AMITY BUSINESS SCHOOL

A RESEARCH TO STUDY THE CONSUMER PERCEPTION TOWARDS M-COMMERCE

Prepared under able guidance of Ms. Namita Kapoor (Professor at Amity Business School)

A Research to Study the Consumer Perception Towards M-Commerce

Project Report On Marketing Research

By: Kriti Bhagat, D-08, A0101911265 Divya Pundeer, D-21, A0101911011 Sahil Dhawan, D-26, A0101911 Saransh Aggarwal, D-42, A0101911143 Sandeep Singh, D-48, A0101911

Section D, MBA (G) Amity Business School Batch of 2013

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A Research to Study the Consumer Perception Towards M-Commerce

Table of Contents

1.

Chapter 1: Introduction ........................................................................................................... 4 1.1. 1.2. Background Assessment .................................................................................................. 4 Statement of Problem ....................................................................................................... 6 Objectives ................................................................................................................. 6 Hypotheses ................................................................................................................ 6

1.2.1. 1.2.2. 2. 3.

Chapter 2: Literature Review .................................................................................................. 7 Chapter 3: Research Design .................................................................................................. 12 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. Type of Research Design ............................................................................................... 12 Data Collection ............................................................................................................... 12 Scaling Techniques ........................................................................................................ 12 Questionnaire Development ........................................................................................... 13 Sampling Technique ....................................................................................................... 13 Field Work...................................................................................................................... 14

4.

Chapter 4: Data Analysis and Interpretation ......................................................................... 15 4.1. 4.2. 4.3. Summary Statistics of all the attitude measurement variables ....................................... 15 Frequency table for number of mobile phones possessed by the respondents ............... 17 T-Test to compare the means to determine: Do female respondents agree more that the

overall shopping experience becomes more convenient using m-commerce than the male respondents ............................................................................................................................... 18 4.4. T-Test to compare the means to determine: Do female respondents agree more that the

there are security problems in mobile shopping than the male respondents .......................... 19 4.5. One way ANOVA (Between attitude measurement variables and level of education) . 20 Page 2

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4.6. 4.7. One way ANOVA (Between Attitude measurement variables and Monthly Income) .. 22 T-test to compare the means to determine: Do respondents having knowledge about m-

commerce have general intention to shop via mobile phone higher than the respondents who dont know about m-commerce ................................................................................................ 24 4.8. Cross-tabs & Chi-square test to determine: whether age and security problem are

independent of each other using gender as layer variable ........................................................ 26 4.9. Cross-tabs & Chi-square test to determine: whether employment and customization are

independent of each other using knowledge about -commerce as layer variable ..................... 28 4.10. Cross-tabs & Chi-square test to determine: whether income and prices associated

with m-commerce are independent of each other using gender as layer variable .................... 30 4.11. Correlation between prices associated with m-commerce and general intention to

shop via m-commerce ............................................................................................................... 32 4.12. Regression between prices associated with m-commerce and general intention to

shop via m-commerce ............................................................................................................... 33 5. 6. 7. 8. 9. 10. Results ................................................................................................................................... 37 Limitations ............................................................................................................................ 38 Conclusions ........................................................................................................................... 39 Recommendations ................................................................................................................. 40 References ............................................................................................................................. 41 Appendix ............................................................................................................................ 42 Questionnaire .............................................................................................................. 42

10.1.

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1. Chapter 1: Introduction

1.1. Background Assessment

Telecommunication sector is now universally recognized as one of the prime movers of the modern economy. The availability of adequate infrastructure facilities is critical for acceleration of economic development of any country. Expansion of Mobile phones in India is phenomenal. In addition to this, 7-8 million consumers are added each month. On the other hand, the penetration of internet in India is abysmally low at 2.5%. The penetration of mobile phones is 4 5 times that of personal computers. As the fastest growing telecommunications industry the world, it is projected that India would have 1.159 billion mobile subscribers by 2013. Projections by several leading global consultancies indicate that the total number of subscribers in India would exceed total subscriber count in the China by 2013. The industry is expected to reach a size of Indian Rupee. 344,921 crore (US$ 76.23 billion) by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period. According to analysts, the sector would create direct employment for 2.8 million people and for 7 million indirectly. In 2008-09 the overall telecom equipments revenue in India stood at Indian Rupee .136, 833 crore (US$ 30.24 billion) during the fiscal, as against Indian Rupee .115, 382 crore (US$ 25.5 billion) a year before. This has resulted in the increasing use of handheld devices to deliver advertisements for products and services. Mobile commerce is in the nascent stages in India. It has, till now, been confined to banking transactions, mobile ticketing, and bill payments but its applications are set to increase moving forward and we will see more such applications as mobile wallet and money transfer. With the rapid growth of the telecom sector in India and India becoming one of the largest potential markets for many global players to enter in to, the plethora of product offerings to the end consumers have seen a drastic change in the past few years. With this intense competition in the market place and the consumer having option of choices, service providers are adding a range of services to their basket to not only attract new customers but also retain the existing ones. Amity Business School Page 4

