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CREATING AN EFFECTIVE PATHWAYS FOR MOBILE ADVERTISING IN TERTIARY EDUCATION
MOHD NAZRI MOHD NOOR
Faculty of Plantation & Agrotechnology Universiti Teknologi MARA Melaka, Jasin Campus
77300, Merlimau, Melaka MALAYSIA
SYED MAZLAN SYED MAT DOM Faculty of Business Management
Universiti Teknologi MARA Melaka, Jasin Campus 77300, Merlimau, Melaka
MALAYSIA [email protected]
Abstract: - The recent development of a global telecommunication technology provides a new mechanism for universities to share abundance of information with their current and prospective students. This modern electronic advertising concept is commercially known as mobile advertising. Despite its vast opportunities as claimed by many quarters, creating an effective pathway for mobile advertising in tertiary education is still under research. A careful and wise understanding about this issue is important to ensure that mobile advertising can be an effective communication tool in the future. Dimensions such as relative advantage, complexity and compatibility became the predictors for this research. A simple random sampling technique was applied to obtain responses from the university students throughout Malaysia. It resulted in 385 usable responses. The analysis of Structural Equation Modeling (SEM) confirmed that the proposed conceptual model fits well within the context of the university and students’ requirement. The SEM results demonstrated significant relationships between the proposed predictors and the university students’ opinion about an effective mobile advertising. The research reveals several implications for theory and practice relating to the future usage of mobile advertising in tertiary education. Key-Words: - Effective environment for mobile advertising, tertiary education, relative advantage, complexity, compatibility. 1 Introduction The Malaysian education environment is becoming more competitive. In order to remain competitive, many universities strive to take full advantage of their communication strategies. Advertising becomes one of the most popular tools for them to provide information about academic and non-academic matters to the students. Thus far, a modern and creative advertising strategy plays an important role to nurture a good relationship, stimulating the awareness and shaping the attitude of the recipients (Kotler & Armstrong, 2001; Shimp, 2000). Advertising is not limited to an ordinary business but also practiced by many non-profit organizations, public agencies and professionals. For years, advertising has been regarded as a fine technique to
inform, to remind and to persuade people about products and services. Advertising add value to many organizations and commonly applied as a vehicle to execute promotional campaigns. Within the context of business, a company may lose its brand equity, reputation and perhaps, its market share without advertising (Kotler, 2003; McDaniel, Lamb, & Hair, 2006). In an effort to serve and win the people’s heart, various types of new marketing approach exist in the marketplace. Generally, traditional advertising still play its role as a popular advertising technique applied by most of the organizations around the world (Kotler, 2003; NST, 2009). Many promotional activities provide information about products and services through newspapers, television, radio, magazines and billboards either in a standard format or creative
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messages. However, as the educational environment is currently becoming more competitive, more and more universities orchestrating a closer harmony between their advertisement messages and mobile communication technology. This new electronic advertising concept is commercially known as mobile advertising (Lane, 2010b).
As pointed out earlier, the recent development of a global telecommunication technology provides a mechanism for universities to disseminate their information in a more creative way. It offers an alternative approach to reach the targeted recipients more effective and build a stronger and more personal relationship with them (Altuna & Konuk, 2009; Komulainen, Mainela, Tahtinen, & Ulkuniemi, 2007). This is certainly true because according to the current trend, 91 percent of the people have their mobile phones at arm’s reach 24x7 (Meeker, Joseph, & Ji, 2007). Studies also revealed that, it takes an average of 26 hours for a person to notice and report a lost wallet, but once he lost his mobile phone he will immediately notice and lodge a report within 68 minutes (Gantz, 2010). Realizing its great potential, many organizations in developed countries are currently taking into account the advantage of mobile advertising to disseminate information about opportunities and offerings while at the same time aiming for higher target (Frolick & Chen, 2004; Laszlo, 2009).
