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Faculty of Business and Law Final Year Project

CHAPTER 1: INTRODUCTION

1.1. Overview

Nowadays mobile phone plays the key role in communication in many countries
including Malaysia. The rapid growth of the Malaysia Mobile industry has largely been
due to the development of a simple and highly popular mode of mobile communication.
The SMS (Short Messaging System) Statistics from Communication & Multimedia
Malaysia had indicated that over 3,406 million SMS have been sent in the first period of
year 2005. It seems like the fifth factor that everyone has to have it. Besides the
convenience of usage in anywhere or at any time, the user can also listen to music, play
games or surf the internet. Another increasingly popular function is the message services
in forms of short message service (SMS) and multi-media service (MMS).

Technology developments have created new marketing communication channels


or media such as email, SMS (Short Messaging Service) and MMS (Multimedia
Messaging Service). These digital media are considered to potentially improve the
possibilities to reach consumers by allowing personalization of the content and context of
the message (Forrester Report 2001). Simultaneously there is a potential downside to the
development of new digital channels. In a Forrester report companies using SMS
expressed fear for invasion of consumer privacy (80%) and negative consumer reaction
(60%) as disadvantages of the media (Forrester Report 2001, p. 3). A crucial question is
thus whether there are obstacles for the marketer to use mobile media to its potential. Are
customers more reluctant to receive marketing information through mobile media than
through traditional media or is it the other way around?

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


consumers’ response to SMS and MMS ads in Malaysia. The factors considered are
brand familiarity, relevant on advertisement, brand loyalty, trust and attitude toward SMS
and MMS.

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1.2. Research background

Cell phone has been one of the important devices for all human kind. It has a huge
impact to everyone’s life. This innovation creates marketing opportunities and
challenges. Through mobile, it enable transcend traditional communication and support
one-to one, many-to-many and mass communication. Phones and personal digital
assistants increase the availability, frequency and speed of communication. Yet the
technology associated with these devices, which let marketers personally communicate
with consumers, continues to evolve.

Technological innovations have enabled cell phone users to utilize them as more
than a communication device, attracting advertisers to provide finely targeted and time
sensitive information to their target audience. Mobile advertising is one of the most
unique developments in the mobile sphere since mobile messaging gained mass
consumer adoption and has emerged as one of the most important and effective
advertising media in the region.

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


products via SMS/MMS. The marketers hope that this new method, also known as
wireless advertisement through SMS and MMS, will effectively and efficiently promote
their products or services. With the emergence of high speed wireless network
technologies and the increasing market penetration of mobile phones the global
advertising industry’s interest in using this medium as a means of marketing
communication is rising. However, in spite of the increasing number of companies
investing in mobile marketing campaigns, there is, as yet, little academic research on this
topic and the nature and implications of this channel are not yet understood fully.

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


to mobile marketing communication compared to email as a marketing media. With
mobile marketing we refer to marketing communication where a consumer can be
reached anywhere anytime but specifically in this study to SMS and MMS. From the
marketer’s perspective it would be crucial to know which consumers are open and
responsive to such marketing communication. From an academic perspective the issue of

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


the effect of the marketing communication in addition to the marketing message. In this
study we are applying a traditional communication perspective in the sense that explore
responsiveness to marketer initiated (push) communication as a reaction to this activity.
Thus, in this study we do not imply interactivity within a customer relationship or
customer initiated (pull) communication.

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


very important to ensure that target market is carefully selected to make it more cost-
effective for retailers and large companies to retain their loyalty customers.

1.2.1 Industry background

The rapid growth of the Malaysia Mobile industry has largely been due to the
development of a simple and highly popular mode of mobile communication. The mobile
business has the potential to grow to one of the most important industries in the world.
Especially in Finland the potential is large owing to the fact that our country has been the
pioneer in this field from the beginning and the Finns are one of the most enthusiastic
mobile phone users. So far there has not been lot of research concerning consumer
behavior in mobile service context. The ones that are available concerns mainly
traditional or the kind services that exists in mobile phone as basic default, like SMS
(Grinter & Eldridge, 2001; Pedersen, 2002) and normal usage of mobile devices
(Rautianen & Kaseniemi, 2000). From a theoretical perspective, this research will
provide new information about consumer behavior in a rapidly growing mobile
commerce area. For marketers, an understanding of consumer behavior is increasingly
recognized as a key factor in success, and it can lead to a competitive advantage for those
who can use this information in their strategic and operational marketing (e.g. Peter and
Olson, 1990).

Phones and personal digital assistants increase the availability, frequency and
speed of communication. Yet the technology associated with these devices, which let
marketers personally communicate with consumers, continues to evolve. The most

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


(SMS). Studies on this new advertising medium indicate that mobile advertising
campaigns can generate responses that are as high as 40%, compared with a 3% response
rate through direct mail and 1% with internet banner ads (Jelassi & Enders 2004). The
high diffusion of SMS facilitates analyzing usage behavior and hints at the commercial
potential of future communication services. Multimedia Messaging Services (MMS), for
example, will build on the success of SMS but allow for richer content based on similar
asynchronous, digital and interactive communication. Studying interactive mobile
services such as SMS and MMS suggests drawing upon theories in marketing, consumer
behavior, psychology and adoption to investigate their organizational and personal use.

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


that targets users of handheld wireless devices such as mobile phones and Personal
Digital Assistants (PDAs). In Comparison with traditional advertising, the main
advantage of mobile advertising is that it can reach the target customers anywhere
anytime. In order to promote the selling of products or services, all the activities required
to communicate with the customers are transferred through mobile devices. Combining
with the customer’s user profile and context situation, advertising companies can provide
the target customers exactly the advertisement information they desire, not just “spam”
them with advertisements they are not interested in. The devices on which these value-
added services are pushed onto or downloaded to, operate in an environment that imposes
constrains such as: wireless network environments are unreliable and bandwidth is low,
and the very mobility of devices increases the risk that a connection will be lost or
degraded. More importantly, mobile services must work within the daunting constraints
of the devices themselves, which include: memory, processing power, input capabilities,
and size of display. It is therefore important that mobile advertisements take into account
the user’s context, optimize resource usage, and minimize input effort imposed on the
user. Mobile media, for example, transcend traditional communication and support one-to
one, many-to-many and mass communication.

