The increase in
\nmobile sales is no disbelief, as the sustained increase in smartphone use
\nthrough the U.S. According to the Pew Research Center, 95% of U.S. grownups own
\nmobile phones and 77% of them are smartphones. Improved access to both smart
\ndevices and Wi-Fi are facilitating the swing to mobile shopping.<\/p>\n
There are many diverse explanations and descriptions of what M-Commerce is<\/a>. Lehman (1995) describes M-Commerce as \u201cthe use of mobile hand-held devices to communicate, inform, transact and entertain using text and data via connection to public and private networks.\u201d This is a very broad description as mobile technology has continued to grow and its capabilities have been developed and continue to develop furiously. Haddon (1997) supports this broad view by defining M-commerce as \u201ca financial transaction specifically purchasing and selling\u201d<\/p>\n M-Commerce According to CBRE, from 2013 to 2017 M-commerce sales grew 276% and they are expected by 2021 to grow another 170%. This growth is expected to bring m-commerce sales beyond those of computer sales and account for approximately 54% of online retail sales by 2021.<\/p>\n Combined with changes in consumer From advertising and social media According to Latitude1 surveyed smartphone users in both America PWC (2018) Enterprise Guide to Gaining Business Moreover, Camponovo (2002) highlights that Overall there are many uncertainties in the m-commere sector<\/a> as in what technologies will have a transformative influence, and what technologies are just hype? This is a normal for emerging industries. As a consequence retailers must try a variety of strategic approaches as well as continually revaluating and repositioning themselves in order to be in the most competitive position possible. <\/p>\n Michael Moeser, Javelin payments practice eMarketer\u2019s Richard \u201cRetailers Millennial Recent study According to David Eads (2011) a survey found that 90% of Whether it\u2019s in the travel, healthcare, retail or the Because of MIDs, customers have come There are many opportunities in mobile technology however as Jonas Haertfelder et al (2016) state there are Piotrowicz et al (2014) also highlight the organizational Another challenge retailers have is the buying process Furthermore, it is important to get the balance of Ovum This will not only occur in the A study by Consumers can According to Statista, in 2017 there were around 2.31 billion smartphones connected to the Web; this number is still growing and in 2020 it will probably reach almost 3.0 billion. Google predicts PWAs are the future of mobile and we think they can also be the future of mobile commerce, solving its most problematic pain points. PWAs combine the best things from the mobile and web approaches – Mobile web reach which is 3 times higher than on Apps. It is way easier to launch an internet browser and look for info, a product you need, etc., than to download a particular app, install it, launch it, and so on. This technology is still pretty new and rather in the early stages of development, but some huge e-commerce players have already benefit from it. For example, AliExpress increased conversion rate for new users by 104% with their new PWAs.The airline industry is taking a page from smartphone and computer hardware makers, by dabbling in facial recognition technology<\/a> to speed up the convenience factor for customers. Recently, Delta Air Lines was the first to launch a biometric terminal in the U.S. for international flights<\/a> at its Atlanta hub. Passengers can choose to check-in with the optional technology to speed up the process. <\/p>\n What E-Commerce services are provided by M-Commerce?<\/p>\n The increase in
\nincludes many new innovative apps that have become possible simply due to the
\nadvances in technology. These apps include mobile financial services \u2013 checking
\naccount balance\/info, money transfer etc. Travel – online reservation,
\ntimetables, Airline\/train tickets. Entertainment (games) News\/information. Event
\nticket booking (telephone and online booking).These are all examples of
\nE-commerce services that have the capability to be carried out using mobile
\ndevices.<\/p>\nDiscuss the role of M-Commerce in retailing.<\/h4>\n
\nshopping habits technology and retailers\u2019 investments in mobile channels they
\nare contributing significantly to m-commerce growth.<\/p>\n
\nto mobile-friendly websites and apps, retailers are investing in strategies to
\nreach consumers via their phones. Although the consumer demand is driving
\ninvestments data is another main for encouragement pushing mobile commerce. By
\nimplementing attractive loyalty plans and apps, consumers are sharing a data
\nabout their shopping behaviours. Thus facilitating retailers with an improved
\nand enhanced understanding of their customers and the ability to adapt offers
\nand products to individual customers.<\/p>\n
\nStrategy& survey, over half (54%) of consumers like online loyalty
