Changing Development Of Modern Wireless Communication Technology

Published Date: 02 Nov 2017

CHAPTER 1

1.0 Introduction

This chapter will cover an introduction on this research and provide an overview on research background, problem statement, research objectives, research questions, hypothesis and significant of study.

1.1 Research Background

The drastically changing development of modern wireless communication technology, coupled with the increasingly high usage of internet is promoting mobile shopping (MS) as a significant utility and application for both organizations and society in the digital world (Pascho, Sunderam, Varshney and Loader, 2002). The rapid development of popularity in mobile devices and acceptance of smartphones in recent years has attracted the attention of consumers. With the vigorous development of communication and advance technology, mobile shopping has become one of the critical consumer behaviour that practice by public.

With the accelerative competition of technologies and the increasing figure of using internet and wireless devices, therefore there is an important need to comprehend the factors that entice customers to practice mobile shopping. Understanding the importance of what determines the society in practicing mobile shopping can lead to more favorable strategies that make the organizations to remain rivalry.

The wider the connection of a business can bring to the target market, the higher possible sales they can make. By having this, maximize the benefits from the latest technology such as mobile devices that let society practices mobile shopping has brings to a step forward to a more advance country. Mobile Shopping brings many advantages that will benefits the society. These advantages include convenience, flexible accessibility and time efficient.

1.2 Problem Statement

Technological advancement especially in mobile devices which has attracted consumers have basically altered the way consumers shop for their belongings (Wong, Lee, Lim, Tan and Chua, 2012). Mobile shopping provides advantages such as convenience whereby consumers are not required to drive to shopping mall. Time saving and even the improvement of the quality of life eventually increases the number of mobile users.

According to Ant Ozok and Wei (2010), online shopping has no longer just restricted to desktop computers and even the wired connections. Apart from that, as the number of mobile users getting increase, this creates a new opportunity for dealers to increase revenue (Kuo and Yen, 2009).

Although m-shopping provides several added benefits to consumers, however, many of consumers do not fully make use of the mobile for shopping. For example in Malaysia, Malaysian Communication and Multimedia Commission (MCMC) (2010) found out that only 8.8 percent of consumers eventually made payments by using their mobile phones despite having more than 10,335,000 3G subscribers.

The main purpose of this research study is to figure out the theoretical foundation that influencing m-shopping adoption. With such a great number of mobile phone penetration, but the percentage of m-shopping adoption in Malaysia remains low and through this, formulating effective strategies are essential to increase m-shopping in Malaysia consumers.

1.3 Research objectives

The purpose of this research is to evaluate on how several variables such as innovativeness, compatibility, social influence can modify the influence of Technology Acceptance Model (TAM) variables on the adoption intention of mobile shopping.

1.3.1 General objective

Researchers are examining the impact of innovativeness, compatibility, social influence, TAM beliefs (ease of use and usefulness) on mobile shopping adoption in Malaysia.

1.3.2 Specific objectives

To determine whether there is significant relationship between innovativeness with the adoption of mobile shopping among mobile users in Malaysia.

To determine whether there is significant relationship between compatibility with the adoption of mobile shopping among mobile users in Malaysia.

To determine whether there is significant relationship between social influences with the adoption of mobile shopping among mobile users in Malaysia.

To determine whether there is significant relationship between perceived usefulness with the adoption of mobile shopping among mobile users in Malaysia.

To determine whether there is significant relationship between perceived ease of use with the adoption of mobile shopping among mobile users in Malaysia.

1.4 Research Questions

The research project is to identify several factors that affect the adoption of mobile shopping among mobile users in Malaysia. Several variables (innovativeness, compatibility, social influence) and TAM beliefs (ease of use and usefulness) are major factors of mobile users’ intention to adopt mobile shopping in Malaysia.

Is there any significant relationship between innovativeness with the adoption of mobile shopping among mobile users in Malaysia?

Is there any significant relationship between compatibility with the adoption of mobile shopping among mobile users in Malaysia?

Is the any significant relationship between social influences with adoption of mobile shopping among mobile users in Malaysia?

Is there any significant relationship between perceived usefulness with adoption of mobile shopping among mobile users in Malaysia?

Is there any significant relationship between perceived ease of use with adoption of mobile shopping among mobile users in Malaysia?

1.5 Hypotheses of the study

H1: There is a significant positive relationship between innovativeness and the intention to adopt the mobile shopping among mobile users in Malaysia.

