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A STUDY ON THE PERCEPTIONS OF MOBILE TV AS A MARKETING TOOL IN SOUTH AFRICA By TINASHE CHUCHU 731094 A dissertation submitted in partial fulfilment of the requirements for the degree of the Bachelor of Commerce Honours (Marketing) in The School of Economic and Business Sciences, The University of the Witwatersrand. Supervisor: Mr Norman Chiliya DATE: 18 OCTOBER 2013

Transcript of A STUDY ON THE PERCEPTIONS OF MOBILE TV AS A …tinashechuchu.com › publications › Article...

  • A STUDY ON THE PERCEPTIONS OF MOBILE TV AS A MARKETING TOOL IN

    SOUTH AFRICA

    By TINASHE CHUCHU

    731094

    A dissertation submitted in partial fulfilment of the requirements for the degree of the

    Bachelor of Commerce Honours (Marketing) in The School of Economic and Business

    Sciences, The University of the Witwatersrand.

    Supervisor: Mr Norman Chiliya

    DATE: 18 OCTOBER 2013

  • i

    DECLARATION

    I, Tinashe Chuchu declare that:

    The work in this dissertation is my own original work.

    All of the sources which were used or referred to have been documented and

    recognised.

    This dissertation has not been previously submitted in full or partial fulfilment of the

    requirements for an equivalent or higher qualification at any other recognised

    education institution.

    TINASHE CHUCHU

    OCTOBER 2013

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    AKNOWLEGEMENTS

    Many people helped me throughout my research on how I could make it the best it could

    possibly be. However I cannot mention all of them by name but would like to thank them. I

    would wish to thank my family for supporting me and giving me the opportunity to undertake

    my post graduate studies, without my family I would not have been able to complete this

    dissertation. I would also wish to thank my friends who helped me throughout my study as

    well as all the participants who took part in my research. Most importantly special mention

    goes to my supervisor Mr Norman Chiliya, through his guidance, wisdom and expertise in the

    areas of marketing and research completing this thesis was made possible.

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    ABSTRACT

    Mobile TV is a service that provides television that can be viewed on mobile devices and is

    considered to be the next breakthrough application in wireless technology (Jung, Perez-Mira

    & Wiley-Patton, 2009). Recently mobile marketing has become an important method of

    communication with the recent advances in mobile phone technology (Smutkupt, Krairit &

    Khang, 2011:94). Mobile devices are undoubtedly effective communication tools as they

    allow businesses to reach their target markets anytime, anywhere and in real-time (Smutkupt,

    Krairit & Esichaikul, 2010). In the last few years developments in mobile technology and

    advances in mobile device features have made mobile television a new marketing tool for

    business activities (Bauer, Barnes, Reichardt, & Neumann 2005).

    Mobile TV gives birth to new aspects such as small screens as well as allowing users to enjoy

    the service in noisy environments (Buchinga, Kriglsteing & Hlavacs, 2009). Mobile TV has

    the advantage of providing consumers access to information that is both customized and

    interactive without barriers of time or location (Smutkupt, Krairit & Esichaikul, 2009).

    However, mobile TV is an innovation that is still in its infancy with respect to its levels of

    production and adoption; this becomes a challenge to predict its potential impact (Orgad,

    2006). This challenge can be made worse by issues customers have with mobile TV which

    include discomfort when operating handheld televisions because they have to be operated just

    15 cm away from the viewer’s eyes and is considered to be too close for enjoyment (Knoche,

    McCarthy & Sasse, 2005). As a solution to this problem this study investigates consumers’

    perceptions, attitudes and the extent to which consumers are willing to accept mobile TV and

    the potential impact of mobile TV as a marketing tool within a South African context

    utilising the Technology Acceptance Model as a basis for measuring user acceptance of

    mobile TV technology in South Africa. This is so because apprehension of the Technology

    acceptance model is important for any researcher who wants to study user acceptance of

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    technology (Chuttur, 2009). According (Chuttur, 2009) the Technology Acceptance Model is

    the model for measuring user acceptance of new technology that has received the most

    attention from the Information Systems community. This makes it relevant for this research

    as far as measuring the extent to which the people in South Africa have adopted mobile TV

    as a new technology. Using theory based on the assumptions of the technology acceptance

    model (TAM), this paper investigates on the perceptions that consumers have about mobile

    TV media content.

    This research involved distributing a questionnaire at The University of The Witwatersrand to

    a sample group of 380 students between the ages of 18 to 25. The decision to use only

    students of the University of The Witwatersrand was made as a result of time and monetary

    constraints. Demonstrations of mobile TV usage were provided in the introductory section of

    the questionnaire to help explain the concept of mobile TV. The data collected was analysed

    using Statistical Analysis Software (SAS) Enterprise Guide 5.1 in order to investigate any

    trends or patterns which may emerge. Simple random sampling was used select respondents.

    The key finding was that if marketing managers decide to use mobile TV devices and

    services as marketing tools they have to first of all take mobile TV screen size into

    consideration as results of the empirical study revealed that size of screens being too small

    was a major concern for mobile TV viewers and would make viewers less likely consider

    viewing mobile TV. This finding was supported by study by Knoche et al., (2005) who stated

    that viewers complained about the discomfort of viewing television content on mobile TV. A

    solution to this problem was suggested by Knoche et al, (2005), who proposed that increasing

    the number of pixels in images would possibly increase the perceived quality of mobile TV.

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    The contribution of this study was to find ways of increasing the penetration levels of mobile

    TV in South Africa as well as using prospects’ and consumers’ perceptions of mobile TV to

    find way of using mobile TV as a marketing tool for products and services in South Africa.

    Key words: Mobile TV, Marketing, Perceptions

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    CONTENTS

    CHAPTER 1 .............................................................................................................................. 1

    INTRODUCTION TO THE RESEARCH TOPIC ................................................................ 1

    1.1 PROBLEM STATEMENT .............................................................................................. 3

    1.2 LITERATURE OVERVIEW ........................................................................................... 3

    1.2 THE CONSUMER ADOPTION PROCESS ................................................................... 4

    1.3 OBJECTIVES OF THE RESEARCH ............................................................................. 6

    1.3.1 PRIMARY OBJECTIVE .............................................................................................. 6

    1.3.2 SECONDARY OBJECTIVES ...................................................................................... 6

    1.4 PROPOSED THEORETICAL MODEL AND HYPOTHESES ..................................... 6

    1.4.2 HYPOTHESES ............................................................................................................. 8

    1.5 RESEARCH DESIGN AND METHODOLOGY............................................................ 9

    1.5.1 RESEARCH DESIGN ............................................................................................... 9

    1.5.2 RESEARCH METHOD ............................................................................................ 9

    1.5.3 RESEARCH FORMAT ........................................................................................... 10

    1.5.4 SAMPLE SIZE DETERMINATION ...................................................................... 10

    1.5.5 DATA COLLECTION METHODS ........................................................................ 10

    1.5.7 POPULATION ........................................................................................................ 11

    1.5.8 SAMPLING PROCEDURES .................................................................................. 11

    1.6 SCOPE OF THE STUDY .............................................................................................. 11

    1.7 CONTRIBUTIONS OF THE STUDY .......................................................................... 11

    1.8 CONCLUSION AND SUMMARY ............................................................................... 12

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    CHAPTER 2 ............................................................................................................................ 13

    LITERATURE REVIEW OF CONSUMER PERCEPTIONS AND ATTITUDES ON

    MOBILE TV ........................................................................................................................ 13

    2.1 INTRODUCTION .......................................................................................................... 13

    2.4 MOBILE TV MARKETING ......................................................................................... 14

    2.2 MOBILE TV INDUSTRY OVERVIEW ....................................................................... 15

    2.2.1 OVERVIEW OF MOBILE TV LITERATURE IN SOUTH AFRICA .................. 16

    2.3 OPPORTUNITIES AND CHALLENGES THAT MOBILE TV FACES .................... 17

    2.3.1 OPPORTUNITIES FOR MOBILE TV IN SOUTH AFRICA ................................ 17

    2.3.2 CHALLENGES FOR MOBILE TV IN SOUTH AFRICA .................................... 18

    2.5 CONCLUSION AND SUMMARY ............................................................................... 20

    CHAPTER 3 ............................................................................................................................ 21

    RESEARCH MODEL AND COMPONENTS .................................................................... 21

    3.1 INTRODUCTION .......................................................................................................... 21

    3.1.1 MODEL ................................................................................................................... 21

    3.1.2 TECHNOLOGY ACCEPTANCE MODEL CONSTRUCTS DEFINED .............. 22

    3.2 MARKETING IMPLICATIONS ................................................................................... 25

    3.3 CONCLUSION AND SUMMARY ............................................................................... 25

    CHAPTER 4 ............................................................................................................................ 27

    RESEARCH DESIGN AND METHODOLOGY................................................................ 27

    4.1 INTRODUCTION .......................................................................................................... 27

