From Cash to Mobile Payments Gauging Consumer Behaviours in Tanzanian Digital Experience

Abstract

This abstract covers the entire thesis which comprises three published papers and one publishable paper for the four objectives in this study. The study aimed at assessing the influence of consumer behaviours (service quality and customer experience) on mobile payment customer loyalty. Mobile payment (m-payment) service is one of the expanding mobile-based technologies (with improved artificial intelligence and big data) in the history of financial services for the past decade. However, several complaints and unsatisfactory service experiences have been a day-to-day problem despite the significance of m-payment services and their integration into other industries, including healthcare, e-government, tourism, entertainment, and banking services. Specifically, the study assessed the service quality, customer experience, and customer loyalty to provide an individual customer perspective. The service quality model, customer experience framework, and customer loyalty model were employed and elaborated in the conceptual framework. The study was conducted in the Dar Es Salaam region in Tanzania. It adopted a cross-section research design, specifically a sequential explanatory mixed method. In this design, the first phase was a quantitative phase which included objectives one, two, and three. The sample size involved in the study was 379 respondents, who were individual customers of m-payment. The sampling techniques used were purposive and convenient sampling techniques. Quantitative data were collected using survey questionnaires; the collected data were analysed first using the SPSS version 26 for descriptive analysis, followed by the use of Smart PLS software. Phase two of the study was a qualitative phase which was on objective four. Qualitative data were gathered through in-depth interviews (involved 12 participants) and focus group discussions (involved 27 participants). The data collected were analysed using Atlas ti software to identify codes, patterns, and themes following a deductive analytical process with themes predefined from theories. The study findings generally revealed that consumer behaviours in m-payment service. Phase one revealed that the dimensions of service quality such as reputation quality influence both attitudinal and behavioural quality but functional quality influences customer attitudinal loyalty while technical quality influences customer behavioural loyalty. These are strengthened by gender diversification which is contrary to previous studies in customer attitudes and behaviours towards the service. The product experiences have no influence on customer loyalty. Also, customer experience is important in the relationship between service quality, word of mouth, and repurchasing behaviour. Phase two revealed the antecedents of mobile payment customer loyalty such as technical quality, functional quality, and customer experiences. Other new themes such as customer orientation/ education, security, and privacy are also important antecedents. The customer loyalty model indicates that customer loyalty is not only being loyal to a single service provider but can be action-based, game loyalty and annoyance loyalty. To the service quality model, the study contributes on the measures of technical quality –i.e. employees' soft skills, caller skills, tech skills, and mastering service details contrary to previous studies. The study has integrated service marketing, ICT mobile technologies, and financial services from a developing country’s perspective. The study recommends that the TCRA has to maintain better network coverage in several locations to enhance better customer experience and assessment of service quality. Also, in order to improve loyalty to the service, the Bank of Tanzania (BoT) should make follow ups with the financial status of the merchant to qualify handling mobile payment service and counter checking their performance from time to time. Loans availability to customers is a commendable service as part of a retention strategy/way of keeping loyal customers. Lastly, customer orientation should be emphasized to ensure they understand their rights, and where to get help when their privacy and security are affected hence be loyal to service provider.