Factors Influencing Users Adoption Of Mobile Commerce

Published Date: 02 Nov 2017

Abstract: Being one of the newest technology trend today and

in Nigeria the Central Bank is trying to explore mobile

commerce technology in making Nigeria a cashless economy

as much as possible. Mobile commerce can be defined as the

promotion, buying, and selling of goods and services

through electronic data communication networks that

interface with wireless (or mobile) devices [14]. This paper

review literatures that establishes the factors that influences

users adoption of mobile commerce, we then further

investigates how Literacy and Income level context of Nigeria

affects this factors.

Based on reviewed literatures we employed the Technology

Acceptance Model (TAM), [5] and its refinement, TAM2,

[48]. We introduced the Literacy Level and Income Level as

an external variable in our research model.

A questionnaire that captures users perception of mobile

commerce was distributed in a structured survey and data

were captured in MSQL database. We analyzed this data

using Duncan�s Multiple Range Test and Analysis of

Variance (ANOVA) using MATLAB. Conclusion and

recommendations were made based on the output of our

analysis.

Key words: Literacy Level, Income Level, Mobile commerce,

Technology Acceptance Model (TAM).

I. INTRODUCTION

Mobile-commerce or M-Commerce is the promotion, buying,

and selling of goods and services through electronic data

communication networks that interface with wireless (or

mobile) devices [20]. [34] Defined mobile commerce 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�. Mobile phone penetration is

currently at a global average of 80%, with many developed

countries already above 100%. While this statistics is

interesting in its own right, it becomes even more as an

indicator when the characteristics of today�s mobile phones

are considered [18]. The expansion of mobile phone users

and the improved functionality of the various mobile devices

(like high-resolution color screens to present pin-point

information, simple icon-menu, touch-pad, and artificialintelligence-

based natural languages) have given many

organizations a new opportunities and new ways to conduct

their business for competitive advantages. It is reasonable to

say that most of today�s mobile phones can be considered as

true mobile computing devices, even though their use is still

primarily for telephony. M-Commerce transaction can be

categorized in to two: �There is a distinction between

business-to-business (B2B) and business-to-consumers (B2C).

M-commerce has been recognized as a key driving force of

next generation computing and industry analysts have

predicted revenue growth arising from M-commerce to far

exceed US$27 billions by the end of this decade. Moving

business online solves a number of problems such as:

geographical fragmentation inefficient labour and information

interaction. The primary goal is that people who are scattered

all over the world can do business with ease and at minimum

cost using their mobile devices [2].

Application areas of M-Commerce include: M-payment, MInventory

management, M-Distance education, M-Workplace,

M-Auction, M-Audit, M-Telemedicine, M-Advertisement, MAgriculture,

M-Police, M-Banking, M-Library, M-Shopping,

M-Reservation, M-Government and so on.

In many research works on Mobile-commerce, security issues

have been identified as the major hindrances to the adoption of

mobile-commerce by users.

Carsten et al.,

(http://netgroup.uniroma2.it/Stefano_Salsano/papers/salsan

o-sim-spt-enabler.pdf), argues that the future success of the

WEB, mobile services depends on the service being simple to

find, simple to use, simple to trust, and simple to set-up. Their

research was mainly to address the specification and

implementation of mobile services that are �simple to trust�,

The GSM (Global System for Mobile Communication)

network being widely used around the world has been

perceived by the business community as an opportunity for

new ways to enhance their productivity and add value to their

existing infrastructure. Manzur et al., (2007) proposed in

their paper a simple SIM-based authentication protocol for

electronic transactions using the mobile phones. Emphasizing

security risk as the most important problem needed to be

solved to pave the way for general adoption of mobilecommerce.

INVESTIGATING INCOME AND LITERACY LEVELS AS FACTORS INFLUENCING USERS

ADOPTION OF MOBILE COMMERCE IN NIGERIA

Akinola S.O Phd, Adeniran A.

Computer Science Department, University of Ibadan, Nigeria.

Email: [email protected]

Physics Department, The Polytechnic Ibadan, Nigeria.

Email: [email protected]

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 2

Ayo et al., (2004) in their work designed a framework for Mcommerce

Implementation in Nigeria, pointing the security

challenges in terms of transparency and confidentiality of

transactions. They proposed a core implementation

consideration in order to guarantee high level security [3].

Adeyemi, (2011), in his report on Realizing the full potential

of mobile commerce in Nigeria, he identified the need for

infrastructural upgrade, legislations among others.

Mobile commerce can improve and widen the market reach of

enterprises, cut down on cost and give customers better

service. Users can benefit from m-commerce by the

convenience that m-commerce provide to them and

organization of personal data. High value purchase, such as

land, houses and cars will be more convenient in the future

[36]. Rashad and Mohamed (2011), also stresses the issues

that concern m-commerce in terms of security and privacy. In

all the reviewed research works on M-commerce, security has

been discussed as the major concern to m-commerce.

Nigeria being a populous country and a large market for any

new technology and innovation, this research work aimed at

investigating the effect of; Literacy levels and Income-levels

among Nigerian mobile device users towards the adoption of

Mobile-Commerce in Nigeria.

