mobile notes

1. Mobile E-Commerce
INTRODUCTION:
Mobile Commerce (m-commerce) can be widely defined as “any transaction,
involving the transfer of ownership or rights to use goods and services, which is
initiated and/or completed by using mobile access to computer-mediated networks
with the help of an electronic device”. (R. Tiwari, and S. Buse. 2007) Business-to-
consumer (B2C) mobile commerce (m-commerce) refers to consumers sharing
information and purchasing products and services from sellers with their mobile
devices (Balasubramanian et al. 2002). With the continuous development of
telecommunication technology, mobile services ranges from email receiving and
sending, shopping for goods and services, playing online interactive games, trading
stocks and shares, reserve tickets, conductbanking and monetary transactions and
even link to social networking sites to connect with friends. Mobile commerce
constitutes payment for such goods, services and information.
Users access a website or wireless access protocol(WAP) by entering the web
address (URL) of the particular products required via the mobile phone browser.
Text messaging (SMS) is another way users can ‘communicate' with third party
service provider. Depending on the tangibility of the product, the delivery of the
productcan be in the form of physical collection or downloaded digitally into the
mobile devices.
Evolution of Mobile E-Commerce:
Finland is the ‘birthplace' of Mobile Commerce. In 1997, the first SMS-activated
CocaCola vending machines was installed in Helsinki. Same year, mobile-based
finance and banking service were also launched. Finland is also the place where
the first sales of digital content, ring tones were downloaded to mobile phones,
were made. In 1999, Philippines and Japan commenced a national commercial
platform for mobile commerce, known as SMART and i-Mode respectively.
Subsequently, mobile commerce associated services begun to sproutrapidly in
other markets, from mobile parking in Norway, to sales of train tickets via mobile
phones in Austria to the purchase of airline tickets in Japan.
From 2002, public transportation commuters in Helsinki are able to purchase tram
and undergrounds train tickets via mobile phones. The costof the tickets is the
same as those bought from a machine but without the queue. In Colorado, it is one
of the first few places whereby one can order movie tickets and pay via mobile
phone. A dedicated counter is arranged for the pick-up. Mobile vouchers or

2. coupons are visible in many countries from Finland, Spain, Germany, and United
States to Japan. The promotional items offered on discounts ranges from laptops to
McDonalds. Ring tone and wallpaper downloading have been one of the first
widely used mobile commerce services. Some mobile services providers offer
mobile news services, such as headlines, sports, weather, sports to mobile
subscriber, sometimes free when sponsored bymobile advertiser or at a monthly
subscription costto the user.
Small-scaled mobile commerce does exist in most markets, from SMS voting in
reality shows like ‘American Idol' to participate in promotion lucky draws to
downloading mobile ringtones. External environmental factors do play a part in
promoting the mobile commerce growth. Worldwide expansion of digitalization
and automation of sales procedures in the e-business and e-commerce on the
Internet allow easier transference to the mobile commerce environment.
Technology:
Mobile commerce is actualized by a series of interlinked technologies such as
networking, embedded systems, databases and security. (Siau et al, 2003). Mobile
devices, wireless systems and software's enable a faster transmission of data, along
with reliability and security.
Global System for Mobile Communication (GSM) is the second generation (2G)
after the analogue cellular era. It is the basic circuit-switched system whereby users
need to dial in to maintain connection. The 2.5G technologies consistof the
General Packet Radio Service (GPRS)and Enhanced Data GSM Environment
where they make use of existing infrastructure but faster in terms of sending speed.
This generation of mobile technology is meant for transference of multimedia and
broadband applications.
The third generation (3G) uses the Universal Mobile Telecommunication System
(UMTS), which strives to provide higher bandwidth, faster transmission of voice,
text, video, and multimedia for data-concentrated applications. UMTS allows users
to be constantly connected to the Internet and its services worldwide, regardless of
the devices (mobile or computers) used. As such, the mobile device can be
integrated with functions of other equipment such as television, newspaper,
organizer, computer and even credit card.
In order to access web information to the mobile devices, the Wireless Application
Protocol(WAP) was designed. As an open and global standardization for mobile
applications, WAP aimed to connect and communicate mobile devices with other
devices over wireless network on an interactive and real-time interface.

