Mitigating microfinance marketing channels inefficiencies with customerization of mobile technology

Purpose: The purpose of this paper is to investigate how technological innovations mitigate inefficiencies in marketing channels in the context of microfinance markets in emerging markets. By examining in detail, specific market inefficiencies that inhibit the efforts of micro and small enterprises to access microfinance in emerging markets and the use of technology to alleviate these failures, the authors bridge the literatures on marketing channel inefficiencies and technological innovation relevant to emerging markets. Design/methodology/approach: The authors use a qualitative method in the form of phenomenological interviews and participant observation in Ghana, West Africa, to investigate the research question. Findings: The three themes that arise from the findings are: channel structure and structure selection; power-dependence relationships and relational outcomes; and conflict mechanisms and control behaviors. Customerization of technology is observed to mitigate inefficiencies in mobile marketing channels by facilitating data sharing, reminders, peer referencing and other marketing strategies of awareness, affordability, access and scalability. Research limitations/implications: The limitations of this study are the fact that the context of the study is only one emerging market country – Ghana. This market is however experiencing dynamic changes in mobile technology innovations that is revolutionizing the microfinance industry. Practical implications: Mobile money innovations have advanced the scope of marketing channels to the point that an updated perspective of the role of mobile technology in mitigating marketing channels inefficiency is both appropriate and timely. Originality/value: The authors make the contribution of customerization as an aspect of mobile technology that is a key enabler in microfinance marketing channels, serving to mitigate microfinance market inefficiencies. Additionally, the study augments theories on the marketing channels framework by contributing perspectives on mobile technology.