The Austrian Computer Society — Electronic Commerce Working

The Austrian Computer Society - Electronic Commerce Working Group MOBILE SERVICES and FINNISH CONSUMERS Joanna Carlsson IAMSR, Åbo Akademi University Vienna, 31. 01. 2005 Background photo © www. freefoto. com

OUTLINE • • • IAMSR MOBILE COMMERCE PROGRAMME SURVEYS 2001 – 2004 CASE FINLAND FINNISH CONSUMERS CONCLUSIONS Background photo © www. freefoto. com 3

IAMSR and MOBILE COMMERCE PROJECT Background photo © www. freefoto. com

IAMSR • Institute for Advanced Management Systems Research: – A research institute at Åbo Akademi University – Member of TUCS graduate school – Research programs carried out in cooperation with major Finnish companies – Theory-driven and applied research in: • • • approximate reasoning and fuzzy logic real options, self-organizing maps and neural nets interdependent multiple criteria optimisation software agents mobile and electronic commerce methods and technology • industry foresight methods and scenario technologies • knowledge based support systems and hyperknowledge Background photo © www. freefoto. com 5

MOBILE COMMERCE- 2005 • A research programme during 2001 • Run with a network of research and corporate partners • Research partners: – – – City University of Hong Kong Delft University of Technology, Holland Electronic Commerce Competence Center, Austria National Consumer Research Centre, Finland Turku School of Economics and Business Administration, Finland – University of Dallas, USA – University of Northumbria, UK – University of St. Gallen, Switzerland Background photo © www. freefoto. com 6

MOBILE COMMERCE • Objectives: – Find and identify potential customer groups for fast-growing value added mobile e-commerce – Design, develop and implement mobile ecommerce solutions for selected customer groups – Test and evaluate systems solutions for integrated production and distribution of mcommerce products and services – Design and test value added user interfaces and user support systems for mobile e-commerce users – Find value added services for customer groups and evaluate them; test the service concepts in different potential markets; find and test mobile content quality aspects; revise or redesign Background photo © www. freefoto. com 7

SURVEYS 20012004 Background photo © www. freefoto. com

EXPERT SURVEYS • Expert Survey on Mobile Commerce in Finland – Carried out in 2001 - 2004. To be repeated in 2005 • Target group: – 50 Experts and decision makers of companies operating in the following industries: • Providers of m-Commerce products and services • Providers of m-Commerce infrastructure • Providers of consulting or financing services in the area of m-Commerce • Surveys carried out with a web-questionnaire • The web-questionnaire revised annually • The annual surveys carried out also in Europe and Asia (+ USA in 2002) Background photo © www. freefoto. com 9

EXPERT SURVEYS • Focus on e. g. : – Barriers to rapid m-Commerce diffusion (for consumers) – Usage behaviour of m-Commerce consumers – Potentially successful m-Commerce products/services – m-Commerce pricing models – m-Commerce advertising models – Competitiveness of Finnish m-Commerce companies – Share of e- and m-Commerce revenues of companies’ total revenues Background photo © www. freefoto. com 10

EXPERT SURVEYS • 2001 – – – 31 respondents in Finland 26 respondents in Germany 12 respondents in France 28 respondents in Singapore 31 respondents in Hong Kong • 2002 – – 25 respondents in Finland 27 respondents in Austria 40 respondents in Hong Kong 18 respondents in USA Background photo © www. freefoto. com 11

EXPERT SURVEYS • 2003 – – 18 (22) respondents in Finland 36 respondents in Austria 31 respondents in UK 22 respondents in Hong Kong • 2004 – – 15 respondents in Finland 23 respondents in Germany Switzerland (? ) Hong Kong (? ) Background photo © www. freefoto. com 12

CONSUMER SURVEYS in • Consumer Survey on Mobile Services Finland – Carried out in 2002, 2003 and 2004. Random sample • Target groups: – 1000 consumers in Mainland Finland 300 consumers in the Åland Islands: • Age between 16 - 64 • Language Finnish or Swedish • Surveys carried out with a paper-copy questionnaire • The questionnaire revised annually • Questions same/similar to the ones posed to Background photo © www. freefoto. com 13

CONSUMER SURVEYS • Focus on e. g. : – – – Barriers for using m-Commerce services Benefits for using m-Commerce services The model(s) of the mobile device(s) in use The time-frame for acquiring a new mobile device The features preferred in the future mobile device The use of the mobile device (private vs. business) – Financial aspects regarding a mobile subscription – The current use of mobile services (approx. 30 services listed) – The future use of mobile services (approx. 30 Background photo © www. freefoto. com 14

