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A huge thankfulness for our grateful god Allah almighty that give our change
to live and give me a chance to learn as a student. I feel grateful because I can
learn this subject that give me valuable knowledge in research study and writing for
my beginning of my further study.
Without my beloved lecturer Miss Yasmin Ishak that teaches me about this
subject with passion and I feel grateful because of her teaching. Very special thanks
for her that guide us in making this assignment especially.
Besides, I would like to thanks Madam Nor Fariza Hanim Kasim from
Department of Statistical Malaysia and Dr. Mohd Faiz Nordin from University
Technology Petronas in guiding me to do the research.
I would like to thanks all the people involve especially the residents of Seri Iskandar
and who involve indirectly in my research.
Abstract
The finding of this study had resulted that all three hypothesis are accepted having
positive relationship between mobile users perception toward SMS advertisement
affected by irritation, credibility and advertisement content. From the findings,
mobile users have positive perception toward SMS advertisement and the
significant factors influences are credibility. When the mobile users trust the
company, organization or MNO, they will act positively to read and helps them to
get information. This research conducted on 83 respondents in Seri Iskandar, Perak.
The study found that mobile users perception affected by the three variables. The
study also correlated the mobile users perception with their action and behavior.
There is positive relationship between mobile users perception and action toward
SMS advertisement. Overall study explained half by the independent variables
toward the dependent variable.
Keyword: SMS advertisement, mobile users perception, irritation, credibility,
advertisement content, mobile users action
Table of Content
Title
Page
5
7
10
11
11
12
4.3 Credibility
12
12
13
14
15
6.1 Sampling
15
6.2 Instrumentation
15
16
16
17
17
17
19
23
26
27
7.0 Limitation
28
8.0 Recommendations
29
30
10.0 References
32
Appendices
34
Table
Table 1: Short code type
Table 2: Cronbachs Alpha Reliability Test
Table 3: MNO used by respondents
Table 4: Perception dependent variable frequency
Table 5: Irritation variable frequency
Table 6: Credibility variable frequency
Table 7: Advertisement content variable frequency
Table 8: MNO and How Frequent mobile users receive SMS advertisement in week
Cross tabulation
Table 9: Do mobile users preferred receive SMS advertisement and SMS
advertisement base on Cross tabulation
Table 10: How frequent mobile users receive SMS advertisement in week * Action
when receive SMS advertisement Cross tabulation
Table 11: How mobile users preferred receive SMS advertisement * SMS
advertisement provide information Cross tabulation
Table 12: Overall perception like toward SMS advertisement * Mobile users action
on SMS advertisement they receive
Table 13: Correlation table of perception, irritation, credibility and advertisement
content
Table 14: Model summary of R Square
Glossary
SMS
MNO
MVNO
MCMC
CFM
SPSS
MCS
1.0 Introduction
Telecommunication on telephone had started in the mid of 1990 to deliver live wave
voice from one telephone to another telephone for a long range distance. It had
been evolving from the basic Morse code system that helps the US Army to send the
information. The evolution of the phone technology changed the ways of sending
the information from voice to text. Emerging market in mobile phone manufacturing
provide a huge number of mobile phone users that use various telecommunication
services. Asia is the top leading part in producing the mobile phone and keeps
increasing 30% every year (Bamba & Barnes, 2007). The traditional ways of mobile
commercial
opportunity
grabbed
by
mobile
phone
manufacturer
and
government body that oversees all the telecommunication companies under the
Communications and Multimedia Act 1998. In 2014, mobile penetration in Malaysia
increase 140% on overall population of 30 million people.
The SMS advertisement is easier from the traditional direct marketing and
marketers undertake the main function of personal SMS to the new evolution of bulk
SMS advertising to make a profitable and efficient method of advertisement that
reach directly to the potential customers mobile phone. Accordingly, nowadays
economic crisis push businesses to use a very cheap advertising method such this
SMS advertising.
