Download CORRELATION WITH ACCEPTANCE OF MOBILE MARKETING

Neven Bosilj*, Goran Bubaš**, Neven Vrček***
User Experience with Advertising over
Mobile Phone: A Pilot Study
*T-mobile, Croatia
**University of Zagreb, Faculty of Organisation and Informatics
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Mobile phone and SMS users
In comparison to land-line telephones, television, radio, and most
other electronic communication media, mobile phones are much
more personal devices.
A mobile phone usually only has a single user and this attribute
makes mobile phones suitable for high-precision targeting in
marketing campaigns.
2.7 billion users of mobile phones in 2007 (in comparison to 1.1
billion users of the Internet).
4 billion subscriptions for mobile devices in 2009 and 2.7 billion
active SMS users (Ahonen, 2009).
Mobile message services (SMS & MMS):
SMS - text of 168
characters
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MMS - pictures,
audio or video
Bosilj, Bubaš, Vrček
Availability
and simplicity
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Issues in mobile marketing
E-mail message is opened, on average, within 24 hours and a reply occurs
within 48 hours.
SMS messages are read within 15 minutes of their arrival and the average
response time amounts to less than 60 minutes.
As much as 65% of e-mails are spam; the percentage of spam among SMS
messages is less than 10%.
Some important factors to consider:
Customerization
(mCRM & alike)
Customization
(user profiles)
Viral marketing
Privacy – mSpam
(PBMS)
Location-based
mobile marketing
Adoption problems
(users, advertizers)
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Mobile marketing campaigns
Interactivity of push, pull and dialogue campaigns (Jelassi & Enders, 2004).
High
Advertiser
activity
Low
Push
campaigns
Dialogue
campaigns
Traditional (noninteractive)
campaigns –
TV, radio, print
Pull
campaigns
Low
High
Consumer activity
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Technological problems
Key points in creation of mCRM (Sinisalo et al., 2006):
Server
Number
Campaign
logic
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Gateway
Technologies
Price
formation
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Permission
database
Marketing
Media
mix
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Research motivation
Main goals and problem:
Investigate how potential clients would react to a mobile
advertising campaign.
Conduct a pilot study on a small group of students who
would receive 1-4 marketing SMS messages per day for a
period of two weeks and evaluate the usefulness of each of
the incoming messages.
Determine the potential acceptance rate of SMS marketing.
Collect quantitative and qualitative data on students’
responses to mobile marketing messages.
Determine the factors which contribute to the acceptance of
SMS marketing.
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Hypotheses
H1: Students in our convenience sample will on
average demonstrate a high level of acceptance of
SMS marketing.
H2: The level of engagement of students in our
convenience sample during the marketing campaign
will not decrease over time.
H3: Message attributes (related to brand, information
value, entertainment, personalization, perceived
usefulness) have an influence on the acceptance of
mobile marketing.
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Methodology
Subjects, instruments and procedure:
Convenience sample, 62 students of the fourth year of study of informatics.
The subjects were aged between 21 and 24, 66% of them were male and 34% female.
They were given a written statement regarding the privacy and confidentiality of
collected data.
A survey was used regarding the actual use of mobile technology (phone, Internet etc.).
Self-assessment scales were also used that measured various constructs (user
attributes): attitude (Shimp and Kavas, 1984; Pollay and Mittal, 1993); perceived
usefulness (Venkatesh et al., 2003); message attributes (brand, information value,
entertainment, personalization); use of services related to mobile advertising (Merisavo
et al., 2007).
The mobile marketing campaign lasted two weeks during which the subjects received
2-4 SMS messages per day that were related to their college, program of the local
cinema and theatre, city swimming pool, student restaurants and town bars/pubs, or
included diverse advertisements of products and services. (10 kn per 120 SMS).
The subjects were asked to respond to each of the received SMS messages regarding
its usefulness on a 1-5 Likert-type scale. After a week of participation in the mobile
marketing campaign they also completed a brief survey regarding the received
messages and their effects.
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Results /1
Percentage of responses
Percentage of subjects who responded with an evaluation of the
received marketing SMS during the first and second week of the
campaign.
90%
85%
80%
75%
70%
65%
60%
55%
50%
45%
40%
Sequence of SMS messages
First week
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Second week
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Results /1
H2: The level of engagement of students in our
convenience sample during the marketing campaign
will not decrease over time.
NOT CONFIRMED!
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Results 2
Acceptance of mobile marketing
After a week of exposure to the mobile marketing campaign the subjects
in our convenience sample responded to the survey question “Mobile
advertising is a useful concept which I plan to use in the future”.
An average response was 4.14 on a Likert-type scale ranging from “1 – I
do not agree at all” to “5 – I completely agree”.
Most of the SMS’s (85% of messages) during the first week of the mobile
marketing campaign were highly personalized and received an average
rating for usefulness of 3.0 or above from the subjects in the study.
Typical positive verbal responses of subjects
“Many messages were very useful to me (menu at the student
restaurant, cinema, discount at the city swimming pool, college
information) and I will miss them when the campaign is over.”
“Interesting, I approve of it and support this kind of advertising as long as
the user is capable of choosing and controlling the content that he/she
receives and its amount.”
“I support this and hope that it will benefit the students”.
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Results /2
H1: Students in our convenience sample will on
average demonstrate a high level of acceptance of
SMS marketing.
CONFIRMED!
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Results /3
Correlation of acceptance of mobile marketing with the
constructs related to the attributes of mobile marketing
messages and internal consistency of scales used to measure
these constructs (N=62)
MESSAGE
RELATED
CONSTRUCTS
CORRELATION WITH
ACCEPTANCE OF MOBILE
MARKETING
INTERNAL
CONSISTENCY OF
SCALE (CRONBACH
ALPHA)
Attractive brand
in messages
0.47
0.90
Information value
of messages
0.59
0.81
0.33
0.65
0.67
0.70
Entertainment
value of
messages
Personalization of
message content
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Results /3
H3: Message attributes (related to brand,
information value, entertainment, personalization,
perceived usefulness) have an influence on the
acceptance of mobile marketing.
CONFIRMED!
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Conclusion
Mobile marketing could be accepted at least by a younger
generation of computer literate mobile phone users.
Most of the subjects positively evaluated their experience
with the mobile marketing campaign in our pilot study.
However, our findings also indicate that user/consumer
interest in the participation in mobile marketing campaigns
may decrease over time.
Mobile advertising messages need to be personalized and
contain adequate information value to attract attention,
receive greater interest, and avoid being perceived as spam.
None of the participants indicated that they felt
uncomfortable because of their participation in our pilot study
and the verbal content of their SMS responses to received
mobile advertising messages was predominantly positive.
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Thank you for your attention!
[email protected]
[email protected]
[email protected]
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