Introduction
Mobile commerce emerged as a result of digital revolution or the continuous technological development or advancement during the 20th and 21st century (Rosenbloom, 2011). Essentially, mobile commerce refers to a contemporary model of conducting business through the conveyance of commercial activities or capabilities using a consumer’s mobile device (Ibrahim, 2006). Moreover, mobile commerce occurs electronically thus, requiring consumers’ access to wireless networks to enter online stores and make transactions. Due to the inimitable nature of mobile commerce or m-commerce, it has significantly changed the landscape of traditional commerce and consumerism (Holmstrom, Winquist, & Kamarainen, 2000). The succeeding report explores the nature of mobile commerce and how it has influenced or changed traditional commerce and consumerism. The first part of the discussion includes an overview of the information from the case followed by an analysis of underlying concepts covered. Case questions will also be answered and information from the case will be updated using data from current sources.
Overview of the Information in the Case
One of the primary factors that led to the mobile commerce explosion include convenience in relation to user experiences. Nowadays, consumers find it easier to purchase products and services online. Essentially, consumers drive mobile commerce because their interests influence patterns or trends of consumption. In the case, for instance, Tri Trang used the Internet to purchase a specific product and to look for this product’s lowest selling price at various online stores. In the end, Tri purchased the Garmin global positioning system (GPS) at the lowest possible price by similarly using the Internet to check the product’s cost in various online stores. Tri’s user experience illustrates the convenience of online shopping as well as the greater control that online consumers have when it comes to personal consumption.
Aside from convenience and improved user experience, another factor that brought about the explosion of modern commerce is the prevalent use of technologies or devices that make it easier for consumers to shop online. Majority of consumers use their smartphones to purchase goods and services. Through smartphones, consumers gain Internet connectivity and can therefore, conduct online shopping. Moreover, with the increasing use of smartphones worldwide, third party application developers create various software apps for phones. Some of these apps may be used for online shopping, scanning bar codes, comparing prices of goods and services, and reading consumer feedback and reviews of particular goods. Hence, consumers have increasingly become dependent on their smartphones for various purposes including online shopping. Based on Accenture’s report, 73 percent of smartphone users in the US prefer to use their smartphones rather than ask retail clerks for assistance.
Overall, the case illustrates how majority of consumers use their mobile phones or smartphones to complete transactions. The case also proves that people have become dependent on their phones when it comes to purchasing products and services for various reasons. The convenience of online shopping is one of the reasons why mobile commerce appeals to consumers. Moreover, consumers gain greater control over their transactions through mobile commerce.
Underlying Principles Discussed in the Case
One of the underlying principles discussed in the case is mobile commerce’s business model, which is different from the traditional business model (Eagle, Dahl, & Czarnecka, 2014). Traditionally, businesses relied on marketing and advertising strategies to promote a brand and its products or services. The primary goal or objective of marketing and advertising was to draw customers’ attention and influence them to stay in physical stores for longer periods of time with customers’ purchases as the ultimate end. Mobile commerce, however, adopts a new model. Online stores no longer subscribe to traditional strategies with the objective of influencing customers to stay in stores for longer periods of time. On the contrary, online customers define or influence user experiences. In the traditional store setting, customers visit physical stores to purchase goods. Online, customers look for stores that offer specific products and make purchasing decisions based on a number of factors such as customer reviews and feedback, and pricing differences among various online stores.
Another underlying principle discussed in the case involve the changing interest and preferences of consumers. Mobile commerce has considerable changed the nature of personalized service. In the traditional store setting, retailers offer personalized services because customers walk in physical stores and select their purchases. Nonetheless, mobile commerce further improved personalized services. Majority of consumers in the US that own smartphones even prefer online shopping over shopping in physical stores because the former is more personalized. Hence, the case illustrates the strong effect of personalized services on the interest and preferences of consumers (Muller, Alt, & Michelis, 2011).
Update the Information in the Case
For the past few years, mobile commerce continually evolved due to new technologies and innovations. Mobile commerce has been caught up in the digital revolution (Rosenbloom, 2011). Three of the factors that facilitate the continued development of m-commerce are mobility, availability, and ubiquity. These three factors support information in the case and explains why the people or consumers mentioned in the case heavily rely on their smartphones to shop online. Mobility refers to the convenience of devices as tools for online shopping. Availability refers to continuous connectivity offered by smartphones and ubiquity refers to network interconnectivity that allows consumers to use these devices to communicate remotely (Shaw, 2006).
Aside from these three factors, other research studies offer information about other aspects that drive mobile commerce. Wu and Wang (2005), for instance, studied the factors that drive mobile commerce and discovered that consumers use their devices for online shopping due to compatibility such that it allows them to save time and effort in visiting physical stores. Similarly, more businesses have adopted mobile commerce because of the way that it has changed the behavior and intentions of consumers over the years. Businesses found ways to take advantage of this by expanding access to their products and services online (Wu & Wang).
