Investigating Consumer Preference and Usage of Mobile Money Services in Zambia

CAVENDISH UNIVERSITY ZAMBIA
SCHOOL OF ARTS, EDUCATION AND SOCIAL SCIENCES
Dissertation
INVESTIGATING CONSUMER PREFERENCE AND

USAGE OF MOBILE MONEY SERVICES IN ZAMBIA
A CASE STUDY ON MOBILE NETWORK OPERATORS (AIRTEL,
MTN & ZAMTEL) IN LUSAKA.
BY
ROSE MWANSA
STUDENT ID: 004 – 434
Supervisor: Mr. Kabwe Teddy Kabwe
A Dissertation submitted to Cavendish University in partial fulfilment of the

requirements for the Degree of Bachelor of Art in Mass Communication and Public
relations (BMCPR).
SEPTEMBER 2020
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EXECUTIVE SUMMARY
Understanding consumer behaviour is critical for the marketers to satisfy customer needs and
wants. This study investigated consumer behaviour of users of mobile money services in
Zambia. The study was based on the survey data from the sample size of 79 respondents from 18
mobile money service providers; namely Banks/MFIs: Atlas Mara, Barclays Bank, Eco bank,
FINCA, First National Bank, Indo Zambia Bank, Investrust Bank, Standard Chartered Bank,
United Bank for Africa and Zambia National Commercial Bank (better known as Zanaco)
• MNOs: Airtel Money, MTN Mobile Money and Zambia Telecommunications Company
(known as Zamtel)
• Third-party providers: cGrate, Spargris (Kazang), Speed Pay, Zambia Postal Services
Corporation (known as ZamPost) and Zoona, the data were collected using semi-structured
interviews. The interviews were conducted with customers and agents of mobile money. Also,
data were analysed using thematic analysis of emerging themes. The study revealed that
network used by friends or family, quality services, pricing, network efficiency, convenience and
security and availability are the factors that motivate consumers to select brands of mobile
money. Also, the study showed that consumers appreciate the quality of services offered by
MNOs and Banks/MFIs while those of those of Third-Party are the least appreciated. On the
other hand, consumers appreciate the pricing system of MNOs and Third-party rather than
Banks/MFIs. Furthermore, consumers believe that the marketing strategies adopted by MNOs
are more robust than for Banks/MFIs and Third Party. Besides, consumers are at easy to transact
with bank/MFIs because the security system in better than MNOs and Third-Party. The findings
suggest that consumer behavior and attitudes towards mobile money brands in Zambia are
influenced by marketing mix as well as social–psychological factors. Consequently, to grow
their businesses or to remain competitive in the mobile money industry, mobile providers have to
understand different social psychological environments that different consumers of Zambia
belong to for them to be able to provide effective marketing strategies.
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TABLE OF CONTENTS
Executive Summary ...................................................................................................................... ii
Table of Contents ......................................................................................................................... iv
Chapter One: Introduction………………………………………………………………………...7
1.1 Background to the Study………………………………………………………………………7
1.1.1 Mobile Money……………………………………………………………………………….8
1.1.2 Mobile Money in Africa…………………………………………………………………….8
1.2 Problem Statement…………………………………………………………………………...12
1.3 Rationale for the Study ……………………………………………………………………...12
1.4 Aim of the Study……………………………………………………………………………..13
1.5 Objectives of the Study………………………………………………………………………13
1.6 Research Questions…………………………………………………………………………..13
1.7 Structure of the dissertation………………………………………………………………….13
Chapter Two: Theory and Literature Review………………………………………………..15
2.1 Introduction…………………………………………………………………………………..15
2.2 Consumer Behaviour………………………………………………………………………...15
2.2Theoretical Framework………………………………………………………………………16
2.2.1 The Stimulus-Response Model……………………………………………………………16
2.2.2 Veblenian Social-Psychological Model……………………………………………………18
2.3 Conceptual Framework………………………………………………………………………20
2.3.1 Methodologies……………………………………………………………………………..21
2.4 Need for Further Research…………………………………………………………………...25
2.5 Summary and Conclusion……………………………………………………………………26
Chapter Three: Research Methodology………………………………………………………27
3.1 Introduction………………………………………………………………………………….27
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3.2 Research Philosophy…………………………………………………………………………27
3.3 Research Approach…………………………………………………………………………..27
3.3 Research Design……………………………………………………………………………..28
3.4 Justification of Questions……………………………………………………………………28
3.5 Sampling Approach………………………………………………………………………….29
3.6 Sample Size………………………………………………………………………………….29
3.7 Access of participants……………………………………………………………………….30
3.8 Data Collection………………………………………………………………………………30
3.9 Pilot Study……………………………………………………………………………………31
3.10 Data Analysis……………………………………………………………………………….31
3.11 Reliability and Validity……………………………………………………………………..31
3.12 Ethical considerations………………………………………………………………………32
3.13 The Position of the Researcher in the Study……………………………………………….32
Chapter Four ............................................................................................................................... 30
Presentation of Findings…………………………………………………………………………33
Chapter Five…………………………………………………………………………………….36
Data Presentation and Discussions……………………………………………………………36
5.1. Introduction………………………………………………………………………………….36
5.2. Demographic Characteristics of the sample………………………………………………...36
5.2.1. Research site and setting…………………………………………………………………..36
5.3 Factors that Motivate Consumers to Select Brands of Mobile Money Services…………….41
5.4 Attitudes of Consumers towards Mobile Money Service Providers…………………………50
5.5 Chapter Summary……………………………………………………………………………53
Chapter Six……………………………………………………………………………………...54
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Conclusions are Recommendations……………………………………………………………54
5.1 Introduction…………………………………………………………………………………..54
5.2 Summary of the Findings…………………………………………………………………….54
5.3 Conclusion…………………………………………………………………………………...55
5.4 Recommendations……………………………………………………………………………55
5.5 Limitations of the Study……………………………………………………………………...56
References……………………………………………………………………………………….58
Appendices………………………………………………………………………………………62
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CHAPTER ONE: INTRODUCTION
1.0 Overview
The focus of this chapter is to contextualize the study. Particularly, it gives a background to the
study of consumer behavior and usage with regards to Mobile Money Services in Zambia.
Mobile money services generally refer to payment services operated under financial regulations
and performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards,
a consumer can use a mobile to pay for wide range of services and digital or hard goods.
Mobile money services are being deployed rapidly across emerging markets as a key tool to
further the goal of financial inclusion. Financial inclusion, the development of novel methods to
enable individuals at the base of the pyramid to access formal financial services and become part
of the formal financial system, is considered a key pre-requisite for lifting these populations out
of poverty and for driving economic growth.
Studies on consumer preference aim at finding out why someone may buy one product over
another. Or what influences them to make certain consumption choices. They also ponder on
why some consumers always buy the same brand or what process consumers go through to make
consumption choices (Duncombe & Boateng, 2009). Thus, Consumer Behavior is a vitally
important area for the development and success of businesses because it enables an insight into
the psyche of the consumer, the variety of factors that influence decision-making, the processes
they go through to make decisions, and how they may respond to a market offering or message
(Farquhar & Robson, 2016).
The objective of this study is to investigate consumer behavior on the preference and usage of
mobile money services in Zambia. Solomon et al. (2013) define consumer behavior as the study
of how individual consumers behave and make decisions to spend their available resources on
consumption related items or consumption related aspects.
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1.1 Background to the Study
1.1.1 Mobile Money

Mobile money or digital finance is most often associated with person-to-person (P2P) transfers,
from mobile wallets on cell phones. However, it has now been recognized for its potential to
serve the needs of large entities (B2P) or governments (G2P) to pay people. Because of more and
more money circulating outside of the banking system, banks have seen it as a competitive threat
especially that the cost of a mobile banking transaction is only 2% of a branch transaction
whereas ATM transaction is 8% (Zambia Economic Brief, 2018). Mobile Money services have
rapidly emerged primarily through joint ventures between mobile network operators (MNOs)
and banks/MFI (Microfinance institution).
Mobile money services have been growing rapidly because traditional financial institutions have
been unable to reach low-income customers, especially those living in remote areas. The cost
structure of retail financial services has exacerbated the problem. Particularly, bricks and mortar
branches have high fixed costs and it is rarely economical for banks to build and operate them to
serve the poor. Even if such a branch were busy all the time, the fees they would have to charge
their clients to cover their costs would exceed clients’ transactions and/or deposits. This problem
is accentuated in rural areas because the population density is low (Goldenberg and Martin,
2016).
1.1.2 Mobile Money in Africa
The idea of Mobile money was pioneered in Africa few years ago. To some extent, it was a thief
who unwittingly discovered mobile money. Particularly, a woman in a small village of Kenya
had her bus fare stolen in 2006. She happened to be taking part in a micro-finance pilot named
M-Pesa (M for mobile, pesa is Swahili for money) being conducted by the British government,
Vodafone and Kenya’s largest mobile network operator, Safaricom (HELIX, 2018). The pilot
was testing how micro-loans could be issued through basic mobile phones. The victim’s husband
realized he could use the service to quickly transfer a small amount of money to his wife’s phone
as proof of payment for the bus ride. This led the M-Pesa team to recognize that there was an
enormous gap in the Kenyan financial services sector: the ability to easily and cheaply transfer
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money person-to-person for all kinds of transactions, at scale. Today M-Pesa is the most
successful mobile phone-based financial service in the developing world with a customer base of
more than 19.5 million Kenyans, equaling approximately 83 per cent of the adult population
(Dorota, 2013).
Mobile money services leverage the ubiquity of the mobile phone and the extensive coverage of
mobile operators to offer a profitable means of serving unbanked customers. Statistics show that
over 40% of people on low incomes in Africa have access to a mobile phone (Goldenberg and
Martin, 2016). Besides, there are over a billion customers in countries who already own mobile
phones, yet do not have a formal bank account. As such, mobile money service providers have
taken advantage of mobile technology and the available distribution networks that mobile
operators already use for selling airtime and low-income customers at the base of the pyramid to
introduce mobile money services to allow the unbanked to have access to convenient and
affordable financial services (Helix, 2018).
Digital Financial Services (DFS) were introduced in Zambia in 2002 with the launch of Celpay
(BoZ, 2016). Celpay mainly focused on bill payments by corporate clients as opposed to person-
person transactions. Following suit, Zanaco, a local commercial Bank, introduced XAPIT as the
first mobile banking service in 2008 also with a focus on bill payments. The country’s first third
party service provider, ZOONA, was launched in 2009 with a focus on person-person transfers.
Much later, mobile-money services were also launched by mobile network operators, Airtel in
2011 and MTN in late 2012 to offer both bill payment and Person to Person transfers (ANA,
2015). Also, Investrust Bank, a local bank, introduced agency banking through Eazeaccount.
Currently, Stanbic Agency Banking is using Shoprite (supermarket) outlets as well as a number
of commercial banks to offer mobile banking services in Zambia (ZICTA, 2015). Zambians are
using mobile financial services to buy goods, pay utility bills, and send and receive money.
Mobile operators and banks in the country are competing aggressively on the provision of mobile
money services, as many Zambian cannot afford a bank account, coupled with the cost of
traveling long distances to banks from rural areas. The Zambian Central Bank statistics show that
the country's mobile money accounts have reached 19.4 million registered accounts and 4.3
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million active accounts (BoZ, 2018). This development presents an opportunity for more and
more unbanked communities, particularly rural communities to access financial services.
Presently, the Zambian market for mobile money services is becoming increasingly competitive with 18
competitors on the market Banks/MFIs: Atlas Mara, Barclays Bank, Ecobank, FINCA, First National Bank, Indo
Zambia Bank, Investrust Bank, Standard Chartered Bank, United Bank for Africa and
Zambia National Commercial Bank (better known as Zanaco)
(known as Zamtel)
• Third-party providers: cGrate, Spargris (Kazang), SpeedPay, Zambia Postal Services
Corporation (known as ZamPost) and Zoona
as illustrated in figure 1.1
Figure 1: Market Shares of Digital Financial Services
Source: HELIX Institute of Digital Finance (2018)
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From the information in Figure 1.1, it can be stated that mobile money market in Zambia is
dominated by Mobile Network Operators Particularly, MNOs has the largest share of market
presence at 88%, followed by Banks/MFIs (11%) and Third-Party Providers (1%).
Furthermore, the Mobile Money industry in Zambia is characterized by widespread adoption of

