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Factors Influencing Advertising Message Value by Mobile
Factors Influencing Advertising Message Value by Mobile
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Factors Influencing Advertising Message Value By Mobile Marketing Among Jordanian Users: Empirical Study
Younes A.A.Megdadi Associate Prof., Middle East University, Amman, Jordan E-mail: [email protected] Talal Taher Nusair Associate Prof., Middle East University, Amman, Jordan E-mail: [email protected] Abstract Mobile marketing offers great opportunities for businesses which can communicate directly with their consumers without time or location barriers. Many factors influencing advertising message of mobile marketing still need further investigation. M-advertising addresses consumers with individualized advertising messages via mobile devices. This study discusses the relevance of m-advertising and investigates how perceived and influenced by advertising value of mobile marketing to be increased. Study analysis mainly based on Jordanian consumers. Study sample consist of (500) mobile phone among Jordanian users was interviewed. The results shows that the advertising message content is a greatest relevance for the perceived of advertising message value, while a high frequency of message exposure has a negative impact on it.
1. Introduction
Mobile technologies have become a commonplace in our everyday lives (Balasubramanian, S., Peterson, R. A. and Jarvenpaa S. L. 2002). Mobile devices have changed the way we communicate and interact (Dickinger, A., Haghirian, P. and Schlegelmilch, B. B.,2003,). More than that, mobile technologies have not only altered our style of communication, but they also have a strong impact on modern management. They allow existing activities to be carried out more efficiently and enable many entirely new activities (Balasubramanian, S., Peterson, R. A. and Jarvenpaa S. L. 2002). As a consequence, mobile technologies have the potential to create new markets, alter the competitive landscape of business, and change existing societal and market structures (Stewart, D. W. and Pavlou, P. A., 2002,). Mobile technologies have a very powerful impact on modern business. Proponents of this technology claim that the growth and importance of m-commerce will exceed that of e-commerce (Lee, Y. E. and Benbasat, I. 2003,).But mobile devices have also changed the marketers world. Mobile devices enable interactions between customer and advertiser that become increasingly rapid and easy and are independent from the consumers location. Users of mobile devices can receive digital photographs, moving video images and high-quality audio from their mobile handsets. Corporate users can connect to their office computer networks and send and receive e-mails (Robins, F. 2003). Opportunities for direct interaction with consumers are
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unprecedented(Hoffman,D.L.andNovak,T.,P.1989,).Consumers can be provided with information they are interested in, which gives marketers the chance to build customer relationships of a new dimension. Mobile technologies and their application can be successfully integrated into marketing activities(Balasubramanian, S., Peterson, R. A. and Jarvenpaa S. L. 2002).As a result, modern advertisers are increasingly relying on various modes of interactive technology to advertise and promote their products and services. Despite this, potential customers so far did not have the opportunity to signal their likes and dislikes with marketing activities via mobile devices. This puts marketers at a high risk (Robins, F. 2003)as they are unsure whether their marketing activities cause positive or negative reactions by the customer. Marketers today want to use efficiently the communication channels that mobile media provide, they need to understand how mobile consumers perceive and evaluate mobile devices as a source of advertising. For a long period of time it has been clear that perceptions of the advertising medium affect attitudes toward individual advertising (Ducoffe, R. H., 1995). This study aims to contribute to this objective and results of an empirical investigation concerning advertising message value via mobile devices. It specifically focuses on an aspect of mobile advertising that has not been discussed in scientific literature so far advertising message value of mobile marketing.
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usability and technological limitations. These the following characteristics of mobile advertising were are: 2.3.1. Personalization M-advertising provides potential for personalization, because mobile devices usually carry the users assigned identity(Lee, Y. E. and Benbasat, I. 2003). If marketers employ mobile devices for their advertising activities, they can use consumer feedback to customize their messages and offerings and collect information about consumers preferences to improve future products and services.This provides an exceptional advantage for marketers, since it enables them to reach their potential customers in a very individual way and thus increase the relationship with the user. Users are receptive to advertising that is personalized and relevant to their lifestyle, states Reza Chady, the head of global market research at Nokia Networks (DeZoysa, S., 2002). The aspect of personalization turns m-advertising into a very important m-commerce application, since it allows the usage of demographic information collected by wireless service providers and information on the current location of a mobile user. Thus, advertising can be carried out very precisely and with a clear focus on the target group (Varshney, U. and Vetter, R., 2002,). An argument shows that there is an urgent need for marketing techniques based on knowledge of customer profiles, history, and their needs. Beyond personalization upon consumers feedback, the ability to locate consumers allows the specific situation of a user to be considered. Consequently, advertising activities can be adapted to time and time-related items such as local events. 2.3.2. Interactivity Consumer-marketer relationships are interactions in which actors are trying to satisfy their goals. Marketing communication can be viewed as coordinated action by consumers and marketers for fulfilling goals that neither party can accomplish individually (Stewart, D. W. and Pavlou, P. A.,2002). M-advertising activities increase the possibilities of interaction, since they allow an immediate and direct feedback from the consumer. Similarly to Internet-based advertising, m-advertising can react very fast to customers feedback.
