Mobile Commerce, Key Success Factors for WAP Service in

Thailand

Abstract: This research aims to define key success factors for WAP service in

Thailand, in an attempt to promote WAP service and the future 3G with effective

means. Of the key success factors identified, they are of the WAP service delivery,

mobile handset, content and application, payment method. The results of study

also conclude with summary of major impediments for WAP service in Thailand.

A successful mobile application mode is found to be convenient to use, easy to

access and use, price sensitive, ability to track user behavior, and user friendly.

The results of the study would pave the way for mobile operators on a

successfully launched of 3G and the future applications.

Key Words: Wireless Application Protocol, WAP, Key Success Factors, WAP Service

1. Introduction

Wireless Application Protocol (WAP) has been finding it hard to be widely used in Thailand

owning to costs, and technology. WAP is a set of standards designed to extend Internet services to

mobile phones, pagers, and personal digital assistances (PDAs). WAP is bearer-independent and can

be used on any digital mobile networks, packet-switched mobile data networks and 3G. Key factors

for WAP users to use mobile phone is for business in particularly the owner business as stated in

Ittanuvakin (1995) and Hongkananukrao, M., et.al (1999) and the applications for WAP are primarily

direct to information search and for a communication (NECTEC, 2000). In Figure 1, it shows business

opportunities for WAP in association to wireless internet technology. Technology transition from circuit

switch to packet switch or has been call 2.5G which is with a faster speed and will increase the speed

in phase 3 or 3G. Due to a fierce competition in cellular market in Thailand, WAP is today’s primary

path for on-the-go access to Internet content and the future 3G.

1
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The focus of this article is to define key success factors for WAP service in Thailand. The

study also examine the impediments on WAP and the future 3G to be launching in Thailand and to be

used as a guideline for firms’ future strategic direction for other new technology to the customer e.g.

3G, GPRS.

There are limited articles and literatures found on WAP service in Thailand. Most research

documents are of the mobile Internet or m-commerce and wireless Internet. (AU-System Radio AB

(2002), Gillbert, L., et.al.(2001), Lambert, S. (1999), Xiangdong, W. (2001), WAP Phone in the World

(2000)).

2. Proposed Techniques

This paper aims to investigate key success factors for WAP service in Thailand, based on

DeHayes and Haeberle (1990) in identifying key success factors, with a Theory of innovation (Rogers,

1995) from Stage I through to Stage III, during which adopters acquire knowledge about the

innovation, and take decisions to adopt or reject innovations, based on their perceived characteristics

indicators (PCI). This is in line with a study of Huck and McEwen (1991) on the technical knowledge

and customer relations are associated and are to be the core competencies for modern business.

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1. Adoption Continued Adoption

Characteristics of Percieved Charactistics Later Adoption
Population: of Innovation (PCI) Discontinuance
1. Socio-Economic 1. Relative Advantage 2. Rejection Continued Rejection
Characteristics 2. Compatibility
2. Personality 3. Complexity
3. Communication 4. Trialability
behavior 5. Observability

Figure 2. The Innovation Diffusion Model. (Source: Rogers, 1995)

2.1 Theoretical Model

In Figure 2, PCI for the study is to be identified under stage I Knowledge for characteristics of

the mobile users, based on the Innovation Diffusion Model (Rogers, 1995). Regression analysis and

hypothesis testing are being used to measure key success factors or driving factors for WAP service.

The survey research is the systematic collection of data from respondents for the purpose of

understanding and/or predicting some aspect of behavior of the population of interest. For the study,

a self-administered questionnaire is being used as the method for collecting data, with an appropriate

sample size designed by sequential sampling at 95% confidence level. The estimate of sample size is

determined as follows:

n = Z2/4e2

Z0.975 = 1.96, whereas e = 0.05 at 95% level of confidence

n = (1.96)2/ 4(0.05)2

n = 385 samples

The stratified samples here are specified by cluster of organizational sector. The proportion of

this research samples based on the sample size of 385. The sampling proportion in this research will

be the WAP user and is 30% of the total respondents. This study employs stratified sampling, which is

a probability sampling technique. The logic behind stratified sampling is that sampling variables are

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categorized into group of mobile phone subscribers, which currently use the WAP service and

currently do not use the WAP service or Non-WAP users represented as the sample of population of

each group.