When looking at marketing communication from a consumer perspective the issue


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

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competition for consumers’ attention. Attention and time has increasingly become scarce
resources for the consumers in the information age. It has been argued that the
information age empowers consumers and creates immediate 24-hour access, which
changes consumers’ behavior (Seybold 2001). Many consumers have attitudes;
aspirations and purchasing patterns that are different compared to what companies have
been used to. Today's consumers are claimed to be independent, individualistic, involved
and informed, (Lewis and Bridger 2000) which makes it harder than ever to conduct
interruption-based communication. In traditional research concerning advertising and
media effects the consumer’s perspective has been largely overlooked.

Traditional marketing communication planning has focused on the marketer’s


objectives of reaching relevant consumers (Stewart & Pavlou 2002). An open question is,
however, what reaching means when considering the empowered and active consumer. In
permission marketing context it has been argued that if the consumers have agreed to pay
attention it would be easier to reach them about offerings (Godin 1999). A key issue is
the responsiveness of the consumer to marketing communication. Responsiveness depicts
the consumer’s willingness to receive and respond to marketing communication and can
be viewed as a function of the content and the context of the message. Any channel can
and should be evaluated according to consumer responsiveness in order to understand
communication effects and effectiveness. Consumer responsiveness is potentially more
effective than permission because it assumes consumer attention rather than merely
permission.

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


understand ones consumers and the expectations they have. By developing services,
consumers will approve new technology and start to use it more easily. New strategies
have to be developed for changing perceptions and in that way confirm their mobile
service usage. As Matthing et al. (2004) state new service development relies on the
complex task of understanding and anticipating latent customer needs. It is presumable,
that findings of this will have significant implications and generate insights directly
applicable for manufacturers and marketers of consumer mobile services. A key task for
m-business is to find out who the actual and potential customers are (Turban et al.1999)

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and how to make them interest on mobile services. Also the services needed had to be of
developers concern. Consumer behavior towards mobile services has not yet been the
subject of much research (Anckar et al. 2002; Pedersen et al. 2002; Constantiou, 2003) in
Europe. Anckar (2002) pointed out that “the main reason value-adding elements in m-
commerce, the consumers’ actual reasons – the primary drivers for adopting m-commerce
remain unclear”.

1.3. Problem Statement

The marketers face escalating hurdles to attract and meet the customer’s need in
the current world of globalization. People are getting more intelligent with the help of
technology gadget nowadays. To attract customer’s awareness no longer linger only with
online advertising but also via SMS and MMS.

With technologically advanced mobile phone services in Asia, providing


customers with data services such as SMS, MMS, video and mobile internet, games,
downloads and mobile TV, mobile advertising take this advantage of the “third screen”
(alongside the TV and the PC) to reach out to customers. The rapid rise of mobile
advertising in the Asia-Pacific region is being fuelled by a surge in mobile phone
subscriptions. This high diffusion of SMS facilitates analyzing usage behavior and hints
at the commercial potential of future communication services. Multimedia Messaging
Services (MMS), for example, will build on the success of SMS but allow for richer
content based on similar asynchronous, digital and interactive communication.

The influence of repetition on communication effectiveness is an important issue


that has generated a considerable body of research. Consumer researchers, psychologists,
and marketers have attempted to understand the relationship between repetition and an
audience’s reception of a message. The leading theory is that there is a non monotonic
relationship between message repetition and message effectiveness (cf. Anand and
Sternthal 1990; Vakratsas and Ambler 1999). Message effectiveness is believed to
increase at low levels of repetition and then to decrease as message repetition increases
(cf. Berlyne 1970; Cacioppo and Petty 1979). There is strong evidence in support of such
a curvilinear relationship (cf. Anand and Sternthal 1990; Pechmann and Stewart 1989).

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


repetition and message effectiveness (Belch 1982; Rethans, Swasy, and Marks 1986) or
mixed effects in terms of the curvilinear relationship (Calder and Sternthal 1980;
Messmer 1979). A review of the literature on repetition effects suggests that there is no
simple answer to the question of how repetition affects message effectiveness. Several
researchers have called for and turned their attention to factors that moderate the
relationship between repetition and message effectiveness. For example, research has
identified several message factors that influence the effects of repetition, including
message complexity (Cox and Cox 1988), “grabber versus nongrabber” ads (Ray and
Sawyer 1971), and ease of processing of the message (Anand and Sternthal 1990). This
research proposes an important source factor as a moderator of repetition effects.
Specifically, propose that the familiarity of the brand sponsor of an ad will moderate the
way in which repetition influences consumer response to that ad. Additionally, this
research contributes to existing research by describing more completely the mechanism
by which a decrease in attitudes with an increase in repetition may occur. The following
problem statement spells out and concludes the background of the research problem.
Problem statement: An in mobile marketing: To what extent do brand familiarity
influence customers’ responses of mobile marketing in Malaysia?

The mobile advertising is another complementary marketing communications


instrument, much of the theorizing about why consumers accept or do not accept SMS
advertising is speculative. SMS location-based services are likely to become increasingly
valued as a marketing tool (Ververidis and Polyzos, 2002). Via the mobile channel, the
response can be nearly immediate, interactive and the consumer can be reached
everywhere at anytime because the service is typically ubiquitous (Jelassi and Enders,
2004). Dickinger et al.’s (2005) model of success factors for SMS marketing are divided
into two categories: the message and the media. Message factors include: message
content, Krishnamurthy (2001) found that the factors affecting consumer willingness to
give permission to receive advertisement were: message relevance (e.g. message fit and
advertiser attractiveness), and special offers; personalization according to time (i.e. time
of day and frequency of advertisements), location (including real-time location-specific
offers) and consumers’ preferences; and consumer control, permission and privacy,
which has been identified as the strongest negative influence on consumer attitudes
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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?
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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
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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

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claimed that their behavior would be positive if the ads were sent by permission.
Therefore, different consumer has different attitude and preferences.

