Convenient or Useful? Consumer Adoption of Smartphones for Mobile Commerce

Merchants have developed apps for the smartphone that assist consumers through the buying process, from when they gather information to when they decide to purchase. Sharing information, such as location, shopping preferences and financial data, can enhance consumers’ experience. However, they may be reluctant to disclose these details unless they perceive that the benefits gained are more than the risk of privacy loss. This privacy calculus is added to the unified theory of acceptance and use of technology (UTAUT2) in order to explain consumers’ willingness to exchange the disclosure of personal information for additional value. Sharing information makes mobile commerce more convenient by saving time and effort. Companies are able to send offers that are tailored to a specific customer. Payments are processed faster because the merchant already has the financial data on hand. UTAUT2 is further extended with the Theory of Convenience. Results from a survey of over 300 consumers show that perceived value and perceived convenience are influencing variables and that perceived value mediates the influence of perceived convenience on intention to use.