1.

0 INTRODUCTION

1.1 Background of the study

Mobile commerce defined as " the selling and buying of product and services by
using wireless devices such as cell phone computer and personal digital assistants."
for instance of this would include using a cell phone to buy a television, a football
ticket or even a new ringtone. One point of clarification to tone, however, is that
m-commerce is conducted completely electronically, this not include situations where
a person uses a mobile device to call a store and buy something. (Rutherford
B.(2009).

Vodacom M-Pesa was introduce in Tanzania in April 2008 one year after being
introduced in Kenya. The services provided by Vodacom m-pesa are such payment of
electricity bills, water bills, and cable television services. Other m-commerce services
on Tanzania users including buying tickets (movies, transport0, buying groceries and
paying restaurant bills. There are many companies which are providing the same kind
of services as Vodacom . Such companies are MCL Tanzania Ltd which have it is a
product called Tigo-pesa, Airtel with Airtel money, Zantel with Ezy-pesa, NMB Bank
and Akiba Commercial Bank.(Gunnar Cannar& Emil Sjoblom(March2009).

Technology adoption is the main challenge as prior to the launch of M-PESA many
Tanzania mobile phone users were a were with the basic operations of a mobile such
as texting and making phone calls. However, only 20% of the population owned a
mobile phone and only another 16% has access to someone else s phone. Furthermore,
not many users, including those that owned cell phones, were aware with USSD
which is the technology protocol that Vodacom used to introduced M-PESA.
(International Finance Corporation(june2010).

According to the (Gunnar Camner&Emil Sjoblom(March 2009). Many people in

Tanzania like to use the traditional method of transferring value in kind. Common
product being sent in Tanzania are sugar, milk, rice, cooking oil, clothes, medicines,
building materials, and electronics. The reasons for remitting in kind is regional
differences in prices and availability, the sender knows that the goods are used for
specific purpose, also, it involves less risk availability sending money in cash. Other
methods which were main challenge for the technology adoption of m-pesa were such

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as sending money through buses as there are several bus companies that offer the
service of money transfers, some in more organized ways with a fixed fee where the
sender gets a receipt and a number that the recipient has to use to collect the money at
another bus office.

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1.2 statement of the problem

The number of mobile subscribers in Tanzania is very higher compared to the number
of account holders as the only population of 4,800,000 people has bank accounts
while 12000,000 people are active mobile subscribers. Furthermore more than half of
the total population in Tanzania has never heard of a debit card, an ATM machine or a
current account. Only 9% of the population has access to formal financial services and
54% don't use any form of financial services. Initially, Vodacom did not invest a lot
of resources in consumer education and this may be one of the key reasons that the
service was slow to start. Tigo, as well as Airtel, have also launched similar money
transfer services and their effort to educate the general public have increased the
overall level of financial understanding in Tanzania. (International Finance
Corporation 2010)

Pangani is one of the eight districts of Tanga Region in Tanzania. It is bordered to the
North by the Muheza District, to the East by the Indian Ocean to the south by the
Pwani Region and to the West by the Handeni District. According to the 2002
Tanzania National Census, the population of the Pangani District was 44,107 people.
This makes it difficult for operators to effectively roll out an extensive spread of
agents which are about 125 agents. The coverage area is large, requiring more training
and management resources, and the revenue per agent is lower since they are serving
a smaller base of local customers. Furthermore, with a dispersed population,
consumer education tactics such as road shows and product demos can be costly and
less effective. In 2014 there were only 20 agents while up to March 2018 there are
about 140 agents.

(Vodacom Pangani office(2018).

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1.3 Objectives

1.3.1 General objective

The general objective of this research was to find out factors affecting the provision
and usability of Mobile Commerce in Pangani district. The finding identified and
explained in chapter four will help to make mobile commerce services to be beneficial
to the residents in Pangani district and all resident of kinondoni and Tanzania as a
whole.

1.3.2 Specific objectives

I. To explore the availability of mobile commerce service in Pangani district.

II. To identify potential challenges in the provision and utilization of mobile

technology in M-Commerce Pangani district.

III. To explore factors affecting the provision and utilization of M-Commerce in

Pangani district

IV. To identify strategies used by organizations provides M-Commerce services in

solving problems.

