Fulltext01 PDF
Fulltext01 PDF
Fulltext01 PDF
Student
Umeå School of Business and Economics
Therefore, in this thesis paper we identified research gap in form of lack of knowledge,
that prevents both marketers and advertisers from leveraging the potential of mobile
advertising. Designated purpose of this theis is to investigate role of attitudes and flow
experience in mobile advertising. Research question to be answered is: What is the
impact of advertising message personalisation, permission, and flow experience on
attitude towards mobile advertising? And consequently examine what is the effect of
attitude towards mobile advertising and flow experience on purchase intention of
Swedish customers?
However the data analysis did prove flow of experience theory as well as theory of
reasoned action not all aspects did stand. Through our work we found out that flow
experience and attitude towards mobile advertising were supported for purchase
intention. While permission, personalisation, infotainment and incentives were
supported for attitudes towards mobile advertising.
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Acknowledgements
We would like to thank those who gave us the possibility to complete our bachelor
thesis, to our supervisor Galina Biedenbach, to our Swedish friends, who helped with
translating and reviewing survey questionnaire, consequently provided valuable
feedback and to all who were willing to participate in the survey and provide
information of their opinions, it helped us to understand theories in real life. We are
thankful for the support, valuable guidance, knowledge and advice provided to us
throughout the research from our families, friends and academic staff. This all enabled
us to conduct this thesis paper and fulfil our thesis purposes.
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Table of Contents
1. Introduction .......................................................................................................................... 1
1.1 Choice of subject ........................................................................................................... 1
1.2 Problem Background ..................................................................................................... 1
1.3 Research gap ................................................................................................................. 5
1.4 Research question ......................................................................................................... 9
1.5 Purpose ......................................................................................................................... 9
1.6 Scope ........................................................................................................................... 10
2 Scientific methodology ........................................................................................................ 11
2.1 Research Philosophy ................................................................................................... 11
2.2 Research approach ...................................................................................................... 11
2.3 Research design........................................................................................................... 12
2.4 Data collection method ............................................................................................... 12
2.5 Research strategy ........................................................................................................ 13
2.6 Survey methods........................................................................................................... 13
2.7 Time Horizon ............................................................................................................... 14
2.8 Choice of theories ....................................................................................................... 15
2.9 Criticism of sources ..................................................................................................... 16
3 Theoretical framework ........................................................................................................ 17
3.1 Mobile advertising....................................................................................................... 17
3.2 Consumer attitudes towards mobile advertising ........................................................ 20
3.3 Flow theory and experience ........................................................................................ 25
3.4 Attitudes towards mobile advertising and purchase intention .................................. 26
3.5 The Models used ......................................................................................................... 27
3.6 Conceptual model ....................................................................................................... 28
4 Practical Methodology ........................................................................................................ 30
4.1 Operationalization and measurement of variables .................................................... 30
4.2 Designing the questionnaire ....................................................................................... 30
4.3 Sample strategy ........................................................................................................... 32
4.4 Sample size .................................................................................................................. 34
4.5 Data analysis................................................................................................................ 34
4.6 Regression analysis...................................................................................................... 35
4.7 Ethical Considerations ................................................................................................. 35
5 Empirical findings & Data analysis ...................................................................................... 37
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5.1 Demographics ............................................................................................................. 37
5.2 Additional findings ...................................................................................................... 38
5.3 Cronbach’s Alpha and Descriptive Statistics ............................................................... 40
5.4 Regression analysis...................................................................................................... 42
5.4.1 Regression 1 ............................................................................................................ 42
5.5 Regression 2- Attitudes and Flow experience effect on purchase intention. ............... 44
6 Discussion ............................................................................................................................ 46
6.2 Regression 2 - Attitudes and Flow experience effect on purchase intention ............... 47
6.3 Revised conceptual model .......................................................................................... 48
7 Conclusion and Recommendations ..................................................................................... 49
7.1 General Conclusions .................................................................................................... 49
7.2 Theoretical Contribution ............................................................................................. 49
7.3 Practical Implications .................................................................................................. 50
7.4 Truth Criteria ............................................................................................................... 51
7.5 Limitations ................................................................................................................... 52
7.6 Suggestions for future research .................................................................................. 52
8 Reference List ...................................................................................................................... 54
9 Appendix ............................................................................................................................... 1
List of Figures
Figure 1. Loyalty Leather ................................................................... Error! Bookmark not defined.
Figure 2. Marketing Ecosystem.......................................................... Error! Bookmark not defined.
Figure 3. Swedish Mobile market in comparison to other Nordic countries ................................. 4
Figure 4. Relation between mobile advertising and purchase behaviour. ..................................... 9
Figure 5. Mobile vs. Fixed Broadband Subscription. Source ........................................................ 18
Figure 6. Conceptual Model ........................................................................................................ 29
Figure 7. Revised Conceptual Model ........................................................................................... 48
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List of Tables
Table 1 Gender spread in our sample .......................................................................................... 37
Table 2. Age spread in our sample............................................................................................... 37
Table 3. Internet on-the-go usage ............................................................................................... 38
Table 4. Relationship between Income and Internet on-the-go usage........................................ 38
Table 5. Most common mobile advertising form......................................................................... 39
Table 6. Spread of mobile advertising channels in our sample .................................................... 39
Table 7. Consumers' preferred forms of mobile advertising ....................................................... 39
Table 8. Frequency of exposure to mobile advertising ................................................................ 40
Table 9. Spread of Generation C and internet on-the-go characteristic in our sample ............... 40
Table 10. Descriptive Statistics and Cronbach's Alpha................................................................. 41
Table 11. Correlation ................................................................................................................... 42
Table 12. Summary Attitudes towards mobile advertising and predicted items ......................... 43
Table 13. Regression 1: ANNOVA ................................................................................................ 43
Table 14. Regression 1: Coefficients ............................................................................................ 44
Table 15. Summary Flow experience and Purchase Intention ..................................................... 44
Table 16. Regression 2. ANNOVA................................................................................................. 45
Table 17. Regression 2: Coefficients ............................................................................................ 45
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1. Introduction
This chapter introduces and describes the background information about mobile
marketing from the perspective of technological development, its monetary value and
politic actions related to it. To serve the purpose of the thesis, it later introduces the
concept of mobile advertising and appoints the research gap. We also state how this
thesis is going to contribute to the existing knowledge and finally we state the research
question and the purpose.
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media.Performing marketing activities through digital technologies is commonly known
as a digital marketing (Fahy & Jobber, 2012, p. 265). Development of modern
technologies, digitalisation of business, and amount of time individuals spent online, the
activities they engage in, enhanced the replacement of transaction-based marketing with
relationship marketing. Technological development and increasing internet penetration
also intensified replacement of the traditional marketing channels by new media
communication channels that stand for conversation, interaction, participation and co-
creation of meaning (Clark, 2012, p. 434; Fahy & Jobber, 2012, p. 265). Digital
marketing can have various forms; it can be executed in a way of viral marketing,
mobile marketing, interactive television marketing, internet marketing, and social media
marketing. Similarly, rich media messages are increasingly famous mobile advertising
channel among smart phone consumers due to the in-application interactivity via sound,
video and gaming (Fahy & Jobber, 2012, p. 265). We perceive digital marketing as a
more suitable approach to target customers, who engage in online interaction, especially
the youth. Rohm et al., (2009) states that mobile advertising is the best strategy to target
youth customers, because of their high level of interaction with mobile devices.
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et al., 2009). According to the U.S. IAB, IAB Europe and IHS the global mobile
advertising revenue reached $8.7 billion in 2012 compared to $5.3 billion in 2011 (IAB,
2012). In 2013, digital marketing budgets increased by 20%, compared to the prior year
and such an increase in spending accounts for investments in establishing
collaborations, new technologies and new roles to execute a better customer experience.
However, predictions of the growth level vary, based on these numbers Kim & Han
(2014) found mobile marketing as a promising advertising market. Gartner (2014),
research and advisory firm, forecast global mobile advertising spending to grow and
reach $18 billion by 2014 and grow further more until $41 billion by 2017. Growing
trend, compared to previous years, is significant and thus Gartner (2014) is even more
precise in predictions and claims, that due to the fact that mobile applications and
websites develop faster, than the advertisers requests on ads space on mobile device
screens, the growth in mobile advertising spending will slow down over the upcoming
years. Now when we covered the essential issues of mobile marketing in general, we
will focus on perceived utilization of the internet, by EU. We strengthen the importance
of the internet, in conjunction with mobile marketing due to the fact that mobile
advertising is mainly performed via mobile Internet.
1.2.4 Europe Union Response to Fast Growth of IT Industry and its relation to Mobile
Marketing
EU has been experiencing recession since 2007 that has marked it with a lasting
contraction in GDP and tremendously high unemployment rate, noteworthy among the
youth. Accounting for 23.5% in general and thus representing a new historical
maximum in February 2013. In other words 23.5% represents 5.7 million young people
across EU (European Commission, 2013b). EU addresses unemployed youth between
18 - 24 years age as a potential ‘‘lost generation’’. At the same time taking in
consideration the fast growth of IT industry that will be lacking 900 000 workers and/or
employees by 2015. Therefore, in order to avoid tremendous social and economic costs,
EU identifies technological progress, including digitization and its adoption by society
as a new prospective source of growth and employment (European Commission,
2013b). This proposition is supported by increasing the general trend in online usage,
shopping, and usage of eGovernment services (European Commission, 2013b). In 2010
EU Commission adopted the Digital Agenda for Europe plan, a document identifying
101 specific policies addressing actions needed to be implemented in order to meet
goals in the Digital Single Market, trust and security, fast and ultra-fast internet access
and others. Digital Agenda for Europe introduced key targets from which we would like
to highlight following: target 1a. The entire EU to be covered by broadband by 2103,
target 2a. 50% of the population to buy online by 2015 and target 2b. 20% of the
population to buy online cross-border by 2015. Based on preview literature and those
propositions we assume that m-commerce and thus mobile marketing is going to
undergo an exponential growth. GSMA (2011) recognizes those targets and agrees that
single digit market based on a fast internet connection, and interoperable applications
will enhance the economic growth, innovation, and improve performance of citizens
and business on a daily basis. Following paragraph will focus on current trends in
Scandinavian countries.
120000
100 000
80 000
Tbyte
60 000
40 000
20000
0
2006 2007 2008 2009 2010 2011
Figure 1. Swedish Mobile market in comparison to other Nordic countries. Source: The Swedish Post and
Telecom Authority, 2012
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At the beginning of the internet era, many firms did not understand their customers’
needs nor their expectation from the online environment. Unfortunately, many of them
persist to struggle with how to effectively communicate and sell products online
(Constantinides, 2004). The Vast majority of mobile advertising happen via mobile
Web (mobithinking, 2012) Taking the latter into consideration, we can see a similar
pattern in mobile marketing. For example EU27 has experienced a substantial increase
in Smartphone penetration over the past few years. Popularity of accessing the Internet
via a Smartphone grew by 20% between the years 2008 and 2012 (European
Commission, 2013a). Yet the adoption of e-commerce and m-commerce among SME is
still a niche activity (European Commission, 2013a). Such trend applies overall around
EU27, even in the most rapidly adopting countries like Sweden and Denmark, where
only a quarter of SMEs use internet as a distribution channel. Based on this adaptation
trend we assume even a smaller proportion of SMEs use mobile as an advertising and
communication channel to their customers (European Commission, 2013a). Therefore,
writing a thesis about mobile marketing, that is experiencing growth, can be considered
of a good timing, reflecting upon very current events and changes in society and the
economy. In the next section we will describe trends and development in Sweden. The
aim of this thesis is to examine how the flow experience influences the attitude towards
mobile advertising and how it affects the consumer purchase intention.