3. Global Positioning System (GPS)uses a satellites system orbiting around the earth
and is particularly useful location technology. It is essential to location based
mobile commerce based applications, as it offers relevant information dependent
on location.
Role of channel provider:
The roles of the 3G operators are more obvious than the voice-centric 2G. In fact,
how these operators facilitate their roles will determine the adoption of mobile
commerce. The carrier or Internet Service Provider (ISP) is the entity that delivers
the data to and from the user. The initial stage of 3G-standardisation process
started with dual layer model, the pure carrier and service and/or connection
provider. It is viewed that this model will continue with carriers bring the main
subscription provider. The gateway or portal is the entity centered to the services
range. It is still unclear whether carrier will control it wholly. Regardless, it is
definite that the number of content provider will increase. The role of banks in
mobile commerce is considered critical since ease of payment is one of the
determinant factors in adoption of mobile commerce. Certification authority is the
entity that guarantees the transactions between the origin and destination.
In addition to the above mentioned infrastructure requirements, a smartcard called
UMTS SubscriberIdentity Card (USIM) is compulsory in every device n order to
make phone calls. The basic functions for USIM are security via shared secret key,
personal information manager, and SIM toolkit applications. USIM is also a
platform for applications or features such as public key security content copyright
control, specification and cookies, data or application cache, authentication of
users and plastic roaming.
Developmentof Mobile Commerce:
The extensive availability of Internet-accessible mobile phones is slowly creating a
community of mobile commerce users. It is expected that this community might
exceed the PC community. (Ahonen, 2002) With technology such as WAP or 3G,
it is believed that electronic commerce information and/or interactive content will
be adapted to the mobile commerce environment.
While the majority of mobile commerce opportunities and purchases are business-
to-consumer (B2C), the possibility of business-to-business (B2B) still stands. It is
predicted that business users and their requirements will be fulfilled by the 3G
services. A report by Accenture in 2001 “Future of Wireless”, has suggested that
most business activities are easily accommodated for mobile commerce.

4. With the rapid spread of mobile commerce, mobile phone manufacturers such as
Nokia, Sony Ericsson, Samsung, Motorola and LG had begun to develop WAP-
enabled smart phones to exploit on the market potential. Interestingly, it was the
introduction of Apple's iPhone mobile commerce based systems like FanGo that
the platform started to move into actual applications instead of SMS systems.
The key advantage of mobile commerce services is the mobility of conveniences.
Mobile commerce allows users the ability to execute transactions regardless of the
location and time. With such uniqueness, mobile commerce has experienced
relatively greater success in markets like Japan in regards to individual adoption
rate. In comparison, this novelty technology has yet to achieve widespread
popularity in other markets like the USA, Australia and Singapore.
Mobile commerce actualizes the possibility of accessing information at anywhere
and anytime. It provides users the chance to access the Internet regardless of
location (subject to the network coverage of mobile internet operators), the ability
to identify a single mobile device's location (Global Positioning System) and to
retrieve and/or update information whenever needed. The features of mobile
commerce can be categorized into the following:
Ubiquity: The most distinct advantage of mobile commerce is its ubiquity. With
internet-enabled mobile devices, users can obtain any information required. Also,
the emerging mobile commerce applications allow users to engage in activities
such as instant messaging, linking to social networking websites, conducting
financial transactions or looking up for weather news.
Dissemination: The wireless infrastructure that supportinstantaneous delivery of
data to mobile devices allows an efficient distribution of information to a
population.
Personalization:With the massive amount of information available on the
Internet, it is important that the content users receive is relevant. Mobile commerce
companies can create applications that allow customizable information and
services applicable to users.
Localization: Another significant feature will be the ability to identify user's
physical location with prompted the creation of location-based applications. The
Sekai Camera created by Tonchidotis one example of how far such applications
can go.

5. BACKGROUND:
Mobile Commerce in Pakistan:
1. Mobile Commerce Outlook in Pakistan:
The future of mobile commerce in Pakistan – a developing country having 90+
million adults, 100+ million mobile phone users and 20+ million
internet subscribers looks promising despite of the fact that the country is fighting
war against terrorism, poverty and unstable economic conditions. The success
stories of online shopping websites including Daraz.pk, Kaymu.pk,
Homeshopping.pk and many others, in short span of time not only represent the
urge and desire of people to shop at convenience and comfort, but also the
opportunities for new players to serve ever increasing online shoppers.
Interestingly, Pakistani online buyers prefer to pay cash on delivery – the most
preferred mode of payment opted by 95% of online shoppers, instead of paying
online in advance using credit or debit cards. Despite of positive financial inclusion
initiatives by the local and foreign banks, so far less than 10% adults maintain bank
accounts;and there are only 1 million credit card holders and 5 million debit card
holders in the entire country with a population of 200+ million. Undocumented
parallel economy is an additional challenge faced by the government which should
be addressed on highest priority along with infrastructure development.
Moreover, real-time processing of payments, on-time delivery to customers,
efficient supply chain and customer supportservices posemore challenges
to mobile commerce industry due to lower literacy rate, urgency, availability of
skilled labor and domain expertise. Since the talented nation is in process of
learning, I am sure to observe significant improvements in next 18 to 24 months as
competition is on rise resulting in further increasing customer experience and
service levels.
The main driver of mobile commerce industry is smartphone penetration (‘the
potential customer’). According to PTA, smartphone imports significantly
increased compared to last year (FY2014) and it is expected that Pakistan will have
more than 40 million smartphone users by end 2016 i.e., exceeding entire
population of Sudan in Africa or Argentina in South America. Approximately
10+ million potential mobile commerce audience verily offers enormous potential

