Factors Affecting Consumer Adoption And Usage Of Innovative Mobile Service Offerings In Nairobi

Abstract

The aim of the study was to find out the reasons for low adoption and usage of services provided by mobile network operators, by identifying and analyzing the factors which influence adoption and use of these services by consumers. The objective of the study was to determine customer awareness of different mobile services, to establish the factors which lead to utilization of mobile service, and to establish the challenges customers are facing when using different mobile services. The research was conducted in the form of a descriptive survey. The population of the study consisted of consumers of mobile services in Nairobi, and of ages ranging from 15 to over 55. Stratified random sampling was used to randomly select the units of analysis. Interviews were conducted at the homes of respondents, in the streets and at shopping centers. Factors identified as affecting adoption and usage of mobile services by consumers included awareness, affordability, ease to use, customer value and availability. Affordability was a major issue of concern, with most respondents complaining of the calling rates across networks and the cost of accessing internet and email as being prohibitive. A substantial number of respondents found services difficult to use with a number of services having complicated setup steps. However, consumers' will use a service as long as they consider it to be of high value to them, even though the service might be expensive or hard to use .Awareness and availability are not major contributors to adoption and usage of mobile phone services. Most services offered by the operators were available in consumers' handsets, and most respondents were aware of the services provided. The respondents indicated that their communication needs could be satisfied by services that are easy to use, affordable and are of value to them. Having a helpful customer care agent and a reliable network would also go a long way in meeting their communication needs. The implications of these findings are that service providers should design service that are affordable and easy to use, and that they should improve their customer care services