Answers to the Case Questions
Majority of the students in class – 92 percent – owns smartphones. After an impromptu survey, I learned that when it comes to shopping, some of the students use software apps of online stores and consumer review or feedback sites or companies. Students install apps of particular brands they follow and these apps show students items for sale. Through the apps, students also gain access to significant information such as new and upcoming merchandise, news and information about the brand, and exclusive deals such as promotions and discounts. Other apps show consumer reviews and feedback. Students seek information about specific products from these apps and use it to make purchasing decisions. Apart from using brand apps or other software that help them make purchasing decisions, students also use their smartphones to look for specific products or services. Students usually use their smartphones’ browser to look for the name or description of particular products and services. Furthermore, students use their browser to look for online shops offering particular products and services. Students use information gleaned from websites to choose what products to buy and from which online store they will buy these goods.
Following the explosion of mobile commerce, online consumptions has affected operations in brick-and-mortar retail. As more consumers flock to online stores, brick-and-mortar retailers such as Best Buy and Walmart must evolve along with technological advances due to the significant impact of mobile commerce. Some brick-and-mortar retailers including Best Buy adopted mobile commerce in recent years. Best Buy, for instance, uses apps that consumers may download on their phones. Through these apps, Best Buy may send consumers updates about products. Best Buy also uses the apps to detect nearby consumers and to send them notifications of rewards they may receive if they visit the physical stores (Rosenbloom, 2011). Other brick-and-mortal retailers must follow suit because it is highly important that they tap into mobile consumers. Retailers need to do so because mobile commerce is threatening their businesses (Morley & Parker, 2014). Some retailers were forced to close stores and lay off thousands of employees due to unprofitability. For this reason, mixing mobile commerce and the traditional business model must be the norm for these retailers (Mennecke & Strader, 2003).
Aside from features that help consumers locate products or know more about complimentary products, stores such as Best Buy must add other important features to apps. One feature must provide updates and information about the brand’s new products including details about them. A second feature must include a price checker and a price comparison table so consumers may make informed decisions when it comes to their purchases. A third feature must show customer feedbacks and reviews about specific products and services.
Using technology in customer service is beneficial to retailers particularly those that cater to customers worldwide. Through technology, brands or companies may provide continuous customer service for consumers. Nonetheless, despite the advantages and contributions of technology to customer service, it must not fully replace or take over the primary customer-facing role of an organization. Esurance’s slogan is accurate in that people have preferences so it is important to let them choose whether to talk directly to people in the organization or use technology to do so. For this reason, Nordstrom will not lose its competitive advantage based on superior customer service because customers still value the quality of customer service (Spector & McCarthy, 2012).
People who cannot afford smartphones are definitely missing out on the perks or advantages of mobile commerce. This population would be disadvantaged in a way that they miss out on the convenience of online shopping through mobile devices. Nonetheless, there are various entry-level smartphones that wireless carriers sell within the $40 to $50 price range. Although smartphones remain relatively expensive, developments in smartphone technology and releases in recent years show that mobile companies are conscious about the needs of low end users. Hence, we may see affordable smartphones in the coming years.
Conclusion
A review and analysis of the case as well as existing information about mobile commerce illustrates the significant impact of smartphones or mobile devices in the emergence and prevalence of mobile commerce. The foregoing discussion also shows the factors that contributed to the mobile commerce explosion and the ways that people take advantage of mobile phones or smartphones for more convenient shopping. Businesses, including brick-and-mortar stores, can definitely take advantage of mobile commerce to tap into the existing market of online consumers (Schmid, Stanoevska-Slabeva, &Tschammer, 2001).
References
Eagle, L., Dahl., S., Czarnecka, B. & Lloyd, J. (2014). Marketing communications. New York, NY: Routledge.
Holmstrom, J., Winquist, C. & Kamarainen, V. (2000). “Wireless identification revolutionizes the supply chain.” In Stanford-Smith & Kidd’s E-business: Key Issues, Applications and Technologies. Amsterdam: IOS Press.
Ibrahim, I. K. (2006). Handbook of research on mobile multimedia. Hershey, PA: Idea Group Inc.
Mennecke, B. R. & Strader, T. J. (2003). Mobile commerce: Technology, theory, and applications. Hershey, PA: Idea Group Inc.
Morley, D. & Parker, C. (2014). Understanding computers: Today and tomorrow, comprehensive. Florence, KY: Cengage Learning.
Muller, J., Alt, F. & Michelis, D. (2011). Pervasive advertising. New York, NY: Springer Science & Business Media.
Rosenbloom, B. (2011).Marketing channels. Florence, KY: Cengage Learning.
Schmid, B., Stanoeveska-Slabeva, K. & Tschammer, V. (2001). Towards the e-society: E-commerce, e-business, and e-government. New York, NY: Springer Science & Business Media.
Shaw, M. (2006). E-commerce and the digital economy. New York, NY: M.E. Sharpe.
Spector, R. & McCarthy, P. D. (2012). The Nordstrom way to customer service excellence. Hoboken, NJ: John Wiley & Sons.
Wu, J. & Wang, S. (2005). What drives mobile commerce?: An empirical evaluation of the revised technology acceptance model. Information & Management, 42(5), pp. 719-729.