2.2 Research Instrument and Measurement

Questionnaires designed is being treated as the instrument in this research and divided into

four parts to measure the perceived characteristics of mobile usage and WAP understanding; to study

the attitudes toward WAP service of existing users and the attitudes toward WAP service of non-WAP

users and the personal characteristics.

Researchers do separate group of respondent under current WAP users and non-WAP users.

The current WAP users group will study the perception of using WAP service, what is the problem that

they found and the factors influencing the use of WAP service and vice versa for the non-WAP users

group. The data was collected between March 1 – May 31, 2002. Sampling units are selected based

on convenience and judgment. Under a regression model, we use

Y = α + βX + ε;

and by the multiple regression, we predict one variable y (dependent variable) from several

explanatory variable x (independent variables). The equation of the multiple regression model takes

the form:

Y = β0 + β1X1 + β2 X 2 + β3 X 3 + …….. + βk X k + ε, whereas

K = Number of independent variable;

Y = Dependent Variable and use y to estimate the equation;
Xi = Independent Variable or Explanatory Variable number I
and uses xi to estimate the equation;
β0 = Constant of multiple regression equation and use b0 to
estimate the equation;
βi = Regression coefficient of independent variable number I
(Xi) and use bi for the coefficient of independent variable xi. βi or bi
and other independent variables are held constant;
ε = Random error

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 In a descriptive analysis, the raw data of the respondents are presented in form of frequency

as well as percentage for nominal data and some of the interval data. The ordinal data is presented in

form of rank order. These data include personnel characteristics (gender, age, education, occupation,

monthly average income), WAP service usage, knowledge behavior of WAP service, behavior of using

mobile phone and Internet.

3. Experimental Results

Of the research instruments and key measurements, hypotheses testing are given results as

follows:

Hypothesis 1: The subscribers know about WAP, is the factors that influence subscriber interest to
use WAP service
H0: explanatory variable x, which is know (the subscriber know about WAP) not effect to
subscriber interest to use WAP service;
H1: explanatory variable x, which is know (the subscriber know about WAP) effect to
subscriber interest to use WAP service
Model Summary of Hypothesis 1

Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .219 .048 .046 .45
a Predictors: (Constant), Know WAP service

Model Sum of Squares df Mean Square F Sig.

1 Regression 3.899 1 3.899 18.948 .000
Residual 77.167 375 .206
Total 81.066 376
a Predictors: (Constant), Know WAP service
b Dependent Variable: Currently use WAP

Unstandardized Standardized t Sig.

Coefficients Coefficients
Model B Std. Error Beta
1 (Constant) 2.131E-16 .076 .000 1.000
Know WAP service .346 .079 .219 4.353 .000
a Dependent Variable: Currently use WAP

From the output table, F-test is statistically significant, which means that the hypothesis is

statistically significant. Reject the null hypothesis at the 5%, R-squared is 0.048 means that

approximately 4% of the variance of interest to uses WAP is very low accounted by the knowledge

about WAP service of subscribers. Knowing about WAP service has a little bit relationship with interest

to use WAP service of subscribers. It will has other factors to join with this factor for effect the

interest to use WAP.

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Hypothesis 2: Price of WAP-enable handset, is the factors that influence subscriber interest to use
WAP service
H0: explanatory variable x, which is WAP-enable handset price not effect to decision making
to use WAP service;
H1: explanatory variable x, which is WAP-enable handset price effect to decision making to
use WAP service
Model Summary of Hypothesis 2
Model R R Square Adjusted R Std. Error of the
Square Estimate
1 .865 .748 .748 .23
a Predictors: (Constant), WAP enabled handset price

Model Sum of Squares df Mean Square F Sig.