Over the Counter (OTC) transaction methodology by customers and agents. Specifically, the
market is largely focused on payments of person to person (P2P), bill payments and bulk
payments. Table 1.2 illustrates the different services Digital Money Service providers offer in
Zambia.
Table 1: DFS Market Overview in Zambia
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
 
Source: (HELIX Institute of Digital Finance, 2018)
Like other developing countries, the Digital financial services (DFS) are playing an increasingly
central role in financial inclusion efforts. Principally, mobile phones are reducing costs and
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connecting low-income clients to the formal banking system in Zambia. Nonetheless, the
analysis of DFS market in Zambia shows that the industry is competitive. However, the services
offered by most of the providers do not vary that much thereby making the competition even
stiffer among the different providers. Thus, how do customers behave and use these services?
1.2 Problem Statement

Mobile money services in Zambia started with Third Party providers between 2002- 2009. Much
later, mobile-money services were also launched by MNOs and Bank/MFIs between 2011- 2016.
Nevertheless, an analysis of the market suggests that, despite the early start, the promise of
Mobile Money Services remain largely unrealized in Zambia. Other Third-Party providers
ceased operations.
1.3 Rationale for the Study

The mobile money service industry is Zambia is highly competitive. Therefore, providers have
different experiences with consumers because of different understandings of their needs and
wants. Thus, while some mobile money service providers are still struggling to grow their
customer base, others keep on flourishing. Consequently, understanding consumer preference,
especially with regard to mobile money service is critical. Failure to understand how consumers
respond to certain products and services makes some mobile providers fail to tick in their
businesses. As a result, they tend to switch or become disloyal because they are in perpetual
need of quality services and products.
In this regard, the rationale for the study is to identify factors that that motivate consumers of
mobile money to use particular brands rather than others. Such information would be necessary
for providers to revisit their marketing strategy to increase customer awareness. Enhancing
promotional and marketing activities would catalyze registration and transactions at the outlets
thereby enhancing financial inclusion of the unbanked.
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1.4 Aim of the Study
The overall aim of this study is to understand consumers’ wants and needs in the mobile money
services so that service providers can create exchanges that satisfy individual and organizational
objectives.
1.5 Objectives of the Study

The study was guided by the following objectives:
 To identify factors that motivate consumers to select brands of mobile money services in
Zambia.
 To identify attitudes that consumers have towards various mobile money services
companies in Zambia.
1.6 Research Questions

1. What factors motivate consumers to selects brands of mobile money services in Zambia?
2. What attitudes do consumers have towards various mobile money service companies in
Zambia?
1.7 Structure of the dissertation

This dissertation is structured as follows:
Chapter one presents the introduction of the study. Especially, it provides the background to
the study, the problem statements the aim and objectives, research questions and the structure
of the dissertation.
Chapter two focuses on the review of literature. Particularly, it presents the theoretical
framework and relevant literature on consumer behavior. Also, it identifies the gap and
justifies the need for this study.
Chapter presents the methodology of the study. Mainly, it focuses on the design, target
population, sampling, data collection, pilot study and data analysis
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Chapter four focuses on data presentation and analysis. Particularly, looks at the findings of
the study based on the research questions of the study. Also, it discusses the findings in
relation to literature review.
Chapter five concludes the dissertation with a summary of the research findings and makes
recommendations on strategies that mobile money providers could implement in order to
attract and retain clients. The chapter also identifies limitations of the study and recommends
areas for further research on the topic.
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CHAPTER TWO: THEORY AND LITERATURE REVIEW
2.1 Introduction
This chapter focuses on reviewing literature on consumer behavior. Particularly, it gives an
overview of Consumer Behavior and theoretical framework. Also, it it presents a review of
empirical studies on consumer behavior and usage from various countries as well as a summary
of the chapter.
2.2 Consumer Behavior

To understand a consumer’s behavior, it is imperative, first of all, to know about the consumer.
As the king of the market, the consumer is the one that dominates the market and the market
trends. Thus, the consumer is someone who pays a sum to consume the goods and services sold
by an organization (Shen, 2011). A consumer need not just be an individual; a consumer can
also be an organization. A consumer can be someone who will buy either goods or services. In
other words, a consumer can be described as a person or an organization that is specifically
targeted to sell a product or a service of a company. They can as well be someone (an individual
or an organization) that pays a price to use the goods and services of an organization (Fong &
Wong, 2015). Besides, in the economic system, the consumer is the decision maker. However,
this study limits itself to individual consumers instead of organizations.
On the other hand, Tripathi and Singh (2012) define consumer behavior as a process whereby
individuals decide whether, what, when, where and from whom to purchase goods and services.
While, Schiffman and Kanuk, (2009) define consumer behavior as the behavior that consumers
display in searching for, purchasing, using, evaluating and disposing of products, services and
ideas. As such, consumer behavior is the study of how individuals make decisions to spend their
valuable resources (Time, money, effort) on consumption related items. It is the study about
what, when, where and how often they purchase and how they use the purchased product. The
study will adopt Schiffman and Kanuk’s definition and the study will focus on the individual
personal consumer.
Consumer behavior deals with the psychological process of decision making by consumers in a
social context which also exerts group pressures on them. Consumer behavior is the study of
individuals, groups, or organizations and the processes they use to select, secure, use, and
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dispose of products, services, experiences, or ideas to satisfy their needs and wants (Lin, Wang,
Wang, & Lu, 2014). This behavior is studied more in sectors which are very concentrated and
competitive such as Mobile Money Services. The prime importance of consumer behavior lies in
the fact that it is a guess about how the consumer is likely to behave.
2.2Theoretical Framework
This section presents the theoretical framework that has been applied in the study. Particularly,
the study used the Stimulus-Response and Veblenian Social-Psychological models.
2.2.1 The Stimulus-Response Model
According to Kotler (2004), the Stimulus Response Model is related to the black box theory of
behaviorism, where the focus is not set on the processes inside a consumer, but
the relation between the stimuli and the response of the consumer. This Model is based on the
Philosophical Theory of Behaviorism, which uses a metaphor of a black box to represent the
human mind, the internal processes that are unknown, and learning happens when a correct
response is demonstrated following the presentation of a specific environmental stimulus. The
stimuli (advertisement and other forms of promotion about the product) that are presented to the
consumer by the marketer and the environment are dealt with by the buyer’s black box. The
stimulus-response or “black box” model focuses on the consumer as a thinker and problem
solver who responds to a range of external and internal factors when deciding whether or not to
purchase a product (Kotler, 2004). These factors are shown in Figure 1, below:
STIMULI BLACK BOX RESPONSES

