THE INSURANCE INSTITUTE OF ZIMBABWE FELLOWSHIP RESEARCH

EVALUATING THE UPTAKE AND USAGE OF MOBILE-APPLICATIONS AS AN

EFFECTIVEMARKETING TOOL IN ZIMBABWE’S SHORT-TERM INSURANCE
SECTOR

BY

MAKUZVA MALCOLM MUNASHE

1.0 Introduction

In recent years, there has been an increase in the use of mobile applications as marketing
tools. According to the Mobile Marketing Association (2008), mobile marketing provides
organisations with an opportunity to connect directly with their customers beyond traditional
marketing. The main purpose of this study is to investigate the uptake and usage of mobile-
based applications as a marketing tool in the Zimbabwean short-term insurance sector. This
proposal will cover a general introduction of the research topic.. In particular, it highlights the
background of the study, problem statement, and objectives to be archived by the researcher,
research questions, justification, and the scope of the study. Further, it also outlines the
limitations of the study, assumptions the researcher would make and research methodologies
to be used. Lastly, the proposal would end with literature review which covers content written
by others on the same topic and a reference list of authors used by the writer.

1.1 Background

The wave of technology advancement has in general overshadowed all sectors of

Zimbabwe’s economy and the world at large (reference). According to Nyoni (2016)
technology is the use of scientific knowledge for practical purposes or application.
SUPERVISOR: Ms P.DUBE (NUST)
This rapid technological advancement and rise of the internet of things has resulted in the
development of smart phones and applications that have brought about amazing advantages
to the world population. According to Statista (2022), as of January 2022, Morocco had an
internet penetration of approximately 84.1 percent, making it the highest internet penetration
in Africa. Seychelles ranked second, with 79 percent, followed by Egypt with approximately
72 percent. As of August 2021, in Sudan about 89 percent of web traffic was generated via
smartphones and only 10 percent via PC devices. This was in part due to the fact that mobile
connections are much cheaper and do not require infrastructure that is needed for traditional
desktop PCs with fixed-line internet connections. In an article by Valentine (2021), The
Zimstat and POTRAZ 2020 ICT Access by households and individuals report revealed that
mobile data is the most widely accessible form of connectivity at 95.7% for narrowband with
broadband at 93.1%. This advancement in the tremendous adoption of smartphones and
internet usage has seen marketers diverting their communications to mobile apps neglecting
traditional marketing methods (Smith et al, 2020).

Digital marketing which is aligned to Mobile Apps can therefore mean promoting and
communicating the buying or selling of products and services using the
internet and online based digital technologies such as computers, mobile phones and other
digital devices (Warren et al, 2021). According to Sawicki (2016), a digital marketer is
someone who exploits digital technologies which are used to create channels to\ reach
potential recipients, in order to achieve the enterprise’s goals through more fulfilment of
customer needs.

Stevens et al (2021) states that Mobile apps are defined as add-on software for handheld
devices, such as smartphones and personal digital assistants (PDA). Among the most popular
are games, social networking, maps, news, business, weather and travel information.
Furthermore, Lee et al (2021) states that, “Mobile Apps date back to the end of the twentieth
century. Typically, they were small arcade games, ring tone editors, calculators, calendars,
and so forth. The beginning of the new millennium saw a rapid market evolution of mobile
content and applications. Operating systems for smart phones (Windows Mobile, Symbian,
RIM, Android, Mac iOS), are open to the development of third-party software, unlike the
conventional programming environment of standard cell phones.” According to A. Gajic
(2022), in the Q1 of 2022, internet users downloaded roughly 28.3 billion apps from Google
SUPERVISOR: Ms P.DUBE (NUST)
Play only and around 8.5 billion downloads in the Apple Store. ClearlyGoogle Play platform
seems to be a better option but the Apple App Store has always been stronger in terms of
revenue generation.

Duncan et al (2021) clarifies that the major mobile app is a mobile web app which is
developed with web technologies and delivered via a web browser. Morgan et al (2021)
reported that, “A branded app is a mobile application created by a company to promote its
brand. Branded apps typically reflect the brand's identity and feature its values, colours, logo,
visual identity and style, slogan, and more.” Branded Apps are generally owned by the
launching company. In an article by Minn et al (2021) data collected by Global System for
Mobile Communications Association (GSMA) Intelligence reviewed that from Zimbabwe’s
14.98 million people about 5.01 million people use the internet. The internet penetration rate
stood at around 30.6% of the total population as at January 2022. GSMA Intelligence showed
that there were 13.64 million cellular mobile connections in Zimbabwe and that’s nearly 91%
of the population.

