mobile marketing full new

Faculty of Business and Law Final Year Project

CHAPTER 1: INTRODUCTION

1.1. Overview

Nowadays mobile phone plays the key role in communication in many countries

including Malaysia. The rapid growth of the Malaysia Mobile industry has largely been

due to the development of a simple and highly popular mode of mobile communication.

The SMS (Short Messaging System) Statistics from Communication & Multimedia

Malaysia had indicated that over 3,406 million SMS have been sent in the first period of

year 2005. It seems like the fifth factor that everyone has to have it. Besides the

convenience of usage in anywhere or at any time, the user can also listen to music, play

games or surf the internet. Another increasingly popular function is the message services

in forms of short message service (SMS) and multi-media service (MMS).

Technology developments have created new marketing communication channels

or media such as email, SMS (Short Messaging Service) and MMS (Multimedia

Messaging Service). These digital media are considered to potentially improve the

possibilities to reach consumers by allowing personalization of the content and context of

the message (Forrester Report 2001). Simultaneously there is a potential downside to the

development of new digital channels. In a Forrester report companies using SMS

expressed fear for invasion of consumer privacy (80%) and negative consumer reaction

(60%) as disadvantages of the media (Forrester Report 2001, p. 3). A crucial question is

thus whether there are obstacles for the marketer to use mobile media to its potential. Are

customers more reluctant to receive marketing information through mobile media than

through traditional media or is it the other way around?

Therefore, the purpose of this study is to investigate factors that influence

consumers’ response to SMS and MMS ads in Malaysia. The factors considered are

brand familiarity, relevant on advertisement, brand loyalty, trust and attitude toward SMS

and MMS.

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1.2. Research background

Cell phone has been one of the important devices for all human kind. It has a huge

impact to everyone’s life. This innovation creates marketing opportunities and

challenges. Through mobile, it enable transcend traditional communication and support

one-to one, many-to-many and mass communication. Phones and personal digital

assistants increase the availability, frequency and speed of communication. Yet the

technology associated with these devices, which let marketers personally communicate

with consumers, continues to evolve.

Technological innovations have enabled cell phone users to utilize them as more

than a communication device, attracting advertisers to provide finely targeted and time

sensitive information to their target audience. Mobile advertising is one of the most

unique developments in the mobile sphere since mobile messaging gained mass

consumer adoption and has emerged as one of the most important and effective

advertising media in the region.

Because of its popularity; marketers now discover a chance to advertise their

products via SMS/MMS. The marketers hope that this new method, also known as

wireless advertisement through SMS and MMS, will effectively and efficiently promote

their products or services. With the emergence of high speed wireless network

technologies and the increasing market penetration of mobile phones the global

advertising industry’s interest in using this medium as a means of marketing

communication is rising. However, in spite of the increasing number of companies

investing in mobile marketing campaigns, there is, as yet, little academic research on this

topic and the nature and implications of this channel are not yet understood fully.

Therefore, the main purpose of the paper is to explore consumers’ responsiveness

to mobile marketing communication compared to email as a marketing media. With

mobile marketing we refer to marketing communication where a consumer can be

reached anywhere anytime but specifically in this study to SMS and MMS. From the

marketer’s perspective it would be crucial to know which consumers are open and

responsive to such marketing communication. From an academic perspective the issue of

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responsiveness to a media is interesting in itself. It is assumed that the media influences

the effect of the marketing communication in addition to the marketing message. In this

study we are applying a traditional communication perspective in the sense that explore

responsiveness to marketer initiated (push) communication as a reaction to this activity.

Thus, in this study we do not imply interactivity within a customer relationship or

customer initiated (pull) communication.

In conclusion, understanding the factors that effects customer’s responsiveness is

very important to ensure that target market is carefully selected to make it more cost-

effective for retailers and large companies to retain their loyalty customers.

1.2.1 Industry background

The rapid growth of the Malaysia Mobile industry has largely been due to the

development of a simple and highly popular mode of mobile communication. The mobile

business has the potential to grow to one of the most important industries in the world.

Especially in Finland the potential is large owing to the fact that our country has been the

pioneer in this field from the beginning and the Finns are one of the most enthusiastic

mobile phone users. So far there has not been lot of research concerning consumer

behavior in mobile service context. The ones that are available concerns mainly

traditional or the kind services that exists in mobile phone as basic default, like SMS

(Grinter & Eldridge, 2001; Pedersen, 2002) and normal usage of mobile devices

(Rautianen & Kaseniemi, 2000). From a theoretical perspective, this research will

provide new information about consumer behavior in a rapidly growing mobile

commerce area. For marketers, an understanding of consumer behavior is increasingly

recognized as a key factor in success, and it can lead to a competitive advantage for those

who can use this information in their strategic and operational marketing (e.g. Peter and

Olson, 1990).

Phones and personal digital assistants increase the availability, frequency and

speed of communication. Yet the technology associated with these devices, which let

marketers personally communicate with consumers, continues to evolve. The most

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popular mobile application, referred to as text messaging or Short Message Service

(SMS). Studies on this new advertising medium indicate that mobile advertising

campaigns can generate responses that are as high as 40%, compared with a 3% response

rate through direct mail and 1% with internet banner ads (Jelassi & Enders 2004). The

high diffusion of SMS facilitates analyzing usage behavior and hints at the commercial

potential of future communication services. Multimedia Messaging Services (MMS), for

example, will build on the success of SMS but allow for richer content based on similar

asynchronous, digital and interactive communication. Studying interactive mobile

services such as SMS and MMS suggests drawing upon theories in marketing, consumer

behavior, psychology and adoption to investigate their organizational and personal use.

Mobile advertising, which is an area of mobile commerce, is a form of advertising

that targets users of handheld wireless devices such as mobile phones and Personal

Digital Assistants (PDAs). In Comparison with traditional advertising, the main

advantage of mobile advertising is that it can reach the target customers anywhere

anytime. In order to promote the selling of products or services, all the activities required

to communicate with the customers are transferred through mobile devices. Combining

with the customer’s user profile and context situation, advertising companies can provide

the target customers exactly the advertisement information they desire, not just “spam”

them with advertisements they are not interested in. The devices on which these value-

added services are pushed onto or downloaded to, operate in an environment that imposes

constrains such as: wireless network environments are unreliable and bandwidth is low,

and the very mobility of devices increases the risk that a connection will be lost or

degraded. More importantly, mobile services must work within the daunting constraints

of the devices themselves, which include: memory, processing power, input capabilities,

and size of display. It is therefore important that mobile advertisements take into account

the user’s context, optimize resource usage, and minimize input effort imposed on the

user. Mobile media, for example, transcend traditional communication and support one-to

one, many-to-many and mass communication.

When looking at marketing communication from a consumer perspective the issue

of media effectiveness is challenging. The increased number of media has led to a harder

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competition for consumers’ attention. Attention and time has increasingly become scarce

resources for the consumers in the information age. It has been argued that the

information age empowers consumers and creates immediate 24-hour access, which

changes consumers’ behavior (Seybold 2001). Many consumers have attitudes;

aspirations and purchasing patterns that are different compared to what companies have

been used to. Today's consumers are claimed to be independent, individualistic, involved

and informed, (Lewis and Bridger 2000) which makes it harder than ever to conduct

interruption-based communication. In traditional research concerning advertising and

media effects the consumer’s perspective has been largely overlooked.

Traditional marketing communication planning has focused on the marketer’s

objectives of reaching relevant consumers (Stewart & Pavlou 2002). An open question is,

however, what reaching means when considering the empowered and active consumer. In

permission marketing context it has been argued that if the consumers have agreed to pay

attention it would be easier to reach them about offerings (Godin 1999). A key issue is

the responsiveness of the consumer to marketing communication. Responsiveness depicts

the consumer’s willingness to receive and respond to marketing communication and can

be viewed as a function of the content and the context of the message. Any channel can

and should be evaluated according to consumer responsiveness in order to understand

communication effects and effectiveness. Consumer responsiveness is potentially more

effective than permission because it assumes consumer attention rather than merely

permission.

By knowing consumers’ adoption capability and attitudes it helps marketers to

understand ones consumers and the expectations they have. By developing services,

consumers will approve new technology and start to use it more easily. New strategies

have to be developed for changing perceptions and in that way confirm their mobile

service usage. As Matthing et al. (2004) state new service development relies on the

complex task of understanding and anticipating latent customer needs. It is presumable,

that findings of this will have significant implications and generate insights directly

applicable for manufacturers and marketers of consumer mobile services. A key task for

m-business is to find out who the actual and potential customers are (Turban et al.1999)

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and how to make them interest on mobile services. Also the services needed had to be of

developers concern. Consumer behavior towards mobile services has not yet been the

subject of much research (Anckar et al. 2002; Pedersen et al. 2002; Constantiou, 2003) in

Europe. Anckar (2002) pointed out that “the main reason value-adding elements in m-

commerce, the consumers’ actual reasons – the primary drivers for adopting m-commerce

remain unclear”.

1.3. Problem Statement

The marketers face escalating hurdles to attract and meet the customer’s need in

the current world of globalization. People are getting more intelligent with the help of

technology gadget nowadays. To attract customer’s awareness no longer linger only with

online advertising but also via SMS and MMS.

With technologically advanced mobile phone services in Asia, providing

customers with data services such as SMS, MMS, video and mobile internet, games,

downloads and mobile TV, mobile advertising take this advantage of the “third screen”

(alongside the TV and the PC) to reach out to customers. The rapid rise of mobile

advertising in the Asia-Pacific region is being fuelled by a surge in mobile phone

subscriptions. This high diffusion of SMS facilitates analyzing usage behavior and hints

at the commercial potential of future communication services. Multimedia Messaging

Services (MMS), for example, will build on the success of SMS but allow for richer

content based on similar asynchronous, digital and interactive communication.

The influence of repetition on communication effectiveness is an important issue

that has generated a considerable body of research. Consumer researchers, psychologists,

and marketers have attempted to understand the relationship between repetition and an

audience’s reception of a message. The leading theory is that there is a non monotonic

relationship between message repetition and message effectiveness (cf. Anand and

Sternthal 1990; Vakratsas and Ambler 1999). Message effectiveness is believed to

increase at low levels of repetition and then to decrease as message repetition increases

(cf. Berlyne 1970; Cacioppo and Petty 1979). There is strong evidence in support of such

a curvilinear relationship (cf. Anand and Sternthal 1990; Pechmann and Stewart 1989).

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There is also, however, substantial research that shows no relationship between ad

repetition and message effectiveness (Belch 1982; Rethans, Swasy, and Marks 1986) or

mixed effects in terms of the curvilinear relationship (Calder and Sternthal 1980;

Messmer 1979). A review of the literature on repetition effects suggests that there is no

simple answer to the question of how repetition affects message effectiveness. Several

researchers have called for and turned their attention to factors that moderate the

relationship between repetition and message effectiveness. For example, research has

identified several message factors that influence the effects of repetition, including

message complexity (Cox and Cox 1988), “grabber versus nongrabber” ads (Ray and

Sawyer 1971), and ease of processing of the message (Anand and Sternthal 1990). This

research proposes an important source factor as a moderator of repetition effects.

Specifically, propose that the familiarity of the brand sponsor of an ad will moderate the

way in which repetition influences consumer response to that ad. Additionally, this

research contributes to existing research by describing more completely the mechanism

by which a decrease in attitudes with an increase in repetition may occur. The following

problem statement spells out and concludes the background of the research problem.

Problem statement: An in mobile marketing: To what extent do brand familiarity

influence customers’ responses of mobile marketing in Malaysia?

The mobile advertising is another complementary marketing communications

instrument, much of the theorizing about why consumers accept or do not accept SMS

advertising is speculative. SMS location-based services are likely to become increasingly

valued as a marketing tool (Ververidis and Polyzos, 2002). Via the mobile channel, the

response can be nearly immediate, interactive and the consumer can be reached

everywhere at anytime because the service is typically ubiquitous (Jelassi and Enders,

2004). Dickinger et al.’s (2005) model of success factors for SMS marketing are divided

into two categories: the message and the media. Message factors include: message

content, Krishnamurthy (2001) found that the factors affecting consumer willingness to

give permission to receive advertisement were: message relevance (e.g. message fit and

advertiser attractiveness), and special offers; personalization according to time (i.e. time

of day and frequency of advertisements), location (including real-time location-specific

offers) and consumers’ preferences; and consumer control, permission and privacy,

which has been identified as the strongest negative influence on consumer attitudes 7


toward SMS advertising. Media factors include issues regarding the device, transmission,

product fit (the media appears to better suit low budget items, young people and services

rather than goods), and media cost (which suggests that the medium is cheaper and more

effective than other alternatives). The following problem statement spells out and

concludes the background of the research problem. Problem statement: An in mobile

marketing: To what extent do relevant on advertisement influence customers’

responses of mobile marketing in Malaysia?

Moreover, Akaah et al. (1995) found that the factors that influence attitude toward

direct marketing most are the volume of advertisements and past direct experience.

Consumers’ attitude might vary individually. It is crucial to know consumer’s attitude

towards mobile marketing before proceed to their level of response. The problem

statement: An in mobile marketing: To what extend do attitude towards SMS

advertising influence customers’ responses of mobile marketing in Malaysia?

In marketing, building and maintaining brand loyalty has been a central theme of

marketing theory and practice in establishing sustainable competitive advantage. In

traditional consumer marketing, the advantages enjoyed by a brand with strong customer

loyalty include ability to maintain premium pricing, greater bargaining power with

channels of distribution, reduced selling costs, a strong barrier to potential new entries

into the product/service category, and synergistic advantages of brand extensions to

related product/service categories (Reichfeld, 1996). The opportunity for brands to reach

and influence consumers via mobile is significant. This research concede that the mobile

advertising industry is in its infancy and agree that there are obstacles that must be

overcome before it can become a mainstream advertising medium, but brands such as

Adidas, Microsoft and News Corp are increasing brand equity through mobile media

now; they are learning fast and potentially leapfrogging their competitors. This

opportunity must however be shaped through the development of a coherent mobile

marketing strategy that is fully integrated with brands primary marketing strategy and

clearly supports the businesses objectives. The following problem statement spells out

and concludes the background of the research problem. Problem statement: An in

mobile marketing: To what extent do brand loyalty influence customers’ responses

of mobile marketing in Malaysia?

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Ever since the rise of the SMS (short message service) in the early 2000s,

businesses have viewed it as an additional avenue in which to reach out to their

consumers, initiating the first forms of mobile advertising/marketing. Over the past few

years, there has been an exponential uptake of this marketing channel, partly due to the

current economic climate and the need to find ways in which to effectively reach brands’

target audiences at minimum cost in order to increase their ROI - a few benefits of the

mobile platform. With over 4 billon mobile users worldwide, the humble mobile phone

has over the years evolved from a means of communication to a multi-faceted device

which allows the user to manage a variety of tasks – from surfing the web to viewing rich

multimedia content. We are now moving into an era of smart phones and the Apple

iPhone, and application developers are working diligently to develop applications for

numerous platforms. But with the ever growing possibilities of connecting with the

consumer that the mobile device offers comes the key challenge of overcoming the threat

of breaches of consumer privacy that fraudsters, spammers and phishing attacks present.

Taking everything into consideration, building trust and faith amongst consumers is

central to building a relationship with the brand. The following problem statement spells

out and concludes the background of the research problem. Problem statement: An in

mobile marketing: To what extent do trust influence customers’ responses of mobile

marketing in Malaysia?

1.4. Research Objectives

After figuring out the problem statement of this research project, it is come to the

research objectives. Basically there are three objectives being break down from the

problem statement. The objectives are as the following:

1. To assess and determine the factors that would likely to influence level of

response of mobile marketing in Malaysia.

