. Journal of Public Policy & Marketing, 19(1), pp.7-19.

De Silva, G.H.B.A., 2015. Determinants of Online Buying Behavior.

Fulgoni, G.M. and Lipsman, A., 2016. The Future of Retail Is Mobile. Journal of Advertising Research, 56(4), pp.346-351.

Jones, M.A., 1999. Entertaining shopping experiences: an exploratory investigation. Journal of retailing and consumer services, 6(3), pp.129-139.

Kenney, M. and Pon, B., 2011. Structuring the smartphone industry: is the mobile internet OS platform the key. Journal of Industry, Competition and Trade, 11(3), pp.239-261.

Kim, Y.K., 2002. Consumer value: an application to mall and Internet shopping. International Journal of Retail & Distribution Management, 30(12), pp.595-602.

Kumar, H., 2016. Mobile Commerce Trends to Buy Into. The Experience, M-Commerce.

Massoud, S.L., n.d. Ethical and Legal Issues in E-Commerce.

McDermott, J., 2014. The future of retail in 5 charts.

Mehra, J., 2015. E-commerce: Opportunities and Challenges. The International Journal of Business & Management, 3(1), p.182.

Mennecke, B.E. and Strader, T.J. eds., 2003. Mobile commerce: technology, theory, and applications. IGI Global.

Niranjanamurthy, M. and Chahar, D.D., 2013. The study of e-commerce security issues and solutions. International Journal of Advanced Research in Computer and Communication Engineering, 2(7).

Rigby, D., 2011. The future of shopping. Harvard Business Review, 89(12), pp.65-76.

ROTENBERG, M., BUTLER, A., MCCALL, G., HORWITZ, J. and HUSBAND, D., 2003. Electronic Privacy Information Center.

Sadeh, N., 2003. M-commerce: technologies, services, and business models. John Wiley & Sons.

Saha, D. and Mukherjee, A., 2003. Pervasive computing: a paradigm for the 21st century. Computer, 36(3), pp.25-31.

Siau, K., Ee-Peng, L. and Shen, Z., 2001. Mobile commerce: promises, challenges, and research agenda. Journal of Database management, 12(3), p.4.

Smith, C., 2014. THE E-COMMERCE REPORT: Mobile Is Giving Traditional Retailers A Chance To Bounce Back These Holidays.

Tauber, E.M., 1972. Why do people shop. The Journal of Marketing, pp.46-49.

Tilson, D., Sorensen, C. and Lyytinen, K., 2012, January. Change and control paradoxes in mobile infrastructure innovation: the Android and iOS mobile operating systems cases. In System Science (HICSS), 2012 45th Hawaii International Conference on (pp. 1324-1333). IEEE.

Wang, Y.D. and Emurian, H.H., 2005. An overview of online trust: Concepts, elements, and implications. Computers in human behavior, 21(1), pp.105-125.

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I do hope you enjoyed reading this post on the evolution of M-Commerce. There are many other titles available in the IT Dissertation Collection that should be of interest to information technology and computer science students and information technology professionals. There are many dissertation titles that relate to other aspects of information technology such as Network Security, Information Systems, ERP, Software, IT Infrastructure, Programming, Telecommunications, eLearning, eCommerce, Wireless Networks and Systems Analysis. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.

Innovation and Technology Usage on Business

What is the Impact of Innovation and Technology Usage on Business Management?

Click Here To View The Dissertation

The dissertation focuses on the impact of innovation and technology on business management. For this purpose, the pharmaceutical industry was targeted and specifically Pfizer was selected for the purpose of conducting the research. The company has created a solid reputation within the industry and thus a systematic approach of the mentioned key ideas on this individual business entity would provide a further insight on the matter. Thus, a brief summary of this whole scenario would be that Innovation involves using an idea more efficiently.

The significance of innovation and technology cannot be denied since it has resolved number of environmental and organizational challenges. For example, use of environmental instruments, energy technologies, innovation in products, organizations and processes etc. In present era, despite of innovation and technological advancements, many organizations are still suffering from low productivity. This research aims at analyzing the impact of innovation and technology on business management by examining the Pfizer pharmaceutical case study.