Short code is the Mobile Content Service (MCS) that provided by MCMC for the ease
of use and patent the registered MNO service number. There are three types of
short code in Malaysia:
Type
2- Digits Series
3- Digits Series
6- Digits Series
Organization Use
Network operator
Premium services MNO
Corporate
and
bulk
Example
05, 02, 03
122, 124, 118
333666, 566777
services
Table1: Short code type
Source: MCMC
The SMS advertising will send using the 6-digits short code and the subscription
response may apply such REGISTER, ON, REG and others. This response on
the short code service will bound with transportation charge such RM 0.15 per SMS
(Malaysian Communications and Multimedia Commission). The bulk SMS service
usually send the content such mobile personalization, infotainment, information,
banking and financial services, communication and government services.
RQ1. What are the factors affecting mobile users perception towards SMS
advertisement?
RQ2. What are mobile users actions toward SMS advertisement?
RQ3. What are the important of SMS advertising to mobile users?
10
To analyze the factors affecting mobile phone users perception toward SMS
advertisement
To investigate mobile users action towards SMS advertisement
To explain the importance of SMS advertisement content to mobile users
11
4.2 Irritation
When business or marketers use the blast SMS advertisement technique, it sends
various messages to all audience or potential customers. The message not just give
information about the promotion but sometimes, the message persuade and
confusing people about the brand and the information. The SMS advertisement is
manipulate customers perception and customers are receiving the unwanted SMS
which irritate them (Almossawi, 2014). When customers feel irritate about the SMS
12
itself, the advertisement will face the negative impact from the customers. This is
because the customers are confusing about the information and how they get their
privacy numbers. According to Ahmadi et al. (2013), the advertisement that they
irritate the customers shows negative response to the company promotional
campaign (Ahmadi, Masrour, & Khaksar, 2013). The research conducted by (Kumar
& Raju, 2015) about the SMS advertisement effectiveness, it shows the good sellers
that sent SMS advertisement to the customers did not give any irritation perception
toward the advertisement. In supporting the irritation factor that effect the
perception toward customers, the theoretical study had been developed by (Tsang,
Ho, & Liang, 2004) that found customers perception of irritation negatively
correlated with customers attitude towards SMS advertisement.
H1: Irritation factor has positive relationship toward mobile users perception
4.3 Credibility
According to (MacKenzie B., Lutz, & Richard, 1989), credibility is about the extent of
customers toward the product or service brand to be truthful and believable. A
crucial part of using SMS advertisements for the target audience is about the
credibility of the advertisement itself. It may influence to the response of customers
toward the advertisement whether to reply the SMS, join the contest, polling and
make purchases. When mobile users do not have the trust of the advertisement, it
may affect low effectiveness to the SMS advertisement and the low effectiveness of
promotional campaign will increase the cost for an organization to use it. (Brackett
& Carr, 2001) found that the credibility factor is significance toward customers
perception. In addition, the significance of customers perception on credibility relies
on the advertisement medium. In other findings developed by (Almossawi, 2014)
customers are more intent to receive and response on printed message rather than
internet message.
H2: Credibility has positive relationship toward mobile users perception
13
The content of the advertisement will influence mobile users perception when the
SMS advertisement itself is useful and help mobile users to understand what the
message is and content marketers want to deliver. Marketers had developed the
interesting ways of delivering the useful and sufficient information to the audience
(Gordon & LimaTurner, 1997). By using this way of advertisement, it may not
interrupt the mobile users perception because the advertisement is interesting.
According to (Chowdhury, Parvin, Weitenberner, & Becker, 2006), SMS recipient did
not feel annoyed if they receive the SMS advertisement which is interesting and
relevant. The advertisement must complete with the specific time, information,
contact and how to response. For the theoretical study conducted by (Tsang, Ho, &
Liang, 2004) found that informativeness has positive correlation with customers
perception.
H3:
Advertisement
content
has
positive
relationship
toward
mobile
users
perception
Independent
Variable
Irritation
Dependent
Variable
H1
H2
Credibility
H3
Mobile
Users'
Perception
Advertisem
ent Content
Figure 1: Theoretical framework for testing mobile
users perception toward SMS advertisement
14
Advertisement
content
has
positive
relationship
toward
mobile
users
perception
Questions
Q1: How irritation factors influence mobile users perception?
Q2: How credibility factor affecting mobile users perception?
Q3: How advertisement content influence mobile users perception?
