Mobile Marketing Full New

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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 2

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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 costeffective 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 3

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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 valueadded 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 4

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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) 5

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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 mcommerce, 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). 6

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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

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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? 8

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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

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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 10

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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 12

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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 14

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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. 15

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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 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 Review 2.1 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 Figure 1: Organization of overall study 17

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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.

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2.1.1

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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 locationsensitive 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

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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

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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

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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

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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 priorpermission 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

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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,

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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. 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. Does loyal consumer to a certain brand respond to mobile ads of other brand? We will find out later in this paper.

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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.

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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.

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3.2 Research Framework

Brand familiarity

Relevant on advertising

Responses of mobile marketing

Attitudes towards SMS and MMS

Brand loyalty

Trust

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.

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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

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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 (HeinonenMavrovouniotis, 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 decisionmaking 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

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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.

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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:

H1: There is a significant influence between consumer뭩 responses on mobile marketing with brand familiarity. 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 “oneto-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. H2: There is a significant influence between consumer뭩 responses on mobile marketing with relevance on advertisement

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

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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.

H3: There is a significant influence between consumer뭩 responses on mobile marketing with attitudes towards SMS advertising.

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 attributesrelative 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. H4: There is a significant influence between consumer뭩 responses on mobile marketing with trust.

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

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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.

H5: There is a significant influence between consumer뭩 responses on mobile marketing with brand loyalty.

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. 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.

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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

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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

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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

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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.

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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).

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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

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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

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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.

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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

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3.7.5

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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.

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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

Valid

Table 1 : Respondent’s gender Frequency Percent Valid Percent Cumulative Percent 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.

Valid

Table 2: Respondents’ Age Range Frequency Percent Valid Percent 18-19 years old 13 5.2 5.2 20-21 years old 55 22.0 22.0 22-23 years old 147 58.8 58.8 24-25 years old 35 14.0 14.0 Total 250 100.0 100.0

Cumulative Percent 5.2 27.2 86.0 100.0

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 1825 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.

Figure 4: Respondents’ Age Range Percentage 57

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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 Not working Total

Frequency 38 212

Percent Valid Percent Cumulative Percent 15.2 15.2 15.2 84.8 84.8 100.0

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.

Figure 5: Respondent’s working status percentage 58

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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 RM250 – RM500 RM501 – RM 1,000 RM1,001 – RM 1,500 RM1,500 and above Total

Frequency 75 90 65

Percent 30.0 36.0 26.0

Valid Percent 30.0 36.0 26.0

Cumulative Percent 30.0 66.0 92.0

12

4.8

4.8

96.8

8

3.2

3.2

100.0

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 Percentage 59

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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

Valid

Frequency Diploma 12 Degree 219 Master 1 Others 18 Total 250

Percent 4.8 87.6 .4 7.2 100.0

Cumulative Valid Percent Percent 4.8 4.8 87.6 92.4 .4 92.8 7.2 100.0 100.0

Figure 7: Respondent’s education level graph 60

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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 hand phone

Frequency a 250

Percent Valid Percent Cumulative Percent 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

Valid

Yes No Total

Frequency Percent 151 60.4 99 39.6 250 100.0

Valid Percent 60.4 39.6 100.0

Cumulative Percent 60.4 100.0

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 week 62

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Valid

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Once Twice More than three times Never ( not bothered) Total Skipped this question

Frequency 17 29 2

Percent 6.8 11.6 .8

Valid Percent 10.7 18.2 1.3

111

44.4

69.8

151 99

63.6 36.4

100.0

250

100.0

Total

Cumulative Percent 10.7 28.9 30.2 100.0

Figure 9: Number of SMS-based mobile advertising replied by respondents in a week graph

111

Never (not bothered)

Table

More than three times

figure 8 is

the

numbers SMSmobile

and

2 Column2

29

Twice

17

Once 0

above of

50

100

150

based

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 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. 63

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4.4

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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

Cronbach's Alpha .784

Reliability Statistics Cronbach's Alpha Based on Standardized Items .791

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N of Items 7

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Item Statistics I probably response to SMS-based mobile ads if:

Mean 25. I am familiar with the products/services brand name 2.6720 26. The brand name previously used by family & friends 2.7440 27. I have no idea about the product’s brand name 2.9440 28. It is not necessarily I response to SMS-base mobile ads even though 2.9240 I am familiar with the product’s brand name 29. The products/services captured my interest even though I have no 2.4840 idea about the brand name 30. I have experience using the products/services before 2.4160 31. Brand familiarity does not influence my response towards SMS- 2.4680 based mobile ads