Innovation and Technology Usage on Business Management
Innovation and Technology Usage on Business Management

This has unfolded the findings which were helpful in generating results for the betterment of organization and formulating innovative strategies and processes. The research allows one to generate the difference between the two major aspects. Though, these two go hand in hand, yet they are dissimilar in many ways. The idea is evident from various examples such as innovative business procedures and technological advancements. Many believe that these innovative business decisions were created via technological advancements. Hence, all these aspects have been clearly mentioned in this dissertation report.

Dissertation Aims

  • To explore innovative strategies which are effective for pharmaceutical company (Pfizer Pharmaceutical) where, the main focus is on the pharmaceutical industry and how this particular company fosters innovation in order to become effective and efficient in its field of operations.
  • To formulate competitive growth strategies and find out their impact on business management which is the essential need of the moment. Many business organizations are suffering despite the fact that they are innovative and have various methodologies in order to become effective and efficient. Thus, this research aims to provide such companies with a chance to experience growth and create a perfect business environment for growth.
  • To analyse the impact of changing innovation and technology on business management in case of Pfizer pharmaceutical as it has been previously talked upon that technology is considered as one of the major indicators of change and allows a company to go beyond its true potential at a particular point in time.
  • To evaluate critically the impact of innovation and technology on business management keeping in view the Pfizer pharmaceutical so as to provide a clear idea regarding the impact of innovation keeping in mind a pharmaceutical company. This would allow others to learn the process of taming the beast which they call “Innovation” as they are eager to incorporate it to achieve a higher end.

Click Here To View The Dissertation

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Technology Acceptance Model

The Adoption Rate of E-Mobile Banking is an Impact of Customers’ Acceptance of Information Technology in the Banking Sector

The information and telecommunications industry had been a key enabler of productivity across the societies and economies. The IT innovation is not only a significant contributor to the economies of a state, but also towards the growth of the industries. In the present days, banking industries have felt the influence of the telecommunications by a margin among other industries. The emerging information technology trends in across states had been a concern of the researchers. Precisely, m-banking services have had an uptake as the banking industry have enhanced access of service with convenience and ease to use cell phones. This thesis study is aimed to an extensive provide research on the most influencing factors affecting adoption of the technology in banking industry. In this case therefore, the research will place focus on the m-banking services in Australian banking sector (Drennan et al., 2009). The study incorporates Technology Acceptance Model to derive a conceptual framework in order to address its objective and research questions. In this study, data will be gathered from literature reviews and analysts, questionnaires, and interviews. The collected information from interviewing 40 respondents through a survey questionnaire will be used to compare and provide discussion on the factors influencing m-banking adoption rate. Data analysis methods will include weighted mean calculation, for analyzing the questionnaire data, and regression method to test the correlations and significance of factors influencing adoption rate of m-banking.

Chapter One: Background Of The Study

Banking industry in the contemporary world has been intensive users of technologies. Since its emergence, technologies have rendered essential roles to industries to deliver quality products and services. Particularly, their essence had risen from financial technologies such as information and telecommunications across nations. In comparison of the recent IT and telecommunications services with those provided in early 1970s, it is clear that, there had been a complete transformation of technology acceptance and adoption rate in banking industries. This way, there had been numerous researches as an area of interest to scholars, managers, and scientist to explore as the apparent world has taken a new face of technology (Drennan et al., 2009).

This research paper, therefore, places attempt to further past research basing on the past theoretical views of technology acceptance model.

Research topic

The adoption rate of e-mobile banking is an impact of customers’ acceptance of information technology and telecommunications innovation in the banking sector.

Statement of the problem

The adoption rate of any advancement of technology is not guaranteed that it will translate into consumer adoption. However, consumers’ acceptance and their willingness to adopt new technology have been evidence to be a crucial aspect to the banking industry. This is especially in implementation of new product development and marketing. In which technology diffusion is partially determined whether potential users accept and adopt the technology employed.

Significance of the study

Not only scarce research on the technology acceptance and adoption had been a hindrance to the banking sector, but also a limit to managers to understand the priorities of the formation of intentions to accept and adopt mobile e-services. Precisely, this research study focus on the factors affecting technology acceptance model as proposed by Fred Davis. It seeks to expand research on the significance of the factors affecting TAM. This knowledge helps stakeholders in realizing the prevailing environment and its trends in the subject sector.

