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  • 8/10/2019 9-Etu-mobile Advertising and Brand Trust

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    How Mobile Advertising Works The Roie of

    Trust in Improving Attitudes and Recall

    OK Z KI

    de Madrid

    KIHIRO K TSUKUR

    dentsu.co.jp

    How does trust affect consumer attitudes and recall in mobile advertising? This study

    explores this question by conducting a large-scale pseu do mobile advertising

    campaign in Japan. Two real brands (one durable and one nondurable good) of

    major Japanese manufacturers were used as study stimuli. Using a push messaging

    service, both a campaign message and a subsequent questionnaire for each brand

    were sent to 40,000 opt-in mobile users. Five primary constructs were examined:

    brand trust, mobile advertising trust, attitude toward brand, attitude toward mobile

    advertising, and mobile campaign recall. Findings suggest that a mobile campaign's

    recall largely depends on perceptions of both the medium and the advertised content,

    and that the effects of mobile advertising trust on attitude toward mobile advertising

    were stronger than those of other relationships. The path from attitude toward brand

    to mobile campaign recall was notably and statistically stronger for the durable good

    sample than for the nondurable good sample. Only in the durable good sample is

    attitude toward brand a mediating variable in linking attitude toward mobile advertising

    and mobile campaign recall. This study offers a basic but useful research framework

    for a mobile-based online survey.

    R E S E A R C H E R S A N D PRACT I T I ONE RS AG RE E th t th e

    most explosive growth in telecommunications has

    occurred in internet and mobile telephone ser-

    vices (Lehr and McKnight, 2003). Combining these

    two technologies, the internet-enabled mobile de-

    vice has become one of the most promising ad-

    vertising media around (Okazaki, 2006). For

    example, SMS (short message service) direct mar-

    keting is a popular campaign method worldwide,

    with consumer spending in the United Kingdom

    reaching 58 million messages per day in 2004

    (Trappey and Woodside, 2005). The trend has mi-

    grated to the United States as well. McDonald's

    conducted an SMS-TV direct marketing campaign

    in conjunction with a popular song contest pro-

    gram, offering concert tickets and backstage passes.

    Coca-Cola executed a text message campaign for

    college students in which a number printed on a

    Diet Coke can could be used as an entry in the

    Coca-Cola Grand Sweepstakes Competition. Ac

    cording to Mullman (2006), as many as 8 percen

    of 18- to 2]-year-olds have mobile phones, and

    most of them are likely to participate in TV o

    radio polls, purchase ring tones, play games, and

    send text messages.

    On the other hand, SMS is not used in Japan a

    widely as in Western markets. Instead, an email

    compatible version of mobile mail is commonly

    used in NTT DoCoMo's i-mode, which has been

    cited as by far the most successful and mos

    comprehensive example of m-commerce today

    (Sadeh, 2002, p. 5). While widely used for deliv

    ering digital content such as ring-tones/songs

    news,

    weather reports, travel and traffic reports

    games, standby displays, and animated video

    this service allows users to transmit em ail of up to

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    HOW MOBILE DVERTISING WORKS

    10,000 alphanumeric characters or 10,000

    bytes (NTT DoCoMo, 2006). For promo-

    tional cam paign s, i-mode offers Message

    F (Free), which is a push-type service

    delivering advertising exclusively to opt-in

    users.

    Advertisements are delivered to a

    designated Message F inbox, and users

    are exempt from the normal packet trans-

    mission charges. This Message F can be

    sent to specific regional, gender, or age

    groups, thus allowing firms to target mes-

    sages to selected segments (D2 Commu-

    nications, 2005). In addition, an image

    attachment service begun in July 2005 sup-

    ports the transmission of images, logos,

    and other visual effects up to 8KB per

    message (192 X 192 pixels in JPEG or

    G I F .

    In 2006, major Japane se mob ile car-

    riers are beginning to launch m obile ha nd-

    sets that can receive terrestrial digital

    broadcasting signals in addition to con-

    ventional analog signals, thus enabling

    firms to take advan tage of interactive pre-

    sentations with static, animated, and/or

    broadcast images (NTT DoCoMo, 2005).

