A THEORY-DRIVEN FRAMEWORK FOR CONSUMERS TO
ADOPT M-COMMERCE DEVICES
Vincent Cho, Humphry Hung and Y. H. Wong
Department of Management and Marketing, The Hong Kong Polytechnic University, Hung Hom, Hong Kong
Keywords: Mobile commerce.
Abstract: M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld
electronic devices such as portable personal computers, mobile phones and personal digital assistants. This
paper proposes a theory-driven examination of the adoption of M-commerce devices (MCD) by consumers
in their on-line purchase processes. By integrating the concepts of the options model with the major ideas of
the technology acceptance model (TAM), we identify four M’s (merits, maturity, maneuverability and
mentality) as the influencing factors of the adoption of MCD. Based on the generic attributes of m-
commerce, we further identify two M’s, matching and mobility, as the antecedents of these influencing
factors. We then propose a conceptual model of the adoption of MCD by consumers. Because of the
ubiquitous nature of m-commerce, the proposed framework would have universal implications and would
make significant contributions to a more in-depth understanding of the spread and acceptability of m-
commerce.
1 INTRODUCTION
It is estimated that by 2007, the total number of the
Internet users in the world will be over 1.4 billion
and the percentage of wireless users is projected to
take up about 57% of the vast number (Magura,
2003). Most people anticipate that the next-
generation commerce will emerge from traditional
commerce, to PC-based e-commerce, and eventually
to mobile commerce (Chircu & Kauffman, 2000;
Ellis-Chadwick et al., 2000, Miller, 2002). M-
commerce (mobile commerce) is the buying and
selling of goods and services through wireless
handheld devices such as mobile phone and personal
digital assistants. It is an extension, rather than a
complete replacement, of PC-based e-commerce
(electronic commerce) and allows users to interact
with other users or businesses in a wireless mode,
anytime and anywhere (Balasubramanian et al,
2002; Samuelsson & Dholakia, 2003). It is very
likely that PC-based e-commerce will still prevail
for a relatively long period of time in spite of the
trend that more and more people will choose to
adopt m-commerce for their purchases (Miller,
2002).
As content delivery over mobile devices
becomes faster, more secure, and efficient, there is
wide speculation that m-commerce will surpass PC-
based e-commerce as the preferred method of choice
for digital commerce transactions. The industries
and services affected by m-commerce will include:
1) information services, which include the delivery
of financial news, sports, horse racing and traffic
updates to users; 2) financial services, which
includes e-banking (when customers use their
handheld devices to access their accounts and pay
their bills) as well as brokerage and investment
services, in which stock quotes can be displayed and
trading conducted from mobile devices; 3)
telecommunications, in which service charges, bill
payment and account reviews can all be conducted
from mobile devices; and 4) retail consumers are
given the ability and opportunity to place orders and
pay through mobile devices.
The emerging technologies behind m-commerce
is based on the Wireless Application Protocol
(WAP) and high speed wireless network such as 3G,
3.5G and 4G (Cowles, Kiecker, & Little, 2002;
Watson et al., 2002). These technologies enable
users to download video/audio information
seamlessly. The focus of this research framework is
on the consumers’ adoption of m-commerce devices
(MCD), which are equipment and technologies that
facilitate users to make use of m-commerce. MCD
279
Cho V., Hung H. and H. Wong Y. (2008).
A THEORY-DRIVEN FRAMEWORK FOR CONSUMERS TO ADOPT M-COMMERCE DEVICES.
In Proceedings of the International Conference on e-Business, pages 279-284
DOI: 10.5220/0001904802790284
Copyright
c
SciTePress
include mobile phones, Personal Digital Assistants
(PDA), portable computer notebooks, Bluetooth,
WAP and other facilities that can have access to the
wireless networks. Because of the need of the
standardization of the application, interface and
inter-connectivity of all hardware and software, it is
relevant to the adoption and usage of MCD
(Dholakia and Rash 2004; Buellingen and Woerter
2004). We expect that the heading towards a world
of mobile networks and wireless devices, which will
present a new perspective of time and space, is
definitely on its way.