1.4 Research Questions

I. What were the challenges facing the user of M-Commerce in Pangani district?

II. What were the factors affecting the use of M-Commerce services?

III. What are the possible strategies which can be used to solve these problems?

IV. What kind of support offered by organizations which provide M-Commerce

services to their agencies and customer.

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1.5 Scope of the study

The study covered the area of Pangani district as it includes users of m-pesa, agents
and staff of Vodacom. User and agent from 13 division of Pangani district which are
Bushiri, Bweni, Kimanga, Kipubwi, Madanga, Masika, Mikuni, Mkalamo, Mkwaja,
Mwera, Pangani A, Pangani B, Tungamaa, Ubanga.

1.6 Location, Population, and Economy

Pangani district is one of the eight districts in Tanga Region, northeastern Tanzania
and lies in the central eastern part of the Region and is bordered by Muheza and
Pangani districts to the west and south, Mkinga to the north, and the Indian Ocean to
the east. It is situated between 5o and 5o16’latitude south and 38o53’ and 39o10'
longitudes East. Pangani has had a pivotal role in the history and economy of the
Tanga region and the country as a whole. It is administered by the Tanga City Council,
has land and oceanic are of 1,756 square kilometers and the projected by population
in 2020 is approximated to be 326070 people. And the population growth is 1.88%
per year. It also a District with its administrative structure.

Agriculture, especially sisal estates, occupies the largest proportion of the total district
area. In the urban part of Pangani district, residential areas are the most important land
use followed by agriculture; industrial activity accounts for only a tenth of the total
urban area of the city. There is a considerable amount of open land outside urban
areas.

Business occupation in Pangani city includes 3.5% as small business managers, 15.5%
in shop sales and services, and 16.7% as street vendors. The agricultural and other
natural resources activities occupy 23.4% of the labor force as former, 1% as
livestock keeper, and 40% are dealing with fishing activities.

Source:(Pangani district Commissioner office).

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1.7 Significant of the study

I. The findings explained in chapter four helped both the companies and
organizations which are providing M-Commerce as well as users to generate new
knowledge in the field of M-Commerce and it is an application.

II. Evidence of the problems faced by providers and users of M-Commerce were
provided.

III. Recommendation and appropriate ways of solving the problems were identified.

IV. The study provided an opportunity for the researcher of the attainment of the
Bachelor of business administration offered by National Institute of Transport.

1.8 Organizational of The Research Report

The study was organized in five chapters: whereby each chapter states its contents.
However; all contents found in each chapter has a significant relationship to each
other. Chapter one about the background to the study, statement of the problem,
research objectives, research questions, scope of the study, location, population and
economy, organization of the study and finally the definition of important key terms.
Chapter two is about literature review, which comprises of international studies,
regions, and theory of the study and variable relationships.

Chapter three was concerned with research methodology showing a description of the
study area, research design, sampling, data collection, data analysis, and interpretation
techniques and limitation of the study. Chapter four was about Finding in which data
were presented as well as analyzed and the discussion about findings was done.
Finally, chapter five provide a conclusion as well as the recommendation.

1.9 Definition of Key term

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i. Mobile Commerce is the use of a terminal, and public mobile network to access
information and conduct transactions that result in the transfer of the value in
exchange for information, services or goods. (Rutherford B. (2009).

ii. Challenge is something that needs a lot of skills, energy, and determination to
deal with or achieve. (Macmillian Dictionary)

iii. M-pesa is an electronic payment and store value system that is accessible through
mobile phones. ( Ignacio Mas and Dn Radcliffe, (March 2010).

iv. Providers this includes a Vodacom M-PESA Agent who is a retailer who has
been appointed by Vodacom as an authorized provider of M-PESA services.

v. The user includes a customer of m-pesa who are registered and non-registered
customers.