EXTERNAL FACTORS (BUYER’S MIND)
INTERNAL FACTORS Purchase
Marketing Mix Product
Consumer Characteristics Brand
Product Beliefs/Attitude Source
Price Values Amount
Place Knowledge Method of payment
Promotion Motives
Perceptions
Life Style
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Figure 1: Black Box Model (Kotler, 2004).
Figure 1 above illustrated that the external stimuli that consumers respond to include the
marketing mix and other environmental factors in the market. The marketing mix (the four Ps)
represents a set of stimuli that are planned and created by the company. When these factors are
put together, they represent external circumstances that help shape consumer usage and
preferences.
On the other hand, the internal factors affecting consumer decisions are described as the “black
box.” This “box” contains a variety of factors that exist inside the person’s mind. These include
characteristics of the consumer, such as their beliefs, values, motivation, lifestyle, and so forth.
The decision-making process is also part of the black box, as consumers come to recognize they
have a problem they need to solve and consider how a purchasing decision may solve the
problem. As a consumer responds to external stimuli, their “black box” process choices are based
on internal factors which determines the consumer’s response–whether to purchase or not to
purchase (Kotler, 2004).
This model assumes that regardless of what happens inside the consumer’s mind, the consumer’
response is a result of a conscious, rational decision process. Thus, this model was chosen on the
basis that the behavior and preferences of consumers of Mobile Money services in Zambia are
influenced by a number of external factors. This study, therefore, was aimed at establishing
factors that influence users of mobile money services to prefer which mobile services providers
and services rather than others.
This model was chosen on the basis that it suits well in the study of the beviour consumers of
mobile money. Consumers do not just purchase products or services at random or instinctively,
they are motivated by something. Therefore, using the Stimulus- response model was assumed to
be the suitable tool in identifying consumer motives in their preference of mobile money brands.
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2.2.2 Veblenian Social-Psychological Model
The Veblenian Social-psychological Model was developed by the Economist Thorstein Veblen.
Thorsten saw man as a social creature that conforms to the standards of culture and subgroups in
which they live. Their individual needs, behaviors and desires are created and influenced by
group membership (Khosla, 2010). The basic theme of this model is that man’s attitudes and
behavior are influenced by several levels of society: culture, subculture, social classes, reference
groups, face to face groups and family. Thus, to develop effective marketing strategies, the
marketer needs to determine which of these social levels is most important in influencing the
demand for their product.
(i) Reference groups
Reference groups are one of the determining factors in influencing consumer behavior.
Generally, reference groups are defined as those that provide to the individual some points of
comparison, more or less direct about his behavior, lifestyle, desires or consumer habits (Belch
& Belch, 2012). Consumers have several reference groups like family, friends and church.
These reference groups may serve as points of comparison and as sources of information for
individual consumers. As a result, consumers may change their behavior to be more in time with
the action and beliefs of group members.
(ii) Culture
Culture is crucial when it comes to understanding the needs and behaviors of individual
consumers. Throughout their existence, individuals are influenced by their family, friends,
cultural environment or society that “teaches” them values, preferences as well as common
behaviors to their own culture (Khosla, 2010). Because culture affects consumer behavior
pattern, it is of obvious importance to marketers to understand the culture of consumers to be
able to devise strategies that correspond to the needs of customers from different cultures.
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(iii) Sub-culture
The subcultures are often considered by the brands for the segmentation of a market in order to
adapt a marketing strategy to the values or the specific needs of different subcultures.
Subcultures are groups of people who share the same values based on a common experience or a
similar lifestyle in general (Khosla, 2010). While the members of a sub-culture tend to adhere to
many of the cultural moves of overall society, they also profess beliefs, values and customs
which set them apart. Thus, an understanding of sub-culture is important for marketing of
products because the members of each subcultures tend to show different purchase behavior
patterns.
(iv) Social class
The consumer buying behavior may also change according to social class. Social classes are
defined as groups more or less homogenous and ranked against each other according to a form of
social hierarchy (Chu, 2015). Social classes have similar values, lifestyles, interests and
behaviors in individuals belonging to the same social class. For instance, a consumer from the
lower class will be more focused on price. While a shopper from the upper class will be more
attracted to elements such as quality, innovation, features, or even the “social benefit” that they
can obtain from the product those from the lower class will look for other factors. Equipped with
this knowledge, the marketer can design marketing strategies that appeal to social classes
differences.
(v) Family
The family maybe the most influencing factor for an individual customer. It forms an
environment of socialization of an individual into society. As a result, perceptions and family
consumer habits have a strong influence on the consumer buying behavior. Generally, people
tend to keep the same perceptions and habits as those acquired with their families (Solomon et
Al.,2013). Even though behaviors vary according to each family, marketers can learn how
families typically decide and shop for different products, so that they can tailor their marketing to
fit the general pattern.
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This model suits the study well, as the consumers of mobile money services are influenced by
different factors. Moreover, consumers emerge from different backgrounds that influence them.
Thus, the Veblenian Social-Psychological Model was found to be an effect tool in understanding
what social-psychological factors that influence purchase behavior of mobile money services
providers in Zambia.
This model was chosen on the basis that it suits well in the study of the behavior consumers of
mobile money. Consumers do not just purchase products or services at random or instinctively,
they are motivated by something. Therefore, using the black box was assumed to be the suitable
tool in identifying consumer motives in their preference of mobile money brands.
2.3 CONCEPTUAL FRAMEWORK

This framework composed of independent variables namely; Cultural, social influence,
Psychological and Facilitating conditions and one dependent variable mobile money service
adoption as discussed in the literature review below is a diagram;
Dependent Variable independent variables
Culture
Social influence
Individuals adopting mobile money services Personal & Psychological
Consumer Character
Facilitating conditions
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2.3.1 METHODOLOGIES
The following section presents different methods that have been used in the study of consumer
behavior by different researchers:
Survey method is one of the common methods used in the study of consumer behavior of
different products. To illustrate, Singh (2012) conducted a study of Consumer Behavior towards
the Preference and Usage of Mobile Phone Services in Bhopal. The main objectives of the study
were (i) to identify and analyze the factors which impinge on to the satisfaction level of the
customers of mobile phone services, (ii) to understand the effectiveness of the promotional
activities of mobile phone companies and offers provided by the companies. Based on survey
method through simple random sampling of 80 samples, the collected data were coded,
calculated and analyzed with the help of statistical tools like descriptive statistics, chi-square test
and garret ranking model.
Similarly, Sinha and Wagh (2008) analyzed the growth of Cellular Telecom Sector to
understanding consumer’s preferences and choices on the use of cell Phone Janupur, Eastern
Uttar Pradesh district. The study relied on primary data, collected from businessmen, employees,
students, agriculturalists and others. The study was a survey based on the sample size of 100
respondents and survey collected through questionnaire. The study concludes that majority of the
consumers are prepaid consumers and prefer lower tariffs followed by better service and
considered the call rate ideal.
Further, in an attempt to analyze the various factors involved in the consumer preference towards
mobile phone connections in Mukkudal Town Panchayat area, Tripathi and Singh (2012)
conducted an empirical study of consumer behavior towards the preference and usage of mobile
services. The study was based on a survey method through simple random sampling of 80
samples. They found that purchasing behavior involves complicated services of stimulus and
response. These stimuli are known as motives. These motives may be expressed or unexpressed
and are based upon deep seated needs or more openly felt desires when someone purchase
something, the person psychologically satisfies both a need and a want. Modern purchasers want
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to know not only about the product features but also to know how and why the product will
benefit them. They look not only for what a product can do but also what they mean (Solomon et
al., 2013).
Also, looking at the factors influencing Consumer Behavior in the Electric Appliances Market,
Fatimah et al. (2012) carried out a survey study. The aim of this study was to determine the
factors affecting consumer preferences and behavior in the electric appliances market in Iraq.
The data employed in the study were obtained through a questionnaire that was administered to
different firms in Basra, a city in southern Iraq. The major findings of the study revealed that the
set of independent variables are weakly associated with the dependent variable. However, the in-
depth analysis found that social factors, physical factors, and marketing mix elements are
strongly associated with consumer buying behavior. This analysis makes it possible to discover
consumer decision-making rules. The results may assist producers and retailers in understanding
consumer behavior and improving consumer satisfaction.
Further, aiming to investigate Factors that influence consumer purchasing decisions of Private
Label Food Products, Thu Ha, Nguyen & Ayda Gizaw (2014) conducted a case study on ICA
Basic. The purpose of the study was to identify and analyze factors that influence consumer
purchasing decision of private label food products. The study triangulated both secondary and
primary data. Secondary data were obtained from relevant literatures from journals, articles,
blogs, and other electronic sources. On the other hand, the primary data were collected by the use
of interviews and online survey. The study identified five factors that influence consumer'
purchase decision of low-price private label brands. These included advertisement & word of
mouth, perception, attitude, purchase intention and demographic factors. The study established
that brand and brand related factors are not significant factors that influence purchase intention.
However, for food products, price-quality relationship is the most important factor. If consumer
perception of quality and price match their expectation, they will be satisfied and perceive high
value for the products. Nonetheless, in case the consumers are dissatisfied with the product, they
perceive risk and that negatively impacts on the purchase decision of the consumer.
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In addition, in a quest to understand the factors affecting consumers’ buying decision in the
selection of a coffee brand, Lautiainen (2015) undertook a survey study involving quantitative
methods. The purpose of this research was to determine how different factors of consumer
behavior effect on decision-making during coffee brand selection. The study focused on social,
personal and psychological factors. Data were collected by a self-administered questionnaire. In
addition, a link to the questionnaire was published on Facebook and shared among people. The
study indicated that social, personal and psychological factors have effect on consumer’s
decision-making process when selecting a coffee brand. Conversely, the results were not totally
reliable because credible correlation was missing.
Also, using the wheel of consumer behavior model, Zhang and Li (2014) carried out a study on
the factors affecting consumer behavior of Commercial Health and Fitness Club in Liverpool.
The aim of the project was studying the consumer structure of health & fitness clubs in Liverpool
area, their motivation, consumption, consumer demand, and targeted marketing strategies based
on previous studies. This study provides a comprehensive investigation of the United Kingdom
health & fitness sector through primary and secondary market research. The research method
was based on a comprehensive secondary research study of United Kingdom health and fitness
market reports together with an investigation of academic articles relating to the sector and
general consumer behaviors. The primary research used a quantitative based approach in
sampling local consumers. A questionnaire was developed to test the points for a local
representative sample of consumers. Then, the results were compared and analyzed.
Besides, packaging plays a significant role in determining consumer behavior. To this effect,
Variawa (2010) conducted a survey to analyze the influence of packaging on consumer decision
making process for Fast Moving Consumer Goods in Star Hyper in the town of Canterville. The
purpose of the study was to determine the impact of packaging on the decision-making processes
of low-income consumers in retail shopping. The study was based on a sample size of 250
respondents. The results of the research demonstrate in Star Hyper in the town of Canterville that
low-income consumers have more preferences towards premium packaging as this can also be
17
re-used after the product has been consumed. Although the findings indicate that there is a weak
relationship between the product packaging and brand experience. However, it has been proven
by the findings of the research that low-income consumers have greater brand experience from
the purchase of ‘premium’ products when compared to their experience from purchasing ‘cheap’
brand products.
In addition, Abraham (2011) applied Veblenian socio–psychological model to study consumer

behavior. A Multi-stage stratified disproportionate random sampling technique was employed for
sample selection and two instruments were used in the collection of data (interviews and
questionnaire). The questions in the tools were constructed in relation to the psychological
model factors (culture, sub-culture, social class, reference group and family) to measure its
impact on consumer behavior when making a purchase decision in the present study. The study
concluded that the consumers are mostly influenced by social class and family out of the five
above mentioned factors.
Furthermore, Broadridge & Morgan (2007) investigated consumer buying behavior and
perceptions of retail and brand baby products. The study used both qualitative and quantitative
methods of study. The population of the study included ‘parents of children under the age of five
who use baby care products. The results of the study showed that consumers (parents of children)
adopted similar risk reduction strategies in their purchase of baby care products in that they
focused on the reliability and packaging of the products. The results of this research indicated
that consumers need to feel confident with the product in terms of reliability and performance
and packaging.
In addition, Lee (2005) applied the three-stage consumer behavior decision making model to
explore the Chinese purchasing of health imported food. The study was anchored on literature
on culture and consumer decision process as well as the influence of cultural factors on Chinese
consumer decision making process. The study confirmed that environment factors influence
consumer behavior and decision-making process among Chinese consumers. These included
culture, social class, personal influence, family and situation.
18
The study by Lee (2005) gives an insight about how environmental factors influence Chinese
consumer behavior in purchasing of products but its reliance on secondary data marks its
shortcoming. Consumer behavior is dynamic. Therefore, the use of primary data would have
added value to the study by bringing to light the current consumer behavior of the Chinese
people. Thus, this study goes a step further by generating primary data from the respondents to
have an insight about mobile money services in Zambia.
In addition, Lee (2005) applied the three-stage consumer behavior decision making model to
explore the Chinese purchasing of health imported food. The study was anchored on literature
on culture and consumer decision process as well as the influence of cultural factors on Chinese
consumer decision making process. The study confirmed that environment factors influence
consumer behavior and decision-making process among Chinese consumers. These included
culture, social class, personal influence, family and situation.
The study by Lee (2005) gives an insight about how environmental factors influence Chinese
consumer behavior in purchasing of products but its reliance on secondary data marks its
shortcoming. Consumer behavior is dynamic. Therefore, the use of primary data would have
added value to the study by bringing to light the current consumer behavior of the Chinese
people. Thus, this study goes a step further by generating primary data from the respondents to
have an insight about mobile money services in Zambia.
2.5 Need for Further Research