15
6.2 Instrumentation
A set of questionnaire prepared with the header that state the purpose of the study
and simple introduction about the research. The questionnaire has four sections of
question set which are demographic, irritation, credibility and advertisement
content. The items of the questionnaire are adopted from (Chowdhury, Parvin,
Weitenberner, & Becker, 2006) and (Tsang, Ho, & Liang, 2004). The total question
will be 25 items per questionnaire and the set of questions will be prepared in
bilingual of English and Malay to make sure the respondents will understand the
entire question respectively. The pre-test questionnaire will be conducted to 5
people before the actual questionnaire set distributed.
In the past questionnaire developed by the researchers have five points likert-type
scale and this questionnaire will be done by only four scales. The questionnaire
develops using three types of question which are closed-ended, open-ended and
likert-type scale question. For closed-ended question will be used to ask about
demographic items and several item of selection. Open-ended question will be
asked once for their opinion about the SMS advertisement. The earlier questionnaire
creates with four likert-scale questions but, the advice and observation from pilot
16
test suggest adding another likert-scale of neutral. This subset will increase the
reliability and convenience for respondents to answer. This is because the
respondents with low knowledge and information about spam, and highly mobile
usage will be not alert about the SMS almost. The likert-scale questions consist of
five point starting from 1- Strongly Agree, 2- Agree, 3- Neutral, 4- Disagree and 5Strongly Disagree. The Cronbachs Alpha will be used to measure the internal
consistency whether acceptable or not.
the second highest are 26-30 years old which are 30 (36.1%) respondents. Another
respondents are below 18 years old about 13 (15.7%) and above 30 years old of 4 (4.8)
respondents. The average distribution of the questionnaire is about equal between male and
female and the average age of respondents are more on 25-30 years old.
18
Age
Gender
Female; 53%
Male; 47%
Cronbachs Alpha
No. of item
0.752
3
0.742
3
0.829
4
0.809
3
Table 2: Cronbachs Alpha Reliability Test
The most MNO that respondents use are U-mobile about 23 (27.7%) respondents
and the second highest MNO used are Maxis which are 22 (26.5%) respondents.
Next, respondents that used Celcom have 21 (25.3%) respondents and Digi of 15
(18.1%) respondents. Another MNO and MNVO used by another 2 (2.4%)
respondents are Altel and Tune Talk line. This show U-mobile, Maxis and Celcom are
the most used MNO by the respondents.
MNO
Maxis
Celcom
Digi
U-Mobile
Others
No. of Respondents
Percent (%)
22
21
15
23
26.5
25.3
18.1
27.7
2.4
and
another
39
(47%)
did
not
preferred
to
receive
SMS
advertisement. From this result, respondent are more preferred to receive the SMS
advertisement.
advertisement
later.
Another
20
(24.1%)
respondents
read
the
SMS
20
From
the
respondents
answer,
30
(36.1%)
respondents
receive
the
SMS
The next question asked the respondents is the action when they receive the SMS
advertisement. Action in this question is more referred to their reading of the
advertisement content. Most of respondents of 35 (42.2%) person read the
advertisement only quarter and 24 (28.9%) respondents not read it at all. Another
14 (16.9%) of respondents read it whole and 10 (12%) read it half.
Item
Strongl
y
Disagr
ee
3
3.6%
2
2.4%
Disagr
ee
Neutra
l
Agree
Strongl
y
Agree
Total
39
47.0%
33
39.8%
25
30.1%
36
43.4%
7
8.4%
5
6.0%
83
100%
83
100%
3.29
42
50.6%
28
33.7%
2
2.4%
83
100%
3.18
variable frequency
21
Mean
3.42
N
o
Item
SMS
advertisements
distracting my
phone memory
space
Irritation
Strongl
y
Disagr
ee
2
2.4%
Disagr
ee
Neutra
l
Agree
Strongl
y
Agree
Total
15
18.1%
35
42.2%
26
31.3%
5
6.0%
83
100%
3.20
6
7.2%
11
13.3%
41
49.4%
23
27.7%
2
2.4%
83
100%
3.05
2
2.4%
12
14.5%
36
43.4%
28
33.7%
5
6.0%
83
100%
3.27
22
Mean
Credibility
N
o
Item
I use SMS
advertising as a
reference for
purchasing
I can trust on SMS
advertisements
I am impressed by
the SMS
2
3
Strongl
y
Disagr
ee
5
6.0%
Disagr
ee
Neutra
l
Agree
Strongl
y
Agree
Total
15
18.1%
35
42.2%
17
20.5%
11
13.3%
83
100%
3.17
4
4.8%
10
12.0%
13
15.7%
12
14.5%
31
37.3%
33
39.8%
25
30.1%
23
27.7%
10
12.0%
5
6.0%
83
100%
83
100%
3.29
23
Mean
3.01
advertisements
I feel that receiving
5
16
23
26
SMS
6.0%
19.3%
27.7%
31.3%
advertisements is
pleasing
Table 6: Credibility variable frequency
13
15.7%
83
100%
3.31
The credibility of independent variable had been explained by the item I feel that
receiving SMS advertisement is pleasing which has the highest mean of 3.31.