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With more and more features being packed into the handsets and the additional services provided by the mobile service providers like GPRS, MMS etc. there has been changes in the expectations that consumers had from their mobile and the way in which the consumers has started to use their mobiles. Is M-Commerce really important? In India mobiles were currently used primarily for passing and sharing information using SMS and voice. However, the inclination to use value added services was evident from the increase in share of revenues generated from value added services as a proportion of total revenues of mobile industry increased. This rise had resulted from introduction of voting based participative TV Programs, voting on some socio-economic-political issues in newspapers; SMS based quiz/contests on mobile, MMS etc. Student clientele of mobile companies were major consumers of wallpaper, ring tone, mobile games, music and video clip download services available on eportals as well as mobile portals. Other services like micro payment facility are also being offered though only by one or two operators. GPRS based services was being offered by mobile operators on a limited scale. However, wide ranges of new services were on the anvil as more and more operators upgrade to 3G networks. Future prospects of M-Commerce M-commerce was an emerging area of opportunity, particularly in the high-value markets. PVR media Entertainment Company with the launch of PVR mobile ticketing were already providing service to a customer base of over 90,000, (with 75 per cent repeat usage). Both airline and train ticketing can be increasingly made available to mobile consumers. Money transfer is slated to be an important offering in the immediate future. Services would enable mobile users to pay any post-paid mobile bill using the mobile phone, prepaid top-ups and landline bill payments can also be one of the most upcoming strategies in the field of mcommerce. Person-to-person money transfer (from one bank account to another) via the mobile phone will also be an important offering in the mobile space.

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In the months to come, innovative products including exclusive handset bundling opportunities, content and distribution innovations and offerings specifically aimed at both rural and high-value markets would be increasingly available in the market.

1.2. Statement of Problem

1.2.1. Objectives To examine the Movers and Barriers of M-Commerce in India To study the effects of customer demographics on their perception about m-commerce

1.2.2. Hypotheses H1: Factors that influence use of m-commerce include convenience, location, security threats; prices associated with m-commerce, shopping experience, customization etc. H2: There is insignificant effect of consumer demographics (such as age, gender, employment, and income) on peoples perception towards m-commerce.

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2. Chapter 2: Literature Review

Mobile commerce is a subject of debate for many researchers in todays era. In the recent past many researchers have been published on this topic. Many areas of mobile commerce has been dealt in those researches ranging from pros and cons of mobile commerce to what advantages will it play for the public, companies providing it, government and what effect will it have on peoples shopping behavior. Like Barnett, (2000) discussed that there are many constraints and special characteristics related to mobile services, and because of this mobile commerce is operating in an environment that is much different from transactions conducted over the internet. There have been many various innovations focused towards attempting to make the wireless devices used for mobile commerce user friendly and with an interface design that is effective in transference of meaning in communication. The work of Peter Tarasewich (2002) relates the fact that a well-designed and usable interface to any application is critical. Websites that are designed properly help insure that sets can find information that they are looking for, perform transactions, spend time at the site and return gain. Consumer values and attitudes have been found to influence the adoption of technology and technology related products. The next section develops the association between consumer characteristics and attitudes towards m-marketing services, and addresses innovativeness, mobile self-efficacy. Innovativeness has been considered an influential attribute for explaining uptake and use of new technologies. In their study of the motivations of internet shoppers, Donthu and Garcia, (1999) found that they were significantly more innovative than non-internet shoppers. Confidence with technology or perceived self-efficacy is defined as beliefs in ones capabilities to mobilize the motivation, cognitive resources, and courses of action needed to meet given situational demands.

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Compeau and Higgins,(1975) who define computer self-efficacy as a judgment of ones capability to use a computer , and judgments of the ability to apply those skills to broader tasks , found that it plays a significant role in shaping individuals computer behaviors in terms of use. But Mort and Drennan, (2004) suggest that in the mobile environment, shopping lovers those who receive an emotional gratification from shopping and consider shopping an enjoyable leisure activity will be more likely to respond positively to the variety and interest presented by the wide range of m-services. Their results partially support this hypothesis, a positive relationship was found between this group of consumers (those who have strong positive emotional orientations towards shopping) and intentions to use m-services. This is despite the fact that in the case of internet shopping, a positive attitude towards shopping was not associated with a positive attitude towards online shopping. The role of people in the flow of communication has long been acknowledged. Moreover, during this communication flow; many are susceptible to interpersonal influence. Those highly susceptible to interpersonal influence are likely to purchase products, services and brands they observe used by others as well as being influenced by personal recommendations and adoption of products by significant others. According to Teo, et. al (1999) Consumer demographics, particularly gender, have also been identified as having an important relationship to the intention to use and actual use of new technology. Past research on internet use has found that, not only are females slower to adopt, but those who do use the internet do so less frequently and for a smaller number of tasks than males. Some researchers also have contradicting views like Jha (2008) conducted the research on functional aspect of mobile handsets. India has emerged as the fastest growing mobile handset market in the world. The Indian mobile market is primarily dominated by the youngsters who account for 32 percent of the total market. Understanding the youth's preference is a prerequisite for handset manufacturers to sustain or create a competitive advantage in the emerging market. This paper throws light on the factors that motivate the youth to own mobile handsets. The paper mainly explores the functional aspects of owning a handset and focuses on understanding the relative importance of the reasons for the purchase and the attributes that college-going students Amity Business School Page 8