The foregoing literature has revealed that consumer behavior is a well-researched topic and has
abundant literature relating to determinants of consumer behavior and preferences. In fact,
literature has highlighted a number of variables that are involved in influencing consumer
purchasing behavior. However, there is limited literature on the factors determining consumer
behavior on the usage and preference of mobile money services. Therefore, this study seeks to
identify factors that influence consumer behavior of mobile money services, especially in the
Zambian context.
19
Another limitation of the available literature on consumer behavior relates to the methodologies
employed in the study. Most of the literature reviewed on consumer behavior used survey
designs in their study. Survey studies are useful for getting a great deal of specific information
generally, for surveys to yield meaningful responses; they need larger sample sizes of over 100
participants because precision is essential. However, based on the fact that the study on
consumer behavior of mobile money users is in its infancy, using a survey study would not be
useful in studying what is obtaining on the ground regarding the usage and preference of mobile
money services in Zambia. Using a different tool such as personal interviews would yield more
information that may be risked being left out if a questionnaire was used. Therefore, this study
will apply personal interviews that will involve in-depth questioning of individual consumers
about their experiences with different products of mobile money providers in Zambia.
2.6 Summary and Conclusion

This chapter has looked at the definitions of consumer behavior and theoretical framework. Also,
it has reviewed literature on the different methodologies that are applied in the study of
consumer behavior. The review has shown that the most prevalent designs in the study of
consumer behavior are surveys and case studies. This implies that the study of consumer
behavior is dominated by survey studies.
In addition, literature has shown that there are a number of factors that determine consumer
behaviors of different products. These factors include cultural, social, personal and
psychological. That means for any marketing strategy to be effective, the marketer must take
into consideration of such factors as they relate to individual consumers of a product.
However, although available literature brings out a lot of information on customer behavior, the
major limitation lies in the fact that there is limited literature to account for the behavior of
consumers with regard to mobile money service providers in Zambia. Statistics have shown that
some mobile money service providers have bigger customer base while others are small. This
implies that there are certain factors that attract customers to some mobile money brands rather
than others, hence the need for this study.
20
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
This chapter discusses the methodology that has been used in the study. It describes the type of
research strategy, the target population, sampling strategy, sample size, pilot study, data
collection instruments and data analysis that have been applied in the study.
3.2 Research Philosophy

Creswell (2014) defines research philosophy a belief about the way in which data about a
phenomenon should be gathered, analysed and used. Thus, there are two main research
philosophies that are applied in research; namely positivism and interpretivism. (Clandinin,
2013). Positivism understands reality to be stable and can be observed and described from an
objective viewpoint without interfering with the phenomena being studied (Creswell, 2014). On
the other hand, interpretivism understands reality through the subjective interpretation of an
intervention in reality (Creswell, 2014). Therefore, the study of phenomena in their natural
environment is key to the interpretivist’s philosophy, together with the acknowledgement that
scientists cannot avoid affecting the phenomena under study.
Based on the foregoing discussion on research philosophy and the nature of this dissertation
study, the researcher decided to use interpretivism, which informs qualitative research. This
philosophy suits well with the study because it was aimed at interpreting the reality of consumer
behavior regarding mobile money services in Zambia.
3.3 Research Approach

Every research adopts a specific approach. According to Neuman (2011), a research approach is
a plan and procedure for research. Generally, there are three approaches to research; notably,
deductive, inductive and abductive. The major distinction between deductive and inductive lies
in the use of hypotheses to the study. While deductive approach tests the validity of assumptions,
inductive approach contributes to the emergence of new theories and generalizations. Thus, a
dissertation research based on formulated set of hypotheses that need to be confirmed or rejected
during the research process is a deductive approach. By contrast, instead of hypotheses, inductive
21
approach starts with research questions and aims and objectives that need to be achieved during
the research process. On the other hand, abductive research devotes to the explanations of
surprising facts’ or ‘puzzles’ (Creswell, 2014).
Consequently, being qualitative, this study adopted inductive approach because the it was aimed
at identifying patterns of meaning on the basis of data collected from consumers of mobile
money services. Literature review indicates that most of the studies on consumer behavior
employ quantitative methods thereby focusing on statistics that risk leaving out specific details
that might be of value in accounting for consumer behavior. Thus, this study used qualitative
methods to investigate consumer behavior among users of mobile money services in Zambia.
Qualitative research is generally about studying the phenomenon in its natural setting and the
focus is on the participants’ (and also the researcher’s) view of the world (Creswell, 2014).
3.3 Research Design
The research design gives direction to research. According to Girden (2011), the design of a
study defines the study type. A design can be descriptive, survey, correlational, semi-
experimental, experimental, review, and case study, longitudinal and meta-analytic. This study
applied a survey design, which encompasses any measurement procedures that involve asking
questions of respondents (Clandinin, 2013). This design was suitable to the study because the
aim of the study was aimed at collecting primary data from consumers on their purchase
behavior of mobile money services in Zambia.
3.4 Justification of Questions
One of the major ways in which research differs from other means of inquiry is the burden of
virtually, justifying everything that needs to be done in the research process. The value of this is
to lessen critics and challenges related to the validity and relevance of the findings (Clandinin,
2013). Therefore, one way is to make sure that questions are well phrased. Thus, this study was
framed on two research questions. The first question sought to identify factors that motivate
consumers to selects brands of mobile money services in Zambia. As already alluded to,
consumers have forces that drive their choice of products to purchase. Therefore, this question
22
was aimed at bringing out driving forces of consumer behavior with regard to mobile money so
that marketers or providers could predict behavior of consumers in order to meet their needs.
The second question was aimed at understanding the attitude of consumers towards various
mobile money service companies in Zambia. This was aimed at providing an insight into
consumer response regarding services of various mobile providers so that they could make
adjustments in order to remain competitive on the market.
3.5 Sampling Approach
Every research adopts a sampling approach. Clandinin (2013) defines sampling approach as a
technique used to sample a subset of subjects that is representative of the entire population. As
such, the study used Convenience Sampling to select respondents in the study. Pryor (2011)
explains that convenience sampling is a non-probability sampling technique where subjects are
selected because of their convenient accessibility and proximity to the researcher. This approach
was adopted based on the fact that the sampling frame of the consumers of mobile money
services was not known at the outset of the study. Therefore, it was convenient for the research
to compile the sample at the process of collecting data. Convenience sampling was appropriate to
the study as it allowed the researcher to wait for consumers coming to the booths for the agents
to access financial services, especially those who were ready to take part in the study.
3.6 Sample Size

One of the most important features of empirical research is the sample size. According to
Creswell (2011) the sample size is the measure of the number of individual samples measured or
observations used in a survey or experiment. Therefore, the sample size for this was seventy-nine
(79) participants (Consumers and agents) from four 18 Mobile Money providers Banks/MFIs:
Atlas Mara, Barclays Bank, Ecobank, FINCA, First National Bank, Indo
(known as Zamtel)
Corporation (known as ZamPost) and Zoona , which have a nationwide coverage in Zambia.
The participants were distributed as follows: 55 MNOs, 16 banks, and 8 Third-party providers.
Collecting data from different providers was meant to triangulate the data thereby enhancing
reliability and validity of information.
23
3.7 Access of participants
The target population for this study was consumers or users of mobile money services as well as
agents of mobile money services providers; namely, Banks/MFIs: Atlas Mara(shoprite),
Barclays Bank, Ecobank, FINCA, First National Bank, Indo
(Known as Zamtel)
Corporation (known as ZamPost) and Zoona in Zambia. The nature of this population was
also mobile. These were customers who frequented booths or pay points to access mobile
financial services from the mobile service providers. Therefore, these consumers were
approached as they came to access mobile services at different pay points. However, the
research only interviewed those who consented to take part in the study. This population was
targeted as it involved custodians of the information, which was needed for the study.
3.8 Data Collection
Data collection is a systematic approach to gathering information from a variety of sources to get
a complete and accurate picture of an area of interest (Neuman, 2011). Consistent with the study
strategy, personal interviews were conducted to collect data from the population. According to
Creswell, (2010), Semi-structured personal interviews involve in-depth questioning of an
individual about their interest in or experiences with a product. Though costly and vulnerable to
interviewer bias, the tool allows the researcher to get really into depth of the information. For
instance, when the respondent says something interesting, the interviewee can probe for further
elaboration. This tool was appropriate to the study as it increased the depth of the information
collected by the researcher. Additionally, data were collected with the help of research assistants.
The research had first, to train them on the interviewing skills and probing. Additionally, the
researchers used the phone to record the verbatim of the responses to be transcribed later one.
This was done in order to ensure that relevant detail was not left out.
24
3.9 Pilot Study
Pryor (2011) contends that a pilot study is a trial run of a study with a group of people that is
similar to the target population. The pilot study gives advance warning about where the main
research project could fail, where research protocols may not be followed, or whether proposed
methods or instruments are inappropriate or too complicated. The researcher, therefore,
conducted a pilot study on 10 consumers of mobile money services and the agents to test the
instrument. The researcher used feedback from this pilot to improve the ways, phrasing questions
in the interviews, data collection procedures, and data analysis plans to ensure that the research
yielded the best possible information. Also, the researcher has to reduce the number of questions
in the interview as the initial number of questions proved to be long for the interviews.
Therefore, the questions were reduced so that they could be answered between 10 and 15
minutes.
3.10 Data Analysis