Explanation: The advent of cell phone, accompanied by the growth of related

technologies, has a significant impact on the lives of people around the globe. For

marketers, one of the most significant impacts has been the emergence mobile

advertising/ marketing through SMS and MMS. Due to these massive expose towards

cell phone, marketers take this opportunity to gain profit through m-marketing. Despites 9


the potential of SMS and MMS as an advertising medium, user’s preference are very

crucial to promote an effective m-marketing. Therefore, in this paper will discover what

factors that influence consumers’ response of mobile marketing in Malaysia?

2. To determine the how demographics background impact customers' responses

towards mobile marketing.

Explanation: These facts compiles that strategies of message receivers are quite random

and convenience-based. Because of the relatively low cost to advertise via SMS and

MMS, companies now send their advertisements to the mass market without considering

the receivers’ personal details in term of consumer’s demographic background. As a

result, most people tend to be irritated and annoyed by these careless marketing tactics.

Some research believe that gender, females have more likely to respond SMS ads

(Trappey, Randolph J.; Woodside, Arch G., 2005), play the critical role of response to

SMS ads. With these statistics, marketers might want to revise again their receivers’

personal detail before sending random ads to consumers because the level of response is

perhaps different demographically.

3. To determine the how relevant on advertisements and attitude towards SMS

advertising impact customers' responses towards mobile marketing

Explanation: Another aspect that influences the consumer’s responsiveness to marketing

communication is the interest in and relevance of the marketing message. Li et al. (2002)

found that the intrusiveness of advertisements may be moderated by the utility that

consumers derive from the content. It may be difficult to create relevant marketing

communication content, as the relevance is most likely consumer specific. In other words

something that is relevant for one consumer is probably less relevant for another

consumer. For example, one consumer is interested in golf, another consumer is

interested in motor sports or gardening and a golf brochure probably draws the attention

of the golf enthusiast and leaves the motor sport enthusiast indifferent. Tsang et al. (2004)

found that respondents had a negative attitude toward receiving SMS ads without

permission, since they regarded that as an irritating behavior. However, respondents

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claimed that their behavior would be positive if the ads were sent by permission.

Therefore, different consumer has different attitude and preferences.

4. To determine the how brand familiarity impact customers' responses towards

mobile marketing

Explanation: Responsiveness conceptualization closely relates to the attentiveness level

but carries over to the communication and persuasion levels in the sense that we assume

that they are closely related. Also make the assumption that there are differences in

responsiveness among consumers concerning different media as well as concerning

different products. The responsiveness may be higher for some media for some

consumers because they are more familiar with the media and it suits their purposes. In

this respect also certain products or offerings may receive higher responsiveness than

other.

5. To determine the how brand loyalty impact customers' responses towards mobile

marketing.

Explanation: Brand loyalty is another important element in this research. On a

worldwide basis, familiarity with and demand for mobile content services are high.

Consumers are increasingly sophisticated and demanding. They are highly sophisticated

and familiar with converging services such as web surfing, instant messaging and

interactive gaming. Although consumers found SMS-based advertising intrusive and

irritating (Sugai 2005), they are willing to access and willing to pay for information that

is compelling and that have high level of contextual sensitivity (Mort and Drennan 2002).

However it is essential to give users total control over what they receive because

consumers’ demand for highly personalized messages has to be reconciled with their

desire for privacy (Sadeh, 2002).

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6. To determine the how trust impact customers' responses towards mobile

marketing.

Explanation: Despites mobile marketing gain more popularity nowadays, most of the

people still have the negative attitude toward SMS ads (Fatim Bamba, Stuart J. Barnes

2007).

1.5. Justification and Contribution of Research

Things are done because they bring benefits or contributions to individual, family,

organization, society, country and even global. Same goes to this research paper. Mobile

marketing phenomena are governed by a number of consumer acceptance and behavior

characteristics and grounded in theoretical aspects of consumer decision making. There

are a number of factors that effect what we buy, when we buy, and why we buy. In

reference to mobile marketing, the factors that influence consumers are demographically

(i.e., age, gender, education, and occupation), brand familiarity, relevant on

advertisement, attitude towards SMS and MMS, brand loyalty and trust. The need to

identify these factors influencing customer’s level of responsiveness towards mobile

marketing is very crucial. By identifying the factor to maintain the current customer,

marketers, will be able to sustain in addition of reducing cost in attracting new customers.

Mobile phone has become essential part of personal and business life crosses all

age and gender boundaries. The of mobile phone usage can potentially play a significant

role in assisting older people in many ways especially in terms of maintaining social

relationship, providing sense of safety and accessibility. However, Elderly people seem to

have a neglected user group in design of mobile devices and services, although the

requirements to create well functioning solution for them are very well known. People

over the age of 60 use mobile phones for very limited purposes, such as for calling or

SMS in emergency situations. The use of Short Messaging Service to access customers

through their handheld devices is gaining popularity, making the mobile phone the

ultimate medium for on- to-one marketing. Most complaint is related to displays that are

too are too small and difficult to see, buttons and characters causing them to push wrong

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numbers frequently. They also avoid using more complex function, non user-friendly

menu arrangement and unclear instruction on how to find and use a certain function and

services that are too expensive. Ease of use and actual need of the services are important

criteria. The elderly are ready to begin using the services as long as they truly facilitate

independent living.

Studying interactive mobile services such as SMS and MMS suggests drawing

upon theories in marketing, consumer behavior, psychology and adoption to investigate

their organizational and personal use. But research on mobile marketing via SMS is

scarce. Obtain fine-tuned insight into mobile users and their preferences, not just user

demographics. More detailed customer preference information will enable better tailoring

of advertising packages and customer services. Provide relevant and timely

advertisements, using location, customer identity and preferences to ensure relevant

advertising sent to customers is appreciated. For example, a coffee coupon for Starbucks

in Japan sent five weeks after an Australian tourist has returned home is of no value.

When offering design tools and services for mobile advertising, bear in mind that retailers

are looking for simple yet effective solutions for creating ads to reach out to their

customers.

In general, advertising on mobile devices has great potential due to the very

personal nature of the devices and fine-tuned targeting possibilities. Mobile advertising

provides retailers with a complete and cost-effective channel through which to build

customer relationships and drive sales. Retailers can “mobilize” and build upon existing

customer acquisition and retention programs through a variety of mobile mechanics such

as mobile alerts to update customers of sales, new products and deliveries or extended

hours and “mobile coupons” to attract customers with deals. The Asia-Pacific region is

expected to account for 47.9% of global mobile phone subscribers by 2011. According to

figures released by Strategy Analytics, nearly 1 in 3 mobile subscribers will use a mobile

broadband connection by 2012. The nature of the mobile phone makes it a powerful

advertising medium as it is always there and always on.

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1.6. Definition of Important Terms

This section will provide readers with definition of important or frequent used

terms. This is to ease and increase the understanding of readers towards the whole

research paper. The progress of this section will follow a sequence in which it will list

down the definitions of terms for one variable to another in point form, hoping that

readers will not feel confuse.

1. Demographic (i.e., age, gender, education, and occupation)

Demographics or demographic data are the characteristics of a population as used in

government, marketing or opinion research, or the demographic profiles used in such

research. Socioeconomic groups, characterized by age, income, sex, education,

occupation, etc., that comprise a market niche. Example:

2. Responses

Response refers to consumers’ reaction to the SMS or MMS ads sent. It means that

consumers make an action such as either opening the message up and read the content of

the message or sent another SMS to confirm your participation, not just ignore and leave

it when it sent to

3. Brand familiarity

A brand is the intangible sum of an organization’s attributes, which can reflect an

organization’s name, history, reputation, and advertisement. A brand can be recognized

as the identifiable symbol, sign, name, or mark that distinguishes an organization or a

product from its competitors. Brand awareness or brand familiarity refers to customers'

ability to recall and recognize the brand under different conditions and link to the brand

name, logo, jingles and so on to certain associations in memory. It helps the customers to

understand to which product or service category the particular brand belongs to and what

products and services are sold under the brand name. It also ensures that customers know

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http://www.businessdictionary.com/definition/market-niche.html

http://www.investorwords.com/3379/occupation.html

http://www.businessdictionary.com/definition/sex.html

http://www.investorwords.com/2400/income.html

http://www.businessdictionary.com/definition/group.html

http://en.wikipedia.org/wiki/Demographic_profile

http://en.wikipedia.org/wiki/Marketing


which of their needs are satisfied by the brand through its products.(Keller). Sources:

http://en.wikipedia.org/wiki/Brand#Brand_Awareness.

4. Relevant on advertisement

One definition of advertising is: "Advertising is the nonpersonal communication of

information usually paid for and usually persuasive in nature about products, services or

ideas by identified sponsors through the various media."(Bovee, 1992, p. 7) Relevance on

advertisement means the content of the advertisement which sent to consumer at correct

time to correct target market. In other words is marketer’s ability to customized and

tailored to only receive messages relevant to interests. Sources:

http://www.wsu.edu/~taflinge/addefine.html

5. Attitude towards SMS and MMS

Attitude is the mediator between belief and behavioral intention. The SMS (Short

Messaging System) is became popular than ever worldwide. Majority Malaysian people

are knowledgeable about technological gadgets especially cell phone. Besides the

convenience of usage in anywhere or at any time, the user can also listen to music, play

games or surf the internet. These entertainment beliefs have the strongest effect on

attitude. People are getting closer than ever to their phones because of these

entertainment value features of cell phone. These positive attitudes towards SMS

influence the level of responses towards mobile marketing.

6. Brand loyalty

Brand loyalty is usually the result of continued satisfaction with a product or its price and

is reinforced by effective and heavy advertising or in simply words the tendency of

consumers to continue buying a specific brand's product or service, despite the

competition. Strong brand loyalty, which is often subjective or subconscious, reduces the

impact of competitive brand promotions and brand switching- A purchasing pattern

characterized by a change from one brand to another unless it is for an improved product.

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http://en.mimi.hu/marketingweb/brand.html

http://www.wsu.edu/~taflinge/addefine.html

http://en.wikipedia.org/wiki/Brand#Brand_Awareness


7. Trust

Trust is the level of confidence that one individual has in another’s competence and his or

her willingness to act in a fair, ethical, and predictable manner. (Nyhan and Marlowe,

1997).

8. Mobile Advertising

Advertising is defined as “any paid form of non personal presentation and promotion of

products, services, or ideas by an identified sponsor (Kotler and Zaltman 1971, p. 7).” or

Mobile Advertising refers to advertising or marketing messages delivered to portable

devices, either via a synchronized download or wirelessly over the air.

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1.7 Organization of Overall Study

Figure 1: Organization of overall study

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Chapter 1: Introduction 1.1. Overview

1.2. Research background

1.2.1. Industry background

1.3. Problem Statement

1.4. Research Objectives

1.5. Justification and Contribution of Research

1.6. Definition of Important Terms

1.7. Organization of Overall Study

Chapter 2: Literature Review2.1 Overview

2.2 Mobile marketing

2.3 Level of responsiveness

2.3.1 Brand familiarity

2.3.2 Relevant advertisement

2.3.3 Attitude towards SMS and MMS

2.3.4 Brand loyalty

2.3.5 Trust

2.4 Relationship

2.5 Conclusion/summary

Chapter 3: Research Methodology 3.1 Overview 3.7 Data Analysis

3.2 Research Framework 3.7.1 Descriptive Analysis

3.3 Hypotheses Development 3.7.2 Reliability Analysis

3.4 Sampling Plan 3.7.3 Significant Differences Test

3.5 Questionnaire Development 3.7.4 Hypothesis Testing

3.6 Data Collection 3.7.5 Other Testing

3.6.1 Primary Data Collection

3.6.2 Secondary Data Collection


Figure1.1 shown above is the organization of this research project. The research

project 1 is organized into three main chapters which are introduction, literature review,

and research methodology.

Chapter one, the study will basically expose the readers to the background of

the topic, mobile marketing and also the different issues related to mobile marketing such

as facts, cases, etc. Besides that, readers will also be introduced to the background of the

research problem and research objectives. Then it is followed by the explanation that

justifies the contributions of this research project. To ensure that readers receive better

understanding through out this paper, some definition of used term is provided as well.

Generally, chapter 2 introduces reader to the world of information regarding all

the variables involve in this research project. The paper will provide a distinct

explanation of each variable which consist of demographics (i.e., age, gender, education,

and occupation), brand familiarity, attitudes towards SMS and MMS, brand loyalty,

relevant advertisement and trust. This paper will also demonstrate the correlation between

dependent and independent variables before it comes to summary of this chapter.

In chapter 3, readers will be first exposed to the brief overview of the chapter

followed by the theoretical framework which provides a hint on how the variables are

linked together. Moreover, it will describe on the development process of hypothesis,

sampling plan and methods to collect data. Apart from that, this paper will also show

readers the process on how to develop questionnaire and sources being used as

references. Then, the chapter will proceed to discussion on testing methods that will be

adopted to analyze the data collected. Finally, the whole project and chapter will end by a

summary from overall research.

As a conclusion, figure 1.1 provides distinct and simple organization chart that

spell out the overall flow of this research project.

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CHAPTER 2: LITERATURE REVIEW

2.1 Overview

This chapter will discuss those related researches completed by other past

researches in detail form. The literature review will start with explanation of dependent

variables which is mobile advertising or marketing and then followed by the independent

variables brand familiarity, attitudes towards SMS and MMS, brand loyalty, relevant

advertising and trust. It is expected that this paper will provide readers with basic

understanding on this study. Apart from that, readers can take this opportunity to gain

some knowledge about facts regarding this business area and be aware of some popular

researchers and their contribution related to this topics.

In the section 2.4, readers are exposed to the relationship between independent

and dependent variables, where readers might assume that similar results will be

achieved.

Finally, this chapter will end by a summary that spells out the nut shell of this

chapter.

19


2.1.1 Overview of previous research

Graham, 2001 studied the future of wireless advertisings and found that 60% of

respondents showed interest in receiving text advertising through mobile phones and

Black (2001) reported that brand awareness for the advertized brand increased more than

80% among respondents who received on average six SMS advertising. Barwise and

Strong (2002) studied SMS as a potential advertising means for young people, and found

that 51% were very satisfied with a service that was customized and tailored to only

receive messages relevant to interests. 84% stated they would recommend such a service

to a friend, and 63% said that they had either replied or taken action as a result of

receiving the SMS ads

The authors, however, stressed the importance of the relevancy of the SMS

contents as prerequisite to motivate young people to take an action. In addition, the

authors showed that mobile advertising were more favorable to consumers for location-

sensitive and time critical events. Enpocket (2002) reported that 94% of respondents had

read the SMS advertising messages, and 23% of them forwarded the marketing messages

to friends. Rettie et al. (2005) analyzed the acceptance of 26 different SMS ads. The

result of the study showed that the acceptance of SMS ads was 44 percent. The authors

concluded that interest, relevance and monetary incentives were the main reasons that

encouraged consumer acceptance. Doherty (2007) concluded that consumers will accept

SMS ads only if it is relevant and entailed quality advertising.