Objectives of the study

Primary objective

  1. To determine the significance of the factors affecting adoption of m-banking industry.
  2. To determine the significance of the factors influencing technology acceptance model.
  3. To understand consumer behaviors influence on the product development and marketing.
  4. To understand better on how adoption of m-banking has impacted financial services in the banking industry.
  5. To offer recommendation towards designing of effective m-banking marketing strategies.
  6. Do the potential customers perceive the relevance of the e-mobile banking?
  7. Do the potential customers perceive mobile e-service easy to use?
  8. Does the cell phone banking influence users attitude towards adoption.
  9. Does the intention to adopt the e-mobile banking influence consumer behavior.

Chapter Two: Literature Review

Internet mobile banking

Internet banking and mobile banking are both essential subsets of e-banking services. According to Lassar (2005, p. 177), internet banking can be defined as an electronic system that allows potential customers to perform various banking services electronically through bank’s website. It is an internet features which in the present day; mobile phones have been provided web surfing capabilities. It is an apparent trend of adoption of new mobile phones technologies that can enable users to access internet through their hand-held devices. The mobiles phones capabilities are enhanced by the wireless application protocol (WAP) cell phone banking with a similar inter-face to internet banking. Only that, the hand-held device is supported by the GPRS, WAP, EDGE, or 3G.

Internet mobile banking had been a fundamental change in the banking sector in the recent years. It is evidenced by the consumer movement from the conventional branch banking into more stand-alone banking services via electronic delivery channels than office branch. However, following the acceptance and intention to adopt new technology Chan (2001, p.10); modified the initial definition of mobile banking. His argument posits that mobile internet banking is an electronic transaction service via bank’s website by using a computer a computer and a modem to access internet. It is a field of study that researchers have considered the influence and the adoption of e-mobile banking. according to Suoranta & Mattila (2004, p. 364).typical e-mobile banking users will continue to use the wired channel while the current users of the automated bill payment and the branch offices will be shifted to mobile phone banking.

This way, cell phone banking users, cannot be drawn from the heavy internet banking users probably, because, they will continue using internet banking. Besides, he posit rationality for banks not to invest convincing its regular internet users to adopt a new electronic, but they should or rather attempt to enable potential customers outside this segment to be interested with the advantages of mobile phone banking. Precisely, the relevant performance of the new technology should be inessential issue of concern to the banking industry influence a change in accordance to customers on taste and preference.

Technology acceptance model

The initials steps required for adoption of the emerging information technology had been a hindrance of banking performance. It involves establishing which purpose the intended new system will address and what functionality the bank requires. This way, for any e-portfolio system the bank need to establish which one size fits all; corresponding to a series of standard functionalities (Zhang, et al., 2007).

Technology acceptance and its usage had been a focal point in a wide range of research studies. In this case, TAM application enabled understanding of conceptual issues related to the e-portfolio use. In which several theoretical models have been applied to provide sufficient study on user acceptance and usage behavior of emerging information technology trends. Several studies, including Roger’s diffusion theory, Theory of Planned Behavior, and Theory of Reason Action (TRA) gave inception of the Technology Acceptance Model. TAM has emerged to be preferable model that represents the preceding theories of technology usage through the profound beliefs related to the perceived usefulness and its ease of a technology. The previous researches have shown the powerfulness of TAM over other theories of the as a basis to explain the variance in systems use (Davis, 1989).

Technology Acceptance Model
Technology Acceptance Model

(Pearlson& Saunders, 2006) argues that, the use of TAM is predicted on the decision on or rather attention of individuals having control whether or not they accept the use of the system. The factors in the model are perceived usefulness, perceived ease of use and the attitude towards the usage of the system and adoption. The behavioral intention to use by the potential customers is the essentials factor that draws whether the users will actually utilize the information technology introduced. This way, the firm may draw critical decisions-making to enhance its performance especially in the banking sector (Ajzen& Fishbein, 2000).This theoretical view, therefore, derives the of propositions below;

Technology Acceptance Model and study of e-mobile banking

The mobile services convenience and promptness to customers had been growing concerns to academic researchers. Accordingly, a past growing body of academic research has examined the determinants of the cell phone banking acceptance and its utilization (Arora et al., 2011),.