    4.2 RESEARCH DESIGN ................................................................................................... 27

    4.2.1 DETERMINING SAMPLE SIZE ........................................................................... 28

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    4.3 DATA COLLECTION ................................................................................................... 28

    4.4 SAMPLE SELECTION ................................................................................................. 29

    4.5 PRIMARY DATA COLLECTION INSTRUMENT ..................................................... 29

    4.5.1 FORMAT OF THE QUESTIONNAIRE ................................................................ 29

    4.6 DATA PROCESSING AND ANALYSING ................................................................. 30

    4.7 DATA CLEANING AND CODING ............................................................................. 30

    4.7.1 DATA ANALYSIS AND STATISTICAL TECHNIQUES ................................... 31

    4.8 RELIABLITY AND VALIDITY................................................................................... 31

    4.8.1 RELIABILITY ........................................................................................................ 31

    4.8.2 VALIDITY .............................................................................................................. 32

    4.8.3 RELIABILITY TESTS ............................................................................................ 32

    4.8.4 ETHICAL COSIDERATIONS OF THE RESEARCH PROJECT ............................ 39

    4.9 CONCLUSION AND SUMMARY ............................................................................... 39

    CHAPTER 5 ............................................................................................................................ 41

    ANALYSIS AND INTERPRETATION OF RESULTS ..................................................... 41

    5.1 INTRODUCTION .......................................................................................................... 41

    5.1.1 DESCRIPTIVE STATISTICS .................................................................................... 41

    5.2 RELIABILITY ............................................................................................................... 43

    5.2.1 Cronbach’s Alpha for The Experience Construct for the Completed Study ........... 43

    5.2.2 Cronbach’s Alpha for The Perceptions Construct for the Completed Study .......... 44

    5.2.3 Cronbach’s Alpha for The Image Construct for the Completed Study ................... 45

    5.2.4 Cronbach’s Alpha for The Screen size Construct for the Completed Study ........... 45

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    5.2.5 Cronbach’s Alpha for The Functionality Construct for the Completed Study ........ 46

    5.2.6 Cronbach’s Alpha for The Convenience Construct for the Completed Study ........ 47

    5.2.7 Cronbach’s Alpha for The Output quality Construct for the Completed Study ...... 48

    5.2.8 Cronbach’s Alpha for The Acceptance Construct for the Completed Study .......... 49

    5.3 FACTOR ANALYSIS ................................................................................................... 50

    5.3.1 Factor analysis for the Experience construct ........................................................... 52

    5.3.2 Factor analysis for the Perceptions construct .......................................................... 52

    5.3.3 Factor analysis for the Image construct ................................................................... 53

    5.3.4 Factor analysis for the Screen size construct ........................................................... 54

    5.3.5 Factor analysis for the Functionality construct........................................................ 54

    5.3.6 Factor analysis for the Convenience construct ........................................................ 55

    5.3.7 Factor analysis for the Output quality construct ...................................................... 55

    5.3.8 Factor analysis for the Acceptance construct .......................................................... 55

    5.5 LINEAR REGRESSION ANALYSES FOR THE CONSTRUCTS OF THE

    MODIFIED TECHNOLOGY ACCEPTANCE MODEL ................................................... 60

    5.5.1 Linear regression for the Experience construct ....................................................... 60

    5.5.2 Linear regression for the Perceptions construct ...................................................... 61

    5.5.3 Linear regression for the Image construct ............................................................... 63

    5.5.4 Linear regression for the Screen size construct ....................................................... 64

    5.5.5 Linear regression for the Functionality construct .................................................... 66

    5.5.6 Linear regression for the Convenience construct .................................................... 67

    5.5.7 Linear regression for the Output quality construct .................................................. 69

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    5.6 CONCLUSION AND SUMMARY ............................................................................... 70

    CHAPTER 6 ............................................................................................................................ 71

    MAIN FINDINGS, RECOMMENDATIONS AND CONCLUSION ................................ 71

    INTRODUCTION ................................................................................................................ 71

    6.1 MAIN FINDINGS.......................................................................................................... 71

    6.2. RECOMMENDATIONS AND MARKETNG IMPLICATIONS ................................ 73

    6.3 LIMITATIONS OF THE RESEARCH ......................................................................... 75

    6.4 FUTURE RESEARCH .................................................................................................. 75

    6.5 CONCLUSION AND SUMMARY ............................................................................... 76

    LIST OF REFERENCES ......................................................................................................... 77

    APPENDIX A: ETHICS CLEARANCE FORM ................................................................... 86

    APPENDIX B: RESEARCH QUESTIONNAIRE ................................................................. 87

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    LIST OF FIGURES

    FIGURE 1.1 THE NEW PRODUCT DIFFUSION PROCESS ............................................... 4

    FIGURE 1.2 THE CONSUMER ADOPTION PROCESS ...................................................... 5

    FIGURE 1.3 A MODIFIED HYPOTHESIZED TECHNOLOGY ACCEPTANCE MODEL 7

    FIGURE 3.1.1 THE MODIFIED TECHNOLOGY ACCEPTANCE MODEL ..................... 22

    file:///E:/MOBILE%20TV%20COMPLETE/TINASHE%20AUTO%20FINAL%20v4.docx%23_Toc369719190

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    LIST OF TABLES

    TABLE 2.1 PAST DEFINITIONS OF MOBILE TV…………………………………........14

    TABLE 4.81 Cronbach’s Alpha for the Experience Construct- Pilot Study……..………….33

    TABLE 4.8.2 Cronbach’s Alpha for the Perceptions Construct- Pilot Study……………….34

    TABLE 4.8.3 Cronbach’s Alpha for the Image Construct- Pilot Study …………………….34

    TABLE 4.8.4 Cronbach’s Alpha for the Screen size Construct- Pilot Study ……………….35

    TABLE 4.8.5 Cronbach’s Alpha for the Functionality Construct- Pilot Study …………….36

    TABLE 4.8.6 Cronbach’s Alpha for the Convenience Construct- Pilot Study……..............37

    TABLE 4.8.7 Cronbach’s Alpha for the Output quality Construct- Pilot Study…………...38

    TABLE 4.8.8 Cronbach’s Alpha for the Acceptance Construct- Pilot Study………………38

    TABLE 5.1.2 Gender and Frequency Distribution of Respondents………………………..42

    TABLE 5.1.3 Age and Frequency Distribution of Respondents……………........................42

    TABLE 5.2.1 Cronbach’s Alpha for the Experience Construct- Completed Study…………43

    TABLE 5.2.2 Cronbach’s Alpha for the Perceptions Construct- Completed Study………..44

    TABLE 5.2.3 Cronbach’s Alpha for the Image Construct- Completed Study………………45

    TABLE 5.2.4 Cronbach’s Alpha the Screen size Construct- Completed Study……………46

    TABLE 5.2.5 Cronbach’s Alpha for the Functionality Construct- Completed Study……...47

    TABLE 5.2.6 Cronbach’s Alpha for the Convenience Construct- Completed Study………48

    TABLE 5.2.7 Cronbach’s Alpha for the Output quality Construct- Completed Study…….48

    TABLE 5.2.8 Cronbach’s Alpha for the Acceptance Construct- Completed Study………..49

    TABLE 5.2.9 Comparison of Cronbach's Alphas for the Pilot and Completed Study……..50

    TABLE 5.3.1 Factor Analysis for the Experience and Perceptions Construct…………….. 51

    TABLE 5.3.2 Factor Analysis for the Image, Screen size and the Functionality Construct...52

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    TABLE 5.3.3 Factor Analysis for the Convenience, Output quality and the Acceptance

    Construct……………………………………………………………………………………. 54

    TABLE 5.4.1 Factor Analysis for the Experience Construct……………………………….56

    TABLE 5.4.2 Factor Analysis for the Perceptions Construct ………………………………56

    TABLE 5.4.3 Factor Analysis for the Image Construct……………………………………. 57

    TABLE 5.4.4 Factor Analysis for the Screen size Construct ................................................ 58

    TABLE 5.4.5 Factor Analysis for the Functionality Construct..............................................58

    TABLE 5.4.6 Factor Analysis for the Convenience Construct…………………………….. 58

    TABLE 5.4.7 Factor Analysis for the Output quality Construct…………………………… 59

    TABLE 5.4.8 Factor Analysis for the Acceptance Construct……………………………… 59

    TABLE 5.5.1 Linear Regression Analysis Test for the Experience Construct……………...60

    TABLE 5.5.2 Linear Regression Analysis Test for the Perceptions Construct……..............62

    TABLE 5.5.3 Linear Regression Analysis Test for the Image Construct…………………...63

    TABLE 5.5.4 Linear Regression Analysis Test for the Screen size Construct……………...65

    TABLE 5.5.5 Linear Regression Analysis Test for the Functionality Construct…………....66

    TABLE 5.5.6 Linear Regression Analysis Test for the Convenience Construct…………....68

    TABLE 5.5.7 Linear Regression Analysis Test for the Output quality Construct………......69

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  • 1

    CHAPTER 1

    INTRODUCTION TO THE RESEARCH TOPIC

    Mobile television has evolved into a marketing vehicle due to recent technological advances

    in mobile devices (Varnali & Toker, 2009). In previous research mobile TV has been defined

    as television content that can be viewed on mobile devices through the use of wireless

    networks (Shim, Ahn & Shim, 2006). There are various standards for Mobile TV networks,

    including T-DMB (Terrestrial-Digital Multimedia Broadcasting), ISDB-T (Integrated

    Services Digital Broad-casting-Terrestrial) and DVB-H (Digital Video Broadcasting-

    Handheld) (Hsu & Hefeeda, 2009). This research paper explored the (DVB-H) which is the

    abbreviation for Digital Video Broadcasting-Handheld and (DMB) which stands for Digital

    Multimedia Broadcasting and has been used to a greater extent Europe and Asia (Cullen,

    2005). In North America and Europe mobile TV is viewed as a new innovation that could

    give rise to a new technology with an array of benefits accessed through mobile data

    networks over 3G Networks (Gordon, Gow & Smith, 2006) & (Yoonhyuk et al., 2009).