6. for new entrants, create employment opportunities to establish and grow in online
marketplace.
2. Banking Sector:
Mobile commerce has becomea driving force in banking sectorand assuming
absolute relevance with every passing day. Pakistan is among the leading
internet/mobile users country and the growth in e-commerce business is attracting
the global players to invest in Pakistan. The foreign direct investment in this sector
is playing a key role in country's economy. 61% of Pakistanis use some form of
informal credit channel to cater for short-term financing needs. Financing gap in
the micro-finance industry is estimated at PKR 990 billion, he said mentioning that
with the success ofEasypaisa, Mobicash, and Telenor Bank etc. intends to enhance
financial inclusion by offering advanced banking products suchas digital loans.
3. The M-Commerce Boomand Its Impact on Retailin Pakistan:
Pakistan is reportedly one of the fastest growing economies in the world and has
now become one of the hottest destinations for the mobile industry and global
retail and e-tail giants.
The catchup potential is so immense that it urges us to take a look and try to
understand how Pakistan has managed to break the usual technological evolution
of the West and is set to become one of the most digitally integrated economies in
the world.
There is plenty of evidence that Pakistan will be the next digital hotspotover the
next couple of years. Economic growth is booming with no end in sight, as
Pakistan is expected to grow another 5.5% into unprecedented heights all while
Pakistan’s millennials are growing up rapidly and cannot wait to get their hands on
smartphones.
All of this is reason enough to focus today on the exciting evolution of the mobile
industry in Pakistan, the current smartphone revolution, and the profile of the 21st
century mobile savvy consumer in Pakistan by presenting some insights from the
vast experience and knowledge that Daraz.pk has acquired about the Pakistani
market over the last three years.
4. Exponential growth in smartphone penetration:

7. Pakistan is expected to become one of the most mobile-savvy countries in the
world, with a mind blowing 125 million mobile subscribers in 2015, which will
have an immense impact on the transformation of how companies will do business
in Pakistan and how they interact with their customers.
However, mobile penetration is not all there is to the digital revolution that is
currently taking place. With keen interest, we are especially following the
smartphone penetration.
While three years ago, 93% of all phone shipments were feature phones, today,
smartphone penetration has reached 31% of all phones in the market.
These numbers ranks Pakistan in a study released by GfK, a German market
research institute, as number 6th on the list of top smartphone markets for growth
by value before the US, UK, and Canada. This trend is highly related to the
introduction of 3G/4G technologies into Pakistan.
Today, a larger share of Pakistanis have a smartphone than India, where only 20-
25% of the population has a smartphone, and the smartphone emergence is
expected to continue. According to Pakistan Startup Report, the figure can
potentially go up to 110 million people in the next 4 years.
5. The rise of the affordable smartphone fueling the mobile industry:
A few short years ago, it was the advent of the Apple phones that set the stage for
dynamic growth in the smartphone industry and, eventually, the entire digital
landscape.
While Apple phones remain the crème de la crème of smartphones, premium
technology and high demand from the millennials has prompted mobile companies
to find new ways of growth and outreach. Three major factors have influenced the
upward trajectory of smartphone penetration apart from the introduction of 3G/4G
technologies.
First, more players have entered the market with more affordable price points to
cater to the rise in demand thus enabling more people to own a smartphone and
discover its perks.
To make a case in point, reportedly, Daraz.pk observed an over 50% price drop in
smartphones in just two years’ time – the average retail price of a premium
smartphone has tumbled down from PKR 61,000 to nearly PKR 30,000, and the

8. average number of smartphone sales has shot up by over 780% between January
2015 and January 2016. Assignment by zubaida shair
PakistaniM-commerce Accelerating but Still A Long Way to Go:
Love for shopping is always in the air. People adore watching variety and
considering products that are significant for their routine life. Being a Pakistani,
you prefer buying goods that are linked with traditions or related to eatables and
fashion. But the right platform is the wise decision of yours.
Online shopping in Pakistan is a methodology that is accelerating day-by-day.
The prime reason is that there is ease for both buyers and sellers. Being associated
with it, there is mobile commerce, which is expressly based on wireless devices
like smartphones. As these are the most portable devices, people can put in bags or
pockets and carry them anywhere.
We are familiar with many notable web portals for shopping like Lootlo and
GetNow that are showcasing their e-commerce services. But still, there is an
intense need of improvement in m-commerce. Natives should be educated with
benefits of such businesses and should implement for more comfort in their lives.
No doubt mobile commerce is booming in Pakistan. There are known to be 125
million mobile subscribers in 2015 which is surely a good customer base. But still,
not all of the online marketplaces are seriously working on mobile businesses. The
development of user-friendly mobile application can do a lot in terms of attracting
more number of customers. This service is also inexpensive and can reach a large
audience.
Nobody likes to stand in lines at payment counters or search entire market just for
one piece of cloth. Mobile commerce is a lot easier in this case. It makes buying
online in Pakistan a luxury as there is just need to open the portal in your cell
phone and add desired product to wishlist. There is also a vast possibility of
attracting new customers. People usually surf the internet using their smartphones.
If the site of any online marketplace is not mobile-friendly, the user will not prefer

