Consumer Intention And Use Of Mobile Payment Services In Kenya

ABSTRACT

The problem in this study was that despite clear evidence from the literature that actual technology usage is a critical stage in the adoption process; drivers influencing mobile payment use remain under-researched in Kenya. In this study Consumer behavior intention was conceptualized as a predictor of actual use of mobile payment services in Kenya as evidenced from the literature. The study was guided by the following specific objectives; determine the influence of extrinsic and intrinsic motivation factors on consumer intention to use mobile payment services in Kenya; determine the influence of demographic factors (gender and education level) on consumer intention to use mobile payment services. Assess the influence of consumer behavior intention to use mobile payment services and actual behavior use. Grounded on the unified theory of acceptance and usage of technology (UTAUT), eight hypotheses were tested in the study by modifying UTAUT to accommodate perceived enjoyment and test demographic factors influence in a direct relationship rather than control variables as tested in the original theory. A descriptive cross- sectional survey was carried out and the population of the study was all the 26m subscribers of mobile payment services in Kenya as at December 2014. A sample of 680 respondents was selected using stratified random sampling. Primary data was collected using a questionnaire that was administered to the consumers visiting customer care centers of the three major mobile companies (Safaricom, Airtel and Orange) situated in Nairobi, Mombasa, Nakuru and Eldoret realizing a response rate of 77%. Data analysis was carried out using Statistical Package for Social Sciences (SPSS) where descriptive statistic, Factor analyses, reliability testing, t test, ANOVA and multiple regressions were undertaken to test the hypothesis. P- Value statistic was used as method of testing the hypothesis where the study findings revealed that significant factors included; perceived usefulness, perceived ease of use, perceived enjoyment and education level while gender , social norms and social image were not significant. In addition a significant difference was established among the genders where perceived enjoyment was found to influence more women than men. The study also found out that consumer behavior intention significantly influenced the actual behavior to use mobile payment services. Coefficient of determination R2 of 0.43 implied that at 95% confidence level, 43% of the variation of consumer intention to use mobile payment can be explained by the factors included in the study. Lastly, Perceived usefulness had the strongest influence on consumer behavior intention to use mobile payment services in Kenya. This study contributes to theory by developing and empirically testing a modified unified theory of acceptance and use of technology (UTAUT) of testing consumer behavior intention drivers and actual use of mobile payment services in Kenya. The result confirms the effectiveness of UTAUT framework for conducting studies in actual mobile technology usage at individual level. The study also extends the body of knowledge by establishing that both intrinsic and extrinsic motivation factors influence consumer intention to use of mobile payment services in Kenya and intrinsic factors had the strongest influence. More over the study also establishes gender difference where perceived enjoyment had a stronger influence on women than Men. This is important information to the developers and marketer of the mobile innovations in Kenya and also at the global level where mobile payment services are still at the introductory stage.