According to the white paper published by Smaato in 2010, the mobile advertising industry in developed countries extend its remarkable take off from 2011 onwards (Lane, 2010c). Based on its current trend, the cumulative revenue for five European countries namely France, Germany, Italy, Spain and UK are estimated to achieve US$$ 1.293 billion by 2015. These big five countries will also experience an increment in revenue by 950 percent between 2010 and 2015 with the compound annual growth rate of 48 percent. Among these countries, UK continues to hold the position as the largest and the most advanced market. On average, each company in UK spends around US$ 15,000 to US$ 20,000 per annum on the campaign. Meanwhile, other organizations resided in France, Germany, Italy, and Spain spends approximately US$ 10,000 to US$ 15,000 every year. The cumulative total revenue for the big five country is estimated at US$ 122.55 million. By the end of the year 2011, the European’s mobile advertising revenues stood at US$ 212 million (Lane, 2010c).
Based on the recent development, Japan and USA are the major users of mobile advertising. The total expenditures for organizations in both
countries are US$ 270 million and US$ 180 million respectively (Lane, 2010a, 2010b).
As the biggest market in the world, the mobile advertising expenditure in Japan is around US$ 1 billion every year. On the other hand, USA is blessed with its 'mobile' population exceeding 300 million. The market is currently worth at US$ 797.6 million and expected to rise up to US$ 5.04 billion by the year 2015 (Lane, 2010b). In 2010, it was reported that nearly one-sixth or 49 million USA mobile phone subscribers engaged with mobile advertising. From that figure, 12.9 million subscribers act in response towards the advertisement (Lane, 2010b). Due to that reason, global brands such as Nike, Adidas, Procter & Gamble, Microsoft, Coca-Cola, Walt Disney, Sony Pictures, and McDonalds have taken necessary steps to participate in this industry. Two to three percent will be allocated each year to promote products and services through mobile advertising (Altuna & Konuk, 2009; Lane, 2010b; Merisavo et al., 2007; Vatanparast & Asil, 2007).
Within the context of Malaysia, the Malaysian Communications and Multimedia Commission (MCMC) report in 2010 disclosed that the penetration rate of mobile phone was at 108.8 percent (Eng & Masri, 2010). The numbers of mobile phone subscriptions for post-paid were 6.5 million while subscriptions for prepaid were 18.6 million. Majority of them are the younger generation and currently pursuing their studies in the academic institutions. In the second quarter of 2010, the total numbers of SMS activities were 89.4 million thus indicating a bright potential for mobile advertising activities (Eng & Masri, 2010). With the phenomenal growth rate of digital media, the Association of Accredited Advertising Agents Malaysia (4As) presumed that more organization will move into this industry soon because this approach offers a more reasonable platform to reach targeted audience effectively (NST, 2009). This statement is supported by the Universal McCann Malaysia (Rozana, 2009) which claimed that, Malaysia ranked fifth out of twenty one concerning consumers’ receptivity in the mobile advertising emerging market. Even though the industry is still in its infancy stage (Adham, Said, Ramlee, & Hannien, 2008), the total revenue is projected to increase from RM 10.04 million in 2008 to RM 175.5 million by the year 2012 (MCMC, 2010).
Rationally, with such a great number of mobile phone users in Malaysia, it is easy to utilize the mobile advertising activities at anytime. Unfortunately, the scenario appears to be in a reverse direction. In 2009, it was reported that the
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public reaction towards mobile advertising in some way not as anticipated by many quarters (MCMC, 2009). Despite various mobile advertising campaigns, MCMC continues to receive various types of complaints from recipients such as the unsolicited advertisement messages, deceptive advertisements, unreasonable charge and difficulties to terminate the subscribed content (MCMC, 2009). Even though the number was relatively small, those complaints must be well thought-out to rectify the translucent potential of mobile advertising in Malaysia.
Another noticeable issue, while the number of mobile advertising grows exponentially, only 14 percent of the mobile phone subscribers give a special attention to the advertisement (Adham et al., 2008). Though mobile advertising has been regarded as the fifth most influential advertising medium, it seems that the effect of mobile advertising has been over-estimated (Wong & Tang, 2008). For instance, the Malaysian consumers’ response towards mySMS information service was quite stumpy. This is one of the initiatives inspired by the Malaysian Administrative Modernization and Management Planning Unit (MAMPU) for the public to obtain information about education, social, business, health services, commodities, security, government agencies and many more. Certain fees will be charged to a person who acquire the service via mobile phone (MAMPU, 2009). However, in 2010 and 2011, only 185 and 190 transactions were recorded by the agency (DOSM, 2011). In some way, it reflects the lackluster response from the consumers.