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


mobile marketing

Explanation: Responsiveness conceptualization closely relates to the attentiveness level


but carries over to the communication and persuasion levels in the sense that we assume
that they are closely related. Also make the assumption that there are differences in
responsiveness among consumers concerning different media as well as concerning
different products. The responsiveness may be higher for some media for some
consumers because they are more familiar with the media and it suits their purposes. In
this respect also certain products or offerings may receive higher responsiveness than
other.

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

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


worldwide basis, familiarity with and demand for mobile content services are high.
Consumers are increasingly sophisticated and demanding. They are highly sophisticated
and familiar with converging services such as web surfing, instant messaging and
interactive gaming. Although consumers found SMS-based advertising intrusive and
irritating (Sugai 2005), they are willing to access and willing to pay for information that
is compelling and that have high level of contextual sensitivity (Mort and Drennan 2002).
However it is essential to give users total control over what they receive because
consumers’ demand for highly personalized messages has to be reconciled with their
desire for privacy (Sadeh, 2002).

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


marketing.

Explanation: Despites mobile marketing gain more popularity nowadays, most of the
people still have the negative attitude toward SMS ads (Fatim Bamba, Stuart J. Barnes
2007).

1.5. Justification and Contribution of Research

Things are done because they bring benefits or contributions to individual, family,
organization, society, country and even global. Same goes to this research paper. Mobile
marketing phenomena are governed by a number of consumer acceptance and behavior
characteristics and grounded in theoretical aspects of consumer decision making. There
are a number of factors that effect what we buy, when we buy, and why we buy. In
reference to mobile marketing, the factors that influence consumers are demographically
(i.e., age, gender, education, and occupation), brand familiarity, relevant on
advertisement, attitude towards SMS and MMS, brand loyalty and trust. The need to
identify these factors influencing customer’s level of responsiveness towards mobile
marketing is very crucial. By identifying the factor to maintain the current customer,
marketers, will be able to sustain in addition of reducing cost in attracting new customers.

Mobile phone has become essential part of personal and business life crosses all
age and gender boundaries. The of mobile phone usage can potentially play a significant
role in assisting older people in many ways especially in terms of maintaining social
relationship, providing sense of safety and accessibility. However, Elderly people seem to
have a neglected user group in design of mobile devices and services, although the
requirements to create well functioning solution for them are very well known. People
over the age of 60 use mobile phones for very limited purposes, such as for calling or
SMS in emergency situations. The use of Short Messaging Service to access customers
through their handheld devices is gaining popularity, making the mobile phone the
ultimate medium for on- to-one marketing. Most complaint is related to displays that are
too are too small and difficult to see, buttons and characters causing them to push wrong

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numbers frequently. They also avoid using more complex function, non user-friendly
menu arrangement and unclear instruction on how to find and use a certain function and
services that are too expensive. Ease of use and actual need of the services are important
criteria. The elderly are ready to begin using the services as long as they truly facilitate
independent living.

Studying interactive mobile services such as SMS and MMS suggests drawing
upon theories in marketing, consumer behavior, psychology and adoption to investigate
their organizational and personal use. But research on mobile marketing via SMS is
scarce. Obtain fine-tuned insight into mobile users and their preferences, not just user
demographics. More detailed customer preference information will enable better tailoring
of advertising packages and customer services. Provide relevant and timely
advertisements, using location, customer identity and preferences to ensure relevant
advertising sent to customers is appreciated. For example, a coffee coupon for Starbucks
in Japan sent five weeks after an Australian tourist has returned home is of no value.
When offering design tools and services for mobile advertising, bear in mind that retailers
are looking for simple yet effective solutions for creating ads to reach out to their
customers.

In general, advertising on mobile devices has great potential due to the very
personal nature of the devices and fine-tuned targeting possibilities. Mobile advertising
provides retailers with a complete and cost-effective channel through which to build
customer relationships and drive sales. Retailers can “mobilize” and build upon existing
customer acquisition and retention programs through a variety of mobile mechanics such
as mobile alerts to update customers of sales, new products and deliveries or extended
hours and “mobile coupons” to attract customers with deals. The Asia-Pacific region is
expected to account for 47.9% of global mobile phone subscribers by 2011. According to
figures released by Strategy Analytics, nearly 1 in 3 mobile subscribers will use a mobile
broadband connection by 2012. The nature of the mobile phone makes it a powerful
advertising medium as it is always there and always on.

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1.6. Definition of Important Terms

This section will provide readers with definition of important or frequent used
terms. This is to ease and increase the understanding of readers towards the whole
research paper. The progress of this section will follow a sequence in which it will list
down the definitions of terms for one variable to another in point form, hoping that
readers will not feel confuse.

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

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


government, marketing or opinion research, or the demographic profiles used in such
research. Socioeconomic groups, characterized by age, income, sex, education,
occupation, etc., that comprise a market niche. Example:

2. Responses

Response refers to consumers’ reaction to the SMS or MMS ads sent. It means that
consumers make an action such as either opening the message up and read the content of
the message or sent another SMS to confirm your participation, not just ignore and leave
it when it sent to

3. Brand familiarity

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


organization’s name, history, reputation, and advertisement. A brand can be recognized
as the identifiable symbol, sign, name, or mark that distinguishes an organization or a
product from its competitors. Brand awareness or brand familiarity refers to customers'
ability to recall and recognize the brand under different conditions and link to the brand
name, logo, jingles and so on to certain associations in memory. It helps the customers to
understand to which product or service category the particular brand belongs to and what
products and services are sold under the brand name. It also ensures that customers know

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which of their needs are satisfied by the brand through its products.(Keller). Sources:
http://en.wikipedia.org/wiki/Brand#Brand_Awareness.

