From physical to digital: what drives generation Z for mobile commerce adoption?
| DOI | https://doi.org/10.1108/JABS-05-2020-0207 |
| Published date | 09 September 2021 |
| Date | 09 September 2021 |
| Pages | 732-747 |
| Author | Deepti Verma,Vaibhav Tripathi,Ajai Pratap Singh |
From physical to digital: what
drives generation Z for mobile
commerce adoption?
Deepti Verma, Vaibhav Tripathi and Ajai Pratap Singh
Abstract
Purpose –This study aims to identify factors affecting generation Z as the early adopters of mobile
commerce (m-commerce). The research seeks to explore their behavioral intention to adopt m-
commerce in India with consideration of gender differences while providingempirical validation for the
theory of plannedbehavior (TPB).
Design/methodology/approach –In this study, a modified TPB model has been used to explain
generation Z’s intentionto adopt m-commerce. The proposed model was testedusing a survey method
with a sample of 245 students from a private university in Northern India. Subgroup analysis was
performedto find gender differences in the processof adopting m-commerce.
Findings –All three independent constructs have a positive influence on the behavioral intention of
generation Z to adopt m-commerce. Further, the male subgrouphas a lower beta value for attitude and
higher beta value for subjective norm in comparisonto the female subgroup. For perceived behavioral
control,no significant difference in beta value across gender could be established.
Practical implications –A better understanding of generation Z behavioral intentions will be of great
use to telecom companies, marketers and electronic commerce companies to formulate strategies to
expedite the use of m-commerce. As gender plays an important role inattitude and subjective norms,
companiesare advised to target their communication tacticsin accordance to gender.
Originality/value –To the best of the authors’ knowledge, this studyis one of the first to test TPB and
generation Z associationin the context of m-commerce adoption in India. Dataregarding the difference
betweenthe two genders has also shed light on theuniqueness of the context.
Keywords Subjective norm, Theory of planned behavior, M-commerce, Perceived behavioral control,
Buying intention, Generation Z, Attitude
Paper type Research paper
1. Introduction
The growing popularity of mobile devices and the proliferation of mobile technologies has
led to the emergence of mobile commerce (m-commerce) as a new business phenomenon
(Zheng et al.,2019). m-commerce refers to the business activities conducted through
internet-enabled mobile devices (Ko et al., 2009). Compared to electronic commerce, m-
commerce offers a unique set of advantages such as instantaneity, ubiquity, localization,
personalization and identification (Wang et al., 2015). Mobile technology is a new, fast-
growing marketing communication tool that has evolved, and in India, it is supposed to
surpass electronic commerce (Nielson report, 2013). This shift from “e” to “m” happened
quickly (Business World, 2014). As envisaged by the Government of India (GoI) in their
“Digital India” 2019 vision document, the aim is to achieve a leadership position for India in
the field of information technology (IT). According to Deb and Agrawal (2017), until every
Indian adopts digital channels to access a wider range of financial and non-financial
services, the GoI’s initiatives for “Digital India” cannotbe realized.
Deepti Verma is based at
Institute of Business
Management, GLA
University, Mathura, India.
Vaibhav Tripathi is based at
School of Business and
Management, Christ
(Deemed to be) University,
Delhi NCR Campus,
Ghaziabad, India.
Ajai Pratap Singh is based
at Department of Applied
Psychology VBS,
Purvanchal Univerisity,
Jaunpur, India.
Received 27 May 2020
Revised 17 August 2020
7 October 2020
Accepted 13 October 2020
PAGE 732 jJOURNAL OF ASIA BUSINESS STUDIES jVOL. 15 NO. 5 2021, pp. 732-747, ©Emerald Publishing Limited, ISSN 1558-7894 DOI 10.1108/JABS-05-2020-0207
In India, smartphones have come to be viewed as almostessential necessities. Smartphone
users in India are expected to increase from 260 million in 2016 to around 450 million by
2021, which is also likely to drive the m-commerce sales from US$10.5bn in 2016 to US
$38bn in 2020 (Deloitte Report on Unravelling the Indian Consumer, 2019). The report on
“M-Commerce Market –Forecast” (Industry Arc Report on M Commerce Market, 2020/
2025), by IndustryARC says the M-Commerce Market is forecast to reach US$425bn by
2025, after growing at a compound annual growth rate of 29.84% during 2020–2025. Owing
to advancements in mobile technology, there is a boost in the m-commerce market by
making it accessible from anywhere on the planet, which will help in enhancing m-
commerce, thereby having a positiveimpact on the market growth (Industry Arc Report). As
of now, a large number of consumers are using mobile phones for shopping. m-Commerce
is progressing because of the quick advancement of present-day wireless communication
technology and the high penetration rate of the internet (Lee,2016).
For billions of people around the world, including many youngsters, the smartphone has
become a necessity. The maximumallowed amount of time is spent on networking, gaming,
chatting and sending SMS by these youngsters (Chong, 2013). Even though m-commerce
as a system of business seems to have tremendous potential in India, there is a shortage of
research about the buyers’ ability to embrace this new wireless electronic platform. An
important factor in this new digital culture is age, and because of the difference in age,
there is a difference in expectations among consumers also(Lee, 2009).
The utilization of mobile phones with new technological developments has turned out to be
more common for this age cohort, which is called generation Z. This younger generation
shows more tendencies towardthe use of modern technology (Hanafizadeh et al.,2014). As
compared to their older counterparts, this generation has come to be seen as more
imaginative and risk-taking. This also plays an essential role in influencing the purchase
decision-making process in the family. Therefore, this study endeavors to investigate
generation Z’s acceptance behavior toward m-commerce. The reason behind considering
this generational cohort is its familiarity and connectivity with technology since birth (Fister-
Gale, 2015;Bassiouni and Hackley, 2014) and its temperament as a driver of innovation
(Morgan, 2016;Wood, 2013). This paper is a pioneering study in the research field toward
the adoption of m-commerce by generation Z, analyzing at the same time the subgroup
analysis of gender.
This study contributes to the existing literature by addressing the following impor tant gaps.
First, although empirical research on m-commerce is growing in India (Pandey and Chawla,
2019;Singh and Srivastava, 2019;Gangwal and Bansal, 2016), it is still limited. More studies
are needed because this is a dynamic area with continuous technological adv ancements that
have an impact on the online retail market and consumer expectations and e xperiences.
Second, the epicenter of the study is generation Z, where there is a dearth of empirical
studies in the field of marketing. This generation seems to be the most significant future
marketing challenge as it is the driver of innovation and change (Morgan, 2016;Wood,
2013). This generation has enormous spending power, and according to a 2019 Bloomberg
report, Gen Z made up for 32% of the global population, with India’s Gen Z population at
472 million. Thus, it is expected to heavily influence marketing practices both from a
technological and product-specific point of view.
Third, consumer behaviors and intention, as well as the aspiration to fulfill them, form the
foundations of all classicaland modern marketing concepts (Baruk and Iwanicka, 2016). As
expectations are consistent with the market’s evolution (Steiner et al., 2016), it is important
to explore Gen Z behavior intention regardingm-commerce, as Gen Z has more power than
any previous generation toredefine usage.
The study is structured in six sections. Following the Introduction, Section 2 discusses the
theories related to the variables under study. In this section, a rigorous literature review is
VOL. 15 NO. 5 2021 jJOURNAL OF ASIA BUSINESS STUDIES jPAGE 733
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