2.0 LITERATURE REVIEW

2.1 International studies

Waqar and Yaqoob Hamshmi (2009) analyzed several limitations which were
facing Mobile commerce in Sweden. The limitation include the following; short
access life due to low power voltage and the small battery size, limited process power
due to low power computer processing chips, higher risk of storage and transaction
errors, restricted view of large or multiple page images due to very small screen
display, less "surfability" ie limited navigation facilities because of restricted cursor
and button z-control. Other limitations are such as restricted graphics and colors, as
sometimes any color and image could not be supported, no usage of Transmitted
Control Protocol (TCP) that prevent information exchange with the majority of
internet providers.

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 Al-sadi(2009) explore the applications of the mobile technology in e-learning
so that the existing learning management system (LMS) integrate learning and
collaborative interaction with m-learning (e-learning using mobile devices and
wireless media). The various technical aspects of them-learning have been stated in
the paper along with the advantages and disadvantages of using mobility in the
learning process. The relevance and feasibility of using m-learning in terms of
technology and usability, limitations of mobile technology and usability, limitation of
mobile technology and usability, limitations of mobile technology while using
m-learning tools have also been widely explored in this study. The authors lay stress
on the use of mobile technology with m-learning and learning and learning
management systems so as to spread the significance of education and m-learning
anytime anywhere.

Brain Rutherfor(March 2008) analyzed several challenges which were facing

M-Commerce as follows;

When mobile users were on the move and the network is likely to fail, they might lose
service and this could interrupt them there were doing any commercial transactions.
Therefore there was a possibility of losing service.

The nature of wireless devices opens up new vulnerabilities in terms of security.

Not only this meant the issues in terms of mobile connection being breached, but also
the increased likelihood of losing or having the mobile device stolen and data
compromised. This represented issue in convincing m-commerce users that personal
data was secure during and after a transaction.

The increased availability of contextual and its use in m-commerce had implications
for privacy. While users might benefit from m-commerce applications utilizing new
contextual information, there was also an increased fear of this information being
used maliciously.

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 Network Variability; There existed a variety of mobile networks types from
GSM to CDMA to 3G network types, which for the most part were not interoperable.
This was why many users were not able to use their mobile device in another
jurisdiction based on a competing network type.

Also, this author had indicated that cultural perception of mobile phones was one of
the barriers to M-Commerce. In countries such as Japan and Finland, the cell phone
was seen more as a symbol of social status, especially to the people bellow-32 age
demographic, than in North America. This resulted in phone turnover rates that
average 1-2 years in these countries versus the 3-5 years experienced in the United
State of America.

Economy development was one of the factors which could be used to distinguish
developed countries. Developed countries such as, the United State Of America and
China. People were using other devices such as tablets despite mobile phone to make
transactions. But in developing countries such as Tanzania, Uganda and Kenya
people in this countries were still using the only cell phone in making of their daily
transactions. Also, mobile phones took place first in Developed countries since the
1990s and latter took place in developing in the early 2000s.

Also, the cost of doing business through mobile devices have dropped for 80% in the
United State Of America but in Tanzania, it has not yet dropped down the cost is still
higher.

According to the Bled Electronic Commerce Conference conducted in Bled

Slovenia, June,2002 which include Panel members such as Nilmini Wickramasinghe,
Chester Carlson, J. Felix Hampe, Richard A. Scudder, and Doug Vogel Examine
various major issues, challenges and developments concerning Mobile Commerce in
Asia, Europe and the United State Of America.

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The panel analyses various challenges which hinder the development of M-commerce
in the Asia Pacific such as lack of Infrastructures, delay in lunch of higher Bandwidth
service, Luke-warm reception of new multi-function handset and general "wait and
see" attitude. A global economy that has hit Asia harder and is tending to last longer
than in some other part of the word.

Enthusiasm for m-commerce remains reasonably high although expectation has been
lowered as pragmatic reality takes hold.The rate of cell phone introduction coupled
with the poor existing wire-based in fracture provides an opportunity. However, there
are many problems to be overcome, not the least of which are ineffective payment
systems in conjunction with a banking industry that is struggling under mountains of
bad debt and focusing attention to meet WTO entrance commitment.

