Determinants of Micro Business Owners’ Behaviour on the Use of Mobile Money in Tanzania Evidence from Kinondoni Municipal Council.

Abstract

The study assessed determinants of Micro Business owners‟ Bahaviour on the Use of Mobile Money in Tanzania. The study was guided by the following objectives: - to assess the usage pattern of Mobile Money, to assess behavioral factors and to assess the level of acceptability of Mobile Money Services by Micro Business in Tanzania. The study utilized a mixed-methods approach, employing both random and purposive sampling methods to select a sample size of 222 respondents. Qualitative data was analyzed using content analysis, supported by the use of SPSS software for quantitative data analysis. The findings of the study indicated that mobile money services not only reduce financial transaction costs for both service providers and customers but also create opportunities for new entrants in the financial industry and foster the growth of new service distribution channels. Additionally, the study revealed that businesses should prioritize customer service as an integral part of their organizational culture to enhance customer satisfaction and contribute to long-term profitability and sustainability. Businesses need to be well-informed about their products, branding, pricing, and manufacturing capabilities. Furthermore, the study found that a brand's image is influenced by factors such as the manufacturer's reputation, country of origin, packaging, marketing content, and media channels utilized. A brand identity is composed of a name, logo, and product characteristics. In conclusion, the study highlights the significant challenges posed by high costs to businesses, which negatively impact their profitability. It recommends that service providers, such as cellular or telecommunication companies, must address this issue to avoid unnecessary market failures. Failure to do so may allow competitors to identify these weaknesses and capitalize on them, reaping the benefits in the process. High costs remain a pressing concern for many enterprises, leading to considerable financial strain.