Data analysis is the process of evaluating data using analytical and logical reasoning to examine
each component of the data provided (Clandinin, 2013). Data in this study was analyzed using
thematic analysis. According to Creswell (2010), thematic analysis is one of the most common
forms of analysis in qualitative research. It emphasizes pinpointing, examining, and recording
patterns (or "themes") within data. Themes are patterns across data sets that are important to the
description of a phenomenon and are associated to a specific research question. Illustratively, the
collected data for the study was categorized according to emerging themes from the interviews.
3.11 Reliability and Validity

Reliability and validity are two concepts mostly used in quantitative research to ensure the rigor.
However, they are also factors that any qualitative research is concerned with while designing a
study, analyzing results and evaluating the quality of the study (Creswell, 2010). To that effect,
the comprehensive and objective recording with the help of an audio recorder ensured reliability
by making sure that data were captured precisely. Also, the researcher managed to compare and
check the raw data using existing literature on the topic.
25
3.12 Ethical considerations
Ethical considerations are norms for conduct that distinguish between acceptable and
unacceptable behavior (Creswell, 2014). There are several reasons why it is important to adhere
to ethical norms in research. First, norms promote such things as knowledge, truth, and
avoidance of error.
Because of the nature of the research topic for the proposed study, informed consent and
confidentiality were the only major research ethics that were observed in undertaking the
proposed study. Specifically, the ethical approval was acquired before embarking on the study.
Also, the fact that identifying users of mobile money was not an easy thing; i went to the kiosks
for the mobile money agents and sought consent from every customer who went to the agents to
access mobile financial services. Thus, no participant was coerced into the study. I sought
consent of every participant by explaining the purpose of the study to them. At the same time, i
applied the principle of confidentiality by withholding the names of the participants. I only
recorded what was said. In addition, the interview schedule did not have any question requiring
the name of the participant.
3.13 The Position of the Researcher in the Study

The role of the researcher in this study was cardinal to the study in the sense that it was the
researcher’s responsibility to design the interview schedule, conduct interviews, analyses the
information and write up the dissertation. Therefore, the role of the researcher was being the
overall architect of the study.
26
CHAPTER 4:
4.1 PRESENTATION OF FINDINGS

Studies have established that there are a number of factors that influence consumer behavior and
one such factor is brand preference. In a study on consumer behavior towards various brands of
milk and milk products with special reference to Thudiyalur town at Coimbatore district in Tamil
Nadu (Elangovan and Gomatheeswaran, 2015), consumers switch their behavior because of
brand preference. Particularly, it is revealed that while some customers are loyal, buying only
one brand in a product group. Most of the buyers switch over to other brands, which have a good
reputation among the customers. Further, the researcher indicated that majority of the milk
consumers prefer fresh milk.
Similarly, Hashim & Muhammad (2013) undertook a study to determine important factors
influencing customers' purchasing behavior for cellular phones. The results of the study show
that there are some positive relationships between brand name and quality perception, brand
name and word of mouth advertisement, quality perception and fidelity, word of mouth
advertisement and brand name and between brand name image and brand name
Moreover, the level of income of an individual consumer influences behavior. Durga (2010)
carried out a study on consumer buying behavior of bottled water in Suriname. The aim of the
study was to examine categories of relationship between demographic and psychological factors
and bottled water buying behavior. Specifically, the study sought to establish the relationship
between such factors as ‘age’, ‘education’, ‘income’, ‘beliefs’ and ‘perception’ and ‘consumers’
buying behavior of bottled water’. The study revealed that there is a small relationship between
the ‘income’ and ‘perception’ of the consumers and their buying behavior of bottled water.
Regarding the income, people with a relatively high income and young people (16-25 years) are
the most frequent users of bottled water. In spite of their low income, young people are frequent
users of bottled water because they are assumed to be more sensitive to advertising and socially
accepted and luxury products. Besides, the more positive the perception of consumers of bottled
27
water is, the more they use the product. Thus, the study concludes that both demographic and
psychological factors are related to the buying behavior of bottled water to some extent.
Also, literature has revealed that psychological factors influence consumer behavior. Farzana
(2011) explored how consumers’ psychological factors are related to brand equity of laptop. The
study showed that consumers’ motivation to use laptop and brand association criteria function
separately. Consumers consider battery lifetime (brand association) as important feature while
satisfying those purposes. At the same time, consumers’ attitudes are shaped up by others,
especially by family members while buying high-involvement products. As well, consumers’
perception for choosing laptop relies upon different sources of information.
Besides, consumer behavior is determined by social-psychological factors. Rani (2014)

investigated factor that influence purchase decisions. The study revealed that customers are
influenced by a number of factors in their choice of purchase. That means an individual and a
consumer is guided by his culture, his subculture, his social class, his membership groups, his
family, his personality, his psychological factors, etc. and is influenced by cultural trends as well
as his social and societal environment. Consequently, by identifying and understanding the
factors that influence their customers, brands have the opportunity to develop a marketing
strategy, which is more efficient and more in line with the needs and ways of thinking of their
target clientele.
Another factor the affects consumer behavior is customer switching cost. Hence, Oyeniyi &
Abiodun (2010) studied switching cost and its relationships with customer retention, loyalty and
satisfaction in the Nigerian telecommunication industry. The study established that customer
satisfaction positively affects customer retention and that switching cost affects significantly the
level of customer retention.
Likewise, marketing mixes have a role in influencing consumer behaviors towards different
products. Masika (2013) investigated the effects of different marketing efforts on brand equity in
mobile industry. The results establish that there is a positive linkage between marketing mix
28
strategies and brand equity. In other words, advertisements influence behavior of consumers
because customers will be more aware of the market characteristics.
Related to marketing mix in influencing consumer behavior is packaging. Kuvykaite (2009)

carried out a descriptive research on the effect of packaging on consumer behavior. The study
demonstrated that packaging attracts consumer’s attention to particular brand, enhances its
image, and influences consumer’s perceptions about product. Also packaging adds unique value
to products as it works as a tool for differentiation of a product from a wide range of similar
products and stimulates customers to purchase products. As a result, packaging performs an
important role in influencing consumer behavior.
Correspondingly, Ricardo (2008) examined whether product characteristics and quality influence
consumer behavior when they choose among competing products. The study showed that
consumers rely on cues as extrinsic attributes. For instance, brand, price, package and warranty,
as signals of perceived quality. This shows that consumers’ behavior is influenced by extrinsic
attributes of a product such as brand name, price, packaging and warranty. These factors relate to
marketing mix.
29
CHAPTER FIVE: DATA ANALYSIS AND DISCUSSIONS
4.1. Introduction
This chapter presents and discusses the findings of the study. In other words, it reports and
interprets results of qualitative results of the study. The results are based on the survey data from
79 mobile money service consumers and 19 mobile service agents selected from 18 mobile
money service providers. Also, respondents were selected from the 3 cities of the country;
namely Lusaka, Livingstone and Ndola from three different provinces. As earlier alluded to, this
chapter also contains results and findings that provide answers to the research questions of the
study. It brings together the data from both consumers and agents of mobile money services to
reveal the behaviour and attitudes of consumers of mobile money services in Zambia. Informed
by previous studies conducted in this domain, it is assumed that society and communities where
consumers come from influence behaviour and attitude of consumers. Qualitative summaries of
their responses have been generated with the help of thematic analysis. The chapter begins with
demographic data and ends with the summary of the chapter summary. Demographic data or
rather, general information is presented to give a reader an understanding of the type and nature
of participants who provided answers to the research questions.
4.2. Demographic Characteristics of the sample
This section focuses on the general information about the sample. It starts by describing the
geographical locations and characteristics of the research sites.
4.2.1. Research site and setting

The study was conducted in Lusaka, Ndola and Livingstone districts of Lusaka, Copperbelt and
Sothern province respectively. Four mobile money providers were selected purposively with a
view of getting the sample that would be representative enough of mobile money consumers.
Table 4.1 below gives the composition of consumer respondents by gender from each of the
participating mobile money service providers.
30
Table 4.1: Consumer respondents by provider and gender
Name of Provider (S) Gender Total

Male Female
MNOs 25 30 55
Bank/MFIs 6 10 16
Third-Party 4 4 8
Total 35 44 79
Percentage (%) 45 55 100
Results from Table 4.1 above reflect an almost equal representation of male and female
consumers of mobile money services. Particularly, the sample consisted of 35 (45%) males and
44 (55%) females. That means females consumers were slightly higher than males in the sample.
In terms of mobile money service providers, it has been observed that that each of the 18
providers was adequately represented. The pie chart in figure 4.1 below indicates that 70% of
consumer respondents came from MNOs, 20% Bank/MFIs and 10% Third-Party).
Figure 4.1 Distribution of consumer Respondents by provider type
DIGITAL FINANCIAL SERVICES

Third-Party
10%
Bank/MFIs
20%
MNOs
70%
MNOs Bank/MFIs Third-Party
31
Figure 4.1 shows respondents by provider. Thus, MNOs 70%, Bank/MFIs 20% and Third-Party
10% was the distribution of respondents. These percentages are a clear indication that all the
sampled schools were adequately represented.
Table 4.2: Age distribution of respondents by type of provider

Name of Provider Age (Years) Frequency (N) Percentage (%)
MNOs 15 to 20 10 14.29
20 to 30 30 42.86
30 to 40 18 25.7
40-50 7 10
50 and above 5 7
Total 70 100
Bank/MFIs 15 to 20 2 10
20 to 30 7 35
30 to 40 4 20
40-50 5 25
50 and above 2 10
Total 20 100
Third-Party 15 to 20 0 0
20 to 30 3 30
30 to 40 4 40
40 to 50 2 20
50 and above 1 10
Total 10 100
Table 4.2 provides age distribution of respondents. The ages of the respondents ranged from 15
to 50 years and above. Illustratively, majority of the respondents from MNOs (42.86%) were 20
to 30 while 25.7% were aged 30 to 40 years old. The minority (7%) were 50 and above. This
means that most consumers of MNOs mobile money services in Zambia are the youth.
32
For Bank/MFIs, most of the respondents (35%) were 20 to 30 years of age while 25% were aged
40 to 50 and 20% 30 to 40 years old. The minority respondents were 15 to 20 (10%) and above
50 (10%). This implies that the major consumers of Bank/MFIs mobile money services in
Zambia are youths and adults.
With regard to Third-Party providers, most of the respondents (40%) were 30 to 40 of age
whereas 30% were 20 to 30 old. Also, 20% were aged 40- 50. The minority (10%) were 50 and
above and zero for 15 to 20 years. Again, this shows that most of the consumers for Zoona
money service in Zambia are the young adults and adults.
Overall, the study showed that most of consumers of mobile money services in Zambia are
youths and young adults.
Table 4.3: Respondents by Level of Education and Type of Provider