1.1 Objectives
Several basic questions about MCD will be
addressed in this study. First, why should consumers
adopt MCD? What are the influencing factors for
consideration? Second, how do the MCD compare
with the devices for other types of commerce such as
e-commerce? Consumers will only adopt MCD
when there are some potential significant advantages
when comparing to old devices for other types of
commerce. There is still a lack of comprehensive
frameworks within which the adoption of MCD can
be evaluated. Traditional viewpoints regarding this
issue, especially those that are based on technology
acceptance models, will need to be revisited and
revised when consumers are considering such an
adoption.
In this proposed research, we intend to integrate
the major ideas of the technology acceptance models
(both TAM and TAM2) and the options model as
our basic framework for studying m-commerce.
Very little research has ever been done along this
direction. We can contribute to the literature by
exploring and identifying the various options, or
independent variables, that will affect the decision of
buyers to adopt new technologies related to m-
commerce. The research framework will be of
interest to marketers in m-commerce and also to
academics in the fields of marketing and IT. Both
are keen to determine how they can perform further
relevant research and position themselves well in the
next generation of m-commerce. Our proposed
framework will have both theoretical and practical
implications through knowing why and how relevant
MCD are adopted for m-commerce.
2 M-COMMERCE DEVICE
ACCEPTANCE
The emergence of m-commerce requires relevant
new technologies and attracts some current studies
on its adoption (Xu and Gutierrez, 2006; Dholakia
and Dholakia 2004; Bruner and Kumar, 2005;
Okazaki, 2005; Harris et al., 2005). Empirical
observation suggests that there is typically a
substantial lag between the discovery of a new
technology and its adoption (Doraszelski, 2004).
The theories on the diffusion of innovation can be
traced back to Everett Rogers (1962). Since then,
many authors have worked further on this theory,
but the core remained the same: when a new
product/new technology is introduced, the target
market can be divided into five segments along an
axis of risk aversion: in the beginning there are the
innovators, followed by the early adopters, the early
majority, the late majority and the risk-allergic
laggards. This proposed framework is not on the
diffusion process but primarily on the intention to
adopt new m-commerce technologies by early
adopters.
Literature on the delayed acceptance of
technology has stressed primarily on the benefits and
use of new technologies (Davis et al., 1989),
comparison between old and new technologies
(Sheasley, 2000), role of sunk costs in existing
technology (Salter, 1966) or in complementary
technologies (Frankel, 1955). There are some
models that associate diffusion lags of new
technologies with the reduction of complementary
costs such as specific human capital (Chari and
Hopenhayn, 1990), learning-by-doing (Parente,
1994; Jovanovic & Lach, 1989), and search costs
(Jovanovic & MacDonald, 1994). Other behavior-
based models, such as the information cascades
theory on the acceptance of new technology,
suggests that an individual who adopts new
technologies may do so based on the actions of
others and contrary to his or her private preferences
(Bikhchandi et al. 1992).
2.1 Why TAM and Options Model are
used Together
In line with mainstream literature, we acknowledge
that TAM will be our primary research framework.
The technology acceptance model (TAM) is an
information systems theory that models how users
come to accept and use a new technology, with
reference to two major considerations, perceived
usefulness and perceived ease of use (Bagozzi et al.,
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280
Figure 1: A Conceptual Model of the Acceptance of M-commerce Devices (MCD).
1992; Davis et al., 1989). The former is about the
degree to which a person believes that using a
particular system will make his or her life easier, e.g.
by enhancing his or her job performance or reducing
the workload, while the latter is the degree to which
a person believes that it is not difficult to actually
use a particular system (Davis et al., 1989). An
extended version of the TAM model, referred to as
TAM2, was later developed to explain perceived
usefulness and usage intentions in terms of social
influence and cognitive instrumental processes
(Venkatesh and Davis, 2000).