Korea was an interesting example of a country with both heavy uses of phones and
heavy use of e-commerce that has yet to come together to any great extent in
m-commerce. A phone is used for audio and computers are used for internet access
and two have yet to merge to any great extent eg.., in wireless PDAs. One minor
reason stems from a unique phone system but suspicions are that the real issue was
more culturally based in not yet recognizing the phone as a true data device

In the United State of America the greater the number of choices had limited the
growth of e-commerce in the U.S, but the shift from voice communication to data
communication ( and the shift from simple phone service to mobile commerce) was
slowly taking place. A large number of organizations made 802.11b technologies
available inside their companies. 802.11a (and soon 802.11b) technologies which
offered significantly higher band with were also becoming available. One interesting
challenge to the large carriers was the emergence of hot-spots in allowed anyone with
a Wi-Fi card to log in for a free and begin surfing the net.

Europe had seen a strong movement towards M-Commerce over the last Years. Due
to the enormous market growth of standard GSM telephony, for all future service

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extensions (HSCSD, GPRS, EDGE or UMTS) extremely optimistic forecast had been
given. This, in turn, induced such extreme business expectations that business cases
were calculated well in advance of their realization. The auction in some European
countries for UMTS frequency band packages thus lead to the incredibly high price
levels. In conjunction with the market fall in International stock markets, the
telecommunications industry has, since mid-2001, faced severe problems, being part
of a serious recession in some European countries which is still lasting (e.g
Germany ).

Furthermore, the acceptance of new basic service such as GPRS has up till now been
very slow and all the test beds for UMTS pilot failed to show the convincing result.
With GPRS we saw not only the horrendous pricing as a major cause but also the lack
of really convincing value-added service on offer.

Those advanced services mentioned most often most in the literature e.g. m-payment
or ticketing and order, have not introduced widely.

Fong and Yan(2008) explore the mobile payment system design, various
M-commerce application scenarios and the benefits of using SMS in mobile payment.
The research also highlighted how M-commerce is different from e-Commerce and
the various reasons for low level of trust on Mobile commerce such as stability of the
mobile network, standardization and user experience and thus providing insight for
how M-commerce applications can be technically designed for various scenarios.

Zaied(2012) the conceptual framework for e-commerce adoption barriers in

small medium enterprises(SMEs) involving various types of barriers such as social
and cultural, technical, economic, political, organizational and legal and regulatory
barriers has been developed for investigating and revealing the significant factors
associated with the ICT and related e-commerce adoption. The factors responsible for

low usage of e-commerce in SMEs in Egypt have been well addressed in this work.

Huo et al. (2011) explore the social network model related to the farmer's adoption of
M-commerce service. The various models like Technology acceptance model, social
network model and constructed social network model have been integrated and the
impact of the social networks on individual adoption has been addressed in this study

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so as to highlight the influencing factors adoption of M-commerce services by
farmers.

Gronlund et al(2008) the study compares and analyzes three cases of

applications and users of mobile technology for everyday learning in developing
countries. The field studies showcase preliminary result and tests have been analyzed
in terms of the technical, professional, social, cultural and organizational challenges
involved in development. The cases and findings from investigations, field studies,
laboratory and field test and experience from implementation have been addressed.

Meng et al. (2008) A conceptual model for evaluating the role of trust and its
antecedents of the customer in the adoption of Mobile commerce has been proposed
in this research. The classification of various types of trust: Mobile vendor trust,
Mobile technology trust: Mobile vendor trust, Mobile technology trust,
Instrumentation based trust have been considered as components of consumer trust in
mobile commerce in the study. The survey conducted for the collection of data has
been further validated with the empirical testing hypothesis and research model

2.2 Regional studies

Lennart Bangens & Bjorn Soderberg (April 2011) analyzed some of the
challenges which were facing Small and Medium Entrepreneurs in conducting their
business by using Mobile Commerce in Tanzania

Due to the restriction imposed by Bank of Tanzania, which the value of the
transaction was not allowed to be more than Tshs 500,000/- for a single transaction
these lead to some barriers to the Medium Entrepreneurs when they wanted to make
transactions which are above 500,000/-

Business located in a cluster tended to learn and trust MMT faster than those
operating in a dispersed manner (I.e with less link to a business in the surrounding
area). This was also affected by the locality of agents such as critical for Mobile

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Money Transfer in Tanzania, which are agents float and cash levels, knowledge and
capacity, as well as security arrangements.