Name of Provider Level of Education Frequency (N) Percentage (%)
MNOs Primary 10 14
Secondary 37 52
College 18 27
University 5 7
Total 70 100
Bank/MFIs Primary 1 5
Secondary 2 10
College 6 30
University 11 55
Total 20 100
Third-Party Provider Primary 0 0

Secondary 3 30
College 5 50
University 2 20
Total 10 100
Table 4.3 above shows respondents’ levels of education. The study revealed that most of the
respondents (52%) at MNOs attained secondary school while 27% attained college education.
33
On the other hand, 14% attained Primary school education while 7 % attained university level of
education. This shows that majority of respondents at MNOs had secondary school level of
education.
At Bank/MFIs, most of the respondents (55%) had university level of education whereas 30%
had college level of education. At the same time, 10% had secondary level of education while 5
% had primary level of education. This implies that most of the respondents from MTN mobile
money had university level of education.
Finally, respondents from Third-Party had college education (50%), secondary (30%) and
university level of education (20%). This shows that most of the respondents at Third-Party had
college level of education.
By and large, most of the respondents of mobile money services in Zambia had attained some
school level of education.
Table 4.4 Occupation Status of the respondents and type of provider
Name of Provider Occupation Status Frequency (N) Percentage (%)

MNOs Employed 15 21.43
Self-employed 30 42.85
Retired 10 14.29
Unemployed 15 21.43
Total 70 100
Bank/MFIs Employed 9 45
Self-employed 7 35
Retired 1 5
Unemployed 3 15
Total 20 100
Third-Party Employed 4 40
Self-employed 2 20
Retired 1 10
Unemployed 3 30
Total 10 100
34
Table 4.4 gives a summary of respondents’ status of employment. The study revealed that most
of the respondents (42%) at MNOs were self-employed while 21% were employed and
unemployed (21%) correspondingly. The minority (14%) were retired. This implies that most of
the respondents from MNOs were self-employed.
For Bank/MFIs, most of the respondents (45%) were employed while 35% were self-employed.
At the same time, others (15%) were unemployed while 5% had retired. This implies that most
of the respondents at Bank/MFIs money were employed.
As for Third-Party, majority of respondents (40%) were employed whereas 30% were
unemployed. At the same time, 20 % were self-employed while 10% were retired. This signifies
that most of the respondents at Zoona were employed.
On the whole, the results concerning employment and the use of mobile money services are
mixed. The services are accessed by the employed, unemployed and self-employed as well as the
retirees. In other words, all people of different employment status do use mobile money services
in Zambia.
4.3 Factors that Motivate Cconsumers to Select Brands of Mobile Money Services
The section presents data on the factors that motivate consumers to select brands of mobile
money services in Zambia. According to Saravanan (2016), a motive is an internal energizing
force that orients a person's activities toward satisfying a need or achieving a goal. Similarly,
consumer actions are affected by a set of motives, not just one, which need to be identified by
marketers in order to develop a marketing mix. Thus, following are the motives of mobile
money consumers in Zambia:
35
Figure 4. 5 Factors that motivate consumers to be attracted to Brand of Mobile Money
Table 4.7 shows distribution of respondents on the reasons for choosing particular mobile money
service provider. The study showed that network used by friends or family (10%), quality
services (19%), pricing (23%), network Efficiency (9%), Convenience (13%), customer care
(6%), security (12%) and availability of agents (8%). This implies that majority of consumer
choose particular service mobile money service provider based on the pricing system.
Illustratively, the study revealed majority of consumers are motivated to use a brand of mobile
money because of the price. When the price of a commodity is affordable to many consumers, it
influences their purchase behavior (Sinhas and Wagh, 2008). Thus, consumers of mobile
money services are motivated to use brands that are cheaper than others. This was evident from
the respondents’ views:
“I like using Shoprite mobile money because it is very cheap. The charge is fixed for any amount
of transaction, which is not the case with these other mobile money service providers. They
charge according to the amount of the transaction being made.” (Personal Interviews, February
2020).
36
“MTN, Zamtel and Airtel are meant for the poor Zambians. Ever since they started operating in
mobile money services, I stopped using these other providers, which are expensive.” (Personal
Interviews, January 2020).
The foregoing shows that price determines consumer’s choice of mobile money brand rather than
the quality of services. The results seem to confirm the assertion by Chu (2015) that based on
the social class consumers value the price of the product rather than the quality.
The study also revealed that consumers are motivated to choose mobile money brands because of
the quality of services offered. According to Sinhas and Wagh (2008) better quality of services
motivates consumers to be loyal to a brandy. To this effect, consumers of mobile money services
prefer to use brands that provide better quality of services. In this study, quality of services was
exemplified in terms of network reliability as can be observed from the views of consumers:
“I use MTN,Zamtel and Airtel because of network availability, their network connectivity is so
good so much so that if you are unable to transact at one agent, u can easily access their
services at the nearby agent.” (Personal Interview January 2020).
“I am loyal to Zoona because they are reliable. Even if people say that they are expensive, but it
is rare that you experience network failure and lack of cash. At the same time, their agents are
competent and know how to take care of customers.” (Personal Interview, January 2020).
Besides, service quality was measured in terms of efficiency and timely services. Therefore,
consumers are attracted to providers that offer timely services:
“The services for MTN, Zoona and Airtel are quicker than those offered by Shoprite, particularly
because of the long waiting time in the queue. Instead of attending to other businesses, one is
able to spend a lot of time queuing up to send or receive money.” (Personal Interview,
January,2020).
These sentiments are in conformity with the findings of Sinhas and Wagh (2008) that consumers
prefer lower tariffs and better service to in their purchase of products.
37
Further, other consumers choose to use mobile money brands based on convenience. For
instance, some consumers cannot access the services of certain providers because time cannot
allow them to do so. The views of respondents attest to this fact:
“Some mobile money providers attract consumers because they work on weekends. Sometimes, it
is very difficult to transact during weekdays, especially for those who are in formal employment.
Most of the agents do close their outlets by the time they knock off. So, weekends become the
appropriate time for them to conduct their transaction Mobile money services generally refer to
payment services operated under financial regulations and performed from or via a mobile
device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile to pay
for wide range of services and digital or hard goods.
Mobile money services are being deployed rapidly across emerging markets as a key tool to
further the goal of financial inclusion. Financial inclusion, the development of novel methods to
enable individuals at the base of the pyramid to access formal financial services and become part
of the formal financial system, is considered a key pre-requisite for lifting these populations out
of poverty and for driving economic growth. (Personal Interviews, Febraury,2020).
Convenience can as well be viewed in terms of physical presence of vicinity of mobile money
provider. According to respondents, they choose to use certain providers because they are the
only ones in the area where they are transacting from or transacting to.
“I use MTN,Zamtel and Airtel money to send money to my parents. Their outlets are everywhere
in the country, even in the remotest parts of the country like my village, people are able to send
and receive money through their services. So, I have opened an account for them where I deposit
money for them every month. In the past, I used to send money to them through their neighbors
and minibus drivers, but the money did not always reach them. There were cases of
misappropriation. But with MTN money reaches them safely.” (Personal Interview, January
,2020).
38
“I normally, use mobile money to send money to my relative in the village because there is no
bank or any other means of transaction. In the past, they used to travel to long distances to
nearby towns to receive money, but with the advent of mobile money services, they receive
money at doorsteps although they are sometimes, disappointed with the lack of liquidity at
receiving agents.” (Personal Interview, January,2020)
The foregoing views imply that that if consumers use certain brands out of convenience. If they
had an opportunity, they would use other brands. This outcome seems to confirm that social,
personal and psychological factors have effect on consumer’s decision-making process
(Lautiainen, 2015).
assume
The other factor determining consumer’s choice of mobile money brand is security. Some
consumers are very cautious of the safety of their money. Thus, choose to transact with providers
that prove to be more secure than the others, especially when transacting in bigger amounts. As a
result, respondents echoed similar sentiments:
“Some mobile service providers operate in infrastructure, which is very insecure. Particularly,
MTN, Zoona ,Zamtel and Airtel Money, they operate in open places where everyone is able to
see that there is a financial transaction being made. Worse still, there is no police presence or
security agents around to scare away thieves. Therefore, they operate in circumstances that are
very risky and vulnerable to possible attacks, especially if it in involves huge sums of money.”
(Personal Interviews, January,2020)
“I cannot save my money with a mobile money service provider because they are not really
secure, and presence is not guaranteed. Sometimes you find that some days they are open while
on other days they are not. In case of bankruptcy, it will be difficult to recover your money. So, it
is better to transact with them there and then.” (Personal Interview, January 2020).
“I use Shoprite (Banks/MFIs) for security purposes and threshold. Shoprite is more secure than
these other mobile money services providers (MTN, Airtel,Zamtel and Zoona). There have put in
place security measures in place and are able to transact in huge amount compared to these
39
others because threats of theft are minimized. Also, they are a well-established company and
found in almost all the towns of the country.” (Personal Interviews, January,2020)
The foregoing result implies that security is a factor in determining consumer choice of a mobile
money brand. Again, this supports the claim that social, personal and psychological factors have
effect on consumer’s decision-making process (Lautiainen, 2015).
Moreover, other consumers are motivated to use a mobile money brand because it is the one used
by their family or friends. For instance, some providers do not have networks in certain places
where consumers’ friends or relatives are found. Therefore, they are obliged to use what is
available to them (Solomon et Al., 2013). This scenario limits the choice of a consumer as
expressed by a respondent:
“I use MTN,Zamtel and Airtel to send money to parents in the village because these other
providers are not existent in my home village.” (Personal Interviews, January, 2020)
Related to network used by acquaintances is agents’ availability. Some providers do not have
agents in some places. Therefore, consumers have got no choice but to use the available
networks or in the area. If they have to access services of another provider, they to travel long
distance thereby accruing unnecessary expenses on transports and other logistics.
“I am aware that other providers have better services than MTN,Zamtel and Airtel, where we
have to experience lack of liquidity and limited threshold, but these are the only providers
available in my area. So, we have no choice.” (Personal Interviews, January 2020)
Finally, some consumers are motivated by to use mobile money brands because of customer
care. Though not a major fact, some consumers treasure very much how they are handled in their
transactions, especially regarding complaints. In this regard Kotler (2004) argue that consumer
behavior is influenced by the quality of service received. Once a consumer appreciates the
quality of care received, they are likely to remain loyal to a provider. This is evident from the
following sentiments:
40
Figure 4.7 Factors that Motivate Consumers Switch Brands of Money Services
Table 4.7 shows factors that make consumers switch providers. The study revealed network
delay (15%), lack of enough agents (23%), incompetent agent (6%), amount threshold (13%),
insecurity (14%) and cost of service (29%) are the factors that make consumers switch mobile
money service providers. This implies that the major reason why consumers switch mobile
money services is the cost of service.
To illustrate, the study revealed that most consumers tend to switch providers because of the cost
of services. That means, when the price of the product is not affordable to many consumers, they
switch to other consumers that are have prices that are affordable to consumers (Kotler, 2004).
In this regard, respondents are not attracted to products that are expensive:
“I use MTN because it is cheaper and affordable compared to Zoona. I can only use them when I
am definitely sure that I cannot find any MTN outlet nearby” (Personal Interviews, January
2020).
41
Moreover, other consumers switch mobile providers because of lack of availability of agents.
Thus, Nasr et al. (2012) argue that there is a linkage between market coverage and consumer
behavior in mobile industry. Some providers have not yet penetrated into some parts of the
country, especially the remotest areas. Thus, they are concentrated in towns; thereby limiting
their customer base. This is evident from the following respondents’ views:
“Some brands, such as Shoprite(Third-party) are cheap, but they are not present in some places.
They would have the best service provider if they rolled out their services countrywide. However,
they are only limited to town. Also, the fact that they are cheap, they attract a lot of clientele,
thereby making the creating another problem for customers, which is long waiting time. People
end up spending a lot of time in sending and receiving money instead of doing other fruitful
activities. As a result, they decide to go to other service providers whose services are quicker
even if they are slightly expensive.” (Personal Interviews, January, )
Other providers such as Shoprite (under banks) and Zoona(Third-party) are found in selected
places, mostly in urban. So, if there is network problem in one area, the consumer will have no
choice but to wait until network is restored. Otherwise, they will have to travel long distances to
go and access another Shoprite outlet where again, it is not a guarantee that there will be
network (Personal Interviews, January 2020).
“One of the contributing factors to choosing mobile money brands over others is ease
accessibility. Shoprite services are cheaper, but they are geographically dispersed such that they
are not available in certain places.” (Personal Interviews, January 2020).
Further, other consumers switch providers for security reasons. According to Singh (2012),
safety perception influences consumer behavior of mobile money service consumers. Apart from
Shoprite, the other providers operate in circumstances that are apparently, insecure. Consumers
want to make financial transactions in situations that are secure; otherwise, they switch to other
providers that appear to be more secure. The following views from respondents support this
assertion:
42
“I only send and receive money through mobile money service providers. I cannot save money
with them because they are not banks are not very safe. Even after collecting money, they also
have to go and deposit it in the bank. So, there is no need. In fact, in the event of death, there is
no guarantee that the next of kin will be able to access the money left by the deceased person.”
(Personal Interview, September 2017).
Some mobile money outlets are not secure; some of them such as MTN and Airtel do not operate
in permanent places. Sometimes you find that today they are there but the other day they are not.
In fact, the booths for Airtel and MTN are leased out to different agents such that in case of
fraud, it becomes very difficult for a client to find where to address their complaints to, in case of
grief (Personal Interviews, January, 2020).
Associated with insecurity is the transaction threshold. Some providers have limited threshold
that discourages certain consumers to transact with them. That means they limit themselves to
small transactions that only allow consumers to deal with day to day demands. Thus, some
consumers express their displeasure:
“I switched to other providers when I got disappointed with the services of MTN. Their services
are not reliable. For example, most of the times when I wanted to send money; they told me there
was no deposit space. So, I had to wait for another customer to come and make withdraws for
that space to be created. Again, when I wanted to receive the money, there was no cash available
until such a time when another customer would come to deposit or send some money. Worse still,
if the money deposited was not equal to what I was receiving, I continued to wait. So instead of
spending a few minutes, I ended up spending hours, which I could have used in doing activities.”
(Personal Interviews, January 2020).
Finally, other consumers switch providers based on the quality of services. The quality of
services of a mobile money provider is a double-edged factor. That means, it can make
consumers to be loyal to the brand or discourage them and force them to switch to other
providers. Likewise, consumers of mobile money switch providers when they are not satisfied
with the services (Kotler, 2004). This is also demonstrated in the following views:
43
“I use mobile money services to send money to my children who are at school. With the presence
of MTN agents everywhere, my children are able to access easily. However, they are sometimes,
inconvenienced because of lack of cash at the receiving agents, especially in remote areas. Most
of these providers’ operators do not hold cash for security purposes. Therefore, if they have no
cash to give a recipient, they have to wait until another client comes to send some money.
Otherwise, the person has to wait for hours to get their money or go the nearby outlet.”
(Personal Interviews, January 2020)
“Others also, such as MTN, Zoona and Airtel, attract their customers because they have taken
their services to the doorsteps of consumers in their communities. But the quality of their
services does sometimes, discourage consumers. Sometimes they experience system failure and
lack of liquidity or funds, especially, for receiving clients.” (Personal Interviews, January 2020)
4.4 Attitudes of Consumers towards Mobile Money Service Providers

