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MOBILE SERVICESand

FINNISH CONSUMERSJoanna Carlsson

IAMSR, Åbo Akademi University

Vienna, 31.01.2005

The Austrian Computer Society - Electronic Commerce Working Group

3Background photo © www.freefoto.com

OUTLINE• IAMSR• MOBILE COMMERCE PROGRAMME• SURVEYS 2001 – 2004• CASE FINLAND• FINNISH CONSUMERS• CONCLUSIONS


IAMSR and MOBILE COMMERCE PROJECT


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


MOBILE COMMERCE• A research programme during 2001 - 2005• 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


MOBILE COMMERCE• Objectives:

– Find and identify potential customer groups for fast-growing value added mobile e-commerce

– Design, develop and implement mobile e-commerce solutions for selected customer groups

– Test and evaluate systems solutions for integrated production and distribution of m-commerce 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 services


SURVEYS 2001-2004


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)


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– m-Commerce products/services portfolio– Potential “killer applications”


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


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 (?)


CONSUMER SURVEYS• Consumer Survey on Mobile Services in Finland

– Carried out in 2002, 2003 and 2004. Random sample• Target groups:

– 1000 consumers in Mainland Finland and 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 experts

→ comparisons between consumer and expert surveys


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 services listed)


CONSUMER SURVEYSResponse 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)


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)


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 communication


CASE FINLAND


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 (02/2004)• Operators:

– Sonera– Elisa (Radiolinja)– DNA / Finnet Verkot– Saunalahti

• 150 min of calling time + 25 SMS = – 2001 33,21 € / month; 2002 31,45 € / month– 2003 31,09 € / month; 2004 30,63 € / month

3G

3G


Sales to trade of mobile phones 1985 – 2004 (excl. VAT)

3000065000

1104000

1247689

26000

18000

14000

100000

384000

500000

190000

804000

1128000

1129000

1394000

6100054000

68000

14067061400000

271

410

640

10051252

1642

1466

2102

23542354

26912691

216

195197

187

166 164 140

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

0

500

1000

1500

2000

2500

3000

average price

Source: EKTRY


FINNISH CONSUMERS


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 personal use (72,8%)

– 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• GPRS 9,0% n=267

Mo = Mode


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:



– 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%,• GPRS 9,8%, (N.B. n = nr of responses, not

respondents)

Mo = Mode


2004• 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:



– 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%• Camera 14,1%(N.B. n = nr of responses, not

respondents)

Mo = Mode


CS 2002• .

51-64 36-50 23-35 16-22

Age group

Statistics : MeanConsumer survey 2002 MAINLAND n=406-410

I strongly agree I strongly disagree

High initial costs

High operating costs

Slow data connection and/or data transfer

Poor coverage of the networks

Limited capacity of mobile devices

Complexity involved in operating mobile devices

Small screen size of mobile devices

Lack of new mobile devices on the market

Uselessness of services

Complexity involved in using mobile services

Security risks

Fear of privacy invasion

12345

BARRIERS


CS 2003• .

51-64 36-50 23-35 16-22

Age group


High initial costs


Slow data connection a/o data transfer






Inadequate supply of useful mobile services


Information about existing mobile services is lacking

Instructions how to use mobile services are lacking

Security risks


12345

A very big barrier No barrier at all

BARRIERS


CS 2004• .

51-64 36-50

23-35 16-22

Age group

High initial costs


Slow data connection and/or data transfer






Inadequate supply of useful mobile services


Information about existing mobile services is lacking

Instructions how to use mobile services are lacking

Security risks


12345

Statistics : MeanConsumer survey 2004 N=416-431

A very bigbarrier

A bigbarrier

Not a suchbig barrier

A smallbarrier

No barrierat all

BARRIERS


CS 2002• .

51-64 36-50 23-35 16-22

Age group

Flexibility (anywhere, anytime)

Only connection to the Internet

Reminder/information services in real time

Personalised information and services

Entertaining features

Enhanced communication features

New dimensions of communication

More effective use of time

Uniqueness: exclusively mobile services

Lower prices/special offers

Accentuation of social status

Being trendy/ahead of my time

Convenience and handiness

Lack of proficiency with computers

12345


I strongly agree I strongly disagree

BENEFITS


CS 2003• .

51-64 36-50 23-35 16-22

Age group


A very big impulse No impulse at all

Flexibility (anywhere)

Flexibility regarding time (anytime)

Connection to the Internet

Wireless feature of a mobile device


Personalisation

"To kill time"


Enhanced communication







12345

BENEFITS


CS 2004• .

51-64

36-50 23-35

16-22

Age group

Flexibility (anywhere)

Flexibility regarding time (anytime)

Connection to the Internet

Wireless -feature of a mobile device


Personalisation

"To kill time"


Enhanced communication







12345

Statistics : MeanConsumer survey 2004 N=416-424

A verybig motive

A bigmotive

Not a suchbig motive

A smallmotive

No motiveat all

BENEFITS


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)

√

√



– SMS 96,2% (n = 425)– Ring tones 68,3% (n = 417)– Icons & logos 66,0% (n = 418)– [Routine m-banking 34,9% (n = 415)]


– 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)

√

√



– 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)


– Experts: SMS 4.28 (n = 18)– Experts: entertainment - games 4.06 (n = 18)– Experts: ring tones 3.94 (n = 18)

√


CONCLUSION


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 (n=416-433)


BENEFITS CS 2002-4• 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 (n=418-426)


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)



– 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 – mEmail 55,7% (n = 406)– Would use – checking flight/train timetables 52,6% (n = 405)



– 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 – mEmail 49,3% (n = 418)


CS 2003Age of the mobile device # 1

103 20.5 24.7 24.7

95 18.9 22.8 47.5

65 12.9 15.6 63.1

58 11.6 13.9 77.0

46 9.2 11.0 88.0

31 6.2 7.4 95.4

19 3.8 4.6 100.0

417 83.1 100.0

85 16.9

502 100.0

2 - 3 yrs

1 - 2 yrs

6 mths - 1 yr

3 - 4 yrs

< 6 mths

5 - 10 yrs

4 - 5 yrs

Total

Valid

SystemMissing

Total

Frequency Percent Valid PercentCumulative

Percent

Consumer survey 2003 MAINLAND


CS 2004Age of the mobile device # 1

97 20,0 23,7 23,7

92 19,0 22,4 46,1

61 12,6 14,9 61,0

52 10,7 12,7 73,7

39 8,1 9,5 83,2

32 6,6 7,8 91,0

29 6,0 7,1 98,0

7 1,4 1,7 99,8

1 ,2 ,2 100,0

410 84,7 100,0

42 8,7

32 6,6

74 15,3

484 100,0

1 - 2 yrs

2 - 3 yrs

3 - 4 yrs

6 mths - 1 yr

5 - 10 yrs

< 6 mths

4 - 5 yrs

I do not know

> 10 yrs

Total

Valid

999

333

Total

Missing

Total

Frequency Percent Valid PercentCumulative

Percent

CS 2004 Mainland


ADOPTION

Perceived ease of use

Adoption of mobile services

Perceived usefulness

New possibilities

CU@4!


THANK YOU!


INFORMATION• Professor Pirkko Walden

– [email protected]

• Professor Christer Carlsson– [email protected]

• Joanna Carlsson– [email protected]

• Recent articles– http://www.hicss.org

• Mobile Commerce project news– http://iamsr.abo.fi

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