Carroll et al. (2005) and Carroll et al. (2007) find that permission, control,

content, delivery and wireless service provider control are the main determinants behind

consumer acceptance of SMS advertising. Haghirian & Madlberger (2005) found that

advertising value and content are the main factors that influence the acceptance of SMS

ads. Anderson and Nilsson (2000) showed that SMS advertising had a positive impact on

increasing brand awareness and purchase intention. Tsang et al. (2004) found that

respondents had a negative attitude toward receiving SMS ads without permission, since

they regarded that as an irritating behavior. However, respondents claimed that their

20


behavior would be positive if the ads were sent by permission. Rettie and Burm (2001)

reported that 90% of respondents found it unacceptable to receive SMS ads from

unknown businesses, while 49% of respondents found it acceptable to receive SMS ads

from Internet service providers they had subscribed to, and 44% found it acceptable as

well if they could have discount call in return. Okazaki and Taylor (2007) found that the

single factor that mainly correlated with intention to adopt SMS ads by multinational

companies was the perceived ability to build the brand. Other factors such as the ability

to use location-based advertising and the perceptions of how well consumers accept SMS

advertising were found to have potential influence on firms' decisions to adopt SMS ads.

Bauer et al (2005) found that consumers who were more familiar with mobile

communications perceived the use of mobile marketing services less difficult compared

to consumers who were unfamiliar. Dickinger et al (2004) concluded that the fear of

spam had a strong negative influence on customers' attitudes to accept SMS advertising.

Whitaker (2001) reports that respondents who considered their mobile phones as a very

private and personal item were more reluctant to share information with unknown

companies and the author also find that when data is controlled by unknown persons has

led to annoyance among receivers.

Jong and Sangmi (2007) found that mobility, convenience and multimedia service

were positively related to attitudes toward mobile advertising, which in turn lead to

favorable behavioral intentions. Skog (2002) reports that teenagers are not homogeneous

audiences for mobile phones as their usage patterns and attitudes varied widely

depending on their social background, technological literacy and urban/rural lifestyles.

Chowdhury et al (2006) found that when mobile advertisers presented mobile ads

pleasingly, with appropriate information, consumers would not be annoyed and there was

a high possibility that they would like the ads. Haghirian and Dickinger (2004) reported

that sending games and prizes to the target group’s mobile phones was a successful way

to attract and keep customers. Li et al. (2002) and Krishnamurthy (2001) reported that the

perception which consumers hold about SMS advertising messages is related to the

granted permission to marketers confirming by that their willingness to receive SMS

advertising messages. Godin (1999) pointed out that consumers who subscribed to a

21


particular company were usually interested in that company's services and products, and

hence, when consumers received SMS advertising messages, they were more likely to

pay more attention and read the message compared to consumers who receive messages

from companies which they are not subscribed with. Heun, (2005) found only 12% of

consumers were willing to receive any forms of wireless advertisements, even if they

could control what to receive.

2.2 Mobile Marketing/ advertising

Over the past few years, mobile marketing has generated an increasing interest among

academics and practitioners. While numerous studies have provided important insights

into the mobile marketing, our understanding of this topic of growing interest and

importance remains deficient. Technology developments have created new marketing

communication channels or media such as email, SMS (Short Messaging Service) and

MMS (Multimedia Messaging Service). These digital media are considered to potentially

improve the possibilities to reach consumers by allowing personalization of the content

and context of the message (Forrester Report 2001). Simultaneously there is a potential

downside to the development of new digital channels. In a Forrester report companies

using SMS expressed fear for invasion of consumer privacy (80%) and negative

consumer reaction (60%) as disadvantages of the media (Forrester Report 2001, p. 3). A

crucial question is thus whether there are obstacles for the marketer to use mobile media

to its potential. Are customers more reluctant to receive marketing information through

mobile media than through traditional media or is it the other way around?

Mobile advertising, which is an area of mobile commerce, is a form of advertising

that targets users of handheld wireless devices such as mobile phones and Personal

Digital Assistants (PDAs). In Comparison with traditional advertising, the main

advantage of mobile advertising is that it can reach the target customers anywhere

anytime. In order to promote the selling of products or services, all the activities required

to communicate with the customers are transferred through mobile devices. Combining

with the customer’s user profile and context situation, advertising companies can provide

22


the target customers exactly the advertisement information they desire, not just “spam”

them with advertisements they are not interested in.

The devices on which these value-added services are pushed onto or downloaded

to, operate in an environment that imposes constrains such as: wireless network

environments are unreliable and bandwidth is low, and the very mobility of devices

increases the risk that a connection will be lost or degraded. More importantly, mobile

services must work within the daunting constraints of the devices themselves, which

include: memory, processing power, input capabilities, and size of display. It is therefore

important that mobile advertisements take into account the user’s context, optimize

resource usage, and minimize input effort imposed on the user.

2.3 Level of responses

Response refers to consumers’ reaction to the SMS or MMS ads sent. It means that

consumers make an action such as either opening the message up and read the content of

the message or sent another SMS to confirm your participation, not just ignore and leave

it when it sent to. Some research says that Permission marketing refers to the asking of

consumers’ consent to receive commercial messages while giving the individual and

opportunity to stop receiving them at any time (Tezinde et al., 2002). Bellman et al.

(2001) affirm that: “Using the right combination of question framing and default answer,

an online organization can almost guarantee it will get the consent of nearly every visitor

to its sites.” Unfortunately, one marketer manipulates consumers’ inattention and

cognitive laziness to get their consent.

Responsiveness conceptualization closely relates to the attentiveness level but carries

over to the communication and persuasion levels in the sense that we assume that they

are closely related. Also make the assumption that there are differences in responsiveness

among consumers concerning different media as well as concerning different products.

The responsiveness may be higher for some media for some consumers because they are

more familiar with the media and it suits their purposes. In this respect also certain

products or offerings may receive higher responsiveness than other.

23


This paper would like to know which factors have influence on the response

dramatically in Malaysia. In addition, a study also indicates that consumers’ perception

have negative attitude toward SMS ads so the marketers should avoid to ask personal

information (Fatim Bamba, Stuart J. Barnes, 2007). Life style and media habit may cause

the attitude. There is a negative relationship between the volume of ads received and the

attitude towards direct marketing (Phelps et al., 2000). If the consumer is interrupted

during his or her daily activities this can severely damage brand image (Hoyer and

MacInnis, 2004). Petty (2000) describes this cost as an involuntary cost borne by the

consumer who faces an unselected exposure.

To measure level of responses and acceptance on mobile ads must firstly revise the

attitudes towards mobile advertising. In this section, this research will briefly explain

consumers' attitudes towards different kinds of advertising in different periods of time

and in different countries. According to the TRA model (Ajzen & Fishbein, 1980;

Fishbein & Ajzen, 1975) in sociology, behavior is guided by one's intention and attitude;

and beliefs form one's attitude. Hence, the effect of salient beliefs about and prior-

permission to receive mobile advertising on attitudes towards mobile advertising will be

examined. People hold certain attitudes towards advertisements, even in childhood

(Derbaix & Bree, 1997). Previous studies (e.g. Mittal, 1994; Zanot, 1984) show that the

general attitude towards traditional advertising was negative. Zanot (1984) reviewed

survey results from the 1930s to 1970s and concluded that the public's attitudes towards

advertising became unfavorable gradually.

Mittal (1994) found that most of his survey respondents felt their intelligence was

insulted by the advertising, and less than a quarter of TV advertisements were credible. It

seems that specific age groups hold different attitudes. Young people tend to have a

positive attitude towards certain kinds of advertising, for example, provocative

advertisements (Vezina & Paul, 1997). Attitudes towards Internet advertising, however,

are mixed (Schlosser, Shavitt, & Kanfer, 1999). Similar to those to traditional

advertising, general attitudes towards mobile advertising are also unfavorable (e.g.

Caroll, Barnes, & Fletcher, 2005; Lee, Tsai, & Jih, 2006; Tsang et al., 2002). The reasons

24


behind the unfavorable attitudes are due to negative beliefs such as annoyance, excessive

and offensive advertising (Lee, Tsai, & Jih, 2006).

In Malaysia, despite cell phones being a must-have today, mobile advertising is in its

infancy at both the local and global level. It also lags search and online advertising,

which is growing exponentially. Universal McCann Malaysia’s chief executive Prashant

Kumar shares his views on the outlook for mobile advertising. According to Prashant, “I

think the mobile industry is still in its pre-teen years. We have seen largely location-free

handsets. Location-aware technology is just making a beginning and there is not enough

location-aware content or application to go with it yet. But overall, a lot of advertising is

push-based. We need more creativity in this space and experimentation. Unless

advertisers and agencies sample it, they won’t know its power”.

Prior permission to receive mobile advertising was found to be an important factor

favoring attitudes towards mobile advertising (Caroll et al., 2005; Tsang et al., 2002).

From the previous researches, we can see there are negative responses from the public

during those times. Next, I will move on to the six independent variables that we want to

investigate whether demographics, brand familiarity, brand loyalty, relevant advertising,

attitudes towards SMS and MMS, and trust effect the level of responses among the

consumers in Malaysia.

2.3.1 Brand familiarity

A crucial communication task for unknown brands is to build the knowledge in

consumers’ minds necessary to become established. However, communication

effectiveness may depend on prior familiarity of the advertised brand. In this paper will

also investigate consumers' willingness to give permission to receive short message

service (SMS) advertisements based on their familiarity with certain brands or existing of

knowledge about certain brand. According from Lianxi Zhou research paper from

Concordia University, Canada, the empirical results from structural equation modeling

show that familiarity with a brand influences a consumer's confidence toward the brand,

which in turn affects his/her intention to buy the same brand. In addition, consumer's

25


attitude toward a specific brand is affected by his/her familiarity with the brand. These

causal relationships are tested in a multiple brand context. In context of mobile

marketing, the level familiarity towards a certain brands might drives consumers to

response to mobile advertising. For example, if let say “BIKA” brands send their

message to consumers about new promotion regarding their product, consumers might

not want to response to it because the unfamiliarity towards that brand. However, if

“PADINI” or “BODY GLOVES” send a promotion message to consumers, the

possibilities of feedback is higher.

The draw on this theorizing to propose that brand familiarity is an important

variable that can influence consumer processing and the stages of habituation and tedium.

Brand familiarity reflects the extent of a consumer’s direct and indirect experience with a

brand (Alba and Hutchinson 1987; Kent and Allen 1994). Brand familiarity captures

consumers’ brand knowledge structures, that is, the brand associations that exist within a

consumer’s memory. Although many advertised products are familiar to consumers,

many others are unfamiliar, either because they are new to the marketplace or because

consumers have not yet been exposed to the brand (Stewart 1992). Familiar and

unfamiliar brands differ in terms of the knowledge regarding the brand that a consumer

has stored in memory. Consumers tend to have a variety of different types of associations

for familiar brands. Consumers may have tried or may use a familiar brand, they may

have family or friends who have used the brand and told them something about it, they

may have seen prior ads or marketing communications for the brand, or they may know

how the brand is positioned, packaged, and so on, from the press. Consumers lack many

associations for unfamiliar brands because they have not had any of these types of

experiences with them.

One possibility might be that consumers would have negative reactions to the

repetition of ads for familiar brands more quickly than they would to ads for unfamiliar

brands. Because consumers already know something about familiar brands, ads for these

brands might seem less interesting than ads for novel brands that consumers do not know.

Following this line of reasoning, ads for unfamiliar brands might seem less boring than

those for familiar brands; such that wear out would be postponed for unfamiliar brands.

26


However, consideration of the processing engendered by unfamiliar versus familiar

brands actually suggests the hypothesis that ads for unfamiliar brands can wear out more

quickly than ads for familiar brands, as follows. Because of knowledge differences,

consumers are likely to have different processing goals when exposed to ads sponsored

by unfamiliar and familiar brands. People tend to attempt to learn about and evaluate

novel stimuli (e.g., Sujan 1985). Thus, when consumers are exposed to an ad for an

unfamiliar brand, they are more likely to have a goal of learning about and forming an

accurate impression of the brand (Hilton and Darley 1991). To put it another way, if ads

for unfamiliar brands appear more novel and interesting, they will therefore elicit more

extensive processing. When exposed to an ad for a familiar brand, by contrast, consumers

already have some knowledge about the brand and, therefore, are more likely to update

their existing knowledge (Snyder and Stukas 1999). Since consumers already know

something about familiar brands, they are likely to engage in relatively less extensive,

more confirmation based processing when exposed to an ad for a familiar brand (Keller

1991; MacKenzie 1992). In fact, familiarity can itself use cognitive capacity such that

processing of a familiar, relative to an unfamiliar, stimulus is diminished (Britton and

Tesser 1982), although it should be recognized that consumers may not always engage in

highly involved processing, in an absolute sense, in either case. The more extensive

processing elicited by ads for unfamiliar brands increases the resource availability; since,

as noted above, excess resource availability leads to wearout (Cacioppo and Petty 1979;

Calder and Sternthal 1980), these ads should show decreased repetition effectiveness at a

lower number of ad exposures relative to ads for familiar brands.

2.3.2 Relevant on advertisement

Advertisement is any written or media-based effort to promote a products or

services. A study from TNS Global (http://www.marketingvox.com/) finds most people

aren't comfortable with having their online behavior tracked for ad delivery purposes.

Relevant ads should be driven by consumer choice and participation and the ability to say

more than just “no”. It should be an ongoing dialogue between the consumer and

marketer on “what I want marketed to me”. Wouldn’t it be far more effective and

profitable for advertisers and publishers to provide targeted advertising based on

27

http://www.marketingvox.com/


behaviors where the consumers are able to provide feedback on the type of messages they

care to receive? Relevant on advertisement is selecting the correct target market that has

likelihood to response to mobile advertising.

Another aspect that influences the consumer’s responsiveness to marketing

communication is the interest in and relevance of the marketing message. Li et al. (2002)

found that the intrusiveness of advertisements may be moderated by the utility that

consumers derive from the content. It may be difficult to create relevant marketing

communication content, as the relevance is most likely consumer specific. In other words

something that is relevant for one consumer is probably less relevant for another

consumer. For example, one consumer is interested in golf, another consumer is

interested in motor sports or gardening and a golf brochure probably draws the attention

of the golf enthusiast and leaves the motor sport enthusiast indifferent. High relevance

may have two different roots. High commitment to a certain brand or service provider

may make the consumer more responsive to marketing communication concerning that

specific brand or service firm. Similarly, high involvement in a product category or

activity may lead to higher consumer perceived relevance for corresponding marketing

communication. These roots of perceived relevance might be called focused relevance

created by commitment and information relevance generated through involvement.

The effectiveness of mobile marketing is depends on the number of feedback they

get from consumers. If a low response received from consumer, it will be a waste and

retailers should focus more on other marketing strategies rather than mobile marketing.

Therefore, it is important to focus this marketing strategy on largely potential client rather

that to anonymous consumer who have no clue about the brands.

2.3.3 Brand loyalty

The new millennium is not just a new beginning; it is a continuation of trends in

human behavior that have been following cyclical patterns throughout our country's

history. Just because we have entered a new era does not mean we have to start from

scratch when it comes to interpreting why certain consumers are loyal to certain brands

and what type of factors influence these allegiances. 28


Brand Loyalty is the consumer's conscious or unconscious decision, expressed

through intention or behavior, to repurchase a brand continually. It occurs because the

consumer perceives that the brand offers the right product features, image, or level of

quality at the right price. Consumer behavior is habitual because habits are safe and

familiar. In order to create brand loyalty, advertisers must break consumer habits, help

them acquire new habits, and reinforce those habits by reminding consumers of the value

of their purchase and encourage them to continue purchasing those products in the future.

The image surrounding a company's brand is the principal source of its

competitive advantage and is therefore a valuable strategic asset. Unfortunately, many

companies are not adept at disseminating a strong, clear message that not only

distinguishes their brand from the competitors', but distinguishes it in a memorable and

positive manner. The challenge for all brands is to avoid the pitfalls of portraying a

muddled or negative image, and instead, create a broad brand vision or identity that

recognizes a brand as something greater than a set of attributes that can be imitated or

surpassed. In fact, a company should view its brand to be not just a product or service,

but as an overall brand image that defines a company’s philosophies. A brand needs more

than identity; it needs a personality. Just like a person without attention-grabbing

characteristics, a brand with no personality can easily be passed right over. A strong

symbol or company logo can also help to generate brand loyalty by making it quickly

identifiable.