1 Regression 60.675 1 60.675 1115.848 .000
Residual 20.391 375 5.438E-02
Total 81.066 376
a Predictors: (Constant), WAP enabled handset price
b Dependent Variable: Currently use WAP

Unstandardized Standardized t Sig.

Coefficients Coefficients
Model B Std. Error Beta
1 (Constant) .827 .020 42.368 .000
WAP enabled handset price -.313 .009 -.865 -33.404 .000
a Dependent Variable: Currently use WAP

From the output table, F-test is statistically significant, which means that the model is

statistically significant. Reject the null hypothesis at the 5%, R-squared is 0.748 means that

approximately 75% of the variance of decision making to use WAP service is accounted by the WAP-

enabled handset price. It means that WAP-enabled handset price has more relation with decision

making to use WAP service of subscribers. If WAP-enabled handset price very expensive then the

percentage of subscribers that will make decision to use WAP service will decrease.

Hypothesis 3: Service charge of WAP service in term of data transfer rate (amount of transaction,
Kbps) is the factor that influence subscriber interest to use WAP service
H0: explanatory variable x, which is preferable of service charge not effect to subscriber
interest to use WAP;
H1: explanatory variable x, which is preferable of service charge effect to subscriber interest to
use WAP service
Model Summary of Hypothesis 3

Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .967 .935 .935 .12
a Predictors: (Constant), Preferable payment charge

Model Sum of Squares df Mean Square F Sig.

1 Regression 75.787 1 75.787 5383.441 .000
Residual 5.279 375 1.408E-02
Total 81.066 376
a Predictors: (Constant), Preferable payment charge
b Dependent Variable: Currently use WAP

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 Unstandardized Standardized t Sig.
Coefficients Coefficients
Model B Std. Error Beta
1 (Constant) 1.653E-02 .007 2.256 .025
Preferable payment .249 .003 .967 73.372 .000
charge
a Dependent Variable: Currently use WAP

From the output table, F-test is statistically significant, which means that the model is

statistically significant. Reject the null hypothesis at the 5%, R-squared is 0.935 means that

approximately 94% of the variance of interest to use WAP service is accounted by the service charge

of WAP service. The preferable of service charge is seem to be related to interest to use WAP service

of subscribers. This would seem to indicate that the preferable payment charge in term of data

transfer rate is in predicting the using WAP service of subscribers. It means that if the mobile operator

changes the payment method from charge per minute to charge per data transfer rate. The

subscriber, that interest to use WAP service will increase.

Hypothesis 4: Low speed of information transferring which WAP user perceive is the factor that
influence subscribers make decision to not use WAP service
H0: explanatory variable x, which is low speed of data transferring not effect to decision
making of subscribers to not use WAP;
H1: explanatory variable x, which is low speed of data transferring effect to
decision making of subscribers to not use WAP service
Model Summary of hypothesis 4

Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .859 .738 .737 .24
a Predictors: (Constant), Low speed of information transferring

Model Sum of Squares df Mean Square F Sig.

Regression 59.805 1 59.805 1054.834 .000
Residual 21.261 375 5.670E-02
Total 81.066 376
a Predictors: (Constant), Low speed of information transferring
b Dependent Variable: Currently use WAP
Unstandardized Standardized t Sig.
Coefficients Coefficients
Model B Std. Error Beta
1 (Constant) 7.857E-02 .014 5.522 .000
Low speed of information transferring .456 .014 .859 32.478 .000
a Dependent Variable: Currently use WAP

From the output table, F-test is statistically significant, which means that the model is

statistically significant. Reject the null hypothesis at the 5%, R-squared is 0.738 means that

approximately 74% of the variance of decision making to not use WAP service is accounted by the low

speed of information transferring. Low speed of data transferring, is related to the not use WAP

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service of subscribers. This would seem to indicate that the low speed of data transfer rate is

important factor in predicting the percentage of not use WAP service of subscribers. It means that the

low speed of data transferring is the main factor that subscriber consider when they make decision to

use WAP service.