Respondents had majority answer the neutral, agree and strongly agree of 74.7%
(N=62). Besides, the lowest mean of 3.01 on item I am impressed by the SMS
advertisement explained. From the result, mobile users are agreeing with the
credibility
of
SMS
advertisement.
They
are
satisfied
and
trust
with
the
Advertisement Content
N
o
Item
Strongl
y
Disagr
Disagr
ee
Neutra
l
Agree
Strongl
y
Agree
Total
24
Mean
ee
1
SMS advertising
3
9
helps me keep up3.6%
10.8%
to-date about
products
that I need
SMS advertising is a
7
10
good source for
8.4%
12.0%
timely information
SMS
4
12
advertisements
4.8%
14.5%
usually provide the
information I need
Table 7: Advertisement content
31
37.3%
34
41.0%
6
7.2%
83
100%
3.37
34
41.0%
28
33.7%
4
4.8%
83
100%
3.14
24
28.9%
35
42.2%
8
9.6%
83
100%
3.37
variable frequency
25
Always
Sometime
Total
Maxis
10
22
Celcom
12
21
Digi
15
U-Mobile
11
10
23
Others
10
37
36
83
Total
Do mobile users preferred receive SMS advertisement and SMS advertisement base on
Crosstabulation
Preferred
Total
Company
Company Not
Familiar
Familiar
Totally unknown
Spam
Total
Yes
15
15
44
No
12
15
39
24
20
30
83
26
Read Quarter
Read half
Read Whole
Total
None
10
Always
16
37
11
17
36
24
35
10
14
83
Sometime
Total
Table 10: How frequent mobile users receive SMS advertisement in week * Action
when receive SMS advertisement Cross tabulation
From the table 10, the data shows most of the mobile users (N=16) read the SMS
advertisement quarter when they always receive the advertisement and also the
respondents who receive sometimes in a week. This data explained that the more
SMS advertisement sent, it may influence the action of mobile users to read it
quarter and less effective of the advertisement towards them. The factors also give
the sign that mobile users majority read only quarter the SMS advertisement rather
than read whole advertisement.
The actions of mobile users toward SMS advertisement were affected by how
frequent they receive the SMS advertisement. The action of mobile users will
indicate the effectiveness of the SMS advertising campaign when a company or an
organization makes the advertisement. If they send to much advertisement, it may
less effective when the mobile users do not read whole of the SMS.
27
How mobile users preferred receive SMS advertisement * SMS advertisement provide information
Cross tabulation
Total
Strongly
Disagree
Preferred
Disagree
Neutral
Agree
Strongly Agree
Yes
10
18
44
No
14
17
39
12
24
35
83
Total
Table 11: How mobile users preferred receive SMS advertisement * SMS
advertisement provide information Cross tabulation
From the table 11, the data shows mobile users preferred to receive SMS
advertisement because the advertisements provide information for them. 25
(56.81%) of respondents agree and strongly agree to receive SMS advertisement to
get information they need.
Another data that can be generated is the relationship between mobile user action
and perception. These two data will show the affect when mobile user have good
perception, it will influences them to read the SMS advertisement.
Overall perception like toward SMS advertisement * Mobile users action on SMS advertisement they
receive
Strongly
Disagree
Agree
Total
Action
Ignore
receive
Read it Occasionally
11
28
Read it Later
13
26
20
39
25
83
28
Table 12: Overall perception like toward SMS advertisement * Mobile users action
on SMS advertisement they receive
From the table, respondents that agree on overall perception like toward SMS
advertisement are 11 (39.28%) person read the SMS advertisement occasionally.