Ease of use, security risk and financial risk are factors that

will affect the adoption of Mobile-commerce in any country

(established from literature), but this work will provide an

understanding of the depth or magnitude of this effect across

the varying income and literacy segments of Nigerian

populace on the intention to use or adopt mobile-commerce. A

clear understanding of these factors will enable mobilecommerce

service providers to develop suitable marketing

strategies, business models, processes, awareness programs

and pilot project.

This research examines the factors influencing the adoption of

mobile-commerce and the depth of impact across different

income and literacy levels among Nigerians.

II. RESEARCH PROBLEM

In other for mobile-commerce service providers to effectively

provide mobile-commerce services that will be generally

accepted by user across all of the categories of users described

in section above, there is a need for proper understanding of

population�s behavioural pattern in the context of their income

and literacy level. There are basic questions which need to be

answered: what are the factors influencing the adoption of

mobile-commerce in users in each of the categories? Do users

at the different categories behave differently toward mobilecommerce?

Do the users perceive risk of security, cost, and

ease of use of mobile commerce differently? Do they have

sufficient knowledge about mobile-commerce service provider,

services and products to trust them?.

Many researches have been done towards this direction and

factors like Perceived usefulness, Perceived ease of use,

Perceived compatibility, perceived cost, Perceived reliability

and Perceived Trust has been established through literatures.

However, little has been done about how those perceptions,

emotions and pleasures are created at the service and end-user

level. As in most research work on mobile-commerce,

technological requirements are elaborated and specified

without further discussion of these important end-user issues.

In most research works, the generalized study has been made

of the issues of adoption of mobile-commerce by users, much

work has not been done to investigate the reaction and the

effect of the identified issues of user at different economical

and literacy levels.

This study will contribute to the research by assessing the

relevance and effects of the various identified influential

factors in mobile-commerce at different economical and

literacy levels of Nigerians. This study will consider the

factors that has been established by literatures and imposes

the Literacy and Income level factor as external variable in

our model determining which factor will poses the greater

impact on users� adoption of mobile commerce in Nigeria.

III. RESEARCH SCOPE

This research was conducted in Nigeria and our survey was

distributed at Lagos, Ibadan, and Ado-Ekiti. The survey was a

structured survey which allowed us to cover the targeted

categories of the population; that is, the Illiterates, Literates,

High and Low income earners representing the diverse

distribution of Nigerian population and with respect to our

research objective.

IV. MOTIVATION

The primary purpose of this report is to investigate the factors

likely to influence the adoption of mobile commerce in

Nigeria, with special focus in the Income and literacy level of

users and prospective users.

This research will contribute to the expected success of the

cashless policy of the central bank of Nigeria, in that it will

bring an understanding of users and prospective users

behaviour with regards to the adoption of the policy and

services. Identifying the differences between comparable

categories of interest.

It also contributes to active academic research and add to the

understanding of the technological needs of advancing the

exploration of mobile-commerce opportunities in Nigeria, the

knowledge to meet the specific user category needs and

development of mobile commerce service which will enjoy

adoption that cut across economic and literacy levels of the

populace.

V. RELATED WORKS

Per et al., 2002 in his selected review on Mobile end-user

adoption studies, identifies the complexity of service models

used in developing end-user services in third generation mobile

telephone (3G) networks and establishes technological,

business strategies and behavioural requirements as needs to

obtain widespread adoption of these services. These

requirements are behavioural, and will vary according to endusers,

context and roles. To understand these requirements,

analyses of the context specific behavior of end-users should

be conducted [14]. Because mobile end-user adoption is

studied by researchers of different traditions, a simple way to

categorize perspectives may be by research area or tradition

[24]. However, our review indicates that researchers often use

the methodology of one tradition when applying the theoretical

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 3

perspectives of another [14]. Instead, different �schools of

thought� may be identified. In these schools of thoughts

researchers of different areas agree on a set of relevant

theories, methodologies, levels and purposes of research. Not

surprisingly, these three schools of thought correspond to the

three traditional schools found in studies of the adoption and

use of technology in general: The diffusion, adoption and

domestication schools of thought [14].

Adoption researchers typically describe and explain the

adoption decision of individual end-users applying different

individual and social theories of decision making, but three

models stands out as the most widely applied � the technology

acceptance model (TAM) originally proposed by Davis

(1989), the theory of reasoned action (TRA) originally

proposed by Fishbein and Ajzen (1975), and the extension of

TRA into a theory of planned behaviour (TPB) originally

proposed by Ajzen (1985) [14]. Most of the projects studying

the end-user in telecommunication services have taken a

sociological perspective. [14]. Per et al., (2002) used

traditional sociology frameworks to describe users by their

demographic and social characteristics or by the usage in

public and private spaces, or how access to services

represents social and symbolic capital.

Keng and Zixing, (2003), Presented and overview of mobile

commerce development by examining the enabling

technologies, the impact of mobile commerce on the business

world, the implications to mobile commerce providers and

provides an agenda for future research in the area. The

essence of mobile commerce revolves around the idea of

reaching customers suppliers and employees regardless of

where they are located. Mobile commerce is about delivering

the right information to the right place at the right time. It

gives users the ability to access the internet from any location

at any time, the capability to pinpoint an individual mobile

terminal user�s location, the functionality to access

information at the point of need, and a need-based

data/information update capability [10].