Hypothesis 5: WAP service is hardly use, which WAP user perceive is the factor that influence
subscriber make decision to not use WAP service
H0: explanatory variable x, which is WAP service is hardly use not effect to decision making of
subscriber not use WAP;
H1: explanatory variable x, which is WAP service is hardly use effect to decision making of
subscribers not use WAP service
Model Summary of Hypothesis 5

Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .616 .379 .378 .37
a Predictors: (Constant), Hardly use
Model Sum of Squares df Mean Square F Sig.
1 Regression 30.748 1 30.748 229.153 .000
Residual 50.318 375 .134
Total 81.066 376
a Predictors: (Constant), Hardly use
b Dependent Variable: Currently use WAP

Unstandardized Standardized t Sig.

Coefficients Coefficients
Model B Std. Error Beta
1 (Constant) .191 .021 9.324 .000
Hardly use .792 .052 .616 15.138 .000
a Dependent Variable: Currently use WAP

From the output table, F-test is statistically significant, which means that the model is

statistically significant. Reject the null hypothesis at the 5%, R-squared is 0.379 means that

approximately 38% of the variance of decision making to use WAP service is accounted by the hardly

use of WAP service. Hardly use is seems to be related to the decision making to not use WAP service

of subscribers. This would seem to indicate that the hardly use of WAP service is another one factor in

predicting the percentage of not using WAP service of subscribers. It means that if the mobile

operator develops WAP service easy to use, not complex, the percentage subscriber that not using

WAP will decrease. The subscribers will interest to use WAP service.

From the regression analysis, a model is being developed with statistical results for key

success factors on WAP service in Thailand as indicated below.

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 Model Summary of factor influencing the subscribers to use WAP

Model R R Square Adjusted R Std. Error of

Square the Estimate
1 .982 .964 .963 8.89E-02
a Predictors: (Constant), WAP enabled handset price, WAP satisfaction, Preferable payment charge

Model Sum of Squares df Mean Square F Sig.

Regression 78.118 3 26.039 3293.872 .000
Residual 2.949 373 7.905E-03
Total 81.066 376
a Predictors: (Constant), WAP enabled handset price, WAP satisfaction, Preferable payment charge
b Dependent Variable: Currently use WAP
Unstandardized Standardized t Sig.
Coefficients Coefficients
Model B Std. Error Beta
1 (Constant) .109 .017 6.440 .000
WAP satisfaction .110 .008 .424 13.855 .000
Preferable payment charge .121 .008 .468 15.209 .000
WAP enabled handset price 0.043 .007 .118 6.300 .000
a Dependent Variable: Currently use WAP

From the result we would conclude that if WAP users satisfy WAP service, they would induce

friend or family to user WAP, so the number of WAP user will increase. For the preferable service

charge and WAP enabled handset price, if mobile operators change to charge per usage and sale WAP

enabled handset price in lower price, the users will interest to use WAP service.

Model Summary of factor that make subscriber not to use WAP service

Model R R Square Adjusted R Std. Error of

Square the Estimate
1 .806 .649 .639 .28
a Predictors: (Constant), Currently use Internet, why not use Expensive service charge, cost of handset of respondent, why not use Doesn't have
any attractive application, why not use WAP Don't know WAP, why not use Have non-WAP enable mobile handset, why not use Hardly use, why
not use Not essential wanted, Know WAP service, Handset have WAP-enabled

Model Sum of Squares df Mean Square F Sig.

1 Regression 52.613 10 5.261 67.676 .000
Residual 28.454 366 7.774E-02
Total 81.066 376
a Predictors: (Constant), Currently use Internet, why not use Expensive service charge, cost of handset of respondent, why not use Doesn't have
any attractive application, why not use WAP Don't know WAP, why not use Have non-WAP enable mobile handset, why not use Hardly use, why
not use Not essential wanted, Know WAP service, Handset have WAP-enabled
b Dependent Variable: Currently use WAP

Unstandardized Standardized t Sig.