CONSUMER SURVEYS Response rates: • 2002 • MAINLAND 48, 7% (499 responses, 12 rejected) • ÅLAND 61, 7% (197 responses, 12 rejected) • 2003 • MAINLAND 50, 2% (517 responses, 15 rejected) • ÅLAND 51, 7% (166 responses, 11 rejected) • 2004 • MAINLAND 48, 4% (494 responses, 10 rejected) • ÅLAND 52, 3% (157 responses, 0 rejected) Background photo © www. freefoto. com 15

M-UTAUT • m-Unified Theory of Acceptance and Use of Technology –model – Testing of the model in 2004 • Target groups: – 800 medical doctors – 300 consumers in Åland: (June- July 2004) • Age between 16 - 64 • Language Finnish or Swedish – 15 ÅA Master/Doctoral students – 250 members of the ÅA personnel (planned) Background photo © www. freefoto. com 16

TEENS • Survey on Teens and Mobile Services in Finland – Carried out in 2002 • Target group: – 100 students in Turku, Finland • Age between 15 - 19 • Language Finnish • Aim of the survey: – To examine the use of SMS in communication between teens/young adults – To study the new culture - Mobile Culture - created by the teens/young adults by adapting and applying mobile services in interpersonal Background photo © www. freefoto. com 17

CASE FINLAND Background photo © www. freefoto. com

CASE FINLAND • Population of 5. 2 million • Fixed telephone connections: 2. 6 million in 2003 • Mobile telephone connections: 4. 7 million in 2003 • > 90% of households have a mobile phone 3 G (02/2004) 3 G • Operators: – – Sonera Elisa (Radiolinja) DNA / Finnet Verkot Saunalahti • 150 min of calling time + 25 SMS = Background photo © www. freefoto. com 19

Sales to trade of mobile phones 1985 – 2004 (excl. VAT) Source: EKTRY Background photo © www. freefoto. com 20

FINNISH CONSUMERS Background photo © www. freefoto. com

2002 • Consumers – n = 487 – Female 54, 0%, Male 45, 2% – Age: • Mo 51 -64 (32, 9%) – Education: • Mo Vocational (29, 2%) – Occupation: • Mo Clerical (27, 5%) – Device? : • Yes (88, 9%) – Usage: • Mo More/only for Mo = Mode personal use Background photo © www. freefoto. com – Device in use: • GSM (88, 7%) • WAP (6, 7%) • More advanced (4, 6%) – Changing for a new device: Yes (63, 6%), No (36, 4%) – When: in ≤ 1 year (57, 0%) – Features: • GSM 50, 7% n=267 • Don’t know 24, 7% n=267 22

2003 • Consumers – n = 502 – Female 57, 7%, Male 42, 3% – Age: • Mo 36 -50 (34, 1%) – Education: • Mo Vocational (23, 2%) – Occupation: • Mo Clerical (29, 6%) – Device? : • Yes (89, 0%) – Usage: • Mo More/only for personal use Mo = Mode Background photo © www. freefoto. com – Device in use: • GSM (57, 8%) • WAP (20, 1%) • More advanced (22, 1%) – Changing / buying for a new device: • Yes (36, 0%), No (54, 6%) – When: ≤ 1 year (62, 3%) – Features (n=305) : • Colour display 18, 4%, • Digital camera 13, 4%, 23

2004 – Device in use: • GSM (51, 0%) • WAP (12, 7%) • More advanced (36, 3%) – Acquiring a new device in 6 months time: • Yes (25, 7%), No (74, 3%) – Features (n=241) : • Basic functions (SMS + calling feature) 21, 6% • Colour display 19, 9% • Consumers – n = 484 – Female 55, 1%, Male 44, 9% – Age: • Mo 36 -50 (33, 1%) – Education: • Mo Vocational (30, 1%) – Socio-Economic group: • Mo Manual work (31, 9%) – Device? : • Yes (91, 3%) – Usage: Background photo © www. freefoto. com Mo = Mode 24

CS 2002 • . BARRIERS Background photo © www. freefoto. com 25

CS 2003 • . BARRIERS Background photo © www. freefoto. com 26

CS 2004 • . BARRIERS Background photo © www. freefoto. com 27

CS 2002 • . BENEFITS Background photo © www. freefoto. com 28

CS 2003 • . BENEFITS Background photo © www. freefoto. com 29

CS 2004 • . BENEFITS Background photo © www. freefoto. com 30

CS 2002 • Top 3 m-products/services – SMS 90, 2% (n = 420) – Ring tones & icons 52, 5% (n = 415) – Routine m-banking 18, 5% (n = 416) Expert survey 2001 Finland “How do you evaluate the likelihood of firms achieving a satisfactory level of revenue for the following m Commerce services in the next 18 months? 5=Very good, 1=Poor“ – – Experts: SMS 4. 23 (n = √ 31) Experts: entertainment (games) 3. 87 (n = 31) Experts: personalized information 3. 48 (n = 31) Experts: m-banking 3. 45 (n √ 31) = Background photo © www. freefoto. com 31