    Hence, the use of SMS as a reference

    point for mobile advertising may no lon-

    ger provide a realistic impression. How-

    ever, there is little, if any, empirical

    evidence as to the question of how mobile

    advertising works in a more enhanced

    environment. Our primary objective here

    is to close this research gap through an

    experimental study of mobile advertising

    campaigns. The study consisted of trans-

    mitting pseud o mobile advertisements

    of popular Japanese brands, one a dura-

    ble good and the other a nondurable good,

    to opt-in users. The advertisements con-

    tained both textual and v isual parts, which

    is more consistent with currently prevail-

    ing mobile technology that enables firms

    to use rich digital content rather than

    simple text-based m essages. One week af-

    ter sending the advertisements, we sent a

    structured questionnaire to the same users

    in an attempt to examine their level of

    acceptance. The study set out to examine

    five primary constructs: trust toward the

    advertised brand, trust toward mobile ad-

    vertising, attitude toward brand, attitude

    toward mobile advertising, and mobile

    campaign recall.

    In what follows, we first critically re-

    view the extant literature on mobile ad-

    vertising research, then establish the

    theoretical framework of the study. On

    this base, research hypotheses are pro-

    posed. Following a detailed explanation

    of the methodology, we present the study

    results and discuss the implications of

    the study while recognizing important

    limitations.

    DV NCES IN MOBILE DVERTISING

    RESE RCH

    One of the benefits of a mobile-based

    campaign is its capacity to attract con-

    sumer attention and increase consumer

    responses through a one-to-one dia-

    logue with customers (Kavassalis et al.,

    2003).

    This matches the characteristics of

    the mobile phone: a highly portable com-

    munication device with ubiquitous data

    transmission capability. In recent years,

    higher-capacity 3G technologies have re-

    sponded to more specific information

    needs by offering always-on service with

    more interactive and location-based appli-

    cations (Perlado and Barwise, 2004). So

    far, however, with the exception of some

    Asia Pacific countries, SMS has been the

    most common platform for mobile adver-

    tising (Kavassalis et al., 2003) and there-

    fore the most studied application. Table 1

    summarizes the recent advances in mo-

    bile advertising research.

    In a pioneering study, Barwise and

    Strong (2002) conducted a trial of

    permission-based SMS message adver-

    tising in the United Kingdom. On re-

    cruitment, respondents were paid cash

    incentives and received more than 100

    messages in the six-week trial period. Al-

    most all respondents were satisfied or

    satisfied. The study found that

    8 1

    pe

    read all messages, 63 percent respon

    or took action, and 17 percent forwa

    at least one message. Surprisingly, as m

    as 84 percent of respondents were li

    to recommend the service to their frie

    whereas only 7 percent were likely

    abandon the service.

    That research was later corroborate

    Rettie, Grandcolas, and Deakins (20

    who conducted a study based on r

    mobile advertising campaigns that

    place between October 2001 and Jan

    2002. In total, the researchers condu

    5,401 telephone interviews regarding

    different campaigns and found that

    overall acceptability of SMS adverti

    was 44 percent, with an average resp

    rate of

    2 5

    percentmuch higher than e

    marketing. Acceptability was also sig

    cantly correlated with campaign inte

    campaign relevance, and monetary in

    tives. Similarly, sporadic industry surv

    report a rather optimistic blueprint.

    experimental survey conducted by E

    son indicates that 60 percent of cons

    ers liked receiving mobile advertis

    while Quios found that the level of re

    nition of mobile advertising was sur

    ingly high: 79 percent of particip

    recalled 60 percent of the adverti

    (Bames, 2002).

    In contrast, a study conducted by Ts

    H o ,

    and Liang (2004) reveals less en

    siastic attitudes toward mobile adve

    ing among Taiwanese. Their struct

    model included both utilitarian and

    periential factors affecting consum

    attitude toward permission-based SMS

    vertising. It was found that (1) consum

    generally have negative attitudes tow

    mobile advertising unless they have b

    informed and have preconsented

    opted-in) to the advertisements, and

    there seems to be a direct and pos

    relationship between consum ers' attit

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    HOW MOBILE ADVERTISING WORKS

    ng (2002 )

    g (2005 )

    Research

    Topic

    Adoption of

    permission-

    based push

    advertising

    Perceptions

    of pull-type

    advert is ing

    platform

    Adoption of

    SMS

    advertising

    Adoption of

    SMS

    advertising

    Adoption of

    m-commerce

    (including

    advertising)

    Satisfaction in

    m-commerce

    (including

    advertising)

    Loyalty in

    m-commerce

    (including

    advertising)

    Population

    General

    consumers

    General

    consumers

    Mobile

    internet

    users

    General

    consumers

    General

    consumers

    -H mobile banking

    users + students

    Mobile

    site users

    University

    students

    - ge neral

    consumers

    Size

    500

    800

    430

    5,401

    850

    116

    25 5

    Sample

    Age

    1 6 - 3 0

    n.a.=

    Under 30

    (85 )

    Unknown

    Under 39

    (82 )

    Under 41

    (average:

    24 )

    1 8 - 3 9

    Gender

    M a l e /

    Female

    50 /50

    n.a.