4. Relevant on advertisement

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


information usually paid for and usually persuasive in nature about products, services or
ideas by identified sponsors through the various media."(Bovee, 1992, p. 7) Relevance on
advertisement means the content of the advertisement which sent to consumer at correct
time to correct target market. In other words is marketer’s ability to customized and
tailored to only receive messages relevant to interests. Sources:
http://www.wsu.edu/~taflinge/addefine.html

5. Attitude towards SMS and MMS

Attitude is the mediator between belief and behavioral intention. The SMS (Short
Messaging System) is became popular than ever worldwide. Majority Malaysian people
are knowledgeable about technological gadgets especially cell phone. Besides the
convenience of usage in anywhere or at any time, the user can also listen to music, play
games or surf the internet. These entertainment beliefs have the strongest effect on
attitude. People are getting closer than ever to their phones because of these
entertainment value features of cell phone. These positive attitudes towards SMS
influence the level of responses towards mobile marketing.

6. Brand loyalty

Brand loyalty is usually the result of continued satisfaction with a product or its price and
is reinforced by effective and heavy advertising or in simply words the tendency of
consumers to continue buying a specific brand's product or service, despite the
competition. Strong brand loyalty, which is often subjective or subconscious, reduces the
impact of competitive brand promotions and brand switching- A purchasing pattern
characterized by a change from one brand to another unless it is for an improved product.

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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

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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 Overview of previous research

Graham, 2001 studied the future of wireless advertisings and found that 60% of
respondents showed interest in receiving text advertising through mobile phones and
Black (2001) reported that brand awareness for the advertized brand increased more than
80% among respondents who received on average six SMS advertising. Barwise and
Strong (2002) studied SMS as a potential advertising means for young people, and found
that 51% were very satisfied with a service that was customized and tailored to only
receive messages relevant to interests. 84% stated they would recommend such a service
to a friend, and 63% said that they had either replied or taken action as a result of
receiving the SMS ads

The authors, however, stressed the importance of the relevancy of the SMS
contents as prerequisite to motivate young people to take an action. In addition, the
authors showed that mobile advertising were more favorable to consumers for location-
sensitive and time critical events. Enpocket (2002) reported that 94% of respondents had
read the SMS advertising messages, and 23% of them forwarded the marketing messages
to friends. Rettie et al. (2005) analyzed the acceptance of 26 different SMS ads. The
result of the study showed that the acceptance of SMS ads was 44 percent. The authors
concluded that interest, relevance and monetary incentives were the main reasons that
encouraged consumer acceptance. Doherty (2007) concluded that consumers will accept
SMS ads only if it is relevant and entailed quality advertising.

Carroll et al. (2005) and Carroll et al. (2007) find that permission, control,
content, delivery and wireless service provider control are the main determinants behind
consumer acceptance of SMS advertising. Haghirian & Madlberger (2005) found that
advertising value and content are the main factors that influence the acceptance of SMS
ads. Anderson and Nilsson (2000) showed that SMS advertising had a positive impact on
increasing brand awareness and purchase intention. Tsang et al. (2004) found that
respondents had a negative attitude toward receiving SMS ads without permission, since
they regarded that as an irritating behavior. However, respondents claimed that their

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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

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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.

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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 prior-
permission to receive mobile advertising on attitudes towards mobile advertising will be
examined. People hold certain attitudes towards advertisements, even in childhood
(Derbaix & Bree, 1997). Previous studies (e.g. Mittal, 1994; Zanot, 1984) show that the
general attitude towards traditional advertising was negative. Zanot (1984) reviewed
survey results from the 1930s to 1970s and concluded that the public's attitudes towards
advertising became unfavorable gradually.

Mittal (1994) found that most of his survey respondents felt their intelligence was
insulted by the advertising, and less than a quarter of TV advertisements were credible. It
seems that specific age groups hold different attitudes. Young people tend to have a
positive attitude towards certain kinds of advertising, for example, provocative
advertisements (Vezina & Paul, 1997). Attitudes towards Internet advertising, however,
are mixed (Schlosser, Shavitt, & Kanfer, 1999). Similar to those to traditional
advertising, general attitudes towards mobile advertising are also unfavorable (e.g.
Caroll, Barnes, & Fletcher, 2005; Lee, Tsai, & Jih, 2006; Tsang et al., 2002). The reasons

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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

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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.

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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

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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.
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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.
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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
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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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2.3.5 Trust

Trust generally decreases the perceived risk of using services (Garbarino and
Johnson, 1999). In recent study, for example, preceding research (Reichheld et al., 2000)
proposed trust as another important antecedent of loyalty. The trust concept has been
studied in a number of disciplines, and various definitions have been proposed (Lewicki
et al., 1998). Trust is consistently related to the vulnerability of the trustor (Bigley and
Pearce, 1998) because without vulnerability of the trustor upon the trustee, trust becomes
irrelevant. In business studies, trust has been found to be important for building and
maintaining long-term relationships (Geyskens et al., 1996).

A new study found some surprising statistics when it comes to how those in the
United Kingdom view mobile marketing. The study - which was a collaborative effort
among Aeneas Strategy, Wasabi Mobile Marketing, Camerjam, MSEARCH Groove and
Every Single One of Us - took an in-depth look at the progress that mobile advertising is
making in the United Kingdom. Surprisingly, less than half of the people questioned
think that mobile advertising can be considered trustworthy. The study further found that
consumers are willing to share some, but not all, personal information. Most consumers
are willing to share certain information to receive more targeted messages, such as those
pertaining to gender, interests, music or hobbies. However, they are significantly less
willing to share information such as location or information about income. Overall, the
16 to 24-years old age group is the most willing to share general information, but the
least willing to share information on location and income.

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


required for tailoring messages raises privacy concerns. Corporate policies must consider
legalities such as electronic signatures, electronic contracts, and conditions for sending
SMS messages. Seven experts who had used SMS campaigns welcomed European
government and industry initiatives to restrict unsolicited SMS. They argued that sending
unsolicited messages hurts the mobile advertising industry. According to all the experts,
advertisers should have permission and convince consumers to ‘‘opt-in’’ before sending
advertisements. A simple registration ensures sending relevant messages to an interested
audience. Unsolicited messages, commonly known as spam, stifle user acceptance –

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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

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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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2.4.5 Relationship between trust and responses mobile marketing

Trustworthy always gets into way in consumers’ purchase behavior. Based on the
Technology Acceptance Model (TAM), this study aims to predict the consumers’
purchase intention by integrating trust and perceived risk into the model to empirically
examine the impacts of key drivers. With 705 samples obtained from users of Yahoo!
Kimo online vendor, this study applied the Structural Equation Model (SEM) to examine
the proposed model. The results indicate that perceived ease of use (PEOU) and
perceived usefulness (PU), trust, as well as perceived risk, significantly impact purchase
intention. Moreover, trust significantly reduced perceived risk. Same goes to mobile
marketing. Trust can affect the level of responses towards mobile ads or marketing. If
retailer couldn’t get consumer’s trust, the likelihood to get positive response from
consumers is massively low.

