Research Proposal, MM00291693

Middlesex University Business School London

MA Marketing Management

January 2010 Intake.

MKT 4003 RESEARCH IN MARKETING Module Leader: Dr Simon Manyiwa

Academic Group: Marketing

Name: Manzil Madhwani (M00291693)

Assessment: Individual Coursework, Research Proposal

Date: 9 April 2010

Manzil Madhwani (M00291693)

2

CONTENTS

EXECUTIVE SUMMARY

LITERATURE REVIEW

RESEARCH PROBLEM

STUDY AIMS AND OBJECTIVES IMPORTANCE OF THE STUDY RESEARCH METHODOLOGY FUTURE RESEARCH

LIMITATIONS

APPENDIX REFERENCES


3

Mobile Marketing - Consumer’s Attitude towards Permission based and

Push – Pull SMS Marketing. Consumer’s perception of brand promotions

via. mobile coupons.

KEYWORDS: Attitudes, Mobile Marketing, Push - Pull, Consumer Behaviour,

Brand Promotions, m-coupons.

1. EXECUTIVE SUMMARY

This research aims at determining the consumers brand image perception of

brands promoting via offers made on mobile marketing with the help of their

attitudes towards permission based and push pull SMS marketing. In the broad

context setting of mobile marketing, already a lot of research has been done on

the effectiveness of mobile marketing, successful strategies in mobile marketing,

consumer’s acceptance to the use of SMS as a marketing communication tool.

Also further researches are also made on the personalization and interaction

developed through permission based mobile marketing and also effectiveness of

push-pull models of mobile marketing. Within this scenario where mobile phones

are the highest number of communication tools, we will consider only SMS

Marketing as a focus area as it is a technology adapted by wide demography of

global population. Use of qualitative research will be made for collection of basic

data of the concerned area. The results of this study will be very useful to brands

which already engage with the consumers by means mobile and SMS marketing

techniques and also to the brands which are looking forward to do so. The

effectiveness of balanced push – pull model in generating consumer’s positive

attitude towards SMS marketing and within this balanced communication the

consumer’s perspective of brand image of brands promoting through the mobile

offers and mCoupons will be very useful to mobile marketers. There is existing

research on brand image perception of consumers towards brands promoting

through discounts and offers but to exploit it in the mobile SMS marketing context

is the aim of this research. Understanding the consumer’s perception of brand


4

image will be helpful in determining the behaviour of consumer towards the brand

and the buying intention generated through mCoupons.

2. LITERATURE REVIEW

Background:

Mobile marketing significantly involves technology and is itself a very wide topic

and a market concept and care should be taken for not confusing a technology

with a concept. We will have a look at some literature for how it has been

conceptualized till now. According to the marketing research of Leppäniemi et al.

(2006), it can be observed that marketing communications in mobile media can

be inferred of consisting mobile marketing, mobile advertising, wireless

marketing, and wireless advertising. It should be observed that mobile marketing

is not just communication though a new channel of mobile device users. The

formal definition of mobile marketing can be best taken from Mobile Marketing

Association (2008, p22) as “the use of wireless media as an integrated content

delivery and direct-response vehicle within a cross-media marketing

communications program.” From literature of Bauer et al. (2005) we can have a

look at inherent features of mobile marketing like personalization, ubiquity,

interactivity and localization and it is ideal for dialogue oriented and individualized

communication which makes it a superior marketing communication. From the

consumers perspective this media of mobile services is new and their attitude

towards the use of mobile devices for marketing determine the extent to which

the marketing industry employs mobile marketing. Further, the determination of

consumer’s positive or negative brand image perception can imply repetitive

purchase intention and sustaining the consumer over longer periods for certain

products like movie ticket mCoupons by a cinema chain.


