The Effect of Mobile Phone on the Growth of E-Commerce in Nigeria
Chapter One
Objective of the study
The objectives of the study are;
- To find the effect of mobile phone on the growth of e-commerce in Nigeria
- To find out the challenges of using mobile phone on e-commerce in Nigeria
- To find out the risk of using mobile phone in e-commerce in Nigeria
CHAPTER TWO
LITERATURE REVIEW
Introduction
According to , Mobile e-commerce (m-commerce) is a term that describes online sales transactions that use wireless electronic devices such as hand-held computers, mobile phones or laptops. These wireless devices interact with computer networks that have the ability to conduct online merchandise purchases. Any type of cash exchange is referred to as an e-commerce transaction. Mobile e-commerce is just one of the many subsets of electronic commerce. Mobile devices and wireless network usually work hand in hand and several applications find it suitable to use the platform provided in most mobile phones. There are more application for mobile device than for desktop application and usage patterns differ from those of the normal traditional desktop computers. However, the ubiquitous availability of the application in mobile device enables direct software support and information access for many new business functions in real time. The popularity of the technology used in mobile electronic commerce gave way for individual to display their products online and method of payment. Business transaction take place in the absent of the merchant and consumer places an order, expecting delivery in the shortest period of time. According to, Global Positioning System (GPS) allows a retailer to know the exact location of their customers. Such technology gives them a better understanding of the needs of their target audience. Sensors can be used to transmit data constantly from anywhere while global positioning systems and proximity detection technology will be used to track the device or goods as it moves from place to another. In some cases, the embedded sensors will automatically respond to any changes in their environment hence this concept is referred to as proactive computing. Others technologies that can benefit mobile e-commerce includes- NFC (Near field communication), RFID (Radio Frequency Identification Technology), Bluetooth and Infrared, Augmented Reality (AR) and camera-based applications, Smart objects, light beams and sensors WI-Fi and UWB (Ultra Wideband), and Magnetic field and beacon mapping. Author in proposed the use of the use of Global Positioning System (GPS) in identifying customer‟s location as an alternative to named physical addresses. This paper describes the study design and discusses the findings concerning the use of GPS tracking application among six retailers and thirty customers in Kenya. The study reveals that geolocation can substitute physical addresses in m-commerce home deliveries
The Concept of E-Commerce
Overthe years, rapid advancements have been made in Information Technology and many organisations have sought to capitalise on this to boost their businesses(Moriarty et al., 2011). One of the offshoots of this is the introduction and popularity of the term ‘e-commerce’ (Jahanshahi et al., 2011). Simply put, e-commerce can be described as the process of using the internet for activities such as buying and selling products and services as well as other business activities (Jagoda, 2010). E-commerce provides an avenue for firms to sell its products and services, advertise, re-stock on supplies, bypass middlemen, keep accounts, simplify filing, and provide information (Jahanshahi et al., 2011). This business technology has created a prosperous opportunity to surpass the boundaries of costs and time, improve the circulation of information, capital and production, change the pattern of trade and provide a competitive environment for businesses(Jagoda, 2010). Two major types of e-commerce business model can be distinguished: Business to Business (B2B) and Business to Consumer (B2C). B2B involves organization strading amongst themselves in large volumes with minimal profit margins on each product, while B2C involves trade between business and individuals, and characterised by small volume trading with large profit margins on each product (Eriksson et al., 2008). The focus of this paper is, however, on the later which is the most widely used. While e-commerce is being utilised globally to an extent, the level of its application varies from one location to the other because of certain factors which create either a positive enabling environment or limits it (Deakins and Freel, 2012). These factors include the political, economic, social and technological environments.
MOBILE E-COMMERCE TRENDS IN NIGERIA
Over the last ten years Nigeria has seen astronomical rise in the use of mobile phones and portable devices in e-commerce transactions. This is due largely because of increase in GSM internet subscription, the increasing usage of smartphones and proliferation of e-commerce businesses hosted on the internet as Mobile Apps and the speed and convenience it offers consumers to access it. According to the Nigerian Communication Commission (NCC), from December 2016 to January 2018, the number of subscription of users on GSM internet connectivity rose from 92 million to over 100 million users
Advantages of Mobile e-commerce
User activities in mobile electronic commerce include:
Buying and selling of goods
Asking for merchant services
Transferring of ownership right
Transacting and transferring money by accessing wireless internet services on the mobile phone Post purchase customer support
Communication between merchant and the bank
Product search and comparisons by consumers
Consumers feel very happy if they can access company website through their mobile phones. This makes a consumer to pay more attention and partner with company whose sites are better set up for mobile e-commerce. Consumers‟ patronage to a site or shopping in a company site show the extent to which the company goes to satisfy or to meet up customers need
Disadvantages of Mobile e-commerce
According, the major problem of mobile e-commerce is the mobile device itself and size of webpage, content of companies‟ e-commerce site or platform and graphics, technology limitations, processing capability of the computer system, compatibility issue of some mobile device and operating system issues. The mobile device may not be able to offer the same level of graphics as contained in the webpage. Most company in order to serve their customers will provide consumers with a desktop version and as well with a mobile version, in such a way that whatever appears in the desktop version will be integrated to the mobile version. Companies have to keep this in mind and endeavour to setup its webpage so that it can be accessible by both personal computer system and as well as mobile devices. The technology of the mobile device and the size of the device screen may limit the complexity the application. This prevents user to access the webpage on his mobile device the same way he would interact with it using a personal computer.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine The Effect of Mobile phone on the growth of E-commerce in Nigeria. Jumia in Lagos state forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the Effect of Mobile phone on the growth of E-commerce in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the effect of Mobile phone on the growth of E-commerce in Nigeria.
Summary
This study was on the effect of Mobile phone on the growth of E-commerce in Nigeria. Three objectives were raised which included; to find the effect of mobile phone on the growth of e-commerce in Nigeria, to find out the challenges of using mobile phone on e-commerce in Nigeria and to find out the risk of using mobile phone in e-commerce in Nigeria. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Jumia in Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
E-commerce has been given a boost in today’s business due to the proliferation of mobile phones, mobile application and ebusiness tools. Affordable and fast internet connectivity has equally increased the rate of patronage of consumers to ecommerce. In Nigeria this is true as because of fast rising use of mobile phones and portable devices as well presence of 3G/4G GSM networks in major cities and towns but there are still issues contending with the growth of e-commerce and ebusinesses; such factors include uneven spread of broadband internet, poor electricity infrastructure and distribution. The issues of security vulnerabilities, because of increasing threats of hackers and malwares, have also contributed negatively to safe and smooth operation of e-commerce in developing economies such as Nigeria. Consumers should be educated on security issues and how it affects their safe shopping on ecommerce sites/stores and mobile Apps and measures they must take to protect themselves from hackers and malwares. E-business tools have helped a lot in promoting e-business sites, mobile Apps and e-commerce online stores in no small measure. It a good practice to continually review business sites and ensure that such sites do not lack few of the mentioned tools which if used will boost profit in e-commerce. These are only a few e-commerce tools that should be a part of your plan and there are more. All of these tools have potentials to increase your sales in their own way
Recommendation
Consumers should be educated on security issues and how it affects their safe shopping on ecommerce sites/stores and mobile Apps and measures they must take to protect themselves from hackers and malwares.
References
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