NicozDiamond Insurance Pvt Ltd Company, one of the top 5Zimbabwe’s short-term
insurance giants launched its own mobile application in 2018 called NDI Connect. The online
app is freely available on GooglePlay and Appstore so that users can easily download and
experience. Other local short-term insurance companies also invested and launched their
branded mobile Apps. Just to mention a few, Cell Insurance with BuzzApp, CBZ Insurance
with CBZ Touch, Champions Insurance with Champ App, Econet Insurance with Moovah
App and Old Mutual with Old Mutual Insurance App. This drive also extended to broker’s
and agencies and these are intermediaries who sell insurance products on behalf of insurance
companies. TelOne recently launched it’s multi-agencies mobile app called InsurerMe that
enables it to sell insurance products on behalf of about 8 local short-term insurers.

Mobile Apps have brought insurance convenience to a higher level through new interactive
website.The platforms allow users to get insurance on the go by downloading branded mobile
applications from Google Play and App Store. This service offers a more convenient way of
accessing insurance services at all times. Traditionally, insurance has been a sold under brick-
and-mortar channels where clients have to visit the insurer or broker’s office to buy
insurance. With technology becoming more prominent mobile apps has brought insurance to

SUPERVISOR: Ms P.DUBE (NUST)

the client’s fingertips. Pandemics like Covid 19 fueled the need to go digital and slowly move
away from physical interactions. These branded apps are meant to offer a wide variety of
services and some of them include the following:
 Access all their policy details such as dates of coverage, items that are on cover, sums
insured and other policy conditions.
 View their registered claims, claim amount as well as settlement progress.
 Get details of their past claims experience or Loss Ratios.
 Get insurance quotations from the uploaded product catalogues.
 Buy their insurance policies and pay for it online. Some applications provide various
payment options which include Visa, MasterCard, Zimswitch, Ecocash and Telecash
which allow for cashless transactions.

According to Y.Chang (2016), the following are the key drivers of mobile apps:
Innovation in mobile space such as proliferation of smart phones, higher bandwidths offered
by 3G (Third generation) and 4G (Fourth generation) technologies powering mobile devices.

Consumer behavior: Customers are more used to mobile devices and is easy for them to
access information on the move.

Personalized content delivery: Enterprise can leverage the location and sensors to offer
more contextualized, relevant and personalized content, offers and advertisements.

Mobile ecosystem: An explosive growth in Mobile Applications stores such as Apple store,
Google Play store, Windows marketplace store was coupled with availability of games,
utilities and other apps.

Social Networking: With the popularity of web 2.0 and social media technologies such as
Facebook, Twitter, Facebook, Instagram users are increasingly using the social media
platforms.

However, the researcher believes thatin as much as mobile applications are one of the best
digital marketing tools, implementing them is no easy road. Top shelve drawback is that they
are costly to develop and to administer. In an article by R.Mariana (01 July 2020), a median
price to create m-apps by expert agencies is USD$171,450.00. She added that, there are fees
for listing mobile applications, the initial developments costs, the cost of launching and
running the app.

S.Parker, 23 May 2022, cited that most Mobile Apps are online and insureds shun from them
because internet data is costly. This is the case especially in Zimbabwe where one would
need at least USD$2.00 worth of internet data to download, successfully install and access an

SUPERVISOR: Ms P.DUBE (NUST)

online application. Most Apps would first require visiting a company’s website to get a direct
link to their app and possible tips on how to use it. This also consumes data.

Furthermore, it means Mobile Apps can not substitute a website. It also means a company
must have both running simultaneously. That is double the effort and double the money
which has a strong bearing on operational expenses.

S.Parker also reviewed that some customers might actually have troubles finding and using
the application. She said, “sadly, most applications never make their first download. Without
downloads, consumer reviews to bump up ratings and positioning aren’t possible, leading to a
vicious cycle of no downloads, no reviews, no visibility, and again – no downloads.” She
added that Many consumers, all over the world are becoming less inclined to download new
applications. They mostly prefer to conserve their device resources. To support this notion a
Zipwhip 2019 State of Texting Report found that 61% of consumers would not install a new
application to communicate with a business.The report added that typical consumer struggles
with data management and 21% of consumers abandon new applications after a first
download. Plus, a massive 77% of consumers never use an application again 72 hours after
installing it. This poses a question on launched mobile apps.