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5. Advertising Value
The previous sections have outlined the unique instructional opportunities that mobile advertising provides for marketing. The following subsections present an Advertising Value Model for Mobile Advertising, which aims at determining key influencing factors for the advertising value of madvertising. The components of the model are presented beginning with the dependent variable advertising value (see Figure 1). An intensive literature review was used to establish content validity, i.e. whether the items represent all situations we sought to measure. In our model, we assume that (6) variables have a direct impact on the effectiveness of mobile advertising.
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5.1. Characteristics of Message Content Advertising messages refer to communication exchanges between advertisers and consumers (Ducoffe, R. H. 1996). Advertising theorists have been describing the critical stimulus features of various advertising media and their content(Rodgers, S. and Thorson, E. 2000).Still advertising via mobile devices limits the possibilities of advertisers. The message sent needs to have certain attributes. It should be concise, use a language which is understood by the recipients, and use the available(160)characters (Brackett, L. K. and Carr, B., N. 2001). 5.1.1. Entertainment A high degree of pleasure and involvement during interaction with computer-based media leads to concurrent subjective perceptions of positive affect and mood of the consumer (Hoffman, D. L. and Novak, T., P. 1989,). Peoples feeling of enjoyment associated with advertisements play the greatest role in accounting for their overall attitudes towards them (Shavitt, S., Lowrey, P. and Haefner, J. 1998). Entertainment denotes its full ability to fulfill consumers needs for escapism, diversion, aesthetic enjoyment or emotional release (McQuail, D. 2002). Entertainment is also a crucial factor for m-advertising. It is essential that the message is concise and funny, and thus immediately captures consumers attention. Entertainment services can increase customer loyalty and add value for the customer. As most people have a natural playfulness, providing games and prizes via text messaging (SMS) yields high participation. Delivering games and prizes to the target groups cellular phones is a successful way to attract and keep customers (Haghirian, P. and Dickinger, A. 2003,). Interactive games for example can also be played via text messages. These features can be used to involve customers more deeply and make them more familiar with the advertised service or product Ducoffe showed that entertainment of the advertising information is significantly related to advertising value of traditional advertising (Ducoffe, R. H.,1995,). Therefore we conclude that an entertaining advertising message is being perceived more positive by the recipient. H1: The higher the entertainment factor of mobile advertising messages, the higher the perceived advertising value of the consumer. 5.1.2. In formativeness The quality of the information placed on a companys web site has a direct influence on the customers perceptions of the company and the companys products. Accordingly, the information delivered to them via mobile devices also needs to show qualitative features like accuracy, timeliness, and usefulness for the consumer (Siau, K. and Shen, Z., 2003). Apart from this, the user needs quick access
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to the information (s)he is looking for his/her current content of use. There is even the possibility that the information may be delivered automatically to the consumer (Kaasinen, E., 2003). In any event, consumers want the content of mobile services to be tailored to their interests (Robins, F. 2003). On top of this, they are interested in getting messages that are relevant for them. Information is thus considered a very valuable incentive in m-advertising, because recipients react very positively to advertising transferring incentives (Varshney, U., 2003). Not surprisingly, in formativeness of the advertising information is therefore strongly related to the advertising value when it is transferred via traditional media vehicles.In an interactive context, the benefits that advertising provides to consumers may have an indirect influence on measures of advertising effectiveness. H2: The higher the in formativeness factor of mobile advertising messages, the higher the perceived advertising value of the consumer. 5.1.3. Irritation Indignity people feel when being addressed by advertisements has a very great influence on peoples attitude towards advertising (Shavitt,S., Lowrey, P.and Haefner,J.1998).When advertising employs techniques that annoy, offend, insult, or are overly manipulative, consumers are likely to perceive it as unwanted and irritating influence(Ducoffe, R.H.1996). Mobile advertising can provide an array of information that confuses and distracts the recipient as well as overwhelms the consumer with information (Stewart, D. W. and Pavlou, P. A.,2002). Consumers may feel confused about them and react negatively. We therefore conclude that irritation caused by an incomprehensible mobile advertising message may reflect negatively on the perceived advertising value of m-advertising. H3: The higher the irritation factor of mobile advertising messages, the lower the perceived advertising value of the consumer. 