From the design of a new product to the extension of a mature brand, effective

marketing strategies depend on a thorough understanding of the motivation, learning,

memory, and decision processes that influence what consumers buy Theories of

consumer behavior have been repeatedly linked to managerial decisions involving

development and launching of new products, segmentation, timing of market entry, and

brand management. Subsequently, the issue of brand loyalty has been examined at great

length. Branding is by far one of the most important factors influencing an item's success

or failure in the marketplace, and can have a dramatic impact on how the "company

behind the brand" is perceived by the buying public. In other words, the brand is not just

a representation of a company's product; it is a symbol of the company itself, and that is

where the core of brand loyalty lies.

29


Brand loyalty is very crucial in retaining new and old customers. Today’s highly

competitive environments, improving consumers' loyalty to brands permits marketers to

maintain a comfortable and lasting position in the marketplace. Most consumers will

response to any promotion if they are loyal to that brand. At least they will visit the outlet

to see the promotion activity held in that store. In this paper we will also take a closer

look on how brand loyalty affects consumers’ responses towards mobile marketing.

2.3.4 Attitudes toward SMS and MMS

Dickinger et al.’s (2005) model of success factors for SMS marketing are divided

into two categories: the message and the media. Message factors include: message

content, Krishnamurthy (2001) found that the factors affecting consumer willingness to

give permission to receive advertisement were: message relevance (e.g. message fit and

advertiser attractiveness), and special offers; personalization according to time (i.e. time

of day and frequency of advertisements), location (including real-time location-specific

offers) and consumers’ preferences, permission and privacy, which has been identified as

the strongest negative influence on consumer attitudes toward SMS advertising.

Moreover, Akaah et al. (1995) found that the factors that influence attitude toward direct

marketing most are the volume of advertisements and past direct experience. Media

factors include issues regarding the device, transmission, product fit (the media appears

to better suit low budget items, young people and services rather than goods), and media

cost than other alternatives). Xu et al. (2003) identified three consistent success indicators

for SMS messaging: (1) the cost-effectiveness and interoperability of the wireless

infrastructure; (2) the high penetration of mobile phones (ubiquitous penetration levels of

over 80% in some countries); and (3) the relatively low cost of the SMS messaging

service. Also, some research believe interprets that cost of SMS does matter to

consumptions (Joost Wouters and Martin Wetzels, 2006).

In addition, a study also indicates that consumers’ perception have negative

attitude toward SMS ads so the marketers should avoid to ask personal information

(Stuart J. Barnes, 2007). Life style and media habit may cause the attitude. There is a

negative relationship between the volume of ads received and the attitude towards direct

marketing (Phelps et al., 2000). If the consumer is interrupted during his or her daily 30


activities this can severely damage brand image (Hoyer and MacInnis, 2004). Petty

(2000) describes this cost as an involuntary cost borne by the consumer who faces an

unselected exposure. Another paper say that the innovation attributes- relative advantage,

compatibility, complexity, and trialability- in the diffusion of innovation perspective are

important belief characteristics in explaining consumer attitudes towards SMS ads (Muk,

Alexander, 2007).

The Theory of Cognitive Dissonance developed by Festinger is one of the most

important theoretical concepts in explaining the integration of a single attitude into an

individual’s attitudinal system [1978]. The theory is based on the assumption that an

individual is always aiming to keep his cognitive system in balance. If inconsistencies

between several cognitions - i.e. opinions, attitudes, or expectations - arise, consumers

experience a feeling of discomfort. To overcome this displeasing feeling, consumers try

to reduce the inconsistencies between their cognitions. One usable strategy is to reshape

the attitude featuring the lowest resistance to become more consistent with the other

attitudes of the system [Güttler 2003]. These considerations hold important implications

for this study, as they allow us to determine the relationship between the attitude toward

advertising in general and the attitude toward mobile marketing. Both attitudes are

related: mobile marketing can be considered to be a subset of all available instruments for

communicating advertising content. Consumers are likely to be highly familiar with

advertising in general, as they are exposed to it on an everyday basis. Consequently, they

can be expected to hold a stable and consistent attitude toward advertising in general.

Mobile marketing on the other hand is to be classified as an innovation, to which only

few consumers have yet been exposed. Consumers’ attitudes toward mobile marketing

can thus be assumed to be less stable and easily changeable. The attitude toward mobile

marketing has a lower resistance to change than the attitude toward advertising in

general. It therefore appears obvious that the attitude toward mobile marketing will be

highly dependent on the attitude toward advertising in general. Therefore, it comes to

conclusion the more positive the attitude toward advertising in general the more positive

the attitude toward mobile marketing.

31


2.3.5 Trust

Trust generally decreases the perceived risk of using services (Garbarino and

Johnson, 1999). In recent study, for example, preceding research (Reichheld et al., 2000)

proposed trust as another important antecedent of loyalty. The trust concept has been

studied in a number of disciplines, and various definitions have been proposed (Lewicki

et al., 1998). Trust is consistently related to the vulnerability of the trustor (Bigley and

Pearce, 1998) because without vulnerability of the trustor upon the trustee, trust becomes

irrelevant. In business studies, trust has been found to be important for building and

maintaining long-term relationships (Geyskens et al., 1996).

A new study found some surprising statistics when it comes to how those in the

United Kingdom view mobile marketing. The study - which was a collaborative effort

among Aeneas Strategy, Wasabi Mobile Marketing, Camerjam, MSEARCH Groove and

Every Single One of Us - took an in-depth look at the progress that mobile advertising is

making in the United Kingdom. Surprisingly, less than half of the people questioned

think that mobile advertising can be considered trustworthy. The study further found that

consumers are willing to share some, but not all, personal information. Most consumers

are willing to share certain information to receive more targeted messages, such as those

pertaining to gender, interests, music or hobbies. However, they are significantly less

willing to share information such as location or information about income. Overall, the

16 to 24-years old age group is the most willing to share general information, but the

least willing to share information on location and income.

There is a trade-off between personalization and consumer control. Gathering data

required for tailoring messages raises privacy concerns. Corporate policies must consider

legalities such as electronic signatures, electronic contracts, and conditions for sending

SMS messages. Seven experts who had used SMS campaigns welcomed European

government and industry initiatives to restrict unsolicited SMS. They argued that sending

unsolicited messages hurts the mobile advertising industry. According to all the experts,

advertisers should have permission and convince consumers to ‘‘opt-in’’ before sending

advertisements. A simple registration ensures sending relevant messages to an interested

audience. Unsolicited messages, commonly known as spam, stifle user acceptance –

32

http://b.mjob.com/

http://www.everysingleoneofus.com/

http://www.msearchgroove.com/

http://www.camerjam.com/

http://www.wasabimobile.com/

http://www.aeneasstrategy.nl/

http://mjob.com/


particularly as mobile phones cannot distinguish between spam and genuine

communication automatically. Unwanted messages are illegal in some countries and

annoy consumers regardless of the medium (e.g., fax, telephone, electronic mail, or

mobile devices). All 15 experts cited fear of spam as the strongest negative influence on

consumer attitudes towards SMS advertising. Changing ones mobile phone number is

more difficult than changing e-mail addresses provided by free services such as Yahoo!

or Hotmail. New regulations in the United States that allow people to keep their phone

numbers when switching cellular carriers may reinforce fears of unwanted messages and

misuse of personal data, thereby keeping consumers from registering for SMS based

information services.

2.4 Relationship between Independent Variables and Dependent Variable

This part is to examine the relationship between dependent and independent variable

in this study which is between level of responses with brand familiarity, brand loyalty,

attitudes toward SMS and MMS, relevant ads and trust in mobile marketing. They had

put a lot of efforts in those studies and contributed to the industry. The association

between dependent variable and each independent variable will be discussed in detailed

in following paragraphs. Later in this paper will get to know whether those variables are

strongly correlated or not.

2.4.1 Relationship between brand familiarity and responses of mobile

marketing

A findings show that the one of strongest determinant of multinational

companies’ mobile advertisings adoption is brand familiarity (Shintaro Okazaki, 2005).

An earlier pilot study conducted by Quios found that in mobile advertising the level of

recognition was surprisingly high: 79 per cent of participants recalled 60 per cent of

mobile advertising (Barnes, 2003). In addition, firms using mobile e-mail campaigns can

attract consumer attention and produce consumer responses to a much greater degree than

other direct marketing channels, because such firms can engage in “one-to-one dialogue”

with customers (Kavassalis et al., 2003). An experimental survey by Ericsson indicates

33


that 60 per cent of samples liked receiving mobile advertising (Barnes, 2003). Similarly,

a survey using popular brands’ trial mobile advertising found that as many as 84 per cent

of 500 young British adults are likely to recommend the service to their friends, while

only 7 per cent are likely to abandon the service (Barwise and Strong, 2002). It means

that consumers are likely to respond SMS ads if they are sent from the company that they

know or are familiar.

2.4.2 Relationship between attitudes toward SMS and MMS and responses

of mobile marketing

Response refers to consumers’ reaction to the SMS or MMS ads sent. It means

that consumers make an action such as either opening the message up and read the

content of the message or sent another SMS to confirm your participation, not just ignore

and leave it when it sent to. Some research says that Permission marketing refers to the

asking of consumers’ consent to receive commercial messages while giving the

individual and opportunity to stop receiving them at any time (Tezinde et al., 2002).

Bellman et al. (2001) affirm that: “Using the right combination of question framing and

default answer, an online organization can almost guarantee it will get the consent of

nearly every visitor to its sites.” Unfortunately, one marketer manipulate consumers’

inattention and cognitive laziness to get their consent. This paper would like to know

which factors have influence on the response dramatically in Malaysia. In addition, a

study also indicates that consumers’ perception have negative attitude toward SMS ads so

the marketers should avoid to ask personal information (Fatim Bamba, Stuart J. Barnes,

2007). Life style and media habit may cause the attitude. There is a negative relationship

between the volume of ads received and the attitude towards direct marketing (Phelps et

al., 2000). If the consumer is interrupted during his or her daily activities this can

severely damage brand image (Hoyer and MacInnis, 2004). Petty (2000) describes this

cost as an involuntary cost borne by the consumer who faces an unselected exposure.

Another paper say that the innovation attributes- relative advantage, compatibility,

complexity, and trial ability- in the diffusion of innovation perspective are important

belief characteristics in explaining consumer attitudes towards SMS ads (Muk,

34


Alexander, 2007). In this case, one would like to know Malaysia consumers’ perception

toward SMS ads.

2.4.3 Relationship between relevant advertising and responses of mobile

marketing

In case of relevance of ads, it means SMS ads are fit and attractive to consumers

(Stuart J. Barnes, 2007). A prior research informs that SMS ads will have the efficiency

when they are sent to consumers with the right information at the right time in the right

place (Bert De Reyck and Zeger Degraeve, 2003). The message can be tailored for each

customer to enable better targeting. Since, mobile phones are personal objects marketers

can specifically address the person targeted, as well as recognizing their social context,

individual preferences, time, and location (Fatim Bamba; Stuart J. Barnes, 2007). They

consumers are high likely to respond if the SMS ads are what they are interested.

2.4.4 Relationship between brand loyalty and responses mobile marketing

The new millennium is not just a new beginning; it is a continuation of trends in

human behavior that have been following cyclical patterns throughout our country's

history. Just because we have entered a new era does not mean we have to start from

scratch when it comes to interpreting why certain consumers are loyal to certain brands.


competitive environments, improving consumers' loyalty to brands permits marketers to

maintain a comfortable and lasting position in the marketplace. Most consumers will

response to any promotion if they are loyal to that brand. At least they will visit the outlet

to see the promotion activity held in that store. In this paper we will also take a closer

look on how brand loyalty affects consumers’ responses towards mobile marketing. Does

loyal consumer to a certain brand respond to mobile ads of other brand? We will find out

later in this paper.

35


2.4.5 Relationship between trust and responses mobile marketing

Trustworthy always gets into way in consumers’ purchase behavior. Based on the

Technology Acceptance Model (TAM), this study aims to predict the consumers’

purchase intention by integrating trust and perceived risk into the model to empirically

examine the impacts of key drivers. With 705 samples obtained from users of Yahoo!

Kimo online vendor, this study applied the Structural Equation Model (SEM) to examine

the proposed model. The results indicate that perceived ease of use (PEOU) and

perceived usefulness (PU), trust, as well as perceived risk, significantly impact purchase

intention. Moreover, trust significantly reduced perceived risk. Same goes to mobile

marketing. Trust can affect the level of responses towards mobile ads or marketing. If

retailer couldn’t get consumer’s trust, the likelihood to get positive response from

consumers is massively low.

2.5 Conclusion

This chapter two had basically started the discussion with a brief overview of the flow

of this chapter. It then followed by the main content of this chapter, which is a lengthy,

detail and informational literature review. Throughout this section readers are being

exposed to focus of past research which provides very useful information for the

development of this research paper and equips readers with a fundamental introduction,

knowledge and understanding towards the industry. After that the chapter touches on the

relationship between the independent and dependent variables of this research project. It

is actually a really short and simple summary for the extensive literature review. Finally

this chapter ends with this summary that spells out the big picture of the chapter.

36


CHAPTER 3: RESEARCH METHODOLOGY

3.1 Overview

In chapter 3, six subtitles will be discussed. It includes theoretical framework that

focuses the ways independent variables are linked to dependent variables. Then it is

followed by the discussion on hypothesis development. Along the discussion, some past

research will be mentioned as to enhance the point being argued. Moreover, respondents

of the study, sampling methods used and number of respondents will be discussed in the

sampling plan. After that data collection method will give a cue on ways to collect both

primary and secondary data. And then readers will be exposed to the planning of

questionnaire development and its organization. Types of analysis that will be used to

analyze data collected will be listed down. Justifications for each method adopted are

provided the chapter ends with a summary that spells out the nut shell of the whole story.

37


3.2 Research Framework

Figure 2 Research Framework

Figure 3.1 shown above is the theoretical framework for this thesis. The theoretical

framework consists of five independent variables which are brand familiarity, relevant

advertisement, attitudes towards SMS and MMS, brand loyalty, and trust. One dependent

variable is responses of mobile marketing.

38

Responses of mobile marketing

Brand familiarity

Relevant on advertising

Attitudes towards SMS and

MMS

Brand loyalty

Trust


Mobile marketing is a topic of growing interest and importance. While the

evidence of mobile marketing effectiveness is still scarce, marketers around the world are

spending increasing amounts of money on marketing activities in mobile media. This is

due, in large part, to the fact that companies are seeking ways to get better value for their

marketing investments in rapidly changing marketing communications environment.

Mass markets have fragmented, and therefore impersonal mass communication,

especially media advertising, has become less effective whereas targeted one-to-one

marketing communications have become more important (Peppers et al. 1999; Shaw et al.

2001). Mobile innovation creates marketing opportunities and challenges. Mobile media,

for example, transcend traditional communication and support one-to one, many-to-many

and mass communication. Phones and personal digital assistants increase the availability,

frequency and speed of communication. Yet the technology associated with these

devices, which let marketers personally communicate with consumers, continues to

evolve.

