Value Creation in M Commerce

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JITTA
JOURNAL OF INFORMATION TECHNOLOGY THEORY AND APPLICATION

VALUE CREATION IN MOBILE COMMERCE: FINDINGS FROM A CONSUMER SURVEY

BILL ANCKAR, Åbo Akademi University
Institute for Advanced Management Systems Research (IAMSR), Lemminkaisenkatu 14 B, 20520 Turku, FINLAND. Tel: +358-50-3891619. Fax: +358-2-2154809. Email: bill.anckar@abo.fi

DAVIDE D’INCAU, Åbo Akademi University
Institute for Advanced Management Systems Research (IAMSR), Lemminkaisenkatu 14 B, 20520 Turku, FINLAND. Tel: +358-2-2154081. Fax: +358-2-2154809. Email: davide.dincau@abo.fi

ABSTRACT
Although little is known about consumers’ attitudes towards wireless marketing channels, many organizations are today making considerable investments to take advantage of the new business possibilities offered by wireless technologies - encouraged by optimistic, yet contradictory forecast on the future volume of m-commerce. This paper highlights the importance of setting out from a consumer perspective when developing m-commerce strategies, proposing an analytical framework that can be used to assess whether, and in what ways, specific mobile services are likely to offer value for wireless Internet users. The paper reports on a national consumer survey conducted to investigate the Finnish consumers’ willingness to use a number of initial mobile services, and to explore whether consumers recognize the value proposition of these applications. Besides offering theoretical and empirical insights relating to the value-creating features of m-commerce from a consumer’s point of view, the study presents results indicating a rather low willingness to use mobile services in general, but an exceptionally high willingness to use some applications. The results do not, however, support the supposition that m-commerce is likely to increase the overall volume of ecommerce significantly by penetrating into untapped markets (non-PC users).

Rajiv Kishore acted as senior editor for this article. Anckar, B., and D. D’Incau, “Value Creation in Mobile Commerce: Findings from a Consumer Survey”, The Journal of Information Technology Theory and Application (JITTA), 4:1, 2002, 43-64.

Bill Anckar and Davide D’Incau

INTRODUCTION

Mobile commerce, or e-commerce over mobile devices, has become a major topic of interest for the IS research community and a key priority for many business organizations as it is becoming increasingly evident that PCbased e-commerce has not lived up to the expectations and achieved true mass adoption The fact remains that many empirically (Prabhaker 2000, Ropers 2001). Nevertheless, supported (optimistic) predictions on the future in spite of the fact that - or perhaps even because - e-commerce has not reached the popularity of m-commerce rely on indirect volume and the explosive growth figures units of measurement rather than direct studies commonly predicted in the mid-1990s, the on consumers’ willingness to embrace meyes of scholars and industry representatives commerce. Many scholars have, for instance, are now on the opportunities offered by asserted that there is a huge market potential wireless media, envisaging that the next - or the real phase of eCONTRIBUTION business growth will be in the area of mobile This paper draws on consumer intention data collected commerce (see e.g. through a national mail survey to offer a number of important Varshney et al. 2000, contributions for managers as well as the academic community in Varshney and Vetter the area of mobile commerce: 2001, Keen and 1) It identifies the potential value-adding features of mMackintosh 2001, commerce by presenting an analytical tool for assessing Kalakota and Robinson the extent to which any mobile service is likely to offer 2001). customer value in comparison to stationary electronic Predictions, channels. based on both anecdotal 2) With a reference to the proposed analytical tool, it and empirical evidence, provides some early findings on the sources of value on the...
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