9. to view the entire website. But if it does, then customers will adulate shopping via
this simple approach.
Hence, m-commerce can never be underestimated. There are lots of advantages for
Pakistani natives to relish goods in fewer prices and with less consumption of
money. Hope for the best for mobile businesses in Pakistan and keep considering
the wild options that online platforms offer in terms of digital commerce.
Mobile Commerce Process
Mobile commerce consists of user's participation in transactions via mobile
terminals. From a user's point of view, retrieving and sending information and
purchasing products are regarded as the basic steps to mobile commerce. Most
mobile commerce studies focused mainly on the purchasing stage but customers
are involved in receiving and transferring information at the pre-purchase stage.
Receiving information consists of conveying of information from seller to user's
mobile device. As it is important for customers to know about the products, make
comparison between products and then make buying decision.
Transferring information represent the directing of information from user to sellers.
The information can be used to describeproductand services requirements,
registering, providing feedback and offering payment and/or delivery details.
Purchasing is the act of buying products and services via mobile devices in return
of monetary returns. The act of placing orders can be done through Wireless
Application Protocol(WAP) properties of mobile device. It does not include
making order by calling the seller from mobile phone.
Mobile Commerce Adoption Activators and Inhibitors
There are a significant number of studies carried out to identify and predict the
upcoming activators and inhibitors of mass-market mobile commerce adoption. As
seen in the review here, different authors have highlighted different factors as key
activators/inhibitors to the adoption of mobile commerce. Gillick and Vanderhoof
(2000) suggest five broad-natured inhibitors, namely the technology,
standardization of industry, the business case, expectations of consumers, security
and reliability. The last factor is one of the most commonly quoted. Most authors
have quoted the lack of security and privacy could be the main obstacle to the
growth of mobile commerce. E-Mori conducted a multi-market study for Nokia

10. Networks and it was found that the lack of perceived need (Signorini, 2001),
conservatism, and perceptions relating to the reliability and security of the
technology are the main hurdles to adoption of mobile commerce; while
convenience and controlare found to be the key determinants of demand.
Buellingen and Woerter (2002) emphasize four vital success factors forthe use of
mobile services - transmission rate, personalization, data security, and user
friendliness. Based on a survey by Strong and Old (2000) proposethat ease of
having ubiquitous Internet access will be the most essential for customers to
engage in mobile Internet applications. The authors noticed substantial obstacles to
rapid adoption to mobile Internet in the future are lack of awareness in content and
application, high operating costs and the unfavorable comparison towards mobile
Internet in terms of small screen size, awkward input, poorsearch functions,
unstable or expensive connections, etc. On the other hand, many studies disputed
on the fact that mobile commerce may encounter considerable growth with non-
Internet adopters becauseof the lower costs and ease of usage with mobile devices
involved. (Müller-Versee, 1999; Vittet- Philippe and Navarro, 2000; Ropers,
2001)
Vittet- Philippe and Navarro (2000) and Green (2000) believe that ‘user-friendly' is
the main point for mobile commerce adoption. As such, the limitations like small
screen size, low bandwidth and the basic functions of mobile devices influence the
design of mobile commerce applications' interface. Likewise, the survey conducted
by Carlsson and Walden (2002) noted that slowness in speed of service and small
screen size of mobile phones attributed to the hindrance in mobile commerce
adoption. On the other hand, Langendoerfer (2002) assumes that technological
matters such as technical environment and mobile devices will not be the main
reason for the slowness in widespread usage of mobile commerce. Rather, the
concerns of users such as privacy and security have a larger influence on the slow
take off.
Shuster (2001) hypothesize that pricing will definitely have an influence on mobile
commerce adoption. “Improved mobile devices, user-friendly shopping interfaces,
effective applications and services, reduced prices, secure transactions, high
bandwidth and network coverage” are the list of key success factors forescalating
mobile commerce adoption from the online survey by Vrechopoulos et al (2002)
It is also highlighted from a consumer survey (Anckar, 2002b) that mobile
commerce adoption is driven by “convenience and flexibility to daily routines
rather than excitement and entertainment”. It is also found out that consumers
regard the function to fulfill instantaneous and time-sensitive needs as important
adoption drivers of mobile commerce.