H2: There is a significant positive relationship between compatibility and the intention to adopt the mobile shopping among mobile users in Malaysia.

H3: There is a significant positive relationship between social influences and the intention to adopt the mobile shopping among mobile users in Malaysia.

H4: There is a significant positive relationship between perceived usefulness and the intention to adopt the mobile shopping among mobile users in Malaysia.

H5: There is a significant positive relationship between perceived ease of use and the intention to adopt the mobile shopping among mobile users in Malaysia.

1.6 Significance of the study

The used of mobile phone have increasing rapidly over this few years in Malaysia. The factors of innovativeness, compatibility, social influences and TAM model are being examined that could lead to m-shopping. The further advancement of technology in mobile devices have enhanced m-shopping as a useful tool for consumers.

M-shopping allows consumers to shop anytime and anywhere without their physical presence in a particular store. Price comparison, purchase ordering and even paying are more convenience where mobiles services can have all the transition.

In this research, we mainly focus on three variables which is the innovativeness or degree of interest in trying a new concept, compatibility or in other word, the degree that past experiences, needs of potential adopters to which an innovation is perceived and social influences where family, relatives, friends play an important roles that can encourage consumers to adopt m-shopping.

TAM model is being used as the foundation model in relation to which the influence of three variables that mentioned above is evaluated.

1.7 Chapter Layout

This research consist a total of three chapters where a brief introductory of the researching topic will be discussed in the first chapter, and then followed by an elaboration of its relevant literature review in the next chapter. Next in the third chapter, a sample research method adopted by previous studies will be discussed as well as a reliable testing on its questionnaire. Chapter Four contains of data and sampling collection including statistics and charts which show the results of this study while Chapter Five is the windup of the overall research which has been conducted.

1.8 Conclusion

In this chapter, researchers discussed about the research background, problem statement, research objectives, research questions, hypothesis of the study, significance of the study and outline of the continuous chapter. In Chapter Two, literature review to support this research will be conducted.

Chapter 2

Literature Review

2.0 Introduction

Customers’ attention towards mobile devices & availability of smartphones has been increasing in recent years. Due to this rapid growth, M-shopping has placed mobile retailers at customers’ fingertips and nevertheless allowed mobile users to shop anytime, anywhere without leaving their houses (Megdadi and Nusair, 2011).

Thus, M-shopping enables consumer actively engaged and intend to make more purchases by offering convenience and also flexibility of mobile services. Many researchers in academy and even industry specialize have actively participated in this study as technology integration have become part of modern life and leads to economy changes (Kulviwat, Bruner and Al-Shuridah, 2009).

M-shopping has been viewed as one of highly potential growth in the current market (Chen and Yang, 2012). According to Ha and Stoel (2009), customers mostly integrate M-shopping quality, enjoyment and trust into the acceptance of M-shopping.

In this paper, three variables that being taken into study is innovativeness, compatibility, social influence and together with a TAM model on how those variables could eventually affect consumers to adopt M-shopping.

2.1 Review of Literature

2.1.1 Innovativeness

2.1.2 Compatibility

Recently, mobile technology has become widely spread in people’s daily activities, such as activity like education, work, and even entertainment. The experiences and values of people’s lives will be creating through the diffusion of mobile technology (Lu & Su, 2009)

Rogers’ study on innovation diffusion theory (as cited in Shi, 2011) is widely used to explain the acceptance of technology for IT and IS research, especially study in mobile setting. "Diffusion of Innovation theory defines as the process by which an innovation is communicated through certain channels over time among the members of a social system" (as cited in Shi, 2011, p. 25). Eastin’s study (as cited in Wu & Wang, 2003) said that compatibility is one of the attribute of Diffusion of Innovation theory which is the degree to which an innovation is consistent with the existing values, past experiences and needs of potential adopters. The high compatibility idea will be less uncertain to the potential adopters and hence compatibility will positively influence on the rate of adoption of mobile shopping among mobile users (Sendeka, 2006).

Previous experiences like using internet shopping or e-shopping can be measured as compatibility indicator. Study by Cheong and Park (as cited in Aldás-Manzano, Ruiz-Mafé, & Sanz-Blas, 2003, p. 742) also indicate that internet experience positively affecting consumer’s confidence about mobile shopping. According to Yang’s study (as cited in Aldás-Manzano et al., 2003), the consumers’ experience of adoption of technologies related to mobile commerce positively affects mobile shopping perceptions.