5.1.4. Credibility Advertising credibility turned out to be significantly relevant to advertising value of web advertising (Brackett, L. K. and Carr, B., N. 2001).Stewart and Pavlou refer to it as predictability and fulfillment of implicit and explicit requirements of an agreement (online document) (Stewart, D. W. and Pavlou, P. A.,2002). Credibility of an advertisement is influenced by different factors, especially by the companys credibility and the bearer of the message.But it is also influenced by the advertising medium. For example, Marshall and WoonBong (Ferrazzi, K., Chen, J. and Li, Z.,2003) found out that a message on the Internet achieves less credibility than a printed message unless the message is communicated by a strong brand. There is no empirical evidence on the overall credibility of messages transferred to mobile devices and their influencing factors. Considering the findings cited above we conclude that the credibility of a mobile advertising message has a positive influence on the perceived advertising value of the consumer. H4: The higher the perceived credibility factor of mobile advertising messages, the higher the perceived advertising value of the consumer. 5.2. Frequency of Exposure The number of advertising messages received via mobile devices is an important factor influencing the advertising value for the consumer (Haghirian, P. and Dickinger, A. 2003). Ducoffe states that in formativeness and entertainment of the advertising information should decline with repetition, because the information will be learned by the audience and thereby lessening its value (Ducoffe, R. H.,1996). As the quantity of promotional message rises, the attitude of the individual towards the promotional vehicle also worsens and leads to tedium from consumers point of view.In our model, the impact of in formativeness is already analyzed on behalf of H2; therefore we investigate the relationship between the frequency of exposure and the advertising value.
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H5: The higher the frequency of exposure factor to mobile advertising messages, the lower the advertising value of the consumer. 5.3. Mobile Consumer Characteristics Due to the high number of advertisements and alternative advertising media, consumers have the possibility to select advertising messages and to choose when and how to interact. This raises the importance of consumers individual goals and gives them a new role in the mobile advertising process. 5.3.1. Attitude towards Privacy Customer privacy has always been a critical issue in marketing, but has assumed a greater significance in recent years with the rise of Internet-based commercial transactions (Rust, R. T., Kannan, P. K. and Peng, N. 2002). Most consumers are still quite uncomfortable with the concept of mobile business and they are skeptical whether these businesses are feasible and secure (Siau, K. and Shen, Z. 2003). Originally meant to connect the world of business, the mobile phone has been increasingly applied by private households and therewith entered the domestic sphere. Accordingly, the mobile phone has changed its identity: it has lost its internal coherence and its connotations of being a mobile technology (Fortunati, L.,2001). Consumers regard their mobile phone a very private item. Mobile technologies are considered personal technologies, attached to a particular body or person (Green, N., Harper, R. H. R., Murtagh, G. and Cooper, G. 2001). Consequently, they are very sensitive towards receiving messages from unknown persons or organizations. Data control by unknown individuals can easily lead to annoyance among receivers (Whitaker, L.,2001). Privacy issues are therefore very important when using mobile devices in addressing the consumers. This calls for the application of the permission marketing approach.Before receiving advertising messages via a mobile device, consumers need to empower a marketer to send promotional messages in certain interest categories to them. Typically, this is done by asking the consumer to fill out a survey indicating his or her interests when registering for a service. After that, the marketer can match advertising messages with the interests of the consumer.These processes allow a new kind of interactivity, which often leads to marketers collecting, compiling, and using information about customers (Stewart, D. W. and Pavlou, P. A.,2002). Mobile advertising may therefore be considered the easiest way to tackle privacy. Privacy refers to the degree to which personal information is not known by others (Rust, R. T., Kannan, P. K. and Peng, N. 2002). Consumers can no longer depend on the intuitive sense of place and presence that governs their observable behavior to make sure that they are not being watched or recorded by another individual (Rust, R. T., Kannan, P. K. and Peng, N. 2002), which leads to feelings of insecurity. We therefore conclude that consumers, who esteem their subjective privacy very highly, will perceive the value of a mobile advertising message lower. H6: The higher the subjective privacy (personal information shared) is worth to the consumer, the lower the perceived advertising value of mobile advertising messages. 5.3.2. Age of Consumer The last variable investigated is the age of the consumer. Generally, young people are heavy users of mobile services(Dickinger, A., Haghirian, P., Murphy, J. and Scharl,A.,2004). For them mobile devices have become as much as a fashion accessory as they are a communication device (Robins, F. 2003). Younger consumers also show a more favorable attitude towards traditional advertising in a number of dimensions. They like looking at ads and they feel more comfortable when doing so (Shavitt, S., Lowrey, P. and Haefner, J. 1998). Not surprisingly, they also show a very positive attitude towards mobile ads, whereas older consumers are also positive about mobile ads, but more prudent (Kaasinen, E.,2003). Considering these facts we come to the conclusion that younger consumers value advertising message via mobile devices more than older consumers.
