Effect of Technology Innovations on Customer Buying Behavior
Chapter One
Research Objectives
The main objective of the study is to evaluate the effect of technology on consumer buying behavior. The specific objectives are to;
- To determine the consumers’ perception of the technological trend of Apple products.
- To find out if the technological environments influence consumer buying behavior
- To evaluate the influence of Apple products’ uniqueness on consumer buying behavior
CHAPTER TWO
LITERATURE REVIEW
Theoretical Framework
This section reviews the major theoretical framework applicable to the study and understanding of the effects of technological innovations on buying behavior. The theory that guided the study was Task Technology Fit Theory proposed by Goodhue and Thompson (1995) as explained below;
Task Technology Fit (TTF) Theory
Task Technology Fit (TTF) Theory was developed by Goodhue and Thompson (1995). It states that it is probable to have an affirmative influence on individual development that can be of help if the capabilities of Information Communication and Technology (ICT) match the responsibilities that the user must conform to. According to Goodhue and Thompson (1995) the factors that determine task-technology fit as; valuable, locatability, consent, and compatibility, ease of use or training, production timeliness, systems reliability and association with users. The theory is important in providing a leeway of other related theories related to information technology, this is achieved through analysis of diverse computerized systems which includes electronic commerce systems. According to the theory, the success of dependability of an information scheme is linked to the fit between task and technology, in which accomplishment is related to individual growth (Goodhue and Thompson, 1995) as well as the performance of a large assembly (Zigurs and Buckland, 1998).
A precise model of task technology fit for group support systems was developed by Zigurs and Buckland, (1998). The model was later improved and tested by Zigurs, Buckland, Connolly and Wilson, (1999), they completed the necessities of the group support systems to robust the group tasks. The task fit technology theory is shown to be relevant in mobile information systems but still has a lot of concern in its applicability (Gebauer and Shaw, 2004). The model upholds a link between commerce and information systems. It is therefore viewed important in the explanation and prediction for success of information systems (Goodhue and Thompson, 1995; Zigurs and Buckland, 1998). According to Dishaw and Strong (1999), task technology fit theory has a significant positive link with computerized systems and their growth depend on individual performance and group performance (Zigurs et al., 1999). The ideology of the theory seeks to assist in classifying aspects that can support business ideas and thus enhance the development of technological innovations (Junglas and Watson, 2006). Such developing innovations are portrayed in mobile technology which has tremendously supported the mobile workforce (Barnes, 2003). The application of the model on mobile information systems has however became clear in past studies which have mainly focused on the functionality of the technology has provided and little attention has been focused on the context in which the technology has been applied (Perry, O‟Hara, Sellen, Brown, and Harper, 2001). Usability studies similarly advocate that the use-context may have a huge consequence on the circumstances of task-technology fit (Perry et al., 2001). According to Gebauer and Ginsburg, Turel, (2006), non-functional characteristics are first observed, these include weight, size and play, and they are seen as the most vital role in a mobile than in a non-mobile scenario. Then, as commercial tasks are done separately in both mobile and non-mobile cases, important features may shift (Gebauer and Shaw 2004; Perry et al., 2001; Zheng and Yuan, 2007). It is for that reason that it is necessary remarkable business changes and associated technology necessities, for the accessibility and applicability of task-technology fit model and to carefully determine the needs for theory adjustment and build up (Junglas and Watson, 2006; Lyytinen and Yoo, 2002).
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
Miller and Yang (2008) and Kothari (2004) describe a research design as the arrangement of conditions for collection and examination of data in a fashion that targets to syndicate relevance to the study purpose with economy in process. According to Orodho (2013), it is a system, framework or strategy of action which assists in generating solutions to research problems. The present research employed a descriptive survey design. Orodho (2003) and Kothari (2004) describe a descriptive survey design as a design that seeks to portray precisely the characteristics of groups that are the managers and customers.
Target Population
Population is group of individuals, cases or objects with some common seen features that differentiate it from other populations. The target population is that which the study used to conclude the results of the study. According to Apple Inc customer care records, Apple Inc receive at least one hundred and fifty customers a day. Therefore, for the purpose of this study, the researcher targeted a population of 483000 customers in Apple Inc in Lagos which have adopted technological innovations in their products. The study collected data from these Apple in respect of use of technology innovations in buying behavior.
CHAPTER FOUR
DATA ANALYSIS, FINDINGS AND INTERPRETATION
Demographic Data of the Respondents
Demographic data of the respondents was sought to provide information about the gender of respondents, age of the respondents, Level of education and length of stay as customers in the bank as shown in table 4.1
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary of the findings
The following are the major findings of the study as per the objectives:
Apple pay and Buying behavior
The first objective sought to establish the effect of Apple pay on buying behavior among Apple Inc in Lagos, the study indicated that Apple pay was positively and significantly associated with buying behavior. the study further showed that Apple pay services are more efficient, hence improved quality of services which maintains buying behavior, Apple pay is more secure, therefore increased customer confidence which enhances buying behavior when asked whether Apple pay is comfortable and flexible to use, further on whether there is increased level of economic activities by the use of mobile, also on if the customers would feel secure sending sensitive bank information across Apple pay the and lastly when asked whether customers could can make transactions in wherever they are the results were, This implies that majority of the respondents agreed that Apple pay is efficient in ensuring buying behavior as majority of the responses lied between a mean scores of 3.5 to 4.8 on the continuous Likert.
