LECTURE 6M-COMMERCE

M commerce ?

Mobile commerce (m-commerce, m-business)any e-commerce done in a wireless environment, especially via the Internet

Can be done via the Internet, private communication lines, etc.Creates opportunity to deliver new services to existing customers and to attract new ones

Accessing the Internet wirelessly anytime & anywhere via portable devices:

Cellular phone or Smartphone Tablet PCNotebook computer

DriversWidespread availability of mobile devicesFreedom from PCMobile phone cultureDeclining prices increasing functionalityImproved bandwidth esp 4G technology

http://topis.seoul.go.kr/eng/ExampleExample (The bus information model) : Seoul, KoreaThe Problem Buses in Seoul have difficulty keeping to 20 minute schedule during rush hours Posted schedule becomes meaninglessThe Solution Display Screen or Bus riders carrying Internet-enabled Smart phone or Tablet PC : Find estimated arrival time at each stop, digitally in real time

58% 57% 71%80% 64% 70%

Research Banking Purchase

Growth In Mobile Content & Commerce Behaviors 2011 to 2012

Total Sample 2011 Total Sample 2012

24%

54%

21%

7%

31%

54%

27% 23%

10%

Physical & Perishablegoods combined

Digital products (e.g.ringtone, app, games,

music)

Physical Goods (e.g.Books, CDs, clothing

etc.)

Virtual Goods (e.g. Inapplication currency,

goods, prizes etc.)

Perishable goods (e.g.food and drink)

Purchasing Via Mobile - Categories

Total Sample 2011 Total Sample 2012

Purchase behavior is maturing & diversifying with a significant increasein the purchase of physical & perishable goods since 2011

N/A

9Research leads to revenue

Cards and operator payments are the major payments methods

21%

39%

27% 25%

Any Card Mobile Phone Payment (bill or airtime)

Purchasing via Mobile Payment Methods

Total 2011 Total 2012

Globally, 33% users now check their bank balance via their mobile, up from22% in 2011

22% 28% 12% 14% 8% 5% 2%33% 23% 22% 18% 14% 10% 6%

Check bankbalance

Send airtime tosomeone else

Pay a bill Top up mobilewallet

Send money tosomeone else

Apply for credit/ loan

Make a loanrepayment

Mobile Banking Activities

Total 2011 Total 2012

Globally - convenience and entertainment are the key reasons globally consumers purchase via their mobile

UNDERSTANDING MOBILE CONTENT AND COMMERCE USAGE & TRENDS WORLDWIDE

Characteristics of M-Commerce

Mobile Commerce

Mobile Commerce

Mobility

Reachability

CharacteristicsValue-addedattributes

Product and service Localization

Product Personalization

Ubiquity

Accessibility

Convenience

Favoring Applications of M-commerce

Early content and applications have all been geared around information delivery but as time moves on, the accent will be on revenue generation.

M- commerce

Entertainment Music Games Graphics Video Pornography

Communications Short Messaging Multimedia Messaging Unified Messaging e-mail Chatrooms Video - conferencing

Transactions Banking Broking Shopping Auctions Betting Booking & reservations Mobile wallet Mobile purse

Information News City guides Directory Services Maps Traffic and weather Corporate information Market data

Diversification of M-commerce Applications

Mobile Applications: Financials

As mobile devices become more secure these applications will become more viableMobile bankingBill payment servicesM-brokerage servicesMobile money transfersMobile micropayments

Replace ATMs and credit cards??

Financials: Wireless Electronic Payment Systems

transform mobile phones into secure, self-contained purchasing tools capable of instantly authorizing paymentsTypes:MicropaymentsWireless wallets (m-wallet)Bill payments

Mobile Applications: Marketing, Advertising, & Customer Service

Shopping from Wireless DevicesHave access to services similar to those of wireline shoppers Shopping carts Price comparisons Order status

Mobile Applications : Marketing, Advertising, & Customer ServiceTargeted AdvertisingUsing demographic information can personalize wireless services (barnesandnoble.com)Knowing users preferences and surfing habits marketers can send: User-specific advertising messages Location-specific advertising messages

L-commerce Commercial services based on subscriber mobile phone location within

the network Fair degree of accuracy

Location-based services

Medical emergency/roadside assistance services Location-based billingdifferent tariffs for different places Target advertising personalized to a subscribers location (e.g.,

retail discount) Find the place nearby (restaurant.com, mizpee)

Mobile Computing Limitations Insufficient bandwidth (1G, 2G, 3G, 4G) Security Power consumption Transmission interference (handset, monitor) Possible Health hazards Complexity