Marketing mix's influence on mobile banking adoption by the rural unbanked consumers in Masvingo Province.

Abstract

Despite the growing concern in mobile banking adoption research in the developing world, studies focusing on mobile banking adoption by the rural unbanked consumers are significantly missing in Zimbabwe. The major purpose of this study was to determine the influence of marketing mix elements on attitude formation toward mobile banking by the rural unbanked consumers in Masvingo province. The current study strived to answer the research questions which included: Do financial product or service attributes have an effect on attitude to adopt mobile banking by the rural unbanked consumers? What is the impact of price satisfaction dimensions on attitude to adopt mobile banking by the rural unbanked consumers? Do distribution elements have an effect on attitude to adopt mobile banking by the rural unbanked? What is the influence of promotional elements on attitude to adopt mobile banking by the rural unbanked consumers? Is there any relationship between attitude and behavioural intention to adopt mobile banking by the rural unbanked consumers? 299 rural unbanked consumers in Masvingo province were interviewed and were intercepted at growth points, shopping centres and in the rural interior. Quantitative and qualitative research methods were employed to gather data through the use of a questionnaire. Quantitative data was tested using descriptive tools, bivariate analysis, exploratory factor analysis, and multiple regression analysis, and hypotheses were tested. Qualitative analysis was done in order to obtain further insights that could not be established from quantitative research. The study ascertained that perceived usefulness, perceived ease of use, accuracy, price-quality ratio, perceived cost, trust, advertising, personal selling and financial education had a positive and statistically significant relationship with attitude formation toward mobile banking. Network coverage and price transparency revealed an inverse and statistically insignificant relationship with attitude. However, no significant relationships were recorded for trialability and service convenience with attitude toward mobile banking. The study established new factors such as price differentials, corporate social responsibility, price reduction, and other factors from the qualitative analysis. It is recommended that marketers, policy makers, and other stakeholders should consider the influence of marketing mix variables when developing strategies to ensure effective market acceptance of mobile banking services and policies that foster financial inclusion in Zimbabwe.