Dillon and Morris (1998, p.5) portrays the technology acceptance as the demonstrable willingness of individuals within a group to employ IT for the designed task as intended to support. Basically, the research investigated the instrumental influences involving beliefs on how to utilize technology. This way, it results in the objectives hence improvements in the performance. (Thompson, et al., 2006) argue that non-instrumental factors may be limiting factors on the acceptance of the technology. However, the TAM posits that, perceived usefulness and perceived ease of utility are the fundamental detriment that influences an individual behavioral intention (Hu et al. 1999).

According to Laurin and Lin (2005, p. 878) research; it extended the technology acceptance model. Their perspective towards understanding of the behavioral intention to the utility of the mobile banking survey was conducted in Taiwan included the perceived credibility, perceived self-efficacy and the perceived financial costs in m-banking context (see figure 1).In their research, they revealed that, all stated factors have effects on the behavioral, and the perceived credibility is evidenced to be the most contributing factor to intention. However, on later study to generalize their earlier m-banking acceptance model, Wang, Lin and Laurn (2006) adopted an extended constructs. That is perceived usefulness had a significant contribution followed by the perceived ease of usage contributed behavior attention.

Another study by Cheong and Park (2008) carried out research on reluctance factors of the Korean’s to adopt m-banking services. In addition to the conventional TAM factors included additional constructs; facilitating conditions and the switching barriers. The findings in the research show that facilitating conditions affluence the positively the intention to use m-payment, whilst switching barriers negatively affected the behavioral intentions. Besides, Gu et al., (2009) research in Korea examined the determinants of the mobile banking. The authors introduced another factor; it considered trust as an additional key construct of the behavioral intention to utilize an introduced technology. In addition to self-efficacy, social influence, facilitating conditions, system quality, structural assurance, familiarity with the bank, and calculated-based on trusts were indicated as the key constructs of behavioral intentions. However, perceived usefulness and ease to use were the most contributing factors on behavioral intentions.

Another stream of research in developing countries was carried out to understand the socio-economic and technological impacts of m-banking adoption. Research placed study that m-banking in developing countries is considered as a complimentary service offered by the banking industry. It is considered an alternative of ATMs and internet banking. However, important criteria such as convenience and ease to use seemed to be important when they consider adopting m-banking. The appeal for the cell phone banking in developing countries revealed that influence on the convenience may be less than accessibility and affordability due to the network quality connection, coverage, and costs (Donner and Tellez, 2008). However, Laforet and Li (2005) investigation in developed countries; examined consumer behavior, motivation, attitude, and cultural influence on the m-banking in China. In the findings, customers in China do not attach much importance on m-banking convenience but perceived risks and technological skills are the most influential factors.

Lastly, Sripalawat et al. (2011) carried out to examine positive and negative factors influencing m-banking acceptance in Thailand. The research considered subjective norms, self-efficacy, perceived usefulness, and perceived ease to use as the positive factors. Contrary, the study considered device barrier, lack of information, perceived risk, and financial costs as the negative factors. Their findings not only revealed that positive factors are the most influential than negative factors, but also subjective norms to be the most influential amongst positive factors.

Conceptual framework

The conceptual framework deduces its constructs from the past literature reviews as from chapter two. The study basis is from the extended Technology Acceptance Model by of Luarn and Lin (2005). Its shows the factors which influence the adoption of cell phone banking. The constructs suggests that the technology user adoption of a new information system fundamentally determined by two factors; perceived usefulness and the perceived ease of use of the system. In addition, perceived credibility, efficacy and financial cost also affects the behavioral intentions of users to adopt m-banking. The model in this case, therefore, states the gaps between the past literatures reviews and the current study.


The successful marketing of the new technology remains one of the crucial aspects of banking industry that employs technology to satisfy customers across border. However, it places challenges when addressing the factors that influence potential customer’s decision to adopt the newly introduced technology. It requires better understanding on behavioral intentions to accept new technology. Specifically, the influence of beliefs of the existing technology moderates its adoption necessary another technology. This way, the study will gain better understanding through the past tentative literature reviews and followed by empirical research amongst customers. Besides, the study will provide extensive information to the field of marketing with possible strategies to m-banking.