\npromotions that provide points and offers which allow consumers to have access
\nacross all channels both instore and online. An example of this kind of scheme
\nis represented by Amazon who offer their customers a subscription option to
\n\u2018Amazon Prime\u2019. This promotion offers consumers free next day delivery and
\ndiscounts on products all for $79 dollars a year. Last year\u2019s figures showed a
\nsign up of over 2million people with a growth annually of 24%. A statistic that
\nAmazon have released is that a subscriber spends on average 130% more than
\nnon-subscribers and new members spend a total of $900 which is an increase from
\n$400 . <\/p>\n
\nand the UK, which resulted in over 60% of consumers once they received an email
\nor a text message from a retailer they were more inclined to buy from that
\nbrand. Furthermore, \u2018try on\u2019 virtual simulations, digital content, sample
\nvideos and product info interested 79% of shoppers<\/p>\n
\nstress \u2018Give customers a
\nnew, enjoyable, rewarding, novel, and inventive channel in which to purchase
\nyour products and increase their loyalty.\u2019 Resulting in m-commerce becoming
\nsecond nature and part a normal and expected part of the retailing experience.\u2019<\/p>\nWhy is M-Commerce such a fragmented market?<\/h4>\n
\nValue from Mobile Technologies a book by Adam Kornak\u2019s expresses mobility as
\n\u2018business transactions and data access at any time from any device, anywhere
\nusing wireless technology.\u2019Kornak (Pp. 4-5) (2004)<\/p>\n
\nDeloitte stress in mobile \u2018one size does not fit all. Retailers should take
\nsteps to understand their customers and how they shop within specific product
\ncategories.\u2019 Retailers have the ability to shape and use the technology to enhance
\ntheir shopping experience.<\/p>\n
\nm-commerce is a very promising and an emerging industry, however highlights that \u2018due to
\ntechnology continuously changing the m-commerce industry is complex and a very
\nuncertain environment. Futhermore, Camponovo
\n(2002) paper on m-commerce business models highlights that many big players in
\nthe industry are still experimenting with a variety of technologies and
\nbusiness models with the long term view of trying to implement a profitable and
\nsustainable position.<\/p>\nWhy do retailers spend much of their IT budget on M-Commerce?<\/h4>\n
\ndirector stated \u201cMobile is the growth engine of digital commerce.\u201d In the US a
\nsurvey by Javelin predicted that the market share of purchases by smart devices
\nwill grow to $319 billion by 2020 from $122 billion in 2015.<\/p>\n
\nnumbers suggest, a huge amount of sales are being missed out by retailers. They
\nindicated that many retailers websites are not mobile friendly\/accessible. According
\nto eMarketers consumers are influenced up to One-third more by searching for
\nadditional information on products via smart\/mobile device<\/p>\n
\nLowe, CEO, BT Expedite highlighted recently that huge retailers are investing
\nin technology and have set aside up to \u201cMany retailers are struggling to keep
\npace with the rapidly changing requirements of multichannel operations with
\nlegacy systems slowing them down. Replacing these systems is vital for gaining
\ncompetitive advantage.\u201d<\/p>\n
\nneed to focus on their mobile apps, mobile marketing and facilitating the
\nomnichannel buying experience,\u201d Mr. Moeser said. \u201cConsumers are more willing
\nthan ever to receive mobile marketing messages from retailers and willing to
\nact upon them.\u201d<\/p>\n
\nshoppers aged 25-34 from a recent study show they are the top and largest users
\nin the mobile commerce area. With this in mind it is important for retailers to
\nstreamline their services and offer a user friendly experience across multiple
\nservices. With the statistic of 87% of 25-34 year olds have at least purchased
\na product online this highlights the shift and the importance of integrating
\ntechnology.<\/p>\n
\nshows that the largest share of mobile commerce will come from millennial
\nshoppers, as the top users of mcommerce shopping are individuals aged 25 to 34.
\nEighty-seven percent of that demographic has purchased something online in the
\npast month, showcasing the importance for retailers to offer streamlined
\ncheckout options.<\/p>\nDiscuss the impact of M-Commerce on competition among retailers.<\/h4>\n
\nretailers believe that mobile commerce is already impacting shopping activities
\nand that shoppers are gradually demanding a seamless mobile shopping
\nexperience, with over 60% of shoppers choices being mobile influenced for
\ninstore purchases, with 40% using mobile apps to make shopping decisions and
\n37% using a combination of the two.These statistics illustrate the barriers
\nretailers are facing that are stopping them from introducing end-to-end mobile
\ncommerce strategies.<\/p>\n
\nfinancial industries, the key challenge for businesses to overcome when
\nadopting a complete mobile strategy is the rising level of mobile
\nfragmentation. Ley Valentin, C.
