INFLUENCE OF WEB-BASED INFORMATION SYSTEMS ON AGRICULTURAL MARKETING

CHAPTER ONE

1.0 Introduction

Over the past 120 years, marketing has undergone continuous transformation, largely driven by technological advancements that have significantly reshaped business strategies worldwide (Turban, 2021). The emergence of digital technologies, particularly social media platforms, has revolutionized interactions between businesses and consumers, making marketing more dynamic, accessible, and cost-effective (Yaqub, 2023).

1.1 Background of the Study

Globally, marketing has evolved in response to technological progress, cultural changes, and shifting consumer behavior. Before the 1900s, marketing was primarily based on barter trade. Between the 1900s and 1930s, it transitioned into a product-oriented era, followed by a market-oriented phase from the 1950s to the 1980s. The period from the 1970s to the 2000s emphasized societal marketing, while the 2000s to the present are characterized by the Internet and social media era. The rise of web-based information systems and mobile technologies has fundamentally transformed business operations (Hernández-Zambrano, 2022).

Web-based information systems have introduced a new dimension to marketing by enabling two-way communication between businesses and consumers, unlike traditional one-way communication channels. This has made marketing more interactive, efficient, and cost-effective. The growth of platforms such as Facebook, WhatsApp, Pinterest, X (formerly Twitter), Google, Microsoft, Instagram, TikTok, and WeChat has greatly enhanced this transformation (Ali, 2023). Globally, over 5.07 billion people—approximately 62.6% of the world’s population—use social media, with about 259 million new users joining annually (Hastuti, 2023).

The economic significance of web-based marketing continues to grow. In 2023, global spending on digital advertising reached approximately $270 billion and is projected to exceed $300 billion by 2024 (Rodríguez-Ibánez, 2023). This growth reflects the increasing reliance on digital platforms for marketing across industries.

In Africa, the adoption of web-based information systems is expanding rapidly due to increased internet penetration and mobile phone usage. By 2022, the number of social media users in Africa had surpassed 384 million. As of 2024, Nigeria had about 103 million internet users, Kenya had 13.05 million social media users, and South Africa had approximately 26 million users (Rodríguez-Ibánez, 2023).

Web-based information systems have also democratized marketing by enabling small-scale enterprises, including agricultural exporters, to compete with larger firms. These platforms provide cost-effective marketing opportunities, allowing businesses to achieve wide visibility through engaging and viral content (Evans, 2021; Kanellos, 2024).

Despite these advantages, adoption among Ugandan agricultural producers and exporters remains relatively low. Although internet penetration in Uganda is estimated at around 45%, only about 2.6 million Ugandans were active internet users as of January 2024, representing a small proportion of the population. This limited digital engagement is reflected in Uganda’s agricultural export performance, which stood at approximately $2.45 billion in the 2021/2022 financial year—lower than Kenya’s $2.7 billion and South Africa’s $12.8 billion (Obol, 2023).

Several studies attribute this slow adoption to factors such as limited digital skills, inadequate access to technology, and uncertainty about returns on investment. Additionally, there is insufficient training and support tailored to small-scale agricultural producers, which limits their ability to effectively utilize digital tools (Ramirez, 2018).

These challenges raise concerns about the readiness of agricultural exporters to adopt web-based marketing systems. Readiness refers to the capacity and preparedness to effectively integrate digital technologies into business operations. Without adequate readiness, exporters may struggle to fully exploit the benefits of these platforms (Liverpool-Tasie, 2020).

In Uganda, web-based information system usage began gaining prominence around 2009 (Asongu, 2021). Popular platforms include Facebook (79.98%), Pinterest (9.4%), Twitter (4.74%), and YouTube (3.45%). Agriculture remains a critical sector in Uganda, contributing approximately 24% of GDP, 35% of export earnings, and employing about 68% of the workforce. Although 80% of Uganda’s land is arable, only about 35% is currently utilized.

Uganda produces a wide range of agricultural products, including coffee, tea, cotton, fish, and cereals. Coffee remains the leading export commodity, generating significant revenue. However, despite the presence of over 2.6 million active social media users, agricultural exporters remain hesitant to use these platforms for marketing, even though the sector contributes approximately 55% of total export earnings.

Statement of the Problem

Despite the global shift toward digital marketing, many agricultural exporters in Uganda remain reluctant to adopt web-based information systems for marketing their products. This is evident despite the significant contribution of agricultural exports—valued at approximately $3.99 billion in 2022—to the national economy. Coffee alone contributed about $753 million, yet the sector still operates below its full potential (Ruge, 2023).

Although some exporters maintain a presence on social media platforms, their utilization for marketing purposes remains limited. This is concerning given the proven effectiveness of digital marketing in expanding market reach, enhancing competitiveness, and promoting economic growth (Surya et al., 2021; Chatterjee et al., 2021).

The limited readiness of agricultural exporters to adopt these technologies may be influenced by non-financial factors such as human capital, digital competence, and social capital. If these challenges are not addressed, Uganda risks lagging further behind in the global agricultural market, thereby constraining sectoral growth and national economic development. This study therefore seeks to examine the influence of web-based information systems on agricultural marketing.

Objectives of the Study

i. To examine the challenges faced by farmers and traders in accessing agricultural market information.
ii. To identify the key features and functionalities required in a web-based agricultural marketing information system.
iii. To assess the influence of user knowledge and skills on the adoption of web-based information systems.

Research Questions

i. What challenges do farmers and traders face in accessing agricultural market information?
ii. What key features and functionalities are required in a web-based agricultural marketing information system?
iii. How do user knowledge and skills influence the adoption of web-based information systems?

CHAPTER TWO

LITERATURE REVIEW

2.1 Theoretical Review

The Unified Theory of Acceptance and Use of Technology (UTAUT) explains the adoption of web-based information systems in agricultural marketing. It identifies four key determinants: performance expectancy, effort expectancy, social influence, and facilitating conditions (Uba, 2023).

Performance expectancy refers to the extent to which individuals believe that using technology will enhance their performance. For agricultural exporters, factors such as human capital, motivation, and social networks can strengthen this perception. Effort expectancy relates to the ease of using technology, which can be improved through training, user-friendly platforms, and technical support.

Social influence reflects how individuals are affected by others’ opinions, while facilitating conditions refer to the availability of infrastructure and support systems necessary for technology adoption. Training programs, success stories, and reliable internet access can significantly enhance adoption among agricultural exporters (Donmez-Turan, 2020).

2.2 Challenges in Accessing Agricultural Market Information

In many developing countries, agriculture plays a central role in economic development by contributing to GDP, employment, and food security. However, farmers and traders often face challenges in accessing timely and accurate market information. These challenges limit their ability to make informed decisions, negotiate prices, and maximize profits.

2.3 Features of a Web-Based Agricultural Marketing Information System

An effective agricultural marketing information system should provide real-time market prices, supply chain tracking, and demand forecasting. It should also feature a user-friendly, multilingual interface to accommodate users