2.5 Conclusion

This chapter two had basically started the discussion with a brief overview of the flow
of this chapter. It then followed by the main content of this chapter, which is a lengthy,
detail and informational literature review. Throughout this section readers are being
exposed to focus of past research which provides very useful information for the
development of this research paper and equips readers with a fundamental introduction,
knowledge and understanding towards the industry. After that the chapter touches on the
relationship between the independent and dependent variables of this research project. It
is actually a really short and simple summary for the extensive literature review. Finally
this chapter ends with this summary that spells out the big picture of the chapter.

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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
Attitudes towards SMS and marketing
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

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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 (Heinonen-
Mavrovouniotis, Sarah, 2007). However, most of the people still have the negative
attitude toward SMS ads (Fatim Bamba, Stuart J. Barnes 2007). That is why this paper is
conducted in order to discover the factors that actually trigger the responses towards
mobile marketing in Malaysia. This paper focuses on examining the factors that influence
Malaysia consumers’ intentions to accepting SMS advertising.

Several studies conduced by Nathadej Lertdejdecha from Thailand claimed that


there is a positive relation between relevant on advertising, attitude toward SMS and
MMS, and brand familiarity. A constructive brand attitude possesses cognitive–affective–
conative components and is prominent in the information processing and decision-
making process (Lutz, 1975).Many studies identify the construct of attitude toward a
brand as one of the most important determinants of consumers’ behavioral intentions
(Fishbein and Ajzen, 1975). Some recent research has begun to address the area of brand
and their relationship with consumers (Chauduri and Holbrook, 2001). Does consumption
respond to promotion? Many studies have focused on the effects of promotion on brand
switching, purchase quantity, and stockpiling and have documented that promotion
makes consumers switch brands and purchase earlier or more (Pauwels and Srinivasan,
2004).

Brand loyalty and trust also effect consumers’ responses on mobile marketing
since loyalty consumers would pay attention to advertising to the brand them loyal with.
Trustworthy to certain brands also contribute to consumers’ responses on mobile

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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 “one-
to-one dialogue” with customers (Kavassalis et al., 2003). An experimental survey by
Ericsson indicates that 60 per cent of samples liked receiving mobile advertising
(Barnes, 2003). Similarly, surveys using popular brands’ trial mobile advertising
found that as many as 84 per cent of 500 young British adults are likely to
recommend the service to their friends, while only 7 per cent are likely to abandon the
service (Barwise and Strong, 2002). It means that consumers are likely to respond
SMS ads if they are sent from the company that they know or are familiar.

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

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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 attributes-
relative advantage, compatibility, complexity, and trialability- in the diffusion of
innovation perspective are important belief characteristics in explaining consumer
attitudes towards SMS ads (Muk, Alexander, 2007). In this case, one would like to
know Malaysia consumers’ perception toward SMS ads. The seventh hypothesis
developed for this research is attitude towards SMS advertising will influence on
responses of Malaysia consumers significantly.

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
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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
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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.

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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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3.6.1 Primary Data Collection

Under primary data collection, survey is used to obtain data needed. The key
point here is that the data collected is unique to this research and, until it is publish, no
one else has access to it. As compared to other data collection methods, survey method
allows the collection of huge amount of data in an economical manner. Besides that it
also provided five advantages which are (1) standardization, (2) ease of administration,
(3) ability to tap the unseen, (4) suitability to tabulation and statistical analysis and last
but not least (5) sensitivity to subgroup differences (Burns and Bush, 2003).

As for the mode of data collection, self-administered surveys that allow the
respondents to complete the survey on this or her oneself were adopted. It is attractive in
terms of costs saving, gave respondents control the pace at which they fill survey and
avoid interviewer-evaluation apprehension (Burns and Bush, 2003). The following two
paragraphs are describing the manners used for distributing questionnaire.

The questionnaires will be distributed in campus and areas that are nearer to
campus. Drop-off approach issued to distribute questionnaire. Prospective respondent is
approached, introduced with general purpose of the survey and questionnaire left to
respondents to fill out on his or her own. This method is used because it is suitable for
local market survey, have quick turnaround, minimal interviewer influence on answer,
high responses rates and inexpensive according to one article in
www.emeraldinsight.com.

Interviewer then will provide questionnaire and a brief introduction to the


respondents and then let them to fill up the questionnaire on his or her own. It is without
interview, unless the respondent has doubt and need interviewer’s explanation. This is to
avoid respondents’ confusion and misinterpreted question in the questionnaire. This
method is very easy and saving time (Burns and Bush 2003).

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3.6.2 Secondary Data Collection

For secondary data collection, it is accumulated mostly through online


information that collected by other researcher, other than the user. Secondary data
analysis saves time that would otherwise be spent collecting data and, particularly in the
case of quantitative data, provides larger and higher-quality databases than would be
unfeasible for any individual researcher to collect on their own. In addition to that,
analysts of social and economic change consider secondary data essential, since it is
impossible to conduct a new survey that can adequately capture past change and/or
developments according to a source in http://en.wikipedia.org/wiki/Secondary_data.
Online databases that have been accessed are Emerald Insight and other internet sources
such as news articles, reports or statistics. Most of the journals are collected from Journal
of Mobile Marketing topics such as “Consumers’ Perception of the Effectiveness of Short
Message Service (SMS) and Multimedia Message Service (MMS) as Marketing Tools”.
Free access provided by the university like free wireless services, computer lab and
libraries has saved a lot of costs and time.

