Browsing by Author "Thaisaiyi Zephania Opati"

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    Characteristics of the African Buyer’s Purchase Behaviour
    (Emerald Publishing, 2018) Thaisaiyi Zephania Opati
    This chapter examines the trends and issues in the purchase behaviour of African buyers as a contribution to the literature on consumer behaviour and management from an African perspective. The objectives of the chapter include investigating the nature of African buyers’ purchase patterns; examining the cultural influences on African buyers’ purchase behaviour; documenting African buyers’ path to purchase; and comparing African and non-African buyers’ purchase behaviours. The data used in the chapter were gathered from Nigeria, Kenya and South Africa through surveys, a focus group discussion and a key informant interview in order to generate findings that represent various regions of Africa. Findings reveal that African buyers purchase mostly consumables for household consumption. Price bargaining is also a common feature among African buyers. Findings further indicate that nature of households, local culture and the use of technology are some of the factors that influence African buyers’ purchase behaviour. The data also showed that information gathering and involvement of others are essential in the purchase path of African buyers. The chapter created a model to depict these various issues and made recommendations for managers, educators and policymakers in Africa on the subject matter.
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    Employing Artificial Intelligence and Algorithms in the Digital Lending Industry: Measuring and Managing Risky Consumer Behaviour
    (IGI Global, 2020) Thaisaiyi Zephania Opati
    Lenders employ AI and algorithms in analyzing the potency for loan advancement. AI and algorithms are seen as efficient, and banks seem to be adopting or exploring the AI applications and algorithms to manage risk and cut bottom line cost, thus replacing costly, laborious, and repetitive activities along the value chain. The chapter offers practical solution to the practitioners and stakeholders on identifying customers associated with consumer risky default behaviors. It then advises on how to deal with these issues and what banks should employ to curb risky borrowing behavior.
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    Ethical New Product Development: A Case of Digital Loans Products in Kenya
    (Emerald Publishing, 2022) Thaisaiyi Zephania Opati
    Kenya basks of a vibrant digital financial sector from her mobile and digital financial services that have led to financial inclusions. On the flip side of it, the Kenyan digital loans sector is facing ethical scrutiny from all and sundry. Issues that are arising include a customer base being trapped in the debt trap, inflated pricing model, high interest rates, and short-term loan tenures. The sector is shrouded in poor transparency and many consumer rights infringement. Undeniably, providers inadvertently breach consumers' right to privacy and tend to promote ‘push loans’ with unsolicited messages to the vulnerable. Additionally, the use of Artificial Intelligence (AI) in determining the suitability of loan applicants via algorithms is seen to be intrusive. With consumer data being mined from the mobile phone, data utilisation, mobile payment usage, airtime usage without users' express consent, it renders the sector an unethical jungle for hunting consumers. Furthermore, consumers who by default end up receiving aggressive uncouth and unprofessional treatment in a bid to recover the unpaid loans. New Product Development (NPD) should, therefore, listen to the consumer's voice for ethical concerns to be reflected in the final product. Thus, marketers should endeavour to give ethical dimensions in NPD a measurable attribute by constantly reviewing it. This chapter examines the ethical implications of developing digital loans in Kenya.