Chapter Three: Methodology

This chapter provides discussion on the methodologies and various data collection techniques. These techniques will be employed as demanded by objectives of the study. The research methods were designed owing to the objectives of the study. For this reason, therefore, the strategies which the paper will use are to determine the major significance of the factors affecting adoption rate of mobile banking (Bryman, 2012).

Research approach

Philosophical approaches enable planning of the research design and the choice of methodology. It provides guide in choosing appropriate research methods regarding to the research objectives and research questions. In accordance, they follow research design choice, performance, assessment of design and the research quality. Besides, they are approaches which provides guide of the choices available from epistemology and ethnology as well (Johnson, 2000). Regarding ethnology, the paper will use realism paradigm to address the hypothesis of the study. This way the paper will adopt realism of factors affecting significantly the behavioral intentions to adopt mobile banking in Australia. On the other hand, the paper will use objectivity as its epistemology approach to base on the assumptions to deduce results without biasness. The researcher, therefore, will carry out the study in a neutral state to address the objectives successfully (Bryman, 2012).

The overview of the research methodology which the study will employ involves three-layer approach (see figure 2). It provides aims of developing an experimental framework to study the empirical findings. It incorporates a combination of both the primary and secondary data necessary to validate the study accordingly. This way, the paper will be able to test null hypothesis about a specific factor influence on the m-banking adoption (Saunders et al., 2012). The hypotheses derive form from the TAM literature review and interview data collected are as below.

  • H 1: perceived usefulness has a significant influence on the m-banking adoption rate
  • H 2: Perceived ease of use has a significant influence on the m-banking adoption rate
  • H 3: Perceived credibility has a significant influence on the m-banking adoption rate
  • H 4: Perceived self-efficacy has a significant influence on the m-banking adoption rate
  • H 5: Perceived financial cost has a significant influence on the m-banking adoption rate

Justification of the research methods

Basing the research actual need, qualitative and quantitative analysis will be used. The study sought to choose both techniques because it will employ to determine the significance of the specific factor on m-banking. It will therefore include the weighted mean average and regression analysis of the primary data. Amongst the techniques which will be used, the study will prefer interviews to be most appropriate to facilitate survey questionnaires effectively.

Questionnaire design

Technology Acceptance Model accommodated the banking industry analysis. Accordingly, it make it best-suited theoretical framework to study the factors affecting cell phone banking. The model will refer to the significance of the factors to determine behavioral intentions of the potential customer to adopt it. This way in provided a conceptual framework to address the hypothesis as it involves lots of internet participant of varied dimensions such as the customers, suppliers and other stakeholders. To improve on the validity and credibility, the study will paper will use both closed and open-ended questionnaires: in which questionnaire form will contain demographic questions, ratings for the constructs influencing m-banking adoptions, and throws open questions to try cover in summary any factor beyond the listed ones (Oppenheim, 2000).

Data collection

Primary data collection

In order to identify the significance of the key factors affecting the adoption of m-banking in Australia banking industry, respondents from top three bank’s respondents will be selected. This will be the primary source to form the null hypothesis to be tested in the study. The selection is based on the assumption that these respondents understand the nature of the industry banking services especially m-banking. This way, will ensure the result will fit into the context of the study. Besides, the data collection method will follow the questionnaire design mentioned above (see section 3.3).

Secondary data collection

Apart from the past literature reviews, the study will also use secondary method to source information from the bank managers. It will obtain answers regarding significances of factors affecting m-banking by processing questionnaires avenues such as the number subscribers, m-banking frequencies and customers’ satisfaction feedback messages. Similarly, it will access data from the bank’s customer care desks data concerning the subject matter of the study covering the limited range of two years; the past year of 2013 and to the current records of 2014 (Matthews et al., 2010).

Face-to-face interviews Justifications

Face-to-face interview technique had been most preferable over the past years to date. Researchers, analysts and journals had found it effective for empirical studies. Since it develops life participation in which the informant feels he or she is involved. Hence, attains a sense of ownership of the study too. Put simpler, it is an in-depth direct and a repeated face-to-face interaction between the researcher and the informant. This way, it enables the respondent to share freely and openly their opinion about the subject of the study regarding their experience, attitudes and lifestyles. Therefore the research will be in a position to uncover the respondent’s situations, attitudes and experience effectively (Oppenheim, 2000).