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H7: The higher the age of the consumer, the lower the perceived advertising value of the consumer.
6. Study Method
The study was conducted with a sample of (500) Jordanian mobile phone owners were interviewed on their perceived advertising value. For this purpose, a pre-tested, standardized questionnaire was applied. All measures were assessed via a 5-point-Likert-type scale ranging from strongly agree to strongly disagree. These scales were reverse-coded where appropriate. Scales and properties of purified measures will be made available upon request. The questions that cover the model are mainly basing on the studies by (Ducoffe, R. H. 1996, Krishnamurthy, S. 2000, MacKenzie, S. B).
Education Level High School Diploma degree Bachelor Degree Post Graduate Degrees Gender Men Women Age 15-25 Years 26-35 Years 36-45 years 46-55 Years 56 Years and above
Table 2:
Perceived Advertising Value Advertising Message Content H1: Entertainment H2: In formativeness H3: Irritation H4: Credibility Frequency of Exposure (H5) Consumer H6:Attitude toward Privacy H7:Age of Consumer *p<.05 **p<.01 ***p<.001
Table 2: Influencing Factors on Perceived Advertising Message Value of Mobile Advertising. Hypotheses 1 and 2 predict that entertainment as well as in formativeness is positively associated with advertising value when addressing consumers via mobile devices. Both hypotheses were supported by the data. The high correlation coefficients indicate that there is a strong relationship with advertising value. These results are confirmed by other studies (Ducoffe, R. H. 1996),who come to the same results investigating web advertising.
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Entertainment has turned out to increase advertising value in different empirical investigations. For example,(Ferrazzi, K., Chen, J. and Li, Z.,2003)found out that entertaining games in combination with sales messages can encourage dialogs with customers and project product images. Online advertising that is enriched with entertaining elements achieves a more positive evaluation by recipients and leads to higher intent to revisit the homepage than web sites without entertainment features (Raney, A. A., Arpan, L. M., Padhupati, K. and Brill, 2003). In formativeness of the advertising message turns out to be the second strong influential factor on consumers perceived advertising value. The advertising message is perceived as valuable as long as it provides information and thus creates some benefit for the consumer. Stewart and Pavlou (Stewart, D. W. and Pavlou, P. A.,2002) point at the importance of interactive media, like the Internet, as an information broker that allows the customer to acquire real-time account information that was previously not available .They further conclude that this may be perceived as an added value the consumer may even be willing to pay for in some cases. Hypothesis 3 predicts irritation to be negatively associated with perceived advertising value. Results indicate that irritation does negatively influence the value of mobile advertising. Still a low correlation coefficient indicated that the influence of irritation is not as strong as the influence of the variables entertainment and in formativeness. Irritation is a phenomenon that is similar to reactance, i.e. consumers tend to refuse advertisements if they have the feeling that the advertisement is too intrusive. In the context of web-based advertising reactance, consumers tend to avoid web sites that show interrupting advertisements like pop-ups. The perception of intrusiveness can, however, be decreased if the advertisements are relevant to the target group and if they provide value to the recipient (Edwards, S. M., Li, H. and Lee, J.-H.,2002). Thus, the perceived irritation can be influenced by an advertisements message. Hypothesis 4 indicates that a high credibility of the advertising message would be positively associated with advertising value. This hypothesis could also be confirmed. The correlation coefficient shows a strong relationship between the advertising value and perceived credibility. Credibility, which is based on the extent to which consumers believe that the marketer has the expertise and honesty to perform a transaction effectively and reliably, is the base of consumer trust(Ganesan, S.,1994).Building customer trust is a complex process that involves technology and business practices, but it is crucial for the growth and success of mobile commerce (Siau, K. and Shen, Z. 2003). Experience with a channel partner increases trust (Ganesan, S.,1994).Since communication with consumers via their mobile devices is a very young phenomenon, marketers are requested to build and breed trust. It is therefore advisable to build awareness via other media as well(Enpocket.com.,2002). The results indicate that success of mobile advertising