Factors influencing the adoption of mobile data at the bottom of the pyramid in South Africa

Abstract

The mobile telecommunications industry has revolutionised the global economy, enabling advancements, innovation and increasing information flow across almost all sectors of the economy. Mobile telecommunication has bridged the digital divide in many rural and informal communities, allowing people in this segment to access products, information, services and social interactions. The Bottom of the Pyramid (BoP) relates to the socio-economic group of people living on less than $2 per day. These consumers are characterised by distinct consumption patterns, purchasing patterns and price sensitive consumption. Mobile telecommunications made up of voice and data services form part of the consumption of BoP consumers. The objective of the research was to investigate the factors that influence the adoption of mobile data services at the BoP in South Africa. The study was approached from the BoP consumers perspective and followed a quantitative method, with a sample being drawn from the informal settlement of Diepsloot. The target sample was individual mobile phone users. A conceptual framework was developed from the constructs identified in the literature review, which consisted of Perceived Usefulness, Perceived Ease of Use, Subjective Norm, Availability, Affordability, Awareness and Acceptability. The framework was then tested in the informal township of Diepsloot. The study revealed that not all factors explored are significant predictors or influencers of mobile data services adoption at the BoP in South Africa. The study highlighted the factors of Perceived Ease of Use, Subjective Norm and Availability as being those that do not influence the adoption of mobile data services at the BoP in South Africa, while Perceived usefulness, Awareness, Affordability and Acceptability, were highlighted as influencers of mobile data services adoption at the BoP in South Africa.