    Unknown

    Unknown

    76 /24

    5 9 /4 1

    Occupation

    Unknown

    Students,

    office workers,

    housewives.

    professionals.

    etc.

    Students

    (60 )

    Unknown

    Students,

    office workers.

    etc.

    Unknown

    Students,

    high-firm

    employees.

    and insurance

    employees

    Response

    Rate

    1 0 0

    8.0

    8 8 . 3

    25

    3 6 . 7

    n.a.

    n.a.

    (quota

    sample)

    Methodology

    Survey

    P & P

    P&P

    P&P

    Phone

    interview

    P&P

    P&P

    P&P

    Scale

    Type

    Interval

    scale

    7-point

    Likert

    7-point

    Likert

    Ordinal

    7-point

    Likert

    7-point

    Likert

    7-point

    Likert

    Reliability

    Assessment

    CFA,'' a

    C F A , a

    C F A ,

    a

    n.a.

    CFA

    C F A ,

    CFA

    P = paper-and-pencil survey

    = confirmatory factor analysis

    tinguishes this study from other empirical

    studies carried out in recent years.

    Much less attention has been paid to

    web-based pull ad vertising. Okazaki

    (2004) exam ined the factors influencing

    consumers' motives to click text banner

    advertisements in the i-mode mobile ad-

    vertising platform known as Tokusuru

    J u n e 2 7 J D U I ll l I l L O F H D U E R T IS in G R E S E im C H 1 6 7

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    HOW MOBILE DVERTISING WORKS

    Menu . This platform is included in an

    official i-mode menu, which enables sub-

    scribers to freely access the promotional

    information delivered by various compa-

    nies. He found that three constructs

    content credibility, infotainment, and

    irritationaffected the formation of atti-

    tudes toward wireless advertisements,

    which in turn determined tbe level of

    intention to click the advertisements. In-

    terestingly, tbe demographic analysis re-

    vealed that tbe unmarried working youth

    segment has a higher propensity to access

    such pull mobile advertisements.

    THEORETIC L FR MEWORK

    Trust as a factor determining mobile

    advertising acceptance

    Traditionally, the relevance and credibil-

    ity of advertisements have been consid-

    ered important mediators of advertising

    effects (MacKenzie and Lutz, 1989). In

    particular, perceived trust can be seen as

    consumer feedback, reflecting individu-

    a l s

    determination of whether the im-

    parted information is true or false. Trust

    becomes crucial when consumers must

    make decisions or take action on the basis

    of uncertain information. On the internet,

    however, it may be seen as more difficult

    to distinguish between more and less trust-

    worthy information because, as is not the

    case with traditional media, much of the

    content of online information is not sub-

    ject to governmental or ethical regulation

    (Eastin, 2001). In tbis light, Hoffman, No-

    vak, and Peralta (1999) claim that a fun-

    damental mistrust by customers of online

    business lends support to the view of

    some separation between brand identity

    and brand experience. Tbis lack of faith

    in the unregulated flow of information

    presents a similar problem for those seek-

    ing information via mobile devices.

    In this vein, Sadeh (2002) points out

    that the success factors associated with

    the i-mode m-commerce portal are precur-

    sors of future internet business m odels, in

    wbicb value will be created through con-

    venience, ease of use, and compelling con-

    tent tbat users will be willing to pay for.

    Mobile users are likely to choose to open

    mobile advertisements out of curiosity,

    but they must then decide whether to

    further access mobile campaign sites. Such

    a decision must be made mainly on tbe

    basis of trust in the advertisement and in

    the advertised brand. Therefore, trust

    should be conceptualized as consisting of

    two different constructs, brand trust and

    mobile advertising trust, both of which

    affect users' choice to open push mobile

    advertising. The users are likely to do so

    only when they perceive both the me-

    dium and the content to be nondeceptive

    and trustworthy.