This section shows different attitudes of consumers towards different mobile money service
providers in Zambia. Attitude of consumers are considered as key concept on consumer
behavior. Ravi & Arumugasamy (2013) define attitudes as the consumer total evaluation of the
product. Accordingly, attitude has an influence on purchase intention and consumer behavior
because it has basic psychological function (Kotler, 2004). Based on Ravi & Arumugasamy’s
definition, following is the outcome of the total evaluation of products and services offered by
different mobile money providers:
44
Figure 4.8 Attitudes of Consumers towards mobile money service providers in Zambia
Figure 4.8 shows consumers’ attitudes towards various mobile money service providers. The
study revealed that 17% appreciate the quality of service offered by MTN, Airtel 13%, Shoprite
32% and Zoona 38%. This implies that consumers appreciate the quality of services offered by
Zoona whereas those of those of Airtel are the least appreciated.
In terms of pricing, the study showed that 38% appreciate the pricing of MTN, 27% Airtel, 19%
Shoprite and 16% Zoona. This implies that most of the consumers appreciate the pricing system
of MTN,Zamtel and Airtel while that of Zoona is the least appreciated. Accordingly, Kotler
(2004) claims that pricing is part of marketing mix that influences consumer behavior.
Also, the following attest to this assertion:
“The costs of MTN are very affordable. You can send and receive huge sums of money at a
minimal cost. In fact, there are no monthly charges involved when you open an account with
them. You only pay when you are sending, receiving and withdrawing.” (Personal Interview,
March 2020).
45
As for the marketing strategies, the study showed 69% MNOs, 12% Bank/MFIs and 19% Third-
Party. This result demonstrates that consumers appreciate the marketing strategies of MNOs
more than they do for Shoprite and Zoona. In this regard, respondents argue that:
“While Shoprite and Zoona depend very on advertising through quality services, MTN, Airtel
and Zamtel invest a lot in marketing strategies, but it is rare to see a Shoprite or Zoona advert.
They rely very much the word of mouth of their clients.” (Personal interview, March 2020)
The foregoing state of affairs seems to suggest that reference groups are one of the determining
factors in influencing consumer behavior (Belch & Belch, 2012).
Regarding security system, the study revealed that 17% appreciate the security of MNOs and
Third-Party respectively, and Banks/MFIs 66%. This shows that most of the respondents
appreciate the security systems of Bank/MFIs more than they do for MNOs and Third-Party.
Security is vital in dealing with financial matters (Khosla, 2010) Thus, respondents explain that:
“These providers, who operate through agents in kiosks do not inspire confidence in some
consumers in terms of safety, especially those transacting in larger amounts. Their environments
are very unpredictable such that anything is possible, especially that their structures are not
permanent. In fact, even the workers keep on changing kiosks. As a result, it becomes very
difficult to tract the person you dealt with in case of fraud.” (Personal Interview, February
2020).
In terms of network efficiency, the study revealed that 55% appreciate MNOs, 25% Banks/MFIs
while 20 % third-party. This shows that consumers appreciate network efficiency of MNOs.
Network quality is part of quality service (Singh, 2012). Therefore, respondents claim that:
“The networks for some mobile providers are not reliable. You find that when you are in serious
need of making a transaction that is when there is no network. As a result, you are obliged to go
to other nearby pay point in search for similar service.” (Personal Interviews, January 2020).
46
As for network coverage, the study revealed that 38% appreciate MTN, 32%Airtel, 16% Zoona
and 14% Shoprite. This result implies that most the consumers appreciate the network coverage
of MTN and Airtel rather than those of Shoprite and Zoona. Thus, Oyeniyi & Abiodum (2010)
claim that assert that network coverage enhances consumer retention when they are satisfied and
disloyal when they are dissatisfied. Thus, respondents argue that:
“Some providers are not found everywhere. They are concentrated along the line of rail. They
argue that it is very difficult to operate in rural areas because the cash flow is very poor.
Therefore, it becomes very difficult to run a business, which is based on depositing and
withdrawing by clients.” (Personal Interviews, February 2020).
4.5 Chapter Summary

This chapter has presented the data based on the research questions and objectives of the study.
Particularly, it has presented demographic information of the participants, the factors that
motivate consumers to choose certain brands of mobile money rather than others. Also, it has
looked at the consumer attitudes towards different brands of mobile money providers.
47
CHAPTER SIX: CONCLUSIONS ARE RECOMMENDATIONS
5.1 Introduction
This chapter concludes the dissertation. Particularly, is dedicated to the summary of the findings
and their implications. In other words, it focuses on the conclusions of the study and
recommendations for further action and future research.
5.2 Summary of the Findings