The agent's float was the key instrument for instant deposits of money. Customer
deposits were instantly active in their M-PESA accounts because of the design of the
MMT system. Hence, customers rely on agents earlier deposits at NBC (National
Bank of Commerce is holding the M-PESA float on Vodacom's behalf) to be able to
send money immediately after a deposit is done at the MMT agent's office. The
system works as long as the agents-normally two or three times a week-top up their
floats by depositing cash into their NBC account. To balance the float according to
customer demand is a non-trivial task, requiring substantial cash-flow management by
the agent. When the float was zero the agent cannot accept more deposits and there
was sometimes a delay in the system as an NBC deposit may not instantly be credited
the agent's float.

Many agents run parallel business and see M-PESA as a supplementary side business.
The Agents normally had little prior knowledge of financial transactions and therefore
had to learn-by-doing from scratch. The handling and stocking up of large amounts of
cash were

Potential bottlenecks for many agents that found it difficult to plan the demand for
customer withdrawals and deposits. Mostly the M-PESA system was straightforward
with few technical glitches and problems. Sometimes customers sent to the wrong
number and wanted to block a transfer which often requires the intervention by
Vodacom as few agents knew how to sort it out. As M-PESA in Tanzania is
USSD-based (Unstructured Supplementary Service Data) there was no link to the
handset's address book, which means that the phone number must be entered
manually. This increased the risk of entering the wrong number.

The study showed that the majority of the agent visited operated M-PESA as a side
business and normally had very little or no modification for hosting an M-PESA
office. Hence, there were few security arrangements for minimizing theft and robbery.
The exception was the Vodacom's own M-PESA offices that were bank-like with
safety glass and bars to deter break-ins

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Another challenge for Vodacom presently was to make M-PESA accessible for every
by decreasing the number of user users per agent. In July 2016, M-PESA in Tanzania
had 86943 and more than ten million users, which mean there are on average about
10000 users per agent. In Kenya, the average is about 6000 per agent.

Vodacom's model to deliver MMT services draws heavily on the capacity of the agent
network. The model comprises three layer; agent, super-agents, and aggregator. The
super-agent is banks and should not be confused with aggregator s that are not banks.
This model was first introduced in Kenya and had been launched in Tanzania as well
to solve the float and cash levels amongst smaller agents. In this structure, the small
agent operated in a tiered system supported by an aggregator that supplies cash on a
commission basis as 30% of the aggregate's commission is drawn by the aggregator.

2.3 Research gap

As most of the researchers as described the difficulties which customers aware of

facing in using mobile commerce service, as well as the problems which agents of
Mobile Money Transfer are facing in providing service to their customers. The
researchers had not identified some of the problems which the Mobile Network
Operators were facing as well as the impacts of Mobile Commerce to other sectors of
the economy such as Bank.

Also there some of the problems which are facing users of M-commerce who are
living in rural areas such as inadequate skills in using M-Pesa service.

Also, the Research in international and regional level had not indicated culture if was
one of the barriers to the users as well as providers of mobile commerce services.

2.4 Theory of the study

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The diffusion theory, also known as the diffusion of the innovation theory, is a theory
concerning the spread of innovation, ideas, and technology through culture or cultures.
The theory has been extensively studied by sociologists, psychologists, and
anthropologists. Diffusion theory states that there are many qualities in different
people that cause them to accept or not to accept innovation. There are also many
qualities of innovations that can cause to readily accept them or to resist them.

According to difficult theory, there are five stages to the process of adopting
innovation but has no information about it. Next is persuasion, which becomes aware
of innovation but has no information about it. Next is persuasion, in which the
individual become actively interested in seeking knowledge about the innovation. In
the third stage, decision, the individual weight the advantage and disadvantages of the
innovation and decides whether or not to adopt it. (Daniel W.Surry,197)

A researcher is trying to link this theory with the topic as m-pesa is a product which
has been introduced not more than three years ago, and the main problem was the
adoption of this kind of technology by people of Tanzania as most of the people up to
the prior introduction of m-pesa in 2009 were using other traditional methods such as
transferring value-in-kind transfer of money through buses.