11. Prior research has somewhat indicated that the main factors influencing the
decision to adoptmobile commerce related to the services or device features has
gone beyond the traditional function of a mobile phone, i.e. one-to-one voice
communication. In line with this theory, consumer will be encouraged towards
mobile commerce based on the fact that mobile device in transforming into a
personal device, via which various transactions and activities can be carried out.
Traditional models
Several studies have been carried out using conventional adoption theories and
models like the Technology AcceptanceModel (TAM) and Theory of Planned
Behaviour (TBP). However, the main conclusion drawn by many authors was that
traditional models are lacking to derive significant deduction on the determinants
of individual adoption or rejection of mobile commerce.
According to the Theory of Planned Behaviour (Ajzen, 1991), the behaviour prior
to any act (behavioural intentions) is established by variables like Attitude,
Subjective Norm and Perceived Behavioural Control(PBC). A user's attitude
linking to using mobile device to obtain, transmit information and purchase is
believed to influence the user's intention to carry out the three behaviours.
Subjective norm is believed to have the same effects on users too. PBC is a factor
of intended users' behaviour via increasing insight of control, assurance and ease of
performing act.
Based on the research by Pavlou et al, (2007), the model of m-commerce adoption
emphasize largely on “technology adoption (perceived usefulness and ease of use),
technological characteristics (mobile device display features, mobile device
portability, and mobile site navigability and download delay), information
characteristics (mobile site informativeness, information protection, and
personalization), and consumer characteristics (mobile user's skills)”.
TAM has influence many information system based findings (such as Lee et al.,
2002; O'Cass and Fenech, 2003) pertaining to information technology adoption in
set or mobile environment. Although many studies are in favor of TAM as a model
to explain the decision of acceptance, it is still uncertain if the model is entirely
appropriate with regards to different channels.
The decisions to adoptmobile commerce are very different from the decision to
adopttechnology for carrying reasons. Firstly, users adoptmobile commerce as a
new channel of commerce rather than as technology per se. Second, mobile
commerce may consist of transactional and non- transactional element. This means

12. that adopters' intent to engage in mobile commerce should be viewed holistically.
(Pavlou, 2002) As such, we need differentiate between the various levels of mobile
commerce adoption as we study consumer adoption decision. Third, Eikebrokk and
Sorebo (1998) pointed out that TAM is generally applied to singular target
situation, based on the assumption that potential users are only faced with one
specific technology. It is therefore argued that to acquire valid forecasts and
justifications of technology acceptance with TAM since users are presented with
situation whereby they can chooseamong alternative channels. Fourth, it is argued
that TAM itself is imperfect as it does not considered the influence of social factors
in the adoption and usage of new technology or system. This shortcoming has to be
taken into consideration when examining the adoption factors. Last, TAM assumes
that usage is free and voluntary, that there are no obstacles to prevent user from
adopting any technology as long as wanting to do so. This has led to criticism from
several researchers (Mathieson et al, 2001) and prompted some authors to
supplement TAM with theories that hypothesize perceived risks as a pre-condition
to the mobile commerce adoption. Pavlou (2002) emphasizes that the proliferation
of the Internet has brought uncertainty and risk in the adoption of system. It
therefore require the integration of variables that capture concepts in current
technology adoption models by reflecting that trust and perceived risk are directly
linked to the intent to transact via mobile devices.
One reason for the inadequacy of traditional models is that the relationship
between users and mobile commerce has not been clearly defined. Past methods
only analyzed the interaction between the users and the technology or between
people in a network connections. On the contrary, mobile commerce users
interrelate in three directions, in technological aspect, as members of networks and
as consumers. These three roles need to be incorporated in order to achieve a
greater understanding of mobile commerce adoption.
The adoption of mobile commerce - the interaction of consumers and sellers via
mobile transactions is different from the usual electronics commerce due to the
nature of location-independence, instantaneous real-time exchanges, the distinctive
interface of mobile devices, and the unique aspectof mobile devices like small
screen size and low bandwidth. Therefore, mobile adoption is not merely an issue
of usability of system or acceptance of technology. It should include several
consumer pre-purchase actions such as researching for information, providing
details and act of purchasing using mobile devices.
This paper will re-examine present literature of voluntary adoption of m-commerce
services by individuals to emphasize the need to approachthe three aspects of
mobile commerce together in order to attain a holistic comprehension. The current

13. mobile commerce industry of Singapore will be evaluated based in this research. It
will enable stakeholders of the mobile commerce industry to gain informative
insight on the acceptance of mobile services. Hence, this will result in wiser
decision-making in terms of business strategies and provision of the productand
services.
1 Survey
The self-administered survey was hosted online on speedsurvey.com, under the
domain http://mobilecommercesingapore.speedsurvey.com/. The reason for having
such an unsupervised survey technique was that the 16 questions were simple to
understand and followed a direct logic.
The respondents are made up of 12 females and 24 males and all the respondents
own a mobile phone. They survey instrument covered 16 questions pertaining to
the users' insight and purposeassociated to mobile commerce and also their
experience with the mobile commerce and mobile Internet. In this paper, there is a
section in the questionnaire where the respondents were requested to specify to
what extent does they agree or disagree with the statement related to the considered
significance of different proposed benefits and obstacles to mobile commerce. The
data collected were used to identify the activators and inhibitors that cover critical
or non-critical factors that impact consumers' decision in adoption or not adopting
mobile commerce.
2 Results and Discussion
Over 41% of the respondenthave a bachelor degree and about 50% of them holds a
master or doctoratedegree. All the respondents own a mobile phone and about
75% have Apple iPhone. This will mean that their service provider is SingTel since
the Telecommunication Company has a monopoly on the distribution of the Apple
iPhone until 2010 when the other 2 Telecommunication Company will also have
the distributor rights. Incidentally, it is reflected from the data collection that the
most common item purchase via mobile is the phone applications. Also known as
widgets, these applications can be downloaded on the iApps or iTunes store via the
phone Internet browser. In terms of frequency, it is has the most recent item
purchase. More then 40% of the respondent has purchase widgets for the past 1
week. Out of the 36 respondents, 34 of them has purchased
(buy/order/reserve/download) item at least oncefor the past 12 months. None of
them has bought items off the vending machine via the mobile phone. The
purchase of other items such as requesting for information and buying multimedia
content by SMS to a specific 5-digit number are rather sporadic.

