E-C M M M R U A C: Ommerce Obile Arketing Odel Esolving Sers Cceptance Riteria
E-C M M M R U A C: Ommerce Obile Arketing Odel Esolving Sers Cceptance Riteria
4, November 2012
1,2
moertini@unpar.ac.id,
arthur2112@gmail.com
ABSTRACT
The growth of e-commerce and mobile services has been creating business opportunities. Among these, mobile marketing is predicted to be a new trend of marketing. As mobile devices are personal tools such that the services ought to be unique, in the last few years, researches have been conducted studies related to the user acceptance of mobile services and produced results. This research aims to develop a model of mobile e-commerce mobile marketing system, in the form of computer-based information system (CBIS) that addresses the recommendations or criteria formulated by researchers. In this paper, the criteria formulated by researches are presented then each of the criteria is resolved and translated into mobile services. A model of CBIS, which is an integration of a website and a mobile application, is designed to materialize the mobile services. The model is presented in the form of business model, system procedures, network topology, software model of the website and mobile application, and database models.
KEYWORDS
Mobile Marketing System, E-Commerce Marketing, Mobile Services Criteria
1. INTRODUCTION
It is known that in many areas of the world, the Internet and mobile devices users have grown tremendously in the last several years. For example, in the case of Indonesia, the Internet users of 2011 was 55 million people which was expanded 27 folds compared to the 2 million users in 2000 [21]. On the other hand, the number of mobile devices (such as smartphones and tablet computers) used in 2012 is 268 million and is predicted to be 650 million in 2015 [23]. Interestingly, 48% of the Internet users in Indonesia utilize mobile devices to access it [25]. In line with this trend, in the last decade e-commerce has also been growing exponentially [9] and so has mobile services, which has been creating a large spectrum of business opportunities [14]. Among the opportunities, mobile marketing is predicted to be a new trend of marketing on a world-wide basis [1]. Hence, it can also be predicted that e-commerce mobile marketing will also be growing significantly. As mobile devices are personal tools that are carried by the owners wherever they go, mobile services are different from non-mobile services in that mobile services should be designed based on personalization, ubiquity and location specificity [14]. Mobile devices are also ideal platforms for integrating messages, developing relationship and direct marketing [1].
DOI : 10.5121/ijmit.2012.4403
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Researchers have been aware of the trends, the opportunities and the uniqueness of mobile services. In the last few years, several studies related to user acceptance of mobile services have been conducted. As the results of these studies, researchers have formulated guidance, recommendations or some kind of criteria (see Sub-section 4.2 for more discussion) that can be adopted by organizations, enterprises or mobile services developers such that the services designed will be widely accepted by users. This research aims to develop a model of mobile ecommerce marketing system, in the form of computer-based information system (CBIS) model that addresses the recommendations or criteria formulated by researchers. The contribution of this paper can be described as follows. Although several studies have recently formulated recommendations, the authors have not found any research result that adopts these recommendations in designing an integrated computer-based information system (CBIS) used for e-commerce mobile marketing systems. Therefore, this research intends to contribute in this area. As the system being developed is a CBIS that integrates an e-commerce website and a mobile application, the research methods adopted are the combination of CBIS, e-commerce website and mobile applications development. However, this research focuses on requirement and analysis stages only (see Section 2.3 for the discussion of the all development stages). The article is arranged as follows: The next section presents the related literatures; Section 3 presents the proposed CBIS development methods; Section 4 discusses the business objectives, mobile services criteria and proposed services solutions; Section 5 describes the proposed business model; Section 6 presents the proposed mobile marketing system (CBIS) model consisting of network infrastructure, people and system procedures, software and database model; Section 7 depicts the model evaluation; Section 8 provides the conclusion and further work where we suggest that the proposed mobile marketing system can be implemented as a standalone system as well as a sub-system of an integrated e-commerce system.
