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«Maastricht School of Management FHR Lim A Po Institute MBA VI Master of Business Administration Program 2009 – 2011 Maastricht School of Management ...»

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Maastricht School of Management FHR Lim A Po Institute

MBA VI

Master of Business Administration Program

2009 – 2011

Maastricht School of Management

What Are The Main Determinants for the Attitude to use

Mobile phone Application in Suriname

BY

Lloyd S. Banda

SURINAME

December 2011

Supervised by: Dr. Elstak Mirdita PhD

This thesis was prepared under the conditions and requirements for the degree of Master of

Business Administration (MBA) from Maastricht School of Management (MSM), Maastricht, the Netherlands and the FHR Institute for Social Studies (FHR) This page is intentionally left blank

ACKNOWLEDGEMENTS

First of all, I would like to give thanks to God. His grace made it possible for me to start and finish this MBA program.

Secondly of all I would like to thank my employer, Telesur for giving me the opportunity and support to attend this MBA program.

I am very grateful to my supervisor, Elstak Mirdita, who agreed to supervise my thesis without any hesitation. Her critical comments, suggestions, insight, strategy, tactics and motivational words have inspired me to perform well.

Special thanks are expressed to Dirk Currie, the CEO of Telesur for allowing me to do this study.

His support has kept my spirits up. Also, I am grateful to Steven Tjitrotaroeno for her insights and comments which improved my thesis.

I also want to express my gratitude to all my colleagues of Telesur who have supported me throughout the program.

A special thanks to Hans Lim A Po and Olly Chin A Sen and their team for giving Surinamese citizens the opportunity to develop their knowledge amongst professionals.

Most of all I would like to dedicate this thesis to my loving wife, Elvy Enny and daughter, Fariel and sons Miguel, Serchinio and Shaqualle who have supported me in countless ways.

All these people have helped to make this MBA program a valuable and unforgettable learning experience.

Lloyd S Banda Paramaribo, December 2011 ABSTRACT Where the mobile phone used to be offered solution for business people with a busy schedule, this device is difficult to imagine today's society. Yet the function of the mobile phone over the years been subject to considerable change. Where the device was originally intended as communication, there are plenty of options added.

One of the most recent developments is the emergence of mobile application. Rapidly infrastructures are built and under high competitive pressure from various angles content is developed. The expectations from the market are high. Nevertheless, there are also comments on the demand for this type of product / application. Is there enough interest in this product / application to make a success? If there is no market for mobile applications, there can be little earned from the investments made.

This research focuses on aspects of mobile application users, with the idea that the product will never succeed when there is no demand. How does the Surinamese consumers across mobile applications and what factors determined this attitude? And how would the current market situation can react so that the chances of success be increased? These are questions that this research will focus on.

Whether the alleged relationships as shown in the model match the reality is tested using a survey research. 132 respondents completed the online survey. Through this survey the model could not only be tested for reliability, but could also be based on the model conclusions about the current perception of the users, on various determinants. The investigation revealed that only three of the supposed relationships of the model actually present. The statistical analysis showed that this was due in large part by high correlations between certain variables. This has consequences for the model as it was drawn from the theory. Besides this theoretical conclusion could also answer to the question of how the adoption of mobile application could be promoted.

The study showed that the current use intention are very poor and that this largely due to a neutral perception of the product and the negative perception of the image. These aspects should be further boosted by providers by informing consumers about the benefits and possibilities of mobile application.

TABLE OF CONTENTS

Contents ACKNOWLEDGEMENTS

ABSTRACT

TABLE OF CONTENTS

Introduction

Chapter 1 General view

1.1 Importance and Relevance of the subject area

1.2 The Telecommunication market in Suriname

1.3 Research Objective

1.3 Research Questions

1.4 Research strategy and methods

1.5 Literature Review

Chapter 2 Introduction

2.1 Factors that affecting attitude

2.2 Perceived Enjoyment

2.2.1 Perceived Ease to Use

2.2.2 Compatibility

2.2.3 Image

2.2.4 Perceived Usefulness

2.2.5 Attitude and Intention to use

2.2.6 The Research model and hypotheses

2.3 Perceived enjoyment

2.3.1 Perceived ease of use

2.3.2 Compatibility

2.3.3 Image

2.3.4 Perceived usefulness

2.3.5 Attitude

2.3.6 The Conceptual Framework and Hypotheses

2.3.7 Methodology

Chapter 3 Introduction

3.1 Questionnaire Design





3.2 Data collection

3.3 Pilot test

3.3.1 Main survey

3.3.2 Measures used in this study

3.4 Data analysis procedure

3.5 Reliability and validity

3.6 Findings

Chapter 4

4.1 Introduction

Preparation of the data

4.2 Demographic profile of respondents

4.3 Descriptive statistics

4.4 Substantive analysis of the questionnaire

4.4.1 Inferential statistics

4.5 Hypotheses Testing with Regression analysis

4.5.1 Regression analysis for intention to use

4.5.2 Regression analysis for attitude

4.5.3 4.5.4 Regression analysis for all independent variables with intention to use as dependent variables 40 Summary of Results on Hypotheses Testing

4.5.5 Conclusion

Chapter 5 Answer the Research question

5.1 Theoretical implication

5.2 Consequences for the practice

5.3 Discussion & Recommendation

Chapter 6 Chapter overview

6.1 Research progress and issues

6.2 Theoretical Recommendations

6.3 Managerial Recommendations

6.4 Bibliography

Pre-test questionnaire- Dutch language

Appendix A.