2.5 Variable Relationship

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 ADEQUATE NUMBER

OF

AGENCIES

TRANSACTION
PROVISION AND KNOWLEDGE
FEES UTILIZATION OF OF FINANCIAL
MOBILE
COMMERCE IN TRANSACTION
TANZANIA

GOVERNMENT

POLICIES

Figure 01: Relationship between Variable

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Adequate number of Agencies:For the unstable province back to provided quite, the
companies which are providing flowing commerce services were on request on call to
recruit enough agencies. To ask pardon unqualified till the end of time power had the
capacity and be competent to rebuttal a handful users as much as possible.
Shopkeeper fees: To feel sorry unconditioned the allow for fees are scream upper in
compliance to put along close to perpetually time person importance mobile
commerce to afford to connected in the air into Merit the service.

Transactions fees: To make sure the transaction fees are not higher so to enable each
person use mobile commerce to afford to use the service.

Government policies: The application in Tanzania was needed to familiar policies

which could stir contrasting relatives to invest in providing mobile commerce service
in Tanzania. Barring, the Furnishing requirement routine policies which bottom
bulwark a consumer of mobile commerce service against possibilities of fraud and
theft.

Knowledge of financial transactions:Separate agents in affair execute measure

against undertaking and aphorism mobile commerce as a supplementary side business.
The substitute had a concentrated precedent experience far fiscal traffic and therefore
undertake to learn by doing things non-native scratch.

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3.0 RESEARCH METHODOLOGY

3.1 Description of the study

Tanga city is one of the eight districts in Tanga Region, northeastern Tanzania and
lies in the central eastern part of the Region and bordered by Muheza and Pangani
district to the west and south, Mkinga to the north, and the Indian Ocean to the east.

The main reasons for a researcher to choose Tanga as case study area is that Tanga is
one of the major city in Tanzania in which its economy growing fast as well as there
is major competition between major mobile network operators which are providing
mobile commerce services. This includes Vodacom, Tigo, Zantel, and Airtel.

3.2 Research Design

The study will be conducted through the use of case study design as it would focus on
a single area(area of study) and types of data collection to users will be questionnaires
and interviews. Moreover, a case study design gave a room for a researcher to analyze
the particular unit in detail with its findings was unique from the rest.

The rationale of this case study design compared to the others is that it formulate a
problem for more precise investigation from an operational point of view. The major
emphasis of this study was on the discovery of ideas and insight.

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3.3 Sampling

3.3.1 sampling Frame

The target population will be the agents and users of Vodacom m-pesa in Tanga city.
The researcher will use the population of 175people as divided the population into
clusters, in which there were 160 uses of m-pesa and 5 staffs of Vodacom. The main
purpose of dividing the target population into cluster was reduced costs as well as to
get precise information.

3.3.2 Sampling technique

Sampling techniques will be probability sampling. Probability sampling is a technique

whereby each member of society has an equal chance of being selected. In this
technique, a researcher will collect data from the population of 170 people in which
data will be collected from users were 160 as well as data to be collected from an
agent will be 10.

3.3.3 Sampling Unit

The sampling unit for this study included staff of Vodacom, agents of M-Pesa in
Tanga city and the user of M-Pesa in Tanga city will be included.

3.3.4 Sample Size

The sample size will be obtained from the total population which will be the total
number of people in the study area. Due to the reasons that it is impossible to get the
total number of people who are using Vodacom in certain areas. A researcher will
take a sample size of 178.

3.3. Sample size determination

The formula for determining sample size

N= (z2xp x q x N)

e2(N-1)+(z2 xp xq)

where

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n= sample size(being determined)

N=Population size known

P= sample proportion(assumed to be 0.02)

q=1-p

e=0.02(since the acceptable error should be

Z=standard deviation at a given CI(Z=1.96 at 95%CI)

3.4 Types of Data

Both primary and secondary data will be collected

3.4.1 Primary data

Data will be collected through conducting interviews with five staff of Vodacom and
the manager of Vodacom in Tanga. As well as a researcher will interview the 10
agents of Vodacom m-pesa in Tanga city. A researcher will have to distribute
questionnaires to the staff of Vodacom user and agent. A researcher will collect data
from a population of 178 people.