3.7 Data Analysis

After collecting questionnaires from respondents and keying data entry, the data
will be used for analysis by running descriptive analysis and hypothesis testing. First of
all, data analysis is a process of gathering, modeling, and transforming data with the goal
of highlighting useful information, suggesting conclusions, and supporting decision
making. Data analysis has multiple facets and approaches, encompassing diverse
techniques under a variety of names, in different business, science, and social science
domains. In RobertNiles.com quote “You wouldn't buy a car or a house without asking
some questions about it first. So don't go buying into someone else's data without asking
questions, either. Okay, you're saying... but with data there are no tires to kick, no doors
to slam, no basement walls to check for water damage. Just numbers, graphs and other
scary statistical things that are causing you to have bad flashbacks to your last income tax
return”. This quote emphasize data analysis is very crucial in a research. By analyze all
consumer data from questionnaire; the result would not be questionable since the data

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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
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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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3.7.2 Reliability Analysis

Aside from that, all variables are to be tested via reliability analysis. Reliability
refers to the extent to which a scale produces consistent results if repeated measurements
are made. Therefore, reliability can be defined as the extant to which measures are free
from random errors. The purpose of reliability analysis is to construct reliable
measurement scales, to improve existing scales and most importantly to evaluate the
reliability of the questions. This is vitally important for without reliability, research
results will be replicable. Normality test will also be conducted in this chapter.
Researchers can carry out normality test on the metric data to establish the normality of
the data. Upon completing the normality test, the type of test to use in hypothesis testing
can then be determined.

3.7.3 Significant Differences Test

This test of significant differences is used to compare the sample statistics of two
subgroups in the sample to see whether or not there are statistically significant
differences between their corresponding population values (Burns and Bush, 2003).
Customers’ response has been selected for significant differences based on gender.
Sample t- test will be used to test and compare the means or percentages of two different
groups or samples. In the t-test, independent sample t-test between gender and customers’
responses will be measure.

3.7.4 Hypothesis Testing

Hypothesis testing is carried out to prove propositions not long after conducting a
normality test. This test is run by making use of correlation test. There are two levels of
correlation tests. The first level is conducting normality testing. If it is normally
distributed, , Pearson Correlation (r) will be conducted and if the data is not normally
distributed, Spearman Rho will be conducted to measure the associations of the variables
testes for hypothesis.

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3.7.5 Other Testing

From this statistics, researchers are able to discover the relationship between the
dependant variables and independent variables. T-test, analysis of variance, Bivariate
Correlation and Regression, Cross Tabulation, Multivariate Data Analysis and
Correlation coefficient (r) are among the tests that will be performed during hypothesis
testing. Finally, a discussion of findings is held to analyze all results found from the
descriptive analysis, reliability analysis, significant differences test, normality test and
hypothesis testing. In this section, all results from the analysis will be explained in detail.

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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

Table 1 : Respondent’s gender


Frequency Percent Valid Percent Cumulative Percent
Valid Female 106 42.4 42.4 42.4
Male 144 57.6 57.6 100.0
Total 250 100.0 100.0

In this study, the questionnaires were distributed to female and male and the result for
descriptive statistic conducted illustrate that female is 42.4% and male is 57.6%
respondents as shown in Table 1. It is because from a study conducted by Ahasanul
Haque and Noor Raihan on Mobile Commerce: An evaluate Customer Perception For
Marketing Strategy In Malaysia claims that mostly male respondents showed favorable
attitudes to use mobile technology compared to female respondents. In addition, male
respondents showed their interest for pertaining information, such as financial
information, stock price, sports and game, and travel quick and timely. It is evident from
study that customers always search for more value added services when using their
mobile devices.

Figure 3: Respondents’ Gender Participate in this Study

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The chart above in Figure 1 illustrates the difference between female and male
respondents that participate in this study. Basically, percentage of male respondents is
higher than female respondents. It is evident from this study that male customers always
search for more value added services when using their mobile devices. However, they
rarely response to mobile marketing because they are more interested in seeking
information such as financial information, stock price, sports and game, and travel rather
than response to mobile advertising. Thus, there are 144 male and 106 female
respondents contribute in this study.

Table 2: Respondents’ Age Range


Frequency Percent Valid Percent Cumulative Percent
Valid 18-19 years old 13 5.2 5.2 5.2
20-21 years old 55 22.0 22.0 27.2
22-23 years old 147 58.8 58.8 86.0
24-25 years old 35 14.0 14.0 100.0
Total 250 100.0 100.0

The descriptive statistics result for age range is shown in Table 2 above. This research
specifically aims for students in Multimedia University, Malacca age range between 18-
25 years old. Hence, the results shown that most of students at the age of 22 to 23 years
old are highly participated in this study followed by students at the age of 20 to 21 years
old, 24-25 years old, and at the last place is at the age between 18-19 years old.

Figure 4: Respondents’ Age Range Percentage

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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

Frequency Percent Valid Percent Cumulative Percent


Valid Working 38 15.2 15.2 15.2
Not 212 84.8 84.8 100.0
working
Total 250 100.0 100.0

Table 3 above is descriptive statistic for respondent’s occupation status which shown that
212 students are not working at all and 38 students are working in other means taking
part-time job apart from studying. This is because high numbers of student more focus on
their study rather than intention to work.

Figure 5: Respondent’s working status percentage

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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

Frequency Percent Valid Percent Cumulative Percent


Valid RM250 and less 75 30.0 30.0 30.0
RM250 – RM500 90 36.0 36.0 66.0
RM501 – RM 65 26.0 26.0 92.0
1,000
RM1,001 – RM 12 4.8 4.8 96.8
1,500
RM1,500 and 8 3.2 3.2 100.0
above
Total 250 100.0 100.0

The descriptive statistics result from student’s income level. Student’s income level is
actually their monthly allowances as well as income from student who have part-time job.
As shown in Table 4, most the students participate in this study have monthly allowances
that are between RM250 to RM500.