These findings correspond that of Groennfeld (2014) who indicated that financial industries receive the awareness for requirement of mobility solutions, there are new opportunities, for both Apple and consumers. Smart phones e converting financial existence around the world get paid, make payments, ship cash to family, research agricultural or fish charges before taking their goods to nearby markets, determine where to position their savings, compare economic offerings carriers, manipulate their budgets and store for the future. Apple pay‟s tremendous development challenges traditional banking with a reduction of income, information loss about the turnover of their customers as well as lower margins as competition between those with expensive branch networks compete and all-electronic providers with few overheads continue to grow.
Further Adam, (2011) noted that, apps include moven which links a debit card to a mobile so clients can track those small expenses. Because loans can now be obtained through the smart phone, it has led to reduction or elimination of paperwork and this is evident in Apple in Korea. Lastly Baum &Korn, (2010) indicated that imaging has also made a major bearing on finance with innovations. Users will also be able to make an image of a credit card or bank statement and shop around for better rates with little or no typing.
Apple watch and Buying behavior
The second objective sought to find out the effect of apple watch on buying behavior among Apple Inc in Lagos. The study indicated that apple watch was positively and significantly related to Buying behavior it further indicated that, most of the respondents strongly agreed that the apple watch of Apple Inc is safe and secure having a mean of. The respondents also agreed that the easy access gives sufficient promises to its customers on their responses. Respondents were in agreement that it is easy to read texts through apple watch lastly the respondent agreed that there is a lot of customer support in Apple Inc‟ online website This implied that most of the respondents agreed that they apple watch since their responses were between mean scores of 3.5 and 4.8 on the continuous Likert scale.
These findings are consistent to that of Scot (2014), who indicated that apple watch provides consumers with expedient technique of conducting bank business from the comfort and security of their personal computer at their own homes. This means that consumers can check account balances any time at their convinience. Apple watch has totally changed the face of transactional business and has affected commerce across various trades and industries. Frei and Kalakota (1998) also indicated that unlimited access enables the consumers with the convenience conducting commerce on weekends and holidays when Apple are conventionally closed.
Buying behavior
On the effects of technological innovations on buying behavior the study findings indicated that most of the respondents were of the opinion that there is high rate of Word of Mouth recommendations, they also agreed that customer attitude has encouraged increased repurchase of products and services, further the respondent agreed that there is continuous repeat Purchasing of products/services from customers and lastly the respondents agreed that there is less switching behaviour, intentions and actions with the introduction of technological innovations This implies that important instrument for expanding a marketing strategy which is effective to financial institutions
This finding is consistent to other findings such as by Oliver, (1999) who indicated that buying behavior is a customer‟s continued commitment to a product, service or a brand offered in a particular organization. Also Lam, Shankar and Murthy (2004) noted that it is a commitment that is deeply held by consumers to purchase product overtime despite the situational influences that are encountered in the prevailing market that provides specific information regarding a specific service or product encounter, cumulative satisfaction resulting from a series of transactions or service encounter is a more fundamental element of a firm‟s past, current and future performance. Losing a customer can occur when he/she ceases or reduces re-buying, which leads to a decline in sales volume
Further Munene (2010) argued that loyalty occurs when the customer feels that the firm and its products and services can best meet his/her relevant needs those competitors are virtually excluded from the set goals and includes the tendency to choose one business or a product over another
Conclusions
From the study it was concluded that mobile technology and financial applications are changing the way customers, Apple and sellers interact, Apple pay services are more efficient, hence improved quality of services which maintains buying behavior, Apple pay is more secure, therefore increased customer confidence which enhances buying behavior, it is comfortable and flexible to use, it is increased level of economic activities by the use of Apple pay, organizations also feel secure sending sensitive bank information across Apple pay. This is supported by Groennfeld (2014) who indicated that financial industries receive the awareness for requirement of mobility solutions; there are new opportunities, for both Apple and consumers. Smart phones are changing financial lifestyles around the world get paid, make payments, manage their budgets and save for the future. Mobile baking‟s tremendous development challenges traditional banking with a reduction of income, information loss about the turnover of their customers as well as lower margins as competition between those with expensive branch networks compete and all-electronic providers with few overheads continue to grow. Mobile payment is a very fluid business.
On the effects of apple watch on buying behavior the study concluded that the apple watch of Apple Inc is safe and secure, the easy access gives sufficient promises to its customers, it also concluded that it is easy to read texts through apple watch and there is a lot of customer support in Apple Inc‟ online website,
Recommendation of the Study
Based on the results, findings and conclusions the following recommendations have been made:
- On the the effect of Apple pay on buying behavior, It is recommended to Apple Inc should regularly conduct system checks and environmental analysis to avoid breakdown of Apple pay services which helps decongest the banking halls. Apple Inc should also conduct management conducts a market survey to ensure that the Apple pay services are acceptable in and to ensure that they are embracing the use of new technological innovations.
- It was also recommended that Apple Inc in Lagos should embrace innovation towards the improvement of apple watch services which ensures customer convenience and at the same time improving product quality, better service delivery, process improvement, efficient customer management practices which translates to effective customer satisfaction.
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