5

Consumers initial attitude towards mobile marketing and perceptions of

mobile marketing:

If we look from the consumers perspective, the technology of mobile multimedia

services is relatively new and their attitude towards the use of mobile devices for

marketing determine the extent to which the marketing industry promotes through

that channel. We will have a look at the “Technology Adaption Model for

Multimedia Mobile Service” proposed by Pagani (2004). It can be inferred that

the levels of perceived usefulness, knowledge, perceived innovation and

interactivity drives the people towards adopting a technology. In case of mobile

communication technology because of increasing knowledge, usefulness and

high interactivity the rate of growth of people adapting to use of mobile

multimedia devices was very rapid. This rapid growth indicated the marketers to

communicate via the mobile media and soon laid out strategies that are

applicable in marketing through the mobile media. According to Heinonen &

Strandvik (2002) (cited in Wang and Akar, 2006a), receiving of commercial text

messages is in general found to be undesirable and might generate negative

attitudes toward advertisers. In a study that measures consumer’s attitudes

towards mobile advertising it was concluded that receiving commercial texts was

perceived as disturbing and negative by consumers. (1Tsang et al. 2004).

Amongst the various mediums available to communicate to a consumer’s cell

phone, Short Messaging Service came out to be the most irritating medium in an

empirical study of Heionoen and Strandwik in 2002 (cited in Wang and Akar,

2006b)

SMS Popularity, Specifically Universal:

There are 4.1 billion mobile subscribers globally (Mocom2020 team, 2009). The

total mobile ad spend of world in 2009 is estimated to be $ 7.3 billion (e-

Marketer, 2008a). The total estimated text message ad spend will be 55 % of the

total mobile ad spending in 2009 (Google Inc., 2009) which alone contributes

amount of $ 6.4 billion mobile marketing spend in 2009. (e-Marketer, 2008b).

There is a high diffusion of SMS facilities which helped analyse commercial


6

potential of mobile communication services (Scharl, Dickinger and Murphy,

2004). The benefits of SMS marketing include reliability, ease, low cost, discrete,

confidential and less time consuming (Michael and Salter, 2006a, p19). Cultural

differences between countries can influence the mobile phone usage and

provision of mobile marketing communications, but the desire for easy

communication is specifically universal and SMS is one such example. (Michael

and Salter, 2006a, p6).

There were 1.4 billion mobile phone subscriptions worldwide who sent over 350

billion SMS per month and15 percent of them were classified as commercial. 54

percent of mobile phone owners use one or more mobile data services such as

text messaging, Internet access, downloadable ring tones, and mobile gaming.

Data from CITA (2006) (cited in Wang and Acar, 2006c).

The less complexity and high compatibility of a communication technology within

the mobile marketing media leads to adaption of a particular media (Gemma,

2009). Based on this, it can also be assumed that the SMS application is much

easier to use than other mobile communication forms like MMS, Bluetooth, WAP,

Wi-Fi to a wide demography as the other forms usage depends on person to

person technology adaption.

Permission based SMS Marketing and the new consumer attitude towards

SMS Marketing:

If we move towards strategy from basics, referring to the “Strategic Marketing

Marketing Model” by Ranchhod (2007), the communications are getting

permission based and start by the consumers desire to communicate and this

permission needs to be sensibly and successfully managed.

Interestingly commercial-related text messages when received on user’s

permissions, based on the values of entertainment, information, and credibility of

messages, the attitude created toward the advertiser was positive, (Tsang et al.,

2004b). So favourably, commercial-related text messages can be considered as

good as messages carried by traditional media by consumers if the messages

were delivered by their reliable and permitted sources. Mobile advertising that


7

has a high satisfaction rate can help improve brand attitudes and increase brand

awareness when it is permitted by consumers, as suggested by Barwise and

Strong (2002a). So it can be judged that if there is a prior permission the

incoming messages are welcomed by the consumers and they also might

respond to such advertisement messages. In the early findings about permission

based SMS Marketing study conducted by Barwise and Strong (2002b) implied

for a campaign. The findings are that consumers will certainly respond to

attention grabbing SMS adverts, the relevance of adverts is necessary and

spamming the consumers is dangerous as they might get irritated.

