Introduction
Wireless communication networks are experiencing an unprecedented growth in the business arena. Mobile commerce (m-commerce) refers to the direct and ancillary transactions that are carried out using wireless communication devices. There are various sociocultural, economic, technological and business factors that have influenced the development of m-commerce.
Technological Factors
The concept of m-commerce is highly dependent upon technological innovations and applications. Innovations in the cell phone industry, including the Smartphone have created a demand for mobile applications such as games, ringtones and document reading software.
For instance, one of the reasons explaining the realization of m-commerce in Japan and certain sections of Europe is the early introduction of third generation technology which is a standard platform for wireless networking. 3G protocols sustain elevated rates of data flow that is vital for certain applications that require high bandwidth.
Service-oriented architecture (SOA) has allowed different applications to communicate with each other efficiently. Integration between mobile applications and several sources and feeds in delivering value to clients is integral to the development of m-commerce. Technological trends such as cloud computing, SOA and other web services have also played an integral role in the development of mobile commerce.
Social Factors
The development and success of mobile commerce applications are extensively reliant on the cultural and social perspectives of target customers. One social factor to consider is subjective norm. A customer’s subjective norm is reliant on the individual perception of what certain significant social referents prefer. These referents determine the individual’s adoption of certain behavior. For instance, peers can directly or indirectly encourage a person to shop online or stream a movie.
Subjective norm also shapes the ease a person experiences when encountering m-commerce applications. If a social group views certain mobile applications as difficult to manipulate, more of its members are likely to be reluctant to adopt the technology. Therefore, cultures that restrain or encourage the use of technology influence the development, adoption and success of m-commerce within those societies.
Business Factors
Strategic management requires that organizations tailor their business strategies according to technological advancements in order to obtain and maintain competitive advantage. This includes staying in touch with the changing trends in consumer behavior and engineering technological applications to attract and retain customers. The demand by consumers to obtain small, efficient and reliable wireless technology has driven businesses to come up with applications that match the lifestyles of consumers.
Business-to-consumer (B2C) companies advance m-commerce as a platform that allow customers to order and pay for goods wirelessly. This links businesses directly with consumers and reduces the extra costs of distributors. The more services provided by businesses on the m-commerce platform the more likely customers are to adopt the technology.
Economic Factors
One of the main advantages of m-commerce is the ease it offers in carrying out transactions at any time in any place. Though the concept of m-commerce has registered considerable success in certain economies like Japan, its adoption in the United States and Australia has been constrained and slow. The difference in the adoption of m-commerce between the United States and Japan can be attributed to the cost of handheld devices in the two economies.
Perceived cost is essential in the establishment and success of m-commerce applications. If customers feel that the services offered on the m-commerce platform are unnecessarily expensive, they may be reluctant to adopt the technology. The cost factor can either advance or inhibit the growth of m-commerce. Generally cost includes the price of the mobile device, service fee, upgrade costs, and the cost of maintenance and upgrade. These costs are reliant on the overall economic trends and the cost of labor.
Conclusion
M-commerce is certainly a good business platform for businesses and consumers. The growth of this platform has been largely reliant on social, technological, business and economic trends. Therefore, further success in m-commerce must take into consideration these as outlined in this paper.