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generally look for while buying a handset. Data were collected from a sample of 208 handset owners aged between 20 and 29. The findings indicate that there is a significant difference in the importance of the reasons (ease of use and physical appearance) for purchase and that of the attributes (SMS, calendar, and calculator) of handset between two groups of youngsters (high group and low group). Morrissey (2007) discussed how several brands are developing mobile applications, rather than use the cell phone as just a venue for media buys. Some of the brands are using their large distribution and marketing channels to promote the utilities. The move by brands to create applications comes as surveys show that consumers are concerned that cell phones will turn into another source of advertising exposure. The article examines several efforts being launched from different brands. Shi & Yang (2009) investigated consumers' attitudes toward and uses of mobile phones via selfreport questionnaires in 3,021 Chinese participants ranging from 15 to 65 years old. Confirmatory factor analysis suggests that consumers' attitudes toward mobile phones are composed of three dimensions: sense of security, sense of self-character extension, and sense of dependence. Correlation analyses found all mobile phone attitudes correlated to mobile phone uses. Lin, Lai & Yeh (2007) presents a new fuzzy logic approach to determining the best combination of mobile phone form elements for matching a given product image. A consumer-oriented experimental study is conducted to examine the relationship between the key form elements and the product images of mobile phones. The most influential form elements of mobile phones are identified using the grey relational analysis. A new experimental process is conducted to objectively generate a set of fuzzy rules with the most influential form elements, based on the subjects assessments of the simple complex image on 33 representative mobile phone samples. The fuzzy rules generated outperform neural network models in predicting the product images of a mobile phone with a given set of form elements. The approach provides useful insights in facilitating and simulating the form design process of mobile phones. Relevance to industry: Whether the consumers choose a product depends largely on their perception of the product images.

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Also Kimiloglu & Nasir (2010) discovered consumer segments with different behavioral profiles in the mobile phone market. For this purpose, it seeks to analyze the decision-making criteria of 302 mobile phone consumers in Turkey and cluster the sample meaningfully into four behaviorally different groups. Design/methodology/approach Factor analysis is conducted on 32 different attributes to which consumers attach importance in purchasing a mobile phone. Nine major decision-making criteria emerge from this analysis. These criteria are used for segmenting this consumer market into four behavior clusters, namely as pragmatic, abstemious, valueconscious, and charismatic. Findings: Pragmatic consumers are found to give high importance to the functional, physical and convenience-based attributes of the product. The abstemious group also gives importance to functionality along with design. While value-conscious consumers focus strongly on price, the charismatic segment represents the want-it-all group valuing many attributes such as technological superiority, practicality, durability, functionality, and design. The study also includes findings and discussions about the differences these clusters display in terms of their involvement and loyalty styles. Research limitations/implications: High-tech products such as mobile phones are becoming indispensable in people's lives; thus leading to a highinvolvement decision-making process. It is crucial for marketers of these products to understand behaviorally different consumer segments that show significant variations in their decisionmaking criteria for such products, and approach them accordingly. Originality/value -- The study applies cluster analysis as a behavioral segmentation tool in a high-technology product market and successfully identifies four distinct consumer groups with alternative decision-making styles. But Ziefle (2002) focuses on usability, ease of use and learn ability of three different mobile phones (Nokia 3210, Siemens C35i, and Motorola P7389). The first independent variable refers to the complexity of the menu (depth/breadth of the menu tree) and navigation keys (number/functionality). The Nokia phone had the lowest and the Motorola the highest complexity, with the Siemens phone ranging between them. The second independent variable was user expertise: 30 novices and 30 experts solved six telephone tasks. In order to assess effects of learn ability, tasks were presented twice. Differences between the mobile phones regarding effectiveness, efficiency and learn ability was found: The best performance was shown by Nokia users. The remaining two phones did not differ significantly, although the most complex phone was superior to the phone of medium complexity which had the lowest

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performance. Moreover, an effect of expertise was confirmed, though suboptimal interfaces were identified as lessening the advantage of expertise.

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3. Chapter 3: Research Design

3.1. Type of Research Design

Research design is the specification of methods and procedures for acquiring the information needed. It is the over-all framework of the project that stipulates what information is to be collected from which source and by what procedures. The function of the research design is to ensure that the evidence obtained enabled us to answer the initial question as unambiguously as possible. The research design of the project is descriptive as it describes data and characteristics associated with the population using mobile phones. Descriptive research is used in the study to answer the questions such as who, what, where, why and how. The research does not describe what caused a situation; the data description is only factual and accurate. It is mainly done to get a clear picture of the market environment.

3.2. Data Collection

Primary and secondary data is used for our research project. Primary data is the data being collected for the first time. The primary data was collected through responses of consumer conducted through questionnaires. The questionnaire was structured and had closed ended questions. Secondary data are that type of data that are already available and need not to be collected from outside. This was collected through newspapers, magazines and articles.