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    Impact of Mobile Payment Applications and Transfers on Business
    (IGI Global (Business Science Reference)., 2019-12-20) Thaisaiyi Zephania Opati; Dr. Martin Kang'ethe Gachukia
    Since M-PESA, the first African mobile money platform, was launched by Safaricom in Kenya in 2007, the growth of mobile money transfer (MMT) has adopted a quantum leap in growth in certain developing countries. For instance 96 percent of households currently outside Nairobi [Kenya] have at least one M-PESA account (Logan, 2017). This adoption is significant and is currently changing and upsetting the financial landscape of these nations where the MMT has been adopted. Agrawal (2009) defines mobile money transfer as the use of a mobile phone in order to transfer funds between banks or accounts, deposit or withdraw funds, or pay bills or use of a mobile device to purchase items, whether physical or electronic. Accordingly, Orozco (2003) illuminates that MMT service is an aspect of a broader concept emerging in the electronic payment and banking industry referred to as Mobile banking. Irrefutably the double-digit growth of MMT in Africa has been credited to the progression of the platform beyond peer-to-peer mobile payments to include paying for shopping, utility bills such as school fees, water, rent and electricity, receiving dividends, and diaspora remittances. This trend has led Logan (2017) to admit that the impact of MMT to poverty reduction a definite result of improved financial behavior – by facilitating easier transactions and safer savings – and changes in the occupational choice of users. This trend has forced corporates to adopt mobile money linkages and transactions to maintain their market share heavily due to consumer convenience posed by MMTs. For instance, Kenya Power a power utility company in Kenya estimates that 80 per cent of the utility’s 654,953 pre-paid customers buy electricity tokens through mobile money platforms. Kenya Airways, the Kenyan national carrier has adopted mobile money payments now make up one per cent of total air ticket sales in 2015 .Without a doubt the as the World Bank (2009) notes the primary function of MMT services has been to reduce the costs of making payments from one individual to another, especially across large distances . Adam and Walker (2015) posits that as a result mobile money tends to increase the macroeconomic stability of the countries contrary to popular expectations that it would destabilize the conduct of monetary policy in those countries. For instance M-PESA as part of economic expansion and customer convenience the transaction costs in Kenya has significantly reduced for instance, during its launch the average distance to the nearest bank was 9.2 kilometers, eight years later in 2015 the average distance to the nearest M-PESA agent was a mere 1.4 kilometers (Logan,2017). MMT tends to increase the velocity of money in circulation because it cuts the transactions and time costs of making retail payment prompting efficiency of transactions desired by customers (Nampewo & Opolot, 2016). MMTs triumphs in Africa have been tried and tested and they are being replicated around the world. Recent inventory by the social venture credit SMS suggests that there are at least 23 distinct MMT, operating or pending in 20 countries following the success of MPESA (Pulver, & Gunnar, 2009). These places include Greenfield deployment in Indonesia launched in 2009 and the SMART Communications’ Island Activations Program in the Philippines. M-PESA like infrastructure was even adopted by the leading Afghan mobile network operator, Roshan, anticipate building an M-PESA-like infrastructure in Afghanistan by end of 2010 (Pulver & Gunnar, 2009). Mobile money users are able to form more diverse risk-sharing networks, it’s not surprising that users, compared with non-users, tend to receive more remittances from more people (Logan, 2017). Kamukama and Tumwine (2012) notes that the proliferation of mobile payments may disadvantage commercial banks by weakening their liquidity positions but they are now adopting the same platform to do business efficiently. MMT is vital in enabling households to lift themselves out of extreme poverty (Logan, 2017). The innovations in the financial sector, including mobile money, have been shown to have statistically significant positive long-run effects on money velocity in Uganda (Nampewo & Opolot, 2016). The intention of the authors of this book is to bring to the fore an in-depth assessment on the impact of mobile payment applications and transfers on business and customers; keenness has to be drawn on how the emergent area of mobile money technology has changed relationships in business organizations and consumers. Mobile payment applications have spawned the world over and have been adopted to varied business needs and settings particular to Sub-Saharan Africa. The advent of MMT has had a significant impact and has borne a momentous stride on business entities and the general economic systems although with a considerable resistance due to complacency in use of cash and card systems; security assurance in mobile transactions, underlying risks associated to innate ability to data privacy. The impact of mobile payment applications and transfers on business and customers is therefore current and appealing to all stakeholders whether in the Telcom industry, management, mobile money operators as well as policy analysts; all will find this book being a valuable tool for career development, practitioners and academics.
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    The Why and the Wherefores: A Case for Consumerism in the Marketing of Digital Loans
    (IGI Global, 2020) Thaisaiyi Zephania Opati; Martin Kang'ethe Gachukia
    Though the digital loan industry is still in its diapers, the unprecedented growth of it is a concern to many stakeholders within the financial industry. In fact, the emerging apprehensions arising out of the process of lending, distribution, and use of the digital loans have become a cause for consumerism and consumer advocacy within this new emerging product category. Of great apprehension are issues relating to regulation, consumer privacy, and loan processing among others. With this regard, a survey was carried out in Nairobi County, Kenya with over 500 questionnaires being sent through email to respondents who fall within the middle-class category. A convenience sampling method was adopted for the study, and 243 were answered and returned. A further analysis was done given the objective of the study was to examine consumer and ethical concerns arising out of sale and marketing of digital loans. This chapter examines consumer issues arising out of the digital loan applications and addresses what the industry needs to do. It recommends the way forward in dealing with these issues.