Push – Pull balance in SMS marketing and consumer’s new attitude

towards mobile marketing.

There were initial juggles between push type message communication in which

there was virtual monologue and pull type services where consumers have to

send some charged text message to know about certain products or services.

On one hand there were issues of danger of spamming the consumers and in

other the information was only provided by the telecom service provider which

was charged and was thought of having biases towards the featured brands.

In a research of Pachoulakis (2006), the ubiquitous nature of mobile devices

allows direct marketers to reach consumers anyplace and anytime, with use of

SMS. As legislative efforts try to abate the aggressive nature of such push-based

advertising, pull-based methods which let customers be in charge are gaining

support. New technologies can be employed to solicit a balanced mix of push-

based and pull-based advertising for the common benefit of both marketers and

customers. The simplicity, personalization and versatility can result from

sustainable interactions between users and their device collections, in order to

serve certain user tasks. Looking at the findings of consumer’s perceptions on

SMS marketing for permission based mobile marketing activities and looking at

balanced push pull system as even more consumer driven, we can generalise

that it is can very effective as a ‘pull’ from the consumer certifies that the


8

communication is initiated by the consumer’s own need and so there are greater

chances for this to work.

Consumer’s attitudes towards a brand promoting through discounts and

coupons:

Irrespective of the media, promotional activities of brand target several consumer

characteristics to stimulate purchase intent and consumers have a certain

attitude towards the promotional activities. Promotional activities lead to a

consumer’s involvement with a brand and can also increase frequency of

exposure and also facilitate a brand recall.

Bonus pack offering (extra goods for the same price) is a kind of promotional

activity and has similar implications to discounts and coupons in many ways.

We will have a look at the findings of earlier research by Grewal et al.(1991) to

have a look at the consumer’s general perspectives on discount. The findings

suggest that higher the discount higher the value perceptions, higher the

purchase intention, lower the buyer quality requirements and lower the internal

reference price with some moderating exceptions.

We need to consider that the credibility is the issue with all sorts of promotional

activities. While promoting a brand very aggressively it must be kept in mind that

too much of discount offered can lead to loosing the credibility of offer and has a

negative impression on the brand (Ong, 1997)

The coupons provide a consumer brand interface and based upon the coupons

the consumers can develop a brand image. Coupons and consume brand

perception have some findings like consumers think that a better brand is higher

priced until they compare with other brands products. Expectations will be

highest when a higher brand offers a higher coupon. (Raghubir, 1996)

Focusing on the attitudes towards unsolicited text messages, very few academic

studies have investigated consumer’s perceptions toward mobile promotions via

mobile couponing and the perceptions of brand promotion through mobile

couponing.


9

3. RESEARCH PROBLEM

The above reviewed literature suggests that in the context setting of mobile

marketing, and sub context setting of SMS marketing, there is a level of

acceptability of consumers and there is a different attitude generated than

traditional media marketing. The consumer’s attitude before the marketing

practice of permission based and balanced push pull mobile marketing model

was very different. There are old theories which explore in great details the

consumers perceptions of brand promotions.

The specific promotional tool mobile couponing is the merger of classical

couponing and mobile communications. It has been part of mobile and location-

based service visions ever since the advent of the m-commerce discussion

(Wehmeyer and Müller-Lankenau, 2005).

Now the brands are being promoted using the mobile coupons. There exists a

gap of how in the mobile marketing space the consumers behave to the brand

promotions, specifically promotion through issuing of mobile coupons.

4. STUDY AIMS AND OBJECTIVES

The aim of this study is to highlight the difference in consumer’s previous attitude

towards mobile marketing and the attitude after permission based and balanced

push pull model are in place and using them to determine the consumer’s

perceptions of brand promotions done by issuing mobile coupons.

The study will focus on the following four objectives:

1. Exploitation of differences in previous and present attitudes of consumer’s

towards SMS marketing.