The findings were based on the survey data from the sample size of 79 respondents from 18
mobile money service providers. The research site and setting were 3 cities of the; namely
Lusaka, Livingstone and Ndola.
Thus, the first objective of the study was to identify factors that motivate consumer to select
brands of mobile money in Zambia. The study revealed that network used by friends or family,
quality services, pricing, network Efficiency, Convenience, customer care, security and
availability of agents are the factors that motivate consumers to select brands of mobile money.
This implies that the behavior of consumers of mobile services in Zambia is influenced by
marketing mix as well as social –psychological factors (Kotler, 2004; Khosla, 2010).
The second objective was to determine the attitudes of consumers towards various mobile money
brands in Zambia. The study showed that consumers appreciate the quality of services offered by
MNOs, and those of those of Third-Party are the least appreciated. On the other hand, consumers
appreciate the pricing system of MNOs and Bank/MFIs rather than Third-Party. Furthermore,
consumers believe that the marketing strategies adopted by MNOs are more robust than for
Third-Party. Besides, consumers feel more to transact with Bank/MFIs (Shoprite which is under
Stanbic bank) because the security system is better than MNOs and Third-Party. At the same
time, consumers feel Shoprite has better network efficiency compared to the other providers in
the market. Finally, although consumers complain of poor network inefficiency, they believe that
MTN and Airtel money have very good network coverage. The findings suggest that consumer
attitudes towards mobile money brands are influenced by marketing mix as well as social–
psychological factors (Kotler, 2004; Khosla, 2010).
48
5.3 CONCLUSION
Consumer behavior is not neutral. It is always influenced by other factors. Thus, consumers of
mobile money services in Zambia select mobile money brands based on their influence from the
marketing mix provided by different providers as well as the social –psychological factors.
Therefore, to grow their businesses or to remain competitive in the mobile money industry,
providers have to understand different social psychological environments that different
consumers of Zambia belong to for them to be able to provide effective marketing strategies.
5.4 RECOMMENDATIONS
Based on the conclusions of the study, the following recommendations are made in order to grow
the mobile money industry in Zambia:
Permanent Structures
There is need for mobile providers such as MNOs and Third-Party to build permanent structures.
This will enhance security at their operation points thereby promoting trust among consumers.
Expansion of network coverage

There is need for providers such as Banks/MFIs and Third-Party, to expand their services to
other parts of the country, especially the remotest areas so that they capture as many customers
as possible. Their concentration along the line of rail excludes a lot of potential customers.
Increase amount of Threshold

There is need for providers such as MNOs to increase the transaction threshold so that more
clients could be captured. At the moment consumers who would like to transact amounts that are
more than the threshold are left out.
Advertisements
Instead of relying on consumers to advertise their brand, a provider such as Banks/MFIs needs to
put in place robust marketing strategies to grow their customer base. Apart from being a bank,
some potential consumers are not aware of that Bank/MFIs offers mobile money services.
49
5.5 Limitations of the Study
One of the obstacles encountered in the course of the study was related to the population of the
study. Specifically, some of the users of mobile money services did not understand the value of
the study even after explaining to them its purpose. As a result, the non-response bias was high
as most of them took the exercise as a waste of their time as they did not see their direct benefit
in being interviewed. Besides, others refused to be part of the study on suspicion that their
money would be stolen. Thus, they walked away even before the researcher could explain to
them the purpose of the study and the importance of their participation.
Also, the fact that interviews were conducted on an open marketplace, some of the passersby
who overhead the conversation tried to make some comments to persuade the interviewee to
respond according to their views. Thus, i had a tough time in making respondents understand the
value of giving their own personal views on their experience with mobile money services. This
scenario made the interview to consume more time than expected. However, future research
could avoid such a situation by looking for a conducive environment to interview customers
rather than the one used in this study.
Another problem was related to language barrier. Particularly, some of the potential participants
were unable to communicate in English as they only spoke the local language. As a result, they
could not participate in the study. The situation would have been easier if the tool was translated
into different local languages of the country. Consequently, I strived to look for external help to
translate into the language that was familiar to the respondents, but there is a risk that endangers
the validity and reliability of the information. However, the researcher made sure that translated
conversations were recorded so that I could later on look for second opinions on the translation.
Finally, the sampling technique that was used for the study does not allow for statistical
generalization of the findings because the sample size may not be representative enough of the
study population. That means, the samples could not present homogeneous characteristics due to
convenience sampling. However, I tried to get as much detail as possible from the sampled
population and accurately record and analyze the findings.
Also, the data collection instrument, personal interviews contained open ended questions, which
were highly vulnerable to biasness as they allowed a lot of room for creativity on the part of
50
respondents. However, the study tried to limit the extent of biasness by widely consulting
existing literature on consumer behavior to triangulate the findings.
5.6 RECOMMENDATIONS FOR FUTURE RESEARCH
Literature has shown that there is scarce literature on the behavior of consumers, especially
regarding brands in the mobile money industry in Zambia. At the time, when the country is
trying by all means to enhance financial inclusion of the unbanked, this field demands for more
studies. Consequently, relying on the findings and limitations of this dissertation possible areas
for further research include the following:
A countrywide study on the behavior of consumers towards mobile money brands in Zambia.
Such a study would give a wider picture of what is obtaining in the mobile industry in Zambia in
Zambia in terms of consumer behavior.
There is need for a comparative study of marketing strategies employed by different mobile
money providers to attract and retain consumers in Zambia. Such a study will highlight positive
practices from different mobile providers that could be copied by other providers in enhancing
the quality of their services.
51
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APPENDICES
Appendix 1: Semi-structured personal Interview Schedule
Questionnaire for consumers and mobile money Agents
Name of Provider..............................................................................................................
1. DEMOGRAPHIC INFORMATION
A. Age Distribution (years)
15-20 [ ]
20-30 [ ]
30-40 [ ]
40-50 [ ]
50 and above [ ]
B. Educational Qualification
Primary [ ]
Secondary [ ]
College [ ]
University [ ]
C. Occupational Status
Self employed [ ]
Employed [ ]
Retired [ ]
Unemployed [ ]
2. CONSUMER PREFERRED MOBILE MONEY SERVICE PROVIDER

A. Presently using the network
Airtel Money [ ]
MTN Money [ ]
Zoona [ ]
Zanaco/fnb [ ]
56
3. FACTORS INFLUENCING THE SELECTION OF MOBILE SERVICES
PROVIDER
A. What factors that motivate you to select mobile money service provider
Network used by family/friends [ ]
Pricing [ ]
Quality of services [ ]
Convenience [ ]
Network Efficiency [ ]
Customer care [ ]
Security [ ]
B. Justify why you think the factors you have chosen motivate consumers to select
mobile money service providers.
C. What factors from the following contribute to switching of mobile money service
provider?
Friends [ ]
Family members [ ]
Advertisements [ ]
Poor quality services [ ]
Lack of security [ ]
Lack of enough agents [ ]
Incompetent agents [ ]
Threshold amount limit [ ]
High cost of service [ ]
Distance [ ]
Other [ ]
D. Justify the factors why you think the factors you have mentioned contribute to
customers switching mobile money service providers?
4. ATTITUDE OF CONSUMERS TOWARDS MOBILE MONEY SERVICE

PROVIDERS
A. Are you satisfied with your current mobile money service provider?
Yes [ ]
No [ ]
57
B. Which of the following factors do you appreciate for the mobile money service
provider that you use?
Quality of service
Pricing
Marketing mix
Security
Network efficiency
Network coverage
C. Justify why you appreciate the factors you mentioned for the mobile service provider
that you use
5. Recommendations
A. What do you think mobile money service providers should do to attract and retain
more consumers to their brands?
Appendix 2: Samples of Kiosk of Mobile Money service providers
58
59
60

Investigating Consumer Preference and Usage of Mobile Money Services in Zambia

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Investigating Consumer Preference and Usage of Mobile Money Services in Zambia

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CAVENDISH UNIVERSITY ZAMBIA

SCHOOL OF ARTS, EDUCATION AND SOCIAL SCIENCES

INVESTIGATING CONSUMER PREFERENCE AND

Supervisor: Mr. Kabwe Teddy Kabwe

A Dissertation submitted to Cavendish University in partial fulfilment of the

Table of Contents ......................................................................................................................... iv

Chapter One: Introduction………………………………………………………………………...7

1.1 Background to the Study………………………………………………………………………7

1.1.1 Mobile Money……………………………………………………………………………….8

1.1.2 Mobile Money in Africa…………………………………………………………………….8

1.2 Problem Statement…………………………………………………………………………...12

1.3 Rationale for the Study ……………………………………………………………………...12

1.4 Aim of the Study……………………………………………………………………………..13

1.5 Objectives of the Study………………………………………………………………………13

1.6 Research Questions…………………………………………………………………………..13

1.7 Structure of the dissertation………………………………………………………………….13

Chapter Two: Theory and Literature Review………………………………………………..15

2.2 Consumer Behaviour………………………………………………………………………...15

2.2.1 The Stimulus-Response Model……………………………………………………………16

2.2.2 Veblenian Social-Psychological Model……………………………………………………18

2.3 Conceptual Framework………………………………………………………………………20

2.4 Need for Further Research…………………………………………………………………...25

2.5 Summary and Conclusion……………………………………………………………………26

Chapter Three: Research Methodology………………………………………………………27

3.3 Research Approach…………………………………………………………………………..27

3.3 Research Design……………………………………………………………………………..28

3.4 Justification of Questions……………………………………………………………………28

3.5 Sampling Approach………………………………………………………………………….29

3.6 Sample Size………………………………………………………………………………….29

3.7 Access of participants……………………………………………………………………….30

3.8 Data Collection………………………………………………………………………………30

3.9 Pilot Study……………………………………………………………………………………31

3.10 Data Analysis……………………………………………………………………………….31

3.11 Reliability and Validity……………………………………………………………………..31

3.12 Ethical considerations………………………………………………………………………32

3.13 The Position of the Researcher in the Study……………………………………………….32

Chapter Four ............................................................................................................................... 30

Data Presentation and Discussions……………………………………………………………36

5.2. Demographic Characteristics of the sample………………………………………………...36

5.2.1. Research site and setting…………………………………………………………………..36

5.4 Attitudes of Consumers towards Mobile Money Service Providers…………………………50

5.5 Chapter Summary……………………………………………………………………………53

5.2 Summary of the Findings…………………………………………………………………….54

5.5 Limitations of the Study……………………………………………………………………...56

1.1.1 Mobile Money

1.1.2 Mobile Money in Africa

Corporation (known as ZamPost) and Zoona

as illustrated in figure 1.1

Figure 1: Market Shares of Digital Financial Services

Source: HELIX Institute of Digital Finance (2018)

Furthermore, the Mobile Money industry in Zambia is characterized by widespread adoption of

Table 1: DFS Market Overview in Zambia

1.2 Problem Statement

1.3 Rationale for the Study

1.5 Objectives of the Study

1.6 Research Questions

1.7 Structure of the dissertation

2.2 Consumer Behavior

2.2.1 The Stimulus-Response Model

STIMULI BLACK BOX RESPONSES

(i) Reference groups

(iv) Social class

2.3 CONCEPTUAL FRAMEWORK