Melbourne Institute: MCommerce in Australia - Report and Analysis

This report examines the trends and facts related to e-commerce and m-commerce in Australia, based on an analysis of the article, “E-commerce marketplace in Australia: Online shopping”. It provides an overview of m-commerce, highlighting its evolution and impact on customer buying behavior, emphasizing the shift from traditional shopping to mobile transactions. The report explores the factors influencing m-commerce, including technology and customer preferences, with graphical representations of m-commerce growth. It also discusses the advantages of mobile banking and the benefits of mobile commerce from a business perspective, comparing mobile applications and websites. The report also addresses customer service and privacy concerns in m-commerce. The conclusion emphasizes that while technology has played a role, the changing customer perception has significantly contributed to the growth of m-commerce in Australia.

MOBILE COMMERCE IN AUSTRALIA

INTRODUCTION
• The main aim of this report is to
study the trends and facts related
to ecommerce and mcommerce
highlighted in the article titled, “E-
commerce marketplace in
Australia: Online shopping”.
• The article presents a description
of the reasons behind the growth
of ecommerce and mcommerce.

MCOMMERCE: OVERVIEW
• Mcommerce or mobile commerce may be
explained as any kind of transaction which
includes a monetary exchange through
telecommunications network.
• The article paints a vivid picture of how the
modes of communication and buying
behaviors of customers are rapidly evolving
with each passing day. Shopping and other
commercial transactions are no longer
restricted to fixed locations. The new
technologies in the arena of smartphones
have completely transformed the
marketplace.

A GLIMPSE INTO MOBILE COMMERCE TRENDS
• According to the article, the main
purpose of mobile commerce is to
provide for a more holistic approach
to online purchase and transactions
through smaller screens. This
opportunity makes it possible for
customers to buy goods or pay their
bills on the go. The need of the
hour is to develop responsive
designs and mobile friendly
applications which would be
beneficial for both the customers

FACTORS AFFECTING MOBILE COMMERCE

A GRAPHICAL REPRESENTATION OF MCOMMERCE GROWTH IN
AUSTRALIA
81 % of business
owners have adopted
mobile applications.
82 % of these mobile
websites have generated
optimized sales.
54% sellers selling products
through mobile applications
registered high sales rates than
traditional mediums.

TECHNOLOGY AND ECOMMERCE
• Chong (2013) argues that more than
technology, it is the increased capacity
of mobile phones which has made it
possible for customers to carry out
such monetary transactions on the
internet.
• In other words, technology has paved
the way for development of mobile
services and delivery of various kinds
of content to the concerned customers
through mobile phones.

MCOMMERCE FOR BANKING
• The article also claims that a
majority of Australians tend to
use mobile commerce mainly for
bill payments and other phone
banking transactions
(Aboelmaged & Gebba, 2013). On
the other hand, only about three
per cent customers bought goods
and services through their
phones.

ADVANTAGES OF MOBILE BANKING

CUSTOMER PREFERENCES IN MCOMMERCE
• According to Yadav, Sharma and Tarhini
(2016), there are quite a few factors as
to why people prefer mobile
commerce over ecommerce or
traditional means of shopping.
• Businesses in Australia and around the
world need to realize that customers
today are extremely tech savvy and
would prefer to use websites that are
mobile phone compatible and only a
click away.

CUSTOMER BUYING BEHAVIOR IN MCOMMERCE
SOCIAL
INFLUENCES
MARKETING
INFLUENCES
SITUATIONAL
INFLUENCES
Need
recognition
Information
search
Alternative
evaluation
Purchase
decision
Postpurchase
evaluation

BENEFITS OF MCOMMERCE
• It must be asserted that
mobile commerce is
extremely beneficial from a
business point of view as
well. Nilashi et al., (2015)
speaks about the importance
of mobile ecommerce from a
business owner’s perspective.

BENEFITS OF MCOMMERCE

WEBSITES VS. MOBILE APPLICATIONS
• Research has shown that
mobile applications tend to
be faster and more user
friendly than ordinary
websites. Customers no
longer have to google for
products and services, they
can simply login to the app.

COMPARISON OF MOBILE APPS AND WEBSITES

MCOMMERCE AND CUSTOMER SERVICE
• Another major benefit of mobile
commerce, which the article fails
to discuss, is the fact that mobile
applications allow companies to
directly communicate with their
customers. Nirajanamurthy et
al., (2013) argues that this is one
of the most important
advantages of mcommerce.

MCOMMERCE PRIVACY CONCERNS
• Eastin et al., (2016) claims that
one of the major obstacles in
mcommerce is mistrust on part of
the customers. Many customers
are not willing to divulge their
personal information or banking
details online, given the increasing
number of cyber crimes and cyber
criminals who are ever on the
prowl for such data.

CONCLUSION
• A critical evaluation of the chosen article
shows that mobile commerce is the future
of ecommerce around the globe.
• The article studies mobile commerce and all
that it entails, based on statistical evidence
obtained consumers in Australia. However,
the article claims that the advancement in
the field of mobile phones is what triggered
the growth of ecommerce. Yet, it must be
argued, as shown in the report above, that
more than technology it is the changing
perceptions of customers that have
contributed to mcommerce development.

REFERENCES:
• Aboelmaged, M., & Gebba, T. R. (2013). Mobile banking adoption: an examination of technology acceptance
model and theory of planned behavior. International Journal of Business Research and Development, 2(1).
• Chong, A. Y. L. (2013). Mobile commerce usage activities: The roles of demographic and motivation
variables. Technological Forecasting and Social Change, 80(7), 1350-1359.
• Eastin, M. S., Brinson, N. H., Doorey, A., & Wilcox, G. (2016). Living in a big data world: Predicting mobile
commerce activity through privacy concerns. Computers in Human Behavior, 58, 214-220.
• Nilashi, M., Ibrahim, O., Mirabi, V. R., Ebrahimi, L., & Zare, M. (2015). The role of Security, Design and Content
factors on customer trust in mobile commerce. Journal of Retailing and Consumer Services, 26, 57-69.
• Niranjanamurthy, M., Kavyashree, N., Jagannath, S., & Chahar, D. (2013). Analysis of e-commerce and m-
commerce: advantages, limitations and security issues. International Journal of Advanced Research in
Computer and Communication Engineering, 2(6).
• Yadav, R., Sharma, S. K., & Tarhini, A. (2016). A multi-analytical approach to understand and predict the
mobile commerce adoption. Journal of enterprise information management, 29(2), 222-237

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