The options model demonstrates that a new
technology with a moderate expected improvement
in performance can experience substantial delays in
acceptance and price dropping in a competitive
market (Bessen, 1999; Sheasley, 2000). Rather than
adopting a new technology that demonstrates only
marginal improvement, consumers have the option
of not adopting until the new technology, in terms of
performance and price, is substantially better than
the old technology. Consumers contemplating the
adoption of a new technology are, of course, aware
of the possibility of sequential improvement. They
consider not only the current technical level of the
new technology, but also their expectations of
possible upgrades and changes in the future of the
new technology (Sheasley, 2000).
While using technology acceptance models
(TAM) as our primary reference, we also
incorporate the important implications of the options
model into our basic framework for analyzing
consumers’ adoption of MCD for m-commerce. We
observe that TAM is primarily about to what extent
people will adopt new technologies with reference to
the advantage and benefits (perceived usefulness and
perceived ease of use). However, we observe that,
although it is very likely that new technologies will
eventually replace old ones, the devices of old and
new technologies are very often being used at the
same time, based on people’s assessment of the
comparative merits of the two generations of
technologies. We, therefore, consider that the
options model (which focuses on the comparison
between old and new technologies) is a useful tool in
our analysis of the acceptance of MCD for m-
commerce.
Easy to Use
Mentality Merits
Significant
improvement
Mobility
Features of M-commerce Devices
Free to move Standardization and common interface
Acceptance of m-commerce devices
for m-commerce activities
Matching
Maturity
Maneuverability
Technology
Acceptance
Model
(Focusing on the
advantages of
new technologies)
Options
Model
(Focusing on
comparisons
among old and
new
technologies
and potential
development)
Antecedents
Dependent
Variable
Independent
variables
Maturity of
Technology
Recognition by
Peer groups
A THEORY-DRIVEN FRAMEWORK FOR CONSUMERS TO ADOPT M-COMMERCE DEVICES
281
3 THE INTEGRATED
FRAMEWORK
In essence, options model focuses on the comparison
between existing and old MCD while TAM places
emphasis on the generic attributes and utility of
MCD. We integrate the major ideas of these two
models into our new proposed model as shown in
Figure 1. Based on our theoretical framework, we
identify four influencing factors: merits, maturity,
maneuverability, and mentality, which we consider
to be relevant to the decision of consumers in
adopting MCD. We also identify two generic
antecedents of these influencing factors, mobility
and matching. This suggests an extent of influence
of these influencing factors and their antecedents to
affect consumers’ adoption decision of MCD.
3.1 Influencing Factors based on
Technology Acceptance Model
With reference to technology acceptance model
(TAM, TAM2 and UTAUT) (Venkatesh & Davis,
2000; Venkatesh et al. 2003), we consider whether
the adoption of MCD will bring advantages to
consumers. We identify two M’s, maneuverability
and mentality, for relating the acceptability of MCD
to users.
The first influencing factor, maneuverability, is
related to the perceived usefulness in the adoption of
MCD and the degree to which a person can make the
best use of such MCD. Consumers will tend to adopt
devices that are user-friendly and do not require
some intensive training of adoption (Prasanna et al,
1994). It would be measured by the usability of the
MCD.
The second influencing factor, mentality, is
concerned with the match between the new
technology and consumers’ own mindset, as well as
the appropriate recognition of their peer groups
(Bessen, 1999; Venkatesh & Davis, 2000). General
acceptance by the consumers, especially by their
peer groups, will be very important to consumers
when they consider using MCD for matching the
devices of other people. Mentality can be evaluated
by the perceived peer groups’ acceptance of MCD.
3.2 Influencing Factors based on
Options Model
While mainstream literature on the adoption of new
technologies is primarily based on the technology
acceptance model, we consider that, in the context of
m-commerce, we also need to think about some
other aspects. With regards to the options model
(Bessen, 1999; Sheasley, 2000), we consider the
comparison between MCD and devices for other
types of commerce, and in particular, the
comparative advantages of MCD to consumers.
