In a new transaction model challenging the existing way

In the recent past, many cities all over the world are
experiencing a significant growth in their demographics.(Olsson, 2003) It has been estimated that by
the year 2050, at least two thirds of the world population will be living in
the cities. According to (Puche, 2016),the rapid urbanization has
brought with it social, economic and technological changes which in turn pose
new challenges in the urban setting. One of the most affected areas is the
transportation sector that has been revolutionized by the new information and
communication technologies (ICT). (J. Zhang & Lu, 2016).The introduction of taxi apps
on mobile devices have allowed and provided a new transaction model challenging
the existing way of transacting business. The taxi hailing apps allows users to
search for the available taxi around them, select vehicle depending on the variety
available, fix their destination location by Global Positioning System (GPS), see
the route toward the destination and upon arrival, they have the options that
allow the user to make online payments. In addition to this, the app also offers
automated fare calculation that has analytics features and storage of invoices.
This allow the user to view the history of all trips and payments which enables
them to keep a tab on the number of requests accepted and other details related
to the service.(Chen, Chan, Katz, Chang, & Christiani, 2004)

Uber was amongst the first of these apps to be introduced in
the world. It began its operations in 2009 in the United states with the
initial business as luxury car hiring .It has since then entered more than 200
cities and is in more than 45 countries.(Puche, 2016). Since its launch, Uber which
emerged as an “Innovation disruptive” has caused an uproar worldwide in almost
all the cities where it has entered the taxi market. (Spain, Canada, Germany,
Colombia, France, Panama, Mexico, Brazil and now more recently, Kenya).It
brought unprecedented competition to the taxi industry and changed the nature
of the traditional taxi business.(Techarattanased, 2015)

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The use of taxi hailing apps has become quite rampant and
fierce ever since Uber paved the way for the other Kenyan taxi companies in
January 2015. Since then, a number of taxi hailing app companies have popped up
in an attempt to get a sizeable piece in the taxi business. These companies
include: Uber taxi, Easy taxi, Taxify, Little cab, Mondo ride, Pewin Cabs, Maramoja
and Share Cab. The taxi hailing app has created more competition in the taxi
industry through increased supply of readily available cars and drivers at the
click of a button. However, the entry of new players in the industry not only
signifies growth but  also signals higher
competition which in turn means that the market players must do more in order
to survive the volatile market and maintain a competitive edge. The market
players must endeavor to ensure that more customers acquire, adopt and choose
to use their taxi apps in order to reap the benefits that they pose to both the
company and the passengers.(P. K. Kumar & Kumar, 2016). The Technology acceptance
model proposes that perceived usefulness and perceived ease of use as the two
most important individual beliefs about using an information technology. The
taxi hailing app have been widely accepted as users perceive them to be both
useful and easy to use. Researchers have continued to extend the Technology
acceptance model (TAM) ( Wixom and Todd, 2005). Some researchers introduced external variables or moderating
factors to the two major belief constructs (perceived usefulness and perceived
ease of use), such as personality traits and demographic characteristics (Gefen
and Straub, 1997; Venkatesh, 2000; Venkatesh and Morris, 2000).

In order for the market players to position themselves in
the industry and  secure their business
in the future, they must pay close attention to the other variables that
influence how consumers accept and adopt a new technology.(Pérez, 2008).According to the black box
model, Marketers use their marketing stimuli (product, price, place and
promotion) to influence the buyers black box ( buyers mind ) which consists of
the buyers characteristics (cultural, social, personal and psychological) and
the buyers decision making process  in
order for them to make a positive decision towards their product.(Jisana, 2014). When a consumer is
evaluating whether or not to purchase a product, he/she is influenced by either
cultural, social, personal or psychological characteristics that determine how
they react towards the marketing stimuli(Milner & Rosenstreich, 2013).

Consumer behavior is a part of human behavior and by studying
previous buying behavior, marketers can estimate how consumers might behave in
the future when making purchasing decisions. (Kotler&Armstrong, 2010)Marketers
should focus their efforts on revealing the complexities of an individual buyer,
the dynamics of consumer behavior and try to understand each. The differences
in consumers’ decision – making process will then be able to aid the marketers
in classifying individuals into meaningful homogenous subgroups that will then
enable them to develop products that fulfil the requirements of these groups.(Nisel, 2001). The buyers’ characteristics:
– cultural, social, personal and psychological factors are internal of each
person and so it is very difficult for the company to have information or
influence them. Companies try hard to study the external stimuli and the buyer’s
black box in order to influence their decisions. With good information of the consumers’
preference and a good marketing stimuli the companies can achieve their main
purpose of their products being chosen by the consumer instead of those of
competitors. The companies can choose to use any of the buyer’s characteristics
to segment the market. These paper will concentrate on the buyers personal
factors.