User Acceptance of SMS-Based Mobile Advertising Campaigns

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    User Acceptance of SMS-based MobileAdvertising Campaigns

    Philipp Heim/Eva Walter / Thomas Reutterer

    PLS09

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    Background & Motivation

    Objectives of our Study

    Prior Research

    Research Framework and Hypotheses

    Empirical Study and Methodology

    Results, Implications, Limitations & furtherResearch

    Outline

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    Background & Motivation

    Mobile cellular subscribers per 100 residents in Europe

    Source: DESTATIS 2009

    0

    20

    40

    60

    80

    100

    120

    140

    160

    2006

    1996

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    Background & Motivation

    Worldwide

    4 billion mobile cellular subscribers at the end of 2008

    2000 mobile penetration only 12 per cent, 2008 about 61 per cent

    Consumers information overload Loss of efficiency of conventional advertising media

    Source: Acharya,Sanjay(ITUWorld Telecommunication,Sept.2008)

    Great potential for use within personalised

    one-to-one marketing campaigns

    e.g. via SMS

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    Objectives of our Study

    Primary goals:

    To empirically evaluate the potential influencing factors

    on consumers acceptance and attitudes towards

    SMS-based advertising in a specific advertising campaign

    To test the impact of different text layouts on the recipients

    perceptions of SMS-advertising

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    Prior Research

    Research in this area seems to be at a relatively early stage(Barnes/Scornavacca 2004; Tanakinjal et al. 2007; Mort/Drennan 2002)

    Relatively large number of studies focusing on the acceptance of

    mobile advertising (Haghirian/Madlberger 2005, Tsang et al. 2004, Bauer et al.2004)

    Prior research revealed negative attitudes towards mobileadvertising in general.

    Problem:

    Rather general, context independent notion of mobile advertising

    Focus on young target audiences

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    Prior Research

    Conceptual framework

    Technology Acceptance Model (Davis 1989)

    Theory of reasoned Action (Fishbein/Ajzen 1975)

    Theory of planned Behaviour (Ajzen 1991)

    Some other empirically tested constructs

    Advertising value (Ducoffe 1995)

    Credibility (Brackett/Carr 2001; Tsang et al. 2004) Entertainment/Informativeness/Irritation/Permission (Tsang et al. 2004;

    Haghirian/Madlberger 2005)

    Personal Innovativeness (Agarwal/Prasad 1998)

    Relevance (Barnes&Scornavacca 2004; Tanakinjal et al. 2007)

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    Research Framework and Hypotheses

    H1a+

    Perceived advertising value (ADV) triggers attitude towards the ad (ATT)which has a positive impact on purchase intention (INT)

    ENT

    INF

    IRR

    CRE

    ADV ATT INT

    PERM

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    REL

    AGE EDUSEX

    PI

    H1b+H2a

    +

    H2b+

    H3-

    H4+

    H5a+

    H5b+

    H8+

    H9+

    H10+

    H11+

    H12+

    H6+

    H7+

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    Empirical study and methodology

    In contrast to previous contributions a specific SMS campaign wasconducted in cooperation with a Do-It-Yourself (DIY) retailer in July 2007

    2,150 members of the retailers loyalty program received the SMSannouncing a 20 per cent discount for a specific item

    Only members, who had bought the product advertised or a similar product

    The item was not featured in any other ad and sold at the regular shelf priceduring the experimentation period

    Within 3-4 days the members were contacted at their mobile phone

    369 consumers were willing to participate

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    Results

    .306*

    .467*.094*

    .079*

    .271*

    .058

    .369* .889*

    .192*.010

    ADV ATT INT confirmed, ENT strongly affects ADV/ATTAd needs to be relevant (REL) and based on permission (PERM)

    ENT

    INF

    IRR

    CRE

    ADV.856

    ATT.919

    INT.790

    PERM

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    REL

    AGE EDUSEX

    PI

    -.010 -.001 .003

    .139*

    .057

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    Results

    Experimental Design

    2 text versions: 1 Neutral, 1 Inviting (emphasis on the price-discount)

    2 structurally similar sub-samples

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    Implication

    Entertainment and Relevance are of major importance forpositive evaluation and acceptance of a mobile advertisingcampaign

    Informativeness and Credibility turned out to be ofsubordinate importance

    Irritation seems to be low, which could be an indication thatconsumers are aware of their given permission, but clearinstruction is essential

    Daily use of mobile phone affects personal innovativeness

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    Limitations & further research

    Generalisability:

    Promoted product was not necessarily representative for DIYRetailer (low-interest, low price)

    So, motivation to visit the store can be expected to be rather lowas relevance has a strong impact

    Further investigation of behavioural consequences of theperceptual measures (instead of self-reported behaviour)

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    Thank you for your attention!

    Source: Cathy Wilcox@ Heim/Walter/Reutterer - 12

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    Appendix

    SEITE 15Fuzeile

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    Appendix

    ENTI feel that receiving SMS advertisements from XY is pleasing unpleasing. (Tsang/Ho/Liang 2004)

    IRRSMS advertising is annoying (Haghirian/Madlberger 2006)

    INFSMS advertising is informative (Ducoffe 1996)

    CRESMS advertising is credible (Brackett/Carr 2001)

    RELPlease evaluate the product offered: beneficial- not beneficial,needed not needed, essential unessential (Jain/Srinivasan1990)

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    Appendix

    @ REUTTERER/WALTER - SEITE 19

    Formula used to calculate the between group differences in the

    structural:

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    Appendix

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    Results of the Sobel-Test:

    Source: Chin 200

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    Advertising Impact

    Attention Interest Desire Action

    ReceiptRead/

    RecollectionIntention Purchase

    Empirical study and methodology

    84%

    71%

    69%

    24%

    0% 20% 40% 60% 80% 100%

    Receipt

    Read

    Recollection

    Intention/

    Purchase

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    Background & Motivation

    Mobile phone usage in Austria in 2008

    Nine out of ten persons use a mobile phone

    In 2002 -> 69 per cent of households with mobile phone(s)

    In 2008 -> 93 per cent

    Source: Statistik Austria ICT usage 2008@ Heim/Walter/Reutterer- 1

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    Empirical study and methodology

    5-point rating scales were employed (based on previous studies)

    Stone-Geisser test of predictive relevanceADV Q = 0.747; ATT Q = ,831; INT Q = ,377; recommended > 0

    For cross-validated redundancy

    f > .35 = large effect; > .15 = medium; ~ .02 = small; referring to Cohen 1988

    on ADV f

    ENT .371

    INF .037

    IRR .016

    REL .162

    CRE .002

    on ATT f

    ENT .171

    ADV .245

    PERM .073

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    68 per cent male / 32 per cent female

    Age distribution:

    Empirical study and methodology

    1.90%

    4.60%

    7.60%

    14.10%

    17.30%

    11.10% 11.10%

    14.90%

    7.30%

    8.90%

    1.20%

    0%

    2%

    4%

    6%

    8%

    10%

    12%

    14%

    16%

    18%

    20%

    20-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 > 65 k.A.

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