To the best of our knowledge, no studies have been conducted regarding the flow
experience and its effects towards consumer attitudes in the past decade. Since the topic
of our research spreads across various fields such as human-computer interaction,
marketing and psychological theories we have tried to identify research gaps in each
one of them and show their interconnectivity. Further, we are going to state the purpose
of our research.
1.3.2 Cultural attributes and its impact on attitudes towards mobile advertising
Investigation of cross cultural attributes influencing acceptance and attitudes towards
mobile advertising is in its infancy as well, accounting mainly for comparison ,
significantly different cultures, e.g. Japan and Austria (Liu et al., 2012) or USA and
Pakistan (Sultan et al., 2009). In general, studies and market research carried out in
mobile marketing usually focus on high income countries, for example USA, European
big five economies (France, Germany, Italy, Spain, UK), BRIC countries (Nielsen,
2010) extended of Japan, South Korea (IHS, 2014). Extensive research has been
conducted in PR China and Taiwan China. Regardless, later findings the highest smart-
phone penetration can be observed in the following ten countries, aligned in descending
order: United Arab Emirates, South Korea, Saudi Arabia, Singapore, Norway, Australia,
Sweden, Hong Kong, UK and Denmark, leaving the USA at the 13th rank (Fox, 2013;
Think with Google, 2013). We assume it is because Asia Pacific and North America
account for almost two-thirds of global mobile traffic (European Commission 2013b).
Our assumption is further supported by IHS report, stating mobile advertising spending
and consumer spending on digital apps, games and movies is high and remain its
increasing trend in those regions (IHS, 2014). Cultural background and its influence on
customers’ attitudes and perception towards an online environment have been
investigated by Mazaheri et al., (2013). Everdingen & Waarts (2003) examined the
effect of national culture on adoption of innovation among European countries based on
Hofstede (2001) and Hall (1976) national culture classification. In their study, they
described Sweden as a low context, individualistic, monochromic and famine culture
that, because of those characteristics has a high level of innovation adoption and
penetration (Everdingen&Waarts, 2003).We assume the attributes of the national
culture determine high smart phone and broadband penetration in Sweden. Yet, as
Sultan et al., (2009), suggest further research should be conducted in order to explore
cultural differences and their influence on the mobile market acceptance (Sultan et al.,
2009).
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messages usefulness and attitude toward mobile advertising. Recently, two models have
been built by Kim & Han (2014) and by Ünal et al., (2012) who combine Ducoffe’s
Advertising value framework (1995), Theory of Reasoned Action by Fishbein and
Ajzen (1975) with Csikszentmihalyi theory of flow (1975) in relation to mobile
advertising and examined its interconnectivity. These theories will be described more
specifically in following section. Ünal demonstrate in his study that advertising sends
with permission and fulfilling advertising value attributes are positively perceived. Kim
& Han (2014) agree that in a case, when customers perceive mobile advertising useful,
relevant and valuable, they are more likely to purchase products or services. As it has
been mentioned earlier, consumers generally have negative attitudes towards mobile
advertising (Tsang et al., 2004). Thus, knowing which attributes of online advertising
message could help to build a positive attitude and consequently help to enhance
purchase intention and revisit of the website or App would be appreciated by marketers.
Ünal et al., (2011) suggest further research in terms of personality, and lifestyles in
order to develop more suitable messages for niche groups and thus limit irritation.
Based on reviewing industry reports we believe those topics deserve more attention,
especially now when good user interface is considered as one of the significant
competitive advantages (Hausman &Seipke, 2007).
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researches Koufaris, (2002); Korzaar, (2003); Hoffman & Novak,(1996) enriched
Csikszentmihalyi flow concept and found that people can experience a flow when
engaging with technological devices for example browsing the Internet, playing online
games, watching mobile TV and others. Such experience is known as flow during
consumer navigation of the Web either fixed or mobile (Novak et al., 2000; Huang,
2006). Huang (2006) includes S-O-R theory in his research; demonstrate all four
components of flow: time distortion, enjoyment, telepresence and concentration and
finds that users experiencing deeper flow experience are much more likely to purchase
intention (Huang, 2011). However, he admits that the findings are inconsistent (Huang,
2011). Regardless the fact of increasing adoption of mobile advertising, the only article
that introduces a relation between flow experience and mobile advertising is written by
Kim & Han (2014), who state that sophisticated mobile advertising displayed at 4G
smart phones, can create a flow experience for the consumer while browsing the mobile
Web, or application advertisements on a smart phone. One possible explanation for the
lack of contemporary research regarding the flow experience in online environment
might be lack of precise definition as suggested by Novak et al., (2000). The latter has
been addressed by the author of theory Csikszentmihalyi himself (1975). As Novak et
al., (2000) suggested level of skills and challenge should be in balance to enhance
customer usage of the Web. Regardless different approach, frameworks and components
of flow researches have been studying they all agree that the flow is captivating, and
thus people develop positive attitudes when experiencing flow, that can even lead to an
addiction.
As Anders Boerde (IAB Stockholm, 2013b) explain customers are ready and willing to
engage with brands and companies in their "mobile life". Yet the marketers are a bit
more reluctant, they are not sure about customer response, willingness to engage in
mobile communication due to lack in confidence how to handle multi-channel
communication and mobile marketing (IAB, 2013b). The current situation can be
described as a chain of actions. Marketing agencies are lacking understanding and
knowledge about digital forms, or advertising; therefore marketers are reluctant to buy
digital ads space due to the lack of unity and synergy among the agencies (finpro,
2014). Thus, in our research we wish to address those concerns and testify
demographics, usage of smart phone among customers in Umeå, Sweden. Further, we
are going to testify customers’ perception of Web design. We believe our research can
lighten up some of the marketers and advertisers doubts regarding how to design their
multi-channel marketing communication, design mobile website and mobile
8
application. In this study we are going to investigate the impact of flow on consumer
attitudes towards mobile advertising and how does flow affect consumer purchase
intentions.
65
60
55
50
Percentage (%)
45
40
35
30
25
20
15
10
5
0
2011 2012 2013
Years
Smartphone Penetration Online Purchase Behavior via Smartphone
Figure 2. Relation between mobile advertising and purchase behaviour. Source: Google, Our Mobile
Planet, 2013
1.5 Purpose
The purpose of this thesis is to investigate the impact of message content and flow
experience on attitude towards mobile advertising, as well as to investigate what effects
do attitudes toward mobile advertising have on customers purchase intention.
Customers’ attitudes towards mobile advertising and its interrelation with consumer
purchase intentions. Most importantly, we specifically develop a comprehensive model
combining elements from several models, diversifying over advertising value,
atmospheric cues, S-O-R theory, and theory of flow. Our conceptual model will help us
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to measure the effects of our predicted factors, such as credibility, infotainment, and
irritation as a component of message content, personalisation, and permission on
attitudes towards mobile advertising. Later we will test flow experience and whether it
affects attitudes towards mobile advertising and whether flow experience can enhance
consumer purchase intention.
1.6 Scope
In this thesis, we are going to focus on how advertising message content (its credibility,
informativeness, entertainment, and irritation) affects the attitudes towards mobile
advertising. Based on data from Google, Our Mobile Planet (2013) that in figure 2
describe the increase in smart phone penetration yet diminishing purchasing intention
via smart phone, this pattern is significant since 2011. Taking in consideration the rapid
application of mobile advertising, we decided to investigate the potential causes. This
intention led us to consider advertising value model developed by Ducoffe (1995) later
on enriched of personalisation and permission factors, by Georgiadis&Manitsaris
(2005); Jayawardhena et al., (2009); Ünal et al., (2011). Due to the tremendous
technological development and increasing mobile marketing spending, we included
flow experience as a significant variable affecting attitudes towards mobile advertising,
such a decision is based on Kim & Han (2014). The effect of attitudes towards mobile
advertising and the effect of flow experience to customers’ purchase intention would
help us to identify the significant attributes effecting purchase intention of customers.
However Sweden has one of the highest smart phone penetration among EU27
(European Commission, 2013a),the purchase behaviour and purchase intention are low
Therefore, we developed theoretical framework on academic articles focusing on
attitudes towards mobile advertising, industrial reports describing trends in mobile
marketing adoption, and spending. We considered the effect of culture on attitudes.
After taking in consideration limited research about mobile marketing trends in Sweden
we selected current research paper and reports.
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2 Scientific methodology
In this section of our thesis, we discuss about the selection of suitable research
philosophy, methodology, methods and tools that enabled us to further investigate
pronounced hypotheses. At the end, we stipulate the criticism of these sources.
11
collected empirical data and look for different patterns from this data (Saunders et al.,
2012, p.146). Thus, theory building and generation are the main aim of inductive
approach (Saunders et al., 2012, pp.144-146). The Abductive approach uses a
combination of both induction and deduction approaches in order to explore a
phenomenon, later build new theories or modify existing theories (Saunders et al., 2012,
pp.147-148). The deductive research approach based on making hypotheses on existing
theories; express relevant variables and deducing how to examine the variables by
hypothesis testing (Saunders et al., 2012, pp.144-145). Therefore the deductive
approach is the most suitable one for our study and it allows us to draw conclusions
from the results and examine whether or not there are evidences to support the
hypotheses or possible modification of the theory (Saunders et al., 2012, pp. 145-146).
The deductive approach is best fitted with our selected philosophy as well as the nature
of our research for the main purpose of our thesis is to testify previous theories rather
than inventing new ones.
Quantitative and qualitative are the main form of research design methods (Saunders et
al., 2012, p.161). The quantitative method implies the collection of numerical data and
analyse the relationships between the variables by using standardized statistical
techniques (Saunders et al., 2012, pp.162-163). On the other hand, in qualitative
research uses non standardized methods to collect data and non-probability sampling
techniques to analysis the collected data deeply (Saunders et al., 2012, p.162). The main
aim of the collect data from our research question we decided that a quantitative method
is the most appropriate research method for observing the consumer attitudes and flow
experience effects on mobile marketing.
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primary data is that they are unique, tailored-made for specific research and
environment at the time. “Secondary data are data collected for any purpose other than
the problem at hand (Malhotra & Birks, 2007)”. Secondary data can be easily obtained
from the internet, textbooks and research articles (Saunders et al., 2012, pp. 314-316).