activities strongly depends on message characteristics. The message characteristics need to be developed carefully. Marketers can not only rely on the fact that an advertising message sent via a mobile device will be read and remembered automatically. The mobile device may be an attention getter, but an attention getting device that is unrelated to the message will not attract consumers interested in the message or the product (Ogilvy, D. 2001). This creates new challenges for marketers in the future. Hypothesis 5 states that the frequency of exposure is negatively associated with perceived advertising value. This hypothesis was supported by the data. A high frequency of exposure seems to decrease the value of advertising. This result is also supported by scientific literature (Ducoffe, R. H.,1995), which assumes that consumers who are confronted with ads repeatedly are less informed since they have already learned the content. Hypothesis 6 suggests that customers who consider privacy as very valuable are less likely to attribute a high value to mobile advertising. This hypothesis was also supported. This result is not surprising since numerous studies have indicated similar results for other permission marketing tools, e.g. e-mails. According to(Ackerman, M., Darrel, T. and Weitzner, D. 2001), a trade-off between perceived privacy intrusion and user benefit is also possible. They assume that consumers will accept a certain degree of privacy loss if the benefit is perceived as being sufficient and satisfying. But still,
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privacy concerns can not be dismissed. Especially the sharing of user information will be a major issue of discussion in the near future (Varshney, U.,2003).Unauthorized resale of personal information, intrusion and theft of customer databases, and the unauthorized use of lost or stolen mobile devices present threats to the successful usage of mobile advertising (Rao, B. and Minakakis, L. 2002). Hypothesis 7 states that the age of the advertising recipient reflects on the perceived advertising value. Surprisingly, this hypothesis could not be supported. Age does not influence the advertising recipients perception of m-advertising significantly. These results are supported by Bracket and Carrs findings who showed in their study investigating advertising value of web ads that the age did not influence the perception either (Brackett, L. K. and Carr, B., N. 2001).
Table 3: Regression Analysis of Factors Influencing Advertising Message Value by Mobile Marketing
Dependent Variable of Advertising Message Value of M-Marketing T-Value Beta Entertainment t = 13.11 .477 Information t = 4.55 .165 Irritation t = -4.21 -.114 Credibility t = 7.51 .243 Frequency of Exposure t = -2.202 -.044 Attitudes Toward Privacy t = -.244 -.004 Age t = -.623 -.011 Adjusted R2 .552
Table 3: Influencing Factors on Advertising Message Value of M-Advertising: The regression analysis supports the results of the hypotheses tests. The result of this study concerns the overwhelming importance especially of entertainment and credibility of the message on the advertising value perceived by the consumer.
8. Study Conclusions
M-advertising activities provide many new opportunities and challenges for marketers. They allow addressing the consumers individually and enabling a direct and reciprocal communication with customers. However, in contrast to Internet-based advertising, the effects of advertising via mobile devices have not yet been sufficiently investigated. The paper at hand presents antecedents of advertising value integrating m-advertising into the marketing activities of a company. Specifically, the effectiveness of mobile advertising is investigated. Focuses of the study were influence factors on consumers perceived advertising value of madvertising. The results show that the advertising value of m-advertising is strongly related to the content and the frequency of the advertising message sent via mobile devices. Most surprisingly, the consumers attributes do not play such a dominant role regarding advertising value. The assumption that mobile advertising is more effective among younger consumers could neither be verified. Consumers today consider their mobile phone a very private item and are extremely sensitive about the messages they receive. This creates numerous challenges for marketers, which need to be investigated in greater detail. The integration and interaction into marketing activities using other media vehicles should be researched further as there can be cross-media interdependencies and image transfers. Additional experiments need to be designed to investigate the information process of the mobile ad recipients to develop normative recommendations in how to most effectively integrate mobile advertising into marketing activities.
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