    According to (Cullen, 2005) mobile TV is a service that will be the next milestone for the

    wireless industry. Mobile TV service pertains to providing TV services to the mobile phone

    through wireless networks (Yoonhyuk et al., 2009). The mobile industry in Africa is on the

    rise, leading the way is South Africa which boasts a 6% stake of all of Africa’s mobile usage

    (BBC NEWS AFRICA, 2011). In North America there is MobiTV, which is a provider of

    mobile media content. It transmits live television content over cellular networks and has over

    3 million customers globally but it took over three years to have this number of customers

    (Bloomberg Business Week Technology, 2008). This showed that even though mobile TV is

    a new innovation with great potential it still has a long way to go for it to become main

    stream and in South Africa mobile TV needed more development (Naspers, 2013).

  • 2

    DStv Mobile, a division of Multichoice had been pioneering the way for mobile TV in South

    Africa and had introduced mobile TV for smartphones on the 23rd

    of November 2010 for a

    monthly subscription fee of R36. Another mobile TV device Multichoice introduced was the

    DStv Drifta, launched in 2011 it sales for R449 and has a subscription fee of R49 per month.

    The Drifta is a mobile TV device that receives a DVB-H signal which it then turns into a

    wireless fidelity (Wi-Fi) signal which then enables wireless devices such as laptops, tablets

    and smartphones to receive television signals.

    The Drifta needs to be within range of the DVB-H coverage area for it to work. The Drifta

    can also be connected through a Universal Serial Bus (USB) of a laptop or personal computer

    (DStv.com, 2013). In 2012 on the 7th

    of September the DStv Walka which is the company’s

    latest mobile TV device was released and sales for R499 (DStv.com, 2012. The future for

    mobile TV in South Africa seems to be bright when one looks at the penetration figures of

    television which is viewed by 76% of all South African households and 58% of all them

    already subscribe to pay TV and generate an estimated US$ 1.9 billion (Engineering News,

    2013). The research involved quantitative techniques. A comprehensive research

    questionnaire was developed and distributed to respondents to determine the impact that

    Mobile TV had made in South Africa. MultiChoice’s DStv Mobile has utilized both

    broadcast and streaming technology to provide mobile TV, that is Digital Video Broadcasting

    (DVB-H) and Third Generation (3G) streaming respectively (DStv MOBILE, 2010). Mobile

    TV brings about a number of advantages which include providing the user with portable

    television that is light in weight, battery operated together with the convenience of viewing

    television whilst outdoors, any type of indoor setting and allowing the user to use it whilst

    travelling on foot or by car (Kornfeld & May, 2007).

    This study explored on how the South African population has adopted hand held devices. The

    functionality, convenience and reception of these hand held television devices will also be

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    discussed, analysed and evaluated. The other intention of the research is also to investigate

    and establish the cause of complaints customers have regarding to mobile TV services and to

    find how service delivery can be improved.

    1.1 PROBLEM STATEMENT

    Knoche, McCarthy & Sasse (2005) conducted a study to find what complaints customers had

    about mobile TV. According to their findings users did not feel comfortable operating

    handheld televisions because they had to be operated just 15 cm away from the viewer’s eyes

    and respondents considered this to be too close for enjoyment. Knoche et al., (2005) also

    found that people had discomfort with the smallness of the screens fearing eye strain age,

    poor coordination between audio and sound which would possibly prevent them from

    indulging further in mobile TV. The desired viewing distance for maximum pleasure and

    comfort is considered to be 89 cm (Knoche et al, 2005). Often mobile users want the largest

    screens possible for viewing but still want their phones to remain small (Knoche et al, 2005).

    The purpose of this research was to explore the perceptions and attitudes towards low

    adoption levels of mobile TV in South Africa. This study intended to find ways of using

    mobile TV as a marketing tool for products and services in South Africa. Stump, Gong, & Li

    (2008) stated that even though mobile phone adoption was on the rise globally some parts of

    the world still had low adoption levels of mobile phones.

    1.2 LITERATURE OVERVIEW

    This section provides a brief overview of the literature. The literature was discussed in detail

    in chapter two. This research explored the effectiveness of mobile TV as a new technology

    for marketing products and services as well as mobile TV’s short falls as a new technology.

    The New Product Diffusion Model and The Consumer Adoption Model were explored

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    briefly. Diffusion refers to the series of actions that result in the target audience adopting a

    new idea or new product (Mahajan, Muller & Bass, 1990).

    The New product diffusion model shows that over time mobile TV adoption increases at a

    greater rate due to internal influences as compared to external influences.

    1.2 THE CONSUMER ADOPTION PROCESS

    The consumer adoption process refers to steps in which an individual would go through in

    accepting a new product or rejecting a new concept (Perreault & McCarthy, 2006).

    Adoptions due to

    internal

    influence

    Adoptions due to

    external

    influence

    Adopted from Muller & Bass (1990)

    Noncumulative

    adoptions n(t)

    pm

    Time

    FIGURE 1.1 THE NEW PRODUCT DIFFUSION PROCESS

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    FIGURE 1.2 THE CONSUMER ADOPTION PROCESS

    Innovators

    (3-5%)

    Early

    adopters

    (10-15%)

    Early majority

    (34%)

    Late majority

    (34%)

    Laggards or

    non-adopters

    (5-6%)

    Percentage

    adoption

    90

    50

    20

    0

    Adopted from Perreault & McCarthy (2006)

    The stages of the consumer adoption process illustrated in figure 2 were briefly discussed.

    Innovators adopt mobile TV before all the other groups of viewers.

    Early adopters consist of about ten to fifteen per cent of the entire population sample

    and are considered to be opinion leaders.

    Early majority consist of 34% of entire population and this group avoids taking the

    risk of trying a mobile TV and wait to consider this new concept after a sizeable

    number of early adopters have tried and liked it.

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    The late majority consists of 34% of the entire population as well and these take

    serious precaution with new ideas

    Laggards also known as non-adopters, this group of viewers opt to repeat past

    activities and are suspicious of new concepts like mobile TV. They rely almost

    entirely on other laggards and these are usually older and less well educated. This

    group consists of five to sixteen per cent of the entire population (Perreault &

    McCarthy, 2006).

    1.3 OBJECTIVES OF THE RESEARCH

    In this section the primary and secondary research objectives were illustrated. The section

    that followed describes in detail a hypothesized research model and hypotheses of the

    research paper.

    1.3.1 PRIMARY OBJECTIVE

    The primary objective of the study was to find solutions that could possibly increase the

    number of mobile TV subscribers in South Africa so as to increase mobile TV usefulness as a

    marketing tool for products and services.

    1.3.2 SECONDARY OBJECTIVES

    The secondary of objectives of the study were to:

    Conduct a literature review so as to illustrate and explain the concept of mobile TV.

    Develop a questionnaire that captures the true perceptions and attitudes that South

    Africans have towards mobile TV.

    1.4 PROPOSED THEORETICAL MODEL AND HYPOTHESES

    In-order to determine the perceptions that consumers in South Africa had towards mobile TV

    being used as a marketing tool by marketers a modified Technology Acceptance Model was

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    used as a basis for this study. This model contains the following independent variables;

    experience, user’s perceptions on mobile TV, image, screen size, functionality, convenience,

    and output quality. The dependent variable was the acceptance of mobile TV. The hypotheses

    were dependent on consumer’s acceptance of mobile TV. For purposes of the study the

    researcher had used a modified hypothesized Technology Acceptance model that had been

    adopted from Venkatesh & Davis (2000).