Furthermore, secondary data are relatively inexpensive and quickly obtained in
comparison to the primary data (Saunders et al., 2012, pp. 318-320). But in comparison
to primary data, trustworthiness is low in secondary data due to the absence of the
researcher in the questionnaire design and data collection process (Bryman & Bell,
2011, p. 321). Furthermore, secondary data is specific to a particular research and those
data may not exactly match with the requirements of another research (Saunders et al.,
2012, p. 319). Considering those options, we have decided to use primary data in this
study. Primary data will also help us to obtain new information, based on uniqueness of
Swedish environment. Collection of primary data, examines the proposed conceptual
model and thus we provide theoretical contributions at the end of our thesis work.
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advantages (Bryman & Bell, 2012, p. 233). Bryman & Bell (2012, p. 60) describes
survey as a ‘‘combination of a cross-sectional design and data collection technique
either questionnaire or structured interview on more than one case and at a single point
of time’’. In order to administer structured interview correctly, researchers should be
trained in wording (Bryman & Bell, 2012, p.217). According to Saunders et al., (2012,
p. 420), structured interview requires, interviewers to carefully select sample, arrange a
schedule of interviews and deal personally with respondents. It can be executed via
personal meeting or via telephone conversation (Saunders et al., 2012, p.420). Another
alternative of executing questionnaire is self-completed questionnaire that allows the
researcher to collect quantitative data, which can be studied quantitatively by means of
descriptive statistics and hypothesis testing (Saunders et al., 2012, pp.176-178). Self-
completed survey requires relatively lower cost and it saves time in comparison to
telephone or structured interviews (Saunders et al., 2012, p.420). Of course pitfalls of
self-completed questionnaire can be listed as follows: missing interviewer to understand
difficult questions, that can lead respondent to skip some questions, respondents might
to skip not salient questions, respondents can read the whole questionnaire before
answering the first question and thus develop an attitude towards it (Bryman & Bell,
2012, p. 234). While the pitfalls of the structured-interview were identified as follow:
difficulty to arrange schedules, longer preparation in advance, and interviewer can ask
different questions in different order (Bryman & Bell, 2012, p. 234). Taking pitfalls of
both choices in consideration, we have selected self-administered questionnaire In order
to minimize the bias we decided to use those two survey distribution methods internet-
based questionnaire and manual distribution. As Bryman & Bell (2012, p. 452) states,
self-administered questionnaires tend to be composed of closed questions. In open
questions respondents pronounce their opinions, while in close questions, respondents
are given opportunity to choose from predetermined alternatives of answers. As Bryman
& Bell (2012, p.249) states, advantages for closed questions, they are easy to processed.
Web-based questionnaire saves money and it can be sent out to thousands of people at
the same time (Gillham, 2000). In addition to that, respondents have the flexibility to
answer the survey at the most convenient time for them. Due to less pressure
respondents are exposed to, we can expect unbiased responses (Bryman & Bell, 2005).
Gillham (2000) brings up the fact that the respondents are anonymous in a web-based
self-administered survey and this aid to collect unbiased survey responses. On the other
hand manual delivery method increases the participation of the respondents which help
to collect enough samples in a limited period of time (Saunders et al., 2012, p.421).
Another method of questionnaire delivery is via post. Yet, as Saunders et al., (2012)
mention, it has a very low rate of return only 30 - 50%, it is time consuming 4 - 8 weeks
from posting, and it is costly (Saunders et al., 2012, p.421). After considering all
alternatives, time horizon and financial means, we agreed to apply both web-based and
manual distribution methods rather than postal delivery, distribution methods (Saunders
et al., 2012, p.421). We believe that the chosen strategy suits the research question the
most and it will enable us to fully describe the relationship between demographics and
smart-phone usage.
14
survey or case study (Saunders et al., 2009, p. 155). Yet when conducting research over
a longer period of time, comparing stages over an extended period of time, research
tends to apply the longitudinal time horizon approach. Taking in consideration the fact
that mobile advertising is in fact a new marketing strategy, growing rapidly from 2007,
and our research is cross-sectional, meaning that it is a snapshot of the current situation
that does not examine change over any specific time period (Saunders et al., 2009, p.
155). Our decision of using the survey strategy of collecting data also fitted the cross
sectional method as it is a common data collection method when doing cross sectional
research (Saunders et al., 2009, p. 155). In our research strategy, we do not require to
obtain control over respondents during the data collection since this cross sectional
study happed in the present time horizon (Saunders et al., 2012, p.190)
Ducoffe (1995) describes the factors of message content and their effects on attitudes
while Csikszentmihalyi (1975) defines the experience of feelings and emotions
customer goes through when involved in certain activities. An individual can lose a
sense of the environment that surrounds him, track of time, and be totally immersed in
the certain activity. We find his theory highly relevant because we believe environment
can be adjusted and created by advertisers in order to deliver the best flow
experience.His flow theory was developed by observing artists painting picture. Yet
researchers Novak&Hoffman (1996), Hausman& Siekpe (2009)combined it with
human-computer interaction theory and specific atmospheric cues described by Eroglu
et al., (2011), Constantidines (2004), Zhang et al, (1999). Aforementioned theories
proved that customers undergoing the flow experience in the online environment intend
to buy more. Since majority of mobile marketing takes place on the mobile Web, we
apply those theories to investigate their relevance for mobile online environment.
Therefore, we apply those theories in our research about customers in Umeå, Sweden.
By doing so, we intend to examine validity of those theories in Sweden as a different
cultural background.
15
2.9 Criticism of sources
As Saunders et al., describe primary data are such researcher collects himself/herself
and secondary data describes as those collected already for purpose of another research
(2012). Primary data are preferable for their accuracy, since their collection is tailored
to the specific purpose yet secondary data are easily collected at lower costs (Saunders
et al., 2012). For the purpose of our thesis we applied both types of data. Primary
sources consist of self-administrated questionnaire and our secondary date consist
primarily of academic research articles, scientific articles, conference papers, and
industry annual reports.
When conducting self-administered questionnaire we based our desing of survey on
previous studies. List of all applied questions and their origin can be see in appendix 1.
When searching for secondary referenes we selected following criterias: high-quality,
credibility, time scope relevance, prefereable articles from 21th century and
geographical relevance of a sample. In order to guarantee selection of such data we have
assembled scientific articles from EBSCO (Business Source Premier), Elsevier
Publisher (www.elsevier.com), EMERALD Group Publishing
(www.emeraldinsight.com) and Google Scholar (www.scholar.google.com). We believe
such a criteria helped us to select the most relevant articles of all. According to
Saunders et al., (2012, p. 84), such articles are suitable, because they are written and
evaluated by experts. Furthermore, we collected information via references in the
refereed academic articles. Before applying finding of academic articles to our research
we also evaluated good quality of research and strength of theory (Saunders et al.,
2012). To eliminate misconception, misrepresentation, and bias, we collected
information from original theories of Ducoffe (1995, 1996), Csikszentmihalyi (1975),
Hoffman & Novak (1996) as well. We decided so due to the fact that possible bias can
be concluded when applying findnings from secondary references of original theories.
Thus as Saudners et al., (2012) suggest original articles can be more reliable and of high
credibility, because we as researchers are the only one representing those data and
theories in our thesis for the first time.
When searching for relevant articles in databases, we have applied following key words:
atmospheric cues in mobile, attitudes towards mobile marketing, attitudes towards
mobile advertising, flow experience and relation to purchase intention, customer
purchase intention in m-commerce, personalisation of advertisement, permission based
marketing. When selecting articles we enhanced the credibility by selecting those that
were citied in another research papers. Among all secondary data we also applied
annual reports of marketing industry and market research reports. Magazine articles and
in case of those we are cautious of the fact that those sources might be affected by
subjectivity (Saunders et al., 2012).
Chapters two and four, reflecting upon scientific and practical research methods are
developed upon books from Bryman & Bell (2012) and Saunders et al., (2009; 2012)
and Shiu et al., (2009). Since their authors have dedicated their careers to research about
research methods either within social studies or business administration, we assume
they are of a high credibility and relevance.
16
3 Theoretical framework
This chapter provides more information about previous industrial development,
research on consumer attitudes toward mobile advertising. It highlights the concept of
flow theory and its relevance to mobile marketing attitudes and factors that influence
consumer purchase intention. Furthermore an explanation of the model to be used in
the research is provided and state relevant hypothesis.
However, new and more technically advanced forms of mobile advertising occurred,
the most commonly used form of mobile advertising is still SMS (Chen &Hsieh, 2011).
For the purpose of this thesis, we will list and mention such a mobile advertising form
that are performed on smart-phones and are currently gaining popularity among
advertisers and marketers.
17
16
14
Broadband Penetration (%) 12
10
8
6
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years
Mobile Broadband Subscription Fixed Broadband Subscription
Figure 3. Mobile vs. Fixed Broadband Subscription. Source:World Bank Group, 2014
Consequently, the users have the possibility to focus on most essential information they
are looking for. This is a perfect match with the modern busy lifestyles of the
consumers. Thus, the increased adaptation of Smartphone opens up new opportunities in
mobile advertising (Persaud&Azhar, 2012). A decade ago Tsang et al. (2004) concluded
in their research that mobile advertising is for sure going to be a future trend. After
extensive study of academic articles, industry studies and white papers we can say that
their prediction was indeed very accurate.
Display banner
Mobile Marketing Association(2011) defines banner as ‘‘still image intended for use in
mass-market campaigns where the goal is a good user experience across all mobile
phone models, network technologies and data bandwidths. All Mobile Web Banner Ads
must be clickable by the end user and may be placed in any location on a Mobile Web
site. A Mobile Web Banner Ad may be followed by a Text Tagline Ad to emphasize the
clickable character of the ad unit.’’Also known as Ad banner, it is a form of
advertisement, that can be placed at the bottom or at the top or at the right or left side of
display, in an application, in a game or when browsing the Internet. Its forms can vary
from static JPEG and GIF format to rich media mobile video built in banner. It is
popular for its personalisation and geo-location targeting. According to Gartner (2014)
mobile displayed ads accounts for the widely used mobile advertising form and will
continue to keep its prime over the forecasted period between years 2015 - 2017.
However after this period it is predicted that mobile video ads will surpass due to the
increasing usage and adoption of tablets (Gartner, 2014).
18
Mobile Video advertisement
Digital motion advertisement that appears before, in the middle or after video in a
digital video content player. IAB (2014) states that mobile video on mobile devices is
the fastest growing category in mobile advertising. Appealing to all human senses it
overcomes the obstacle of limited screen. Tablet became the in-home device for
consumption of video and its usage is almost comparable to TV in prime time (IAB,
2014). More specific form of mobile video ad is pre-roll video ad, that are played before
a content customer has chosen to view and viewers anticipate its presence. Therefore the
price of it is higher than in-banner video placement. In-banner placement has the
advantage of pushing down the content to the full screen. Its length should be 15
seconds and less, in order to avoid driving customer away. IAB (2014) further states
that in-app it is more effective, since the customer downloaded app with genuine
interest.
QR code
It is an abbreviation form of Quick Response Code. QR code, allows consumers to scan
digitally created code representing a web address and gain more knowledge about a
product or service rather than information being pushed towards consumers
(Kamphuis&Ramnarain, 2012, p.3). It is one of the most effective digital pull marketing
strategies, offering customers possibility to engage in marketing activities, rather than
invade their privacy. Habits of using older technologies and lack of familiarity with QR
codes represent barriers in engagement and scanning of QR codes (Watson et al., 2013).