14. Over 40% of the respondents agree that using mobile commerce saves them time,
with the other 30% strongly agreeing. There are about 70% of them who see that
using mobile commerce is fashionable and trendy. With regards to the mobile
commerce being an invasion of privacy, there are equal responses from those who
agree, strong agree and disagree. However, about 80% of the respondents think
that it is safe to make purchases using mobile commerce. The majority of the
respondents agree that they have the necessary means and resources to use mobile
commerce. Same, the respondents also agree that they will seek information about
the new product or services.
Among those that had never performed a mobile transaction before, the reasons
mainly evolved around unawareness. Mostly, they are do not possessenough
information to get started or use it, or no idea how much it will cost. It is much
preferred to use other devices suchas computer or payment kiosks such as SAM or
AXS to perform the transaction. It is commonly believe that mobile commerce is
expensive and will costtoo much.
However, it is indicated that they are willing to try to mobile commerce mainly if it
was easier to obtain information from the Internet via mobile phone. This will also
comprise of ease of access to rich media on mobile devices and user-friendly
navigation on their mobile devices.
3 Limitations of the survey
The data collected from the survey is highly non conclusive for several reason.
Firstly, the size of respondents is less than 50; therefore the results are not
substantial. Secondly, the profile of the respondents is too skewed towards certain
segments; mainly male that has Apple iPhone. Hence, the data is not representative
enough. Thirdly, the structure of the survey was not well organised. The lack of
logic and guided instructions, which is critical in self-administered survey, may
somewhat confused respondent.
4. Suggestions forfuture research
It is seen that Apple iPhone may be a boosting factor for the future mobile
commerce phenomenon. The intuitive design and ease of navigation of the iPhone
may propelmore and more users to perform mobile commerce transaction. Also,
with the fact that all three Telecommunication Companies are offering iPhone from
2010, it is believe that the market share of iPhone will expand rapidly. It is
therefore suggest that an iPhone focus study may be undertaken in the future to
better understand the effect of iPhone, iPhone applications, iApps, and iTunes store
on mobile commerce trends. Assignment by iqra shahid

15. Mobile Commerce Industry Advantages and Disadvantages:
M-commerce has the potential to becomea major channel for shopping and to
change consumer shopping habits, but one overwhelming factor has prevented this
shift.
The mobile shopping experience is a nightmare.
Users get so frustrated when trying to shop on their phones that they far more often
than not abandon the process.In the second quarter of 2015, U.S. adults spent 59%
of their time on mobile and 41% on desktop, but just 15% of their dollars on
mobile and a staggering 85% of their dollars on desktop.
Multiple factors contribute to this poormobile shopping experience. The most
prevalent of these is smartphones' small screen size. This makes productdetails
difficult to read and payment information frustrating to enter, especially because
many sites are not mobile optimized. This is far and away the main reason that
customers give up: completing a purchase on a phone just takes too much work.
Speed is also a problem. Mobile users often shop on the go, which provides
convenience but also puts them at the mercy of spotty Wi-Fi and LTE connections.
And finally, users feel less secure when entering their payment information on a
phone when compared to a desktop or laptop.
But companies are starting to address these problems and are providing a boostto
m-commerce as a result. Smartphone manufacturers are enlarging their phones to
improve the user experience, which helps not just mobile shopping, but gaming,
mobile video, and more.
Social media sites suchas Facebook, Twitter, and Pinterest have all introduced
"buy buttons" that let shoppers make purchases without having to leave the
platform.