Keng and Zixing, (2003), identified Ubiquity, Reachability,

Localization, Personalization, and Dissemination as features

of Mobile-commerce not available to traditional e-commerce.

Ubiquity, that users can get any information that they are

interested in, whenever they want regardless of their location,

through internet-enabled mobile devices, [10]. .

Reachability; enable business entities to reach customers

anywhere anytime. With a mobile terminal, on the other hand,

a user can be in touch with and available for other people

anywhere anytime, [10].

Localization, with location information available, many

location-based applications can be provided. For example,

with the knowledge of the user�s location, the mobile service

will quickly alert him/her when his or her friend or colleague

is nearby. It will also help the user locate the nearest

restaurant or ATM, [10].

Personalization, an enormous number of information,

services, and applications are currently available on the

Internet, and the relevance of information users receive is of

great importance. Since owners of mobile devices often

require different sets of applications and services, mobile

commerce applications can be personalized to represent

information or provide service in ways appropriate to a

specific user, [10].

Dissemination, some wireless infrastructures support

simultaneous delivery of data to all mobile users within a

specific geographical region. This functionality offers an

efficient means to disseminate information to a large consumer

population.

Keng and Zixing, (2003), concludes with the believe that

mobile devices will continue to develop and incorporate

additional functionality in the coming years and that the end

result will be a global marketplace of mobile commerce. With

success story of Japan and the acceptance of simple mobile

data service in Europe, Keng and Zixing, (2003) submits that

evolution of wireless technologies and the coming mobile

revolution will bring dramatic and fundamental changes to

business strategies, enterprise resource planning, supply

chains, and customer relations. In their conclusion, Keng and

Zixing, (2003) acknowledges the newness of mobilecommerce

but indicates the revolutionary impact the

technology will make on everyday life and the provision of

important data in real time to assist decision makers, exert

great influence on the ways business communicate and

develop relationships with consumers, and ultimately

transform the way we do business.

Very closely related to this research paper is the work of

Khumbula, (2010), where the Factors influencing the

adoption of mobile banking services at the Bottom of the

Pyramid in South Africa. The research identified Perceived

usefulness, Perceived ease of use, Perceived cost,

Customer�s trust as factors that influences the adoption of

mobile baking for users at the bottom of the pyramid. Bottom

of the pyramid was defined as user with low income in the

society.

This research paper goes further from the work of Khumbula,

(2010) by including the Literacy and Income context of

prospective user of mobile commerce. We investigated the

impact of the Literacy Level and Income Level of users on the

established independent influential factors of mobilecommerce

adoption.

VI. RESEARCH MODEL

Our research model is a modified Technology Acceptance

Model. We have included in the model Literacy and Income

Level of users as external variables as shown in figure 1

bellow.

VII. UNIT ANALYSIS OF RESEARCH

A sample unit is a single element or a group of elements

subject to selection in the sample. A unit of analysis in our

research is mobile phone owners in Nigeria, the covers a

spread over (High and Low income earner) and (Literates and

Illiterates).

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 4

Figure 1: The research model with hypotheses based on TAM2 with External variables: users� Literacy level and users�

income level.

VIII. SAMPLING AND SAMPLE SIZE

The basic idea of sampling is that by selecting some of the

elements in a population, conclusions can be drawn about the

entire population. In this study, by selecting samples of mobile

users that cover the entire literacy and income level of

Nigerians, conclusion will be drawn about the adoption of

people based on the literacy and income levels. Works have

been carried out to determine required number of sample

group to represent the universe. To determine the sample size,

in 2

2 . .

d

n ? Z p q equation, Z = 1.96 corresponding to 0.05

significance level, the sensitivity (d) = 0.05 and the values of p

and q taken 0.5, the sample size was calculated 384. However,

to increase reliability, 451 questionnaires were applied.

The sampling method is non-probability; unit of the sample

are chosen on the basis of personal judgment. For this

research work we took respondent samples that cover the

south western Nigeria. For the purpose of our research the

administration of the questionnaire was structured not

random, we intentionally targeted respondents that will vary

and cover our study scope i.e.

Group 1 � Illiterates

Group 2 � Literates

Group 3 - Low income earners

Group 4 � High income earners

IX. DATA COLLECTION

A paper based survey questionnaire was prepared and

distributed to the intended population, in Ibadan, Lagos and

Ado-ekiti of Nigeria.

About 58% of the respondents were based in Ibadan, 23% in

Lagos and 19% based in Ado-ekiti.

The operational definition or measurement of Literacy was at

the deposition of the administrator of the questionnaire, a

respondent will be considered illiterate if all the information in

the questionnaire has to be interpreted into vernacular before

he/she can respond and his response will the interpreted back

and transmitted into our questionnaire by the help of the

administrator. Literates are those respondents that can read

and understand the questionnaire by themselves and only ask

questions where they need technical clarifications.

High/moderate income earner are those that earn above N25,

000, this will accommodate Nigeria�s context. If the level is

higher than this most of the respondents would have been

categorized as Low income earners.

X. THE QUESTIONNAIRE

The survey questionnaire consisted of two parts. The first

section focused on the respondent�s demographic information.

