Components, Features, and Development of Mobile Commerce Applications - Case Study Example

Institution: Student Name: Title: Mobile Commerce Date: Contents Institution: 1 Student Name: 1 Title: Mobile Commerce 1 Date: 1 Contents 2 Introduction 3 Findings and analysis 3 Situation 3 The components and features of M-commerce 4 The 8-second rule 6 Importance of keeping records 7 Problem 7 The concerns of the mobile commerce user 7 How the technology affects my life 8 Solution 8 Conclusion 9 Recommendations 9 List of References 10 Introduction Mobile commerce refers to the selling and buying of services and goods via handheld devices that are wireless like cellular phones and personal digital assistants (PDAs). M-commerce is referred to as the e-commerce of the next generation and it allows its users to easily access the internet without a need of finding the plug-in. in Europe, the technology behind m-commerce that is emerging based on WAP (Wireless Application Protocol), has made major strides. M-commerce hence refers to delivering transaction services that are trusted over cellular phones in exchange for the services and goods between consumer, financial institutions and merchants. The ecommerce transactions by mobile phones have grown tremendously with 29 per cent ecommerce transactions in the United States and 34 per cent globally. It has been projected that by the time 2015 ends, the mobile share will at 33 percent in the United States and 40 percent globally (Laudon & Laudon, 2015). Findings and analysis Situation The M-commerce has been increasingly accepted within many sections of the contemporary society. The exponential growth is attributable to the demographic and technological developments that have had a direct influence to the several parts of the social and cultural behaviors in the current world. The mobile commerce has been very essential in transforming the way business was traditionally done by introducing mobile technology that has help avail secure and fast commerce to the public. Mobile commerce therefore has key components and features that make it distinctively unique (Laudon & Laudon, 2015). According to Forrester Research, mobile commerce has been project to grow tremendously in future. The following diagram indicates the growth. The components and features of M-commerce The mobile storefront module -is a very fundamental component of the mobile commerce application. Here, each commodity and service has been compiled and categorized allowing the customer to easily browse and identify the kind of items on sale they need and at the same time acquired fundamental information regarding the products (Metaoption, 2015). The mobile ticketing module- is the second component of mobile commerce app. It is closely related to the promotional sphere of the commercial business. It allows vendors to completely attract customers by making the distribution of coupons, tickets and vouchers. The other component of the mobile commerce is the mobile customer support plus information module-this is a reference point for information concerning a certain retailer, its deals and offers. The company news, locations of the shops, and available discounts could be pushed to the mobile commerce application of the user or made available within the mobile commerce application itself (Metaoption, 2015). The selling processes through mobile commerce applications are inextricably linked to mobile banking because there are no purchases that can be concluded without making payments. Mobile payments execution have got several options including mobile billings that are direct, SMS payments, payments via credit cards through a mobile interface that is familiar and finally making payments at POS terminals that are physical with the NFC technology (Metaoption, 2015). There are some unique characteristic features that equip the Mobile Commerce. They include: Ubiquity: this means that a user is able to avail services and conduct transactions that are to a large extent independent of the current geographic location; it has the anywhere feature built in it (Xiaojun, Junichi, & Sho, 2004). Immediacy: this feature is very attractive for time-critical services and at the same time demands a fast time reaction for example a broker’s stock market information. Localization: this involves to position technologies like GPS (Global Positioning System) and allowing a company to offer services and goods to the user that are specific to his or her current location. Other features include instant connectivity, Pro-active functionality and simple authentication procedure (Tiwari & Buse, nd). The 8-second rule The eight-second rule is an ancient internet rule. It focuses on roughly measuring the web server performance. The implementation of the rule occurred when the internet was slowly the first steps. It held that if a Web page loaded for more than eight seconds, the user of the internet will no longer be able to wait. Webmasters and Companies are hence should therefore make their website pages so simple such that loading them does not require much time and that they should not take more than eight seconds (Nah, 2004). It is therefore important for the mobile commerce applications to be simple such that loading them does not take more than eight seconds. Otherwise customers may not be willing to await any longer than that. It advised that animations should be avoided as much as they may be attractive because it reduces the download speed. The eight-second rule is therefore a perquisite for the mobile commerce technology. Mobile phones together with other devices that are handheld provide internet connectivity of high speed hence forming the M-commerce basis. So long