Even though it is still not very famous form of advertising in most part of the world, it
definitely is an emerging trend in mobile marketing (Beqrious, 2014). As Watson et al.
(2013) conclude that the QR codes popularity lies in customers empowerment and
feeling of control, compared to SMS that if not delivered upon permission can be
viewed as intrusive.
Most of the studies have been conducted mainly about SMS as a form of mobile
advertising. Therefore, we would like to expand the concept as a part of demographics,
and examine which form of mobile advertising customers are most familiar with.
19
analytics, is one of the most common activities performed on mobile devices by both
male and female in Sweden. The popularity of games is increasing as well as popularity
of viewing the video. Therefore Gartner (2014), IAB & IHS (2014) predictions on an
increasing usability of video ads is relevant.
In-Apps advertisement
As for the year 2014 there were over 800 000 Smartphone applications available at the
App Store and Google Play a piece (mobithinking, 2014). The consumers’ preference
for mobile applications account for 89% of media time in mobile and 11% of time on
the mobile web (Bosomworth, 2014). In 2010 Apple Inc. realized the possibility to
monetize the growing popularity of applications, and at that time current CEO Steve
Jobs, introduced iAd (Boulton, 2010). Bosomworth (2014) therefore suggests that
marketers will focus more on Apps as their main mobile advertising channel in near
future. However marketers might face the obstacle of apps overload and seek ways to
overcome it the alternative solution is to include advertisement in the application or
focus on responsive design, that allows customers to view website in a format suitable
and designed for various operation systems.
Location-aware advertisement
Usually executed in the form of banner (IAB, 2012). Target consumer based on his/her
profile, previous search behaviour or her timely inquiry in search engines. Geo-location
provides the opportunity to create targeted advertisements by serving relevant and time
bound offers dependent on whether a consumer is located near to a branch of a company
(Kamphuis&Ramnarain, 2012, p.2). Such a form of mobile advertising is considered to
be the most effective form, because it serves customers only relevant offers, based on
personal preferences and permission, therefore removing initial obstacles in acceptance
and thus leading towards high return on investment. However INMA (2014) states
location-based advertisement should be a core for advertisers, marketers and advertisers
are not sure whether consumers perceive location-based advertising as a spam or as a
good deal. Furthermore, mobile devices are a highly personal medium that offers high
level of interaction anytime and anywhere, thus giving marketers the opportunity to
reach customers outside of the physical confines of home or office (Rohm et al., 2012).
Mobility and the opportunity to reach customers anywhere, anytime is what is attractive
about location-based marketing.
20
described as an antecedent of Aad (MacKenzie& Lutz, 1989, p. 48; Ducoffe 1995).
Attitudes have an irreplaceable place in advertising, due to the fact that advertising
message relevance and/or personalisation, context and utility are vital to consumers’
acceptance of advertising and enhance consumer purchase intention (Watson, et al.,
2013). Recent and contemporary studies about attitudes towards mobile advertising
based their conceptual framework on Ducoffe advertising value (1995). Ducoffe argued
that advertising is perceived in a proportion to the value it creates for consumers
(Ducoffe 1995). Dimensions of advertising value are reflected in the conceptual
advertising model (Ducoffe, 1995) in a form of three variables: informativeness,
irritation and entertainment. His conceptual model investigated whether those variables
help to form a value of the advertisement, improve customer responses to the
advertising messages and consequently to marketers and advertisers (Ducoffe, 1995). In
his conceptual model he focused on whether what is said (informativeness) and how it
is said (entertainment) contribute significantly to the advertising value (Ducoffe, 1995).
Ducoffe states that informativeness influence on consumer satisfaction and their buying
decisions, it is the main reason why customers accept advertising as such and
consequently influence consumer satisfaction and their buying decisions (Ducoffe,
1996). Techniques that offend or annoy customers will be perceived as irritating and
thus reduces advertising effectiveness, limit customers’ responses and create negative
attitudes towards advertising message (Ducoffe, 1995). Entertainment in advertising,
according to Ducoffe, serves the need of escapism and emotional release (Ducoffe,
1995). The results of his research state that entertainment of advertisement has a greater
value over informativeness while irritation has a significantly negative effect (Ducoffe,
1995). Irritation in an advertisement decreases advertising effectiveness and when
advertising applies annoying techniques, customers perceive the advertisement as an
unfavourable influence (Ducoffe, 1995). Ducoffe’s model is applicable for online
advertising as well, and proves that variables of advertising value stand and have the
same impact as in more traditional marketing channels and concluded that advertisers
should communicate in the most informative way they are capable of in the most
entertaining manner possible (Ducoffe, 1996). Based upon Ducoffe (1995, 1996)
findings consequential research regarding attitudes towards mobile advertising has been
conducted over the scope of the past ten years by Tsang et al., (2004); Ünal et al.,
(2011); Liu et al., (2012); Watson et al., (2013); and Kim & Han, (2014).
21
value regardless the cultural background. Consequently, when the message is sent from
their familiar marketers, customers believe that the advertising message is trustworthy
and they focus more on that message content rather than unfamiliar marketers.
Entertaining advertising message usually reflects upon customers’ needs for diversion,
aesthetic enjoyment or emotional release (Kim & Han, 2014). If message satisfies
consumers’ needs for escapism, gratification and pleasure, than they concentrate more
on the messages and do not miss an opportunity regarding product information
(Hoffman & Novak, 1996; Liu et al., 2012; Kim & Han, 2014). According to Tsang et
al., (2004) entertainment is the most outstanding attribute influencing consumer
attitudes towards mobile advertising. Entertaining dimension of advertising message
enhances to build loyalty and expresses consumers’ sense of pleasure related to
messages (Ünal et al., 2011). To achieve the latter, it is important for a message to be
short and entertaining (Ünal et al., 2011). In this respect, marketers include interactive
games, music, and visual applications in many of their mobile advertising forms (Ünal
et al., 2011). There is a desire of playing a game in human nature, particularly in
children and youth (Ünal et al., 2011). Therefore, younger consumers are more willing
to engage the advertising messages comprising entertaining games (Ünal et al., 2011).
Pollay& Mittal (1993), reveals that hedonic pleasure had positive effects on attitudes
towards advertisements. Enjoyable advertisement can catch the attention of a recipient
and has a positive effect on consumer attitudes (Ducoffe, 1995; Liu et al., 2012). If the
website provides fun, recreational and experiential use, than customer receive a positive
online experience of the Web (Novak, et al., 2000). Information and entertainment
values are usually entwined with each other in the modern technological savvy world
(Liu et al., 2012). In this study, informativeness and entertainment are also integrated
into a single construct called infotainment for simplifying the analysing process.
Irritation can occur when advertisers do not take the individual segment groups’ needs
into consideration and rather send large scale of mobile advertising messages for its low
cost (Ünal et al., 2011). It can be further described as a degree to which advertising
message cause consumers to feel irritated or perceive Web as a mess (Kim & Han,
2014). The interactivity of an Internet advertisement may be provided an overwhelming
amount of information (Liu et al., 2012). Companies sometimes broadcast their
22
advertisements via economical forms of mobile advertising channels without
considering personal needs and interests of the receivers. As a result, most of the
receivers of those irrelevant messages are disturbed due to the improper marketing
campaigns (Ünal et al., 2012). Scale of irritation to some extended depend on cultural
background, because as Liu et al., (2012) examined consumer attitudes towards mobile
advertising across Austrian and Japanese cultures vary. In low-context and
individualistic cultures tend to perceive advertising as irritating, misleading and
promoting materialism. In order to get rid of this problem, most of the web browsers
provide an option to skip unwanted advertisements (Kim & Han, 2014).
3.2.1 Personalisation
Georgiadis&Manitsaris (2005) states that Web users pose various skills and abilities,
and continue with the definition of personalisation. Personalisation is probably the
biggest advantage of mobile advertising is to reach customers anytime and anywhere,
including high rates of personalisation, interactivity and low costs (Jayawardhena et al.,
2009). Customers since the 70’s have a negative attitude towards advertising messages
and found them intrusive and irritating (Ducoffe 1995). Ducoffe (1995) later claimed
that if advertising message is overwhelming in information, customer feels irritated. Yet
such a status have been slowly changing due to the fact that customers prefer to receive
mobile advertising messages that are tailored to their interests, lifestyles, previous
searching inputs and thus to be personalized (Kim & Han, 2014). Due to the rapid
development of technologies, broadband connectivity and smart phone penetration,
mobile advertising are a growing trend that enables advertisers to reach customers with
personalized content (Chen & Hsieh, 2011). It provides advertisers with the option to
create a positive experience and to improve their relationship with customer (Ünal et al.,
2011). Personalisation can decrease irritation caused by irrelevant content, as well as
negative attitudes towards advertising (Kim & Han, 2014). Mobile advertising can be
easily personalized based on time, geographical location and customer priorities. To
leverage personalisation to the full, companies should collect data about their customers
and analyse them appropriately, thus target individuals with a tailored mobile
advertising message. Such an action would decrease irritation and thus improve
attitudes towards advertisers and advertising (Ünal et al., 2012). As Kim & Han (2014)
state further more customers are receptive to advertising that is personalized and
23
relevant to their lifestyles. Thus, as aforementioned advertisers should follow customer
profile, consumption patterns and needs (Kim & Han, 2014). If personalisation would
be applied together with permission advertisers and marketers would remove perceived
risk and thus enhanced positive attitudes towards mobile advertising (Kim & Han,
2014). Therefore, we propose:
3.2.2 Permission
Scornavacca&Scornavacca(2004, p. 133) describe permission as the “dynamic
boundary produced by the combination of one’s personal preferences”. Advertising
messages that are sent only to customers who have unambiguously expressed their
willingness to receive such messages is called permission-based advertising (Tsang et
al., 2004). There is an increasing trend towards unauthorized SMS advertisements
(Barwise et al., 2012, p.15). With permission-based advertising, consumers gives the
permission to marketers to receive information and advertising messages only about
relevant products and services they have chosen beforehand, thus they experience less
irritation (Tsang et al., 2004). Since consumers participate in marketing activities
voluntarily, 30% higher response rate can be observed (Ünal et al., 2011). Ünal et al.,
(2011) further proves that permission has a positive effect on attitudes towards mobile
advertising. Therefore, marketers send only the permitted products and services related
mobile advertising messages to their consumers. In addition to that, it helps to reduce
the risk of exploiting personal information of the consumers (Ünal et al., 2012). The
study conducted by Ünal et al.,(2011) reviles that explicit permission is essential in
mobile advertising and distribution of advertising messages without consumer
permission leads to increase in irritation among consumers. As a result, consumers tend
to delete annoying messages, omit content of advertising message without reading and
develop negative attitudes towards advertisers and advertising. According to the
research findings of Jayawardhenaet al.,(2009), trust in marketer is the most important
determinant of permission based mobile marketing.Thus, ‘‘mobile marketers should
focus on building a strong, positive media presence and image, and thereby influence
consumers’ likelihood of giving permission to mobile based marketing’’
(Jayawardhenaet al., 2009).In many countries, the legal system bid prior permission
from the customers, before the mobile advertising messages delivered to the consumers
(Ünal et al., 2011; EC 2013). Especially in Europe, marketers are required to seek
consumer approval before execute any mobile marketing campaign (Kautonenet al.,
2007). In short, explicit permission from the receivers becomes obligatory requirement
in mobile marketing (Kautonenet al., 2007). Consumers want to have control over their
mobile device that they perceive to be mainly for personal communication usage
(Watson et al., 2013). Based on common experience with spam in an email, consumers
perceived risk and anticipate to be stalled with spam in their smartphone. If permission
is obtained the perceived risk is minimized (Jayawardhena et al., 2009; Ünal et al.,
2012; Watson et al., 2013).Based on arguments stated above, we propose following
hypothesis in our study:
24
3.3 Flow theory and experience
In the early 70’s Csikszentmihalyi (1975) developed the concept of flow experience and
has been additionally contributing to the research over the past 20 years (Novak et
al.,2000). Over the time flow has become a well-established term in intrinsic motivation
field, educational sector and psychology (Csikszentmihalyi, 1988). The inception of
flow is associated with experimental observations of male artists. Concluding that the
enjoyment and rewards came directly from the engaging in the activity, painting, itself.
