Determinants of consumers adoption of point of sale (Pos) terminals in Lagos State, Nigeria
The study examined the extent of availability of point of sale (POS) terminals; assessed the motivational factors influencing consumers’ use of POS terminals; determined the level of consumers’ satisfactions with POS terminals; and evaluated the challenges to the efficient use of POS terminals. This was with a view to providing information on factors determining consumers’ adoption of POS terminals in Nigeria, and guiding managers of financial institutions, policy makers and government to design, formulate and implement proactive strategic marketing techniques and policies aimed at ensuring consumers’ acceptance and use of this innovative technology. The study utilized primary data, sourced through administration of structured questionnaire to 650 randomly sampled respondents. Data were collected on respondents’ extent of availability, motivational factors, level of consumer’s satisfaction and challenges to the efficient use of point of sale terminals. The data generated were analysed using descriptive and inferential statistics such as frequency counts and probit model. The findings of the study indicated that POS terminals were not readily available to the consumers as majority (51.6%) of those who adopted the technology did not find it in all merchants stores patronized for transaction. Factors such as nativity (p = 4.29), security (p = -4.13), convenience (p = 5.28) and time saving (p = 2.63) were the significant factors influencing the adoption of POS at 5% level. Further, the results revealed that consumers were generally satisfied with the usage of POS terminals on the dimension of convenience (87.2%); service quality (83%); value provided (76%) and technological selection (85%), unavailability of the technology at all merchant stores (67%), infrastructural problems such as network failure (87%), frequent power outage (94%), limited number of POS per merchant store where available (79%) as well as privacy of data and security of communication over the network (67%). The study concluded that POS adoption is influenced by nativity, security, ease of use, availability of the technology as well as convenience of use. The adoption is found to be concentrated among the young and male genders. Also, lack of awareness is found among merchants who are supposed to be operators of the technology as well as supposed consumers of the POS service. High level of perceived insecurity, poor infrastructural facilities such as unstable power supply hinders efficient use of the innovative technology.