Software Market in Nigeria: A Case Study of Its Buying Behaviour Heterogeneity

Abstract

The impact of the software buying decisions has a rising relevance in social and economic terms This research focused on the organizations buying decisions of Operating Systems and Office Suites for personal computers and the impact on the competition between incumbent and alternative players in the market in these software categories. Questionairing method of data collection was used using 5-point likert scale mode, some hypothesis testing were carried out on the most relevant factor of the subject matter at 5% level of significance. It was concluded that in this market beside brand image, product features or price, other factors could have influence in the buying choices. Network effect, switching costs, local network effect, lock-in or consumer heterogeneity all have influence in the buying decision. The results showed that the free licensing with the perception that Open Source Software global cost is lower than  the local network effect. The influence of market factors like network effects, lock-in, consumer heterogeneity or switching costs also favors the incumbent Proprietary Software.

Keywords: Consumer Behaviour, Software Market, Lock-in, Network Effect, Switching Cost, Software Buying Decision.

DOI: 10.7176/NCS/13-02

Publication date:May 31^st 2022