2. Consumers general attitude towards brand promotions.

3. Using findings of 1. and 2., exploring the relation between the consumer’s

attitude towards SMS marketing and the perception of mobile brand promotions.


10

4. Understanding consumer’s exact attitude towards brand promotion using SMS

mobile coupons.

5. IMPORTANCE OF THE STUDY

There is already an understanding in the marketing industry for developing the

existing theories in relation with the technical advances and further with the

acceptance of the technologies within the consumer’s. As a number, mobile

phone users is higher than any other communication device users, the inherent

features of the technology are to be considered into the marketing environment.

The consumer behaviour needs to be explored for mobile marketing in the same

as it was being explored during internet marketing boom. This form of coupon

delivery has a potential to become the most dominant in coming times. Knowing

how the consumers see this form of promotion now, will help in determining the

future of mobile couponing. Other forms of mobile couponing with use of GPS

and mobile web can also be considered for the niche markets.

6. RESEARCH METHODOLOGY

Research Approach and Philosophy:

Based on the aims and objectives of this study the research approach will be

interpretive epistemology (Kent, 2007a).

Research Design

Sampling and exploratory research design will be applied in this research. In

most exploratory research projects, primary data is gathered through qualitative

data collection practices (Hair et al., 2006a).

Qualitative research will be undertaken using an unstructured research approach

with a small number of carefully selected individuals (Chain cinema visitors

coming with a popular movie mobile coupon in this case) to produce insights into

attitudes, motivations, and behaviour (Hair et al., 2006b).


11

Data Collection:

Data collection instrument will be a focus group. In deciding who should be

included as participants in a focus group, the researcher will give strong

consideration to the purpose of the study and research objectives. Factors in the

selection process are the group dynamics and the willingness of members to

engage in dialogue (Hair et al., 2006c). The researcher will contact people

visiting several branches of a chain cinema in London. They will be informed the

purpose of study and its usefulness. If they are willing to participate then only

they will be selected for the research interview. The focus group will consist of 30

people from various age groups, Attempt will be made to include people of both

sexes equally and also to include people from various social grades. The data

collected will be from three different branches of the chain cinema to avoid the

localized behaviour from affecting the research data quality. The participants will

be offered a small amount voucher coupon of a chain superstore as a gift. Each

of the 10 groups of 3 people will be formed in such a way that none of the four

members have come together for the show and not all the members will have

viewed the show via a mobile coupon. Each group will be interviewed in detail

about the research topic, the moderator will make field notes and draw out as

many ideas, attitudes, and experiences as possible about the specified issue

(Hair et al., 2006d).

Research Method

Primary data will be collected through qualitative research. There will be a focus

group and the individuals will not be interviewed one at a time. In this case of this

research, the participants will require a detailed short discussion but they will not

need to provide a direct opinion, rather it will be observed. “Qualitative research

has been seen as a preliminary to a larger scale quantitative study and in this

sense is being used for exploratory purposes, usually in areas where little

research has been done.”(Kent, 2007) The results of the quantitative research

could be then applied to the larger population.


12

Data Analysis

The results will be analysed using analysis of field notes of the detailed short

interaction and the opinions of the respondents will be extracted, which will

automatically create quantitative data from qualitative data (Kent, 2007).

7. FUTURE RESEARCH

Future research can be in the acceptance and preferences of consumers in

mobile couponing with demographic and geographic factors in consideration.

Separate microanalysis for each or any sector can also be done. Use of mobile

couponing with other than SMS communication variables of mobile phone and

location based mobile couponing. The consumer’s response to location based

mobile couponing and its usefulness during retail shopping can be researched.

8. LIMITATIONS

Qualitative analysis may or may not be sufficient enough to provide data that can

represent large groups. The reason is small number of people being interviewed,

in this case just 30. Moreover this research will be carried out in London. Our

research is not involving any geographic barriers but the response obtained

might be having some influence of local factors and would it have been carried

out somewhere else the results might have been different. Also the industry

segment selected which is being promoted is also sampled for promotion of all

products and segments. The responses might vary segment to segment also.