Another 10 (38.46%) respondents that agree the overall perception like toward SMS
advertisement read the SMS later. This result show the action of mobile users also
affected when they like the SMS advertisement.
Irritation
.665**
.241*
.000
.000
.028
83
83
83
83
.736**
.628**
.161
.000
.145
N
Pearson Correlation
Advertisement Content
.736**
Pearson Correlation
Sig. (2-tailed)
Irritation
Credibility
Sig. (2-tailed)
.000
83
83
83
83
.665**
.628**
.127
.000
.000
83
83
83
83
.241
.161
.127
t Content
.028
.145
.254
83
83
83
Credibility
Pearson Correlation
Sig. (2-tailed)
N
Sig. (2-tailed)
N
.254
83
H1: Irritation factor has positive relationship toward mobile users perception
The correlation coefficient between mobile users perception and credibility variable
show positive correlation of 0.665 (r=0.665) which indicate strong positive
relationship between these two variables. The hypothesis of H2 is acceptable.
H2: Credibility has positive relationship toward mobile users perception
The correlation coefficient between mobile users perception and advertisement
content variables show positive correlation of 0.241 (r=0.241) which indicate weak
positive relationship between both variables. The hypothesis of H3 may acceptable
but the advertising content variable do not explained the dependent variable too
much. The variable may not affect mobile users perception because most of
respondents read the SMS advertisement just about quarter.
H3:
Advertisement
content
has
positive
relationship
toward
mobile
users
perception
Model Summary
Model
1
R
.789a
R Square
.622
Adjusted R
Square
Estimate
.608
.44452
31
7.0 Limitation
The limitation of this research is the research is conducted in sub urban area in Seri
Iskandar, Perak which cannot represent the actual average of urban area which the
usage of phone is higher. The area of study also cannot represent about all
Malaysian perception toward SMS advertisement. Besides, the number of
respondents are also small that cannot get more possibility and deviation for good
result.
To make a good research, resource such budget is important, but this research is
limited due to the cost of research to purchase report or to travel and get more
respondents. This may affect the result and literature of another research. As
students, time constraint is also the limitation that had limited time rather than full
time researcher. Time constraint of doing and getting data will limit the quality and
research findings.
The languages used in the questionnaire are not too suitable when distributed to
the local sub urban area of respondents. Readiness of every respondent is different
and simpler questions make the questionnaire not to accurate.
32
8.0 Recommendations
The recommendation from the respondents about SMS advertisement is the
company or organization that wants to make SMS advertisement should have the
permission from mobile users to avoid spam and another unethical advertisement.
Another recommendation from respondents is the advertisement from the company
or organization should be more on product or promotion rather than sending the
SMS about contest or competition that will confuse them. They also suggest the
SMS advertisement to be more short and valuable for them to read in a short time.
The recommendation for further research is to make more sample and respondents
and choose the respondents that really want to involve in the study. Malaysia as a
multi culture country, demographic factor on race and culture should be added to
see whether it will be effect the research or not.
In addition, SMS advertisement should apply the variable of permission to know the
willingness of the sample that they subscribe or not about the SMS advertisement
as their personal use. The usage of mobile phone on individual daily basis also
should be examine to get know about how much they alert about the SMS and their
behavior toward it.
33
needs. This factors show the need of customers for the business activity to keep
using SMS advertisement for customers to refer what are going on with the business
such promotion and new product.
The result also shows about the SMS advertisement can be a good ways for
business to use rather than other techniques such mass media and printed media.
The ways of making advertisement using SMS will capture personal customers
attention and give them a long advertisement period storage in their mobile phone.
From all the findings and variable investigated, about more than half are explained
by the variables. Another half of the finding may vary on others variables.
35
10.0 References
Taburan Penduduk Mengikut Kawasan Pihak Berkuasa Tempatan 2010. (2010).
Retrieved February 16, 2016, from Majlis Daerah Perak Tengah:
http://www.mdpt.gov.my/taburanpenduduk;jsessionid=209BA092D4D2E89FB90954F280ED5E8F
Ahmadi, M., Masrour, G. A., & Khaksar, M. (2013). The study of peoples attitude and
response toward receiving sms advertising. JOURNAL OF CONTEMPORARY
RESEARCH IN BUSINESS, 243-246.
