Mobile commerce (M-commerce) is broadly defined as any commercial activities conducted through
various types of mobile equipments via a wireless communication network and wireless devices
including digital cellular telephones, pages, notebook computers, personal digital assistant (PDAs),
and automobiles. Mobile commerce will be more and more popular in the next decade. Let’s see the
impact of industry trends on the demand for mobile commerce applications.
First of all, according to the article, the core consumers of M-commerce are the 31-45 age groups,
the generation Y. The growth trend is expected to peak over the next ten years. The implication on
the increase of demand for mobile commerce applications to the service providers is to try to
maintain the leadership. For example, service providers can provide various, useful, higher quality
and cheaper applications to their consumers to lower the churn rate.
Secondly, as for the penetration ratio from mobile wireless services, it is expected to reach 60 to 70%
of population by 2005 in United States. Hence, it is no doubt that the trend of using mobile phone or
on the demand for mobile commerce applications will increase rapidly. Some of the people may even
own more than one mobile. It causes duplication. Since more and more people would own a mobile
phone, the penetration rate is expected to peak over. So, the implication of this is service providers
are difficult to attract new user. They should try to keep the existing consumers, keep their loyalty.
And this will become the most important mission of service providers.
Thirdly, the churn rate is low currently. The churn rate is just about 1.6% due to undifferentiated
from the competition, so that the user will be encouraged to switch to another brand. The demand on
those services providers and revenue will be increased.
The affect of industry trends on the demand for mobile commerce applications among cell phone
service providers in the next decade has been discussed. Let’s see what application will be the most
successful. And actually it’s depended on the relative advantage, compatibility, complexity,
trialability and observability of the application.
As for the relative advantage, this is the most important factor. It’s about the degree to which
consumers may perceive it to offer substantially greater benefits than the product they currently use.
New products most likely to succeed are those that appeal to strongly felt consumer needs. For
example, a entertainment application contain games, video, player, music player, online function can
be found on a single device so that user can enjoy many function on one application and do not need
to download a few device. It’s more convenient for the user.
As for the compatibility, it refers to the degree tow which a new product is consistent with an