The demographic variables included: gender, age, level of

education, income level, prior experience of mobile or ecommerce.

To verify the respondents Income level category,

respondents were requested to indicate their monthly income

category in order to categorize them to either Low income

earners or High/moderate income earners.

The second section asked each of the respondent�s perceptions

of the statement based on the independent variables of our

research model using the 5-point Likert scale from 1(�strongly

disagree�) to 5(�Strongly agree�).

The questionnaire aimed at identifying whether the

independent variables were statistically significant factors

influencing the adoption of mobile commerce and if it does,

can we observe any significant difference in their mean

between the comparable categories of our research.

XI. DATA ANALYSIS

Descriptive statistical (such as mean and frequencies) analysis

was conducted on the demographic data. The data collected

from the returned questionnaires were captured into msql

database using phpMyadmin. This is to allow us to query and

Trust

Perceived cost

Adoption

Intention

Actual

Usage

External Variables

Users�

Literacy level

Users�

Income Level

Perceived

Reliability

Perceived

ease of use

Perceived

Usefulness

Perceived

Compatibility

H1

H2

H3

H4

H5

H6

BI

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 5

select a portion of the data for a particular analysis. We

import any selected portion of the data into excel spreadsheet

using .csv file format, all statistical analysis are done using

Matlab. The data were sorted to group questions according to

applicable constructs under test.

Analysis of variance (ANOVA) was used when statistical

differences in the means of more than two groups or

population are to be compared [49]. In this study the

respondents were categorized into four groups; Illiterates,

Literate, High/moderate and Low income earners. The first

two groups i.e. the Literates and the Illiterates; we depended

on the judgment of the administrator on the questionnaire who

will indicate on the questionnaire by just signing IL whenever

he/she judges the particular respondents to be illiterate. We

did not use the educational level earlier intended to use in

categorizing the respondents into these two groups this is in

response to our findings during the pre-test phase of the

questionnaire administration.

To categorize the respondents into High income and Low

income earners there is a question in the demographic part of

the questionnaire where the respondents will indicate his or

her income level, we agreed that any income level >= 2 (i.e

between N25000 and N150000) will be judge High/Moderate

to accommodate Nigerian income earning context.

ANOVA was used to compare the means of the four groups to

test for statistical significance difference at 0.05 level.

Discriminate analysis was used to determine which

independent variables were the best predictors of the

dependent variable�s outcome at each of the group. A various

combination of independent variables, which included:

Perceived usefulness, perceived ease of use, perceived

compatibility, perceived cost, perceived reliability of

supporting industries, perceived trust was tested to establish

the best combination of predictors.

Construct Code Item Hypothesis

Perceive usefulness PU1

PU2

PU3

PU4

PU5

Using mobile commerce will help me in

accomplishing my tasks more quickly.

Using mobile commerce will improve my job

performance.

Using mobile commerce in my job would

increase my productivity

Using mobile commerce would enhance my

effectiveness on the job.

Using m-commerce services would save me

time.

H1

Percieved ease of use PEOU1

PEOU2

PEOU3

PEOU4

I think that learning to use an m-commerce

system, on my mobile phone would be easy

I think I would find it easy to get an mcommerce

system to do what I want it to do

I think that interacting with an m-commerce

system with my mobile phone would not

require a lot of mental effort

I think that it would not be difficult to conduct

business with mobile phone

H2

Percieved PCM1 M-commerce is compatible with most aspects H3

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 6

compatibility

PCM2

PCM3

PCM4

of my work

Using m-commerce services would not require

a change in the way I do business

Using m-commerce services would not change

my work habits

M-commerce is similar to most things I have

done before.

Percieved cost PC1

PC2

PC3

Using m-commerce services would not require

a change in the way I do business

I think access cost in a form of mobile

network charges for sending/receiving

communication traffic (including SMS or

data) would be affordable

I think transactional cost in the form of

charges for m-commerce services would not be

expensive

H4

Perceived Reliability

of Supporting

Industries

PR1

PR2

PR3

PR4

M-commerce services may perform well

because service provider�s network and

internet services are good.

M-commerce services may perform well

because service provider will provide

adequate support for other services

M-commerce services may perform well

because service provider have helpful

customer service representatives

M-commerce services may not perform well

because service provider is open and receptive

to customers

H5

Perceived Trust PT 1

PT2

PT3

Mobile network providers are trustworthy

I believe other m-commerce supporting

agencies like banks, mobile money agents etc.,

will be trustworthy

I believe the provider�s m-commerce wireless

infrastructure can be trusted

H6

Behavioural intention BI1

BI2

I intend to use m-commerce services in

transacting business with customers and

business associates

I intend to accept mobile payments from

customers.

H7

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 7

XII. LIMITATION

Mobile-commerce, being a very new concept in Nigeria,

respondents that are categorized has having a prior experience

of it are once that have been using e-commerce of any form.

This necessitated the explanation and concept behind the

technology for almost every respondent especially those

categorized as illiterates.

The survey questionnaire was in English only, the

administrators were to translate and explain to respondents

who can not read English. We realize some respondents might

have pretended to understand English language. This could

have led to misinterpretation and misunderstanding on the

content of various questions, especially for the illiterate

population.