According to L.Deed, 12 July 2022, there is also need for organizations to budget for extra
marketing pressure. Every launched mobile apps needs to be well marketed and constantly
remind clients of its existence. This has a potential of driving clients towards its usage.

Since technology is never static, mobile apps also need to be updated and maintained. L.Deed
explained that customers would possibly need to update their software or redownload the
newer version. Also new products and services would need to be uploaded.

The aforementioned reviewed that within the generalized smooth mobile app road there
might be potholes, unevenness or bumps that companies need to consider. In this research,
we would want to unpack the uptake, usage and profitability ofMobile Apps within
Zimbabwe’s short-term insurance market.

1.2 Problem Statement

There has been a significant upshot in the number of mobile users yet insurance companies
are failing to have corresponding customers which may point out to poor marketing
strategies. Other industries such as we sports betting have management to tap into the mobile

SUPERVISOR: Ms P.DUBE (NUST)

world to generate customers with fair success. This then brings the issue of what may be
happening or not happening in the insurance sector.

1.3 OBJECTIVES

The main purpose of thisresearch is to evaluate the effectiveness of mobile Apps used by
short-term insurance companies in Zimbabweas a marketing tool versus traditional marketing
tools in promoting insurance products. Traditional marketing tools include the use of
intermediaries (brokers and agents), bancassurance, opening branches and physical client
visits just to mention a few. These methods have been yielding positive results and making
companies profitable.

1.3.1 Primary objectives:

To assess the effectiveness of mobile apps in marketing short-term insurance products within
Zimbabwe.
1.3.2.Secondary objectives:
 To evaluate the effectiveness of mobile apps in promoting short-term insurance
products.

 To identify factors driving the need to invest in mobile apps within short-term
insurance markets.

 To assess the uptake and usage of branded mobile apps within short-term insurance
this should be your first secondary objective

 To identify challenges associated with mobile apps and disadvantages of shunning

traditional marketing methods

 To recommend the possible solutions to best manage mobile apps.

1.4 RESEARCH QUESTIONS

 How effective are mobile apps in promoting short-term insurance products?

 What are the key drivers of investing and launching mobile apps for short-term
insurance services?
SUPERVISOR: Ms P.DUBE (NUST)
  Can short-term insurance companies completely go digital and move away from
traditional marketing methods and what are the implications?

 What challenges are short-term insurance companies facing in the uptake and usage of
mobile apps?

 What are the possible solutions to best invest and manage mobile apps?

1.5 JUSTIFICATION OF THE STUDY

This findings of the study are expected to help insurance companies and other financial
service providers who want to invest and those who already have mobile Apps. Instead of just
following the wind, this project will outline instruments that needs to be considered before
making such huge investments and how best can an institution enjoy mobile app fruits.
Justification of the study must be based on the findings of the study

1.6 SCOPE OF STUDY

The study will be conducted in Harare, Zimbabwe where the majority of short-term insurance
companies retain their headquarters. The departments to be covered are the underwriting
department, risk management department, marketing and the claims department. All targeted
respondents are the key areas where mobile App functions are useful. The study will
specialise onlyon local short-term insurance companies.

1.7LIMITATIONS
a) Financial constraints may hinder the researcher from accomplishing research objectives as
scope cannot be widened to a larger geographical scale.

b) The research cannot cover extensively all insurance companies within Zimbabwe as this
would require enormous data compilation.

c) Sensitivity of information write this in full.

d) Company bureaucracy may hinder the accessibility of all the relevant information for the
study

SUPERVISOR: Ms P.DUBE (NUST)

1.8ASSUMPTIONS OF STUDY
The following assumptions will be made in this study:
 The respondents will have insight on the subject under study. The respondents/
insurers will respond truthfully in answering the questions asked such that the
findings are credible, complete and relevant.