3.3. Scaling Techniques

Scaling describes the procedure for assigning numbers to various degrees of opinion, attitude and other concepts. This can be done in two ways:

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1. Making a judgment about some characteristic of an individual an then placing him

directly on a scale that has been defined in terms of that characteristic. 2. Constructing questionnaire in such a way that the score of individuals responses assigns

him a place on the scale. Likert scaling technique has been used in this study. The scale consists of a number of statements which express either a favorable or unfavorable attitude towards the given object to which the respondent is asked to react. In this method response category often consists of numerical values (e.g. 1, 2, 3, 4, 5 these five points constitute a scale). At one extreme of the scale there is strong dis-agreement with the given statement and at the other strong agreement and between them lie intermediate points.

3.4. Questionnaire Development

A questionnaire is a formalized set of questions for obtaining information from respondents. The objective is to translate the researchers information need into a set of specific questions that respondents are willing and able to answer. Questionnaire is very important as it is the main means for collecting primary data. The questionnaire designed for the project is a structured one with multiple choice questions. Closed ended questions and likert scale is used. The information obtained from the questionnaire is basic information and classification information. Basic information relates directly to the research problem. Classification information consists of socioeconomic and demographic characteristics. It is used to classify the respondents in order to analyze results across different groups.

3.5. Sampling Technique

The data is collected by surveying 250 respondents based on convenience sampling. The inputs from these respondents formed the primary data for the study. Convenience sampling is a statistical method of drawing representative data by selecting people because of the ease of their Amity Business School Page 13

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availability or easy access. The advantage of this type of sampling is the availability and the quickness with which data can be gathered.

3.6. Field Work

The data has been collected through survey in residential areas, amity business school and via email.

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4. Chapter 4: Data Analysis and Interpretation

We collected the data from the respondents (250) through a structured questionnaire. Then the data was entered in SPSS 17 and analyzed.

4.1. Summary Statistics of all the attitude measurement variables

Table 4.1: Descriptive Statistics N M-Commerce help to shop at any time The overall shopping experience becomes highly convenient using M-Commerce Shopping can be done from any wished location using MCommerce M-Commerce provides for more customized shopping experience Using M-Commerce, I can participate in online auctions I find receiving the advertisements via mobile phone positive I find SMS and MMS mobile advertising messages useful If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping I find mobile entertainment services (video, game etc.) positive 250 1 5 3.23 1.353 250 1 5 2.96 1.421 250 1 5 2.98 1.413 250 1 5 2.95 1.461 250 1 5 2.67 1.381 250 1 5 2.84 1.387 250 1 5 3.04 1.389 250 1 5 2.90 1.410 250 Minimum 1 Maximum 5 Mean 3.13 Std. Deviation 1.421

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I find mobile coupons for being offered discounts positive 250 1 5 3.06 1.313

There are security problems in mobile shopping

250

3.08

1.304

I find mobile shopping more entertaining than traditional shopping

250

2.53

1.312

My general intention to shop via mobile phone is very high

250

2.56

1.379

Valid N (listwise)

250

Most of the people tend to like the mobile entertainment services but comparatively less people believe that mobile shopping is more entertaining than traditional shopping. The Standard Deviation of positive attitude towards mobile advertisements is more than the other attributes. This means that peoples responses have varied more for this factor as compared to the others.

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A Research to Study the Consumer Perception Towards M-Commerce 4.2. Frequency table for number of mobile phones possessed by the respondents
Table4.2: How many mobile phones do you have?

Frequency Valid None One Two Three Total Missing Total System 3 142 83 22 250 1 251

Percent 1.2 56.6 33.1 8.8 99.6 .4 100.0

Valid Percent 1.2 56.8 33.2 8.8 100.0

Cumulative Percent 1.2 58.0 91.2 100.0

Out of 250 respondents administered in the study, about 57% of the respondents have one mobile phone. Only 1.2% of the respondents did not have a mobile phone.

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A Research to Study the Consumer Perception Towards M-Commerce 4.3. T-Test to compare the means to determine: Do female respondents agree more that the overall shopping experience becomes more convenient using m-commerce than the male respondents
Table 4.3.1: Group Statistics Gender The overall shopping experience becomes highly convenient using MCommerce Male Female N 157 93 Mean 2.88 2.92 Std. Deviation 1.384 1.461 Std. Error Mean .110 .152

Table 4.3.2: Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means

Sig. (2F The overall shopping experience becomes highly Equal variances .660 Sig. .417 t .247 df 248 tailed) .805

Mean Difference -.046

Std. Error Difference .185

convenient using M-Commerce assumed Equal variances not assumed - 184.913 .244 .808 -.046 .188

H0: Female respondents and male respondents equally agree on the given variable. H1: Female respondents and male respondent do not agree equally on the given variable. Since the significance level in Levenes test is more than .05, we will assume equal variance. Pvalue is .247 which is more than .05, thus we have no evidence to reject the null hypothesis in favor of alternate hypothesis. Amity Business School Page 18

A Research to Study the Consumer Perception Towards M-Commerce 4.4. T-Test to compare the means to determine: Do female respondents agree more that the there are security problems in mobile shopping than the male respondents
Table 4.4.1: Group Statistics Gender There are security problems in mobile shopping Male Female N 157 93 Mean 3.15 2.95 Std. Deviation 1.307 1.297 Std. Error Mean .104 .134

Table 4.4.2: Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Difference Sig. (2F There are security problems in mobile shopping Equal variances assumed Equal variances not assumed 1.214 194.442 .226 .207 .170 -.129 .542 .268 Sig. t df 248 Mean Std. Error Upper .542

tailed) Difference Difference Lower .227 .207 .171 -.129

.605 1.212

H0: Female respondents and male respondents equally agree on the given variable. H1: Female respondents and male respondent do not agree equally on the given variable. Since the significance level in Levenes test is more than .05, we will assume equal variance. Pvalue is .227 which is more than .05, thus we have no evidence to reject the null hypothesis in favor of alternate hypothesis.