    FIGURE 1.3 A MODIFIED HYPOTHESIZED TECHNOLOGY ACCEPTANCE

    MODEL

    H5

    EXPERIENCE

    User’s perceptions on

    mobile TV

    Image

    Screen size

    Functionality

    Convenience

    Output quality

    Perceived

    usefulness of

    mobile TV

    H2

    H3

    H4

    H1

    Intention

    to use

    mobile

    TV

    Acceptance

    of mobile

    TV

    Perceived ease of use

    H6

    H7

    Adopted from Venkatesh & Davis (2000)

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    1.4.2 HYPOTHESES

    Hypothesis 1: Mobile TV experience is positively related to adoption.

    This hypothesis was based on the proposed relationship between the perceived experience

    obtainable from using mobile TV and the level of adoption of mobile TV.

    Hypothesis 2: The user’s perception of mobile TV has a positive relationship with the mobile

    TV acceptance.

    This hypothesis was based on the proposed relationship that existed between the perceptions

    that viewers had towards mobile TV and their acceptance of mobile TV.

    Hypothesis 3: The image associated with owning or using mobile TV is positively related to

    mobile TV acceptance.

    This hypothesis was based on the proposed relationship between the perceived image

    associated with mobile TV and the extent of adoption.

    Hypothesis 4: The size of the screen has a positive relationship with the adoption of mobile

    TV

    This hypothesis was based on the proposed relationship that screen size had with acceptance

    of mobile TV.

    Hypothesis 5: Mobile TV functionality is positively related to the acceptance of mobile TV.

    This hypothesis was based on the proposed relationship between mobile TV functions and the

    acceptance of mobile TV.

    Hypothesis 6: Mobile TV convenience is positively related to acceptance.

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    This hypothesis was based on the proposed relationship that existed between the perceived

    convenience of mobile TV and the acceptance of mobile TV.

    Hypothesis 7: Output quality is positively related to adoption.

    This hypothesis was based on the proposed relationship between mobile TV output quality

    and the acceptance of mobile TV.

    1.5 RESEARCH DESIGN AND METHODOLOGY

    The following section outlines the research design and the methodology used for this study.

    1.5.1 RESEARCH DESIGN

    Research design refers to a plan for carrying out a marketing research project. It maps out

    procedures for gathering information that are used to answer questions and solve problems

    (Malhotra & Birks, 2007). The research design establishes the foundation for the entire

    research project (Malhotra & Birks, 2007). The design of the study was quantitative, non-

    experimental and correlation design. Five point likert -scales were used to collect data from

    respondents regarding their preferences and attitudes towards mobile TV. To collect data

    from respondents for this study a self-administered research questionnaire was distributed to

    participants.

    1.5.2 RESEARCH METHOD

    The method that was used to collect data was crucial in to identifying any possible bias in the

    research. Important factors in identifying possible error and the extent to which data was

    relevant included size and the kind of sample used, process involved in conducting field

    work, analysis of data and reporting procedures (Malhotra & Peterson, 2006). To collect data

    from participants a comprehensive questionnaire was developed whereby random students

    from the University of the Witwatersrand were selected to answer questions on mobile TV

    products and services. Quantitative research was applied to this study.

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    1.5.3 RESEARCH FORMAT

    Descriptive research which is also known as statistical research was used in this study where

    by a human element was involved and the main aim was to describe the data and

    characteristics of the research problem.

    1.5.4 SAMPLE SIZE DETERMINATION

    According to (Length, 2001) sample size determination is crucial in planning a statistical

    study as well as challenging. The sample size was determined using the Raosoft sample size

    calculator. Raosoft is statistical software that is used to calculate sample size. Raosoft takes

    into the following factors; account the margin of error, the confidence level, the population

    size and the response distribution. The researcher choose the default settings on Raosoft

    which had a margin of error at 5%, confidence level at 95% sample size at 30 000 and a

    response distribution of 50%. The calculated sample size needed for the survey would be 380

    respondents. However for purposes of this study a sample of 380 respondents was collected

    for purposes of this research.

    1.5.5 DATA COLLECTION METHODS

    Primary data refers to data that is collected for a specific use, observed and collected from

    first-hand experience (Malhotra, 1991). Secondary data on the other hand is data that was

    collected in the past, already in existence, and has already been published (Malhotra, 1991).

    The survey questionnaire was distributed to the students of The University of the

    Witwatersrand. A pilot questionnaire was developed to investigate the attitudes and

    perceptions that respondents had about mobile TV. The pilot questionnaire was distributed to

    30 students who attend The University of the Witwatersrand. The other intention of the pilot

    questionnaire was to find what questions potential participants would like to see in the final

    questionnaire that was used to collect data?

  • 11

    1.5.7 POPULATION

    The University of the Witwatersrand has a population of approximately 30 000 students and

    it is not possible to collect data from all of them and hence a sample was chosen.

    1.5.8 SAMPLING PROCEDURES

    The sample type used in this research was probability sampling because it enabled choosing

    units from the population that the researcher was be interested in research on. Random

    sampling was the technique that was used to select the respondents used for the study because

    in this case each unit had an equal chance of being chosen. The sample size consisted of 380

    participants which were of randomly selected students from The University of The

    Witwatersrand. Data analysis involves the evaluation of data using analytical and logical

    reasoning to investigate each individual unit from the given data and is it useful in this study

    to obtain accurate results of the study The Statistics Department at The University of The

    Witwatersrand is going to analyse the data. Statistical Analysis Software Enterprise Guide 5.1

    was used to analyse the data.

    1.6 SCOPE OF THE STUDY

    There are certain limitations that will affect the outcome of this research. Firstly financial and

    time constraints limited the amount of information can be gathered for the research.

    1.7 CONTRIBUTIONS OF THE STUDY

    This study contributes to the field of mobile TV within a South African context seeking

    solutions on how the mobile TV services can be made more available to more in people

    South Africa so as to use it as a marketing tool for products and services targeting the South

    African market in a way that is also profitable for the mobile TV service providers. The other

    significant contribution that this study makes is in identifying factors that hinder the success

    of mobile TV in South Africa and also explores for ways of increasing mobile TV its

  • 12

    penetration levels in the country. This study recommends on ways of improving service

    delivery of mobile TV in South Africa and how it can be seen as a credible alternative for

    traditional television.

    1.8 CONCLUSION AND SUMMARY

    Chapter one provided a brief introduction to the study on mobile TV and also touched on the

    chapters to follow. The research problem was defined in this chapter as well as the objectives

    of the research clearly stated. The literature review was briefly mentioned and finally a brief

    discussion of the research methodology was also done. Chapter two explored the literature

    that covered mobile TV within a South African context and issues such as benefits and short

    falls of mobile TV use were discussed.

  • 13

    CHAPTER 2

    LITERATURE REVIEW OF CONSUMER PERCEPTIONS AND ATTITUDES ON

    MOBILE TV

    2.1 INTRODUCTION

    Baker (2000) considers reviewing current literature relevant to a research topic to be an

    essential first step and foundation for undertaking the research project. The main aim of the

    literature review was to discuss key issues that relate to how mobile TV can be used as an

    advertising agent and investigate consumers’ perceptions and attitudes towards mobile TV.

    This chapter provides a detailed analysis of all the relevant empirical studies that have dealt

    with perceptions and attitudes directed at mobile TV. The chapter also discusses the issues

    pertaining to the use of mobile TV, its properties and its marketing implications; this referred

    to how mobile TV could be integrated into marketing activities. A review of the mobile TV

    industry was conducted in this chapter. Later in this chapter key theories guiding this research

    were discussed in detail.

    It is of great importance to take into account past research on mobile TV because it enhances

    both the researcher’s and readers’ understanding of the key concepts of a study Gabbot

    (2004: 413) provides five motivations for analysing past research. The first motivation is to

    find out material that was left out in existing public record. The second motivation for

    research is to avoid conducting a research that has been done before. The third motivation for

    analysing past research is to broaden the researcher’s knowledge and enhance the researchers

    understanding of area of interest to the researcher. The fourth reason for analysing past

    research is to point out the work that influenced later developments of the innovation and

    finally to aid the researcher’s evaluation and clarification of findings of the study. This

    chapter compared and contrasted conflicting views surrounding the effectives of using mobile

  • 14

    TV as a marketing tool for products and services. An array of opportunities have been created

    for interactive TV due to the addition of mobile and broadband networks to the satellite and

    terrestrial TV platforms that already exist (Chorianopoulos, 2008). The extensive adoption of

    Multimedia services which refers to the combination of various media or interactive media

    has allowed television content to be processed through mobile devices such as smartphones,

    personal computers and portable television devices such as the DStv Walker

    (Chorianopoulos, 2008). Orgad (2006) considered the following questions to be important

    when analysing the importance of mobile TV industries’ future. How would mobile TV

    provide viewers’ with a different experience as compared to traditional television? Who is

    going to use it? Why would the consumers of mobile TV use the product or service? Where

    and when would consumers use mobile TV? Most importantly how would mobile TV

    revolutionize advertising and what are the opportunities for it?