 The sample to be used in the study is a representative of the whole insurance market
in Zimbabwe

1.9 RESEARCH METHODOLOGY

Research design
The research will be a descriptive survey within which the overall research will be conducted.
The research design will highlight how data collection, measurement and analysis of the data
collected will be tattled. The research design in this project will facilitate advance planning of
data collection methods and analysis techniques to ensure availability of time, and other
resource in order for the research to be a success.
Research design is also crucial in helping in the organization of ideas and a framework within
which the study will be conducted and to look for errors and other shortage long in advance
before they are done. It will also be helpful in facilitating smooth production of research
within minimum expenditure and maximum value. Survey research design will be used in
this project proposal. This design method will be used because of the low cost and easy
accessibility of information. It is worth to note that conducting accurate and meaningful
surveys is one of the most important facets of research. The survey research design will be a
very valuable tool for assessing opinions and trends.

Types of data
In this research, the data to be used is both secondary and primary data. The secondary data
will include the internet sources, textbooks, previous thesis, newspapers and journals.
Primary data will include online questionnaires that will be sent out to departments within the
insurance company and also data collected from follow up interviews.

Sample size and sampling techniques

SUPERVISOR: Ms P.DUBE (NUST)
In this research the author is going to focus on major short-term insurance companiesin
Zimbabwe. The target population to be used will consist of staff from the respective
departments. The respondents should include individuals of either gender covering
department heads, subordinate staff as well as agents working for the insurance companies
under the study.

Data Collection Methods

The techniques to be used in data collection include the distribution of questionnaires and the
use of records to source secondary data. In the Questionnaire, a list of standard questions with
open-ended questions will be prepared to fit the inquiry of this study. The questionnaire will
be online and if need be just a few delivered physically to the selected departments
accompanied by a letter explaining the purpose of the study. The letter will contain the time
period that the questionnaire should be re-posted hence giving the respondents a clear
timeframe. The method is meant to be free from personal bias. Moreover, follow up
interviews will be conducted in order to close open ended questions and to satisfy the
objectives. The abstraction from records will be used to collect secondary data whose main
sources are journals, library books and newspaper commentaries among others. Abstraction
method of data collection has advantages which include a cheap collection of information
from already available sources. Moreover, the technique is less time consuming. Using these
techniques, special attention will be given to the purpose of the data, how the data will be
collected, how it will be summarized and presented, the accuracy of the data and the
interpretation to be made.

2.0LITERATURE REVIEW
According to Purcell et al (2021)_ has defined mobile applications as end user software
applications that are designed for a mobile device operating system which extends the
devices capabilities by enabling users to perform particular tasks. Additionally, mobile device
applications have also been defined as small bundles of code designed and developed for use
on a portable device. Jia et al (2016) defined a mobile application (m-app) as a computer
program designed to run-on devices such as smartphones and tablet computers.

SUPERVISOR: Ms P.DUBE (NUST)

The researcher will use Brilliana and Prasetio (2019) mobile app rating scale and a
mathematical based evaluation tool by Fadzlah called the Mobile Applications Effectiveness
Measurement Model amongst others.

The purpose of this study is to analyze the effectiveness of Mobile Appsas a marketing tool
in the performance of Zimbabwe’sshort-term insurance sector (performance will hence define
the effectiveness of this marketing tool). Effectiveness generally refers to a subject’
operativeness in terms of producing desired results and can be shown by measuring certain
variables or techniques. According to Basera and Kuranga (2019):

Effectiveness = Performance*Importance*Complexity
For this study, the researcher will define effectiveness in terms of the performance aspect
only since it is the variable that will bring out the research objectives fully. In addition to this,
the researcher will also analyzed write this in full(2012) performance variables and further
modified them to come up with metrics for the study. Thus, the writer assumes that there is
some relationship between the existence of Mobile Apps as a marketing tool and the
performance of the Zimbabwe’s short-term insurance sector. Performance in this study adapts
four dimensions to defining it namely, brand awareness, profitability, goal achievement and
visit intention as borrowed from other studies.Your objectives of the study must be centered
around the dimensions of performance, e.g

 To determine the impact of mobile apps marketing on brand awareness

 To assess the impact of mobile apps marketing on goal achievement
 To assess the impact of mobile apps marketing on profitability
 To assess the impact of mobile apps marketing on visit intention

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SUPERVISOR: Ms P.DUBE (NUST)

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SUPERVISOR: Ms P.DUBE (NUST)