User Acceptance of SMSbased Mobile Advertising Campaigns

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User Acceptance of SMS-based Mobile Advertising
Campaigns
PLS09

• Philipp Heim/Eva Walter / Thomas Reutterer

2
Outline

• Background Motivation
• Objectives of our Study
• Prior Research
• Research Framework and Hypotheses
• Empirical Study and Methodology
• Results, Implications, Limitations further
  Research

3
Background Motivation

• Mobile cellular subscribers per 100 residents in
  Europe

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Background Motivation

• Worldwide
• 4 billion mobile cellular subscribers at the end
  of 2008
• 2000 ?mobile penetration only 12 per cent, 2008 ?
  about 61 per cent
• Consumers information overload
• Loss of efficiency of conventional advertising
  media

Great potential for use within personalisedone-to
-one marketing campaigns e.g. via SMS
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Objectives of our Study

• Primary goals
• To empirically evaluate the potential
  influencing factors on consumers acceptance
  and attitudes towards SMS-based advertising in
  a specific advertising campaign
• To test the impact of different text layouts on
  the recipients
• perceptions of SMS-advertising

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Prior Research

• Research in this area seems to be at a relatively
  early stage (Barnes/Scornavacca 2004 Tanakinjal
  et al. 2007 Mort/Drennan 2002)
• Relatively large number of studies focusing on
  the acceptance of mobile advertising
  (Haghirian/Madlberger 2005, Tsang et al. 2004,
  Bauer et al. 2004)
• Prior research revealed negative attitudes
  towards mobile advertising in general.
• Problem
• Rather general, context independent notion of
  mobile advertising
• Focus on young target audiences

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Prior Research

• Conceptual framework
• Technology Acceptance Model (Davis 1989)
• Theory of reasoned Action (Fishbein/Ajzen 1975)
• Theory of planned Behaviour (Ajzen 1991)
• Some other empirically tested constructs
• Advertising value (Ducoffe 1995)
• Credibility (Brackett/Carr 2001 Tsang et al.
  2004)
• Entertainment/Informativeness/Irritation/Permissio
  n (Tsang et al. 2004 Haghirian/Madlberger 2005)
• Personal Innovativeness (Agarwal/Prasad 1998)
• Relevance (BarnesScornavacca 2004 Tanakinjal et
  al. 2007)

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Research Framework and Hypotheses
PI
PERM
ENT
H1a
H2a
H6
H7
INF
H1b
H2b
H3-
IRR
ADV
ATT
INT
H11
H12
H4
REL
H8
H9
H10
H5a
AGE
EDU
SEX
CRE
H5b
Perceived advertising value (ADV) triggers
attitude towards the ad (ATT) which has a
positive impact on purchase intention (INT)
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Empirical study and methodology

• In contrast to previous contributions a specific
  SMS campaign was conducted in cooperation with a
  Do-It-Yourself (DIY) retailer in July 2007
• 2,150 members of the retailers loyalty program
  received the SMSannouncing a 20 per cent
  discount for a specific item
• Only members, who had bought the product
  advertised or a similar product
• The item was not featured in any other ad and
  sold at the regular shelf price during the
  experimentation period
• Within 3-4 days the members were contacted at
  their mobile phone
• 369 consumers were willing to participate

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Results
PI
PERM
ENT
.306
.010
.192
INF
.094
.467
.139
IRR
ADV .856
ATT .919
INT .790
.079
.369
.889
.271
REL
-.010
-.001
.003
.057
AGE
EDU
SEX
CRE
.058
ADV ? ATT ? INT confirmed, ENT strongly affects
ADV/ATT Ad needs to be relevant (REL) and based
on permission (PERM)
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Results

• Experimental Design
• 2 text versions 1 Neutral, 1 Inviting (emphasis
  on the price-discount)
• 2 structurally similar sub-samples

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Implication

• Entertainment and Relevance are of major
  importance for positive evaluation and acceptance
  of a mobile advertising campaign
• Informativeness and Credibility turned out to be
  of subordinate importance
• Irritation seems to be low, which could be an
  indication that consumers are aware of their
  given permission, but clear instruction is
  essential
• Daily use of mobile phone affects personal
  innovativeness

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Limitations further research

• Generalisability
• Promoted product was not necessarily
  representative for DIY Retailer (low-interest,
  low price)
• So, motivation to visit the store can be expected
  to be rather low as relevance has a strong impact
• Further investigation of behavioural consequences
  of the perceptual measures (instead of
  self-reported behaviour)

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• Thank you for your attention!

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Appendix
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Prior Research
Already empirically tested Models for Advertising
Demo.
ENT
PERM
ENT
INF
ATT
ATT
INT
BEH
INF
IRR
CRE
ADV
CRE
Incentives
IRR
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Research Framework and Hypotheses

• H1 The perceived Entertainment (ENT) has a
  positive effect on the perceived Advertising
  Value (ADV) and the Attitude towards the Ad
  (ATT).
• H2 The perceived Informativeness (INF) has a
  positive effect on the perceived Advertising
  Value (ADV).
• H3 The perceived Irritation (IRR) has a positive
  effect on the perceived Advertising Value (ADV).
• H4 The perceived Credibility (CRE) have a
  positive effect on the perceived Advertising
  Value (ADV).
• H5 The perceived Advertising Value (ADV) has a
  positive effect on the Attitude towards the
  received SMS (ATT).
• H6 The Personal Innovativeness (PI) has a
  positive effect on the attitude towards the
  received SMS (ATT).
• H7 The perceived Relevance (REL) for a solicited
  product in a commercial SMS has a positive effect
  on the perceived Advertising Value of the Message
  (ADV).
• H8 The level of permission for a commercial SMS
  (PERM) has a positive effect on the Attitude
  towards the Ad (ATT).
• H9 The Attitude towards the Ad (ATT) has a
  positive effect on the Behavioural Intention
  (INT).

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Appendix

• ENTI feel that receiving SMS advertisements
  from XY is pleasing unpleasing.
  (Tsang/Ho/Liang 2004)
• IRRSMS advertising is annoying
  (Haghirian/Madlberger 2006)
• INFSMS advertising is informative (Ducoffe
  1996)
• CRESMS advertising is credible (Brackett/Carr
  2001)
• RELPlease evaluate the product offered
  beneficial- not beneficial, needed not needed,
  essential unessential (Jain/Srinivasan 1990)

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Appendix
Formula used to calculate the between group
differences in the structural
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Appendix
Results of the Sobel-Test
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Source Chin 200
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Advertising Impact
Empirical study and methodology
Attention
Interest
Desire
Action
Receipt
Read/ Recollection
Intention
Purchase
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Background Motivation

• Mobile phone usage in Austria in 2008
• Nine out of ten persons use a mobile phone
• In 2002 -gt 69 per cent of households with mobile
  phone(s)
• In 2008 -gt 93 per cent

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Source Statistik Austria ICT usage 2008
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Empirical study and methodology

• 5-point rating scales were employed (based on
  previous studies)
• Stone-Geisser test of predictive relevanceADV Q²
  0.747 ATT Q² ,831 INT Q² ,377
  recommended gt 0
• For cross-validated redundancy

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Empirical study and methodology

• 68 per cent male / 32 per cent female
• Age distribution

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