The Niche in Mobile Money Adoptions

Abstract

Integrated Marketing Communication (IMC) is an aggressive marketing plan that captures and uses an extensive amount of customer information in setting and tracking marketing strategy. This study sought to investigate the IMC strategies used with the M-PESA money transfer services in Kenya. The study was necessitated by the fact that similar mobile money transfer services existed in Kenya but did not experience the same success in uptake and use as MPESA. The objectives of the study included identification of strategies and techniques used by Safaricom in the diffusion of information of the service and in effect its adoption; whether the rapid adoption of the Service could be linked to the IMC strategies used; comparison of the strategies used to diffuse M-PESA with those used with Airtel money by Airtel; identification of the challenges faced in IMC strategy development and implementation; and recommendations on effective use of IMC strategies in the adoption of innovations. Two theories informing the study were the Theory of Planned Behavior and the Information Processing Theory. Literature reviewed explored prerequisites to effective adoption of innovations succinctly interpreting key concepts in IMC and closely interpreting the diffusion of innovations theory in respect to technology adoption specifically the mobile money innovation; M-PESA and exploring models that supported adoption of innovations. The study was based on the interpretive research paradigm. It focused on the understanding of how people Interpreted the rapid adoption of M-PESA money transfer services in terms of the strategies adopted by Safaricom in the deployment of the product compared to other competing products. The population was sampled using both purposive and non purposive sampling procedures. A sample of 48 constituting users, agents and Safaricom officials participated in the actual research. Areas of concern included an exploration of critical and unique features of the product necessitating the rapid adoption and design and implementation strategies adopted by Safaricom Company. Data collection methods included interviews, a focus group discussion, the survey method, observation and content analysis complimented by knowledge gained from product launches and agent seminars. Secondary data was mainly from electronic Journals and research findings by other scholars and was useful in rating the uptake and use of Airtel money and the strategies used in its implementation. Data was analyzed using the computer aided Statistical Package for Social Science (SPSS). The findings of the study confirmed that Safaricom had used IMC strategies befitting their target market compared to its competition to diffuse information on the M-PESA innovation and thus the success of its adoption may be attributed to the unique IMC strategies they used.