3.3.2 Secondary Data

In this Data will be collected from accessible documents which include already
published report books and newspapers.

3.5 source of Data

Data will be collected from primary source as well as a secondary source. Primary
Data sources included observation Method as well as Survey Method.

In the observation method, the Researcher will try to observe how the staff of
Vodacom M-Pesa providing services to their customers.

But in the survey method, a researcher will collect Data by asking questions to users
of Vodacom M-Pesa Through this question will be provided.

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From secondary data, a researcher will obtain Data from internal sources as well as
external sources. From Internal sources, data will obtained from accounting resources.
But from external sources included data from government publications, reports from
Tanzania Communication Regulatory Authority, Ministry of Communication and
Transportation.

3.6 Procedure of Data collection

Procedures for data collection of Data were as follows:

A Researcher will prepare a questionnaire in both English and Kiswahili languages,

the researcher will seek a letter of approval from the university which will allow him
to collect data. Then he will have to go to the office of Vodacom in Tanga city for the
aim of introducing himself and being given authority to collect Data from staff, agent
and its users.

After being given authority, a researcher will start to interview staff of Vodacom who
are dealing with m-pesa as well as the manager of Vodacom in Tanga. Also, a
researcher will interview 10 agents of Vodacom m-pesa. Lastly, a researcher will have
to distribute a questionnaire to them.

3.7 Data Collection Techniques

Techniques of Data collection include the followings:

3.7.1 Interviews

In conducting an interview, the researcher will conduct face to face interview with
Vodacom Tanga Branch staffs, agent and users using both structured and unstructured
questions. Questionnaire relating to the study will be prepared and distributed to the
selected sample of 188. A researcher will have to collect data from 178.

3.8 Data analysis and interpretation Techniques

Data collected will be processed by summarizing the bulk data and analyzing them
using both quantitative and qualitative methods. The analysis involved calculations,

21
percentages, and trend. Presentation of results will be in the form of the table and
words. Finally, the conclusion and recommendation based on the finding of the
research.

3.9 Ethical Issue and Consideration

The study adhered to all ethical issues. Ethical issues are crucial in research since they
guide the researcher on what is permissible and what is not and thus were mandatory
for the researcher to be observed. Ethical issues will be to observed may included
informed consent, Confidentiality of information, privacy and anonymity of
respondents.

3.9.1 Validity and Reliability of Data Collection Instrument

To ensure validity and reliability a questionnaire will be viewed by a supervisor at the

National Institute of transport. A researcher will have to come up with input to
modify some of the questions for the study to remain focused on it is objectives.

In addition, a pilot study will be conducted. Interview and self-administered

questionnaire were administrated to 178 respondents. Lessons from the pilot study
will help the research to well design data collection tool and choose the best approach
and collection method.

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A: Questionnaire for users of Vodacom M-Pesa

Dear respondents

My name is Ally Jumanne a student at National Institute of Transport. I am carrying

out a study of the challenges which are facing providers and users of mobile
commerce in Tanga city. You have been identified to provide your view because of
your involvement in mobile commerce. Your responses are therefore very important
for the survey. Please be assured that the information you provide will be treated as
confidential. Your participation is completely voluntary, you may skip any questions
that you want, and you may stop at any point. There is no right or wrong answer to
any questions.

Do you wish to participate?

Yes No

General information

Occupation ………………………………………………………….

Age ………

Gender ……..

23
Research Information

(Mark with an “X” in the appropriate margin)

1. Do you use service like M-Pesa, Tigo Pesa or Airtel?

Yes( ) No( )

2. Which types of mobile commerce are you using currently?

M-Pesa ( )

Tigo pesa ( )

Airtel money ( )

3. For how long you have been using mobile commerce?

Less than 6 mouth ( )

6-12 mouth ( )

1-3 years ( )

Over 3 years ( )

4. Do you face a challenge in using mobile commerce services?

Yes( ) NO( )

5. If yes, what are the challenges? (Probe: cost, time, lack of information, availability
of money with agencies not reliable: poor network connectivity)

How far is to the nearest Mobile commerce agency?

