Micropayments - A Key To A Constrained Market

Abstract: The purpose of this thesis is to describe the suppliers’ and the merchants' adoption-diffusion process for micropayments by determining what issues that face them in order to gain market acceptance, and to develop strategic guidelines appropriate for a rapid development of a sustained position on the international- and domestic market? The relationship between supplier, merchant and end-consumer for micropayments differs from the traditional relationships that are described by Robertson and Gatignon. The communication channel between the merchant and the end-consumer is disrupted by the merchants’ lack of need for the micropayment solution. This means that the supplier should actively pursue strategic relationships and co-ordinated efforts, particularly in the introductory phase. The merchant’s ability and interest to actively market the micropayment solution depends on what kind of product it carries. The research shows that a merchant that offers streaming and information viewing products is far more likely to influence the end-consumer in a positive way. Regarding merchants with other products, the supplier must communicate the relative advantages of micropayments. For all merchant industries it is recomende to find opinion leaders. The trust associated with the opinion leader is communicated to end-consumers and other merchants.