Based on this phenomenon, again the central issue of the low responses by the public reflects the effectiveness of mobile advertising. Despite remarkable opportunities claimed by many quarters (Adham et al., 2008; Rozana, 2009), the determinants of an effective mobile advertising must be comprehensively examined. A wise understanding on this issue is essential to ensure an effective use of this medium in the future. Even though studies related to the publics’ opinion about mobile advertising had been done in developed countries, findings derived from those countries may not necessarily the same with developing countries. 2 Development of Conceptual Model An innovation such as mobile advertising always perceived by many people as the engine for the economic growth (Adham et al., 2008; Chung et al., 2009; MCMC, 2010; PEMANDU, 2010). However, to make sure that such innovation acquire the
economic significance, it has to be brought into the economy, followed by gradual acceptance from the public (Mukoyama, 2003). Rogers (1962) suggested that, an innovation should be communicated through appropriate channels over time among members of a social system. Like innovation, diffusion is not a trivial process and it does take a long period of time. No new innovations have an economic impact until it becomes widespread in the economy (Mukoyama, 2003). The perception towards mobile advertising has emerged as an interesting topic to explore. For example, a study by Tsang, et al. (2004) found that there was a direct relationship between consumers’ perception and their future behavior. Therefore, a theory and model related to the consumer behavior and technology acceptance such as The Theory of Planned Behavior (Ajzen, 1991) and The Diffusion and Innovation Theory (Rogers, 2003) were drawn to obtain the framework. Figure 1 shows the conceptual model to be tested within the context of Malaysia.
Figure 1. Proposed Conceptual Model 2.1 Relative Advantage It is common that many people obtain the information needed by a conventional method (Adham et al., 2008; Chowdhury, Parvin, Weitenberner, & Becker, 2006). However, they also look for an innovative channel that is better than the current practice to save their time and cost (Blackwell, Miniard, & Engel, 2001; McDaniel et al., 2006; Rogers, 2003). Traditional advertising always incorporate attractive elements to increase the effectiveness of an advertisement (Johar & Sirgy, 1991). Recently, many organizations offer a number of promotions or benefits such as mobile discount coupon and redemption points to encourage recipients to read the advertisements (Hanley & Becker, 2008; Hristova & O'Hare, 2004; Leppaniemi & Karjaluoto, 2005; Mennecke & Strader, 2003; Muk & Babin, 2006; Ververidis & Polyzos, 2002). Besides that, there are also a location-based services which add more value to mobile advertising (Gopal & Tripathi, 2006; Mennecke & Strader, 2003).
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A study by Rogers (2003) found that relative advantage is positively correlated to the rate of response to a new technology. The higher the element of relative advantage as compared to the existing ways and means of obtaining the information, the higher will be the velocity of adoption among the users (Rogers, 2003). Consistent with the previous findings, Muk (2007) and Muk and Babin (2006) also found that consumers’ belief concerning relative advantages will generate a positive effect on their attitude towards mobile advertising. According to Hanley and Becker (2008) and Milne and Gordon (1993), rewards and other incentives play a vital role as a key motivating factor for the acceptance of a cell phone advertisement. Mobile communication technology which offers greater flexibility in reciprocal interactions, alliances and sharing of information also identified as among the advantages that can be seen in mobile advertising hence positively shaping the attitude of recipients (Jun & Lee, 2007; Sheng, Nah, & Siau, 2005). In fact, previous marketing literatures suggested that relative advantage, if can be traced by the targeted audience will be able to make promotional activities become more effective. (Shi, Cheung, & Prendergast, 2005). Based on this scenario, it is therefore hypothesized that: H1: Relative advantage elements in mobile advertisement will enhance the effectiveness of mobile advertising. 2.2 Complexity The use of new communication medium involves consumers’ cognitive effort (Yang, 2007; Zhang & Mao, 2008). Bandura (2001) once reiterated that individuals formed their self-perception based on the ability to understand the information. The self-perception later influences their attitude (Bandura, 2001; Moreau, Lehmann, & Markman, 2001). Therefore, new communication medium must not be difficult to use and understand (Rogers, 2003). According to Blackwell (2001), the more complex the medium and message, the more difficult it will be to gain acceptance. The issue of complexity turned out to be a greatest concern among recipients due to the rapid proliferation of mobile phones (Hung, Ku, & Chang, 2003). Mobile advertisers must create innovative communication messages that are uncomplicated, easy to use, and understandable (Carroll, Barnes, Scornavacca, & Fletcher, 2007; Kim, Heo, & Chan-Olmsted, 2010; Meuter, Bitner, Ostrom, & Brown, 2005; Wei, Marthandan, Chong, Ooi, & Arumugam, 2009;
Zhang & Mao, 2008). Simple instruction affect recipients’ behavior because the more complex the instruction, the less likelihoods the new medium to succeed (Blackwell et al., 2001; Komulainen et al., 2007; Kumar, 1996; Meuter, Ostrom, Bitner, & Roundtree, 2003) hence making consumers less interested to participate and take further action (Basheer & Ibrahim, 2010; Drossos, Giaglis, Lekakos, Kokkinaki, & Stavraki, 2007).