    Trust as a factor determining online

    branding effectiveness

    Mylonopoulos and Doukidis (2003) argue

    tbat mobile advertising via email or SMS

    is effective in enhancing brand awareness

    and customer loyalty. Hence, tbere is strong

    evidence that many firms actually use

    mobile advertising for branding pur-

    poses. Okazaki (2005) interviewed 53 se-

    nior executives of multinationals operating

    in European markets and found that tbe

    creation and enhancement of brands are

    tbe most important motives for multi-

    national corporations to adopt mobile ad-

    vertising in international markets. This is

    consistent with Sultan and Rohm (2005),

    who argue, Mobile marketing creates new

    opportunities for companies to form or

    shift consumer attitudes toward a brand

    through the use of value-added content

    p .

    85).

    There is evidence that a growing num-

    ber of firms actually use mobile advertis-

    ing in brand promotion. For example,

    McDonald's offers three different types of

    mobile coupons on three different plat-

    forms, from the basic text-only SMS ver-

    sion to the graphically rich version

    i s ,

    fully trackable and rede emab le, all

    out any point-of-sale hardware or

    ware requirements (iMedia Connec

    2005a). DreamWorks Home Enter

    ment used a viral campaign for the D

    of the film

    Th e R i n ^

    that operate

    mobile phones and email accounts.

    tors to the campaign site were invite

    scare their friends by entering their

    address and mobile telephone num

    Tbe site then sent them an email, inv

    them to click on a link and watch

    video (iMedia C onnection, 2005b). Ad

    enables consumers to download pop

    athletes' pbotos on a mobile site and

    itally superimpose their own pboto

    those im ages (Sultan an d Rohm, 200

    Japan, Kirin MC Danon Waters Co.

    launched a campaign for Volvic mi

    water in wbicb consumers enter a sw

    stake contest in mobile phones wi

    serial bottle nu mb er (Senden K aigi, 2

    P&G sends a sample of the Pantene b

    shampoo to users who respond to

    mobile advertising in i-mode (Se

    Kaigi, 2004).

    The success of these branding e

    ples, however, appears to depend on

    distance between brand identity and b

    reputation. That is, tbe more consu

    trust the brand, the smaller tbe incon

    ity between what firms intend to e

    lish and what consumers identify

    the brand (Jevons and Gabbott, 20

    Hence, in tbe context of mobile adve

    ing, trust plays a crucial role in obtai

    desired consumer responses.

    ttitude formation and mobile

    campaign recall

    An attitude toward an object can be

    fined as an individual's internal ev

    tion of it on tbe basis of his or her be

    (Fishbein a nd Ajzen, 1975). In other w

    beliefs determine tbe basic form of

    attitude, which in turn triggers behav

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    HOW MOB ILE DVERTISING WORKS

    A mobile advertisement can be seen as

    orable or unfavorable attitudes, irrespec-

    However, a company's ultimate goal of

    e advertising, bu t the formulation of an

    neglected tbe importance of brand

    despite empirical and theoretical

    Karahanna, and Straub,

    2003;

    Kim and

    Benbasat, 2003), including m-commerce

    (Lin and Wang, 2006).

    RESEARCH HYPOTHESES

    On the basis of tbe preceding arguments,

    tbis study proposes to examine trust in

    tbe advertised content and in the adver-

    tising medium, given that brand trust and

    mobile advertising trust affect favorable

    attitudes toward tbe advertisement and

    tbe brand, respectively. Both attitudes, in

    turn, are hypothesized to directly and

    positively influence the level of mobile

    campaign recall. Tbus, the following hy-

    potbeses are suggested:

    H I :

    Mobile advertising trust directly

    and positively affects attitudes to-

    ward mobile advertising.

    H 2 :

    Brand trust directly and posi-

    tively affects attitudes toward

    brand.

    H 3 :

    Mobile advertising trust directly

    and positively affects attitude to-

    ward brand.

    H 4 :

    Attitude toward mobile advertis-

    ing directly and positively affects

    attitude toward brand.

    H 5 : Attitude toward mobile advertis-

    ing directly and positively affects

    mobile campaign recall.

