Chapter 6- Discussion and Conclusion
2. RESEARCH ISSUES
2.5 Consumer Behaviour and Technology
a blueprint towards developing a contemporary model that is likely to predict user continuance intention towards M-pesa. The stages of the decision making process are discussed next.
2.5.1 Consumer Decision-Making Process
Modelling of consumer decision-making process allows for vendors to describe and predict consumer behaviour, and consequently provides an empirical source for marketing decisions. The conventional model for analysing buyer decision processes is a linear stage model of five key steps, as outlined in Fig. 2.1. The common drive is onward through the stages. The consumer advances firstly from a state of sensed deficiency (problem recognition) to seek information on potential solutions (information search). The information collected, internally (e.g., prior knowledge, perception, personality, emotions, attitude, etc.,) or externally (e.g., culture, family, reference groups, conversations, sales promotions) inputs to the next stage — the evaluation of alternatives (Hawkins, Best, & Coney, 2001). This stage involves a comparison of purchasing evaluation criteria. The Purchase stage entails the act of the acquisition. Last, post-purchase behaviour is concerned with the extent of satisfaction or dissatisfaction with the product or service, which is a key concern of vendors, as it provides information for future products and services. This model is instructive in enabling some of the complexities of the external environment and internal information processing to be captured. Nontheless, a recap cautionary note is that the linear nature of the model has been criticized as the elements of the buyer decision-making process does not always occur in sequential order (Philips & Bradshaw, 1993).
As such, the core criticism of this approach is its mechanistic flow that may be inconsistent across various decision-making contexts, as other factors such as: consumer variables could interplay (Bray, 2008). This section has provided an overview of a blue-print of the consumer decision making process. Next, each stage of the process is discussed from an M-pesa use outlook.
Fig 2.2 Consumer Decision-Making Process Source: Belch et al (2012).
2.5.1.1 Problem or Need Recognition
From a technology use outlook, the need recognition is the initial and most vital step in the use decision process. Without a need, there is no use of the technology. The need or problem recognition occurs in the face of a lag between the consumer’s actual state and a desired one (Belch et al. 2012). In Kenya, individuals were faced with a need for a reliable financial transaction service, as only 19% of the population operated formal accounts (GSMA, 2013b).
This circumstance placed the majority of the population in an undesired state with hope for a resolution; instilling a need for a reliable money remittance channel.
2.5.1.2 Information Search
Subsequent to identification of the need, the consumer seeks information about possible solutions to the problem (Kotler et al. 2008). He or she will seek more or less information depending on the complexity of the choices to be made. Consumers who engage in information search will first utilize self-knowledge before searching for other sources of information (Hawkins et al. 2001).
Where the alternatives are satisfactory, the process of information search can be closed.
Otherwise, the consumer will engage in external information search (Pizam & Mansfeld, 2000).
In searching for information, multiple sources are available to the consumer, and could be classified as internal and external (Kotler, 2000). Internal refers to extant information in the consumer’s mind, which may have been acquired from past experiences (Hawkins et al. 2001).
For external information, Kotler et al. (2008) posit four categories of external sources which
include: personal (e.g., friends and family), business (e.g., promotion, sales representatives), public (e.g., press), and pragmatic (trialability).
In Kenya, M-pesa was a novel service and had no predecessors (Hughes & Lonie, 2007, p.63), thus the only source of information for consumers would have been public and commercial sources. The information conveyed through these channels seems to have sufficed as the uptake of the M-pesa service has been phenomenal.
2.5.1.3 Evaluation of Alternatives to Meet the Need
Once satisfied with the information gathered, the consumer proceeds to evaluate alternatives with a goal to select the one that best caters for his or her needs (Belch et al. 2012). Most products and services consist of layers and attributes, and necessitate evaluation at the level of the attributes.
For example, there are objective characteristics (e.g., features and functionality of the product or service) and subjective (perception and perceived value of the brand by the consumer or its reputation). To examine the characteristics of a product or service, several scholars have empirically shown that consumer perception towards a product or service influences purchase or use behaviour (e.g., Chen, 2008; Gilbert & Wong, 2002; Huang, 2009; Zeithaml et al. 1996). In this vein, marketers developed models to measure consumer perception towards a product or service. A popular model in the extant literature that was posited in the 80’s was SERVQUAL (Parasuraman, Zeitmal and Berry, 1985). This model assigns product attributes to one of its taxonomies, namely: reliability, assurance, tangibles, empathy and responsiveness. Following its conception, the SERVQUAL model has been modified, extended and adapted to various industries (Pizam & Mansfeld, 2000). On this note, Kozak and Decrop (2009) label this approach of characteristics examination as piecemeal process which is in contrast to the categorical process, where the product is seen from a holistic outlook. Despite this, the evaluation stage is prone to exclusion in some cases. Kotler et al. (2008) explains that the evaluation of alternatives stage may be skipped by consumers with a high drive or who are directly exposed to product and convinced of its value. In the case of M-pesa, the evaluation of alternatives does not apply as it was the premiere service of its kind (Hughes & Lonie, p.63), thus consumers would likely have based their use of the service on information gathered or vendor claims.
2.5.1.4 Purchase Decision
Following an evaluation of the different solutions (product or services) available to meet the need, the consumer should be capable of selecting the most appropriate option (Belch et al. 2012). The consumer’s decision will be based on the information and the selection made in the preceding step, in light of perceived value, product features, and important capabilities. Afterwards, he or she proceeds to the actual purchase (Kotler et al. 2008). Although this is the penultimate stage where the purchase or use of a product or service takes places, Kotler (2009) cautions that the purchase decision may be interjected by two factors. These are negative feedback from other consumers and the level of reception to the feedback. This impediment flows from the information search and evaluation of alternatives stages.
In the case of M-pesa, a decision to use would have been based on vendor claims of the service features since it was the first of its kind (Hughes & Lonie, 2007, p.63); there were no prior alternatives.
2.5.1.5 Post Purchase Decision
The post-purchase stage in this model is the fusion point with this study. Belch et al. (2012) describe this stage as the evaluation of expectations after use of the product or service. The result of the evaluation would determine the consumer’s satisfaction level: either satisfied (has met or exceeded expectations) or dissatisfied (below expectations) (Kotler, 2000). User continuance intention is a post-adoption phenomenon and is also largely influenced by satisfaction levels (Bhattacherjee, 2001a). A consumer’s satisfaction level with a product or service will impact the decision process for similar purchases of products or use of services from the same vendor in the future because there will be a knock on effect at the information search and evaluation stages (Mayland, 2000).
Specifically, post-purchase stage is influenced by the information search stage, in that; it is common practice for consumers to reveal their positive or negative incidents with mates and family. In the same vein, satisfaction with a product or service influences evaluation of alternatives as discontent users are unlikely to spread positive feedback about the product or service; a product or service with a poor reputation is unlikely to be selected amongst alternatives.
As such, vendors must be cautious to create positive post-purchase communication. This enables a dispersion of positive feedback around the reputation of their products or services.
In this study, target participants (users of M-pesa) would possess first-hand experience with the service and can now pass judgement based on use. As identified in this generic model, the extent of user satisfaction or dissatisfaction is a key determinant in the post-acceptance phase of purchase or use of a product or service. To examine user continuance intention towards M-pesa, a similar process based approach (model based approach) is applied and factors from the literature will be identified and reviewed for aptness in determining user continuance intention.