Mobile commerce: An analysis of key success factors.

Abstract

The number of global mobile phone owners in 2003 reached 1.3 billion (Kumar, 2004) with the highest rates of growth occurring in China (Minomo and Masamura, 2004). According to the Nielsen Media Research survey (“Hong Kong mobile phone,” 2006), the highest mobile phone penetration rate was found in Hong Kong (96%), followed by South Korea (93%), the UK (92%), Singapore (89%), and Australia (87%). The U.S. market for mobile phones includes 185 million users (Smith, 2005) and is predicted to reach 75% of the population, or about 236 million users, by 2010 (Wallace, 2005). The dramatic increase in mobile phone usage has produced a new avenue for marketing applications and services (Tsang et al., 2004). Mobile commerce (m-commerce) is “the involvement of the delivery of products and services via wireless technologies to enable e-commerce activities at any time and location.” (Yeo and Huang, 2003). It consists of business and consumer transactions that use mobile phones and can be recognized as a complement to e-commerce (Kumar, 2004). The global m-commerce revenues are expected to increase to 88 billion dollars by 2009 (Mort and Drennan, 2004). The future of m-commerce has great potential as the mobile phone market remains a great untapped marketing medium (Jackson, 2004). To succeed with m-commerce, however, it is critical for marketers to understand the characteristics of mobile users and their perceptions of m-commerce. Little is known about what drives consumers to use m-commerce, and how retailers can optimize consumers’ mobile experiences. To that end, this research examines key success factors of m-commerce

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