Allison, P. D. (2006). The Realibility of Variables Measured. Sociological Methodology,
Vol. 9, 238-253.
Almossawi, D. M. (2014). Effectiveness of SMS Advertising (A Study of Young
Customers in Bahrain). Double Blind Peer Reviewed International Research
Journal, 60-61.
Asia, D. N. (2015, November 16). Spam SMS on the rise in Malaysia, CFM steps in.
Retrieved February 15, 2016, from Digital News Asia:
https://www.digitalnewsasia.com/spam-sms-rise-malaysia-cfm-steps
Bamba, F., & Barnes, S. J. (2007). SMS advertising, permission and the consumer: a
study. Norwich Business School, University of East Anglia, Norwich, UK, 815829.
Brackett, L. K., & Carr, B. N. (2001). Cyberspace advertising vs other media:
consumer vs mature student attitudes. Journal of Advertising Research Vol.
41, No. 5, 23-32.
Chowdhury, H. K., Parvin, N., Weitenberner, C., & Becker, M. (2006). Consumer
attitude toward mobile advertising in an emerging market: an empirical study.
International Journal of Mobile Marketing, Vol., 33-42.
Gao, T. (., Sultan, F., & Rohm, A. J. (2010). Factors influencing Chinese youth
consumers . Journal of Consumer Marketing, Vol. 27 Iss 7, 574 - 583.
Gordon, M. E., & LimaTurner, K. D. (1997). Consumer attitudes towards Internet
advertising: A social contract perspective. International Marketing Review,
Vol. 14 Iss: 5, 354-375.
Kazmi, S. Q. (2012). Consumer Perception and Buying Decisions(The Pasta Study).
International Journal of Advancements in Research & Technology, Volume 1,
Issue 6, 2-10.
36
Kugan. (2013, February 19). Celcom among 12 Companies Fined by SKMM for SMS
Spamming. Retrieved February 15, 2016, from Malaysia Wireless:
http://www.malaysianwireless.com/2013/02/celcom-among-12-companiesfined-by-skmm-for-sms-spamming/
Kumar, D. D., & Raju, K. V. (2015). A Study on Mobile SMS Advertising Effectiveness
in Vijayawada. International Journal of Research in Management, Science &
Technology, 139-140.
MacKenzie B., S., Lutz, & Richard. (1989). An empirical examination of the structural
antecedents of attitude toward the ad in an advertising pretesting context.
Journal of Marketing, Vol. 53, 48-64.
Malaysian Communications and Multimedia Commission. (n.d.). Mobile Content
Services. Retrieved February 15, 2016, from Official Portal of Malaysian
Communications and Multimedia Commission:
http://www.skmm.gov.my/Sectors/Celco/Mobile-Content-Services.aspx
Roach, G. (2009). Consumer perceptions of mobile phone marketing: a direct
marketing innovation. School of Management, University of Tasmania,
Launceston, Australia, 124-138.
Singla, P. (2015). A study of consumer perception towards mobile advertising among
smartphone users. A case study of Panjab University, 19.
Tsang, M. M., Ho, S.-C., & Liang, T.-P. (2004). Consumer Attitudes Toward Mobile
Advertising: An Empirical Study. International Journal of Electronic Commerce,
66-70.
37
11.0 Appendices
Preferred
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Yes
44
53.0
53.0
53.0
No
39
47.0
47.0
100.0
Total
83
100.0
100.0
Ignore
Percent
Valid Percent
Percent
10.8
10.8
10.8
Read it Occasionally
28
33.7
33.7
44.6
Read it Later
26
31.3
31.3
75.9
20
24.1
24.1
100.0
83
100.0
100.0
Appendices 2: Item What do you do when you receive the SMS advertisement?
Base from
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Company Familiar
24
28.9
28.9
28.9
20
24.1
24.1
53.0
Totally unknown
30
36.1
36.1
89.2
Spam
10.8
10.8
100.0
Total
83
100.0
100.0
38
Action Receive
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Not at all
24
28.9
28.9
28.9
Read Quarter
35
42.2
42.2
71.1
Read half
10
12.0
12.0
83.1
Read Whole
14
16.9
16.9
100.0
Total
83
100.0
100.0
Appendices 4: Item How much do you read the SMS advertising messages you
receive?
39