Nowadays, the use of mobile technology is common in everywhere. Some people will feel insecure without mobile phone. A high degree of uniformity between one’s values and one’s usage experience with mobile technology will lead to the adoption of mobile shopping (Lu & Su, 2009). According to Aldás-Manzano et al., 2009, the features of time saving, convenience, variety and range of assortment and lower prices provided by mobile shopping are exactly similar with e-shopping. Those consumers with e-shopping experiences have a stronger intention to adopt mobile shopping than those who have never experiences.

H2: Compatibility has a positive significant relationship with M-Shopping adoption.

2.1.3 Social Influence

Mobile shopping is mushrooming over the world and acts as an emerging and important part of mobile commerce. Mobile shopping is expected to reach 31 billion by 2016 (Forrester, 2011). This is due to the expectation on consumer use of mobile shopping will be rapidly increasing and the increase of public in purchasing smart phone as what that is happening right now. The adoption of mobile shopping service is taking a vital role for both investor and service providers to gain profit from this innovation. There is one of the factors that takes role to influence perceive of public on mobile shopping, which is social influence.

Social influence factors deeply impact the user behaviour. Some theories show that social influence is important in shaping the behaviour of each customer. Social influence acts as a factor that will influence one’s behaviour (Shin, 2007). From social psychological and economic perspectives, there are two types of social influence that have been distinguished. The first will be mass media and second is interpersonal influence. Mass media comprises of the category of radio, television, newspapers, internet and so on. Mass media takes an important role to influence the mindset of public. According to innovation diffusion research, one’s adoption decisions are mainly influence by social network if as compared to one’s decision making way and also characteristic of IT (Hsu & Lu, 2004; Kim, Kim & Eun, 2009). One’s who faces media most of the time will easily get influenced by what the messages that been sent out by the medias. When Medias are doing advertising on mobile shopping for particular company or website, it will indirectly influence the public and practising on mobile shopping.

The second type that has been distinguished is interpersonal influence. Interpersonal influence is derived from social network such as peers, colleagues, friends and family members. It is defined as the communication that takes place between two persons who have an established relationship, where in another words, the people are in some way "connected" (Bruner & Tagiuri, 1954). Research shows that the attitude of customer based on the person’s behavioural intentions. Different customers will have different way of perceiving their behavioural intentions. It is defined as a kind of believe, which will significantly influence someone in any activity (Chong, Darmawan, Ooi & Lee, 2010). It also shows that different behavioural intentions will influence the subjective norms of a single person.

From the research that been conducted by Kim et al. (2009), it shows that social influence has a positive relationship with behavioural intention in adopting mobile entertainment service, which is also part of mobile shopping. Family decision does play a crucial role in influencing the family member’s purchasing behaviour and decision (Jung & Kau, 2004). Peers and colleagues do also take part in affecting one’s concept in purchasing behaviour, including mobile shopping. Malaysia is a country which is a strong family based society and community cohesiveness has been powerfully prioritised over the individual rights in Malaysia (Sani, Yusof, Kasim & Omar, 2009). Thus, the interpersonal influence that falls under social influence would be important point to affect one’s in adopting mobile shopping. If one’s family, social group and community have already adopted to mobile shopping, it will easily influence the others in adopting it too.

H3: Social influence has a positive significant relationship with M-shopping adoption.

2.1.4 Technology Acceptance Model

The research model examining mobile shopping adoption is being supported by Technology Acceptance Model (TAM) that cover two perceptions, perceived usefulness (PU) and perceived ease of use (PEOU). TAM presence is derived in the Theory of Reasoned Action (TRA) that discusses the users’ intention with the determinants of intended behavior (Fishbein and Ajzens, 1975).

PU is being defined on how useful is the technology to which a person believes that using the technology enable them to enhance their job performance (Davis, 1989). A positive feeling towards mobile shopping adoption can be generated when the consumers perceive M-shopping services are beneficial enough to assist their shopping (Davis, Bagozzi, Warshaw, 1992). In mobile setting, PEOU refers to the degree where effort is not needed when using an innovative technology (Davis, 1989). User’s intention to adopt technology innovation either directly or indirectly have the influence of PEOU towards consumers (Davis, 1989; Taylor and Todd, 1995; Venkatesh, 1999; Venkatesh and Davis, 2000).