    TABLE 2.2 PAST DEFINITIONS OF MOBILE TV

    Author Definition

    (Jung, Perez-Mira & Wiley –Patton 2009) Mobile TV is a service which is provided

    through mobile devices that shows

    television-like content.

    (Schatz, Wagner, Egger & Jordan, 2007) Mobile broadcast TV is a combination of

    TVs and mobile phones.

    (Shim, Ahn & Shim, 2006) Mobile TV can be defined as television

    content that can be viewed on mobile devices

    through the use of wireless networks

    2.4 MOBILE TV MARKETING

    To establish how mobile TV can be used as a marketing tool it is important to firstly look at

    the current state of mobile marketing. Bernhart (2009: 69) stated that mobile marketing is an

    unseasoned form of marketing and it is imperative for firms to hire the most competent

    employees but the main challenge for them is that there is a shortage of talent. It is of essence

    for marketers, service providers and consumers to have an understanding of mobile TV phone

  • 15

    usage patterns especially at a time when traditional television is on the decline as a channel

    for advertising (OFCOM, 2006). An important implication of mobile marketing is that mobile

    marketing campaigns should at least have a response of 8% from the total targeted people for

    them to be successful (World Advertising Research Center, 2006). The concept of mobile

    advertising is a relatively new means of communication for marketers to reach their target

    market and that mobile devices are viewed as personal devices and this would allow for them

    to reach their target market without encountering any time or location barriers (Vantaparast

    & Asil, 2007: 21) and (Smutkupt et al, 2010: 134).

    2.2 MOBILE TV INDUSTRY OVERVIEW

    Mobile operators, broadcasters and cable TV operators have been battling for a share of the

    mobile TV market. Due to differences in transmission, mobile TV can be distinguished as

    cellular mobile TV and mobile broadcast TV (Kumar, 2010). This study explored the mobile

    TV industry in China and Europe as to how it has been adopted in those parts of the world.

    Most importantly this study will focus on the mobile TV industry in South Africa. In China

    mobile TV is separated into three categories that comprise of a broadcasting model that uses

    broadcasting networks to transmit live mobile TV or on-demand mobile TV content such as

    China Mobile Multimedia Broadcasting (CMMB). The Chinese government sponsors the

    China Mobile Multimedia Broadcasting (Shim, Park & Shim, 2008). The second category

    comprises of a telecommunications model that uses cellular phone networks to enable video

    streaming or downloading video/ audio material 3 G TV and the third category comprises of

    an internet model that uses mobile internet networks to allow viewing of on-line videos such

    as Tudou (Jiang, 2011). Tudou is a Chinese on-line video sharing website that competes with

    the famous YouTube website (Tudou.com, 2013).

  • 16

    The mobile TV industry in Europe also has its own fair share of challenges. Mobile TV

    uncertainties in Europe are due to doubts on whether mobile TV has a feasible and viable

    business model, (Shim et al, 2008). The European commission’s endorsement of the DVB-H

    standard forced the abolishment of the launch of the DAB-IP (Digital Audio Broadcasting

    Internet Protocol) standard by British Telecom which was to be launched in September 2006

    (Shim et al, 2008). The mobile TV market is greatly fragmented due to various standards

    which include DVB-H and DAB-IP and the Chinese CCMB hence this has led to low mobile

    phone sales in Europe due to compatibility issues (Shim et al, 2008).

    2.2.1 OVERVIEW OF MOBILE TV LITERATURE IN SOUTH AFRICA

    Price Waterhouse Coopers, a multinational professional services firm stated in its South

    African Entertainment and Media Outlook for 2011 to 2015 there is potential for a new

    advertising revenue stream with the launch of mobile TV in South Africa and is projected at

    22 million Rand by 2015 (Screen Africa, 2010). PricewaterhouseCoopers also projected the

    combined effort of both online and mobile television advertising to reach and total of 54

    million rand in the year 2015 (Screen Africa, 2010). During 2009 and 2010, 92% of total

    television growth was generated from subscription television spending which overtook

    advertising to become television industry’s main player and mobile television will also

    generate additional revenue of 102 million Rand in the future for the South African

    subscription television market (Screen Africa, 2010). Total television spending in South

    Africa is projected to grow at an annual compound rate of 10.3% and this is from R23.1

    billion in 2011 to R37.6 billion in 2016 (PricewaterhouseCoopers, 2010).

    DStv Mobile is available in Ghana, Kenya, Namibia, Nigeria and South Africa, with Nigeria

    having the most positive response to mobile TV. MultiChoice invested about 300 million

    Rand in research and development infrastructure and the marketing of its mobile TV products

    and services (DStv mobile.com, 2009). MultiChoice’s DVB-H (Digital Video Broadcasting

  • 17

    Hand held) available for free, was commercially launched in South Africa in November

    2010, with two bouquets, in particular DStv Mobile, which has seven channels, and e Mobile,

    having two channels (DStv mobile.com, 2009). Christer & Pirkko (2007) describe the 2006

    FIFA World Cup as a key launching pad for mobile TV.

    2.3 OPPORTUNITIES AND CHALLENGES THAT MOBILE TV FACES

    The section below discussed the opportunities and challenges that mobile TV faces in South

    Africa.

    2.3.1 OPPORTUNITIES FOR MOBILE TV IN SOUTH AFRICA

    Mobile TV brings new aspects such as small screens and allowing users to enjoy it in noisy

    environments (Buchinga, Kriglsteing & Hlavacs, 2009). According to

    PricewaterhouseCoopers the increased penetration of smartphones and tablets in South Africa

    has the potential to fuel growth in the mobile subscription market (PricewaterhouseCoopers,

    2010). Opportunities that will arise from mobile TV include “television on the go” as

    compared to actual going to the information as what is done with traditional television, radio

    and the internet the information comes to them on personalised mobile devices (Orgad,

    2006). Further opportunities that arise from mobile TV come from multimedia functionality

    which offers increased interactivity and more personalized viewing experience than that

    provided by traditional television due to multimedia features such as radio, music player,

    camera and video all on a cellular phone (Orgad, 2006). Future opportunities for mobile TV

    in south Africa could be brought about by the hosting of major sporting events for example as

    was seen with the 2010 FIFA World Cup which allowed for more than ten mobile TV

    broadcasting networks to be opened in Africa, according to Nokia Siemens ( Broadcast

    Engineering, 2009). The FIFA World Cup was singled out and predicted to be the most

    important driver for the adoption of mobile DTV (Digital Television) services in South

    Africa. (Broadcast Engineering, 2009).

  • 18

    The 2010 FIFA World Cup brought about more opportunities for mobile TV in South Africa

    when 35 mobile TV licensees were issued covering more than 80 territories (Fifa.com, 2010).

    According to the 2010 FIFA World Cup South Africa TV Audience Report there were a total

    of 35 mobile TV licensees for the 2010 FIFA World Cup South Africa covering more than 80

    territories. Licensees had access to the Mobile Match Feed for all 64 matches of the 2010

    FIFA World Cup South Africa, which included an extra dedicated camera and specific

    graphics for small-screen viewing (FIFA.com, 2010). In the United States of America ESPN

    Mobile TV and Univision, two major television broadcasters achieved 1.5 million viewers,

    Germany’s Telekom Deutschland provided 1.6 million mobile TV viewers access to the 2010

    FIFA World Cup and Australia’s Optus had an audience of 400 000 watching the 2010 FIFA

    World Cup on their mobile TV devices, this was according to the 2010 FIFA World Cup

    South Africa TV Audience Report (FIFA.com, 2010). Over 15 000 mobile content video

    clips were made available to mobile TV audiences in in 11 language for the 2010 FIFA

    World Cup in South Africa (FIFA.com, 2010). Opportunities may arise for content

    distributers in the case of reducing resolution of TV images without affecting the observed

    quality of visuals and this would mean less bandwidth would be required and more mobile

    TV content could distributed much cheaper (Knoche & McCarthy, 2004).

    2.3.2 CHALLENGES FOR MOBILE TV IN SOUTH AFRICA

    Even though there was an opportunity for growth of mobile TV in South Africa there were

    challenges that remained to be seen on whether mobile television would result in significant

    revenues in the television sector (Price Waterhouse Coopers, 2010). According to Orgad

    (2006) Mobile TV was an innovation that was still primitive with respect to its levels of

    production and adoption, this posed a potential challenge in predicting its potential impact.

  • 19

    Mobile TV development had been determined by numerous factors in technology, commerce,

    society and politics, regulation as well as other various factors (Orgad, 2006). A major

    challenge to marketers was how to explain to the target market the benefit that would be

    derived from such a technology. Technology is a term that is widely referred to and not fully

    understood by all who use it (Trott, 2012). This meant that marketers should be clear in

    explaining the benefits of a new product or technology such as mobile TV to their target

    market. Marketers face various challenges when introducing a new product or technology.