The main purpose of the paper is to explore consumers’ responsiveness to mobile

marketing communication compared to email as a marketing media. With mobile

marketing refer to marketing communication where a consumer can be reached anywhere

anytime but specifically in this study to SMS and MMS. From the marketer’s perspective

it would be crucial to know which consumers are open and responsive to such marketing

communication. From an academic perspective the issue of responsiveness to a media is

interesting in itself. It is assumed that the media influences the effect of the marketing

communication in addition to the marketing message. We do, however, not account for

the creative aspect of marketing communication, which is traditionally considered to have

a significant role on the effect of the communication. In this study is applying a

traditional communication perspective in the sense that we only explore responsiveness

to marketer initiated (push) communication as a reaction to this activity. Thus, in this

study it does not imply interactivity within a customer relationship or customer initiated

(pull) communication. Responsiveness to SMS, MMS and email is explored in an

empirical study conducted among a convenience sample of consumers in Finland 2003.

The study is based on interviews with consumers where they respond to different

39


scenarios. An earlier similar study in Finland 2002 (Heinonen and Strandvik 2003) laid

the foundation for the design of this study. That study indicated that the responsiveness

framework captures differences between media as well as indicated that there are

different consumer responsiveness segments.

The independent variables are selected on the basis of reasons that trigger

consumers’ responses of mobile marketing in Malaysia. Mobile marketing offers direct

communication with consumers, anytime and anyplace. Besides advertisings, SMS can

be the powerful tool for do a survey because it collects information quickly, as the

average speed of response (3.3 days) is better than for other survey modes (Heinonen-

Mavrovouniotis, Sarah, 2007). However, most of the people still have the negative

attitude toward SMS ads (Fatim Bamba, Stuart J. Barnes 2007). That is why this paper is

conducted in order to discover the factors that actually trigger the responses towards

mobile marketing in Malaysia. This paper focuses on examining the factors that influence

Malaysia consumers’ intentions to accepting SMS advertising.

Several studies conduced by Nathadej Lertdejdecha from Thailand claimed that

there is a positive relation between relevant on advertising, attitude toward SMS and

MMS, and brand familiarity. A constructive brand attitude possesses cognitive–affective–

conative components and is prominent in the information processing and decision-

making process (Lutz, 1975).Many studies identify the construct of attitude toward a

brand as one of the most important determinants of consumers’ behavioral intentions

(Fishbein and Ajzen, 1975). Some recent research has begun to address the area of brand

and their relationship with consumers (Chauduri and Holbrook, 2001). Does consumption

respond to promotion? Many studies have focused on the effects of promotion on brand

switching, purchase quantity, and stockpiling and have documented that promotion

makes consumers switch brands and purchase earlier or more (Pauwels and Srinivasan,

2004).

Brand loyalty and trust also effect consumers’ responses on mobile marketing

since loyalty consumers would pay attention to advertising to the brand them loyal with.

Trustworthy to certain brands also contribute to consumers’ responses on mobile

40


marketing which will be discussed later in this paper. Trust, particularly the unique

dimensions of transactional security and privacy (Hoffmann et al., 1999), play a critical

role in generating customer loyalty to an e-business. A recent study by Ratnasingham

(1998) has shown that fear of online credit card fraud has been one of the major reasons

customers have not done more extensive online buying especially mobile marketing.

Consumer’s are fears to share personal information to unknown unfamiliar number even

though it is form authorized company because lack of trust. Moreover, privacy concerns

have led to a public relations fiasco for some major businesses resulting in substantial

brand image erosion (Advertising Age, 2000). Trust, which is closely related to security,

is a very important factor in the mobile marketing process. In general, you cannot feel,

smell, or touch the product. You cannot look into the salesperson’s eyes. Therefore, these

ways of developing trust are excluded on mobile marketing. Brand trust usually

contributes to a reduction of uncertainty. In addition, trust is a component of the

attitudinal component of loyalty. So it is obvious that loyalty in general and brand trust in

particular can help to overcome some of the mobile marketing disadvantages, e.g. to

overcome perceptions that the mobile marketing is an unsafe, dishonest, and unreliable

marketplace. In fact, these perceptions are still stopping some potential customers from

doing business on mobile phone. A “third party approval” is a tool to generate trust.

Therefore, by utilizing and adopting these similar studies, this research paper able

to identifies the relationship between these variables in the context of responses on

mobile marketing in Malaysia. In the conclusion, hopefully this paper will be able to

provide useful information to marketers in Malaysia in assisting them to have more

effective strategies in targeting their market on mobile advertising.

41


3.3 Hypotheses Development

There are five hypotheses for this research paper. They are derived from research

objectives and translated to be researchable. The nine hypotheses are as follow:

A findings show that the one of strongest determinant of multinational companies’

mobile advertisings adoption is brand familiarity (Shintaro Okazaki, 2005). An earlier

pilot study conducted by Quios found that in mobile advertising the level of

recognition was surprisingly high: 79 per cent of participants recalled 60 per cent of

mobile advertising (Barnes, 2003). In addition, firms using mobile e-mail campaigns

can attract consumer attention and produce consumer responses to a much greater

degree than other direct marketing channels, because such firms can engage in “one-

to-one dialogue” with customers (Kavassalis et al., 2003). An experimental survey by

Ericsson indicates that 60 per cent of samples liked receiving mobile advertising

(Barnes, 2003). Similarly, surveys using popular brands’ trial mobile advertising

found that as many as 84 per cent of 500 young British adults are likely to

recommend the service to their friends, while only 7 per cent are likely to abandon the

service (Barwise and Strong, 2002). It means that consumers are likely to respond

SMS ads if they are sent from the company that they know or are familiar.

In case of relevance of ads, it means SMS ads are fit and attractive to consumers

(Fatim Bamba; Stuart J. Barnes, 2007). A prior research informs that SMS ads will

have the efficiency when they are sent to consumers with the right information at the

right time in the right place (Bert De Reyck and Zeger Degraeve, 2003). The message

can be tailored for each customer to enable better targeting. Since, mobile phones are

42

H2: There is a significant influence between consumer’s responses on mobile

marketing with relevance on advertisement


marketing with brand familiarity.


personal objects marketers can specifically address the person targeted, as well as

recognising their social context, individual preferences, time, and location (Fatim

Bamba; Stuart J. Barnes, 2007). They consumers are high likely to respond if the

SMS ads are what they are interested. Hence, the fifth hypothesis is relevance to

advertising will influence on responses of Malaysia consumers significantly.

A study also indicates that consumers’ perception have negative attitude toward SMS

ads so the marketers should avoid to ask personal information (Fatim Bamba, Stuart

J. Barnes, 2007). Life style and media habit may cause the attitude. There is a

negative relationship between the volume of ads received and the attitude towards

direct marketing (Phelps et al., 2000). If the consumer is interrupted during his or her

daily activities this can severely damage brand image (Hoyer and MacInnis, 2004).

Petty (2000) describes this cost as an involuntary cost borne by the consumer who

faces an unselected exposure. Another paper say that the innovation attributes-

relative advantage, compatibility, complexity, and trialability- in the diffusion of

innovation perspective are important belief characteristics in explaining consumer

attitudes towards SMS ads (Muk, Alexander, 2007). In this case, one would like to

know Malaysia consumers’ perception toward SMS ads. The seventh hypothesis

developed for this research is attitude towards SMS advertising will influence on

responses of Malaysia consumers significantly.

In this case, trust generally decreases the perceived risk of using services (Garbarino

and Johnson, 1999). In recent study, for example, preceding research (Reichheld et

al., 2000) proposed trust as another important antecedent of loyalty. The trust concept

has been studied in a number of disciplines, and various definitions have been

43


marketing with attitudes towards SMS advertising.


marketing with trust.


proposed (Lewicki et al., 1998). Trust is consistently related to the vulnerability of

the trustor (Bigley and Pearce, 1998) because without vulnerability of the trustor

upon the trustee, trust becomes irrelevant. In business studies, trust has been found to

be important for building and maintaining long-term relationships (Geyskens et al.,

1996). Trustworthy always gets into way in consumers’ purchase behavior. Based on

the Technology Acceptance Model (TAM), this study aims to predict the consumers’

purchase intention by integrating trust and perceived risk into the model to

empirically examine the impacts of key drivers. With 705 samples obtained from

users of Yahoo! Kimo online vendor, this study applied the Structural Equation

Model (SEM) to examine the proposed model. The results indicate that perceived

ease of use (PEOU) and perceived usefulness (PU), trust, as well as perceived risk,

significantly impact purchase intention. Moreover, trust significantly reduced

perceived risk. Same goes to mobile marketing. Trust can affect the level of responses

towards mobile ads or marketing. If retailer couldn’t get consumer’s trust, the

likelihood to get positive response from consumers is massively low.


competitive environments, improving consumers' loyalty to brands permits marketers

to maintain a comfortable and lasting position in the marketplace. Most consumers

will response to any promotion if they are loyal to that brand. At least they will visit

the outlet to see the promotion activity held in that store. In this paper we will also

take a closer look on how brand loyalty affects consumers’ responses towards mobile

marketing. Does loyal consumer to a certain brand respond to mobile ads of other

brand? We will find out later in this paper. Therefore the final hypothesis in this paper

is band loyalty will influence on response of Malaysia consumers.

44


marketing with brand loyalty.


3.4 Sampling Plan

Using a sample in research saves mainly on money and time, if a suitable

sampling strategy is used; appropriate sample size selected and necessary precautions

taken to reduce on sampling and measurement errors, then a sample should yield valid

and reliable information. Before proceed to next procedures, it is important to understand

the meaning of sampling plan for better understanding during this research. According

Webster (1985), to research is to search or investigate exhaustively. It is a careful or

diligent search, studious inquiry or examination especially investigation or

experimentation aimed at the discovery and interpretation of facts, revision of accepted

theories or laws in the light of new facts or practical application of such new or revised

theories or laws, it can also be the collection of information about a particular subject. A

sample is a finite part of a statistical population whose properties are studied to gain

information about the whole (Webster, 1985). When dealing with people, it can be

defined as a set of respondents (people) selected from a larger population for the purpose

of a survey. A population is a group of individual’s persons, objects, or items from which

samples are taken for measurement for example a population of presidents or professors,

books or students.

For the purpose of this project instead of census, sample of the population will be

used as the respondents. According to Mugo Fridah W., there would be no need for

statistical theory if a census rather than a sample was always used to obtain information

about populations. But a census may not be practical and is almost never economical.

There are six main reasons for sampling instead of doing a census. These are Economy,

Timeliness, The large size of many populations, Inaccessibility of some of the

population, Destructiveness of the observation and accuracy. The economic advantage of

using a sample in research obviously, taking a sample requires fewer resources than a

census. For example, let us assume that you are one of the very curious students around.

You have heard so much about the famous Cornell and now that you are there, you want

to hear from the insiders. You want to know what all the students at Cornell think about

the quality of teaching they receive, you know that all the students are different so they

are likely to have different perceptions and you believe you must get all these perceptions

so you decide because you want an in depth view of every student, you will conduct

45


personal interviews with each one of them and you want the results in 20 days only, let us

assume this particular time you are doing your research Cornell has only 20,000 students

and those who are helping are so fast at the interviewing art that together you can

interview at least 10 students per person per day in addition to your 18 credit hours of

course work. Analysis will just be impossible. With the existing of computer programs,

marketers actually can save more time. It is tough and quiet impossible to work for

researcher to analyze the huge amount of data generated by census (Burns and Bush,

2003).

The respondents in this research paper are targeted on MMU students. This is

because, MMU campus is enriched with thousands of local and international students

from different background and it is very easy to found them on campus the sample size

consists of three hundreds respondents. This is to get sufficient information for later data

analysis purpose. Three hundred respondents are believed to provide more accurate

information for this research study.

As a conclusion, sampling method that is adopted is convenience samples.

Samples are drawn at the convenient of interview. The most convenient areas for this

research paper and interviewer are undoubtedly campus, restaurant, Plaza Siswa

cafeteria, library, classes, apartment such as Ixora and Emerald Park, and other residential

area nearer to campus.

3.5 Questionnaire Development.

Basically the questionnaire contains of two sections. The questionnaire is

basically started with brief introduction about the purpose of this survey. And then is

followed by the instruction to the respondents in answering the questionnaire.

Section A is compromised of four demographic question which is age, gender,

educational level, occupation. This data is essential in running the descriptive analysis

which is very important in identifying the relationship between demographic variables

with independent variables and dependent variables. Then there will be question to know

basic information about mobile ads.

46


Then question will be followed by section B which has five parts. Every part will

contain the questions regarding the five variables. Each part carries five questions

regarding each variable that influence on responses of Malaysia consumers significantly.

Another variable which is demographics variable already covered in section A.

Part 1- brand familiarity would ask question about consumers brand awareness,

Part 2- Relevant on ads would be questions such as consumers level of responses towards

ads that been send in suitable time, place and information that suit consumers interest,

Part 3- Attitudes towards SMS and MMS emphasizes questions such as consumers

perception on data privacy such as personal information. Consumers’ willingness to

provide their private data through mobile marketing and consumers’ perception towards

SMS ads, Part 4- Brand loyalty would be questions exploring whether loyal consumers’

have the likelihood to response on mobile marketing and last but not least Part 5- Trust

would emphasize questions such as consumers’ level of trustworthy on mobile marketing

and to explore the relationship between their level of trusts and responses of SMS and

MMS ads. All of the question would be both close ended, open ended, and Likert scale

which provides a battery of attitude statements.

Structure of questionnaire will follow an easy to difficult sequence to facilitate

respondents’ ease of understanding and answering questions. Initially section A will

serve as the warm up questions and follow by other sections’ complicated questions that

will be more opinion-based.

3.6 Data Collection

The data collection methods that are used in this research paper are categorized into

two groups which are primary and secondary data. Primary data is unprocessed data

gathered for the first time by the researcher. Under primary data collection method,

survey will be used to obtain the necessary data. The use of primary data will provide

five advantages. The five advantages are; standardization, ease of administration, ability

47


to tap the unseen, suitability to tabulation and statistical analysis and the last advantage is

sensitivity to subgroup differences.

As for the primary data collection, self-administered survey will be adopted. This

survey will allow the respondents to complete the survey questions on their own without

any interview going to take place. This method is attractive in term of costs saving and

also gives the respondents to control the pace at which they fill the survey questions.

The method that is going to be used in this survey is questionnaires. The

questionnaires will be prepared and distributed all around campus. The potential

respondents will fill up the survey questions on their own. No interview will be

conducted unless the respondent has few doubts and need the interviewer’s explanation.

This is to avoid the respondents feeling uncomfortable on certain sensitive issues.

Secondary data is data that is neither collected directly by the user or specifically for

the user. For secondary data collection, most of the information is obtain through internet,

books and journals. For the internet, most frequent website that had been accessed is

Wikipedia. The author borrowed the books from the library to get the information

needed.

The use of secondary data is very convenient because it can be obtained quickly and

economically through the internet and also in the campus library. Free access that had

been provided by the university into the online journals and articles has saved a lot of

time and money. The secondary data can avoid data collection problems and it provides a

basis for comparisons. In addition to that, secondary data also able to provide the

inclusive framework in the process of completing this research paper. The secondary data

has provided many guidelines in completing this research paper.

48


3.6.1 Primary Data Collection

Under primary data collection, survey is used to obtain data needed. The key

point here is that the data collected is unique to this research and, until it is publish, no

one else has access to it. As compared to other data collection methods, survey method

allows the collection of huge amount of data in an economical manner. Besides that it

also provided five advantages which are (1) standardization, (2) ease of administration,

(3) ability to tap the unseen, (4) suitability to tabulation and statistical analysis and last

but not least (5) sensitivity to subgroup differences (Burns and Bush, 2003).

