Effect of word of mouth on m-payment service adoption: a developing country case study

Tazizur Rahman · Mijin Noh · Yang Sok Kim · Choong Kwon Lee

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Technology Adoption and User Behaviour Consumer Behavior and Marketing Influence Health, Technology, Consumer Behavior

Abstract

This study determines influential factors that account for mobile payment service adoption in a developing country and assesses the mediating effect of word of mouth on this platform. Our model combines multi-dimensions of trust and risk, and word of mouth to predict the target population’s use intention and use behavior. We use the structural equation modeling method to analyze the data collected by an online survey of 392 respondents who use mobile payment services in Bangladesh. This study’s results reveal that trust in service providers, trust in service, privacy risk, and security risk have significant impacts on the intention to use. The findings also indicate that word of mouth mediates the direct impacts of trust in service providers, trust in apps, and security risk on the intention to use. In addition, importance-performance map analysis depicts that word of mouth is the most critical performing factor, but performance is comparatively low.

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References

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