Maslow, who has been involved in creating conceptual ground bases for future research
regarding flow and experience, describe the intention of engaging in activity as a need
for self-actualization, in order to explore one’s potentials (Csikszentmihalyi, 1988).
Csikszentmihalyi (1988), suggests in his further research that such an engagement is
driven by the need of enjoyment, common for engagement in play and common to
humans and to rats and monkeys as well (Csikszentmihalyi, 1988). Such a hypothesis is
based on arousal concept, proving that even monkeys and rats engaged in activities
driven by curiosity, novelty, and competent drivers (Csikszentmihalyi, 1988).
25
enough challenge to arouse, but not more because it may create frustration (Novak et
al., 2000). Taking in consideration Ducoffe’s model, when the customer perceives an
advertising message to be valuable, they become more focused on it and thus experience
flow (Kim & Han; 2014). Therefore, we propose the following hypothesis:
H4: Flow experience of mobile advertisements has a positive effect on attitudes towards
mobile advertisements
People engage in computer-human interaction because they believe it will improve their
performance and improve their lives (Hausman &Siepke, 2009). Further, they
incorporate flow theory in their model as a predictor of purchase intention and argue
that effective online shopping environment must be fun, comfortable and increase
likelihood of a purchase. Regardless the increasing adaptation of smart phones and their
improving functionalities, negative attitude towards mobile marketing communication
in general persist over the scope of the pre - Smartphone era until now (Watson et al.,
2011; Tsang, Ho, Liang, 2004;) . However, previous research shows a negative attitude
towards mobile marketing in general further detailed research that has focused on
attributes of mobile advertising, message content, built on Ducoffe’s model of
advertising value shows that personalisation, relevance of information, entertainment,
informativeness, credibility, incentives and less irritation based on permission to deliver
advertising messages improve mobile marketing acceptance and creates positive
attitudes (Kim & Han, 2014). Yet researches vary in their suggestion what exactly
enhance deeper intention. Some say its enjoyment, credibility, organizational user
empowerment, and informativeness (Hausman &Siepke, 2009). Others argue for
stimulation of the sensory senses as a tool to make visitors and customers visiting again.
Overall, based on previous research, we can see that Website design features play a role
when engaging the visitor and emphasizing user satisfaction. Chen & Wells (1999)
suggest that e-commerce can be positively perceived if it is fun, informative and
combined with good design and web development. Deeper involvement in media
enhances purchase intention. Korzaan (2003) states that attitude has a significant effect
on purchasing intention and that can be used as a predictor of online purchase
transactions. Therefore, we propose following hypothesis to testify the effect of the
consumer attitude towards purchase intention:
Another study carried out by Ünal et al., (2011) in order to find out the relationship
between consumer attitude, purchase intention and acceptance-rejection behaviour
among adult and youth in Erzurum/Turkey. According to the results, an advertisement’s
being entertaining, informative, reliable, personalized and its being sent with the
permission of the receivers has a positive effect on consumer attitudes towards mobile
advertisements. The relationship between message content (informativeness, credibility,
entertainment, incentives and irritation) and attitudes towards advertising in the Ünal et
al., (2011) reveals the same regression analysis results in comparison to
27
Haghirian&Madlberger (2005). Ünal et al., (2011) successfully adapted the theory of
Reasoned Action (attitude, intention, and behaviour) developed by Fishbein and Ajzen
(1975) in their study. Getting permission beforehand is an important factor in Ünal et
al., (2011) study. Ünal et al., (2011) also reveals that youth pays more attention to the
personalisation of the message and no irritating content of advertisements than adults
do. In a study conducted by Xu (2007) in China, found personalisation as an important
factor towards women’s attitudes towards mobile advertising. However, gender is not
considered as an influential factor in this study. Ünal et al., (2011) points out the
importance of examining the role of other elements in creating an attitude towards
mobile advertising in future studies.
Kim & Han (2014) conducted further research on mobile advertising in relation to why
smartphone advertising attracts customers, focusing on university students in Seoul
South Korea. Advertising value and the flow experience are the key determinants of the
consumer purchase intention. Their model also explains that, personalisation, flow
experience and advertising value are mainly related to informativeness, credibility,
entertainment, incentives and irritation. The dimension credibility of Kim & Han (2014)
complies with the dimension concerning perceived risk of Bauer et al
(2005).Relationship between message content (informativeness, credibility,
entertainment, incentives and irritation) and advertising value in the Kim & Han (2014)
reveals the same regression analysis results in comparison to Haghirian&Madlberger
(2005). This study suggests a comprehensive Web advertising model, which mainly
targeted to find the personalisation and flow experience in understanding the influence
processes in related to the smartphone advertisements (Kim & Han, 2014). Kim & Han
(2014) also take consumer demographics into account when studying consumer
attitudes toward mobile advertising. However, their findings show that demographics do
not have any major influence on the attitudes of consumers and the similar result
(Kamphuis&Ramnarain, 2012). The regression analysis results show that
personalisation as well as flow experience has positive associations with in
formativeness, credibility, incentives and entertainment of the advertising message
while having a negative association with irritation. Summary of the results state that
when customers perceive smartphone advertisements to be useful, important, and
valuable, then the consumers experience flow in the advertisement and intend to
purchase goods or services. Moreover, they have found that flow experience in
smartphone advertisements plays a critical role in purchase intention. Kim & Han
(2014) point out the importance of further investigation of the relationships between
flow experience, personalisation, incentives, attitude and some demographics factors
towards purchase intention in order to fill the research gap in the smartphone
advertisement context.
28
considered incentive as part of the message content in the conceptual model and
identified the relationship with attitude rather than advertising value.Therefore the
informativeness, credibility, entertainment, incentives and irritation are considered as
message content and the effect of message content on attitudes is going to testify in this
study.
29
4 Practical Methodology
This chapter explains options and selection of particular research methodology tools,
and their impact on our study. Further, we state how data have been collected and
lastly we demonstrate our research methodology choices in a graphic manner.
30
purpose of our thesis and suggested a co-operation to SME in Cambridge, UK.
Suggested co-operation was in terms of a research among students, studying at the local
University of Cambridge that at the same time are existing or potential customers of
those restaurants and cafes. Investigation of their preferences and attitudes towards
mobile marketing would be executed through survey and online questionnaire.
Targeting such a sample was planned to be executed via Cambridge University
International Student Team and Public Engagement team as well as via restaurants and
cafe’s profiles on social networking sites. Companies were contacted via e-mail, yet we
have not received any response, thereupon we forsake contacting the University of
Cambridge. Instead, we decided to apply the same concept here in Umeå, where we
perceived independence when collecting data as a significant factor. Landing page was
sent to several SME’s. Yet scenario was similar, we have not received any response for
our offer. Therefore a personal meeting followed up, some showed an interest in the
topic yet would prefer planning period to start in November or December, some have
shown no interest at all, reasoning their marketing strategy being executed primarily via
traditional media channels, print, such as newspapers, magazine, journals, flyers or
posters as being sufficient. Some shows satisfaction with their website and online
promotion and no perceived need for mobile marketing. However two SME’s showed
an interest and a further communication was executed.
Before developing a questionnaire for the survey, we read suggestions for designing
questionnaires by Sanders et al., (2012); Bryman & Bell& Bell, (2011); and Nardi,
(2003). As Saunders et al., (2012) state, there are two forms of questionnaire: self-
completed and structured-interview. Questionnaires used to be implied for explanatory
or descriptive research Saunders et al., (2012) further suggest to investigate customers’
attitudes via structured interview, where the interviewer has a chance to explain
complex questions (Saunders et al., 2012, p.420-422). However, being aware of the low
response rate for long questionnaires we tried to develop easy to understand and answer
questions (Bryman & Bell, 2012, p.234). Respondents, in this self-administered survey,
were anonymous. Thus, we informed respondents and assured them about privacy and
the confidentiality of data management. “Clear wording of the questions using familiar
and easily understandable terms, respondents can improve the content validity of the
questioner’’ (Saunders et al., 2009, p. 432). The wording of a survey questionnaire can
cause bias among the respondents, thus as suggested by Saunders et al., (2012), we
applied to amend questions from previous research as well as looking at the example
questionnaire in the book research methods for business students (Saunders et al., 2012,
pp. 426-428). In order to increase understandability of questions and to minimize the
knowledge gap between online and offline participants, we have tested questionnaires
among 14 participants in total. Seven testers were asked about understanability, clarity
and the layout of the questionnaire in accordance with the guidelines given by Saunders
(Saunders et al., 2012, p.452). Their feedback was taken into consideration and
questions were relevantly amended. Thus we ensured the content validity and reliability
of the questionnaire. At first our working draft of questionnaire was designed in the
English language, once questions were amended, translation into Swedish language
took place and consequently testing by seven participants was executed. We have
followed the guidelines provided by Saunders et al., (2012, p.442) and did a parallel
translation in order to have the same meaning for both Swedish and English respondents
(see Appendix 3). Questionnaires of both languages were available online as well as in
self-administered version in order to reach sample of the entire population. Our survey
31
is less than seven and half A4 pages and it is an acceptable range for self-completed
questionnaires (Saunders, 2012, p. 446).
Most of the questions are closed questions in our survey, so the respondents were able
to answer questions quickly and easily (Saunders, 2012, p. 432). We have started
attributing variable questions in the beginning of the survey and included behavioural
and opinion variable questions subsequently. Thus, we followed a logical flow in the
questionnaire in order to get reliable and accurate responses from the respondents. We
applied vertical design for closed questions (Bryman & Bell, 2012, p.237). Horizontal
design was applied to questions regarding demographics
A Google form has been used to design our survey and it helped us to make questions
clear and at the same time applying a simple layout.Short introduction about ourselves
and the purpose of the survey was stated at the beginning of the survey. A progress bar
was included to show the completed percentage in each section of the survey and thus
provide online participants with a better time perception of their participation. Most of
the questions in the questionnaire were mandatory, that helped us to make sure the
survey is fully answered. Suggestions regarding clear presentation, were taken in
consideration and thus questionnaire is divided into four sections and nearly 8 questions
per section in order to minimize the scrolling and increase the understandability of the
respondents (Bryman & Bell, 2012, p.237; Saunders, 2012, p. 421). For manually-
administered questionnaire, we followed the same pattern. To enhance anonymity, we
showed respondents their answers in statistic. We believe those steps helped us to build
the trust among online participants and collect unbiased responses.