Besides, interviews will be used to draw opinions of the respondents. The interview methods will include Face-to-face interviews which is the preferable over email, and in-world interviews.

In-world interview justifications

In-word environment is a recent times innovations which enables internet users to engage in a virtual environment through avatars. It is more like face-to-face social interaction but it is computer mediated communications feature which participant may as well interact through live chats. This is a marketing platform which banking industry places their products advertisement in an immersive environment such as online gaming, videos and so forth. Perhaps it is adopted for some reasons to embraces the Second Life way of doing things in 21st century. In this case, therefore, the study will engage respondents online through in-world interviews at ease. It is a technique which is essential especially respondents are unavailable to participate in face-to-face interviews.

Email interviews justifications

These are research interviews essentially conducted in rare occasions. Mostly, it is applied in case where the respondent is unavailable at the time of or uncomfortable in having face-to-face interviews. It is a rare instance that considers time constrains in which respondents will participate via email. The researcher will forward mail with semi-structured questions expected to be replied within a period of one week. All the respondents will be assumed that they are computer literate and had access of internet. This is because they on the expectations of the study that if they are using m-baking therefore are computer literate. However, email-based might raise confidentiality, deception and consent, otherwise, resolved to provide confidentially and identity protection (Bryman, 2012).

Sample and sampling size

In order to achieve the desired objectives, sampling strategy is important to be used especially, where qualitative approach is intended to be used. According to this study, the target population will be Australian top three bank’s customers. It will consider thirty respondents between the age of eighteen and seventy five. The study target pre-assumes that the population is the actual customers of the bank with access to the internet, computer literate, bank account and the uses m-banking services (Davies, 2007).

Random sampling method will be employed for the sample selection from the identified banks. This will be a necessary method for the study in order to avoid selection bias. It will create an opportunity in conducting the survey at neutral state for the sample population. The pilot-testing of the model will be conducted prior the study in order to ascertain the strategy performance, reliability and validity.

Methods of data analysis

Data analysis is a logic way of understanding and interpretation of the collected data. It includes two processes; analytical process where the data will be collected, categorized, compared, and integrated. Whilst interpretation process of analyzed employed circularly while making out sense out of the analyzed data (Hassan, et al. 2013). Since the study seeks determine the significances of the factors affecting adoption of m-banking in Australia, it triggers the need to employ statistical method of analysis. Therefore, it will incorporate two methods of data collection;

Weighted mean for the questionnaires

The results of the closed-ended questions will be assessed using TAM constructs significance. They will be scale from 1 to 5; strongly disagreed scores 1, disagree scores 2, neutral scores 3, agree scores 4 and strongly agree will equate 5 scores. To analyze the results obtained from the informants, the weighted mean score will be calculated accordingly. Similarly, open-ended questions will be analyzed at a personal interpretation, but at a neutral state rating the significance of the defined factors of adoption in ranks.

Least square method regression analysis

A least square multiple linear regression will be used to assess the correlation between the predators among the five independent variables and the m-banking adoption intention. This way, their variance will be used to in behavioral intentions to adopt m-banking will be therefore used to analyze the factor’s significance will be ranked accordingly (Smith, 2011).

Validity, Reliability and Ethics

Qualitative research is considered to execute reliability and the credibility of the study. Ethnology choice of realism will enable the stability of the study in conjunction with epistemology positivism approach. Positivism will be essential to deliver a neutral interpretation or measures without bias of the open-ended questionnaires. Use of repeatedly random sampling method and in-depth interview reviews also contributes the reliability of the research study.

While the reliability concerns the consistency of the scores results validity concerns, how the results will be interpreted. Validity will concern how well the study results place support of the theory or the constructs of the research paper. Accordingly, the collection data and analysis techniques will be pilot-tested prior the actual research. Besides, the constructs validity will be assessed by means of convergent and discriminant validity as well. That is, comparison of the similarity of results from different instrument of data analysis methods used.

Considering ethics, the paper will ensure the study will not cause any harm to the respondents by ensuring; their consensus to be part of the study contributors via interviews prior commencement of the study. Secondly, explaining the benefits of the study and guaranteed confidentiality in the procedures. This way, the research will provide their protection rights to respondents accordingly (Walliman, 2010).


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