Boosting app-based mobile financial services engagement in B2B subsistence marketplaces: The roles of marketing strategy and app design

Abstract

Subsistence marketplaces generate over US$4 trillion annual spend and host fifty million B2B subsistence micro-enterprises, globally. These enterprises are increasingly adopting technology-driven service innovations, including app-based mobile financial services, to boost retail supply value chain efficiency. However, fostering users' continued engagement post-adoption in these markets remains challenging. Addressing this issue, in Study 1, we gather insights into theories-in-use held by app-based service providers, subsistence micro-suppliers, and -retailers. This led to a conceptual model grounded on the stimuli-organism-response (S-O-R) framework and SD logic. In Study 2 we empirically test this model through a field study with a dyadic sample of 253 micro-suppliers and micro-retailers. The findings reveal that relationship-building marketing strategies increase engagement, while transaction-focused strategies hinder it. App functionality (vs. aesthetics), likewise, represents a key customer engagement driver. Increased app-based services engagement positively impacts on non-coercive power and relationship satisfaction. These findings offer actionable implications for policymakers and marketers, emphasizing technology's role in fostering financial and digital inclusivity and efficiency in traditionally underserved B2B subsistence marketplaces.