Consumers usually portray a negative attitude concerning the complexity of message and transactions via mobile advertising (Beneke, Cumming, Stevens, & Versfeld, 2010; Muk, 2007; Muk & Babin, 2006). The result is comparable with a study conducted by Vatanparast and Asil (2007) which disclosed that constraints related to device interface, interactivity, intelligence, process and policy portrayed a negative relationship to the acceptance of mobile advertising. Conversely, consumers depicted a positive attitude towards mobile services which they perceived to be uncomplicated and effortless (Leppaniemi & Karjaluoto, 2005; Meuter et al., 2005; Nysveen, Pedersen, & Thorbjornsen, 2005). Therefore, this research assumed that complexity has a negative effect on the effectiveness of mobile advertising. As a consequence, the hypothesis is as follows: H2: Complexity has a negative influence on the effectiveness of mobile advertising. 2.3 Compatibility A person always look forward to an innovation that is well-suited with his present values, knowledge, previous experience, and current trend (McDaniel et al., 2006; Rogers, 1962, 1995, 2003). The greater the compatibility of an innovation with a person’s lifestyle, the greater will be his attitude towards the innovation (Rogers & Shoemaker, 1971; Shimp, 2000). Innovation must be compatible with a person’s current condition, less risky, more meaningful, and require less effort. Ones also refuse to accept an innovation if it is incompatible with their values and norms (Muk & Babin, 2006; Rogers, 1995). Concerning previous studies on technology acceptance and adoption, compatibility has been identified as an important dimension to predict many behavioral intentions (Hsu, Lu, & Hsu, 2007; Khan & Allil, 2010; Kleijnen, de Ruyter, & Wetsels, 2004; Teo & Pok, 2003). Perception about compatibility of mobile advertising with daily life produced a positive effect on the attitude (Hsu et al., 2007; Khan & Allil, 2010; Kleijnen et al., 2004; Muk & Babin, 2006).