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A Research to Study the Consumer Perception Towards M-Commerce 4.5. One way ANOVA (Between attitude measurement variables and level of education)
Table 4.5: ANOVA Sum of Squares M-Commerce help to shop Between Groups at any time Within Groups Total The overall shopping Between Groups 2.484 500.160 502.644 1.981 493.315 495.296 2.302 478.214 480.516 5.506 473.410 478.916 6.401 468.703 475.104 1.020 530.404 531.424 5.170 491.730 496.900 3.097 499.579 502.676 df 3 246 249 3 246 249 3 246 249 3 246 249 3 246 249 3 246 249 3 246 249 3 246 249 1.032 2.031 .508 .677 1.723 1.999 .862 .461 .340 2.156 .158 .925 2.134 1.905 1.120 .342 1.835 1.924 .954 .415 .767 1.944 .395 .757 .660 2.005 .329 .804 Mean Square .828 2.033 F .407 Sig. .748

experience becomes highly Within Groups convenient using MTotal Commerce Shopping can be done from Between Groups any wished location using M-Commerce M-Commerce provides for Within Groups Total Between Groups

more customized shopping Within Groups experience Total Using M-Commerce, I can participate in online auctions I find receiving the advertisements via mobile phone positive I find SMS and MMS mobile advertising messages useful Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total

If the prices of products and Between Groups services in mobile shopping Within Groups are lower than in traditional Total shopping, I prefer mobile shopping I find mobile entertainment Between Groups

2.380

.793

.430

.731

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services (video, game etc.) Within Groups positive I find mobile coupons for being offered discounts positive There are security problems in mobile shopping Total Between Groups Within Groups Total Between Groups Within Groups Total 453.624 456.004 2.709 426.507 429.216 1.405 422.151 423.556 4.695 423.609 428.304 2.590 471.010 473.600 246 249 3 246 249 3 246 249 3 246 249 3 246 249 .863 1.915 .451 .717 1.565 1.722 .909 .437 .468 1.716 .273 .845 .903 1.734 .521 .668 1.844

I find mobile shopping more Between Groups entertaining than traditional Within Groups shopping Total My general intention to shop via mobile phone is very high Between Groups Within Groups Total

H0: U1=U2=U3=..=Un H1: At least two means are different Since all the values in the significance column are more than .05, we fail to reject the null hypothesis.

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A Research to Study the Consumer Perception Towards M-Commerce 4.6. One way ANOVA (Between Attitude measurement variables and Monthly Income)

Table 4.6: ANOVA Sum of Squares M-Commerce help to shop Between Groups at any time Within Groups Total The overall shopping Between Groups 4.787 497.857 502.644 .531 494.765 495.296 1.244 479.272 480.516 6.240 472.676 478.916 1.370 473.734 475.104 3.836 527.588 531.424 .816 496.084 496.900 1.403 501.273 502.676 df 3 246 249 3 246 249 3 246 249 3 246 249 3 246 249 3 246 249 3 246 249 3 246 249 .468 2.038 .229 .876 .272 2.017 .135 .939 1.279 2.145 .596 .618 .457 1.926 .237 .870 2.080 1.921 1.083 .357 .415 1.948 .213 .887 .177 2.011 .088 .967 Mean Square 1.596 2.024 F .789 Sig. .501

experience becomes highly Within Groups convenient using MTotal Commerce Shopping can be done from Between Groups any wished location using M-Commerce M-Commerce provides for Within Groups Total Between Groups

more customized shopping Within Groups experience Total Using M-Commerce, I can participate in online auctions I find receiving the advertisements via mobile phone positive I find SMS and MMS mobile advertising messages useful Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total

If the prices of products and Between Groups services in mobile shopping Within Groups are lower than in traditional Total shopping, I prefer mobile shopping

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I find mobile entertainment Between Groups services (video, game etc.) Within Groups positive Total I find mobile coupons for being offered discounts positive There are security problems in mobile shopping Between Groups Within Groups Total Between Groups Within Groups Total 2.443 453.561 456.004 4.159 425.057 429.216 8.506 415.050 423.556 4.356 423.948 428.304 4.071 469.529 473.600 3 246 249 3 246 249 3 246 249 3 246 249 3 246 249 1.357 1.909 .711 .546 1.452 1.723 .843 .472 2.835 1.687 1.681 .172 1.386 1.728 .802 .494 .814 1.844 .442 .723

I find mobile shopping more Between Groups entertaining than traditional Within Groups shopping Total My general intention to shop via mobile phone is very high Between Groups Within Groups Total

H0: U1=U2=U3=..=Un H1: At least two means are different Since all the values in the significance column are more than .05, we fail to reject the null hypothesis.