32
sample is applied once the researcher has an access to a database of potential
respondents. Than he can decide his sample size, divide it by population (number of
items in the database) and the result provides researchers with sampling fraction. Such a
fraction tells that for example, every one in 20 should be selected. Such a sampling
technique does not give a chance for human bias (Bryman & Bell, 2012, pp. 191-192).
When working with systematic sample, the sampling fraction is applied directly to the
sampling frame (Bryman & Bell, 2012, pp. 190-193). Stratified random sample
provides researchers with a sample that is distributed in a similar pattern as population
(Bryman & Bell, 2012, p. 192). Probability sampling is often associated with the survey
and it is easy to generalize the findings to the entire population in the sample frame
(Saunders et al., 2012, pp. 262-263). On the other hand, generalizability of the findings
is limited in non-probability samples (Saunders et al., 2012, p. 262). According to
Saunders et al., (2012, p. 272), a simple random sampling technique better suited for
few hundred sample sizes. We have calculated required sample size based on the sample
population in our sampling frame. Danielsoperonline statistic calculator for the student
t-test shows that we need a minimum of 104 sample elements for the significant level
0.1 (danielsoper, 2014). Thus, after considering the above random sampling techniques
and facts, we agreed that simple random sampling is best suited sampling technique for
our data collection. We have taken necessary actions to reduce the bias and increase the
randomization when collecting the data by internet and paper surveys.
Bryman & Bell (2012, p. 187) states that a sample is a true representative segment of
the population that is selected for investigation. In our study, we consider smartphone
users within Generation C to be in 18 and 34 years of age range, and middle age adults
(age between 35 and 55) living in Sweden are considered as the population in this study.
A significant proportion of the members in the generation C are still studying, thus their
expenses on mobile purchases might be limited at the moment but possibly higher in the
near future. Such an expectation enables us to make inferences to the population and
make our studies of an interest in SME. On the other hand, middle age adults are
matured customers who have higher purchasing power due. We didn’t consider
respondents younger than 18 years of age due to the ethical and legal restrictions for
internet surfing and mobile gaming. According to Google, Our Mobile Planet (2013)
figures, smartphone penetration among people who older than 55 years equal to 32% in
Sweden, thus we assumed most of them are not used to mobile marketing and we didn’t
consider them in this study.
33
we made sure we are not standing any closer to the respondents, to cause pressure on
them or to indicate choosing socially desirable options (Saunders et al., 2012, p.420).
Respondents were given enough time to fill in. In case of employees and employers of
retail stores, questionnaires were picked upon an agreement the following day, before
closing time. Unfortunately, as Bryman & Bell (2012, p. 234) pointed out, we do not
know who answered the questionnaire, whether it was really filled by employees or
whether only one did it for all. The questionnaires were distributed among people
currently living, working or studying in Umeå.
34
compulsory nature of all the relevant questions in the survey questionnaire. Next, we
have transformed survey questions into the related factors in the conceptual model by
dividing sum of the related questions from the no of related questions. Cronbach’s alpha
test has been done for all the constructs to assure the internal reliability and validity of
the constructs and analyse the consistency of responses (Saunders et al., 2012, 430).
Saunders et al. (2012, p. 430) states that each constructs need to have at least 0.7 out of
one in order to prove the validity of the constructs.
35
concerns did we face and how we managed ethical concerns will be described in section
below.
Thus we can argue that ethical requirements for research were fully met and our
research has been conducted under ethical constructs
36
5 Empirical findings & Data analysis
This chapter presents the data analysis and the result of the empirical investigation.
Data collected through questionnaire were analysed via several testing in SPSS and
subsequently presented via descriptive statistics, Cronbach’s Alpha, Pearson
Correlation and two regression analysis.
5.1 Demographics
In total 153 questionnaires were collected, out of which 103 were manually filled in,
and remaining 50 questionnaires come from internet-based survey. We have targeted
600 respondents in order to reach a minimum of complete elements in our sample in
during the data collection we experienced 15 refusals to fill in the questionnaire.
However, Bryman & Bell (2012) suggest that there is a higher risk of low response rate
with self-administered questionnaire (Bryman & Bell, 2012, p.235). In our case only 11
questionnaires were uncompleted and 5 were removed due to the age of participants that
was above 55. Thus, we had 16 intangible answers in our survey (Saunders et al., 2012,
p.268). There were 153 fully completed questionnaires. 15 paper survey respondents
and 416 internet survey respondents completely refused to fill the survey, so those 431
respondents were unreachable in our survey (Saunders et al., 2012, p.268). Taking that
information into the consideration, we have calculated total response rate (total number
of respondents / (total number of samples - intangible)) equal to 26.2% and the active
response rate (total number of respondents/(total number of samples-(intangible +
unreachable))) of our study up to 100 % due to no other non-respondents in our survey
(Saunders et al., 2012, p.268).
From review literature and our findings, we can conclude that our sample is truly
representative, to achieve perfect responsiveness we would need to have data from 60%
of the population (Saunders et al., 2012, p.269). Additional variable age was divided
into five groups 18 – 24, 25 – 34, 35 – 44, and 45 – 54 following the Think with Google
(2013) division.
Based on European Commission report (2013a) that statest consumers with higher
income are more likely to subscribe for mobile broad band connection. Consumers with
37
the highest income used twice more likely Internet-to-go than household with the lowest
income (European Commission, 2013a). Based upon analysis of our collected data (see
table 3) we observed similar pattern between the level of income and Internet on-the-go
usage. Yet not to the same extend as European Commission, because students in our
sample have the lowest income level yet belong to the most common internet-on-the-go
users. Data are displayed in Table 3 and Table 4.
We asked respondents which form and via which channel they have experienced mobile
advertising the most, because we believe it is valuable for marketers and advertisers to
know which forms and channels have been utilized and to what level. Knowing so
provide advertisers with valuable information about the visibility of their advertising
messages and subsequently revels so called window of opportunity in terms of
unexploited mobile advertising forms as well as channel see table 5and table 6.
38
Which form of mobile advertising have you experienced most?
Frequency Percent Valid Percent Cumulative Percent
Banner ads 58 37,9 37,9 37,9
Internet browser 2 1,3 1,3 39,2
Location based 21 13,7 13,7 52,9
Mobile Search 8 5,2 5,2 58,2
Valid
Mobile video 8 5,2 5,2 63,4
None 13 8,5 8,5 71,9
QR code 2 1,3 1,3 73,2
SMS/MMS 41 26,8 26,8 100
Total 153 100 100
Table 5. Most common mobile advertising form
Which form of mobile advertising are you willing to accept the most?
Frequency Percent Valid Percent Cumulative Percent
Banner ads 29 19 19 19,0
Location based 18 11,8 11,8 30,7
Mobile Search 10 6,5 6,5 37,3
Mobile video 6 3,9 3,9 41,2
None 70 45,8 45,8 86,9
QR code 8 5,2 5,2 92,2
SMS/MMS 12 7,8 7,8 100
Total 153 100 100
Table 7. Consumers' preferred forms of mobile advertising
39
How often do you view and read mobile advertisements on a smart phone?
Frequency Percent Valid Percent Cumulative Percent
1 per 2 – 3 days 11 7,2 7,2 7,2
1 per 4 – 5 days 11 7,2 7,2 14,4
1 per week 30 19,6 19,6 34,0
Valid
1 – 3 per day 30 19,6 19,6 53,6
More than 3 per day 24 15,7 15,7 69,3
Never 47 30,7 30,7 100
Total 153 100 100
Table 8. Frequency of exposure to mobile advertising
Generation C
Age Frequency Percent Frequency of the Income (SEK) higher than
Internet on-the-go 20 000
21 - 26 80 52,29 65 9,6
Total 153 100 149
Table 9. Spread of Generation C and internet on-the-go characteristic in our sample
40
Descriptive Statistics and Cronbach’s Alpha
Factors Mean Std. Deviation Cronbach’s Alpha
Credibility 2,68 0,99 One item
Infotainment 1,94 0,83 0,79
Incentives 2,01 1,09 0,90
Irritation 4,03 1 0,79
Attitude 1,84 0,92 0,82
Personalisation 1,85 0,87 0,83
Permission 2,44 1,17 0,86
Flow experience 3,93 0,63 0,74
Purchase Intention 1,99 0,92 0,83
Table 10. Descriptive Statistics and Cronbach's Alpha
The mean value of the factors in the conceptual model is important to understand how
respondents feel and perceive different affective factors of mobile marketing (see table
10). Therefore, marketers have the possibility to make necessary actions in order to
improve consumers and future consumers’ conception about mobile marketing. The
highest mean value is for the item irritation (4.0) and the lowest is for attitudes (1.84).
Standard deviation varies between 0.63 and 1.17 for the all factors in our conceptual
model. Mean value 4.03 of the irritation reveals that most of the respondents designate
mobile advertising as irritating and intrusive. As we mentioned earlier, in permission-
based advertising, consumers provides permission to advertisers to deliver advertising
messages only about in advance chosen products and services. This is appointed as a
key strategy to lessen an irritation (Tsang et al., 2004). The mean value for the
personalisation is equal to 1.85 in our study, so most of the respondents don’t believe
mobile advertising is tailored to their usage and interest. Therefore, it is important to
focus on personalisation, which success can be enhanced by request for permission
rather than broadcasting advertisements to everyone. Consequently, it will decrease
information overload and minimize the distraction and anonymity of
advertisers.Aforementioned actions will help to raise positive attitudes towards mobile
advertising. Flow experience is relatively new concept in mobile advertising, but mean
value of 3.93 reveals that most respondents agree that their prior flow experience has an
effect on attitudes or the purchase intention. Infotainment, incentives, attitude and
purchase intention got relatively lesser mean values than the average of mean value of
2.5. Attitudes and purchase intention mean values reveal that most consumers do not
perceive positive attitudes towards mobile advertising and increase the purchase of
products or services after seeing such advertisements.
41
Correlation
Cred. Inf. Irr. Inc. Pers. Perm. Att. P.I. F. Ex.