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Referring back on literatures related to computers, many studies revealed that consumer’s decisions are based on the compatibility of a new device with their existing system (Blackwell et al., 2001). Another study on the adoption of the internet banking disclosed that, compatibility plays an important role as the main construct that influence the adoption (Tan & Teo, 2000). There was also evidence from the past empirical study to support the fact that compatibility has a positive influence on the adoption of an innovation. Muk (2007), Muk and Babin (2006) and Venkatesh et al. (2003) found that there was a positive relationship between both dimensions. The extent to which the technology fit the users experience with their need of technology is the main factor that may determines the user happiness of using such a technology (Pu & Mengxiang, 2013) and if this technology are able to deliver series of messages that is compatible for the current era of modernization, the user will feel more satisfied. Nowadays, people are looking for greater accessibility in which those with hearing impairment, poor quality or static equipment may revert to mobile advertising. The more advancing features of messages is their compatibility in providing a briefer and more efficient exchanges of information (Wilson & Liu, 2011 ). Therefore, it can be predicted that the dimension of compatibility has a positive relationship with the effectiveness of mobile advertising. Based on that reason, the next hypothesis is as follows: H3: Compatibility has a positive effect on the effectiveness of mobile advertising. 3 Research Methodology This study is based on the data from written surveys administered in 2013. The centre of attention is given to the university students in Malaysia. It is common that students usually have an extensive exposure towards mobile communication technology (MCMC, 2009). This population may offer better findings since they are the future generation who will shape the future direction of a new media. (Ashraf & Kamal, 2010; Beneke et al., 2010; Hanley & Becker, 2008; Radder, Pietersen, Wang, & Han, 2010). To make the data more meaningful, this research includes both prepaid and post-paid mobile phone users. 3.1 Survey Development A total of 385 responses were obtained during the months of January to June 2013 through a simple
random sampling approach. The respondent characteristics are as follows: 59 percent were male and 41 percent were female; respondents ranged in age from 20 to 60 years old, although a majority - 58.4 percent of respondents - were between 20-40 years old; 62.1 percent were the diploma and degree students, while 37.9 percent were masters and PhD students. 3.2 Analysis Overall, there are four constructs representing the independent and dependent variables portrayed in Figure 1. To validate the measures of the constructs, a series of Confirmatory Factor Analysis (CFA) using AMOS 20.0 was conducted to test the dimensionality, reliability and convergent validity of the measured items. CFA for the individual constructs were conducted at the initial stage – one measurement model per construct. In stage two, all constructs were simultaneously tested to obtain the overall measurement model. Figure 2 and Table 2 shows the results of the overall measurement model containing factors for all constructs. The fit indices collectively show adequate fit of the measurement model with the data (Hair, Black, Babin, & Anderson, 2010). In stage three, the final constructs were then simultaneously tested to obtain the structural model.
Figure 2. Structural Model Concerning Determinants of an Effective Mobile Advertising
Table 2. Confirmatory Factor Analysis
Measured Items χ2 P AVE α Standardized Loadings
Relative Advantage
9.34 0.0051 0.75 0.96
Mobile advertising offer many information about university program
0.89
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Mobile advertising is convenience 0.83
Mobile advertising keep the students update with current information
0.88
Mobile advertising offer incentives to the students 0.87
Complexity 9.32 0.0055 0.78 0.96
Mobile advertising acquire too much time to understand the message
0.89
Mobile advertising acquire too much time to accomplish each transaction
0.80
Compatibility 9.55 0.0058 0.77 0.94
Mobile advertising fits well with the way students like to obtain information about university
0.86
Mobile advertising offer adequate facilities and opportunities for the students to adopt it as part of their living style
0.89
Notes: 1. Measurement model fit indices: χ2 = 165.32, df = 130, RMSEA
= 0.063, GFI = 0.94; IFI = 0.93; NFI = 0.96; TLI = 0.95; CFI = 0.95; AGFI = 0.93 (Hair, Black, Babin, & Anderson, 2010; Pallant, 2010).
2. This table reports the results of CFA after the deletions of some measured items.
3. χ2 = Chi-Square; p = Significance Level (p < 0.01); α = Cronbach’s Alpha; AVE = Average Variance Extracted (Hair, et al., 2010).
All path coefficients from latent constructs to their corresponding measured indicators were appropriately high (standardized loadings ranging from 0.71 to 0.91) and significant. The reliability coefficients and Cronbach’s Alpha all exceeded the recommended cut-off value of 0.60 (Nunnally, 1978; Pallant, 2010), showing evidence of acceptable reliability among the remaining items for all constructs. The Average Variance Extracted for all constructs were higher than the cut-off level of 0.50 suggesting an adequate convergent validity (Hair et al., 2010). 4 Results The Structural Equation Modeling (SEM) of the conceptual model was tested using AMOS 20.0. The fit indices show an adequate fit between the conceptual model and the data obtained from the survey. Based on the values depicted in Table 3, the index of RMSEA, GFI, IFI, NFI, TLI, CFI and AGFI provide a sufficient amount of evidence to support the model (Hair et al., 2010). The RMSEA was lower than the cut-off value of 0.08, suggesting a good model fit (Hair et al., 2010). The incremental fit indices of NFI, TLI, CFI and IFI were reported as
above than 0.90 (Hair et al., 2010; Ho, 2006; Joreskog & Sorbom, 1988; Kline, 1998) hence providing further support to the model. In technical terms, the results indicate that there was no problem with the structural model. The results in Table 3 also show that all hypotheses received significant support based on the given data.