Std. Deviation .89421 .81061 .88544 .74864

N 250 250 250 250

.95782

250

1.05041 1.01444

250 250

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's Alpha .660

Reliability Statistics Cronbach's Alpha Based on Standardized Items .660

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N of Items 7

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Item Statistics Std. Mean Deviation 32. I probably respond to SMS-based mobile advertising every time I 1.8960 1.01256 received one 33. I probably respond to SMS-based mobile advertising if the 2.4040 .90113 product/services captured my interest 34. I probably NOT respond to SMS-based mobile advertising that I 2.8440 .92035 received at my work place/class because it create disturbance to me 35. I probably NOT respond to SMS-based mobile advertising that I 2.6760 .92001 received during my time at home because it is time for me to rest and enjoy my leisure moment 36. I don’t mind response to SMS-based mobile advertising anytime 1.9800 .91595 37. Brand information is important for me before I response to any SMS- 2.8200 .86173 based mobile advertising 38. Relevance on advertisement does not influence my response to wards 2.4240 .93795 SMS-based mobile advertising 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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N 250 250 250 250

250 250 250

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4.4.3 Attitude towards SMS Advertising: Table 11: Reliability Analysis for Attitude towards SMS Advertising Reliability Statistics Cronbach's Alpha .626

Cronbach's Alpha Based on Standardized Items .629

N of Items 9

Item Statistics Mean 39. I probably respond to SMS-based mobile advertising every time 2.0480 I received one 40. I probably search for information about the SMS-based mobile 2.3040 advertising before I response 41. I probably NOT response to the same SMS-based mobile 2.8760 advertising that I have response before 42. I tend to at least open the SMS-based mobile advertising that I 2.6080 received, even though I am not interested to it 43. If I am not interested to SMS-based mobile advertising that I 2.3080 received, I will spread the information to friends and family who interested to it 44. I probably delete SMS-based mobile advertising that I received 3.2160 if I am NOT interested to it 45. I do not encourage my family and friends to response to SMS- 3.0360 based mobile advertising if I have bad experience from that brand name 46. I don’t mind to received and freely response SMS-based based 2.3960 mobile advertising anytime , anywhere 47. My attitude doesn’t influence my response towards SMS-based 2.7840 mobile advertising

Std. Deviation 1.05933

N 250

1.09562

250

1.05502

250

.93908

250

1.11089

250

1.04581

250

.98314

250

.99758

250

.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. 67

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4.4.4 Brand Loyalty Table 12: Reliability Analysis for Brand Loyalty

Cronbach's Alpha .695

Reliability Statistics Cronbach's Alpha Based on Standardized Items .697

N of Items 8

Item Statistics Mean 48. Brand name is a very important for me before I response to SMS- 2.9920 based mobile advertising 49. I probably response to SMS-based mobile advertising if I am 2.8040 loyal to that brand name 50. I probably NOT response to SMS-based mobile advertising that is 2.7600 not recommended by my friends and family 51. I probably NOT response to product/services that I never tried 2.7640 before 52. I probably response immediately to new product/services offer 2.2280 through SMS-based mobile advertising 53. I do not mind trying new product/ services promote through SMS- 2.3920 based mobile advertising 54. I probably delete SMS-based mobile advertising after I received if 3.0800 I never heard about the brand name 55. I probably response to SMS-based mobile advertising if the 2.6720 product/services previously used by my family and friends

Std. Deviation N .89169 250 .95142

250

.90868

250

.87140

250

.93139

250

.93479

250

.93654

250

.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 SMSbased 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. 4.4.5 Trust 68

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Table 13: Reliability Testing for Trust

Reliability Statistics Cronbach's Alpha .755

Cronbach's Alpha Based on Standardized Items .759

N of Items 8

Item Statistics Mean 2.1200 advertising 2.3560

56. I trust SMS-mobile advertising 57. I probably response to SMS-based mobile recommended by my friends and family 58. I probably NOT response to SMS-based mobile advertising if I do 3.3500 not trust the brand 59. I probably NOT response to SMS-based mobile advertising if they 2.9640 asked for personal information 60. I probably NOT response to brand name that I never heard before 2.9000 61. I probably NOT response to brand name that have negative 3.1440 reputation/image 62. Brand information is very important before I response to SMS- 2.8800 based mobile advertising 63. I do not mind to take risk when response to SMS-based mobile 2.1320 advertising

Std. Deviation .95774 .93850

N 250 250

.89523

250

1.05411

250

1.05758 1.00364

250 250

1.05358

250

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. 4.5

Significant Differences Test 69

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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 Male

N 144

Mean 3.4597

Std. Deviation 0.78144

Female

106

2.9057

0.92840

t

Sig.