Main questionnaire- English language

Appendix B.

APPENDIX C: Substantive analysis of the determinants

APPENDIX D: Regression analysis

Reliability of all variables

APPENDIX E.

APPENDIX F: Respondent frequency profile

APPENDIX G: Regression analysis all variables on intention to use, including demographics............... 86

–  –  –

Do you know how many people in Suriname are without a mobile telephone? Almost everyone has some kind of mobile device like a mobile phone or smart phones and to use it in the everyday life is understood. The concept of the mobile application has lately become a trend and has a great impact on our daily lives. The way we are using our mobile devices has changed and the expectations on those devices have increased. In a fairly rapid tempo has this small device convinced consumer it's impossible to imagine life today without the application on the mobile phone.

Mobile applications are a rapidly developing segment of the global mobile market. They consist of software that runs on a mobile device and performs certain tasks for the user of the mobile phone. Mobile application, referred to as system operating on mobile device, are evolving rapidly, making ubiquitous information access at anytime and anywhere a true reality [ Kaasinen, Aaltonen, Kolari, Melakoski, & Laakko, 2000].

Mobile applications are common on most mobile phones today. They are key to providing user interfaces for the basic telephony and messaging services, as well as for more advanced and entertaining experiences such as playing games, browsing and watching video on mobile phones.

Many mobile applications come pre-installed on mobile phones e.g. SMS/MMS client, browser, music player, whereas other may be provisioned and configured post sales by means of maintenance management in shop of over the air. Application on mobile phone are a natural extension to the current wired infrastructure. A variety of applications targeting the consumer is now available in the market. The mobile applications enabling Business to Business (B2B) and Business to Consumer (B2C) transactions are rapidly becoming mainstream along with other shrink-wrap software products. In the business, a variety of people including road warriors, sales, and service professionals, are being equipped with on-the-go computing capabilities using mobile technologies for the entertainment, education, communication, work, and other sectors.

Mobile phones nowadays have grown beyond their fundamental role as more than a communication tool and now thanks to the new development a personal bond between the user and his mobile has emerge. We are witnessing an era when users buy mobile phones not only to be in contact with others, but to express themselves, their attitudes, feelings and interests to express. Customers demand more from their Mobile. They use their mobile phones to play games, read news, browse the Internet, keep a tab on astrology, and listen to music, others use it to make music, or check their bank balance.

1.2 Importance and Relevance of the subject area

Most cell phone users don’t know much about their operating system and its potential. That is one of the main problem in my opinion. The most common applications like telephone, SMS and in the meantime camera functionalities are widely used. But a cell phone in today’s society is not only a tool for telephoning and writing SMS. It is a personal item which provides entertainment and information. The application on the mobile phones have changed the style of live of all kinds of consumers, especially those in younger generations. The most youth and school children have owned at least one mobile phone. The mobile phones offer a range of applications, from telephone conversation and simple text messages (SMS), to multimedia messaging services (MMS) and Internet access, depending on the capability of individual mobile phones and the services available. According to [Abdul Karim, Darus and Hussin, 2006] these applications have been made possible through various developments in mobile telephone technology such as GPRS, WAP and the 3G standard.

The importance of the study stems mainly from the importance of the technology itself, because it is found that the application on the mobile phone are the most attractive and rapidly growing technologies of our time. The study on how and why consumers focus on (new) technology and mobile application can be relevant and important for both providers and customers. Increased use of mobile technology is also an important reason for studying the adoption.

Some of the new information and commercial technologies and applications are examined in the past and mobile technology is one of them. Mobile applications have been developed and used in different areas. Pervasive and ubiquitous mobile technology has penetrated both the personal and business domains. Mobile application has an impact on consumers because they offer all universal access to information and services, as well as an opportunity for a unique and personal exchange of information (Watson et al., 2002). As a result, for using mobile devices in their daily life, a way have been created to stay in touch with the rest of the world to communicate and network. New technology is said to be inseparable from everyday life [Weiser,1991]. According to [Dahlberg et al., 2008] consumers power is undoubtedly one of the more important factors that makes adoption a success, it is also a research area that receives much attention The study can be useful for organizations that are planning to introduce mobile application and are faced with lack of comprehensive understanding of mobile application user environment.

1.3 The Telecommunication market in Suriname

The government owned company the Telecommunication Company Suriname [Telesur] had a monopoly since the April 2007 when the mobile market was liberalised. From this moment onwards and with the introduction of prepaid telephone the number of users of a mobile phone grew rapidly. The total population of Suriname consist of 492,829 people [ABS 2005].

According to [IMWO, 2007] in 2007, 76% of the Surinamese population had a mobile phone The recent developments of the mobile industry in the Surinamese market and the rapid changes and developments of mobile phones worldwide make it necessary for the telecom providers to effectively reach their target groups.

–  –  –

The intent to acceptance in this investigation is measured on the basis of the intent of the consumers in order to use the product (behavioral intention to use). The intention to use the product can be treated as equivalent to the intent to acceptance of the application by the consumer. If the consumer the intention to make the application to be used, then it is assuming that this new application which has accepted and thereby intent has developed. This intent to acceptance is measured on the basis of a compound model in which the technology acceptance model and the innovation or diffusion theory these are the two main. A key variable in the whole, the attitude, which can influence all the construct

The following main research question was formulated:

What are the main determinants of the attitude towards mobile apps and how does this attitude impact the use of mobile apps.

–  –  –



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