Table 3. Results of the Model Using the Structural Equation Modeling Approach
Hypotheses Effect Results Coef. &
Corr.
Strength Magnitu
de
H1 Relative Advantage → Effective Mobile Advertising
+ve Supported 0.721 Large
H2 Complexity → Effective Mobile Advertising
-ve Supported -0.418 Medium
H3 Compatibility → Effective Mobile Advertising
+ve Supported 0.673 Large
Notes: 1. Structural model fit indices: χ2 = 172.54, df = 165, RMSEA =
0.067, GFI = 0.95; IFI = 0.94; NFI = 0.96; TLI = 0.95; CFI = 0.96; AGFI = 0.94 (Hair, Black, Babin, & Anderson, 2010; Pallant, 2010).
This study indicates that all proposed determinants have a significant influence on the effectiveness of mobile advertising. Taken together, the findings support past research by illustrating the importance of relative advantage, complexity and compatibility within the context of Malaysia. The dimension of relative advantage was found to produce a large positive relationship (r=0.721) with the effectiveness of mobile advertising. The results indirectly confirmed that, this element has a significant effect on the students’ perception. Undeniably, the implementation of special rewards and benefits such as points, free gifts and location-based service in mobile advertising will enhance its effectiveness and create a significant impact on the consumers’ attitude towards mobile advertising (Gopal & Tripathi, 2006; Hanley & Becker, 2008; Leppaniemi & Karjaluoto, 2005). The students are getting wiser and have more opportunity to evaluate and compare the advantages presented in a particular mobile advertisement. The dimension of complexity was found to have a negative relationship (r=-0.418) with the
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effectiveness of mobile advertising. The result was comparable to a study conducted by Vatanparast and Asil (2007) which disclosed that constraints related to the mobile communication technology portrayed a negative relationship on the consumers’ attitude towards mobile advertising. Findings from this research revealed that, the strength of the negative magnitude was ‘medium’. Perhaps, the emergence of user friendly Windows-based phones, Feature-based phones, Symbian-based phones and Android-based phone in this country change the students’ perception about the issue of complexity. The dimension of compatibility was found to have a large positive effect (r=0.673) on the effectiveness of mobile advertising. It was discovered that, the emergence of mobile advertising is compatible with the students’ current condition, more meaningful and suitable with their lifestyle. The result probably due to the increasing number of high quality infrastructure, modern lifestyles and rapid exposure to the communication technology (Adham et al., 2008; Eng & Masri, 2010). Based on the views expressed by the students, new communication media should be in tandem with their current lifestyle. 5 Theoretical Implication The findings from this study extend the current mobile advertising literatures in two areas. Firstly, the findings reported here illustrate the determinants factors including relative advantage, complexity and compatibility related to the effectiveness of mobile advertising within the context of Malaysia. Secondly, the proposed model and instruments used in this study have been designed, measured and validated from the perspective of students in Malaysian universities. 6 Conclusion This study has advanced knowledge by addressing the key determinants of effective pathways for mobile advertising. The study examined the issue from a multi-dimensional perspective through the use of an integrative structural model. Based on the abstract ideas derived from the Theory of Planned Behavior (TPB) and the Diffusion of Innovation Theory, it is believed that the research model is more realistic and reliable within the context of Malaysia. Data for this study were collected throughout Malaysia from a different range of age and gender. The findings provide useful guidelines for the public and private universities to evaluate their current mobile advertising practices while at the same time
discovering areas that need to be changed for profitable returns in mobile advertising investment. In addition to that, this study also encourages other organizations in Malaysia to utilize the great potential of mobile advertising. In this hypercompetitive world, education is part of business. Therefore, universities should react fast against the rapid changing of business environment. Universities must grab the opportunities and take the challenge to compliment their traditional advertising with mobile advertising. References: [1] Adham, K.A., Said, M.F., Ramlee, S., &
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