    Marketers had to be able to persuade potential customers to adopt a new unique product or

    service, have knowledge of the market, introduce a market-derived idea, having an effective

    product launch and marketing communications in-order to succeed (Perreault & McCarthy,

    2006). Other challenges that marketers might face when introducing a new and unique

    product or service such as mobile TV include being able to increase need for that product,

    avoiding entering a competitive market that already has customers that are satisfied and

    raising a sizeable amount of investment (Perreault & McCarthy, 2006).

    The mobile TV standard that uses the internet model faces the following challenges: limited

    screen size, keyboard functionality, and lack of pointing devices, low memory, limited

    battery life and slow connections (Kaasinen, 2005). The fact that mobile TV comes with

    small screens and low resolution has made mobile TV producers rethink about using shots

    that show people or objects from a great distance and this limits the usefulness of mobile TV

    (Knoche, Sasse, McCarthy, 2005). Goldstruck (2013) stated that in relation to DStv mobile,

    streaming mobile TV would be very expensive and difficult to implement and mobile TV can

    only become profitable in the long-term as the cost of handsets is still a major issue of

    concern in South Africa Currently mobile TV faces uncertainty on whether its services can be

    mass marketed and concerns over its business model viability (Shim, Park & Shim, 2008).

    Barriers to mobile TV success also include resistance from consumers, belief that it is

  • 20

    expensive, concerns of limitations in wireless connectivity, doubt over real benefits

    obtainable as well as programming options available and distribution channels (Shim et all,

    2008). Another major barrier for mobile TV is to create, transfer and offer consumers content

    that fully amplifies their viewing experience. (Buchinger et al., 2009).

    2.5 CONCLUSION AND SUMMARY

    Röcker (2009) stated the key objective of the technology acceptance model is to critically

    examine the variables that influence the acceptance and diffusion of new technology. The

    literature review echoed similar sentiments to those of the technology acceptance model in

    that all the favourable attitudes towards all the constructs in the modified technology

    acceptance model lead to higher acceptance levels of mobile TV. The literature review also

    showed that mobile TV had potential for growth even though the market for mobile devices

    and services was still small. Naspers (2013) stated that mobile TV in South Africa is still in

    its infancy. This chapter also revealed that 2010 FIFA World Cup was a major player in

    helping establish mobile TV in South Africa as evident by the viewing figures that were

    released on FIFA.com. However on the other hand mobile TV in South African also faces

    uncertainty on the viability of its business model as well the marketability of its services

    (Shim, Park & Shim, 2008). Chapter three explored the research model and the model’s

    components as well as exploring the hypothesis of this research.

  • 21

    CHAPTER 3

    RESEARCH MODEL AND COMPONENTS

    3.1 INTRODUCTION

    This chapter discusses the model used for this study. This chapter also explored the

    hypotheses individually, the components of the model from which these hypotheses originate

    from, and the indicators attached to each of these components. The chapter then concludes by

    discussing the marketing implications of and also the limitations of this model. A Modified

    Technology Acceptance Model was used to help explain consumer perceptions and attitudes

    towards the use of mobile TV as a plausible substitute for the standard traditional TV.

    3.1.1 MODEL

    In this thesis a modified version of the Technology Acceptance Model was used as a basis for

    research. The modified Technology Acceptance Model is illustrated in figure 3.1. This

    modified model was to investigated the effectiveness of using mobile TV as a marketing tool

  • 22

    FIGURE 3.1.1 THE MODIFIED TECHNOLOGY ACCEPTANCE MODEL

    H5

    EXPERIENCE

    User’s perceptions on

    mobile TV

    Image

    Screen size

    Functionality

    Convenience

    Output quality

    Perceived

    usefulness of

    mobile TV

    H2

    H3

    H4

    H1

    Intention

    to use

    mobile

    TV

    Acceptance

    of mobile

    TV

    Perceived ease of use

    H6

    H7

    Adopted from Venkatesh & Davis (2000)

    This model is modified from the original model developed by Venkatesh & Davis (2000)

    3.1.2 TECHNOLOGY ACCEPTANCE MODEL CONSTRUCTS DEFINED

    Experience refers to what attitudes viewers have after using mobile TV or how

    potential viewers perceive how they would feel after using mobile TV devices or

    services.

  • 23

    User’s perceptions of mobile TV. This construct explains how a consumer would

    perceive the degree of ease associated with the use of the innovation (Venkatesh &

    Davis, 2000).

    Image refers to how the innovation in question was perceived to enhance one’s social

    standing in a community (Venkatesh & Davis, 2000).

    Screen size refers to how big mobile TV monitors are as and how the monitors affect

    viewers perceptions of mobile TV.

    Functionality refers to how the mobile TV devices perform in terms of how they

    operate.

    Perceived usefulness explains the extent to which the consumer perceives a system or

    innovation to be helpful (Venkatesh & Davis, 2000).

    Convenience refers to the perceived ease of use that is associated with mobile TV.

    Output quality is defined as the extent to which a consumer believes that the

    innovation performs well (Venkatesh & Davis, 2000).

    Intention to use refers to the degree to which a consumer has formulated conscious

    plans to use the technology or not (Venkatesh & Davis, 2000).

    A modified Technology Acceptance Model was used to explain and predict user acceptance

    of new technology (Venkatesh & Davis, 2000). There were seven hypotheses that were

    developed from the modified technology acceptance model in order to investigate the

    relationship between acceptance (dependent variable) and each independent variable. The

    independent variables were: experience, user’s perceptions, image, screen size, functionality,

    convenience and output quality. To achieve the objectives of this study the following

    hypothesis will be tested:

  • 24

    Hypothesis 1: The perceived experience obtained from mobile TV is positively related to

    acceptance.

    This hypothesis is based on the proposed relationship between the perceived experience

    obtainable from using mobile TV and the level of acceptance of mobile TV.

    Hypothesis 2: User’s perceptions of mobile TV are positively related to mobile TV

    acceptance.

    This hypothesis is based on the proposed relationship between the user’s perceptions of

    mobile TV and the acceptance of mobile TV.

    Hypothesis 3: The image associated with owning or using mobile TV has a positive

    relationship with mobile TV acceptance

    This hypothesis is based on the proposed relationship between the perceived image associated

    with mobile TV and the extent of adoption.

    Hypothesis 4: The size of the Mobile TV screens has a positive relationship with the

    acceptance of mobile TV

    This hypothesis is based on the proposed relationship that screen size has with the acceptance

    of mobile TV.

    Hypothesis 5: Mobile TV functionality has a positive relationship with the acceptance of

    mobile TV

    This hypothesis is based on the proposed relationship that mobile TV functionality has with

    the acceptance of mobile TV.

    Hypothesis 6: Mobile TV convenience is positively related to acceptance of mobile TV.

  • 25

    This hypothesis is based on the proposed relationship, illustrated by the modified technology

    acceptance model which shows that the perceived convenience associated with the use of

    mobile TV leads to acceptance of mobile TV.

    Hypothesis 7: Mobile TV output quality is positively related to acceptance.

    This hypothesis is based on the proposed relationship illustrated by the technology

    acceptance model which shows that the output quality observed from using mobile leads to

    acceptance of mobile TV.

    3.2 MARKETING IMPLICATIONS

    Chuttur (2009) pointed out is it is important for any marketer willing to understand user

    acceptance of technology to have an understanding of the technology acceptance model. The

    marketing implications for mobile TV are that marketers have to identify and satisfy the

    viewing needs of their customers and this implies that they should have a comprehensive

    understanding of technology acceptance model in order to observe how new technology such

    as mobile TV is adopted by their customers. Lack of user acceptance has been a hindrance to

    the success of new information technology (Davis, 1999). This therefore implies that for the

    success of new technologies such as mobile TV user acceptance has to be increased.

    3.3 CONCLUSION AND SUMMARY

    Over the past twenty years user’s acceptance of new technology has been an important are of

    research therefore it becomes the onus of any researcher seeking to understand user

    acceptance of new technology to understand the technology acceptance model (Chuttur,

    2009). In conclusion the Technology Acceptance model was the most suited model to be used

    in explaining and predicting the use of a system because it has received more credibility in

  • 26

    the field of adoption of new technology than any other model (Chuttur, 2009). The following

    chapter, chapter four discussed the research design and methodology. Chapter four discussed

    the research design and methodology that was followed in conducting this study.