2. RELATED LITERATURES
2.1. Online Communication Techniques in the Purchasing Process
Purchasing process of products and services generally consists of a few stages, which are awareness (recognizing needs), products or services searching, evaluations of alternatives, purchasing and post-purchasing. In online communications, there are a few techniques that can be adopted by enterprises to support their customers or market their products as depicted on Chart 1. Chart 1. Online communication techniques in the purchasing process [9] Online Awareness Searching Evaluating Purchasing Postcommunication Alternatives Purchasing techniques search search engines, targeted engines, online online newsletter, banner ads, promotions, online catalogs, customer interstitials, catalogs, lotteries, Description of website visits, email, targeted website discounts, the technique product online event visits, targeted reviews, user updated promotions targeted email evaluations email
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Similar to CBIS development, [9] suggests five major steps in developing e-commerce website, which are systems analysis/planning, systems design, building the system, testing and implementation. As this research uses the analysis and some part of system design stages only, brief discussion of these two stages are provided as follows. In the stage of system analysis, the activities that must be performed are defining: (a) Business objectives containing list of the website capabilities; (b) System functionalities containing list of information system capabilities needed to achieve business objectives; (c) Information requirements describing information elements that system must produce in order to achieve business objectives. In the stage of systems design, the hardware and software platforms are designed and the description of main components of the system and their relationship to one another are constructed.
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In developing mobile applications, [7] suggests that the developer focus on what is right for the users including their context, goals, and needs. Therefore, the stages of the application designs are: Defining the users context, uncover the users goals, with goals understood, figuring out the tasks the users want to perform; also looking for ways to filter content by context, such as location, media, and model. Cloud computing offers many advantages and has been gaining popularity. Generally, there are three kinds of cloud computing service models, namely Software-As-a-Service (SaaS), PlatformAs-a-Service (PaaS) and Infrastructure-As-a-Service (IaaS) ([15] and [12]). PaaS is a variation of SaaS whereby the development environment is offered as a service. The developers use the building blocks (e.g., predefined blocks of code) of the vendors development environment to create their own applications. One of the well-known vendors providing these services is Google. A service provided by Google, namely Android Cloud to Device Messaging (C2DM), allows third-party application servers to send lightweight messages to mobile Android applications [22]. This service is not designed for sending a lot of content via the messages. Rather, it should be used to tell the application that there is new data on the server, so that the client application can fetch it. In the context of mobile application development, this service can be adopted to provide push notification services.
International Journal of Managing Information Technology (IJMIT) Vol.4, No.4, November 2012
In order to support sales by mobile device, the purchasing stages (see Sub-section 2.1) that will be supported by the system are: (a) Awareness: targeted ads and promotions/coupons/deals; (b) Searching products: search engines and online catalogs; (b) Evaluating products: search engines, online catalogs, product reviews and users/peers evaluations; (c) Purchasing products: electronic promotions/coupons/deals; (d) Post-purchasing products: online product information update. In order to enable mobile customers to utilize the system services, the system must also provide services for merchants, which are as follows: (a) Registering as members and manage profile; (b) Managing product catalogs; (c) Managing ads, promotions/coupons/deals and the targeted market segment for the ads and deals.
[10]
[3]
Location-aware advertising text messages are preferred over those that are not location aware. Consumers will adopt mobile shopping services if they believe that using the services will help them to increase gains in shopping performance (e.g., saving shopping time and obtaining promotion information). Incentives, rewards and value propositions are important variables to improving mobile advertising such that these can elicit more positive reactions than those without such rewards.
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[18]
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Criteria Cr-11. Enhancing customers image Cr-12. Interpersonal and external influence, social network Cr-13. Security and privacy protection
Reference
Researchers Suggestions Mobile users who could communicate with peers in a funny way or who are well-informed helpers can be viewed as experts in their social network. Interpersonal and external influence has a positive influence towards adopting mobile services. Consumers will be influenced by word-of-mouth and others opinions.
[14]; [13]
Security and privacy protection have a positive influence on the adoption of mobile services.
International Journal of Managing Information Technology (IJMIT) Vol.4, No.4, November 2012
Criteria
Location-aware advertising
Incentive, rewards Enhancing customers image Interpersonal Mobile services: MSr-13; MSr-14; and external influence, social network Mobile services: MSr-15. Services for filling customer profile that will Security and be stored in the local mobile database and are not accessible by other privacy parties (the profile will be used to filter the incoming ads and deals); protection MSr-16. Services for storing favorite products and deals taken in the local mobile database such that others will not know. The data that will be required, accessed or managed by the services are:
System Services as the Solutions customers will be promptly notified with push notification via cloud services). Website services: WSr-3. Update/add product categories, catalogs, ads, deals (customers will be updated promptly each time new data is posted/updated). Mobile services: MSr-8. Customers will receive information coming from the nearby merchants only; MSr-9. Services for showing the location or map of each merchant. Website services: WSr-4. Manage stores location. Mobile services: MSr-5; MSr-10. Sending ads and deals matching with customers personality from the nearby merchants to promote efficiency in selecting and purchasing products; MSr-11. Services for comparing products; MSr-12. Services to mark favorite products and receive notifications if the products are on sale; MSr-13. Services for asking opinions from friends regarding the products of interest. Website services: WSr-2. Mobile services: MSr-5. Website services: WSr-2. Mobile services: MSr-6; MSr-7; MSr-14. Services for sharing information of products, advertising and promotions/deals to peers;
(a) Website services: Data of products including product categories, product catalog, description and pictures; merchants including profile and membership; customer/shopper profile; market segment variables, ads description; deals description including stocks; messages/notifications/comments. (b) Mobile services: Data of products including selected product categories, product catalog, description and pictures; user profile; shopper peers; market segment variables, ads description; deals description; messages/notifications.