3.837

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.

4.6. Hypothesis Testing

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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

Brand Familiarity

Tests of Normality Kolmogorov-Smirnova Statistic df Sig. .340 250 .000

Table 15: Normality Test for Relevance on advertisement

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Shapiro-Wilk Statistic df Sig. .881 250 .000

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Relevance on Advertisement

Final Year Project Tests of Normality Kolmogorov-Smirnova Statistic df Sig. .323 250 .000

Shapiro-Wilk Statistic df Sig. .869 250 .000

Table 16: Normality Test for Attitude towards SMS advertising

Attitude towards SMS advertising

Tests of Normality Kolmogorov-Smirnova Statistic df Sig. .349 250 .000

Shapiro-Wilk Statistic df Sig. .866 250 .000

Table 17: Normality Test for Brand loyalty

Brand loyalty

Tests of Normality Kolmogorov-Smirnova Statistic df Sig. .304 250 .000

Shapiro-Wilk Statistic df Sig. .874 250 .000

Table 18: Normality Test for Trust

Trust

Tests of Normality Kolmogorov-Smirnova Statistic df Sig. .278 250 .000

Shapiro-Wilk Statistic df Sig. .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.

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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) Correlations

Spearman's rho

Level of response 1.000

Level of response

Correlation Coefficient Sig. (2-tailed) . N 250 Brand familiarity Correlation .453** Coefficient Sig. (2-tailed) .000 N 250 **. Correlation is significant at the 0.01 level (2-tailed).

Explanation about the analysis: 73

Brand familiarity .453** .000 250 1.000 . 250

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H1: There is a significant influence between consumer’s responses on mobile marketing with brand familiarity. 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.

Table 20: Correlation: (Does level of response connect with relevance on advertisement) Correlations

Spearman's rho

Level of response 1.000

Level of response

Correlation Coefficient Sig. (2-tailed) . N 250 Relevance on Correlation .527** advertisement Coefficient Sig. (2-tailed) .000 N 250 **. Correlation is significant at the 0.01 level (2-tailed).

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Relevance on advertisement .527** .000 250 1.000 . 250

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Explanation about the analysis: H2: There is a significant influence between consumer’s responses on mobile marketing with relevance on advertisement 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 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 2 is accepted. Relevance on advertisement is significantly correlated with the level of consumer’s responses on mobile marketing.

Table 21: Correlation: (Does level of response connect with attitude towards SMS advertising) Correlations

Spearman's rho

Level of response 1.000

Level of response

Correlation Coefficient Sig. (2-tailed) . N 250 Attitude towards ads Correlation .369** Coefficient Sig. (2-tailed) .000 N 250 **. Correlation is significant at the 0.01 level (2-tailed). 75

Attitude towards SMS ads .369** .000 250 1.000 . 250

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Explanation about the analysis: H3: There is a significant influence between consumer뭩 responses on mobile marketing with attitude towards SMS advertising 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 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 3 is accepted. Attitude toward SMS advertising is significantly correlated with the level of consumer’s responses on mobile marketing.

Table 22: Correlation: (Does level of response connect with brand loyalty) Correlations

Spearman's rho

Level of response 1.000

Level of response

Correlation Coefficient Sig. (2-tailed) . N 250 Brand Loyalty Correlation .310** Coefficient Sig. (2-tailed) .000 N 250 **. Correlation is significant at the 0.01 level (2-tailed). 76

Brand loyalty .310** .000 250 1.000 . 250

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Explanation about the analysis: H4: There is a significant influence between consumer뭩 responses on mobile marketing with brand loyalty 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 (pvalue) 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.

Table 23: Correlation: (Does level of response connect with brand trust)

Correlations Spearman's rho

Level of response 1.000

Level of response

Correlation Coefficient Sig. (2-tailed) . N 250 Trust Correlation .469** Coefficient Sig. (2-tailed) .000 N 250 **. Correlation is significant at the 0.01 level (2-tailed).

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Trust .469** .000 250 1.000 . 250

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Explanation about the analysis: H5: There is a significant influence between consumer뭩 responses on mobile marketing with brand trust 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.

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

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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.

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 80

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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. 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 81

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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 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 82

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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. 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. 83

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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 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 84

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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 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 85

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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 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. 86

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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 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 CocaCola, 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.