The design of the research is descriptive and as it is exploratory study, it can

future research guidelines.


13

9. APPENDIX

Figure 1. Strategic Mobile Marketing Model.

Source:

Ranchhod, A. (2007). ‘Developing Mobile Marketing Strategies’. International

Journal of Mobile Marketing. Volume 2 (1), p76-83.

Figure 2. Mobile Advertising Spending, 2009 (est).

Source: ‘Facts about Google's acquisition of AdMob’. (online).(Nov 9th , 2009). Calif, USA: Google Inc.. Available on:

http://www.google.com/press/admob/comp.html (4th April, 2010)


14

Figure 3. Mobile Advertising Spending, 2009 (est).

Source: Gauntt. J (2008). ‘Mobile Advertising: After the Growing Pains’. (online). (Mar, 2008), p1. USA: eMarketer. Available on: http://www.emarketer.com/Reports/All/Emarketer_2000452.aspx (4th April, 2010).

Figure 4. Technology Adaption Model for adaption of Mobile Multimedia

Services.

Source:

Pagani, M. (2004) JOURNAL OF INTERACTIVE MARKETING, VOLUME18(3),

p46-59.


15

10. REFERENCES

Barwise, P. & C. Strong (2002). “Permission-based mobile advertising.” Journal

of Interactive Marketing. Volume 16 (1), p14-24.

Bauer H. (2005). ‘Driving Consumer Acceptance of Mobile Marketing’ Journal of

Electronic Commerce Research, Volume 6(3), p181.

eIntegration in action: 18th Bled eConference (2005). Mobile Couponing. Wehmeyer,K. and Müller-Lankenau, C. Bled, Germany. ERCIS. Gemma, R. (2009). ‘Consumer perceptions of mobile phone marketing’. Direct

Marketing: An International Journal. Volume 3 (2), p124-138.

Hair, J., Bush, R. and Ortinau, D. (2006). Marketing research within a

changing environment.(Edition 3). New York: McGraw-Hill/Irwin.

Kent, R. (2007). Marketing Research: Approaches, Methods and Applications in

Europe. London: Thomson Learning.

Leppäniemi M, Karjaluoto H and J Sinisalo. (2006) “A Review of Mobile

Marketing Research,” International Journal of Mobile Marketing. Volume.1(1), p

30-40.

Michael, A. and Salter, B. (2006). Mobile marketing: achieving competitive

advantage through wireless technology. (Edition 1). Oxford, UK : Elsevier Ltd.

MMA (2008)Glossary. (online). Denver, US : Mobile Marketing Association .

Available from: http://mmaglobal.com/uploads/glossary.pdf (4, April 2010)

Mocom2020 Team(2009). ‘4.1 billion mobile subscribers worldwide’. (online).

Germany : Ahead of Time Gmbh. Available from:

http://www.mocom2020.com/2009/03/41-billion-mobile-phone-subscribers-

worldwide/ (27, March 2010)


16

Ong.B et al. (1997) ‘Consumer perceptions of bonus packs: an exploratory

analysis’. Journal of Consumer Marketing. Volume14 (2), p102-112.

Ranchhod, A. (2007). ‘Developing Mobile Marketing Strategies’. International

Journal of Mobile Marketing. Volume 2(1), p76-83.

Schalr A. et al. (2005). ‘Diffusion and success factors of mobile marketing’.

Electronic Commerce Research and Applications. Volume 4, p159–173.

Tsang, M. L., S. C. Ho, & T. P. Liang (2004). “Consumer attitudes toward mobile

advertising: An empirical study.” International Journal of Electronic Commerce,

Volume 8(3), 65-79.

Wang, A. and Acar, S. (2006). ‘Information search and mobile promotions’.

International Journal of Mobile Marketing. Volume 1 (2), p81-87.

Research Proposal, MM00291693

Documents

Transcript of Research Proposal, MM00291693