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A Research to Study the Consumer Perception Towards M-Commerce 4.7. T-test to compare the means to determine: Do respondents having knowledge about m-commerce have general intention to shop via mobile phone higher than the respondents who dont know about m-commerce
Table 4.7.1: Group Statistics Do you know about MCommer ce? My general intention to shop via mobile phone is very high No Yes N 69 181 Mean 2.46 2.60 Std. Deviation 1.461 1.349 Std. Error Mean .176 .100

Table 4.7.2: Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Difference Sig. (2F My general intention to shop via mobile phone is very high Equal variances assumed Equal variances not assumed -.656 114.798 .513 -.133 .202 -.534 .268 1.965 Sig. T df 248 Mean Std. Error Upper .252

tailed) Difference Difference Lower .497 -.133 .195 -.518

.162 -.680

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H0: Respondents who know about m-commerce and respondents who dont know about mcommerce equally agree on the given variable. H1: Respondents who know about m-commerce and respondents who dont know about mcommerce do not agree equally on the given variable. Since the significance level in Levenes test is more than .05, we will assume equal variance. Pvalue is .680 which is more than .05, thus we have no evidence to reject the null hypothesis in favor of alternate hypothesis.

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A Research to Study the Consumer Perception Towards M-Commerce 4.8. Cross-tabs & Chi-square test to determine: whether age and security problem are independent of each other using gender as layer variable
Table 4.8.1: Case Processing Summary Cases Valid N Age * There are security problems in mobile shopping * Gender 250 Percent 99.6% N 1 Missing Percent .4% N 251 Total Percent 100.0%

Table 4.8.2: Age * There are security problems in mobile shopping * Gender Crosstabulation Count There are security problems in mobile shopping Gender Male Age Less than 20 20-30 31-40 41-50 Total Female Age Less than 20 20-30 31-40 41-50 Total Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree Total 3 12 0 5 20 5 7 1 3 16 5 17 6 7 35 3 12 5 0 20 6 17 6 2 31 3 12 5 2 22 7 26 8 2 43 3 12 5 3 23 4 17 6 1 28 4 7 1 0 12 25 89 26 17 157 18 50 17 8 93

Table 4.8.3: Chi-Square Tests Gender Male Pearson Chi-Square Value 14.831
a

Df 12

Asymp. Sig. (2-sided) .251

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Likelihood Ratio Linear-by-Linear Association N of Valid Cases Female Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 17.536 2.401 157 11.926
b

12 1

.131 .121

12 12 1

.452 .277 .759

14.377 .094 93

a. 10 cells (50.0%) have expected count less than 5. The minimum expected count is 2.17. b. 15 cells (75.0%) have expected count less than 5. The minimum expected count is 1.03.

H0: Age and security problems in mobile shopping are independent. H1: Age and security problems in mobile shopping are not independent. For males: The sig. value of Chi-square is .251, thus we reject the null hypothesis in favor of alternate hypothesis. This means that, age and security problems in mobile shopping are not independent. For females: The sig. value of Chi-square is .452, thus we reject the null hypothesis in favor of alternate hypothesis. This means that, age and security problems in mobile shopping are not independent.

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A Research to Study the Consumer Perception Towards M-Commerce 4.9. Cross-tabs & Chi-square test to determine: whether employment and customization are independent of each other using knowledge about -commerce as layer variable
Table 4.9.1: Case Processing Summary Cases Valid N Employment * M-Commerce provides for more customized shopping experience * Do you know about M-Commerce? 250 Percent 99.6% N 1 Missing Percent .4% N 251 Total Percent 100.0%

Table 4.9.2: Employment * M-Commerce provides for more customized shopping experience * Do you know about M-Commerce? Crosstabulation Count M-Commerce provides for more customized shopping experience Neither Strongly Do you know about M-Commerce? No Employment Service (Public Sector) Service (Private Sector) Self Employed Unemployed Student Total Yes Employment Service (Public Sector) Service (Private Sector) 10 7 11 8 5 41 2 4 11 18 9 0 2 10 14 5 0 0 10 14 7 2 2 4 9 8 4 1 7 14 4 8 9 42 69 33 1 0 0 0 0 1 Disagree 0 Disagree 2 Agree nor Disagree 4 Agree 1 Strongly Agree 2 Total 9

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Self Employed Unemployed Student Total 2 6 13 40 4 8 13 37 6 5 7 36 6 10 13 45 8 4 2 23 26 33 48 181

Table 4.9.3: Chi-Square Tests Do you know about M-Commerce? No Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases Yes Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases Value 20.579
a

Df 16 16 1

Asymp. Sig. (2-sided) .195 .057 .161

25.784 1.968 69 18.643

b

16 16 1

.288 .297 .461

18.472 .543 181

a. 20 cells (80.0%) have expected count less than 5. The minimum expected count is .13. b. 3 cells (12.0%) have expected count less than 5. The minimum expected count is 3.30.

H0: Employment and customization in mobile shopping are independent. H1: Employment and customization in mobile shopping are not independent. Knowledge about m-commerce: The sig. value of Chi-square is .195, thus we reject the null hypothesis in favor of alternate hypothesis. This means that, employment and customization in mobile shopping are not independent. No knowledge about m-commerce: The sig. value of Chi-square is .288, thus we reject the null hypothesis in favor of alternate hypothesis. This means that, employment and customization in mobile shopping are not independent.