As for the mode of data collection, self-administered surveys that allow the

respondents to complete the survey on this or her oneself were adopted. It is attractive in

terms of costs saving, gave respondents control the pace at which they fill survey and

avoid interviewer-evaluation apprehension (Burns and Bush, 2003). The following two

paragraphs are describing the manners used for distributing questionnaire.

The questionnaires will be distributed in campus and areas that are nearer to

campus. Drop-off approach issued to distribute questionnaire. Prospective respondent is

approached, introduced with general purpose of the survey and questionnaire left to

respondents to fill out on his or her own. This method is used because it is suitable for

local market survey, have quick turnaround, minimal interviewer influence on answer,

high responses rates and inexpensive according to one article in

www.emeraldinsight.com.

Interviewer then will provide questionnaire and a brief introduction to the

respondents and then let them to fill up the questionnaire on his or her own. It is without

interview, unless the respondent has doubt and need interviewer’s explanation. This is to

avoid respondents’ confusion and misinterpreted question in the questionnaire. This

method is very easy and saving time (Burns and Bush 2003).

49

http://www.emeraldinsight.com/


3.6.2 Secondary Data Collection

For secondary data collection, it is accumulated mostly through online

information that collected by other researcher, other than the user. Secondary data

analysis saves time that would otherwise be spent collecting data and, particularly in the

case of quantitative data, provides larger and higher-quality databases than would be

unfeasible for any individual researcher to collect on their own. In addition to that,

analysts of social and economic change consider secondary data essential, since it is

impossible to conduct a new survey that can adequately capture past change and/or

developments according to a source in http://en.wikipedia.org/wiki/Secondary_data.

Online databases that have been accessed are Emerald Insight and other internet sources

such as news articles, reports or statistics. Most of the journals are collected from Journal

of Mobile Marketing topics such as “Consumers’ Perception of the Effectiveness of Short

Message Service (SMS) and Multimedia Message Service (MMS) as Marketing Tools”.

Free access provided by the university like free wireless services, computer lab and

libraries has saved a lot of costs and time.

3.7 Data Analysis

After collecting questionnaires from respondents and keying data entry, the data

will be used for analysis by running descriptive analysis and hypothesis testing. First of

all, data analysis is a process of gathering, modeling, and transforming data with the goal

of highlighting useful information, suggesting conclusions, and supporting decision

making. Data analysis has multiple facets and approaches, encompassing diverse

techniques under a variety of names, in different business, science, and social science

domains. In RobertNiles.com quote “You wouldn't buy a car or a house without asking

some questions about it first. So don't go buying into someone else's data without asking

questions, either. Okay, you're saying... but with data there are no tires to kick, no doors

to slam, no basement walls to check for water damage. Just numbers, graphs and other

scary statistical things that are causing you to have bad flashbacks to your last income tax

return”. This quote emphasize data analysis is very crucial in a research. By analyze all

consumer data from questionnaire; the result would not be questionable since the data

50

http://en.wikipedia.org/wiki/Information

http://en.wikipedia.org/wiki/Data

http://en.wikipedia.org/wiki/Secondary_data.%20Online

http://en.wikipedia.org/wiki/Secondary_data.%20Online


came throughout real survey and information. Deeper understanding about data analysis

will be discussed later in this paper.

3.7.1 Descriptive Analysis

First of all descriptive analysis will be used to analyze the data obtained (Burns

and Bush, 2003). As the outcome of the analysis will get a mean, frequency, standard

deviation and percentage of frequency, this analysis method is applied onto both section

of the questionnaire. It is used to describe the question responses in a data matrix (all

respondents’ answers). For instance, it identifies variable that has the highest mean or

standard deviation. Descriptive measures are used at the early stage of analysis processes

because it will form the foundation for subsequent analysis. Each figure obtain will be

explained and justified after completing the descriptive analysis. Moreover, independent

sample t-test will also be used to test and compare the means or percentage of two

different groups or samples.

For the case of demographic, some research believe that age, mobile phone users

16 to 45 years old are receptive to experience SMS marketing (Pastore 2002), and gender,

females have more likely to respond SMS ads (Trappey, 2005), play the critical role of

response to SMS ads. In addition, there are 6 external factors; simplicity of input method

or input language, economic development which substitute for less developed

information structure, cultural difference, marketing competition which substitute for

pricier voice service in a noncompetitive market, business model which enhance

information richness and benefit from positive feedback in value web, and political

censorship (Xu Yan, 2006). However, most of the people still have the negative attitude

toward SMS ads (Stuart J. Barnes 2007). Besides advertisings, SMS can be the powerful

tool for do a survey because it collects information quickly, as the average speed of

response (3.3 days) is better than for other survey modes (Heinonen-Mavrovouniotis,

2007).

Education and occupation also play major roles in determining level of response

towards m-marketing. The higher the level of education, the more knowledge they have

about the innovation of mobile communication and the usage of mobile phone. The 51


occupation which involve high technology or work with technology may be likely to

respond SMS ads because they have knowledge about technology and know how to use

the technology, SMS ads, to get more benefit.

A central psychological determinant of consumer behavior is an individual’s

knowledge. Existing knowledge affects the cognitive processes related to a consumer’s

decisions and is thus also an important determinant of the acceptance decision. A

consumer’s existing knowledge determines his ability to understand the features and

usage of an innovation. Existing knowledge thus affects the consumer’s perception of the

innovation’s complexity [Moreau et al. 2001, p. 15]. The innovation is perceived to be

less complex if the consumer already possesses a certain amount of knowledge about the

innovation itself or about a product similar to it [Sheth 1968]. In this case, the knowledge

relevant to reducing the perceived complexity of mobile marketing is the knowledge

about mobile communications.

Mobile communications technology provides the technological basis for mobile

marketing. The more familiar a consumer is with mobile communications in general the

less difficult the use of mobile marketing services will appear to him/her. According to

diffusion theory, a negative relationship can be presumed between the perceived

complexity of an innovation and its acceptance. In compliance with the conceptualization

of the acceptance construct in this study, the relationship between the perceived

complexity of mobile marketing and the attitude towards it can be assumed as being

negative. Since the perceived complexity of mobile marketing is again negatively

influenced by existing knowledge about mobile communications, it can thus be

hypothesized [Harnischfeger et al. 1999]. Therefore, conclusion can be made, the higher

the existing knowledge about mobile communications the more positive the attitude

towards mobile marketing.

52


3.7.2 Reliability Analysis

Aside from that, all variables are to be tested via reliability analysis. Reliability

refers to the extent to which a scale produces consistent results if repeated measurements

are made. Therefore, reliability can be defined as the extant to which measures are free

from random errors. The purpose of reliability analysis is to construct reliable

measurement scales, to improve existing scales and most importantly to evaluate the

reliability of the questions. This is vitally important for without reliability, research

results will be replicable. Normality test will also be conducted in this chapter.

Researchers can carry out normality test on the metric data to establish the normality of

the data. Upon completing the normality test, the type of test to use in hypothesis testing

can then be determined.

3.7.3 Significant Differences Test

This test of significant differences is used to compare the sample statistics of two

subgroups in the sample to see whether or not there are statistically significant

differences between their corresponding population values (Burns and Bush, 2003).

Customers’ response has been selected for significant differences based on gender.

Sample t- test will be used to test and compare the means or percentages of two different

groups or samples. In the t-test, independent sample t-test between gender and customers’

responses will be measure.

3.7.4 Hypothesis Testing

Hypothesis testing is carried out to prove propositions not long after conducting a

normality test. This test is run by making use of correlation test. There are two levels of

correlation tests. The first level is conducting normality testing. If it is normally

distributed, , Pearson Correlation (r) will be conducted and if the data is not normally

distributed, Spearman Rho will be conducted to measure the associations of the variables

testes for hypothesis.

53


3.7.5 Other Testing

From this statistics, researchers are able to discover the relationship between the

dependant variables and independent variables. T-test, analysis of variance, Bivariate

Correlation and Regression, Cross Tabulation, Multivariate Data Analysis and

Correlation coefficient (r) are among the tests that will be performed during hypothesis

testing. Finally, a discussion of findings is held to analyze all results found from the

descriptive analysis, reliability analysis, significant differences test, normality test and

hypothesis testing. In this section, all results from the analysis will be explained in detail.

54


CHAPTER 4: RESULT AND DISCUSSION

4.1. Introduction

After accomplished distributing the questionnaire to 250 respondents, data

analysis is conducted using statistical tool used in this research which is the Statistical

Package for the Social Sciences (SPSS) version 18.0 to measure the reliability and

consistency of scale data, descriptive analysis and also the hypothesis test in this

research. Previous research claim that the reliability analysis of these scales will yielded

favorable results and all of the value of Cronbach’s alphas exceeded the recommended

value 0.6 is consider a high degree of reliability (Ha, 2004, Nunnally, 1978, Malhotra,

1993). After all, the descriptive statistic will be conducted before the reliability analysis

because the respondent profile should be measured before testing the reliability for this

research. Moreover, this chapter exhibits the outcomes or findings for each hypothesis

tests in this study. Therefore, after measuring the descriptive analysis and the reliability

of the data, the hypothesis testing is conducted in order to measure the associations

between the variables. If the data is normally distributed, Pearson Correlation (r) will be

conducted and if the data is not normally distributed, Spearman Rho will be conducted to

measure the associations of the variables testes for hypothesis.

4.2 Pilot Test

4.2.1 Reliability Testing

Prior to the main study, a pilot test was undertaken to ascertain the validity and

reliability of the measures used. The objective of a pilot study is also to replicate the

study on a smaller scale so as to avoid possible mistakes being made in the final research.

The pilot test was conducted among randomly selected 10 Faculty of Business (FBL)

students who were studying at Multimedia University (MMU). Generally, the

respondents were able to complete the questionnaire without any assistance. The overall

pilot test showed that there was a minor change or revision needed for the questionnaire

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before the questionnaire could be used for the main survey. The time taken to complete

the questionnaire was around 2 hours.

4.3 Demographic Profile

Table 1 : Respondent’s gender

Frequency Percent Valid Percent Cumulative Percent

Valid Female 106 42.4 42.4 42.4

Male 144 57.6 57.6 100.0

Total 250 100.0 100.0

In this study, the questionnaires were distributed to female and male and the result for

descriptive statistic conducted illustrate that female is 42.4% and male is 57.6%

respondents as shown in Table 1. It is because from a study conducted by Ahasanul

Haque and Noor Raihan on Mobile Commerce: An evaluate Customer Perception For

Marketing Strategy In Malaysia claims that mostly male respondents showed favorable

attitudes to use mobile technology compared to female respondents. In addition, male

respondents showed their interest for pertaining information, such as financial

information, stock price, sports and game, and travel quick and timely. It is evident from

study that customers always search for more value added services when using their

mobile devices.

Figure 3: Respondents’ Gender Participate in this Study

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The chart above in Figure 1 illustrates the difference between female and male

respondents that participate in this study. Basically, percentage of male respondents is

higher than female respondents. It is evident from this study that male customers always

search for more value added services when using their mobile devices. However, they

rarely response to mobile marketing because they are more interested in seeking

information such as financial information, stock price, sports and game, and travel rather

than response to mobile advertising. Thus, there are 144 male and 106 female

respondents contribute in this study.

Table 2: Respondents’ Age Range


Valid 18-19 years old 13 5.2 5.2 5.2

20-21 years old 55 22.0 22.0 27.2

22-23 years old 147 58.8 58.8 86.0

24-25 years old 35 14.0 14.0 100.0

Total 250 100.0 100.0

The descriptive statistics result for age range is shown in Table 2 above. This research

specifically aims for students in Multimedia University, Malacca age range between 18-

25 years old. Hence, the results shown that most of students at the age of 22 to 23 years

old are highly participated in this study followed by students at the age of 20 to 21 years

old, 24-25 years old, and at the last place is at the age between 18-19 years old.

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Figure 4: Respondents’ Age Range Percentage

The figure 2 above illustrates that students at the age of 22 to 23 years old are the biggest

group that participate in this study because most of them are degree holder. The number

of degree holder student is the highest in Multimedia University, Malacca. Other group

are fewer in number which is between age range between 18 to 19 years old normally is

foundation student, 20 to 21years old is diploma student, and 24 to 25 years old is master

student or higher.

Table 3: Respondent’s working status


Valid Working 38 15.2 15.2 15.2

Not working

212 84.8 84.8 100.0

Total 250 100.0 100.0

Table 3 above is descriptive statistic for respondent’s occupation status which shown that

212 students are not working at all and 38 students are working in other means taking

part-time job apart from studying. This is because high numbers of student more focus on

their study rather than intention to work.

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Figure 5: Respondent’s working status percentage

Figure 3 above illustrates that student that working is very low in Multimedia University,

Malacca which shown 85% are not working and only 15% are working or take part-time

job. Later in this paper will discuss whether working status of consumers has effect on

the response of SMS-based mobile advertising.

Table 4: Respondent’s Income Level Range


Valid RM250 and less 75 30.0 30.0 30.0

RM250 – RM500 90 36.0 36.0 66.0

RM501 – RM 1,000

65 26.0 26.0 92.0

RM1,001 – RM 1,500

12 4.8 4.8 96.8

RM1,500 and above

8 3.2 3.2 100.0

Total 250 100.0 100.0

The descriptive statistics result from student’s income level. Student’s income level is

actually their monthly allowances as well as income from student who have part-time job.

As shown in Table 4, most the students participate in this study have monthly allowances

that are between RM250 to RM500.

Figure 6: Respondent’s Income Level Percentage59


Figure 4 illustrates above shown that the highest percentage of student’s income level is

between RM250 to RM500 which is 36%, 30% between RM250 and less, followed by

26% between RM501 to RM1, 000, 5% between RM1, 001 to RM 1, 500 and taking at

last place is 3% which consume RM1, 500 and above. Students that consume RM1500

and above are mostly that take part-time job which sum their monthly allowance let say

RM250 add up with their income normally at range between RM700 to RM800.

Therefore total up with a high income level per month. Hence it is reasonable to say that

student also has a high income level.

Table 5: Respondent’s Education Level

Frequency Percent Valid PercentCumulative Percent

Valid Diploma 12 4.8 4.8 4.8

Degree 219 87.6 87.6 92.4

Master 1 .4 .4 92.8

Others 18 7.2 7.2 100.0

Total 250 100.0 100.0

Figure 7: Respondent’s education level graph60


Table 5 is descriptive analysis result of respondent’s education level in this research. As

stated in table above, Degree holder student take the highest number which is 219 over

250 respondents. Others holder such as Diploma is 12 respondents, Master only 1

respondent. Others are actually foundation holder which is 18 respondents. Due to several

limitations the PHD holder is hard to obtain. Figure 5 on the other hand is the graph of

respondent’s education level in Multimedia University, Malacca. The graph shows

clearer view on number of respondents in this research in term of their education level.

Table 6: Respondent’s that owned a hand phone


Valid Owned a hand phone

250 100.0 100.0 100.0

Table 6 is descriptive statistic of respondent’s that owned a hand phone. A findings of a

total 250 respondent’s in this research own a hand phone which shows that there is no

problem at all for students to response on mobile marketing. It is only the matter of

whether those have intention to look, open, and reply to SMS-based mobile advertising or

not.