Prior studies of TAM have being applied in several consumer technology adoption studies such as M-Commerce (Zhang, Zhu and Liu, 2012), M-Learning (Sim, Tan, Ooi and Phusavat, 2012), M-Banking (Cheah, Teo, Sim, Oon and Tan, 2011) and broadband adoption (Sim, Tan, Ooi and Lee, 2011). Wong et al. (2012) also applied TAM to determine user adoption of M-Shopping and the result proved that TAM model (PU and PEOU) significantly affect customer to adopt M-Shopping. Since then, TAM model has been validated as a robust and powerful framework for understanding the user’s adoption of technology (Hu and Stoel, 2009).

H4: PU has a positive significant relationship with M-Shopping adoption.

H5: PEOU has a positive significant relationship with M-Shopping adoption.

2.2 Conceptual Framework

Social Influence

Compatibility

Innovativeness

Perceived Usefulness

H1 H2 H3

Intention to use H4

Perceived Ease of Use

H5

CHAPTER 3

Research Methodology

3.0 Introduction

3.1 Research Design

This research is basically focuses on quantitative research. Quantitative research eventually generates numerical data that can be converted into statistical review or numerical form of analysis (Coville, 2011).

Quantitative data is mostly collected through questionnaire or even survey (Garwood, 2006). Questions that being measured by scales are being used to measure the consumers satisfaction, feeling or any other essential determinants. Therefore, quantitative research is often used to obtain a statistically review of respondents.

3.2 Data Collection Methods

3.2.1 Primary Data

Primary data is the data collection where a researcher has limited supporting data in secondary sources (Duval, 2005). In the process of conducting this research, a questionnaire survey was used to collect the primary data.

Questionnaire is a set of questions given to the selected respondents to collect data and information that could help in this research. Questionnaire is also known as self-administered survey where the researchers compile the answers from the respondents in order to know how the respondents behave in this research.

3.2.2 Secondary Data

Secondary data research project involves the gathering of existing journals or data that other researchers had originally collected through past research. Literature review, industrial surveys, statistic data and others are those examples of secondary data (Forshaw, 2000).

Published literature such as journals, magazines, and books are useful for researchers. Journals provide reliable data, theories, empirical studies that could be used as a guideline for this study. Magazines that related to this topic can be references to researchers to gather secondary data in their research.

Unpublished literature for example, World Wide Web (www) is a new source of secondary data that consist of wide range of information. This new media is less costly and time-saving where researchers can easily surf on it.

3.3 Sampling Design

3.3.1 Target Population

In order to further understand the antecedents that lead to the intention to adopt M-Shopping, a study was conducted. The respondent for this study is students that currently attached in University Tunku Abdul Rahman (UTAR), Kampar. This study decides to adopt university students as a sample due to several reasons. Firstly, young consumers are more likely into this technology compared to older consumers (Schadler, 2006). Secondly, younger consumers have better positive attitude on internet experience and even online shopping (Farag, Schwanen, Dijst and Faber, 2007). Thirdly, according to Burns (2005), college students are being labeled as heavy users of mobile phones. As a result, university students can be the representative for this study.

3.3.2 Sampling Technique

For this study, the researchers applied non-probability sampling to generate result. Non-probability sampling can represents a group of sampling techniques that basically assist researchers to select units from a number of populations.

The procedure of probability sampling that researchers used is convenience sampling. This is because convenience sample is the easiest to access where the units that being selected is simple. The researchers can achieve the targeted sample size in a relatively fast and cost saving method.

3.3.3 Sampling Size

The target sample size for the survey was actually aimed for full respond from UTAR, Kampar students but predicted that the rate of reply will not be as what researchers expected. The targeted sample for this research was aimed at 150 respondents.

3.4 Survey Instruments

The questionnaire is designed based on five variables, namely Innovativeness, Compatibility, Social Influence, Perceived Usefulness and Perceived Ease of Use. The independent variables were adopted from previous researchers that had done study on this topic as tabulated in Table 1.

The questionnaire was categorized into two sections, Section A and B. Section A contains eight general information questions whereas in Section B, Five-point Likert scale being used with ‘1’ as strongly disagree to ‘5’ as strongly agree which consists of four to six questions in each variables.

Table 1: Questionnaires Sources

Constructs

Number of Items

Sources

Innovativeness

4

Wong et al. (2012)

Compatibility

5

Wong et al. (2012), Aldaz-Manzano et al. (2009)

Social Influence

6

Wong et al. (2012)

Perceived Usefulness

5

Aldaz-Manzano et al. (2009), Wong et al. (2012)

Perceived Ease of Use

5

Aldaz-Manzano et al. (2009), Wong et al. (2012)