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A Research to Study the Consumer Perception Towards M-Commerce 4.10. Cross-tabs & Chi-square test to determine: whether income and prices associated with m-commerce are independent of each other using gender as layer variable
Table 4.10.1: Case Processing Summary Cases Valid N Monthly Income * If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping * Gender 250 Percent 99.6% N 1 Missing Percent .4% N 251 Total Percent 100.0%

Table 4.10.2: Monthly Income * If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping * Gender Crosstabulation Count If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping Neither Strongly Gender Male Monthly Income Less than 10000 10000-30000 30001-50000 More than 50000 Total Female Monthly Income Less than 10000 10000-30000 30001-50000 3 5 1 6 3 8 2 4 0 2 9 25 33 5 35 8 27 7 27 5 35 8 157 33 5 4 8 5 4 11 5 7 4 6 4 9 5 5 9 26 24 41 Disagree 16 Disagree 15 Agree nor Disagree 11 Agree 8 Strongly Agree 16 Total 66

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More than 50000 Total 16 22 23 15 17 93 3 7 5 4 7 26

Table 4.10.3: Chi-Square Tests Gender Male Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases Female Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases Value 7.155
a

df 12 12 1

Asymp. Sig. (2-sided) .847 .852 .661

7.092 .192 157 9.080

b

12 12 1

.696 .549 .932

10.768 .007 93

a. 4 cells (20.0%) have expected count less than 5. The minimum expected count is 4.13. b. 11 cells (55.0%) have expected count less than 5. The minimum expected count is 1.45.

H0: Income and price in mobile shopping are independent. H1: Income and price in mobile shopping are not independent. For Males: The sig. value of Chi-square is .847, thus we reject the null hypothesis in favor of alternate hypothesis. This means that, income and in mobile shopping is independent. For Females: The sig. value of Chi-square is .696, thus we reject the null hypothesis in favor of alternate hypothesis. This means that, income and in mobile shopping is independent.

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A Research to Study the Consumer Perception Towards M-Commerce 4.11. Correlation between prices associated with m-commerce and general intention to shop via m-commerce
Table 4.11: Correlations If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping My general intention to shop via mobile phone is very high N Pearson Correlation Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). 250 .480
**

My general intention to shop via mobile phone is very high

Pearson Correlation Sig. (2-tailed)

.480

**

.000 250 1

.000 250 250

Karl Pearson coefficient of correlation indicates that there is a moderate positive relation (0.48) between prices associated with m-commerce and general intention to shop via m-commerce.

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A Research to Study the Consumer Perception Towards M-Commerce 4.12. Regression between prices associated with m-commerce and general intention to shop via m-commerce
Table 4.12.1: Model Summary Model 1 R .480
a

R Square .230

Adjusted R Square .227

Std. Error of the Estimate 1.213

a. Predictors: (Constant), If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping

Table 4.12.2: ANOVA Model 1 Regression Residual Total Sum of Squares 108.966 364.634 473.600 Df 1 248 249

Mean Square 108.966 1.470

F 74.112

Sig. .000
a

a. Predictors: (Constant), If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping b. Dependent Variable: My general intention to shop via mobile phone is very high

Table 4.12.3: Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping a. Dependent Variable: My general intention to shop via mobile phone is very high B 1.180 .466 Std. Error .178 .054 .480 Coefficients Beta t 6.640 8.609 Sig. .000 .000

General equation for least squares method (Regression) is: Y= b0+b1x [y: dependent variable; x: independent variable] Amity Business School Page 33

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H0: 1=0 H1: 10 Since p-value is .000, we reject null hypothesis in favor of alternate hypothesis. This means that there is linear relationship between prices associated with m-commerce and general intention to shop via m-commerce. R2 is .230. This means that 23% percent of change in general intention to shop via m-commerce is attributed to prices associated with m-commerce. Rest 77% is unexplained. B0= 1.18 B1=0.466 this means that 1% change in prices associated with m-commerce leads to 0.466% change in the general intention to shop via m-commerce.

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A Research to Study the Consumer Perception Towards M-Commerce 4.13. Regression between convenience associated with m-commerce and general intention to shop via m-commerce

Model Summary Model 1 R .501

a

R Square .251

Adjusted R Square .248

Std. Error of the Estimate 1.196

a. Predictors: (Constant), The overall shopping experience becomes highly convenient using M-Commerce

ANOVA Model 1 Regression Residual Total Sum of Squares 118.788 354.812 473.600 df

Mean Square 1 248 249 118.788 1.431

F 83.029

Sig. .000
a

a. Predictors: (Constant), The overall shopping experience becomes highly convenient using M-Commerce b. Dependent Variable: My general intention to shop via mobile phone is very high

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) The overall shopping experience becomes highly convenient using MCommerce a. Dependent Variable: My general intention to shop via mobile phone is very high B 1.142 .490 Std. Error .173 .054 .501 Coefficients Beta t 6.598 9.112 Sig. .000 .000

General equation for least squares method (Regression) is: Y= b0+b1x [y: dependent variable; x: independent variable] H0: 1=0 H1: 10 Amity Business School Page 35

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Since p-value is .000, we reject null hypothesis in favor of alternate hypothesis. This means that there is linear relationship between convenience associated with m-commerce and general intention to shop via m-commerce. R2 is .248. This means that 24.8% percent of change in general intention to shop via mcommerce is attributed to prices associated with m-commerce. Rest 75.2% is unexplained. B0= 1.142 B1=0.490 this means that 1% change in prices associated with m-commerce leads to 0.49% change in the general intention to shop via m-commerce.

