How to Enhance Consumers

HOW TO ENHANCE CONSUMERS DOWNLOAD PAID APPLICATIONS

How to Enhance Consumers Download Paid Applications: Consumers Preference And Need Jana Katzenberger, Marc Matthias, Nguyen Thi Phuong Thuy, Nguyen Viet Tu, Tu Chia Chun National Kaohsiung First University of Science and Technology

How to Enhance Consumers

Abstract Mobile Commerce, also known as M-Commerce, is the ability to conduct commerce using a mobile device, such as a mobile phone, a Personal Digital Assistant (PDA), a smartphone, or other emerging mobile equipment such as dashtop mobile devices. With the growth in usage of Internet-enabled mobile phone, the foundations for mobile commerce are now in place. We know that mobile will play an increasingly significant role in customer acquisition and retention across all channels in the years to come. Consumers are now willing to make purchases through their mobile phones, so the opportunity now exists for all website owner and retailers in particular that can offer a usable and compelling online and retail experience for mobile users. Consumers are now willing to make purchases through their mobile phones, so the opportunity now exists for all website owner and retailers in particular that can offer a usable and compelling online and retail experience for mobile users. In this paper, the participants were fifty students from National Kaohsiung First University of Science and Technology, there were twelve questions in this survey, including attitude toward usage of smartphones, habit of download application and disbursement capability. From the result we could see most of the people still tend to download free applications, just only 10% people willing to download paid applications. Moreover, most popular categories be downloaded were games and TV firms.

How to Enhance Consumers

Introduction Along the technology development, it also brought the living change to us. The 3C digital device improved a lot from past. The most significant example is cell phone. Perhaps just only ten or fifteen years ago, the basic function of cell phone just calling, sending message, gradually, the designers created more functions that made cellphones was not only a tool of communication anymore. In order to compete with other cellphone companies and attract consumers, some entertainment functions created, for example, music player, games application and camera. After few years, the Internet had great contribution to our daily life, and then the Wireless was the key factor to push the smartphones industries. According to the date from DIYMRD in March 2010, it showed the great business opportunity from smartphones applications, consumers spent on download applications reach up to 6.2 billion USD, they even predict in 2013, it will attain 29.5 billion USD. Therefore, how to attract consumers attention becomes the key success component to applications designers. So a how can the companies be more successful in selling applications? What does the programs has to have? The study of the Soundera Corporation found out the costumers need. Apps need more content to attract customers, they need to be more interesting and interaction, also can connect to the mobile web directly and easier, like QR code and apps need to provide more useful information, like travel information, to keep customers loyalty. Literature Review Our research of the Applications market and the growth of it in the last few years showed, the users need them in the future and they do trust Apps more and more. This is based on the study of the Soundera Corporation / Marketing & Sales Dept. in March 2010. This study highlights the development of the App Market, the App Market participates, the four kinds of business model, the types of Apps and at least some good advises for

How to Enhance Consumers

creating a good Application. Only in 2010 the consumers spent 6.2 billion USD in applications. Which is a huge amount, but in the future experts say, they will spend around 29.5 billion USD on them in 2013. And in 2010, users downloaded applications for 4.5 billion times. The prediction for 2013 would be 21.6 billion times. In the Taiwanese market 40% of users spend 10-30 minutes on Apps a day, whereas over 70% use it every day. The application market participants are separated in two different sections like the operating systems and the mobile phone producers. The operating system is the software which on the mobile phones. The main developers are Google Android, Symbian OS, Blackberry RIM, Palm webOS and Windows Mobile. The biggest manufactures for smartphones are Apple, HTC, Samsung, Nokia, Motorola, Blackberry and LG. For the Apps the companies have four kinds of business model which contains the free advertising revenue model which places the advertisement in the games or programs to attract customers. The applications are sometimes free for specific purpose to promote product and politics. Denominated charges (paid from 0.99 $ ~ 1000 $) and the charge by content or service are the last two points of the business model. Applications can be in two various types. First type is the free one. That means you do not have to buy them, but because they are free you have to accept the included advertisement. The second is the paid type and an application costs between 0.99 $ ~ 1000 $. The price most times depends on the functions. When we compare these two types in the download rate, we can see that free Apps with 78 % are more popular than the paid ones with only 22%. Moreover, a study with IPhone users shows the most purchase intention are in the branches clothes, entertainment, travel, electronics and computers. The app-producer have to consider about the advertising viewpoint for what they need it, if for a campaign or a long-term, if it is necessary to design it by themselves or just corporate with those application designers/company and just need to pay and put their ad in that program or games. The Marketing and Sales Dept. of the Soundera Corporation summarized how a