XIII. SAMPLE SIZE AND RESPONSE RATE

Approximately 500 questionnaire ware prepared and

circulated. A total of 464 responses were received. Of these,

(13) responses had to be discarded due to invalid or

incomplete data entries. Thus the sample comprising of a total

of 451 respondents was used for analysis. This exceeded the

minimum required sample size of 306 to achieve a 95%

confidence level for a population greater that 500,000. [49].

The usable response rate amounted 97.2% which is

satisfactory. From the received questionnaire feedback, some

meaningful results were found and documented.

XIV. DEMOGRAPHIC CHARACTERISTICS

This section outlines the findings on the demographic

characteristics of the sample, which includes the age range,

gender, education level, income level, literacy level and mobile

phone ownership of respondents.

4.1.1 Demographics � Age and Gender

Table 4.1 Age Representation Table

Age Range Frequency Percentage

Under 20 14 3.10%

20-29 119 26.39%

30-39 244 54.10%

Above 40 74 16.41%

The interpretation of these result is that, the highest

percentage of respondents are between 30-39 years (54.1%),

the second largest age group was between 20-29 years

(26.39%), the third largest group was above 40 years

(16.41%), and the last group was below 20 years (3.10%).

The standard deviation of the age distribution was computed

with code; �std(Age)� and found to be 0.73.

When combining two age group, the two age groups, the

group between 20-39 contributed 80.49% of the respondents,

which represents the majority portion of the working

population of Nigeria.

Figure 2: Pie chart of Age representation in our survey.

Table 4.2 shows a fair split between male and female

respondents, with males showing a slightly dominant

percentage (52.3%).

Table 4.2: Gender representation table

Gender Frequency Percentage

Male 236 52.3%

Female 215 47.6%

Demographics � Education level, Literacy Level and

Income level

Table 4.3: Education level table

Education Level Frequency Percentage

No formal Education 156 34.5%

Primary 54 11.97%

Vocational Training/Secondary 104 23.06%

Polytechnic/University/Masters 137 30.38%

Table 4.4: Literacy Category Table

Literacy

Category

Frequency Percentage

Literates 242 53.6%

Illiterates 209 46.34%

Table 4.5: Income Level Table

Income Level Frequency Percentage

less than N25000 164 36.36%

Betwn N25000 and

150000

134 29%

150000 and

1000000

149 33.04%

Above 1000000 4 0.89%

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 8

Figure 3: Bar Chart representing Income Level.

Demographics: Possession of Mobile Phone/Device

We included this question in the demographic stage of the

questionnaire because we consider only users of mobile phone

or mobile device as a prospective adopters or adopters of

mobile commerce. In our survey 100% of the respondents are

in possession of mobile phone/device. Therefore the entire

respondent can be counted as prospective adopters of mobile

commerce.

XV. DESCRIPTIVE ANALYSIS OF RESULT

Categorizing respondents into our research target groups

Research Groups

1. Illiterates

2. Literates

3. High/Moderate Income earners

4. Low Income Earners

Definitions:

Respondents are categorized as Literates or Illiterates based

on the judgment of the administrators of the questionnaire, we

have defined illiterates as respondents who are not able to read

and understand the questionnaire without translating and

reading it to them in vernacular and when administrator meets

such respondent they are to write IL on the questionnaire

when completed. While Literates are those that are able to

read and understand the questionnaire by themselves and ask

reasonable questions if the need be.

High/moderate income earners are those that earn above

N25000/months, this may be a little low but to accommodate

Nigeria peculiar situation, someone earning above

N25000/month in Nigeria may considered okay. We should

note that these groups can be interwoven; an illiterate may

High/Moderate income earner or Low income earners and the

same for literate respondent.

Table 5.1: Literacy Category Table

Group Frequency Percentage

Illiterates 242 53.66%

Literates 209 46.34%

Table 5.2: Income Level Category Table

Group Frequency Percentage

Low Income

earners

164 36.36%

High/moderate

incomer earners

287 63.64

When grouping into Literacy category approximately 53.66%

of the respondents are Illiterate while 46.34% are Literates.

The distribution shows a fair split between the two groups.

In the incomer level categorization, the High/moderate income

earners are dominant among the respondents with a percentage

of 63.64%, while the Low income earners make up 36.36%.

XVI. PERCEIVED USEFULNESS

Perception of usefulness of mobile commerce in the research

context was not based on actual utilization but on the

understanding of the functionality of the technology and

imagine how it will apply to the individual respondent with the

intention to use the technology. Table 5.7 shows that Literates

has the higher mean (3.9) approximately (4) on perceived

Usefulness construct, which means the Literates perceived

mobile commerce useful, the difference between the mean of

the High/income earners and the low income earners if less

than 0.05 significant levels, and the mean can be

approximated as (4), this means that income level those not

necessarily affect the perception of usefulness of mobile

commerce. In contrary there is significant difference in the

mean of the Illiterates compared to the Literates; this is above

0.05 significance level. The Illiterates has the lowest mean of

(3.23) approximately (3) which mean they are not sure if

mobile commerce is useful to them or not.

The results of the Duncan�s Multiple Range test showed that

there is significant difference between the Means of Illiterate

and the Literate groups at 0.05level.. But below 0.05 level

between the High income earners and low income earners.