Pearson 1 .552** -.387 .523** .520** .600** .564** .508** .301**
Credibility
Correlation
Pearson .552** 1 - .649** .702** .617** .732** .638** .160*
Infotainment
Correlation .622**
Pearson - - 1 - - - - -431** .030
Irritation
Correlation .387** .622** .495** .462** .340** .500**
Pearson .523** .649** - 1 .660** .629** .732** .644** .200*
Incentives
Correlation .495**
Personalisatio Pearson .520** .702** -462** .660** 1 .637** .780** .704** .216**
n Correlation
Pearson .600** .617** - .629** .637** 1 .675** .596** .303**
Permission
Correlation .340**
Pearson .564** .732** - .732** .780** .675** 1 .711** .189*
Attitudes
Correlation .500**
Purchase Pearson .508** .638** - .644** .704** .596** .711** 1 .245**
Intention Correlation .431**
Flow Pearson .301** .160* .030 .200* .216** .303** .189* .245** 1
experience Correlation
**. Correlation is significant at the 0.01 level (2-tailed).
The linear regression analysis results show that four out of seven predictors have
significant positive effects on attitudes; infotainment (β = 0.22, p < 0.1), incentives (β =
0.21, p < 0.1), personalisation (β = 0.37, p < 0.01) and permission (β = 0.17, p < 0.1). β
values ranging between -1and +1, where 0 means no impact at all and +1 stands for
42
totally positive effect with the dependent variable (Hair et al., 2006). For instance, if
infotainment increases by one unit, positive attitude towards mobile advertising
increases by 22 %. One unit increase for the flow experience and irritation leads to
increase negative attitudes towards mobile advertising by 3.6% and 2.5% respectively.
But for the flow experience (β = -0.036, p > 0.1), irritation (β = -0.025, p > 0.1) as well
as credibility (β = 0.025, p > 0.1), so those factors are not significant under this
regression analysis.
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .856* .733 .720 .48463
*. Predictors: (Constant), Flow experience, Irritation, Credibility, Permission, Personalisation,
Incentives, Infotainment
Table 12. Summary Attitudes towards mobile advertising and predicted items
ANNOVA**
Model Sum of df Mean Square F Sig.
Squares
Regression 93.297 7 13.328 56.748 .000*
1 Residual 34.055 145 .235
Total 127.352 152
*. Predictors: (Constant), Flow experience, Irritation, Credibility, Permission, Personalisation,
Incentives, Infotainment
**. Dependent Variable: Attitudes
43
Coefficients*
Unstandardized Standardized
Model Coefficients Coefficients
B Std. Error Beta t Sig
(Constant) .194 .354 .548 .584
Credibility .025 .033 .038 .755 .451
Infotainment .220 .080 .200 2.734 .007
Irritation -.025 .052 -.028 -.484 .629
1 Incentives .210 .054 .251 3.879 .000
Personalisation .372 .070 .360 5.324 .000
Permission .113 .050 .145 2.250 .026
Flow -.036 .068 -.025 -.537 .592
experience
*. Dependent Variable: Attitudes
Table 14. Regression 1: Coefficients
Model Summary
Model R R Square Adjusted R Std. Error of the Estimate
Square
1 .720a .518 .511 .64234
*. Predictors: (Constant), Flow experience, Attitudes
Table 15. Summary Flow experience and Purchase Intention
44
ANNOVA**
Model Sum of Squares df Mean Square F Sig.
Regression 66.438 2 33.219 80.512 .000*
1 Residual 61.889 150 .413
Total 128.327 152
*. Predictors: (Constant), Flow experience, Attitudes
**. Dependent Variable: Purchase Intention
Coefficients*
Unstandardized Standardized
Coefficients Coefficients
Model
B Std. Beta
Error t Sig
(Constant) .060 .332 .180 .858
Attitudes .691 .058 .689 11.929 .000
1
Flow .168 .084 .115 1.994 .048
experience
*. Dependent Variable: Purchase Intention
45
6 Discussion
This chapter discusses findings of our research. Each regression will be explained from
the perspective of significant effects. In this section we will also state which hypotheses
were supported. Our conceptual framework will be presented and discussed in its
modified version.
In relation to previous research, the studies conducted by Korzaan (2003), Ünal et al.,
(2011) and Kim & Han (2014) are mainly considered when we build our conceptual
model. We used their scales, most of their survey questions and hypotheses in this
study. Data collection methods, sampling techniques, considered sample population and
significant levels also similar to our study. Therefore, we are going to consider above
studies in order to compare regression analysis results of this study. A study conducted
by Haghirian&Madlberger (2005) reveals that there is a significant positive effect of
advertising value on consumer attitudes. In other studies except the study of
Haghirian&Madlberger (2005) distinction between advertising value and attitudes is not
clear. We have considered incentive as part of the message content in this study and
identified the relationship with attitude rather than advertising value. Kim & Han (2014)
show that incentives have a significant positive effect on advertising value. Thus, we
can’t directly compare the incentive relationship with the results of Kim & Han (2014).
But there is a possibility to generally compare with the said study due to the positive
relationship between advertising value and attitudes found in the
Haghirian&Madlberger (2005) study.
46
Ünal et al. (2011) found significant positive relationships of personalisation and
permission towards attitudes, which is supported in this study as well. Flow experience
was not significant towards attitudes in our study. Subsequently, the result was not
complying with Korzaan (2003) regression analysis findings. We believed the flow
experience is more related with consumer online behaviour rather than their attitudes
towards mobile advertising. Therefore, we have testified the effect of flow experience
and purchase intention in the next regression analysis.
Regression 1 provided empirical evidence regarding following predicted hypotheses.
47
This result states that when customers perceive smartphone advertisements to be
matched with their personality, interests and provide an opportunity to find the best
products for updated prices, then they experience flow in the advertisement and increase
the intention to purchase goods or services.
48
7 Conclusion and Recommendations
Based on the discussion in the previous chapter, in this chapter, we will draw
conclusion and provide theoretical and managerial implications. We will also assess
our study based on four criteria of truth. At the end of this chapter we will provide
suggestions for future research.
As we mentioned earlier, the purpose of this thesis was to investigate the impact of
message content and flow experience on attitude towards mobile advertising, as well as
to investigate what effects do attitudes toward mobile advertising have on customers
purchase intention indicated. However, it has been stated by previous studies consumers
in general have negative attitudes towards mobile advertising in our study we could
have observe the same pattern among all age groups, various employment statuses and
income levels. Yet during our work we examined the influential factors towards
attitudes and how attitudes and flow experience relate to purchase intention. In our
regression analysis, we have found that infotainment is highly significant towards
consumer attitudes and thus prove previous research studies by Ünal et al., (2011) and
Kim & Han (2014). The mean value for the personalization is equal to 1.85 in our study,
so most of the respondents don’t believe mobile advertising tailored to their usage and
interest.
Thus we were able to answer our research question and provide some practical
suggestions to improve consumer attitudes towards mobile advertising and purchase
intention. Additionally our research has strengthen arguments of previous market as
well as academic research in terms of need for well though through mobile marketing
campaigns possessing attributes of incentives, personalisation, permission and
entertainment.
Firstly, the study shows that incentives play a significant role in mobile advertising
acceptance. The more interesting incentives, the more of incentives and if incentives of
monetary means have a positive effect on customers’ attitudes towards mobile
advertising. Consequantly, leading consumers to accept advertisement more likely if
incentives are attached. Thus, it increases the likelihood of purchase intention of the
consumers. The mensioned relationships between factors in the revised conceptual
model is comply with the theory of reasoned action. Fishbein & Ajzen (1975) model
proved by the investigation of the relationship between attitiudes towards mobile
49
advertising and purchase iintention. This we consider as an additional theoretical
contribution to this study.
Secondly, as it has been proven by this study personalized advertising messages sent
prior permission are the most positively likely accepted. The statistical analysis results
further show that infotainment, incentives, personalisation and permission have
significant positive relationships with attitudes. Through our work, we observed that
attitudes as an independent variable and flow experience have significant
positive relationships with purchase intention. That is in line with Ducoffe advertising
value theory (1995). Yet a new theoretical concept was developed regarding irritation,
that has no effect upon attitudes towards mobile advertising. Such a statement is in
contradiction with previous studies of Ducoffe (1995, 1996) and Ünal et al., (2011) and
thus, we consider it as a new finding based on our study.
Thirdly, this research also helped us to identified areas for an improvement in terms of
flow experience and its attributes. In our study, we could observe that customers do not
experience the flow experience to the same level when engaging with mobile
advertisement on smartphone as if they would do when surfing an internet via desktop.
However, atmospheric cues that are related to flow experience plays a significant role in
customers’purchase intention after seen the mobile advertisment. Through our study, we
have proved that incentives, infotainment, permission and personalsiation had positive
effects on attitudes torwads mobile advertising. The attitudes towards mobile
advertising and flow experience had positive effects on purchase intention.
Practical Implications
According to our study, permission is a significant factor in relation to consumer
attitudes. Therefore, marketers can increase the likelihood of purchase and credibility of
their brand if they perform mobile advertisement based on permission. Meaning
marketers shall engage in more personal and individual communication with customers
one at a time and as a result gain permission for futher commercial communication.
Consequently a strong implication can be drawn that if advertiser invest time in
personalisation study of their customers, consequently target their customers with
appropriated messages the advertisers together with marketers can increase the
likelihood customers providing permission more or less based on a good worthy
previous experience. Advertising messages sent upon permission will directly affect
consumer attitudes towards mobile advertising and increase the consumer purchase
intention. Through our data analysis, we observed that the incentives are a highly
significant factor towards consumer attitudes. Therefore, any form of incentives offered
via smartphone would be a better option to attract customers towards mobile
advertising. Incentives can be in a form of vouchers, free samples, gifts anything that
customer perceive as a value.
Flow experience is a relatively new concept in mobile advertising, yet it turned out to be
a very important factor in this study. Since the mean value of flow experience (3.93)
reveals that most respondents agree that their prior flow experience has a major effect
on their online behaviours. Therefore, we would suggest advertisers to focus on
indicators related to flow experience such as attributes of atmospheric cues design,
layout, balance between informativeness and entertainment, that is determined by
cultural background of customer. Another important factor in case of navigability,
50
information finding capability and robustness of the web pages since flow experience
has a significant effect on consumer purchase intention in our study.
In this way we tried to make sure we can draw a general conclusion of our findings in
relation to considered population in Umeå.Since Umeå municipality is considered to be
a small with high percentage of young adults, we believe that our study is appropriate to
replicate in other student cities similar to Umeå in their size (for example Västerås,
Jönköpping, Lund). The underlying reason is that in larger municipalities, there may not
be a substantial difference between young and adult population.
Saunders states that “clear wording of the questions using familiar and easily
understandable terms, respondents can improve the content validity of the questioner”
(Saunders et al., 2012, p. 432). When we were designing the questionnaire, pre tested
respondents’ feedback about understandability, clarity and the layout of the
questionnaire was taken into consideration and questions were relevantly amended.
Thus, we ensured the content validity of the questionnaire. Criterion validity that makes
it possible for the researcher to see how well the questionnaire correlate with the
measures (Saunders et al., 2012, p. 430). Therefore, we have used linear regression
analysis as a suitable tool for clarifying the criterion validity in this investigation and
found some interesting relationships explained in the figure 7.
According to Bryman & Bell (2011, p. 164), generalizability implies that the
applicability of a study of the non-respondents within the considered population. There
is a possible bias in the sampling due to different distribution methods of the survey.
But we have collected a simple random sample in different physical locations and
online in order to fully represent the considered population in Umeå. Therefore, we
have higher possibility to generalize the findings to the considered population in Umeå.