Very close (100m) ( )

Not very far (101-500) ( )

24
Far (500-1000m)

Very far (above 1km)

6. Is there a time you received money from a relative/friend and the Agency could not
provide you with the service?

A. Yes ()

B. No ()

7. If yes(Q6) what were the reasons?

8. How do you judge the capacity ( in terms of capital and services) of the nearest
Agency?………………….

9. What should be done to improve mobile commerce? (mention)………………

10. What is your other suggestion on solving these challenges

….………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………

25
B.Questionnaire for Agencies of Vodacom M-Pesa

Dear respondents

My name is Ally Jumanne a student at National Institute of Transport. I am carrying

out a study of the challenges which are facing providers and users of mobile
commerce in Tanga city. You have been identified to provide your view because of
your involvement in mobile commerce. Your responses are therefore very important
for the survey. Please be assured that the information you provide will be treated as
confidential. Your participation is completely voluntary, you may skip any questions
that you want, and you may stop at any point. There is no right or wrong answer to
any questions.

Do you wish to participate?

Yes No

General information

Occupation ………………………………………………………….

Age ………

Gender ……..

Street……………

Please put a tick in the appropriate box.

1. Your providing mobile money transfer services through which mobile networks?

Vodacom( ) Tigo( ) Airtel( ) Zantel( ); Other( )

2. For how long you have been providing mobile money transfer services?

….……………………………………………………………………………

3. How many customers do you getting per day…………………………….

26
4. What are other income-generating activities do you do?

5. Do you use customer money for your personal activities before the customer
collects her/his money? Yes( ) No( )

6. If YES, why?……………………………………………………………………….

7. Have you ever experience a situation when you could not provide the customer
with his/her money?Yes( ) No( )

8. If Yes to Q7.Explain why?………………………………………………………….

9. What is the challenge facing in providing services to your customers

A. ………………………………………………………………………………………

B. ..…………………………………………………………………………………….

C. ….…………………………………………………………………………………..

D. ….………………………………………………………………………………….

E. ….………………………………………………………………………………….

10. Are you getting enough cooperation from the mobile companies you are working
for?

….………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………

11. What are the challenges facing customers?

A. ……………………………………………………………………………………..

B. ….…………………………………………………………………………………

C. ….……………………………………………………………………………………

D. ….……………………………………………………………………………………

E. ….…………………………………………………………………………………..

27
12. What should be done to minimize the problems which are facing your customer?

A. ….………………………………………………………………………………

B. ..………………………………………………………………………………..

C. ….………………………………………………………………………………

D. ….………………………………………………………………………………

E. ….………………………………………………………………………………

C. Questionnaire for the staff of Vodacom M-Pesa

Dear respondents

My name is Ally Jumanne a student at National Institute of Transport. I am carrying

out a study of the challenges which are facing providers and users of mobile

28
commerce in Tanga city. You have been identified to provide your view because of
your involvement in mobile commerce. Your responses are therefore very important
for the survey. Please be assured that the information you provide will be treated as
confidential. Your participation is completely voluntary, you may skip any questions
that you want, and you may stop at any point. There is no right or wrong answer to
any questions.

Do you wish to participate?

Yes No

General information

Occupation ………………………………………………………….

Age ………

Gender ……..

1. For how long your mobile company have been providing mobile money transfer
service in Moshi Municipality

….……………………………………………………………………………………….

2. How many customers you are serving per day…………………………………..

3. What are the challenges you are facing in providing services to your customers in
Tang city?

A. ……………………………………………………………………………………….

B. ….………………………………………………………………………………….

C. ….………………………………………………………………………………….

D. ….………………………………………………………………………………….

E. ….………………………………………………………………………………….

29
4. Are you getting enough cooperation from your agencies?

5. What are the challenges which are facing your customer?

A. …………………………………………………………………………………

B. ..……………………………………………………………………………….

C. ….…………………………………………………………………………….

D. ….……………………………………………………………………………

E. ….…………………………………………………………………………….

6. What your company has done now in order to minimize the problems which are
facing your customer?

A. ………………………………………………………………………………….

B. ….………………………………………………………………………………

C. ….………………………………………………………………………………

D. ….………………………………………………………………………………

E. ….………………………………………………………………………………

30