Table 5.3: Duncan�s Multiple Range Test: Perceived

usefulness (PU)

Perceived Ease of Use (PEOU)

Table 5.8 shows that the literate respondents are �not sure� if

mobile technology is will be easy for them to use. While the

Literates are approximately towards �agreeing� (4) with

standard deviation from the mean at 0.57.

Grouping Frequency

of samples

Mean Standard

Deviation

Illiterates 209 3.23 0.77

Literates 242 3.92 0.45

Low

income

earners

164 3.58 0.79

High

Income

earners

287 3.61 0.65

Income Level Representation

0

20

40

60

80

100

120

140

160

180

less than N25000 Betwn N25000 and

150000

150000 and

1000000

Above 1000000

Series1

Series2

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 9

The low income respondents are more towards �not sure

also� but the standard deviation of 0.72 the high value is

suspected to be due to the Literates but low income earners,

who might have �agreed� that mobile technology will be easy

for them to use.

The High income earners are also more towards �agree� and

the standard deviation also 0.62 also higher than 0.57 of the

literates, therefore we can also suspect that illiterates but High

income earners might affect the lower mean of the High

income earners.

In summary, the table show also that the Literacy level of

respondents affect the perception of ease of use of mobile

difference in mean of 0.43 of illiterates and Literates

compared with the mean difference of 0.12 of the Low

incomer earners and High income earners.

Table 5.4: Duncan�s Multiple Range Test: Perceived Ease of

Use (PEOU)

Perceived Compatibility

Shown by the table 5.9, the literates, low income earners and

higher income earners can be said to have chosen �not sure�

for the perception of compatibility of mobile commerce. The

Illiterates can be approximated to have disagreed that mobile

commerce is compatible to their activities. The difference in

the mean between the Illiterates and Literates is higher, above

0.05level, while this is not so between High and Low income

earners.

Table 5.5: Duncan�s Multiple Range Test: Perceived

Compatibility

Grouping Frequency

of samples

Mean Standard

deviation

Illiterates 209 2.48 0.99

Literates 242 3.21 0.70

Low Income

earners

164 2.78 1.05

High Income

earners

287 2.93 0.84

Perceived Cost

Table 5.10, shows a significant difference in the mean of the

two comparable groups (i.e. Illiterates and Literates, Low

income earner and High Income earners). High income earners

have the highest mean, with low standard deviation and a high

difference in mean compared with the Low income earners. It can

be deduced in the table that Income level may affect user cost

perception of mobile commerce more intensively than Literacy

level.

Table 5.6: Duncan�s Multiple Range Test: Perceived Cost

Perceived Reliability of supporting industries

In table 5.11, it can be deduced that the mean of all the groups

can be approximated to (3) that is, �not sure� about the

Reliability of supporting industries.

Table 5.7: Duncan�s Multiple Range Test: Perceived

Reliability

Perceived Trust

With the table 5.12, the response is within �disagree� and �not

sure�, towards their perception of trust of mobile commerce.

The standard deviation is noticed to be a little high within each

group, showing low level of agreement within the groups

Literates and Illiterates. The difference between the Low

income earners and High incomer earners is not that much.

Table 5.8: Duncan�s Multiple Range Test: Perceived Trust

Group Frequency

of Samples

Mean Standard

Deviation

Illiterates 209 2.45 1.09

Literates 242 2.70 0.85

Low

Income

earners

164 2.63 1.07

High

Income

earners

287 2.56 0.91

Behavioural Intention

Table 5.12 shows that the mean intention to use mobile

commerce is significantly different between the Literates and

Grouping Frequency

of samples

Mean Standard

Deviation

Illiterates 209 3.33 0.71

Literates 242 3.77 0.57

Low income

earners

164 3.49 0.72

High Income

earners

287 3.61 0.62

Group Frequency

of

Samples

Mean Standard

Deviation

Illiterates 209 3.33 0.64

Literates 242 3.71 0.53

Low Income

earners

164 2.98 0.51

High

Income

earners

287 3.85 0.41

Group Frequency

of Samples

Mean Standard

Deviation

Illiterates 209 2.80 0.61

Literates 242 2.95 0.64

Low

Income

earners

164 3.14 0.64

High

Income

earners

287 2.73 0.55

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 10

the Illiterates. The difference between the Low income earners

and High incomer earners is not that much.

Table 5.9: Duncan�s Multiple Range Test: Behavioural

Intention

Group Frequency

of Samples

Mean Standard

Deviation

Illiterates 209 3.05 0.87

Literates 242 3.60 0.73

Low

Income

earners

164 3.31 0.99

High

Income

earners

287 3.37 0.74

XVII. ANALYSIS OF VARIANCE BETWEEN

COMPARABLE GROUPS OF THE RESEARCH.

Analysis of variance ANOVA is used to compare the means

of perception between the comparable groups of our research;

two columns of data are generated in a matrix, where each

column represents the perception of the groups to be

compared. The function in Matlab (i.e. p = anova1(X), X

being the matrix generated) returns the p value.

If p is near zero, it suggest that one sample mean is

significantly different than the other sample means with

common significant levels at 0.05.