    At the same time, we posit tbat attitude

    toward brand would

    a c t a s a

    mediating vari-

    able in linking attitude toward mobile ad-

    vertising and m obile campaign recall. This

    is because the growing use of mobile ad-

    vertising suggests that practitioners may in-

    tuitively believe that favorable p erceptions

    of the advertising will lead to favorable per-

    ceptions of the brand advertised, which

    could achieve their ultimate goal: a higher

    level of mobile campaign recall. This sug-

    gests the following and final hypotheses:

    H 6 :

    Attitude toward brand directly

    and positively affects mo bile cam-

    paign recall.

    H 7 :

    Tbe relationship between atti

    tude toward mobile advertising

    and mobile campaign recall is me-

    diated by attitude toward brand

    Figure 1 shows our research model.

    METHODOLOGY

    Pseudo mobile campaign

    This study w as organized into two phases

    (1) transmission of the pseudo mobile cam-

    paign, and (2) questionnaire survey via

    mobile device (Figure 2 . In tbe first phase

    we sent mobile advertisements that con-

    tained pseudo-campaign messages with

    hyperlinks to access further campaign

    information on the mobile site. D2 Com-

    mun ications (D2C), tbe largest mobile ad-

    vertising agency in Japan, collaborated in

    tbis study by creating the pseudo adver-

    tisem ents. It offered its Message F, a

    push service that delivers textual and vi

    sual information from advertisers to opt-in

    users only. Tbis service bas been success

    fully used as a campaign tool by many

    firms, such as P&G, Sapporo Beer, and

    Panasonic (Senden Kaigi, 2004).

    In addition, we contacted two large Jap

    anese manufacturers, both listed in tbe

    first section of tbe Tokyo Stock Exchange

    who agreed to collaborate in the experi

    ment and allow us to use their most pop-

    ular brands as real stimuli in tbe campaign

    One company manufactures a sophisti

    cated portable audio player (i.e., durable

    good), whereas the other makes a puffed

    com snack (nondurable good). Both brands

    are firmly established in tbe Japanese mar

    ket. After designing textual and visua

    information for tbe mobile advertise

    ments, we created a promotional mobile

    site to which respondents could jump by

    clicking a ban ner saying Please click here

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    HOW MOBILE ADVERTISING WORKS

    Figure 1 Research Model

    for further information in the adver

    ments (Figure

    2 .

    Again, as an incenti

    participate in the campaign, we offer

    free ring-tone and a present (a

    coupon).

    Questionnaire design

    In tbe second pbase, which took p

    approximately one week after that t

    mission, we contacted the customer

    sending another mobile message con

    ing a structured questionnaire and as

    for tbeir impressions and perception

    Push Mobiie Advertising

    Mel

    Carl Present for

    10 000 people

    Sales campaign

    Buy our Carl and win

    a sweepstake

    because 10 00 0

    people can get a

    mysterious picture

    book. Free screen

    image applications

    too...

    Please click here for

    NTT DoCoMo:

    This message is free

    of packet

    transmission charges.

    One week

    later

    Invitation to

    the survey.

    structured Questionnaire

    Explanation of

    the incentives

    for participants

    Question items

    to measure five

    constructs and

    demographics

    Figure 2 Research Design

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    HOW MOBILE DVERTISING WORKS

    adve rtisem ents, we created a promotional mobile

    o which respondents could jum p by clicking a banner

    ng Please click here for furthe r informa tion in the

    is critical in online surveys

    1 9 9 8 ; Sheehan, 2 1 ;

    The questionnaire consisted of two parts.

    k the app ropriate box to indicate their

    tic differential scales, with 3 ( cann ot

    answer/determine ) as an anchoring point.

    All surveys w ere completed by the end of

    July 2005.

    RESULTS

    Response rate

    For each type of product, 40,000 pseudo-

    campaign messages were sent to the opt-in

    users. Thus, 80,000 messages were sent in

    total. The respondents were randomly cho-

    sen from the customer database in the

    greater Tokyo Metropolitan District area,

    including three nearby prefectures. The

    click-through rate was estimated at ap-

    proximately 17 percent for the durable

    good sam ple and 13 percent for the non -

    durable good sample. Thus, approxi-

    mately 6,800 and

    5 200

    consumers ,

    respectively, actually chec ked the link.

    In total, we received 1,335 usable re-

    sponses for the audio player and 1,899 for

    the com snack, which made the response

    rate, based on the total clicks, approxi-

    mately 19.6 and 35.5 percent, respectively.

