The influence of marketing communications on the youth's adoption of m-payments in KwaZulu-Natal.

Abstract

There has been poor subscription and usage of m-payments in the recent past in South Africa (RSA), especially with the failure of Vodacom M-Pesa and MTN Mobile Money. Presumably, this is attributed to a lack of knowledge on the functionality and benefits of such services and the fact that ‘cash is king’. This study places integrated marketing communications (IMC) at the centre of the adoption of m-payments, as it plays a key role in informing users on the effect of reducing user uncertainties and risks as knowledge structures are built. The study adopted a survey research design to determine the influence of IMC on the adoption and use of mpayments among the youth in KwaZulu-Natal. The questionnaire utilised in the study adopted scale items from constructs embedded within the Unified Technology Acceptance and Use Theory 2 (UTAUT2) and the communication performance construct, to obtain quantitative data. Quota sampling was used to draw a sample of 383 respondents from three institutions of higher learning located in the cities of Durban and Pietermaritzburg. With a 73% response rate, analysis of the gathered data was carried out using descriptive and inferential techniques. Hypotheses were tested using multiple linear regression, Student’s t Test, exploratory factor analysis, confirmatory factor analysis and structural equation modelling, so as to refine and develop a conceptual model. The structural model was found to have a good fit with all but two hypotheses-linked paths being statistically significant and hence supported. IMC measured in the form of communication performance was found to have a strong direct positive impact on the risk factors (functional risk, social influence, price value and facilitating conditions). Communication performance had the greatest positive impact on price value, suggesting that the youth are a rational user market segment with a need for utilitarian motivation within m-payment purchase or use situations, regardless of gender. This study explored the relationship between IMC and innovation adoption, thereby extending the body of knowledge in a multidisciplinary field of marketing and information technology, producing a model that may be used in probing m-payments use behaviour from a marketing perspective. Key words: Integrated marketing communications, mobile payments, structural equation modelling, technology adoption, youth market.