The anova1 function in MATLAB displays two figure, the

standard ANOVA table and a box plot of the columns of the

matrix X.

The standard ANOVA table divides the variability of the data

into two parts:

- Variability due to the difference among the column

means (variability between groups).

- Variability due to the difference between the data in

each column and the column mean (variability within

groups).

The standard ANOVA table has six columns:

1. The source of the variability

2. The sun of squares (SS) due to each source.

3. The degrees of freedom(df) associated with each

source.

4. The mean squares (MS) for each source, which is the

ration SS/df.

5. The F-statistics, which is the ration of the mean

squares.

6. The p value, which is derived from F.

Analysis of variance (ANOVA) Results

The table 5.13 below shows the ANOVA results of all the

main constructs within the context of our comparable division

of respondents (i.e. Illiterates and Literates, High and Low

Income earners).

The F value represents the obtained F value (F1,449),

meaning the obtained F value with 1 degree of freedom in the

numerator and 449 degrees of freedom in the denominator. Pr

is the probability of obtained F value greater than the critical

value at the 0.05 level. When the Pr value is less than 0.05, it

implies there is significant difference between the Means of

the two comparable groups.

ANOVA Results: Perceived usefulness

(a) Literacy Level context:

The obtained F value of perceived usefulness is 138.56 and

the Pr is 0 (Table 5.13). This means that there is a significant

difference between the Means at 5% level. This implies that

there is a main effect for perceived usefulness between the

Literate and the Illiterate for the adoption of mobile

commerce. Hence the research hypothesis HI: perceived

usefulness (PU) is likely to differently influence the literates

and illiterates towards the adoption of mobile commerce.

(b) Income Level context:

The obtained F value of perceived usefulness is 0.13 and Pr is

0.7235 (Table 5.13). This means that this no significant

difference between Means at 5% level. This implies there is

not main effect of Perceived usefulness between the High

income and Low income earners. Hence the hypothesis H1:

Perceived usefulness is not likely to impose a different

influence towards mobile commerce between different income

levels.

ANOVA Results of Perceived Ease of Use

Literacy level context:

The obtained F value of Perceived Ease of Use is 51.74 and

Pr is very low 2.667x10-12 (Table 5.13). This means that there

is a significant difference between Means at 5% level. This

implies that there is a main effect for Ease of use between

Literate and Illiterate to adoption of mobile commerce. Hence,

the research hypothesis H4: The perceived ease of use is

likely to have different influential effect on Literates and

Illiterates towards the adoption of mobile commerce.

Income Level context:

The obtained F value of Perceived ease of use is 2.91 and Pr

is 0.0887, this is above the 0.05 significant levels. The means

that Perception of ease of use may not influence variation in

the intention to adopt mobile commerce between the High

income earners and the low income earners.

ANOVA Result of Perceived Compatibility

Literacy level context:

The obtained F value of Perceived Compatibility is 82.67 and

the Pr is 0. This shows a significant difference between the

perception of the Literates and the Illiterates, towards the

compatibility of mobile commerce, and thus may be an

influential factor to adoption of mobile commerce.

Income level context:

The obtained F value of Perceived Compatibility is 3.27 and

the Pr is 0.0714. This indicates that income level does not

influence the compatibility perception of mobile commerce.

There is no significant difference between the mean of

response of the High income earners and Low income earners

at 0.05 levels.

ANOVA result of Perceived Cost

Literacy level context:

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 11

The obtained F value of perceived cost is 46.42 and the Pr is

3.0735x10-11, this is very low and close to 0. Thus indicates

and significant difference and 0.05 level. Meaning that the

cost perception of the literates is different from that of the

illiterates toward mobile commerce and this might influence

there intention to adopt mobile commerce.

Income level context:

The obtained F value is perceived cost is 399.15 and the Pr is

0. This result is a strong signal that income level separates

cost perception of mobile commerce and that the high income

earners and low income earners perceived the cost of mobile

commerce differently and might influence there intention to

adopt the technology.

ANOVA result of perceived reliability

Literacy level context:

Obtained F value is 6.82 and the Pr is 0.0093. Shows a

significant difference in the perceived reliability of the two

literacy categories.

Income level context:

Obtained F value is 53.05 and the Pr is 1.4726x10-12.

Indicates a significant difference in the perceived reliability

between income level categories.

ANOVA result of perceived trust

Literacy level context:

Obtained F value is 7.01 and the Pr is 0.0084. Shows a

significant difference in the perceived trust of mobile

commerce for the two literacy categories.

Income level context:

Obtained F value is 0.66 and the Pr is 0.4159. Indicates a

slight difference in the perceived trust of mobile commerce

between income level categories.

ANOVA result of behavioural intention

Literacy level context:

Obtained F value is 54.2 and the Pr is 8.70748x10-13. Indicate

a large difference in the intention to adopt mobile commerce

between the illiterates and the literates.

Income level context:

Obtained F value is 0.49 and the Pr is 0.4849. There is no

significant difference in the behavioural intention of the High

income earners and the low income earners to towards

adoption of mobile commerce at 0.05 significant levels.