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(b) Merchants: In order to be the members, merchants must sign up on to the provider website. There are four kinds of memberships offered (see descriptions of the Revenue model below). Merchants can access the provided services (WSr-i) from anywhere at any time using their computers connected to the Internet.
(c) Shoppers/customers: To encourage internet users to be the system member, the membership
for shoppers is free. Shoppers must download the mobile application from the provider website, installed in their mobile device, and sign up as members. Then, they can access the mobile services (MSr-i) using their mobile devices.
Figure 1. Three parties involved in the system: Mobile Marketing Provider, Merchants and Shoppers It is presented in Sub-section 2.2 that any business model must address eight key elements. In this research (conducting the requirement and analysis stage of CBIS development), six of them are addressed as follows: (a) Value proposition: In general, by providing mobile services (MSr-1 to MSr-16) and website services (WSr-1 to WSr-4) that are accepted by users, it is expected that the propose system will be valuable by mobile users and merchants. Mobile users will get valuable information while merchants will be able to market their products effectively. (b) Revenue model: The revenue comes from merchant membership fees. There are four kinds of memberships, namely free, silver, gold and platinum, where each kind will be applied with different annual fee. The following is the features for each type of member: (1) Free: Display 10 product catalogs, create 10 ads/month, 10 deals/month; (2) Silver: Display 100 product catalogs, create 100 ads/month, 100 deals/month; (3) Gold: Display unlimited catalogs, create 100 ads/month, unlimited deals/month; (4) Platinum: Display and create unlimited catalogs, ads and deals. Members may upgrade or downgrade their memberships accordingly. Once the website has high hits, the website can then launch paid ads service as the additional revenue. (c) Market opportunity: Millions of mobile users use their devices to access the Internet (see Section 1). Therefore, there are business opportunities to provide mobile services by utilizing the connection Internet that will benefit these users. There are also millions of micro-smallmedium enterprises in Indonesia [24], where some parts of them are merchants that need to market their products. The opportunities that will be caught are advertising services directed towards mobile device users such that the member merchants able to market their products effectively. (d) Competitive environment and advantage: To our knowledge, currently there is no company in Indonesia offering the services for mobile devices users and merchants that we design. Therefore, we assume that the new services will attract them. (e) Organizational development: At the early stage, the mobile marketing provider company will need to develop two divisions having the task: (1) To manage general data which are changed infrequently, such as merchants, shoppers/customers, product categories and market segmentations; (2) To manage operational data which are changed/added frequently, such as
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product catalogs, ads, deals/coupons and reports from merchants/ shoppers/ users. Later on, when the two divisions cannot handle their tasks due to heavy transactions or data update, the division can further be divided with each division handles more specific tasks. On the other hand, merchants using the services will need to assign at least one person responsible to update catalog, post ads and deals.
(d) In order to send location-aware-information to shoppers mobile devices, the provider website
will employ cloud services provided by Cloud Services Providers, such that shoppers will receive information posted or updated by nearby merchants only.
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6.3. Software
For materializing the designed services (see Chart 4) and procedures (see Section 6.2), the CBIS of mobile marketing system is divided into two sub-systems (see Figure 3), which are a website installed and run in the provider server, and a client mobile application run in every shoppers mobile device (see the network topology shown in Figure 2 ).
Figure 3. The proposed mobile marketing consists of provider website and client mobile application The provider website is further divided into two modules, namely Phost A and Phost M (see Figure 4), where each module consists of several sub-modules that are used by certain users, where each sub-module has functions materializing the services designed (see Chart 5).