    All the surveys were completed by the

    end of July 2005.

    Respondent profile

    Table 2 summ arizes the major demo graph-

    ics of the respondents for each sample

    (durable and nondurable goods) in terms

    of gender, age, and occupation. Generally

    speaking, the respondents of both sam-

    ples exhibited very similar characteristics.

    The proportion of female respond ents out-

    weighed their male counterparts, while

    the differences across the samples were

    not statistically significant p= .423). Nei-

    ther did the occupational patterns differ

    across the samples (p = .071). However,

    for age, a chi-square test detected signifi-

    cant differences between the two brands

    {p =.004). Participants un der 19 years old

    responded more for the audio player, while

    those between 30 and 34 years old re-

    sponded more for the corn snack. Al-

    though the sample was not stratified

    according to age, it was somewhat ex-

    pected to receive a reasonable num ber

    of responses from older age groups. How-

    ever, our results were consistent with prior

    research in that people over 40 years old

    hardly replied to our survey invitations.

    Measurement assessment

    The research model was tested by struc-

    tural equation modeling (SEM), which is

    an approach to modeling complex depen-

    dencies among unobserved or hypoth-

    esized variables, such as perceptions,

    beliefs, and attitude. With SEM, any vari-

    able can serve as a predictor of any other

    variable, whether it is observed or hyp oth-

    esized. By simultaneously evaluating de-

    pendencies am ong variables, SEM extends

    traditional modeling techniques by pro-

    viding additional insight into the under-

    lying nature of relationships. Thus, this

    approach is considered to be appropriate

    to test causal relationships between the

    five constructs of brand trust, mobile ad-

    vertising trust, attitude toward brand, at-

    titude toward mobile advertising, and

    mobile campaign recall. We used AMOS

    5.0 to conduct all the analyses.

    According to the recommendations made

    by Anderson and Gerbing (1988), we first

    tested the measurement model by con-

    ducting a confirmatory factor analysis.

    This is a necessary proce dure in establish-

    ing measurement reliability and validity.

    J u n e 2 7 J O y R l lI l L O F H D U E R T IS IIIG R E S E H R C H I 7

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    HOW

    MOBILE ADVERTISING WORKS

    T A B L E

    2 -96,

    Comparative

    Fit

    Index

    (CFI) =

    haracteristicsof theRespondents( )

    increme ntal Fi t index

    I F I ) = . 9 5 ,

    and

    Mean-Square Error of Approxim

    Durable Good Nondurable Good

    (RMSEA) = .055. All indicated an ac

    W=1 , 3 3 5 ) /V = 1 , 8 9 9 ) f Test

    able fit of the model. Further, all the i

    _

    loaded onto the corresponding factors

    1^ . A-^R A Oo

    stan dar diz ed coefficients greater than

    Reliabili ty

    was

    m e a s u r e d

    via

    C

    ....i: f ^^

    56.4 57.8 ;64 (p = .423)

    bach 's a lpha, compo si te re liabihty,

    an

    Age

    erage variance extracted.

    As

    clearly

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    HOW MOBILE ADVERTISING WORKS

    3 il^ advertising to mobile campaign recall

    and

    Val id i ty

    ^^^

    ^ ' y ' '^^^*(standardizedp

    = .i4)

    Second, in the nondurable good sam-

    verage pie, two paths were found to be insigni-

    Composite Variance

    ficant:

    (1) the

    path f rom mobile a dver t is ing

    struc ts lpha Reliability Extracted trust to attitude toward brand, and (2) the

    , ,., ^^ ^ path from attitude toward mobile adver-

    rand trust .60 .90 .43 ^

    tising to mobile campaign recall. The path

    obile adyertisirig trust .73 .94 .53 from attitude toward mobile advertising

    de toward brand .71 .96 .59 to attitude toward brand exhibited the

    de toward mobile advertising .56 .85 .40 strongest effect (standardized ^ = .95)

    while the path from mobile advertising

    obile cannpaign recall .83 .98 .71 , , , . ,

    trust to attitude toward mobile advertis-

    ing was the second (standardized /3 =

    .85).