as there is high mobile phone connectivity, one can sell, shop, pay and generally trade online anywhere and at any time in the world. When the speed is low, the customer tends to be impatient. When electronic transactions tend to take so long, the customer may become nervous (Nah, 2004). Importance of keeping records It is essential for the providers of the mobile commerce to keep the records of the purchase history of their users for the efficient running of the whole business. When mobile providers engage mobile commerce, they allow their customers to practice behaviors that are very sophisticated. They also have possibilities of reducing the churn rates and at the same time keeping the customers even much longer. Getting the records of the customers and getting into longer terms with them helps the service providers to know the market trends and the preferences of the customers. As a result therefore, they develop services and products that are specifically meeting the wants and needs of the consumers. The service providers are hence able to produce tailor made or customized products distinct to the desires of the customers. Problem The concerns of the mobile commerce user A mobile commerce user has got several things that worry him or her such as electronic payments that are not same, giving out personal information, gathering of data as a user liability. However the biggest concerns about using the application are that of security. Users fear for their security because the application may require them to give out their personal data and a lot of information about them such as cell phone numbers, email address, and place of residence. The customer may not be very comfortable sharing such personal information due to reasons that may be personal. Contemporarily, there are a lot of summers and fraudsters. Anything that involves the internet is therefore a threat. The customer may be afraid of giving out personal information because they might risk being duped. Scums on the other hand are as wide spread as viruses. People are determined to hack into accounts and spread their malicious missions. This hence makes the most outstanding challenge for the m-Commerce providers. How the technology affects my life The wide spread of the technologies could possibly affect my life in two concrete ways. First it can be positively effective in that buying and selling commodities will be very easy. Transactions are carried out at the comfort of the house without any hustles of reaching a shop. The deal is therefore very convenient and makes work easier. However, there are some risks associated with it. The business has nothing tangible to hold on other than trust. The customer trusts that the service provider wills provider original products and good deals as much as they are not guaranteed. There is a risk of fraudsters who could use my personal information to dupe me in future. Solution The service providers can solve the problems associated with their application through tightening their security systems. They should ensure that they files are properly encrypted such that hackers may not get any access. The providers should always reassure their customers that they personal data are safe and that they should not worry about being duped. The service providers should win the trust of the customers by providing quality products and services. Nevertheless, the providers of the Mobile commerce have so far reinforced their security and take the security issue with utmost priority. The following diagram shows how the security system looks like. Conclusion In conclusion, the world is evolving at a very high rate. Technologies are advancing rapidly and people are striving to make life easier. Mobile commerce is therefore an advanced model of the general electronic commerce. It is very important because it makes it easier for people to sell and purchase the products and services of their choice from anywhere they are at any time. As much as the technology might involve certain security concern, it is among the best technologically driven commerce ventures. Recommendations The mobile commerce is a brilliant business idea. However, the service provides should reassure their customers that the technology can be reliable by providing services and products of quality. The reassurance of the customer that they are dealing with a technology that is legit will make the service providers to attract more customers. The service provider should also stick to the eight second rule in order to attract customers. A customer will not want an application that downloads for more than eight seconds and in any case, the providers may lose the customer. List of References Laudon, K., & Laudon, J., 2015, Management Information Systems-Managing the Digital Firm. Retrieved November 18, 2015, from www2.sta.uwi.edu: http://www2.sta.uwi.edu/~anikov/info1400/lectures/10-ITF-video-case-1-Mobile-Commerce-Where-Are-We-Now.pdf Metaoption, 2015, Components, Features and Development of M-Commerce Applications. Retrieved November 17, 2015, from www.metaoption.com: http://www.metaoption.com/Articles/74-Components-Features-and-Development-of-M-Commerce-Applications.aspx Nah, F., 2004, A study on tolerable waiting time: how long are Web users willing to wait? . Behaviour & Information Technology, forthcoming, pp. 1-37. Tiwari, R., & Buse, S. (nd). The Mobile Commerce Prospects: A Strategic Analysis of Opportunities in the Banking Sector. Research Project Mobile Commerce , pp. 1-183. Xiaojun, D., Junichi, I., & Sho, H., 2004, Unique Features of Mobile Commerce. Retrieved November 18, 2015, from www.is.me.titech.ac.jp: http://www.is.me.titech.ac.jp/paper/2004/other/ebiz_ding.pdf Read More