Factors That Influence the Response of Mobile Marketing
CHAPTER 1: INTRODUCTION
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.
2. Research background
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.
2. Research background
References: Balasubramanian, Robert A. Peterson and Sirkka L. Järvenpää (2002). Exploring the Implications of M-Commerce for Markets and Marketing. Journal of the Academy of Marketing Science. Vol. 30 No. 4, 348-361. Forrester Report (2001): Lussanet et al. The Marketer’s Guide to SMS, Forrester Research Inc., European Research Center, Amsterdam. Godin, Seth (1999). Permission marketing: Turning strangers into friends, and friends into customers. New York: Simon & Schuster. Harvey, Bill (1997). The Expanded ARF Model: Bridge to the Accountable Advertising Future. Journal of Advertising Research. March-April, 11-20. Heinonen, Kristina (2003). Reconceptualising customer perceived value: The value of time and location. Paper to be presented at AMA Servsig Conference. Reims, France. June, 12-14 2003. Marinova, Murphy and Massey (2002). Permission email marketing as a means of targeted promotion, Cornell Hotel and Restaurant Administration Quarterly. February. 61-69. Stewart, D. and Pavlou, P. 2002. From Consumer Response to Active Consumer: Measuring the Effectiveness of Interactive Media. Journal of the Academy of Marketing Science. Vol. 30. No.4., 376-396. Windham, Laurie and Ken Orton (2002). The soul of the new consumer: The attitudes, behavior, and preferences of e-customers, Allworth Press. Balabanis, G., Mitchell, V. W., and Heinonen-Mavrovouniotis, S. SMSBased Surveys: Strategies to Improve Participation. International Journal of Advertising, 2007, Vol. 26 Issue 3: 369-385. Carroll, A., Scornavacca, E., Fletcher, K., and Barnes, S. J. Consumer Perceptions and Attitudes towards SMS Advertising: Recent Evidence from New Zealand. International Journal of Advertising, 2007, Vol. 26 Issue 1: 79-98. De Reyck, B., and Degraeve, Z. Broadcast Scheduling for Mobile Advertising. Operations Research, 2003, Vol. 51, No. 4: 509-517. Dolian, B. Text-to-Screen Emerges: A Conceptual Approach to A Powerful Interactive Marketing Tool. International Journal of Mobile Marketing, 2008, Vol. 3 Issue 1: 81-85. Gibbs, C. MMS Marketing a Hit Abroad, on Deck in U.S. RCR Wireless News, 2007, Vol. 26 Issue 33: 13. James Y.L, Min Gong, and Xu Yan. Thong. Two Tales of One Service: User Acceptance of Short Message Service (SMS) in Hong Kong and China. Info, 2006, Vol. 8 Issue 1: 16 – 28. Jenkins, F. Mobile Marketing. Young Consumers: Insight and Ideas for Responsible Marketers, 2006, Vol. 7 Issue 2: 60 – 63. Muk, A. Consumers ' Intentions to Opt in to SMS Advertising. International Journal of Advertising, 2007, Vol. 26 Issue 2: 177-198. Okazaki, S. Senior Executives’ Initial Responses. Internet Research, 2005, Vol. 15 Issue 2: 160 – 180. Trappey III, R. J., and Woodside, A. G. Consumer Responses to Interactive Advertising Campaigns Coupling Short-Message-Service Direct Marketing and TV Commercials. Journal of Advertising Research, 2005, Vol. 45 Issue 4: 382-401. Barnes, S.J. 2002b. Wireless digital advertising: nature and implications. International Journal of Advertising, Vol Barnes, S.J. & Scornavacca, E. (2004) Mobile marketing: the role of permission and acceptance. International Journal of Mobile Communications, 2(2), pp. 128–139. B. Schilit, and M. Theimer, “Disseminating Active Map Information to Mobile Hosts”, IEEE Network, Vol. 8, No. 5, pp. 22-32, 1994. Dickinger, A., Haghirian, P., Murphy, J. & Scharl, A. (2004) An investigation and conceptual model of SMS marketing. Proceedings of the 37th Hawaii International Conference on System Sciences, Big Island, Hawaii, January. Forrester Report (2001): Lussanet et al. The Marketer’s Guide to SMS, Forrester Research Inc., European Research Center, Amsterdam. Harvey, Bill (1997). The Expanded ARF Model: Bridge to the Accountable Advertising Future. Journal of Advertising Research. March-April, 11-20. Jelassi, T. & Enders, A. (2004) Leveraging wireless technology for mobile advertising. Proceedings of the 12th European Conference on Information Systems, Turku, Finland, 14–16 June. Kenny, D. and Marshall, J.F. (2000) ‘Contextual marketing: the real business of the internet’, Harvard Business Review, Nov–Dec Vol. 78, No. 6, pp.119–125.