    The effects from both attitudes to

    brand: This path was negative but tude toward brand to mobile campaign mobile campaign recall were similar to

    insignificant. Among the struc- recall was also strong (standardized ji = those in the durable good sample,

    paths, the one from mobile advertis- .56). A similar strength was also observed On the basis of these findings, we con-

    rust to attitude toward mobile in the path from attitude toward mobile elude that Hypotheses HI, H2, H4, and

    strongest (standard- advertising to attitude toward brand. How- H6 were supported by our data, but Hy-

    /3 = .83) while the effect from atti- ever, the effect from attitude toward mo- potheses H3 and H5 were rejected.

    4

    Model Results

    Durable Good

    Standardized

    Nondurable Good

    Standardized

    zed Paths

    e advertising trust >

    ->

    e advertising trus t

    -^

    ude toward mobile advertisement

    ->

    ->

    >

    Attitude toward mobile

    advertisement

    Attitude toward brand

    Attitude toward brand

    Attitude toward brand

    Mobile campaign recall

    Mobile campaign recall

    Coefficient t Vaiue

    .8 3

    .32

    - . 12

    .5 2

    .1 4

    .5 6

    8.45

    5.12

    - . 9 2

    3.34

    3.53

    7.30

    X^

    =482.02

    P

    * + *

    * * *

    .360

    * * *

    * + *

    {df=57 p

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    HOW MOBILE DVERTISING WORKS

    iViedlation anaiysis

    Finally, we addressed Hypothesis H7 in

    that two independent variables, attitude

    toward mobile advertising and attitude

    toward brand, were mediated causes: i.e.,

    attitude toward mobile advertising would

    affect mobile campaign recall through at-

    titude toward advertised brand. Because

    of the structural model results in the pre-

    ceding section, this hypothesis was tested

    for the durable good only.

    In order to test this mediation, we fol-

    lowed the procedure recommended by

    Baron and Kenny (1986). Specifically, the

    following conditions were examined: (1)

    attitude toward mobile advertising has a

    positive effect on the mobile campaign

    recall in the absence of attitude toward

    brand; (2) attitude toward mobile adver-

    tising has a positive effect on attitude

    toward brand; (3) attitude toward brand

    has a positive effect on mobile campaign

    recall; and (4) the effect of attitude toward

    mobile advertising on mobile campaign

    recall is reduced in the presence of atti-

    tude toward brand. We found that all the

    mediating conditions were satisfied. There-

    fore, Hypothesis 7 was supported by the

    data.

    iVIuitigroup analysis

    A subsequent multigroup analysis de-

    tected statistical differences across the two

    models in three structural paths: (1) the

    path from brand trust to attitude toward

    brand {t = 5.18, p .001), (2) the path

    from attitude toward mobile advertising

    to attitude toward brand (f = 3.31,p

    .001),

    and (3) attitude toward brand and

    mobile campaign recall (f = -4.14, p

    .001).

    This finding also corroborates that

    the mediation effect of attitude toward

    brand is only observed in the durable

    good sample in the preceding section: Con-

    sumers evaluations on the mobile adver-

    tis ing campaigns across two product

    A mobile campaign s m em orability is likely to depe

    on perceptions of both the medium and the advertis

    content. Especially, we should note that the effects

    mobile advert ising trust on att i tude toward mob

    advert ising were stronger than those of oth

    relationships.

    types were very dissimilar in terms of the

    overall results in the structural paths.

    LliVIITATiONS

    To make our findings more objective, we

    must acknowledge a few limitations. First,

    although i-mode has been exported to

    many countries, the data transmission en-

    vironment in Japan and the psychological

    readiness of people there to accept mobile

    advertising may not be directly applica-

    ble to other countries. Any international

    generalization of the findings must be

    treated with caution.

    Second, our response rates based on

    the total clicks were m odest, and it should

    be taken into account that those respon-

    dents represent only a small portion of

    total mobile advertising subscribers. There-

    fore, any future extension may need to

    combine both offline and online survey

    methods to reach a core portion of mobile

    advertising subscribers and to better un-

    derstand the nature and extent of any

    response bias involved.

    DiSCUSSiON

    Theoreticai impiications

    This study provides useful and important

    implications for m-commerce researchers

    in several ways. First, it provides em-

    pirical evidence that not only attitude

    toward brand but also attitude toward

    mobile advertising affect the level of

    bile campaign recall. That is, a m

    cam paign s m emorability is likely to

    pend on perceptions of both the med

    and the advertised content. Especially

    should note that the effects of mobil

    vertising trust on attitude toward m

    advertising were stronger than thos

    other relationships.