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Table 7: Respondent’s awareness on SMS-based mobile advertising

Frequency Percent Valid PercentCumulative

Percent

Valid Yes 151 60.4 60.4 60.4

No 99 39.6 39.6 100.0

Total 250 100.0 100.0

Table 7 shows descriptive statistics on level of awareness of SMS-based mobile

advertising in this research. Surprisingly, quite numbers of respondent’s still aren’t aware

of the existing of mobile marketing which is only 155 respondents answer ‘yes’ and 99

respondents answers ‘no’ respectively to question that measure the level of consumer’s

awareness toward SMS-based mobile advertising. This doesn’t mean that they have no

idea regarding the existence of it. Most of respondents admit that they didn’t realize the

message they received daily is actually called SMS-based mobile advertising or widely

known as mobile marketing.

Figure 8: Respondent’s Level of Awareness Percentage

Figure 7 above shows that 62% and 38% of respondent’s says ‘yes’ and ‘no’ respectively

to question number 7 which is intend to measure consumer’s level of awareness towards

SMS-mobile advertising.

Table 8: Respondent’s number of SMS-based mobile advertising replied in a week62


Frequency PercentValid

PercentCumulative Percent

Valid Once 17 6.8 10.7 10.7

Twice 29 11.6 18.2 28.9

More than three times

2 .8 1.3 30.2

Never ( not bothered)

111 44.4 69.8 100.0

Total 151 63.6 100.0Skipped this

question99 36.4

Total 250 100.0

Figure 9: Number of SMS-based mobile advertising replied by respondents in a week graph

Table and figure 8 above is the numbers of SMS-based mobile advertising have replied

by respondents in a week. A total of 111 respondents say that they do not bothered to

response to SMS-based mobile advertising even though they open and read it. 17

respondents response to it once, 29 respondents response twice and only 2 respondents

response 2 times in a week. A total of 151 over 250 respondents aware the existence of

mobile marketing and have response to it. Respondents that skipped this question mean

they answer ‘no’ to the previous question on awareness of mobile marketing. Indirectly it

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tells that respondents whom did not aware about mobile marketing did not response at all

or did not bother to open the message at all. Hence, it creates cause of action of deleting it

immediately without looking at it.

4.4 Reliability Testing

After the questionnaire is distributed the reliability of the data collected was

tested. For reliability analysis, the independent variables in this study was measured

which are brand familiarity, relevance on advertisement, attitude towards SMS

advertising, Brand loyalty, and trust. The reliability test will indicates that the reliability

of the questionnaire. Although there is no specific minimum value for the alpha

coefficient, ‘a higher value indicating a higher degree of internal consistency or

reliability’ (Gravetter and Forzano 2003, p. 391) is expected. Furthermore, it is noted that

the reliability coefficient that is above 0.70 is considered reliable and acceptable mostly

in social science research situation (ats.ucla, 2009).

4.4.1 Brand Familiarity

Table 9: Reliability Analysis for Brand Familiarity

Reliability Statistics

Cronbach's AlphaCronbach's Alpha Based on

Standardized Items N of Items

.784 .791 7

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Item Statistics

I probably response to SMS-based mobile ads if:Mean

Std. Deviation N

25. I am familiar with the products/services brand name 2.6720 .89421 25026. The brand name previously used by family & friends 2.7440 .81061 25027. I have no idea about the product’s brand name 2.9440 .88544 25028. It is not necessarily I response to SMS-base mobile ads even though I am familiar with the product’s brand name

2.9240 .74864 250

29. The products/services captured my interest even though I have no idea about the brand name

2.4840 .95782 250

30. I have experience using the products/services before 2.4160 1.05041 25031. Brand familiarity does not influence my response towards SMS-based mobile ads

2.4680 1.01444 250

As discussed earlier in this study, brand familiarity is the independent variable that is

believes to influence consumer on response of mobile marketing. The result as shown in

Table 9 indicates that the reliability statistic for this variable is reliable for data analysis

because the Cronbach’s Alpha score is 0.784. The reliability shown above is high and it

is more than 0.700. This is because specifically the familiarity of the brand sponsor of an

advertisement will moderate the way in which repetition influences consumer response to

that ads.

4.4.2 Relevance on Advertisement

Table 10: Reliability Analysis for Relevance on Advertisement


Cronbach'sAlpha

Cronbach's Alpha Based on Standardized Items N of Items

.660 .660 7

65


Item Statistics

MeanStd. Deviation N

32. I probably respond to SMS-based mobile advertising every time I received one

1.8960 1.01256 250

33. I probably respond to SMS-based mobile advertising if the product/services captured my interest

2.4040 .90113 250

34. I probably NOT respond to SMS-based mobile advertising that I received at my work place/class because it create disturbance to me

2.8440 .92035 250

35. I probably NOT respond to SMS-based mobile advertising that I received during my time at home because it is time for me to rest and enjoy my leisure moment

2.6760 .92001 250

36. I don’t mind response to SMS-based mobile advertising anytime 1.9800 .91595 25037. Brand information is important for me before I response to any SMS-based mobile advertising

2.8200 .86173 250

38. Relevance on advertisement does not influence my response to wards SMS-based mobile advertising

2.4240 .93795 250

The other independent variable in this study is Relevance on Advertisement and the

reliability test was also conducted to measure the reliability of this variable. Basically,

there are 7 items or questions asked to measure the reliability of this variable as shown in

Table 10. However, the score for Cronbach’s Alpha is very low because alpha is 0.660

and less than 0.700. Hence, the results of reliability test illustrate that this variable is not

reliable for data analysis. It is because human behavior is unpredictable. Even though

advertisement is sent to consumers at right time and place, their attitude is also very

crucial. Individual attitude is varying each time they received ads. Positive attitudes have

a high likelihood for them to response rather than individual with negatives attitudes.

Therefore, it is reasonable to say that individual attitudes determine their response

towards mobile marketing more than the content itself.

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4.4.3 Attitude towards SMS Advertising:

Table 11: Reliability Analysis for Attitude towards SMS Advertising


Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items

.626 .629 9

Item Statistics

MeanStd. Deviation N

39. I probably respond to SMS-based mobile advertising every time I received one

2.0480 1.05933 250

40. I probably search for information about the SMS-based mobile advertising before I response

2.3040 1.09562 250

41. I probably NOT response to the same SMS-based mobile advertising that I have response before

2.8760 1.05502 250

42. I tend to at least open the SMS-based mobile advertising that I received, even though I am not interested to it

2.6080 .93908 250

43. If I am not interested to SMS-based mobile advertising that I received, I will spread the information to friends and family who interested to it

2.3080 1.11089 250

44. I probably delete SMS-based mobile advertising that I received if I am NOT interested to it

3.2160 1.04581 250

45. I do not encourage my family and friends to response to SMS-based mobile advertising if I have bad experience from that brand name

3.0360 .98314 250

46. I don’t mind to received and freely response SMS-based based mobile advertising anytime , anywhere

2.3960 .99758 250

47. My attitude doesn’t influence my response towards SMS-based mobile advertising

2.7840 .87430 250

The third variables to be discuss here is attitude towards SMS advertising. The

Cronbach’s Alpha score for this variable is 0.626 which mean this variable is not reliable

because as discussed earlier, if the alpha scores is less than 0.70 is consider that the

variable is reliable. Furthermore, in earlier discussion mentioned that consumer behavior

is difficult to determine. Therefore, it is reasonable to say that the results of reliability test

illustrate not reliable for data analysis.

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4.4.4 Brand Loyalty

Table 12: Reliability Analysis for Brand Loyalty



.695 .697 8

Item Statistics

Mean Std. Deviation N48. Brand name is a very important for me before I response to SMS-based mobile advertising

2.9920 .89169 250

49. I probably response to SMS-based mobile advertising if I am loyal to that brand name

2.8040 .95142 250

50. I probably NOT response to SMS-based mobile advertising that is not recommended by my friends and family

2.7600 .90868 250

51. I probably NOT response to product/services that I never tried before

2.7640 .87140 250

52. I probably response immediately to new product/services offer through SMS-based mobile advertising

2.2280 .93139 250

53. I do not mind trying new product/ services promote through SMS-based mobile advertising

2.3920 .93479 250

54. I probably delete SMS-based mobile advertising after I received if I never heard about the brand name

3.0800 .93654 250

55. I probably response to SMS-based mobile advertising if the product/services previously used by my family and friends

2.6720 .96755 250

The fourth variable discuss here is brand loyalty. The Cronbach’s Alpha score for this

variable is 0.695 which mean this variable is almost reliable if rounded the number up, it

is equal to 0.70. If the alpha scores are equal to 0.70, it is consider that the variable is

reliable. Question 54 gets the highest mean which is 3.0800. This means most of

respondents tend to agree on this question. It shows that brand loyalty contributes to

major response of mobile marketing as consumers admit that they probably delete SMS-

based mobile advertising if they never heard about the brand name. By this proves how

loyalty to a brand name has influence consumer in order for them to response towards

SMS-based advertisement. Hence, it is reasonable to say that the results of reliability test

illustrate are reliable for data analysis.

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4.4.5 Trust

Table 13: Reliability Testing for Trust



.755 .759 8

Item Statistics

Mean Std. Deviation N

56. I trust SMS-mobile advertising 2.1200 .95774 25057. I probably response to SMS-based mobile advertising recommended by my friends and family

2.3560 .93850 250

58. I probably NOT response to SMS-based mobile advertising if I do not trust the brand

3.3500 .89523 250

59. I probably NOT response to SMS-based mobile advertising if they asked for personal information

2.9640 1.05411 250

60. I probably NOT response to brand name that I never heard before 2.9000 1.05758 25061. I probably NOT response to brand name that have negative reputation/image

3.1440 1.00364 250

62. Brand information is very important before I response to SMS-based mobile advertising

2.8800 1.05358 250

63. I do not mind to take risk when response to SMS-based mobile advertising

2.1320 1.11334 250

Trust is another independent variable that going to be discuss. The Cronbach’s Alpha

score for this variable is 0.755 which means this variable is reliable because the value is

again more than 0.70. This is because to gain consumer’s trust is the most challenging

aspect when company launching marketing strategy. Same goes in mobile marketing

industry with the ever growing possibilities of connecting with the consumer that the

mobile device offers comes the key challenge of overcoming the threat of breaches of

consumer privacy that fraudsters, spammers and phishing attacks present. Taking

everything into consideration, building trust and faith amongst consumers is central to

building a relationship with the brand. Refer to the table above, in average respondents

view trust issues in serious consideration before them response to mobile advertising.

Hence, it is reasonable to say that the results of reliability test illustrate are reliable for

data analysis.

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4.5 Significant Differences Test

This test of significant differences is used to compare the sample statistics of two groups

in the sample to see whether or not there are statistically significant differences between

their corresponding population values (Burns and Bush, 2003).

4.5.1 Significant Differences between Gender and Response of Mobile Marketing

Gender N Mean Std. Deviation t Sig.

Male

Female

144

106

3.4597

2.9057

0.78144

0.928403.837 0.000

Table 14: Significant Differences between Gender and Response of Mobile Marketing

The table above is equal variances assumed since the significant value for the

Levene’s Test is greater than 0.05 which is 0.134. It can be seen in Table 14 that male

students (Mean=3.46; SD=0.781) have relatively higher likelihood to response towards

mobile advertising than females (Mean=2.91; SD=0.928). Since the significant value for

the test is 0.000 which is less than 0.05, it indicates that there is significant difference

between gender and level of response in mobile marketing.

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4.6. Hypothesis Testing

In this study, the first test for hypothesis testing is to examine the normality of the

data therefore normality test was conducted. After the result shows that the data is not

normally distributed, the test for associations will be conducted. Therefore, Spearman’s

Rho test is conducted in this study to measure the association between the variables.

Moreover, this analysis is also to measure the hypothesis and identify whether there is a

significant relation between variables tested in this study. As a result of this analysis the

hypothesis is clarify whether it is rejected or accepted for this research. At the end of

hypothesis testing, the relationship between variables will be discussed. Thus, this is to

clarify the acceptance of the entire hypothesis in this study. Relationship between

independent variable and dependent variable has created the hypothesis for this study

therefore after conducting several tests for hypothesis testing such as Spearman’s Rho

analysis, the outcome should be clarify and prove that there is a relationship and

association between dependent and independent variables.

4.6.1. Normality Test

The normality test is conducted in this study to determine whether the data

collected are normally distributed or not normally distributed. As the results indicate in

Table 14 to Table 18, the data in this study is not normally distributed because the

significant level or p-value is less than 5%. Therefore, Spearman’s Rho test should be

conducted in order to examine and identify the test for associations between variables to

test the hypothesis.

Table 14: Normality Test for Brand familiarity

Tests of Normality

Kolmogorov-Smirnova Shapiro-Wilk

Statistic df Sig. Statistic df Sig.

Brand Familiarity .340 250 .000 .881 250 .000

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Table 15: Normality Test for Relevance on advertisement

Tests of Normality



Relevance on Advertisement .323 250 .000 .869 250 .000

Table 16: Normality Test for Attitude towards SMS advertising

Tests of Normality



Attitude towards SMS advertising .349 250 .000 .866 250 .000

Table 17: Normality Test for Brand loyalty

Tests of Normality



Brand loyalty .304 250 .000 .874 250 .000

Table 18: Normality Test for Trust

Tests of Normality



Trust .278 250 .000 .856 250 .000

Herewith, as discussed earlier in this study the normality test is conducted in order to measure the

normality of data distribution. After the test of normality conducted, test of association need to be measured

between dependent and independent variable to clarify the relationship. The result of normality test portray

that Spearman’s Rho test should be used to test the hypothesis and examine the association because the data is

not normally distributed with the value of significant is less than 5% for all independent variables.

72


4.6.2. Spearman’s Rho Analysis

The results for Spearman Rho are shown below. According to Wellesley.edu

(2009) and SPSS guideline (1998), the association is stronger when the correlation is near

to +1 or -1 and the relation is not linear between two variables when the significance

level of less than 5% is not obtained. However, this result shows that the variable has

significant association and positive relationship between both variables.

The associations of two variables depends on the direction of the correlation, if

the correlation is positive means the two variables have a positive relationship and if the

correlation is negative means the variable have negative relationship or inversely related

(Wellesley.edu, 2009). In this study the correlation is positive therefore; the hypothesis in

this research is positively related. Moreover, there is a significant relationship between

the two variables for this study because the value is close to 0.05 and less means there is

a significant relationship (Stanford.edu, 2009).

Result of Analysis

Spearman Rho between independent and dependent variable in the study

Table 19: Correlation: (Does level of response connect with brand familiarity)

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Correlations

Level of response

Brand familiarity

Spearman's rho Level of response Correlation Coefficient

1.000 .453**

Sig. (2-tailed) . .000

N 250 250

Brand familiarity Correlation Coefficient

.453** 1.000

Sig. (2-tailed) .000 .

N 250 250

**. Correlation is significant at the 0.01 level (2-tailed).

Explanation about the analysis:

After the measurement, the test result between level of response and brand familiarity

among Malaysian respondents has a positive relationship. From the result in Spearman

Rho correlation in table 19 yield a rho value (p-value) of 0.453 which means as discussed

earlier if the p-value is near to +1 the association is stronger and the significance level is

less than 5%. This indicates that the hypothesis between the two variables has significant

relationship because the significant value is 0.000. Due to this, hypothesis 1 is accepted.

Brand familiarity is significantly correlated with the level of consumer’s responses on

mobile marketing.

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marketing with brand familiarity.


Table 20: Correlation: (Does level of response connect with relevance on advertisement)

Correlations

Level of response

Relevance on advertisement


1.000 .527**


N 250 250

Relevance on advertisement

Correlation Coefficient

.527** 1.000


N 250 250



The test result between level of response and relevance on advertisement among

Malaysian respondents has a positive relationship. From the result in Spearman Rho

correlation in table 20 yield a rho value (p-value) of 0.527 which means as discussed




Relevance on advertisement is significantly correlated with the level of consumer’s

responses on mobile marketing.