Figure 4. The architecture of the website owned and run by the provider Chart 5. List of functions, users and services materialized in Phost-M and Phost-A sub-modules Sub-module User Website Functions Services Materialized M-1. - (additional Register, sign in, manage the merchants Account Merchant necessary profile and upgrade membership. Management function) View, insert, update, delete product catalogs, WSr-1 M-2. Merchant view and reply users comments and show Catalogs merchant location. View, insert, update and delete product WSr-2; advertisings including their market WSr-3 M-3. Ads Merchant segments, minimum confidence and period of the advertisings.
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Sub-module
User
Website Functions View, insert, update and delete product deals offered to shoppers/customers including their market segments, minimum confidence and period of the advertisings; Process deals taken by shoppers; View and reply notifications received. View, verify (new) merchants, verify membership upgrade. View and verify (new) shoppers. View, insert, update and delete product categories. Examples of categories: fashion, book, food and drinks, etc. View, insert, update and delete market segmentations (market variables and values). Examples of variables: age (values: <20, 2130, 31-40), gender (values: male and female). View and verify product catalogs posted by merchants. View and verify product advertisings posted by merchants. After the ads are verified by Administrator, notifications are promptly broadcasted to shoppers mobile devices via a cloud service. View and verify product deals posted by merchants. After the deals are verified by Administrator, notifications are promptly broadcasted to shoppers mobile devices via a cloud service. View and update the status of the system abuse reports.
M-4. Deals
Merchant
M-5. Notifications A-1. Merchants Management A-2. Shoppers Management A-3. Product Categories
Merchant
Administrator
Administrator
Administrator
WSr-2
Administrator
Administrator
A-6. Ads
Administrator
WSr-2; WSr-3
A-7. Deals
Administrator
Administrator
Note: Sr-2 (simple user interfaces for shoppers) is not resolved by Phost-A and Phost-M but Phost C.
The mobile application, namely Phost C, is broken down into several modules (see Figure 5), where each module has functions and materializes certain designed services (see Chart 6).
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Figure 5. The architecture of the client mobile application Chart 6. List of functions and services materialized in Phost-C modules Module Functions Services Materialized Manage profile content (used for MSr-1; MSr-3; C-1. Account filtering/personalizing ads and deals received); Set MSr-15 Management & preferred product categories filter settings (used for Configuration filtering/personalizing product catalogs). Manage/select the desired product categories; Search MSr-3; MSr-5; and view information of specific products, related MSr-6; MSr-9; deals, comments; Compare products; Show the MSr-11; MSrC-2. Catalogs location of a merchant; Mark/unmark the products (as 12; MSr-16 product favorite); View related advertising/deals of a product. View advertising contents and the related product MSr-4; MSr-6; C-3. Ads information; Delete advertisings; Share advertisings to MSr-7; MSrpeers. 10 View deals sent by merchants (that are filtered by MSr-4; MSr-5; shopper profiles stored in the local database of MSr-6; MSr-7; shoppers mobile device); Take a deal (submit MSr-10; MSrinformation that the deal is accepted/reserved by the 16 C-4. Deals shopper to the merchant offering the deal); Claim deals (submit information that the product has been purchased in the merchant store); Delete deals; Share deals to peers. Add other shoppers as friends; Read MSr-13; C-5. Social notifications/messages from peers; Share product MSr-14 Network information to peers; Ask peers opinions of certain products; Share advertisings to peers. Handle and process push messages (sent by the MSr-7; MSr-8; C-6. provider server through the selected cloud service MSr-9 Communication provider).
Note: MSr-2 (simple, self-explanatory, easy and consistent navigation user interfaces) will be materialized in the design stage.