    Second, there are notable differenc

    the strength of the paths across the p

    uct types (i.e., durable and nondu

    goods). In particular, a careful obs

    tion of the standardized coefficient

    veals that the path from attitude to

    brand to mobile campaign recall

    notably and statistically stronger for

    durable good sample than for the

    durable good sample. Furthermore,

    tude toward brand is a mediating var

    in linking attitude toward mobile ad

    tising and mobile campaign recall

    in the durable good sample. This im

    that, as far as the durable good is

    cerned, mobile campaign recall seem

    rely primarily on the strength of the b

    to be effective.

    Third, our data indicate that mobil

    vertising trust may negatively influ

    attitude toward brand, although this

    was statistically insignificant in both

    ples.

    This result somewhat corrobo

    Tsang, H o, and Liang s (2004) stud

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    HOW MOBILE ADVERTISING WORKS

    Taiwan (KG Telecommunications), and the

    Netherlands (KPN Mobile NB) in 2002; in

    Italy (WIND Telecomunicazioni) and Spain

    (Telefonica Moviles) in

    2003;

    and in Aus-

    tralia (Telstra Corporation) and Greece

    (COSMOTE) in 2004 (NTT DoCoMo, 2003a,

    2003b, 2004a, 2004b). By the end of June

    2004, i-mode users outside Japan ex-

    ceeded 3 million (NTT DoCoMo, 2004c).

    European users are said to spend an in-

    cremental 6 to 10 euros ($8 to $13) a

    month on i-mode services (Greenwood,

    2004). As 3G-enabled mobile handsets pro-

    liferate worldwide, many point out that

    i-mode potentially may be one of the most

    influential business models in mobile in-

    ternet technology (Okazaki, 2006; Sadeh,

    2002; Scuka, 2003).

    S HINT RO O K Z K I

    Ph.D..

    U niversidad Autonoma

    de

    Madrid)is anassociate professorofmarketingat the

    CoilegeofEconomics and Business Administration,

    Uhiversidad Aut6noma

    deMadrid, Spain.His

    research

    interests focus ontheareasofcross-cultural issues

    in international advertising, electronic and mobile

    commerce,and knowledge diffusioninsocialnet

    works.

    Hisworkhasappearedinthe

    Jourrtal of

    Adver-

    tisir g.

    the

    tnternatior al Journa l of Advertisirig,the

    Journal

    of

    International Marketing, Information

    Man-

    agement,t he

    European JournalofMarketing,

    Inter-

    national Marketing

    Review,

    Internet

    Research,the

    JournalofMarketing Communications,

    the

    Journal of

    International Consumer Marketir\g, Computersin

    Human

    Behavior,

    Electronic Markets,

    among others.

    Dr. Okazaki serves

    on

    several editorial b oards.

    Includ-

    ing the

    Journal of Advertising,

    the

    International Journal

    of Advertising,

    the

    JournalofPublic Policy Marketing,

    Internet Research, the JournalofElectronic Commerce

    Research,

    t he

    Journal

    of

    Website Promotion,

    and

    Inno-

    vative Marketing.

    KIHIRO K TSUKUR is adeputy directorat theGroup

    Companies Auditors O ffice

    of

    Dentsu Inc.,

    Japan.He

    isarecognized authorityin thefieldsofaccount

    plan-

    ning,

    branding, and m edia strategy, and

    has

    more

    than30yearsofexperiencein theadvertising indus-

    try.

    Hisarticles have appearedinmany academicand

    professionai publications.HeholdsaB.A. from

    Waseda University,

    Japan.

    M M O R U NiSHiYAiMAis anassociate account supervi-

    soratDentsu Inc.,Japan.He hasbeen engagedin

    various account planning activities.

    He

    holds

    a B.A.

    fromtheUniversityofOsaka andanM.A. fromthe

    University

    ofTokyo, Japan.

    ACKNOWLEDGMENTS

    This research

    was

    funded

    by a

    grant from

    the

    Japan Academy

    of

    Advertising,

    The

    authors

    appreciatively acknowledge technical support

    provided

    by D2

    Communications

    Inc. for the

    data collection. They also thank

    the

    anony-

    mous reviewers

    for

    their very helpful, insight-

    ful,

    and constructive commentson theearlier

    versions

    of

    this article. Please address

    all cor-

    respondence

    to

    Shintaro O kazaki.

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