Figure 6: Respondent’s Income Level Percentage

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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

Cumulative
Frequency Percent Valid Percent Percent
Valid Diploma 12 4.8 4.8 4.8
Degree 219 87.6 87.6 92.4
Master 1 .4 .4 92.8
Others 18 7.2 7.2 100.0
Total 250 100.0 100.0

Figure 7: Respondent’s education level graph


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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

Frequency Percent Valid Percent Cumulative Percent


Valid Owned a 250 100.0 100.0 100.0
hand phone

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

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 151 60.4 60.4 60.4
No 99 39.6 39.6 100.0
Total 250 100.0 100.0

Table 7 shows descriptive statistics on level of awareness of SMS-based mobile


advertising in this research. Surprisingly, quite numbers of respondent’s still aren’t aware
of the existing of mobile marketing which is only 155 respondents answer ‘yes’ and 99
respondents answers ‘no’ respectively to question that measure the level of consumer’s
awareness toward SMS-based mobile advertising. This doesn’t mean that they have no
idea regarding the existence of it. Most of respondents admit that they didn’t realize the
message they received daily is actually called SMS-based mobile advertising or widely
known as mobile marketing.

Figure 8: Respondent’s Level of Awareness Percentage

Figure 7 above shows that 62% and 38% of respondent’s says ‘yes’ and ‘no’ respectively
to question number 7 which is intend to measure consumer’s level of awareness towards
SMS-mobile advertising.

Table 8: Respondent’s number of SMS-based mobile advertising replied in a week


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Valid Cumulative
Frequency Percent Percent Percent
Valid Once 17 6.8 10.7 10.7
Twice 29 11.6 18.2 28.9
More than three 2 .8 1.3 30.2
times
Never ( not 111 44.4 69.8 100.0
bothered)
Total 151 63.6 100.0
Skipped this 99 36.4
question
Total 250 100.0

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


graph

Never (not bothered) 111

Table More than three times 2 and


figure 8 Column2 above
Twice 29
is the
numbers Once 17 of
SMS- based
0 50 100 150
mobile
advertising have replied by respondents in a week. A total of 111 respondents say that
they do not bothered to response to SMS-based mobile advertising even though they open
and read it. 17 respondents response to it once, 29 respondents response twice and only 2
respondents response 2 times in a week. A total of 151 over 250 respondents aware the
existence of mobile marketing and have response to it. Respondents that skipped this
question mean they answer ‘no’ to the previous question on awareness of mobile
marketing. Indirectly it 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.

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4.4 Reliability Testing

After the questionnaire is distributed the reliability of the data collected was
tested. For reliability analysis, the independent variables in this study was measured
which are brand familiarity, relevance on advertisement, attitude towards SMS
advertising, Brand loyalty, and trust. The reliability test will indicates that the reliability
of the questionnaire. Although there is no specific minimum value for the alpha
coefficient, ‘a higher value indicating a higher degree of internal consistency or
reliability’ (Gravetter and Forzano 2003, p. 391) is expected. Furthermore, it is noted that
the reliability coefficient that is above 0.70 is considered reliable and acceptable mostly
in social science research situation (ats.ucla, 2009).

4.4.1 Brand Familiarity

Table 9: Reliability Analysis for Brand Familiarity

Reliability Statistics
Cronbach's Alpha Based on
Cronbach's Alpha Standardized Items N of Items
.784 .791 7

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Item Statistics
Std.
I probably response to SMS-based mobile ads if:
Mean Deviation N
25. I am familiar with the products/services brand name 2.6720 .89421 250
26. The brand name previously used by family & friends 2.7440 .81061 250
27. I have no idea about the product’s brand name 2.9440 .88544 250
28. It is not necessarily I response to SMS-base mobile ads even though 2.9240 .74864 250
I am familiar with the product’s brand name
29. The products/services captured my interest even though I have no 2.4840 .95782 250
idea about the brand name
30. I have experience using the products/services before 2.4160 1.05041 250
31. Brand familiarity does not influence my response towards SMS- 2.4680 1.01444 250
based mobile ads

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

Reliability Statistics
Cronbach's Cronbach's Alpha Based on
Alpha Standardized Items N of Items
.660 .660 7

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Item Statistics
Std.
Mean Deviation N
32. I probably respond to SMS-based mobile advertising every time I 1.8960 1.01256 250
received one
33. I probably respond to SMS-based mobile advertising if the 2.4040 .90113 250
product/services captured my interest
34. I probably NOT respond to SMS-based mobile advertising that I 2.8440 .92035 250
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 250
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 250
37. Brand information is important for me before I response to any SMS- 2.8200 .86173 250
based mobile advertising
38. Relevance on advertisement does not influence my response to wards 2.4240 .93795 250
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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4.4.3 Attitude towards SMS Advertising:

Table 11: Reliability Analysis for Attitude towards SMS Advertising

Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.626 .629 9

Item Statistics
Std.
Mean Deviation N
39. I probably respond to SMS-based mobile advertising every time 2.0480 1.05933 250
I received one
40. I probably search for information about the SMS-based mobile 2.3040 1.09562 250
advertising before I response
41. I probably NOT response to the same SMS-based mobile 2.8760 1.05502 250
advertising that I have response before
42. I tend to at least open the SMS-based mobile advertising that I 2.6080 .93908 250
received, even though I am not interested to it
43. If I am not interested to SMS-based mobile advertising that I 2.3080 1.11089 250
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 1.04581 250
if I am NOT interested to it
45. I do not encourage my family and friends to response to SMS- 3.0360 .98314 250
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 .99758 250
mobile advertising anytime , anywhere
47. My attitude doesn’t influence my response towards SMS-based 2.7840 .87430 250
mobile advertising

The third variables to be discuss here is attitude towards SMS advertising. The
Cronbach’s Alpha score for this variable is 0.626 which mean this variable is not reliable
because as discussed earlier, if the alpha scores is less than 0.70 is consider that the
variable is reliable. Furthermore, in earlier discussion mentioned that consumer behavior
is difficult to determine. Therefore, it is reasonable to say that the results of reliability test
illustrate not reliable for data analysis.