16. And many retailers have introduced one-click checkout to their sites. This method
requires shoppers to enter their payment information once, and then they can use
the one-click option to make purchases without having to re-enter it.
New Trends in M-Commerce:
1. Smarterchatbotsandmobile messengers
It’s rather tempting to scoffat the idea of m-commerce customer supportchatbots,
which may seem like little more than a novelty to skeptical merchants.
But the fact that massive names like Starbucks, H&M, and Nordstrom are on board
should say a lot about just how much industry leaders are betting on chatbots.
Rest assured, this bet is based on data. According to eMarketer, the majority of
today’s social media users prefer messenger apps (54.4%) to get in touch with
brands versus email, phone calls or traditional online chat (46.6%). The end result
is smart bots, which are essentially able to…
 reach customers and respond to requests from shoppers in real-time
 learn more about customers and essentially personalize the shopping experience
based on their responses
 engage with customers without requiring that they install a native app since
chatbots integrate with the likes of FacebookMessenger, Skype, Telegram, and
Kik, for example
Obviously, bots still have a way to go. Even so, given the popularity of AI
platforms such as Amazon’s Echo, modern shoppers have quickly become highly
comfortable with the conceptof tech that helps them shop.
2. The augmentedrealityrevolution
Not totally unrelated to chatbots, the evolution of augmented reality apps related to
e-commerce continues to boom despite the technology still being in its infant
stages.
Yet we’re definitely seeing the possibilities through platforms such as the Houzz
AR app, which allows shoppers to virtually position pieces of furniture in their
homes to see if they’d be a good fit. Similarly, Sephora’s Virtual Artist app acts as
a sort of virtual makeup mirror for users taking advantage of AR tech.

17. According to a recent report by Retail Perceptions, the push for AR is based on the
wants and needs of consumers versus merchants looking to splash cash on fancy
apps for themselves. The report notes that…
 40% of shoppers would be willing to shell out more cash for a productif they
could experience it via AR prior to purchase
 61% of shoppers prefer brands taking advantage of AR versus those who aren’t
 71% of people would feel more loyalty to a brand if they offered augmented reality
as an option for shoppers
Much like chatbots, it’s easy to dismiss such apps as novelties as the technology is
still evolving; however, given the insane popularity of AR apps like Pokemon Go,
there’s certainly something to be said for the compelling, conversion optimizing,
interactive nature of AR – which is, of course, exclusive to mobile.
3. The future of single-click payments
Although Amazon currently has somewhat of a monopoly on true one-click
purchasing, thanks to a long-standing patent, leading mobile wallet players such as
Google and Apple are scrambling to offer up their own one-click solutions for
shoppers when that patent ends in September 2017.
The ability to drive repeat business in a single click minus re-entering information,
or jumping through extra hoops, has been a cornerstone of Amazon’s success.
We’ll have to wait and see what these other names come up with to streamline the
payment process forbuyers, but it’s worthy to note that the increase of single-click
payments could contribute to the phenomenon of impulse buying via mobile. By
putting fewer barriers between shoppers and products, there are fewer
opportunities to drop out of a transaction or have a change of heart. This spells
good news for mobile ecommerce merchants in the near future.
4. Increasedemphasisonautomation
Marketing automation and ecommerce have always gone hand in hand, haven’t
they? Thankfully, there are more opportunities than ever to put the essential
aspects of marketing and selling on autopilot than ever before.

18. How so? Consider the wealth of automation tools specifically tailored for
ecommerce today. Shopping cart abandonment re-engagement engines. Loyalty
program generators. Platforms that aggregate productreviews. The list goes on.
Email marketing and social media in particular signal massive opportunities for
ecommerce merchants. Considering we’re currently spending an average of five
hours per day on our smartphones, and that email has become an increasingly
mobile channel, merchants absolutely must be taking advantage of automation if
they want to maximize their marketing spend.
5. The rise ofstorefront apps
It’s no secret that modern shoppers are glued to their mobile devices, leaving
desktops in the dust. The bulk of that time is being spent within some sort of app,
whether it be in the realm of social media, messaging or, you guessed it, shopping.
While there’s certainly room to debate the advantages and disadvantages of native
ecommerce apps, there’s no denying the benefits to ecommerce brands when it
comes to the ability to track, authenticate and reach their buyers via app
notifications. Furthermore, boasting an app most definitely provides a more
personalized experience for shoppers that’s out of the ordinary.
That said, additional data by BigCommerce notes that desktop purchases are on
average 50% higher than that of mobile orders. As a result, it’s crucial for
ecommerce storefronts to have their bases covered for mobile and desktop
shoppers alike, with an omni-channel presence.
This is why platforms like Shopgate are so useful, as they help merchants to easily
create integrated, branded mobile apps. This can help a great deal with customer
retention, thanks to customizable pushnotifications, a well-designed interface and
an overall great user experience.
Even though storefront-specific apps are certainly changing the game, anything
merchants can do to make the purchasing process easier on their customers is a
major plus.
And honestly, that’s what it really comes down to, isn’t it? You know, making it
easier on customers to make purchases and get from Point A to Point B when it
comes to their shopping carts.
Easy payment options, less back-and-forth and more opportunities to interact with
customers represent the top priorities mobile e-commerce merchants for now. It’s