Based on the options model, we identify two M’s,
merits and maturity, in relation to the comparison.
We identify the third influencing factor, merits,
which is about the degree to which a buyer believes
that the MCD can provide significant improvement
in the purchase process. Handheld mobile devices,
such as PDA and other enhanced alphanumeric
communicators, have supplemented mobile
telephones, thus expanding the range of MCD
available for m-commerce transactions. With the
abilities to be connected to digital communication
networks, MCD are considered to be in possession
of important comparative advantage of mobility.
Merits can be measured by the comparative
advantages of the MCD in relation to the old devices
for other types of commerce.
The fourth influencing factor, maturity, is the
possibility that the technology of the MCD is mature
enough so that there will not be any possible
significant improvements at a later stage. While
academic researchers and business practitioners
recognize that the electronic market will penetrate
and replace traditional type of commerce, there are
still some reservations that will likely cause the early
adopters of new technologies some problems in
terms of the obsolescence of devices (Samuelsson &
Dholakia, 2003). Most consumers will prefer
adopting MCD with more mature technologies so
that there is no need for a high level of subsequent
upgrading of devices. Maturity can be assessed by
the perception that the relevant MCD can or cannot
be upgraded.
3.3 Generic Attributes of MCD
In addition to the identification of the influencing
factors of the adoption of MCD, we also consider
their antecedents, which are related to the very basic
and essential characteristics of MCD. We start our
analysis by considering two generic attributes of
MCD, mobility and matching.
Mobility is the most fundamental aspect of m-
commerce because the name m-commerce arises
from the mobile nature of the wireless environment
that supports mobile electronic transactions
(Coursaris et al, 2003). Mobile wireless devices,
such as mobile phones, PDA, and portable computer
notebooks, can have the ability to help users gain
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282
access to the Internet. Based on these wireless
devices, m-commerce is a natural extension of e-
commerce but can provide some additional
advantages of mobility for consumers. Mobility is a
major prerequisite for the adoption of MCD. It is an
antecedent of the influencing factors of the adoption
of MCD because people will consider adopting
wireless connection because it can allow significant
improvement (i.e. merits), easy to use (i.e.
maneuverability), and can be accepted by peer
groups (i.e. mentality). It can be measured by the
extent of access to wireless networks.
Matching describes the need for the standardized
and common interface of MCD (Coursaris et al,
2003). The unique characteristic of m-commerce
very often requires both ends of this new type of
commerce to have a common interface. M-
commerce applications have the challenging task of
discovering services in a dynamically changing
environment. Effective mechanisms need to be in
place for the interface between various types of
MCD. Matching is an important antecedent of the
influencing factors of consumers’ adoption of MCD
because the need for standardization (i.e. matching)
is important for m-commerce technology which
allows for the interface of MCD with the wireless
networks when the technology and interface is
mature (i.e. maturity). It also provides utility for
consumers for interacting with other devices (i.e.
merits). Matching can be measured by the degree
that MCD can be compatible with each other.
Based on our conceptual framework, we identify
the various influencing factors (i.e. 4 M’s) which
can affect consumers’ decision of the adoption of
MCD in their purchases. It is possible to collect data
on whether consumers will consider the adoption of
MCD, and at the same time, researchers can also
investigate the reasons why they adopt or do not
adopt MCD, in terms of timing, opportunities,
changing trends and applications.
4 CONCLUSIONS
We are proposing new insights and new adoption
behavior in the ubiquitous world of m-commerce,
which we believe, are still not yet fully understood
by most marketers and scholars (Stevens &
McElhill, 2000; Struss et al., 2003). Our conceptual
framework contributes to literature by suggesting the
new constructs: merits, maturity, maneuverability,
and mentality, which we consider to be relevant to
the decision of consumers in adopting MCD. It also
represents an examination of the adoption of MCD
by consumers in their purchase processes and will be
of interest to the MCD market.
ACKNOWLEDGEMENTS
This research was supported in part by The Hong
Kong Polytechnic University under grant number A-
PA6E.
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