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marketing with relevance on advertisement


Table 21: Correlation: (Does level of response connect with attitude towards SMS

advertising)

Correlations

Level of response

Attitude towards SMS ads


1.000 .369**


N 250 250

Attitude towards ads Correlation Coefficient

.369** 1.000


N 250 250



The test result between level of response and relevance on advertisement among

Malaysian respondents has a positive relationship. From the result in Spearman Rho

correlation in table 21 yield a rho value (p-value) of 0.369 which means as discussed




Attitude toward SMS advertising is significantly correlated with the level of consumer’s

responses on mobile marketing.

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marketing with attitude towards SMS advertising


Table 22: Correlation: (Does level of response connect with brand loyalty)

Correlations

Level of response Brand loyalty


1.000 .310**


N 250 250

Brand Loyalty Correlation Coefficient

.310** 1.000


N 250 250



This time hypothesis four is tested. Table 22 above is the result between the levels of

response with brand loyalty. The teston attitude towards SMS advertising has a positive

relationship. From the result in Spearman Rho correlation in table 22 yield a rho value (p-

value) of 0.310 which means as discussed earlier if the p-value is near to +1 the

association is stronger and the significance level is less than 5%. This indicates that the

hypothesis between the two variables has significant relationship because the significant

value is 0.000. Due to this, hypothesis 4 is accepted. Attitude towards SMS advertising is

significantly correlated with the level of consumer’s responses on mobile marketing.

77


marketing with brand loyalty


Table 23: Correlation: (Does level of response connect with brand trust)

Correlations

Level of response Trust


1.000 .469**


N 250 250

Trust Correlation Coefficient

.469** 1.000


N 250 250



The last hypothesis going to be discussing here is trust. The test result between level of

response and trust among Malaysian respondents also has a positive relationship. From

the result in Spearman Rho correlation in table 22 yield a rho value (p-value) of 0.469

which means as discussed earlier if the p-value is near to +1 the association is stronger

and the significance level is less than 5%. This indicates that the hypothesis between the

two variables has significant relationship because the significant value is 0.000. Due to

this, hypothesis 5 also not rejected. Trust is significantly correlated with the level of

consumer’s responses on mobile marketing.

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marketing with brand trust


4.7 Conclusion

Thus, all the independent variables which are brand familiarity, relevance on

advertisement, attitude towards SMS advertising, brand loyalty, and trust have

statistically significant relation with the dependent variable in this study which is level of

response on mobile advertising. The result for all the analysis tested in hypothesis testing

has proven and clarify that the variables have significant influence and association.

Moreover, the hypothesis tested in this study indicates that the independent variables are

positively related with the dependent variable.

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CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Chapter Overview:

This chapter summarizes and discusses the findings of the results arising from the

research questions and the hypotheses. Secondly, implications of the study and

recommendations for action are discussed. The chapter concludes with the limitations of

the study and the conclusion of the study.

5.2 Discussion of Findings

Summary

Herewith all the findings on the factors that influence response of mobile

marketing among Malaysia consumers is finally done. The entire table shown above has

indicated clear relationship between dependent and independent variables. Each step of

analysis is conducted carefully to get a precise result in this study.

First of all, descriptive analysis is used to analyze the data obtained. From the

outcome of the analysis, male respondents show a higher percentage than female in this

study. This is because male are more looking forward towards technological gadget than

female. Figure 9 below is a survey of comparison between male and female on their

media usage conducted by government of Kenya from http://www.audiencescapes.org. It

proves that male respondents have higher usage of SMS than female respondents.

80

http://www.audiencescapes.org/


Figure 10: Comparison between Male and Female on media usage

Next a descriptive analysis of respondent’s age whereby the results shown that most of

students at age of 22 to 23 years old are highly participated in this study because most of

respondents are degree holder. Then, respondents working status is measured. Only a few

students in this study admit that they are working since most of them put studies as their

priority. Hence, major income levels of respondents in this study are RM250 to RM500.

After that, analyzing respondent’s education level is conducted. As discuss earlier, most

of respondent’s participate in this study are degree holder which reach a number up to

219 over 250 respondents and all of them owned a hand phone according to statistic in

the next findings. A total 250 respondents owned a hand phone which indicates that there

is no obstacle for student to response to mobile marketing. It only the matter of whether

those have intention to look, opens, and replies to SMS-based mobile ads or not. The last

two descriptive analyses respondent’s awareness on SMS-based mobile advertising and

number of SMS-based mobile advertising replied in a week. Next is conducting the

significance differences between gender and level of response in mobile marketing

whereas there are significance differences between gender and level of response. As

discussed earlier, refer to figure 9, male use SMS more than female nowadays.

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The second step is reliability testing. Earlier as discuss, it is noted that the

reliability coefficient that is above 0.70 is considered reliable and acceptable mostly in

social science research situation (ats.ucla, 2009). Actually, there is no specific minimum

value for the alpha coefficient; ‘a higher value indicating a higher degree of internal

consistency or reliability’ (Gravetter and Forzano 2003, p. 391) is expected. Therefore, in

this study, a reliability coefficient of 0.50 is set as the minimum level for acceptability

(Felder and Spurlin 2005; Helmstater 1964). Scales with a Cronbach’s alpha of above

0.70 are regarded as reasonably reliable. All independent variables in this study consider

highly reliable because above 0.60. Brand familiarity’s Cronbach’s alpha is 0.784;

relevance on advertisement is 0.660; attitude towards SMS advertising is 0.626; brand

loyalty is 0.695 and trust is 0.755.

After test the reliability of all independent tests in this study, it comes to

hypothesis testing. After conducting normality test, all independent variables are not

normally distributed because the significant level or p-value is less than 5%. Therefore,

Spearman’s Rho test is conducted. All variables are significantly correlated with the level

of consumer’s responses on mobile marketing. First variable are brand familiarity.

According from Lianxi Zhou research paper from Concordia University, Canada, the

empirical results from structural equation modeling show that familiarity with a brand

influences a consumer's confidence toward the brand, which in turn affects his/her

intention to buy the same brand. It is proves in this study that brand familiarity also

influence consumer to response on mobile marketing. Consumer’s level of familiarity

towards a certain brand determines their level of responses on mobile marketing.

However, one possibility might be that consumers would have negative reactions to the

repetition of ads for familiar brands more quickly than they would to ads for unfamiliar

brands. Because consumers already know something about familiar brands, ads for these

brands might seem less interesting than ads for novel brands that consumers do not know.

Hence, relevance on advertisement is very crucial to avoid consumer’s continuous lack of

interest perception towards a certain brand ads.

Second and third variable is highly correlated which is relevance on

advertisement and attitudes towards SMS advertising explains that sending ads to

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consumers at correct time slot and right message to a right person is important and proves

that it is correlated with the level of consumer’s responses on mobile marketing it is

because consumer’s preferences might vary for example, one consumer is interested in

golf, another consumer is interested in motor sports or gardening and a golf brochure

probably draws the attention of the golf enthusiast and leaves the motor sport enthusiast

indifferent. Search for consumer’s background of preference is essential. Dickinger et

al.’s (2005) model of success factors for SMS marketing are message factors include:

message content, Krishnamurthy (2001) found that the factors affecting consumer

willingness to give permission to receive advertisement were: message relevance (e.g.

message fit and advertiser attractiveness), and special offers; personalization according to

time (i.e. time of day and frequency of advertisements), location (including real-time

location-specific offers) and consumers’ preferences, permission and privacy, which has

been identified as the strongest negative influence on consumer attitudes toward SMS

advertising. A consumer expects messages to be personal and of high interest and this

makes the disappointment greater when they get undesired messages. Moreover, Akaah

et al. (1995) found that the factors that influence attitude toward direct marketing most

are the volume of advertisements and past direct experience. Attitudes towards SMS

advertising is another consideration that marketers has to take into account that proves in

this study that it is significantly correlated with the level of consumers’ response on

mobile marketing.

Brand loyalty is the fourth variable which is accepted is its hypothesis. It support

in earlier discussion that brand needs more than identity; it needs a personality. Just like a

person without attention-grabbing characteristics, a brand with no personality can easily

be passed right over. If consumers loyal to a brand, the likelihood for them to response on

mobile marketing is higher. It proves in this study how important is brand loyalty in order

to receive high response of mobile marketing as respondents admits that brand name is

very important for them before they response to SMS-based mobile advertising and

probably not response to SMS-based mobile advertising that is not recommended by their

friends and family. Last but not least, hypothesis that is accepted is trust. In this study a

mean of 3.3500 which fall into agree category admits that they would not response to

SMS-based mobile advertising if they do not trust the brand.

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5.3 Limitation of the study

There were several limitations that restricted the findings of this study.

Since the duration to complete this research is within 4 months, the current study covers

only university students in Multimedia University Malacca (MMU). Many other

institutions were not taken into research. Therefore the sample size of students taken for

this study is not enough to represent the actual population. This study is also very limited

by time and cost. It would be very costly and time consuming to conduct a survey that

covers all education institutions in Malaysia, as there are hundreds of private and public

education institutions in Malaysia.

Other than that, the responses towards mobile marketing are seem not

encouraging among students group which contribute to inaccurate answers by

respondents. The questionnaire in this research is distributed mostly during class hour or

in library. This is because due to limited of time, survey is conducted based on time

spending in campus where students are busy studying. Therefore, when questionnaire is

distributed to them, students might sees this research as nuisances in their point of view

putting aside the questionnaire been asked to be filling in as an actual survey. Because of

that, there are possibilities students might fill it in the questionnaire falsely. Indirectly this

will contribute to imprecise result of findings. Therefore, next time maybe this research

should be looking into more amateur group age 25 and above for example working group

to see a better result in filling in the questionnaire.

5.4 Implication of study

As a conclusion, the findings in this research indicate that all of the independent

variables in this research are positively significant and have relationship with the

dependent variable. As such, it conclude that the greater the positive each independent

variables, the greater level of consumers’ response. Hence, the entire hypothesis testing

in this research are accepted and it is proven by conducting Spearman’s Rho analysis to

test the association and the result illustrate that there is a significant influence between

both variables discussed in this study. Apparently, all the independent variables which are

brand familiarity, relevance on advertisement, attitude towards SMS advertising, brand

84


loyalty, and trust are the factors to influence consumers on their responses of mobile

marketing. With the test conducted, the results have shown which factors to consider in

understanding the consumers better. The research on this topic is a beneficial source for

the consumers and the firms as it will provide good value for both sides (Rio et al., 2001).

The objectives of this research are obtained in sense of enhancing the understanding of

consumer behavior especially in SMS-based mobile advertising industry or in other

industry related. Different consumers have different preference and value before them

probably response to mobile marketing. One main implication of the study is the

influence of the media in marketing communication as the channel affects consumer

responsiveness to marketing communication. The findings indicate that the

responsiveness is lower if consumer is not familiar with the brand name, their attitude

towards SMSM-based mobile advertising, brand name preference and loyalty towards

certain bran and level of trust. In other words, the message content is not the only factor

in effective marketing communication. Therefore understand their desire and wants is

essential in order to create an advertising that could attract them effectively through

mobile phone.

5.5 Recommendation for Future Study

The limitation discussed above suggests several areas for future research. This

study takes a close look on responses of mobile marketing on Malaysia consumers which

analyze 250 respondents in Multimedia University as representative group in this

research. These effects are studies across. This in-depth approach has led both to a

number of new and interesting insights, as discussed previously. But, as most studies, this

study also has limitation.

H1: Brand familiarity

H2: Relevance on advertisement

H3: Attitude towards SMS advertising

H4: Brand loyalty

H5: Trust

85


Based on this research about the factors that influence response of mobile

marketing on Malaysia consumers, it concluded that all hypotheses is accepted and

significantly correlated. Respondents in this research admit that brand familiarity,

relevance on advertisement in term of their content, consumer’s attitude towards SMS

advertising, brand loyalty, and trust does influence them in mobile marketing responses.

Marketers should take a deep looked into these variables so that mobile marketing could

be the most effective medium of advertisement in the future.

First of all, when consumer views an advertisement in a small screen of their hand

phone, they might probably deleted immediately if there is no familiarity towards that ads

and automatically have this perception in their mind “oh, it’s another spam or scam

message!” therefore, brand familiarity is crucial for consumers before they response to a

certain advertisement. In terms of brand familiarity, marketers should injects as much as

promotion tools through several medium of media such as television, billboard, and,

internet, magazines, etc to first aware the consumers about a certain product before

launching mobile advertisements. This is to create a strong brand image among

consumers so that it will create positive result when conducting mobile advertisement on

consumers.

The contents of advertisement should be made as attractive as it can be and

sending the correct ads to a right person. For example, a car company shouldn’t send an

SMS-based mobile advertisement to housewives as they have less interest towards the

product compared to males. In conclusion, choose the correct target market before

launching mobile ads. Repetition of same messages sent to same consumers over and

over again should be avoided. This would create negative attitudes towards mobile

advertising since it would create public disturbance. At the end of the day, consumers

might get fed up and not even looked at the message again. In conclusion, arrange the

received time of mobile ads wisely to avoid consumer’s negative attitude towards mobile

marketing. Create brand loyalty is crucial in marketing so does in mobile advertising.

From the findings, most respondents agree that brand loyalty has influence them to

response in mobile marketing. Therefore, marketers should create more brand loyalty

program such as coupon redeems membership privilege, free gifts etc. through mobile

86


ads. If marketers use mobile marketing as a medium to promote more on loyalty program

that benefits consumers in such ways, a more strong positive response is achieved. Last

but not least is trust. Whitaker (2001) reports that respondents who considered their

mobile phones as a very private and personal item were more reluctant to share

information with unknown companies and the author also find that when data is

controlled by unknown persons has led to annoyance among receivers. Based on this

research findings, also there is strong correlated that consumers probably not response to

SMS-based mobile advertising if they asked for personal information. In conclusion,

marketers must look further on these matters. If they intend to choose to mobile ads as

marketing tool, build trust is the first step that should be undertaken. Do not ask for

personal information especially in banking industry unless a strong brand image is

successfully conducted.

Therefore several recommendations about future study are discussed here to have

better results in the future. For final recommendation, as Malaysia is a multi-racial

country, a study on whether there are differences in influencing factors emphasized by

different races could be interesting and enlightening for marketers in Malaysia. Further

research could use longitudinal data to examine the relationships between consumers’

response and marketing communications-choice decision. This longitudinal approach

could enhance the understanding of the impact of consumer perception and attitudes as

well as demographics on their response. The approach can help reveal how these factors

may change in the evolution of the type of marketing communications channels success.

Conclusions

Overall, our study indicates that marketers should pay particular attention to the

utility and relevancy of mobile advertising messages. For example, mobile advertising

should provide consumers with either useful information or a way to save time or money

based on the consumer’s situation, location, or personal profile. Prior research has also

found that the perceived relevance of mobile advertising is related to changes in purchase

intention (Rettie, Grandcolas, and Deakins 2005). Thus, future research should focus on

87


the content of mobile advertising messages and their effect on both the acceptance of

mobile advertising and the purchase behavior of targeted consumers.

Finally, given the additional importance of trust on acceptance, it is no surprise

that the most successful mobile marketers worldwide are well-trusted brands like Coca-

Cola, McDonalds, and mobile operators, which have successfully incorporated the

mobile channel into the promotion of their goods and services. Based on these facts it

seems that it is much easier for a customer to get into a dialogue with a well-known and

established brand than with an unknown one. Thus, companies should strengthen their

brand among consumers in order to develop trust. By doing so, the addition of new

marketing channels, such as mobile devices into the promotion mix becomes easier.

88


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