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Heinonen, Kristina & Strandvik, Tore (2003): Consumer responsiveness to marketing communication in digital channels, FeBR2002 Frontiers of e-Business Research 2002, ed. M. Hannula, A-M. Järvelin & M. Seppä, pp. 137-152, Tampere University of Technology and University of Tampere Informed (2001). The “New” ARF Model. Vol. 4, No. 3, June 2001. The Advertising Research Foundation. Li, Hairong, Steven M. Edwards and Joo-Hyun Lee 2002. Measuring the Intrusiveness of Advertisements: Scale Development and Validation. Journal of Advertising, Vol. XXXI, No. 2, 37-47. Marinova, Murphy and Massey (2002). Permission email marketing as a means of targeted promotion, Cornell Hotel and Restaurant Administration Quarterly. February. 61-69. Merisavo, Marko, Jari Vesanen and Mika Raulas (2002). Suomalaisten asiantuntijoiden kokemukset ja näkemykset digitaalisten kanavien käytöstä markkinoinnissa (Finnish experts’ experience and perceptions about the use of digital channels in marketing), Center of Direct Marketing Excellence, LTT Research Ltd, Institute of Electronic Commerce Seybold, Patricia (2001). The customer revolution: How to thrive when your customers are in control. London: Random House Business Books. 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. 89

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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.

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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. http://service.nso.go.th/nso/nsopublish/service/analyze/age_phone.pdf http://www.essortment.com/all/brandloyalty_pqk.htm http://star-techcentral.com/tech/story.asp? file=/2006/1/31/technology/13265724&sec=technology http://www.marketingpilgrim.com/2008/04/mobile-advertising-response-up.html http://nileshbabu.com/2009/malaysian-mobile-usage/ http://www.mediabuzz.com.sg/asian-emarketing/september-october-2009/611-buildingconsumer-trust-in-mobile-marketing http://technu.nst.com.my/Current_News/techNu/Monday/Spotlite/20090215201321/Artic le/index_html The Use of Mobile Phones by Elderly: A Study in Malaysia Perspectives: Mohd Hairul Nizam Md. Nasir, Hazrina Hassan and Nazean Jomhari Department of Software Engineering, Faculty of Computer Science and Information Technology, University of Malaya, 50603 Kuala Lumpur, Malaysia International Review of Business Research Papers Vol.4 No.5. October-November 2008. PP.1-10 Investigating the Impact of Mobile Marketing in the Current Indian Scenario and Proposing CUSTOMERIZATION as a Solution. 91

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Heinonen, Kristina & Strandvik, Tore (2003): Consumer responsiveness to marketing communication in digital channels, FeBR2002 Frontiers of e-Business Research 2002, ed. M. Hannula, A-M. Järvelin & M. Seppä, pp. 137-152, Tampere University of Technology and University of Tampere Informed (2001). The “New” ARF Model. Vol. 4, No. 3, June 2001. The Advertising Research Foundation. 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. Krishnamurthy, S. (2001) ‘A comprehensive analysis of permission marketing’, Journal of Computer-mediated-communication, January, Vol. 6, No. 2. Li, Hairong, Steven M. Edwards and Joo-Hyun Lee 2002. Measuring the Intrusiveness of Advertisements: Scale Development and Validation. Journal of Advertising, Vol. XXXI, No.2, 37-47. Mandelli, A. (2005)‘Banners, e-mail, advertainment and sponsored search: proposing a value perspective for online advertising’, Int. J. Internet Marketing and Advertising, Vol. 2, Nos. 1/2, pp.92–108. Marinova, Murphy and Massey (2002). Permission email marketing as a means of targeted promotion, Cornell Hotel and Restaurant Administration Quarterly. February. 61-69. Seybold, Patricia (2001). The customer revolution: How to thrive when your 93

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customers are in control. London: Random House Business Books. Davie, R., C. Panting and T. Charlton, 2004. Science direct-telematics and informatics: Mobile phone ownership and usage among preadolescents. Telemat. Inform., 21: 359-373. doi: 10.1016/j.tele.2004.04.001. Mikkonen, M., S. Väyrynen, V. Ikonen and M.O. Heikkilä, 2002. User and concept studies as tools in developing mobile communication services for the elderly. Personal Ubiquit. Comput., 6: 113-124. Doi: 10.1007/s007790200010. Abascal, J. and A. Civit, 2001. Universal access to mobile telephony as a way to enhance the autonomy of elderly people. In: Proceedings of the 2001 EC/NSF Workshop on Universal Accessibility of Ubiquitous Computing: Providing for the Elderly, May 22-25. Alcácer do Sal, Portugal, doi:10.1145/564526.564551. Irie, T., K. Matsunaga and Y. Nagano, 2005. The UD Phenomenon in Japan: Product innovation through universal design. Universal Design Activities for Mobile Phone: Raku Raku PHONE. Fujitsu Scientific and Technical Journal 41 (1): Special Issue on Universal Design, 78-85. doi:10.1007/978-3-540-73279-2.

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