Definition: In general terms, M-commerce is defined as an extended version of E-commerce in which handheld devices are used instead of desktop for buying and selling of goods. In other words, it is an innovative way of doing business over the internet.
It was introduced in the year 1977 by Kevin Duffey at the global mobile forum launch.
- Customer Behaviour
- Features of M-commerce
- Types of M-commerce
- Marketing Practices
- Examples of M-commerce
- Measures to improve
- Advantages of M-commerce
- Disadvantages of M-commerce
- Growth of M-commerce
- Impacts of mobile commerce
- Situations that can affect purchase decisions
- Scope of M-commerce
- Key points to remember
Customer behaviour is changing rapidly; more than 50% of the google search is done on a mobile device. It is noticed that majorly women are using mobile phones than men for shopping & sharing their purchase item photos.
In today’s scenario, customers are savviest shoppers and always have some points while shopping, i.e. price comparison, discounts, vouchers, etc.
Navigation should always be very simple & easy. Shopping experience from starting to end should offer a customer an enjoyable experience. The essential part is to maintain the quality of the products as well as provide end value to the end-users.eg: discounts, vouchers.
Features of M-commerce
- Ubiquity: The term ubiquity defines the easy accessibility of information in real-time.
- Convenience: Devices like mobile and tablets are always nearby.
- Inter-activity: Mobile system allow for fast and easy interactions.
- Localization: Targeting customers with mobile promotions within a defined geographical space.
- Personalization: Creation of the services that customize the end-user experiences.
Types of M-commerce
These are the majorly used types of M-commerce:
- Mobile banking: It is an electronic medium of making bank transactions via-a mobile device. Example: Net banking
- Mobile shopping: Purchasing done through various applications online is termed as mobile shopping.
- Mobile payment: Online transaction payment such as buying Railway tickets, Movie tickets, Bill payments through mobile phones through various payment gateways is known as Mobile payment.
- Mobile advertising: It is a method of advertisement through SMS, mobile web posters, push-up notifications.
Marketers are using various new and traditional practices in m-marketing. The first step should always be the survey to know the market. Then, targeting the right customers and getting your marketing mix right and retain customers on your app.
Examples of M-commerce
Myntra, Nykaa, Flipkart, Amazon and many more are the examples of the M.commerce which are overgrowing.
Digital wallet apps are running very efficiently in the market, such as Google pay, Phone Pe, Paytm, Freecharge
Measures to improve
- The websites should be quick loading because customers switch to another site very frequently. On an average, a user doesn’t give more than 3 seconds to a website for loading.
- The applications should be eye-catching, so the customer gets an idea at first glance.
- The application should be pleasing, which bound customers on your website.
Advantages of M-commerce
- Security has prioritized
- Easily accessible through mobile applications.
- Faster loading.
- It has an Option of reminding customers about products through push notifications.
- Easier checkout procedure.
- On the go, transactions can be performed by utilizing the time of travelling.
- Purchasing and selling using mobile wallets increase digitalization.
- Sending and Receiving money from the phones through UPI (Unified payment interface)
- Gives business the possibility to expand in the market and increases sales.
- M-Commerce provides more credibility.
Disadvantages of M-commerce
- Smartphone limitations: No matter how active channel it is but without a smartphone, nothing that can be done.
- Need reliable shipment companies: For delivery of products, trustworthy personnel are required.
- Issue of security: Customers are afraid of using their cards for online shopping because of the frauds.
- Payment faults: Stolen credit cards and online payment accounts are used.
- Quality Check: Quality of the products don’t have a guarantee.
- Hacking issues: Data can be stolen by hackers.
Growth of M-commerce
- It is growing at an astonishing rate. Various timely events, such as sales on apps, are attracting more customers. During the period of a deal, the purchasing rate increases drastically.
- Mobile priorities are changing; retailers are focusing on developing their mobile sites and also investing in mobile apps and tablet technology.
- Brand promise creates a customer’s trust over the websites.
Impacts of mobile commerce
- Billions of transit and events tickets delivered annually to mobile handsets.
- Thousands of bookings are made on a daily basis from various apps like ola, uber etc.
- Most of the smartphone and tablet users are purchasing from home.
- A massive amount of revenue is generated from mobile ticketing.
Situations that can affect purchase decisions
The success factors essential for companies to learn more about the customer’s emotions in a particular situation.
- The relevance of the situation for the behaviour
Behaviour: In the morning we drink coffee for waking up and probably at 4:00 – 5:00 pm we drink coffee to take a break from work.
- Location, timing, consumer emotions and other factors become decisive factors in the purchasing process.
Place: Suppose you were sitting in a park relaxing and surfing on mobile and on the other hand, you were travelling in local trains or buses with a huge crowd. It drastically affects the emotions for purchasing.
Time: Shopping 24/7: Through mobile, you can search for any products at any point of time whenever you are free, whether in a day or at night.
Scope of M-commerce
In a developing age, India has become a large market of the smartphones and gadgets and major age group of the customer is between 20-55 years.
In various surveys, it is noticed that almost 50% of the users grab their mobile phones immediately after wake up and checks multiple notifications and messages which engage them in the applications showing offers and sale offering discounts in monetary terms.
Key points to remember
- M-Commerce is an extended part of E-Commerce
- Most of the E-commerce transactions are now made on
- Smartphones are widely used mobile channel worldwide.
In today’s competitive market, M-Commerce was rising rapidly and became a significant channel for making payments, doing shopping online as it is time-saving; meanwhile, the user can perform multiple tasks at the same time.