51
Umeå municipality is considered to be a small and one of the high younger generation
living municipalities in Sweden. Therefore, we believe that the findings of this study are
appropriate to replicate in similar kind of Swedish municipalities (e.g. västerås). It is not
advisable to replicate this study in larger municipalities due to different age distribution
patterns in the population.
7.4 Limitations
Several concerns regarding self-administered questionnaire should be raised. At first we
assumed that everybody has a smart phone, such an assumption was negatively
perceived by respondents who would welcome to have additional question stated like:
‘‘Do you have a smart phone?’’. We would like to address such a concern that
respondents were inquired for willingness to participate in the survey, verbal and
written questions regarding time;length; the approach and meaning were raised and
adequately addressed. Thus self-administered questionnaire was handed out only to
those owning and using smart phone and at the same time willing to participate. Such an
approach allowed us to perform a survey effectively, efficiently and keeping costs low.
Other concern raised by respondents was missing option ‘‘other’’ in question regarding
their gender. We understand the complex social and theoretical background, yet at the
level of bachelor thesis, we decided to follow the traditional design of previous
marketing studies. All applied question regarding gender in the same manner. Such an
approach helped them as well as to us to draw a basic understanding to consumer
behaviour and attitudes. When conducting a study with more specific sample group, or
when focusing on specific behavioural pattern, we will apply additional theories and
option in the survey.
Limitation of our study and its context is its generalisation. If we would have focused
on one factor influencing attitudes towards mobile advertising we could have developed
more specific guidelines for marketers and advertisers. Yet this limitation should be
accepted due to the fact of lack of research regarding Swedish customers and their
attitudes towards mobile advertising.
However Rohm et al., (2011), Mazaheri (2013) described and prove the importance of
cultural background in relation to attitudes towards mobile advertising; we have not
investigated respondents’ nationality for two reasons. Addressing such a concern well
would include in depth study of personal belongings to culture of first, second and third
generation of foreigners living in Sweden. We believe cultural background is an
important factor to take in consideration, yet to analyse it in a good and sufficient
manner we would need additional time. Thus, once more time, when conducting studies
with focus on a specific target group we will include additional theories and questions.
Future research regarding the flow experience as well as atmospheric cues is inevitable
in order to increase a purchase intention. Flow experience proves to be highly
significant in our study and thus managerial recommendation and contribution would
help to marketers as well as advertisers to develop relationship-marketing of a high
quality.
Cultural background and its effect on smartphone users in terms of message content
(credibility, infotainment, irritation, and incentives), personalisation, permission,
perceived risk, usage, online habits and flow experience would provide marketers with
valuable data to understand their consumers’ needs of the flow experience. Such a
research would lead into more effective and efficient marketing strategies.
Future research could combine new trends and changes in the society regarding gender
issues addressed by analysis of independent sample t test and age group difference
analysis by a chi-square test would be interesting to see in a conceptual model. These
will help to target various segments of consumer groups after identifying their
preferences and attitudes towards mobile advertising.
Youth adults regarding their income engage in online behaviour via their smartphone.
Such a fining of our analysis indicates that there are significant differences in perception
of online and mobile behaviour compared to previous generation X. Groups belonging
to so called generation C should be a topic of future research from the perspective of
their need for connectivity, content creation, and content control. We suggest future
research could focus on the age group 12 – 18, that are going to be the future consumers
of marketers and advertising messages.
53
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9 Appendix
Appendix 1. Table of Measured Items
Incentives I am satisfied to get mobile advertisements that offers rewards Unal et al., (2011)
I am willing to receive mobile advertisements when it offers Unal et al., (2011)
rewards Unal et al., (2011)
I respond to mobile advertising in order to receive rewards
Attitudes I feel mobile advertising helps raise our standard of living Liu et al., (2011)
towards I feel mobile advertising helps me to find products or services Liu et al., (2011)
mobile that match my personality and interests Liu et al., (2011)
advertising I feel mobile advertising helps me to buy the best product for
given price
Personalisation I feel mobile advertisement is tailored for my usage Kim et al., (2014)
I feel mobile advertisement is personalized according to my best Unal et al., (2011)
interests Unal et al., (2011)
I use personalized mobile advertising as a reference for
purchasing
Permission I feel mobile advertisement is trustworthy, once sent by getting Unal et al., (2011)
my permission
I feel satisfied with mobile advertising that is sent by getting my Unal et al., (2011)
permission
Flow I completely concentrate on mobile advertising while I look at Kim et al., (2014)
experience them Cho et al., (2003)
When I browse Internet via my smartphone, I like the site to be Cho et al., (2003)
easy to navigate
When I browse Internet via my smartphone, I like to find
relevant information easily. Cho et al., (2003)
When I browse Internet via my smartphone, I like information
on web sites to be well organized Zhang et al.,
When I browse Internet via my smartphone, I like the robustness (1999)
of the web interface Zhang et al.,
When I browse Internet via my smartphone, I like to scroll to (1999)
view pages
Purchase I expect to use mobile advertising to purchase after receiving it Unal et al., (2011)
intention I would probably buy goods or services with smartphone Kim et al., (2014)
advertisements Kim et al., (2014)
I would consider purchasing goods or services with smartphone
advertisements
1
Appendix 2. Landing Page
Pie-charts are based upon data withdrawn from Google (Our Mobile Planet, 2013).
2
Appendix 3. Survey
Original English survey Svensk översättning av undersökningen
Mobile marketing and its effect on Mobil marknadsföring
consumer purchase Intention
Thank you for your interest to Tack så mycket för er medverkan i vår
participate in our study. We are two undersökning.Vi är två affärsstudenter
business students completing bachelor's som håller på att avsluta vår
degree at Umeå University. The main kandidatexamed på Umeå universitet.
purpose of this study is to understand Huvudsyftetmed denna undersökning är
consumer preferences and attitudes att få en förståelse för konsumenters
towards mobile marketing. We would inställning och attityd till
like to highlight that our survey is mobilmarknadsföring. Vi vill
completely anonymous and you will not understryka att undersökningen är helt
be asked to provide any confidential anonym och du behöver inte lämna
information about yourself. Your någonkonfidentiell information om dig
participation might take 10 – 15 själv. Frågorna tar 10-15 minuter. För
minutes. For further information, please ytterligare information, tveka inteatt
do not hesitate to contact us kontakta oss på email:
at:maku0029@student.umu.se. maku0029@student.umu.se.
* Required * Krävs
DemographicsQuestions Demografi frågor
1. Age?
1. Ålder
2. Gender*
1. Male
2. Kön *
2. Female
1. Man
2. Kvinna
3. What is your highest completed
level of education?*
3. Vad är din högsta, avslutade
utbildning? *
1. High school graduate, diploma
or similar
1. Gymnasiet
2. Technical or vocational training
2. Yrkesutbildning
diploma
3. Kandidatexamen
3. Bachelor’s degree
4. Masterexamen
4. Masters degree
5. Doktorandexamen
5. Doctorate degree
1
10.Which form of mobile advertising 10. Vilken sorts mobil
are you willing to accept the most? * marknadsföring är du mest villig
att acceptera? *
1. SMS/MMS
2. Banner ads 1. SMS/MMS
3. QR code 2. Bannerannons
4. Mobile video 3. QR-koder
5. Mobile search 4. Reklamfilm på mobilen
6. Location based (Geo targeting) 5. Mobilsökning
7. None 6. Platsbaserad reklam
7. Ingen
11. How often do you view and read
mobile advertisements on a smart 11.Hur ofta ser och/eller läser du
phone? * reklam på en smart phone? *
1. 1 per week 1. 1 gång i veckan
2. 1 per 4-5 days 2. 1 gång per 4-5 dagar
3. 1 per 2-3 days 3. 1 gång per 2-3 dagar
4. 1-3 per day 4. 1-3 gånger per dag
5. More than 3 per day 5. Mer än 3 gånger per dag
6. Never 6. Aldrig
Scale items
5-point Scale; 1 – Strongly Disagree, 5 – Strongly Agree
5
Consumer attitudes towards mobile Konsumenternas inställning till mobil
marketing marknadsföring
22. I feel mobile advertising helps 22. Jag tycker att mobilreklam
raise our standard of living * hjälper till att höja vår
23. I feel mobile advertising helps levnadsstandard. *
me to find products or services 23. Jag tycker att mobilreklam
that match my personality and hjälper mig att hitta produkter
interests * eller tjänster som matchar
24. I feel mobile advertising helps minpersonlighet och intressen. *
me to buy the best products or 24. Jag tycker att mobilreklam
services for given price * hjälper mig att köpa de bästa
25. I feel mobile advertisement is produkterna eller tjänsterna för
tailored for my usage * debästa priserna. *
26. I feel mobile advertisement is 25. Jag tycker att mobilreklam är
personalized according to my skräddarsydd för min
best interests * användning. *
27. I use personalized mobile 26. Jag tycker att mobilreklamen jag
advertising as a reference for ser matchar mina personliga
purchasing * intressen. *
28. I feel mobile advertisement is 27. Jag använder mobilreklam som
trustworthy, once sent by getting referens när jag köper saker. *
my permission * 28. Jag tycker att mobilreklam är
29. I feel satisfied with mobile trovärdig, när jag gett mitt
advertising that is sent by medgivande. *
getting my permission * 29. Jag är nöjd med mobilreklam
som skickas till mig med mitt
medgivande. *
Internet browsing via smart-phone
Internetsurfande med smart phone
30. I completely concentrate on
mobile advertising while I look 30. Jag koncentrerar helt och hållet
at them * på mobilreklam när jag tittar på
31. When I browse Internet via my den. *
smart phone, I like the site to be 31. När jag surfar på min smart
easy to navigate* phone vill jag att websidorna ska
32. When I browse Internet via my vara lätta att navigera på. *
smart phone, I like web sites to 32. När jag surfar på min smart
provide relevant information* phone vill jag att websidorna ska
33. When I browse Internet via my visa relevant information. *
smart phone, I like information 33. När jag surfar på min
on web sites to be well smartphone vill jag att
organized * websidorna ska vara
34. When I browse Internet via my välorganiserade. *
smart phone, I like the 34. När jag surfar på min smart
robustness of the web interface * phone vill jag att sidorna skall
35. When I browse Internet via my vara robusta, dvs tolereramisstag
smart phone, I like to scroll to från användare samt ha lågt
view pages * antal buggar. *
35. När jag surfar på min smart Köpavsikter
phone tycker jag om att scrolla
36. Jag förväntar mig att köpa en
för att se sidor. *
produkt från mobilreklam efter
Purchase intention att ha sett den. *
37. Jag skulle förmodligen köpa
12. I expect to use mobile
produkter eller tjänster som jag
advertising to purchase after
sett på mobilreklam. *
receiving it *
38. Jag skulle kunna tänka mig att
13. I would probably buy products
köpa produkter eller tjänster som
or services with smart phone
jag sett på mobilreklam. *
advertisements *
14. I would consider purchasing
products or services with smart
phone advertisements *
7
Umeå School of Business and Economics
Umeå University
SE-901 87 Umeå, Sweden
www.usbe.umu.se