\n(2017) highlights when we look at the best brands in retail the best
\ncustomers and the best retailers success is an experience that is
\nconsistent across all mediums and platforms. There is an extraordinary
\nlevel of competition in the mobile marketplace with numerous crucial companies
\npersistently developing new technologies, shoppers have never had so many
\noptions.<\/p>\n
\nto expect a flexible and seamless experience across different channels, whether
\nat their local store or on the social web, whether mobile or at a computer, and
\nwhether online or offline (Fulgoni, 2014). <\/p>\nWhat are the difficulties in managing mobile technology?<\/h4>\n
\nmany challenges as well. Piotrowicz et al (2014) highlight the development of
\nsocial media and in what way it has brought the social network into the store.
\nFrom sharing prodcuts, experience, product prices pictures, opinions and
\nthoughts. Spaid et al (2014) discuss how customers can post their opinion
\nregarding a sales assistant they have come in contact with or post and share a
\ncomment regarding their satisfaction or dissatisfaction of the store. This as
\nPiotrowicz et al (2014) highlight is a problem and challenge for retailers as
\nthey have no direct influence on any social network.<\/p>\n
\nchallenges that can occur trying to update and maintain multiple technology
\nchannels. Fulgoni (2014) develop on this point by discussing that even if a
\nretailer provides different channels, usually there are different people and
\ndifferent departments highlighting the lack of integration within
\norganizations. Zhang et al, (2010) emphasize the need for retailers to optimize
\nand strive to achieve efficiency across channels. <\/p>\n
\nbetween channels. Brynjolfsson et al, (2013) mention the \u2018showroom\u2019 phenomenon
\nwhich invites customers to the store for the physical \u201ctouch and see\u201d but the
\npurchasing process of the product is online. Verhoef et al., (2015) underline
\nthat retailers are in a tricky position as Peltola et al, (2015) stress
\ncustomers do not separate the different channels, they are all one and the
\ndifferent channels in a customer\u2019s journey are only continuing to increase.<\/p>\n
\nchannels correct. A study from 2000 that\u2019s has been cited found that the more payment
\noptions, frequently leads to a reduction in sales and consumer satisfaction. An
\nexample is the variety of mobile payments. Several mobile wallets are
\nunavailable in all geographic positions while shoppers in some sites favour one
\npayment choice over another. A real life example is in the Netherlands, 70-80% of individuals use iDeal, a payment
\nsystem which isn\u2019t used in many other locations or very few. If you don\u2019t have iDeal in Holland, the Dutch
\nwon\u2019t buy from you. Overall with technology there is always the need for
\nconstant optimization to ensure the customer has a fast and simple experience.<\/p>\nWhat is the future for M-Commerce?<\/h4>\n
\npredicts by 2026 that a quick and efficient experience will be critical to a
\nretailers’ success whatever the channel whether that be mobile or desktop.
\nOverall this means that the customer will have the ability to buy a product or
\nservice instantaneously and have the ability to see when it\u2019s on its way to
\ntheir home. Amazon and Ebay are already driving the market towards this \u2018same
\nor next day delivery\u2019 mentality which is raising customers\u2019 expectations. <\/p>\n
\nretail sector but across all sectors. AI and Data analysis is predicted to play
\na huge part in m-commerce and shoppers future experience as they demand and expect
\ntheir experience to be more related to their lives. Recommendations and product
\nproposals will become vital for retailers, merging social media activity and prior
\nsearches to mould and adapt the experience to that individual, whether in the
\nphysical store or online via multiple devices. <\/p>\n
\neMarketer reports that social networks users favour messenger apps (54.4%) to
\nget in contact with the retailer as opposed to phone calls email, and
\ntraditional discussion (46.6%). H&M and Starbucks are already brands that
\nhave already implemented technology like chatbots and messaging services and
\nthis will continue to grow throughout the different brands and sectors.The bot
\ntechnology is still in its emerging period however Verhoef, P et al (2015)
\nstate there is enormous potential for this technology in the mcommerce market.<\/p>\n
\nanticipate Augmented reality (AR) to exhibit how outfits will appear on them
\nbefore they choose to purchase. From makeup and household furniture, this
\ntechnology could form the divide between virtual and he real world. Currently,
\nreturn of goods has always been a problem for retailers however AR could
\neliminate this as shoppers will have the opportunity to \u2018try before they buy.\u2019<\/p>\nBibliography <\/h2>\n
\n
\nmobile sales is no disbelief, as the sustained increase in smartphone use
\nthrough the U.S. According to the Pew Research Center<\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-14640","post","type-post","status-publish","format-standard","hentry","category-essaysecommerce"],"yoast_head":"\n