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4.4.4 Brand Loyalty

Table 12: Reliability Analysis for Brand Loyalty

Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.695 .697 8

Item Statistics
Mean Std. Deviation N
48. Brand name is a very important for me before I response to SMS- 2.9920 .89169 250
based mobile advertising
49. I probably response to SMS-based mobile advertising if I am 2.8040 .95142 250
loyal to that brand name
50. I probably NOT response to SMS-based mobile advertising that is 2.7600 .90868 250
not recommended by my friends and family
51. I probably NOT response to product/services that I never tried 2.7640 .87140 250
before
52. I probably response immediately to new product/services offer 2.2280 .93139 250
through SMS-based mobile advertising
53. I do not mind trying new product/ services promote through SMS- 2.3920 .93479 250
based mobile advertising
54. I probably delete SMS-based mobile advertising after I received if 3.0800 .93654 250
I never heard about the brand name
55. I probably response to SMS-based mobile advertising if the 2.6720 .96755 250
product/services previously used by my family and friends

The fourth variable discuss here is brand loyalty. The Cronbach’s Alpha score for this
variable is 0.695 which mean this variable is almost reliable if rounded the number up, it
is equal to 0.70. If the alpha scores are equal to 0.70, it is consider that the variable is
reliable. Question 54 gets the highest mean which is 3.0800. This means most of
respondents tend to agree on this question. It shows that brand loyalty contributes to
major response of mobile marketing as consumers admit that they probably delete SMS-
based mobile advertising if they never heard about the brand name. By this proves how
loyalty to a brand name has influence consumer in order for them to response towards
SMS-based advertisement. Hence, it is reasonable to say that the results of reliability test
illustrate are reliable for data analysis.

4.4.5 Trust

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Table 13: Reliability Testing for Trust

Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.755 .759 8

Item Statistics
Mean Std. Deviation N
56. I trust SMS-mobile advertising 2.1200 .95774 250
57. I probably response to SMS-based mobile advertising 2.3560 .93850 250
recommended by my friends and family
58. I probably NOT response to SMS-based mobile advertising if I do 3.3500 .89523 250
not trust the brand
59. I probably NOT response to SMS-based mobile advertising if they 2.9640 1.05411 250
asked for personal information
60. I probably NOT response to brand name that I never heard before 2.9000 1.05758 250
61. I probably NOT response to brand name that have negative 3.1440 1.00364 250
reputation/image
62. Brand information is very important before I response to SMS- 2.8800 1.05358 250
based mobile advertising
63. I do not mind to take risk when response to SMS-based mobile 2.1320 1.11334 250
advertising

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

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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 N Mean Std. Deviation t Sig.


Male 144 3.4597 0.78144
3.837 0.000
Female 106 2.9057 0.92840

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


Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Brand Familiarity .340 250 .000 .881 250 .000

Table 15: Normality Test for Relevance on advertisement

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Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Relevance on Advertisement .323 250 .000 .869 250 .000

Table 16: Normality Test for Attitude towards SMS advertising


Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Attitude towards SMS advertising .349 250 .000 .866 250 .000

Table 17: Normality Test for Brand loyalty


Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Brand loyalty .304 250 .000 .874 250 .000

Table 18: Normality Test for Trust


Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Trust .278 250 .000 .856 250 .000

Herewith, as discussed earlier in this study the normality test is conducted in order to measure the
normality of data distribution. After the test of normality conducted, test of association need to be measured
between dependent and independent variable to clarify the relationship. The result of normality test portray
that Spearman’s Rho test should be used to test the hypothesis and examine the association because the data is
not normally distributed with the value of significant is less than 5% for all independent variables.

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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
Level of Brand
response familiarity
Spearman's rho Level of response Correlation 1.000 .453**
Coefficient
Sig. (2-tailed) . .000
N 250 250
Brand familiarity Correlation .453** 1.000
Coefficient
Sig. (2-tailed) .000 .
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).

Explanation about the analysis:


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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
Level of Relevance on
response advertisement
Spearman's rho Level of response Correlation 1.000 .527**
Coefficient
Sig. (2-tailed) . .000
N 250 250
Relevance on Correlation .527** 1.000
advertisement Coefficient
Sig. (2-tailed) .000 .
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).

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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
Level of Attitude towards
response SMS ads
Spearman's rho Level of response Correlation 1.000 .369**
Coefficient
Sig. (2-tailed) . .000
N 250 250
Attitude towards ads Correlation .369** 1.000
Coefficient
Sig. (2-tailed) .000 .
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).
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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
Level of
response Brand loyalty
Spearman's rho Level of response Correlation 1.000 .310**
Coefficient
Sig. (2-tailed) . .000
N 250 250
Brand Loyalty Correlation .310** 1.000
Coefficient
Sig. (2-tailed) .000 .
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).

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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 (p-
value) of 0.310 which means as discussed earlier if the p-value is near to +1 the
association is stronger and the significance level is less than 5%. This indicates that the
hypothesis between the two variables has significant relationship because the significant
value is 0.000. Due to this, hypothesis 4 is accepted. Attitude towards SMS advertising is
significantly correlated with the level of consumer’s responses on mobile marketing.

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

Correlations
Level of response Trust
Spearman's rho Level of response Correlation 1.000 .469**
Coefficient
Sig. (2-tailed) . .000
N 250 250
Trust Correlation .469** 1.000
Coefficient
Sig. (2-tailed) .000 .
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).

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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
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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

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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
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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.

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5.4 Implication of study

As a conclusion, the findings in this research indicate that all of the independent
variables in this research are positively significant and have relationship with the
dependent variable. As such, it conclude that the greater the positive each independent
variables, the greater level of consumers’ response. Hence, the entire hypothesis testing
in this research are accepted and it is proven by conducting Spearman’s Rho analysis to
test the association and the result illustrate that there is a significant influence between
both variables discussed in this study. Apparently, all the independent variables which are
brand familiarity, relevance on advertisement, attitude towards SMS advertising, brand
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

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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

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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.

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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 Coca-
Cola, McDonalds, and mobile operators, which have successfully incorporated the
mobile channel into the promotion of their goods and services. Based on these facts it
seems that it is much easier for a customer to get into a dialogue with a well-known and
established brand than with an unknown one. Thus, companies should strengthen their
brand among consumers in order to develop trust. By doing so, the addition of new
marketing channels, such as mobile devices into the promotion mix becomes easier.

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