  • 27

    CHAPTER 4

    RESEARCH DESIGN AND METHODOLOGY

    4.1 INTRODUCTION

    In the previous chapter, chapter three the Technology Acceptance Model (TAM) was

    discussed and each component explained. This chapter discusses the method and approach

    used to reach the findings of the research. In this chapter the research design, sampling and

    data collection process was be explored in detail. Research is a thoughtful and structured

    search for new information that can be applied to a particular field (Rajasekar, Philominathan

    & Chinnathambi, 2006). (Rajasekar, 2006) stated that research involved processes of

    searching for solutions to scientific problems using objectivity and structured analysis and the

    main objectives include the development of scientific tools, concepts as well as analysing and

    event, process or phenomenon A research is aimed at informing concerned parties and

    therefore it is important to have findings that cover a wide body of research

    (uniteforsight.org, 2013)

    4.2 RESEARCH DESIGN

    Research design refers to a plan for conducting a marketing research project. It maps out the

    procedures of gathering information that will be used to answer questions and solve problems

    (Malhotra & Birks, 2007). The research design establishes the foundation for the entire

    project (Malhotra & Birks, 2007). The design of the study was a quantitative design. A

    comprehensive questionnaire was developed and was administered to the students of the

    University of the Witwatersrand on campus. The sample size was determined by Raosoft

    sample size calculator. Raosoft is a statistical calculator used to determine sample sizes used

    for research.

  • 28

    4.2.1 DETERMINING SAMPLE SIZE

    Sample size determination is crucial in planning a statistical study and challenging as well

    (Length, 2001). The sample size was determined using the Raosoft sample size calculator.

    Raosoft is statistical software that is used to calculate sample size. Raosoft takes into the

    following factors; account the margin of error, the confidence level, the population size and

    the response distribution. The researcher choose the default settings on Raosoft which had a

    margin of error at 5%, confidence level at 95% population size at 30 000 and a response

    distribution of 50%. Raosoft then calculated that the sample size needed for the survey would

    be 380 respondents.

    4.3 DATA COLLECTION

    A pilot study was conducted to investigate the attitudes and perceptions that people have

    about mobile TV. This was also important in checking for reliability of scales used in the

    questionnaire. The pilot questionnaire was distributed to 30 students at The University of the

    Witwatersrand. The other intention of the pilot questionnaire was to find out what questions

    potential participants would like to see in the final questionnaire that would be used to collect

    data?

    The research design was important for the following reasons

    a). Laying out the information required in the study.

    b). It helped determine whether the entire design will be descriptive, exploratory or causal.

    c). It designed the order in which all measurements were to follow.

    d).The research design was also involved in construction of the questionnaire that was be

    used for this research.

    e). It clarified the qualitative or quantitative procedures in sampling and the sample size.

  • 29

    f). Finally the research design was also be key in developing the plan for the quantitative data

    analysis that is going to be used in this study (Malhotra & Birks, 2007).

    4.4 SAMPLE SELECTION

    (Trochim, 2000) mentioned that selecting a sample was a process that involved choosing

    units, that meant people or organisations from a population of interest to the researcher so

    that by studying the sample one may fairly generalize the results back to the population from

    which they were chosen

    4.5 PRIMARY DATA COLLECTION INSTRUMENT

    The primary data collection instrument used for this dissertation was a questionnaire. This

    questionnaire was developed by the researcher and distributed to willing respondents at the

    University of the Witwatersrand. All respondents were students who attend the University of

    the Witwatersrand and who had volunteered to participate in the study. The questionnaire had

    two sections A and B, section A asked the respondent about his or her biographical

    information such as gender and age. Section B used a five point likert-scale to ask questions

    based on the research model and asked the respondent questions regarding his or her

    attitudes, perceptions and preferences towards mobile TV.

    The researcher made the decision to use a questionnaire to collect data from respondents as

    this was seen to be the most appropriate tool for collecting the data. The questionnaire was

    designed based on a modified technology acceptance model that was adopted from the

    technology acceptance model developed by Vakantesh & Davis (2000)

    4.5.1 FORMAT OF THE QUESTIONNAIRE

    The primary data collection instrument used to collect data for the research was a research

    questionnaire. The following sections outline the format of the research questionnaire.

  • 30

    SECTION A: BIOGRAPHICAL DETAILS

    This section of the questionnaire asked the respondent information about his or her age,

    gender economic status and year of study

    SECTION B: ATTITUDES, PERCEPTIONS AND PREFERNCES

    In this section the respondents were asked to answer a series of questions on five point likert-

    scales that asked about attitudes, perceptions and preferences that the respondent might have

    towards the consumption of mobile TV.

    4.6 DATA PROCESSING AND ANALYSING

    Trochim (2000) pointed out that most social research involves the data analysis that occurs in

    three main stages which are usually carried out in the following order:

    1. Cleaning and sorting out the data for analysis (Data Preparation).

    2. Describing the data (Descriptive Statistics)

    3. Testing Hypotheses and Models (Inferential Statistics).

    4.7 DATA CLEANING AND CODING

    Before the data collected from study could be analysed certain checks for the legitimacy of

    the data have to be conducted and the researcher had to take this into consideration so that so

    incorrect data was entered on to the excel spread sheet and if entered had to be removed.

    Trochim (2000) stated that immediately after receiving the collected data the researcher must

    screen it for accuracy. This will enable the researcher to identify any errors that the sample

    might have.

    Trochim (2000) added that the following questions had to be asked by the researcher in order

    to successfully check for discrepancies and inconsistencies:

    Are the responses written clearly?

  • 31

    Did the respondent answer all important questions?

    Did the respondent complete the questionnaire?

    Does the questionnaire contain all the relevant contextual information such as data,

    time, place and the researcher’s details?

    4.7.1 DATA ANALYSIS AND STATISTICAL TECHNIQUES

    To analyse data collected the following statistical techniques are going to be used:

    1. Factorial analysis

    2. Linear regression

    a) Factorial analysis was conducted in order to reduce data, this means small sets of data

    where being achieved using a small set of variables (preferably uncorrected) being.

    The other reason for conducting factor analysis would be to create indexes with

    variable that would measure the same thing in concept. To get a small set of variables

    (preferably uncorrelated) from a large set of variables (most of which are correlated to

    each other).

    b) Linear regression was conducted in order to see the relationship that might exist

    between the variables contained in the modified technology acceptance model

    (Statistics.laerd, 2013).

    4.8 RELIABLITY AND VALIDITY

    In the section below reliability and validity are defined.

    4.8.1 RELIABILITY

    (Malhotra & Peterson, 2006) defined reliability as the degree to which a scale produces

    consistent results if the same measurements are repeated. To test for reliability that was used

    for the scales Cronbach’s alphas where tested on all the variables that were used to make the

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    questionnaire. Repeated measuring of a construct or construct of interest determines its

    reliability for research (Malhotra & Peterson, 2006).

    4.8.2 VALIDITY

    Validity is a statistical process that establishes if a study is actually measuring what it is

    intend to or if the results are actually true (Golafshani, 2003). According to (Malhotra &

    Peterson, 2006) validity refers to the extent to which differences in the observed scales scores

    reflect actual differences in what is being measured. In order to test for reliability of the

    scales used for collecting data a pilot study was conducted and Cronbach’s alphas for all

    variables on the model that were used in the questionnaire. The Cronbach’s alphas were run

    using SAS Enterprise Guide. Below are the Cronbach’s alpha results of the pilot study.

    (Malhotra & Peterson, 2006) defined reliability as the average of all possible half-divided

    coefficients that are as a result of different divisions of the variable in question. (Malhotra &

    Peterson, 2006) also added that the coefficient varies from 0 to 1 and any value less than 0.6

    is considered to be unreliable for measuring that specific construct.

    4.8.3 RELIABILITY TESTS

    Below is a discussion of the Cronbach’s Alphas that were calculated for each of the eight

    constructs of the scale which were tested.

    4.8.3.1 EXPERIENCE

    The experience construct of the scale was calculated along five indicators, they are:

    Experience- reliability

    Experience- News

    Experience- Sport

    Experience- boring

    Experience- satisfied

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    The results of the calculation were presented in table 4.8.1

    TABLE 4.8.1 Cronbach’s Alpha Coefficient for Each Variable in the Experience

    Construct for the Pilot Study

    Cronbach’s Alpha Coefficient

    Total 0.661355

    Cronbach’s Alpha Coefficient with deleted variables

    Experience -Reliability 0.633430

    Experience -News 0.558673

    Experience -Sport 0.598199

    Experience -Boring 0.618969

    Experience -Satisfied 0.634082

    The calculated Cronbach’s alpha for experience was calculated using the results of the pilot

    study to be: 0.66. This is above the 0.6 margin and indicates that the measurement of the

    experience construct was fairly reliable. However the news and sport variables had 0.558673

    and 0.598199 respectively these factor loadings are considered fairly low and less reliable

    and therefore possible reasons for the low loadings could have been that the sample size was

    too small to achieve reliable results as only 30 respondents were sampled and the other

    reason could have been that the response failed to interpret the questions accurately.

