Topic Analysis Impact of Consumer Trust on Mobile Commerce

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Information Technology and the Future

Topic Analysis

Impact of Consumer Trust on Mobile Commerce


Anjana Chatterjee

INFO 5303, Fall 2010

MBA Program

Oklahoma Christian University

Instructor: Dr. Kimberly Merritt

Mobile commerce is relatively new in the arena of ecommerce but is exploding in growth. Mobile commerce is broadly defined as commercial transactions conducted over mobile devices and wireless networks. Rapid development of mobile devices and technologies such as the iPhone and speed of 4G are fueling the growth of mobile devices. Offices, schools, colleges are buzzing with smart phones, and large numbers of applications for these mobile devices are being developed and delivered to the consumers almost daily. However, businesses have not yet taken advantage of the rapidly growing mobile commerce phenomenon. MCommerce is still struggling as shoppers and retailers grapple with privacy and security issues. This had led companies to slow down development of their mobile commerce plans. Perez quotes “Jeffrey Grau, eMarketer senior analyst, says ‘most retailers are either standing on the sidelines or in the midst of planning their mobile commerce strategy’ “(Perez, 2009).

Trust has been a key issue in business transactions because of the exchange value involved. It develops over time and with repeated positive experience. Consumers feel more secure when they can rely on the services that merchants deliver. Innovative new technologies are always met with caution and suspicion, as there are no prior experiences to draw from. For this reason, the perceived risk is higher for these technical offerings. Ecommerce has its own share of trust issues regarding security and privacy that consumers, retailers and the government are trying to come to grasp with. The mobile commerce environment differs considerably from the e-commerce environment where businesses are conducted over wired Internet....