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Figure 6. Phost A & M accesses database in the server while Phost C accesses local database in the mobile device Website Database This database model is represented with a simple entity-relationship diagram as shown in Figure 7. It can be seen that the database will store a variety of data, such as merchants, product categories, products, ads, deals, market segmentation, and so on. Each entity will have necessary attributes (see Chart 7). Chart 7. The identified entities and main attributes of the website database No Entity Attributes 1 Category IdCat, name, image 2 Product IdProd, name, price, image 3 Merchant IdMerchant, name, email, address, city, map_location, member_type, isActive 4 Shopper DeviceId, email, isBlocked 5 Ad IdAd, title, content, datetime, status 6 Deal IdDeal, title, content, datetime, status, expired_time, stock 7 MarketSegment IdSeg, name 8 MerchantNotification IdNot, message, datetime 9 ShopperNotification IdNotShop, from, title, message, senttime, isRead 10 ReportAbuse IdRep, comment
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Figure 7. The E-R diagram of the website database Mobile Local Database The objective of making Phost C accessing local mobile database (not the server database via the Internet) is to resolve a few of the mobile marketing criteria as shown in Chart 8. The local database model itself is represented with the simple E-R diagram depicted in Figure 8 with the main attributes of each entity are presented in Chart 9. Chart 8. The acceptance criteria resolved by designing mobile local database Concept/Criteria Rationales personalization, The local database stores shoppers profiles and other data that can compelling be used by the mobile application functions to personalize ads and content deals such that shoppers only receive the desired/relevant information. It also stores the preferred product categories such that the application functions can display only the products in the selected categories. social network The local database stores shopper peers data (such as email services addresses) such that the social network application functions access the data needed locally; The database also stores messages/notifications from peers. privacy Shoppers profiles (used to filter/personalize the advertisings and protection deals received in the mobile devices), messages/notifications, selected product categories and products information and selected deals are stored in shoppers mobile database and are not accessed/ known by merchants as well as other shoppers.
No Cr-4, Cr-5
Cr-12
Cr-13
Note: For design consideration, creating a local database for the mobile application also has other advantages (such as increasing database access speed).
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Figure 8. The E-R diagram of the mobile local database Chart 9. The identified entities and main attributes of the local mobile database No Entity Attributes 1 Category IdCat, name, image 2 Product IdProd, name, price, image 3 Deal IdDeal, title, content, expired_time, status 4 ShopperPeer DeviceId, email 5 Profile IdProfile, name, value 6 Notification IdNot, from, title, sent, message, isRead 7 Filter IdCat, isSelected
7. MODEL EVALUATION
One of activity that must be conducted in a CBIS development is reviewing the result of each stage. In this section, we present the brief excerpt of the system model review. The system model (network infrastructure, procedures, software and database) have fully support the business objective defined, which is to provide services for merchants to market their products to customers who own mobile devices with functionalities to access the Internet. In order to provide mobile services that will be accepted by users, mobile services acceptance criteria have been searched by studying literature and the criteria found (Cr-1 to Cr-13) have been resolved into website services (WSr-1 to WSr-4) as well as mobile services (MSr-1 to WSr-16). The system procedures have been designed such that the use of the services is arranged properly. The website services designed are then translated into the website sub-systems (Phost-A and Phost-M) module functions, while the mobile services into mobile Phost-C module functions. The database model facilitating the information needed and managed by Phost-A, Phost-M and Phost-C has also been constructed. In addition, some mobile services acceptance criteria are also resolved by local mobile database model. However, there is one criterion that has not been fully resolved, which is Cr-5 (compelling content). This should be translated into services providing entertainment, amusement and enjoyment. In the context of product advertising, these may be materialized by providing cartoons, funny or interesting video clip, and so on. In our design, compelling content currently is mainly translated into providing deals only.
8. CONCLUSION
The computer-based information system (CBIS) model used in e-commerce mobile marketing that resolves user acceptance criteria (ease of use, personalization, up-to-date content, incentive, social network, and so on) needs to be materialized into an integrated system consisting two sub38
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systems, which are a website used by the service provider and merchants, and a mobile application used by mobile device users. In order to develop a system meeting the user acceptance criteria, a combination of CBIS, ecommerce website and mobile application development methods should be adopted, where the requirement stage is improved to facilitate e-commerce website and mobile application development. (As suggested in [8], in developing e-commerce system consumers behavior must be studied and resolved carefully. This research has contributed in resolving some part of ecommerce system, specifically the mobile marketing sub-system.) As in this research we conduct activities of requirement and analysis only, further work is required, which includes activities of system design, implementation and testing. Organizations with e-commerce businesses may adopt and work further with the proposed model as an independent system or as part of their systems to support product marketing activities. In either case, model customizations may be needed such that the business model and procedures are suitable with the organizations conditions, then the enterprises organizational structure may need to be enhanced to manage the system, and collaboration with cloud services provider should be set up. For research purpose, a prototype may be built based on the model, which then can be deployed, and the mobile users acceptances of the system are evaluated. Currently, a prototype is being developed and the working designed is depicted in [5].
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