    4.8.3.2 PERCEPTIONS

    The perceptions construct of the scale was calculated along five indicators, they were:

    Perceptions- Price

    Perceptions- Screen size

    Perceptions- Easy

    Perceptions- Entertaining

    Perceptions- durable

    The results of the calculation were presented in table 4.8.2

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    TABLE 4.8.2 Cronbach’s Alpha Coefficient for Each Variable in the Perceptions

    Construct for the Pilot Study

    Cronbach’s Alpha Coefficient

    Total 0.884281

    Cronbach’s Coefficient alpha with deleted variables

    Perceptions -Price 0.862467

    Perceptions -Screen size 0.862467

    Perceptions -Easy 0.837953

    Perceptions -Entertaining 0.868658

    Perceptions -durable 0.864344

    The calculated Cronbach’s alpha for the perceptions construct was calculated using the

    results of the pilot study to be: 0.88. This is way above the 0.6 margin and indicates that the

    measurement of this perceptions construct is very reliable.

    4.8.3.3 IMAGE

    The image construct of the scale was calculated along five indicators, they were:

    Image More- Friends

    Image- Respect

    Image- Higher Status

    Image- Lower Status

    Image- Less Friends

    The results of the calculation were presented in table 4.8.3

    TABLE 4.8.3 Cronbach’s Alpha Coefficient for Each Variable in the Image Construct

    for the Pilot Study

    Cronbach’s Alpha Coefficient

    Total 0.619084

    Cronbach’s Alpha Coefficient with deleted variables

    Image -More Friends 0.564599

    Image -Respect 0.494203

    Image -Higher Status 0.502294

    Image -Lower Status 0.627512

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    Image -Less Friends 0.617566

    The calculated Cronbach’s alpha for the image construct was calculated using the results of

    the pilot study to be: 0.62. This is above the 0.6 margin and indicates that the measurement of

    the image variable is reliable.

    4.8.3.4 SCREEN SIZE

    The screen size construct of the scale was calculated along five indicators, they were:

    Screen size- Small

    Screen size - Picture

    Screen size - Reasonable

    Screen size - Frame rate

    Screen size - Detail

    The results of the calculation were presented in table 4.8.4

    TABLE 4.8.4 Cronbach’s Alpha Coefficient for Each Variable in the Screen Size

    Construct for the Pilot Study

    Cronbach’s Alpha Coefficient

    Total 0.875623

    Cronbach’s Alpha Coefficient with deleted variables

    Screen -size Small 0.848403

    Screen -size Picture 0.808447

    Screen -size Reasonable 0.878992

    Screen -size Frame rate 0.848096

    Screen -size Detail 0.856905

    The calculated Cronbach’s alpha for the screen size construct was calculated using the results

    of the pilot study to be: 088. This is way above the 0.6 margin and indicates that the

    measurement of the screen size construct is very reliable.

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    4.8.3.5 FUNCTIONALITY

    The functionality construct of the scale is calculated along five indicators, they were:

    Functionality- Satisfied

    Functionality- Complex

    Functionality- Limited

    Functionality- Reception

    Functionality- Compatibility

    The results of the calculation were presented in table 4.8.5

    TABLE 4.8.5 Cronbach’s Alpha Coefficient for Each Variable in the Functionality

    Construct for the Pilot Study

    Cronbach’s Alpha Coefficient

    Total 0.885615

    Cronbach’s Alpha Coefficient with deleted variables

    Functionality -Satisfied 0.847844

    Functionality -Complex 0.864901

    Functionality -Limited 0.856851

    Functionality -Reception 0.838970

    Functionality -Compatibility 0.892715

    The calculated Cronbach’s alpha for the functionality construct was calculated using the

    results of the pilot study to be: 089. This was way above the 0.6 margin and therefore

    indicated that the measurement of the functionality construct was very reliable.

    4.8.3.6 CONVENIENCE

    The convenience construct of the scale was calculated along five indicators, they were:

    Convenience- General

    Convenience- Battery

    Convenience- Coverage

    Convenience- Portability

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    Convenience- Back-up

    The results of the calculation were presented in table 4.8.6

    TABLE 4.8.6 Cronbach’s Alpha Coefficient for Each Variable in the Convenience

    Construct for the Pilot Study

    Cronbach’s Coefficient Alpha

    Total 0.856136

    Cronbach’s Coefficient Alpha with deleted variables

    Convenience -General 0.839996

    Convenience -Battery 0.793494

    Convenience -Coverage 0.834275

    Convenience -Portability 0.824192

    Convenience -Back-up 0.837355

    The calculated Cronbach’s alpha for the convenience construct was calculated using the

    results of the pilot study to be: 086. This is way above the 0.6 margin and indicates that the

    measurement of the convenience construct is very reliable.

    4.8.3.7 OUTPUT QUALITY

    The output quality construct of the scale was calculated along five indicators, they were:

    Output- Sound

    Output- Image Clarity

    Output- Image Size

    Output- Overall

    Output- Download Time

    The results of the calculation were presented in table 4.8.7

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    TABLE 4.8.7 Cronbach’s Alpha Coefficient for Each Variable in the Output quality

    Construct for the Pilot Study

    Cronbach’s Alpha Coefficient

    Total 0.777597

    Cronbach’s Alpha Coefficient with deleted variables

    Output Quality- Sound 0.770171

    Output Quality-Image Clarity 0.720724

    Output Quality- Image Size 0.772209

    Output Quality- Overall 0.672105

    Output Quality- Download Time 0.737025

    The calculated Cronbach’s alpha for output quality was calculated using the results of the

    pilot study to be: 078. This is above the 0.6 margin and indicates that the measurement of the

    output quality construct was reliable.

    4.8.3.8 ACCEPTANCE

    The attractiveness construct of the scale is calculated along five indicators, they are:

    Acceptance- Ease

    Acceptance- Entertaining

    Acceptance- Reliable

    Acceptance- Appealing

    Acceptance- Useful

    The results of the calculation were presented in table 4.8.8

    TABLE 4.8.8 Cronbach’s Alpha Coefficient for Each Variable in the Acceptance

    Construct for the Pilot Study

    Cronbach’s Alpha Coefficient

    Total 0.831284

    Cronbach’s Alpha Coefficient with deleted variables

    Acceptance -Ease 0.795497

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    Acceptance -Entertaining 0.795499

    Acceptance -Reliable 0.819227

    Acceptance -Appealing 0.776444

    Acceptance -Useful 0.799795

    The calculated Cronbach’s alpha for output quality was calculated using the results of the

    pilot study to be: 0.83. This is above the 0.6 margin and indicates that the measurement of the

    acceptance construct is very reliable.

    The results from the above four statistical analyses provided evidence that the scale used for

    this study was reliable. The Cronbach’s alphas for all of these constructs were again

    calculated using the full sample group in chapter 5.

    4.8.4 ETHICAL COSIDERATIONS OF THE RESEARCH PROJECT

    An ethics clearance form was applied for and obtained is it was a requirement of the research.

    This was so because a human element was involved in the study therefore measures had to be

    put in place that ensure the protection of peoples’ privacy as well as the reputation of the

    University of the Witwatersrand. No participant was forced to take part in the study and no

    incentives such as money were used into luring participants into taking part. All the

    procedures as far as ethical conduct throughout the research were adhered to by the

    researcher. The researcher will keep all collected data as confidential and not use it for any

    other purposes other than those of the research. It is the responsibility of the researcher to

    protect the anonymity of the participants of the research and to maintain the data collected

    confidential at all costs unless arrangements are with the participants in advance (Frankfort-

    Nachmias & Nachmias, 1992)

    4.9 CONCLUSION AND SUMMARY

    Chapter 4 outlined and discussed the methodology that was used for the entire research.

    Chapter 4 began with laying out the research design to the data collection process used,

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    describing the population and sample selection procedures. The format of the questionnaire

    which is the primary data collection tool was discussed as well as the procedure that would be

    carried out in the following Chapter for the processing and analysing of the data. A strong

    emphasis was made on data cleaning in Chapter as it is crucial to code accurate data because

    coding inaccurate data would lead to making misinformed conclusions and findings.

    Reliability and validity of scales was also discussed as well as conducting reliability tests on

    all variables that were used to construct the questionnaire. The reliability tests were carried

    out using the Cronbach’s alpha. Chapter 5 presents and explores the findings that where

    obtained through empirical investigation illustrated in this Chapter. Ethical considerations

    were also discussed in this Chapter. In Chapter five the results of the study were analysed and

    interpreted using SAS Enterprise Guide 5.1.

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    CHAPTER 5

    ANALYSIS AND INTERPRETATION OF RESULTS

    5.1 INTRODUCTION

    Chapter 4 discussed the methods and techniques that were used to obtain the findings

    presented in this chapter. This chapter discusses the findings that where obtained through

    empirical investigation. In his chapter there were presentations of statistical analysis of data

    that was collected through the data collection tool (questionnaire). To analyse the data SAS

    Enterprise Guide was used. In this chapter descriptive statistics were discussed, the reliability

    of all the constructs that were in the model and used to develop the questionnaire where also

    discussed. Finally results of factor analysis and linear regressions were presented in th