Coefficients Coefficients
Model B Std. Error Beta
1 (Constant) .873 .082 10.625 .000
Don't know WAP .180 .078 .081 2.297 .022
Difficult to use .103 .021 .158 4.874 .000
Not essential .116 .011 .371 10.507 .000
Expensive service charge .046 .007 .215 6.401 .000
Doesn't have any attractive application .022 .007 .100 3.103 .002
Have non-WAP enable mobile handset .024 .006 .144 4.008 .000
Cost of handset .042 .017 .085 2.529 .012
Handset have WAP-enabled .216 .037 .235 5.869 .000
Know WAP service .130 .055 .082 2.349 .019
a Dependent Variable: Currently use WAP

It is concluded that key factors drive towards the use of WAP service are of the factor of they

don’t know how to use WAP or realize the benefits of the usage, WAP is found to be difficult to use,

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not essential, expensive for usage, not attractive application support, cost of handset with a WAP

function.

4. Conclusion

Of the total number of questionnaires 385 were distributed to respondents. There are 377

qualified answered respondents, 118 are WAP users and 259 for non-WAP users. WAP users use WAP

primarily for communication, entertainment and would like have an up-to-date information. Major

impediments are due to a slow speed of data transfer and difficult to use. For a decisive factor to use

WAP service of the respondents, users consider factors related to the capability of WAP in terms of

technology and also consider the elements of WAP such as the WAP application. It could summarize

the results of the study for key success factors and its recommendations for WAP service in Thailand

as follows:

6' Speed of data transfer: Information download time is the key problem for users.

Mobile operators should provide service based on packet-switched technology for increase

the speed of data transfer. This will make users can get fast information and well to

communicate with others.

6' Content and application: The most successful applications must be dynamic, ease of

use. The content should have an up-to-date information.

6' Payment method: For WAP, mobile operators should provide options subject to a value

based charging policy with the current air-time based charging policy. This could minimize

the pressure of intensive usage payment.

6' Price of handset: The current WAP-enabled handset is comparably expensive. The

result found price is sensitive for WAP users, mobile operators should have promotions for

WAP-enabled handset in association to the WAP service.

6' Customer awareness and education: Programs to promote customer awareness and

education are of the needs to encourage customer to realize benefits of WAP and the

future 3G.

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 6' Marketing and Promotion: There is found very competitive in the industry, key factors

for launching a successful WAP service must have had marketing strategy based on

driving factors.

Of the findings, technically, WAP success depends on rapidly expanding the installed base of

WAP terminals. Operators are in a strong position to do this, but they must put pressure on the

handset vendors to provide WAP terminals on time and at the right price. An upgrade strategy is

required with a carefully constructed marketing message, as further upgrades required for 2G+.

In summary, major reasons for mobile subscribers are found on the use WAP service are of

the hardly use, not essential wanted to use WAP service and expensive charge has the negative

coefficient, which indicate that if percentage of all this reason increase, the percentage of non-WAP

user will decrease. Influencing factors and the dispute factors to use WAP are fully illustrated in Table

1. Key factors are of the speed of data transferring, user friendly, worth of WAP service charge,

information integrity and security, security and privacy, technology hype and brand creditability of

mobile operator respectively. The factors, that is found less in the importance is the WAP-enabled

handset availability in function and graphic design.

Table 1. Driving factors for WAP

Influence factors to use WAP Dispute factors to use WAP

1.' WAP satisfaction 1.' WAP enabled handset price

2.' Preferable payment charge 2.' Don't know WAP
3.' Cost of handset 3.' Difficult to use
4.' Handset of user support WAP 4.' Not essential
5.' Knowledge about WAP 5.' Expensive service charge
6.' Doesn’t have attractive application
7.' Handset of use not support WAP

Based on the results of the study, it is recommended that WAP service delivery is needed to

have a reliable network infrastructure, infotainment, messaging, location-based services supported by

WAP applications, with the stated key success factors. A successful mobile application mode is found

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to be convenient to use, service must easy to access and use, pricing has to be easy to understand,

tracking user behavior generates valuable information about the user-friendliness of services.

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