How to Enhance Consumers

profitable application should be created. It should connect to the social groups (Facebook or twitter), it has to have an easy interface for users, also combined with search functions, of course an attractive icon and should be tested repeatedly before launch to make sure the quality is good or markets need is satisfied. Methodology Participants The entire primary research study was done in National Kaohsiung First University of Science and Technology (NKFUST) and quantitative protocol was used. There were 50 samples of survey respondent comprised of NKFUSTs students in the age groups 18-25 years old. Procedure The instrument for data collection, in the form of a Structured Questionnaire, was designed to elicit information on routine usage aspects included 13 questions. In order to provide a current snapshot of using cellular phones by the young people, this protocol involved data collection through a detailed opinion-questionnaire administered across NKFUSTs campus with requisite sample allocation to garner current comparative opinions on issues ranging from choice of handset, brand associations, triggers and apprehensions in relation to use of cellular phones. The psychographic variables included attitude towards usage of cellular phones, habits of download applications and disbursement capability. Result From the Table 1f.1, we can see consumers preference on smartphone selection. Most of them bought the brand from Samsung and Sony Ericson; just only two people bought the blackberry smartphone.

How to Enhance Consumers

Mobile Brand
16 14 12 10 8 6 4 2 0 Samsung APPLE SonyEricson Nokia HTC BlackB 7 5 2 8 15 13 Samsung APPLE SonyEricso n Nokia HTC

Table 1.1 Structured Questionnaires In Table 1.2, it showed consumers preference on download applications, from the result we can see, most people like to download entertainment category, for example, the games, TV, films, radio and music, and then there are still some people tend to download social network application, therefore, this investigation could be an information to the applications designers, they could try to compete with others then to create a more interesting games or improve other applications to attract more people.

Usage Applications
14 12 10 8 6 4 2 0 12 8 11 7 5 3 2 2 Games Music TV/Film/Radio Social network Sports Adult info.

Table 1.2 Usage applications

How to Enhance Consumers

Whereas, people enjoy downloading the applications, but most of them still prefer the free applications. From the Table 1.3, it showed only ten or more people willing to pay for applications, among those users, those people who with IPhone, willing to pay for the applications more than Android users.

Table 1.3 The price user willing to pay Discussion The wireless and smartphones bring the new business market. There are varieties of classification of mobile services, including financing, information, advertising and the most popular is entertainment. The mobile commerce has two characteristics, mobility and reachability. From a survey, we had a result of customers experience pay for application: Most customers pay for games and music applications while still 41% people never download the pay Apps. Despite all these figures, there is one school of thought that believe that there is an element of risk (in terms of security) attached with mobile ecommerce, however the above mentioned figures state that m-commerce is a lucrative platform to invest and entice the tech savvy audience. Some issue should discuss as well. Although the technology advance improve our life quality and make the living more convenient, however there are still some disadvantages. The most significant one is

How to Enhance Consumers

the interaction among people become less recently. Even friends sit to each other, people still attract by the applications in their smartphone. Another key problem of this issue is the wireless construction.

Conclusion Those consumers with different smartphone had different purchase intention on paid applications. Otherwise, from the result of our survey, we found most people like to download entertainment applications. Afterwards, the second most download application is relate to social network, such as Facebook and Twitter. Therefore, if the application can combine the function of entertainment and social network will enhance consumers to download it, although people still tend to download the free application, but there are still some people willing to pay little money to download those applications they think are interesting and useful to them. To enhance consumers download paid applications, the programs must be very attractive and unique. Moreover, if the application could connect to social network, friends power would influence more people to download the paid application. Additional, the designers could launch free version first, and then consumers will base on their experience to decide whether to download it. Limitation The survey just only did within the National Kaohsiung First University of Science and Technology which most attenders are young college students who has different demands kind of entertainment and whose their budget almost come from family support, so it may be difficult to generalize the results to other occupation. Another limitation is that the relatively small sample size could limit our ability to determine statistical significance in the testing of the hypotheses.

How to Enhance Consumers

References Ecounsultancy Digital Marketer United. (2010). Mobile E-commerce, best practice guide from: http://econsultancy.com/us/events Eldon, L. (2004). Mobile Commerce in Taiwan and China Michael, S. (2009). Mobile E-commerce: Business in Motion Soundera Corporation/ Marketing & Sales Dept. (2010). Application programs new market business Wei Liang, C. (2009). Mobile Commerce. The Evolution of Mobile Commerce.