Impact of Mobile Wallets on Consumer Spending - Lab Report Example

Data analysis: Impact of mobile wallets on consumer spending Name: Tutor: Course: Date: Data Analysis The aim of this study was to assess the impact of adopting mobile wallets on consumer spending. It investigated the factors influence people to use mobile wallets and their habit on mobile wallets. As a result, it finds out whether or not mobile wallets would increase with consumer spending. i) Age of respondents Table 1: Age and education level of respondents Age Frequency %Frequency Education level Frequency %Frequency Under 18yrs 0 0% Undergraduate 82 89.13% 18-20yrs 22 23.9% Masters 9 9.78% 21-24yrs 69 75.0% PhD 1 1.08% 25-29yrs 1 1.1% Total 92 100.0% Over 30yrs 0 0.0% Total 92 100.0% From the table above, majority of the respondents 69(75%) were between 21 and 24 years of age followed by those aged 18-20 years 22(24%) with the level of education of most of them being undergraduate 82(89.13%). ii) Gender of respondents Table 2: Gender of respondents Gender Frequency %Frequency Female 51 55.43% Male 41 44.57% Total 92 100.0% As shown in the table above, the gender representation of the respondents in the study were almost equal. Female respondents were the majority with 51(55%) while the male respondents were 41(46%). iii) Popularity of mobile phones The study identified a number of mobile phones as; apple, android smartphones, blackberry, basic cellphones and window phones. As shown in figure 1 below, most of the respondents use Apple smartphones 74(80%) followed by those who use other Android smartphone system 18(20%). Interestingly, there was no respondent who was using blackberry, basic cellphones and window phones. Figure 1: Popularity of mobile phones among respondents iv) Frequency of making online payments using smart phones The figure 2 below shows that most of the respondents were making online payments 1-2 times a week 34(36.9%) followed by those who do the transactions 3-4 times a week (28.2%). Also, the graph shows that all the respondents have made one or more online payments. Figure 2: Frequency of making online payments v) Payments modes when making online payments Table 3: Payments modes for online payments As shown in the table above, the debit card was the dominant mode of payment (mean=1.34; SD=0.788) with variance closer to the mean. The skewness and kurtosis value were positive meaning that the variables were skewed to the right, while kurtosis 10.178) shows heavy tails with sharp peaks that are closer to the mean. Mobile wallets and credit cards shows less usage with higher mean values of 3.29 and 3.85 respectively. Specifically, mobile wallet SD was 1.614 and had negative values for skewness (-0.251) and kurtosis (-1.558). This implies that values were skewed to the left and had short tails with low peaks spread away from the mean. vi) Non-usage of mobile wallets H11: non-users of mobile wallets have reservations on their choice of use of mobile wallets H10: non-users of mobile wallets have no reservations on their choice of use of mobile wallets Table 4: Non-users of mobile wallets From the table above, the issues that non-users raised are significant. Particularly, non-users raise issues of identity theft (.474**; p=0.005) and the fear of storing sensitive information on their mobile phones (.476**; p=0.004). This shows that non-users have some significant issues or reservations on not to use mobile wallets. We therefore reject the null hypothesis and accept the alternate hypothesis that non-users have reservations towards the choice of mobile wallets. vii) Habits of mobile wallet users H21: Mobile wallet users have a tendency towards online spending habits H20: Mobile wallet users have no tendency towards online spending habits As shown in the table below, users of mobile wallets tend to buy high value products such as travel and luxury. This habit of spending is correlated to the use of mobile wallet to pay for Uber taxi services (0.310**; p=0.01), use of mobile wallet as an alternative to cash (0.391**; p=0.01), and use of mobile wallet to make better choices of larger than £5. This shows that mobile wallet users have certain habits that make them regular users of these services. We reject the null hypothesis and accept the alternative that mobile wallet users have a tendency towards online spending habits such as paying for Uber taxi services, making non-cash payments and when making purchases exceeding five pounds. Table 5: Habits of mobile wallet consumers viii) Factors that influence users to choose mobile wallets From the table below, using factor analysis, component one describes the use of mobile wallets more than it does for credit cards, debit cards, and online banking. Table 6: Factors influencing choice of mobile wallets As indicated in the table, the factor loading of ‘perceived ease of use’ (0.704) was the highest followed ‘perceived usefulness’ (0.623) and ‘convenience’ (0.511). However, the other factor loadings such as security, privacy and discounts offered had values lower than 0.3, and as a result were discarded. The study obtains that the key factors that influence the use of mobile wallets among consumers are; perceived ease of use, perceived usefulness and convenience. Similarly, correlations were used to identify the factors that influenced the use of mobile wallets among consumers. The data shows that mobile wallet users do not find it as a convenient payment method. The following hypotheses were formulated; H31: Customer attitudes influence the perception of mobile wallet as a convenient payment method H30: Customer attitudes do not influence the perception of mobile wallet as a convenient payment method In this case, a number of attitudinal factors were consider such as sensitivity of information, availability, susceptibility to hackers, technology failures and better rewards of credit cards. The correlation shows that customers identified technology failures (0.358**; p=0.01) and unavailability in stores (0.486**; p=0.01) influenced the perception of customer attitudes towards mobile wallet as a payment method for services and goods. However, there was no relationship between the convenience of the payment method and hacking, sensitivity of information and better rewards offered by credit cards. We reject the null hypothesis and accept the alternative hypothesis that customer attitudes influence the perception of mobile wallet as convenient payment method. Table 7: Correlation of factors that influence choice of mobile wallets ix) Impact of mobile wallets on consumer spending The impact that mobile wallets would have on consumers was investigated and reported in the table below. The results show that increased spending on mobile wallets was positively correlated with increased impulse buying (0.582**; p=0.01), frequency of use due to augmented services (0.482**; p=0.01) and greater discounts and rewards (0.543**; p=0.01). This indicates that mobile wallets tend to drive consumers into impulse buying and to enjoy augmented services such as apps and website access, and create loyalty among customers who enjoy discounts and rewards. Table 8: Correlation of impact of mobile wallets on consumer spending Furthermore, the impact of mobile wallets on consumer spending was investigated using regression analysis with a range of variables but which had impulse buying as above. The following hypothesis was considered; H41: Use of mobile wallets results in impulse purchasing H40: Use of mobile wallets do not result in impulse purchasing The results show the regression for the equation; Y = α + β1X1 + β2X2…+βnXn The model summary table shows that the equation was significant at p = 0.01 and the R2 =0.385 indicates an average model fit of the variables to the data. However, the beta values show that ‘mobile wallets lead users to make impulse buying’ was significant at (b = 0.429; p = 0.01). This confirms that impulse purchases are one of the results of using mobile wallets. We reject the null hypothesis and accept the alternative hypothesis that use of mobile wallets results in impulse purchasing. Table 9: Regression tables for impact of mobile wallets on consumer spending x) Summary The study investigated the impact of mobile wallets on consumer spending. Majority of the respondents were between the ages of 21 and 24 years with an undergraduate education. Apple smartphone is the commonly used mobile phone and most online payments are made 1-2 times a week. Compared to mobile wallet, the debit card was the dominant mode of payment. The study found that non-users of mobile wallets have reservations on the choice of use of mobile wallets especially on handling of sensitive information on mobile phone and identity theft. Mobile wallet users have a tendency towards online spending habits such as paying for Uber taxi services, making non-cash payments and when making purchases exceeding five pounds. The key factors that influence the use of mobile wallets among consumers are; perceived ease of use, perceived usefulness and convenience. Customer attitudes such as fear of technology failures and unavailability of mobile wallets in stores influence the perception of mobile wallet as convenient payment method. Mobile wallets tend to drive consumers into impulse buying and to enjoy augmented services such as apps and website access, and create loyalty among customers who enjoy discounts and rewards. Specifically, mobile wallets results in impulse purchasing. Read More