XVIII. RESEARCH FINDINGS

Judging from the above summary of result, Perceived

usefulness, Perceived ease of use, Perceived compatibility,

Perceived trust may be accepted as factors that influence

mobile commerce adoption. All these factors has a significant

difference between the literacy level groups and the

behavioural intension between these groups also have a

significant difference at 0.05 level. These constructs also do

not have significant difference for the Income level groups

thus complement the lack significant difference in their

behavioural intention.

We can conclude that though these factors may influence the

adoption of mobile commerce but the variation in perception

is not significant between users at different income level.

We have rejected perceived cost and perceived reliability

because though they show a significant difference comparing

respondents at different income level, the difference does not

induce a significant difference comparing the behavioural

intention of the respondents at these groups. Thus we may

conclude that the respondents� perception of these construct

does not really influence the intention to adopt mobile

commerce. This conclusion may also be applied to respondent

grouped into different literacy level. We can explain this with

the logic bellow:

If A?D then: A.A?D.D and A.A? D.D

If A.A?D.D or A.A?D.D the A? D

If independent variable A determines dependent variable D,

significant difference in independent variable A between two

groups must cause a significant difference in the dependent

variable D between the two groups, if the significant

difference in independent variable A between the groups does

not result in a significant difference in the dependent variable

D between then, then A does not determine or influence D.

Literatures has established these factors as influential

variables to the adoption of mobile commerce, but our

research further look into external factors that affects the

factors themselves.

Comparing our work with that of Khumbula Masinge 2010.

He investigates the factors influencing the adoption of mobile

banking services at the bottom of the Pyramid in South Africa.

He defined the Bottom of the Pyramid as a population with little

disposable income. In the conclusion of his research the following

hypothesis were supported as likely influential factors to mobile

banking adoption at the BOP: Perceived usefulness, Perceived ease

of use, Perceived cost Perceived trust. The research did not support

Perceived risk. The research does not look into the influential

factors at the other side of the its scope, that is, the population at

the Top Of the Pyramid.

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 12

SUMMARY OF ANOVA RESULT

Our research shows that Income divide may not affect the

factor that influences mobile commerce adoption as

Literacy divide will. If the scope of the research has been

extended to comparing the influential factors at the Top of

the Pyramid with that of the Bottom of the Pyramid, it

might not be any significant difference in the two as

established by our research. Our research established that

Literacy divide is more significant toward the adoption of

mobile commerce.

Therefore the conclusion can be summarized in the table 7.1

below

Construct Research conclusion

Perceive usefulness Accepted

Perceived ease of use Accepted

Perceived compatibility Accepted

Perceived cost Rejected

Perceived reliability Rejected

Perceived trust Accepted

XIX. RECOMMENDATION

Perceived cost and perceived reliability has a significant

difference between respondents at different �income level�

but does in induce a significant difference in the behavioural

intension to the two groups. However, it will be necessary

to look at the effect of cost and reliability on a broader

scale. Possibly there could be a better understanding of the

reasons why the respondents that perceived mobile

commerce costly or unreliable might still intend to adopt the

technology.

The effect of demographic variables such as age and gender

on adoption of mobile commerce was not explored. Some

demographic variables may have indirect interrelation

effects between the variable.

The CIA World Fact book January 9, 2012, established that

68% of the total population of Nigeria is Literate, 75.7% of

male are Literate and 60.6% of female are literate. They

defined Literacy age �age 15 and over can read and write�.

This figure shows that 32% of the populations are illiterate.

For a mobile commerce operator to achieve a remarkable

success in Nigeria, those factors

that influence the adoption of mobile commerce between

literacy divide prospective user should be vividly put into

consideration. The system should be design in such a way

that will bring about a positive perception of those factors

from both the Literates and the Illiterates. The system must

be design to provide values for both the Literates and the

Illiterates. If it does that, the research established that the

High and the Low income earners will adopt the technology.

XX. CONCLUSION

This research contributes to the information technology

acceptance research. It successfully modified and applied

the TAM2 in mobile commerce at between the Literacy

divide and the Income divide of Nigerian population, in a

very different context from prior studies by comparing the

factors within the comparable groups and discorver which

divide really have differentiate perception towards the

technology.

The Technology is new and just being established in

Nigeria, the research provides information on the

requirement of the mobile commerce operator system, so as

to attract and provide values to large customers so as to

gain substantial market share.

This study successfully identified which one of the Literacy

divide or Income divide really induces a significant

difference in the established factors influencing the adoption

of mobile commerce.

LITERACY LEVEL INCOME LEVEL

External variables (basis of our group divisions)

Independent Variables Df1 Df2 F Pr>F Df1 Df2 F Pr>F

Perceived usefulness 1 449 138.56 0 1 449 0.13 0.7235

Perceived ease of use 1 449 51.74 2.667x10-12 1 449 2.91 0.0887

Perceived compatibility 1 449 82.67 0 1 449 3.27 0.0714

Perceived cost 1 449 46.42 3.0735e-011 1 449 399.15 0

Perceived reliability 1 449 6.82 0.0093 1 449 53.05 1.4726e-012

Perceived Trust 1 449 7.01 0.0084 1 449 0.66 0.4159

Behavioural intenstion 1 449 54.2 8.70748e-013 1 449 0.49 0.4849

Investigating Income and Literacy Level as factors influencing users adoption of mobile commerce in Nigeria. 13