19. difficult to predict the upward trend of m-commerce spells great news for mobile
merchants.
Future of M-Commerce:
The most prominent m-commerce trend is its own growth. According to Forrester,
annual m-commerce sales are predicted to quadruple to $31 billion in the next five
years. In 2012, some ecommerce sites (like Amazon) saw remarkable growth,
while most businesses experienced only limited m-commerce success. However,
one thing they all have in common is that they now universally recognize m-
commerce as an important way to enhance their brand, increase their sales and
keep up with competitors. In short, the future of m-commerce is bright, and looks
like it's getting even brighter.
Another trend in m-commerce is that customers desire more information on mobile
websites. Studies show that 80% of smartphone users want more product
information when shopping on their mobile devices. A large part of m-commerce's
appeal may be convenience, but if that convenience comes at the sacrifice of
information, customers will be sure to look elsewhere. The larger trend here is that
ultimately, businesses are in uncharted waters when it comes to their mobile
offerings, they're still finding out what works and what doesn't.
The last big trend, by far, is the rise of tablet commerce. Much of it has to do with
the nature of tablets themselves. With their larger screens and portability, tablets
make it easier to navigate mobile ecommerce websites. These features make it no
surprise that 55% of tablet owners use their tablets for online shopping, whereas
only 28% of smartphone owners shop on that device. Furthermore, tablets in
general are growing in popularity. Studies showed that in 2012, about 29% of
adults owned a tablet, compared to 13% in 2011. These factors combined have led
people to envision a bright future for tablet commerce. According to eMarketer,
tablets commerce is predictedto reach $24 billion in 2013 and make up for more
than 9% of all online sales.
With all its growing clout, m-commerce is the rising star of the ecommerce world.
By understanding it and keeping tabs on where it's going, business owners put
themselves in the best position to take advantage of all m-commerce has to offer.
CONCLUSION:
Despite the fact that the survey prove to be non-conclusive, there still exist certain
points that were highlighted in this research. The potential and benefits of mobile

20. commerce may appear apparent to most of us, the route to mobile commerce
success in Singapore may not be so simple. Technical limitations of mobile phones
and wireless technology, business requirements, legal concerns becausethe
widespread use of mobile commerce to be difficult.
Firstly, there are the limitations of mobile devices. While mobile phones allow a
great extent of flexibility and mobility, they are unable to compare with personal
computers in certain aspect. The devices need to be small and handy, therefore
resulting in the small screen, low display resolution and awkward input keypad.
This mechanism hinder restrict the degree to which mobile devices can be design
to user friendliness. In addition, mobile devices have to compromise in terms of
memory capacity and battery life. The devices are unable to supportcomplicated
transactions and applications and hence, limit the use of mobile commerce in
intricate business environment.
Secondly, the issue of user trust is also into consideration. With each individual
transaction, the buyer and seller needs to be able to authenticate the other party in
order to ensure that the message received are as intended. Communicated content
needs to be kept confidential and transmitted to the correct recipient. Since the
mobile environment is susceptible to higher vulnerability, it is natural that users are
concerned about the security aspectof mobile commerce. Users want to be assured
that all the personal and bank information revealed during wireless mobile
commerce is secured. The mass adoption will not happen until users have utmost
confidence in the mobile commerce system.
Third, there is also the existence of various complicating and opposingprotocolin
today's mobile network industry. While the network operators in Europe and
Pacific Asian region use GSM, TDMA (Time-division multiple access) and
CDMA (Code-division multiple access)are more commonly used in the United
States. The differing standards lead to an incompatibility of mobile devices that
make it difficult for suppliers, distributors, retailers and customers to communicate.
Fourth, wireless communications are considered more exposed than wired
communications. Although encryption and security exist in most wireless data
networks to a certain level, the technology does not guarantee secured transmission
in the infrastructure of the network. Data can be lost, stolen or altered which give
rise to security challenges. Security is an important issue that needs to be
ascertained before it evolved to a larger aspect of daily life.
Fifth, there is the issue of compatibility among the differing web languages. The
presence of the wide range of incompatible standards further impedes the success

21. of creating smooth mobile commerce applications. For example, the latest mobile
phones encompass WAP and WML whereas condensed HMTL is used by NTT
DoCoMo's iMode.
Sixth, it is important that service provider and firms integrate seamlessly for
mobile commerce. Besides the ability to conductbusiness transactions from mobile
devices, the vendor must possessthe necessary resources be supporttheir
customers.
Lastly, legal concerns are also involved when implementing mobile commerce. It
is challenging, as it is not a simple process ofmere transferring traditional law to
mobile commerce environment. From the maintenance of privacy, defamation to
intellectual property protection and taxation, the mobile commerce places
substantial test on the legal system.
In conclusion, operators over time should be in a position to eliminate most of the
barriers to the adoption of upcoming mobile services. By simplifying tariff
structures and lowering prices they will make new services accessible to the broad
market. By improving the multimedia customer experience they will ensure that
services are compelling, and thus will drive usage and customer loyalty.
Assignment by nazish baloch