CS 2003 • Top 3 m-products/services – – SMS 96, 2% (n = 425) Ring tones 68, 3% (n = 417) Icons & logos 66, 0% (n = 418) [Routine m-banking 34, 9% (n = 415)] Expert survey 2002 Finland “How do you evaluate the likelihood of firms achieving a satisfactory level of revenue for the following m Commerce services in the next 18 months? 5=Very good, 1=Poor“ – – Experts: SMS 4. 04 (n = √ 25) Experts: entertainment – games 4. 04 (n = 25) Experts: ring tones & icons 3. 88 (n = 25) √ Experts: chat 3. 80 (n = 25) Background photo © www. freefoto. com 32

CS 2004 • Top 3 m-products/services – – SMS 96, 1% (n = 438) Search services (address, tel. ) 62, 8% (n = 422) Icons & logos 58, 3% (n = 424) Routine m-banking 12, 0% (n = 425) Expert survey 2003 Finland “How do you evaluate the likelihood of firms achieving a satisfactory level of revenue for the following m Commerce services in the next 18 months? 5=Very good, 1=Poor“ – Experts: SMS 4. 28 (n = √ 18) – Experts: entertainment - games 4. 06 (n = 18) – Experts: ring tones 3. 94 (n = 18) Background photo © www. freefoto. com 33

CONCLUSION Background photo © www. freefoto. com

BARRIERS CS 2002 -4 • 2002 – High operating costs 3. 95 – High initial costs 3. 81 – Limited capacity of m/ds 3. 77 (n=409 -413) • 2003 – High operating costs 3. 38 – High initial costs 3. 33 – Limited capacity of m/ds 3. 06 (n=399 -414) • 2004 – High operating costs 3. 26 – High initial costs 3. 21 – Limited capacity of m/ds 2. 98 Background photo © www. freefoto. com (n=416 -433) 35

BENEFITS CS 20024 • 2002 – Enhanced communication features 3. 74 – Flexibility (anywhere, anytime) 3. 73 – Convenience and handiness 3. 40 (n=410 -418) • 2003 – Flexibility regarding time 3. 76 – Flexibility regarding place 3. 75 – Wireless feature of a m/d 3. 66 (n=371 -376) • 2004 – Flexibility regarding place 4. 04 – Flexibility regarding time 4. 00 – Wireless feature of a m/d 3. 70 Background photo © www. freefoto. com (n=418 -426) 36

2002 • Top 3 m-products/services – SMS 90, 2% (n = 420) – Ring tones & icons 52, 5% (n = 415) – Routine m-banking 18, 5% (n = 416) – Would use – SMS 79, 3% (n = 314) – Would use – routine m-banking 53, 8% (n = 364) – Would use – GPS-based location 52, 0% (n = 375) Background photo © www. freefoto. com 37

2003 • Top 3 m-products/services – – SMS 96, 2% (n = 425) Ring tones 68, 3% (n = 417) Icons & logos 66, 0% (n = 418) [Routine m-banking 34, 9% (n = 415)] – Would use – SMS 91, 6% (n = 381) – Would use – m. Email 55, 7% (n = 406) – Would use – checking flight/train timetables 52, 6% (n = 405) Background photo © www. freefoto. com 38

2004 • Top 3 m-products/services – – SMS 96, 1% (n = 438) Search services (address, tel. ) 62, 8% (n = 422) Icons & logos 58, 3% (n = 424) [Routine m-banking 12, 0% (n = 425)] – Would use – SMS 86, 7% (n = 407) – Would use – search services 59, 2% (n = 414) – Would use – m. Email 49, 3% (n = 418) Background photo © www. freefoto. com 39

CS 2003 Background photo © www. freefoto. com 40

CS 2004 Background photo © www. freefoto. com 41

ADOPTION CU@4! Perceived ease of use Perceived usefulness Adoption of mobile services New possibilities Background photo © www. freefoto. com 42

THANK YOU! Background photo © www. freefoto. com 43

INFORMATION • Professor Pirkko Walden – Pirkko. Walden@abo. fi • Professor Christer Carlsson – Christer. Carlsson@abo. fi • Joanna Carlsson – jcarlsso@abo. fi • Recent articles – http: //www. hicss. org • Mobile Commerce project news – http: //iamsr. abo. fi Background photo © www. freefoto. com 44