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A Research to Study the Consumer Perception Towards M-Commerce

5. Results

Both female and male respondents equally agree that shopping becomes more convenient using m-commerce Both female and male respondents equally agree that there are security threats associated with m-commerce Level of education does not have a significant effect on attitude measurement variables Income level does not have a significant effect in attitude measurement variables Age of respondents and security threats perceived by them are not independent Employment of respondents and customization of services and products through mcommerce are not independent Income of respondents and prices associated with m-commerce are not independent of each other Prices associated with m-commerce and the general intention to shop via m-commerce are positively correlated (moderate correlation)

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A Research to Study the Consumer Perception Towards M-Commerce 6. Limitations

Due to time constraint we were able to take responses from only 250 respondents. Thus the sample size was inadequate to provide a basis for generalization of results We used convenience sampling to collect information from respondents so there is a chance that the sample is not representative of entire population

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7. Conclusions

Riding on a wave of increasing growth, the mobile telephony in India is expected to rise to a consumer base of over 1 Billion by 2015, making the telecommunication sector one of the most lucrative markets for global mobile phone manufacturers & cell phone providers. With the rapid growth of the telecom sector in India and India becoming one of the largest potential markets for many global players to enter in to, the plethora of product offerings to the end consumers have seen a drastic change in the past few years. With this intense competition in the market place and the consumer having option of choices, service providers are adding a range of services to their basket to not only attract new customers but also retain the existing ones. According to the research customers consider the M-Commerce option to be a good reason but still there are apprehensions in customers to go for mobile commerce services. It is found that people who love shopping would always go for physical shopping rather than doing shopping through mobile. Also there is a relation between age and services used by the people. Therefore companies should target customers on the basis of age and should introduce new and existing offers especially in the youth category as India has the biggest youth population. It also viewed that there is a significant effect of income on mobile commerce services being used; therefore companies should try to reduce the transaction fee of using mobile commerce service from the lower income group so as to stimulate them to buy. Lastly I would like to conclude just by saying that Indian is a rapidly growing country and mobile commerce has the capability to produce huge revenue for a country like India because of various reasons like huge population, techno savvy people etc. therefore companies should try to reduce or remove the barriers of mobile commerce in India and try to emphasize more on the movers or stimulators of mobile commerce

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8. Recommendations

A judicious mix of incentives and SMS advertising should be used for M-Commerce services as different people have different views on these, it would be a challenge to segregate consumers on this basis

Security concerned consumers have negative attitude towards mobile shopping and they can be a tough challenge for M-Commerce companies to pursue. We recommend that security concerns related to mobile transactions should be handled by the companies in the initial communication with the Consumers i.e. Security should be emphasized while launching the service and at every consumer interface to reinforce the fact that mobile transactions are secure

Positioning of M-Commerce services should be based on providing convenience rather than as a substitute of shopping The price for using M-Commerce services should be fixed by the companies in such a way that it does not exploit the customers and they are motivated to use the service again As physical shopping has a different experience M-Commerce should be projected as complimentary to it Transaction fee of M-Commerce transaction should be reduced further so as to stimulate the Indian population, as Indians give due weightage monetary aspect

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A Research to Study the Consumer Perception Towards M-Commerce 9. References

Agarwal, R. and Prasad, J. (1997), The role of innovation characteristics and perceived voluntariness in the acceptance of information technologies, Decision Sciences, Vol. 28, No. 3, pp. 557582

Compeau, D. R. and Higgins, C. A. (1995), Computer selfefficacy: Development of a measure and initial test, MIS Quarterly, Vol. 19, No. 2, p. 192 Consumer Group Wants Look into Mobile Phone Explosions., Telecommunications Reports; 9/1/2004, Vol. 70 Issue 17, p20-20 Donthu, N. and Garcia, A. (1999), The internet shopper, Journal of Advertising Research, Vol. 39, No. 3, pp. 5258 J.Barnett, (2000), retrodiction for quantum optical communication, rev [002312] Jacques Bughin (2006), e-push or e-pull laggards and first-movers in European on-line banking Jha, Subhash (2008), Analysis of Functional Aspects of Mobile Handset Among College-Going Students., ICFAI Journal of Management Research; Vol. 7 Issue 2, p5366

Morrissey, Brian (2007), Marketers Enlist Mobile Phones as Utility Vehicles., Ad week; Vol. 48 Issue 43, p10-10 Mort, G. S. and Drennan, J (2004) marketing m-services: Establishing a user benefit typology related to mobile user characteristics, Database marketing & customer strategy management, Vol. 12, 4, pp. 327- 341

Teo, T.S.H., V.K. and Lal, (1999) intrinsic and extrinsic motivation in internal usage, omega, vol. 27, no.1, pp. 25-37

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10.

Appendix

10.1. Questionnaire

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