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

 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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