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Attitude and Intention toward Mobile Advertising

Paper Type: Free Essay Subject: Marketing
Wordcount: 5514 words Published: 7th Sep 2017

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3. Research Framework

3.1 introductions

In the research the factors will be considers as that entertainment credibility; irritation and informativeness are the significant factors affecting respondents’ attitudes toward mobile advertising. They use attitude as a dependent variable and consider the antecedents of advertising value as factors of attitude in their framework. (Chakraborty, Lala, & Warren, 2003)Compared to other advertisings, personalization is very important in the Internet advertising. Personalization can ensure that visitors to location based service segment are to see the most appropriate and appealing Internet advertising and have positive benefits ranging from improved attitude toward the Website to purchase consider that personalization factors will come into play in the mobile environment. This factor may help further distinguish the mobile environment from traditional and Internet media. Specifically, I propose that personalization will affect respondents’ attitudes toward mobile advertising in addition to those proposed by Tsang et al. Figure 1 depicts the framework of consumer’s perceptions on mobile advertising. These five factors are expected to affect mobile advertising attitude, and attitude will affect intention on using location based services in customer point of view. The attention refers to the plan of acting on the information presented in mobile advertising, such as going into a certain store to buy something after receiving a mobile advertisement from the store.

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Location-based services (LBS) are services that utilize knowledge about where a mobile device user is located. For example, the user of a mobile smart phone could be publicized ads exact to the region the user is travelling in. Location-based services exploit any of numerous technologies for knowing where a network user is geographically positioned. associated Business Intelligence estimates that the LBS industry will account for more than 80 billion in revenue by 2020 in Europe. Most telecommunications carriers plan to pursue either network- or handset-based location fixing technologies in their networks. The technology to pinpoint a mobile phone’s location is obtainable today and is of significant commercial value to businesses that want to aim their customers via mobile phones. Advertising that changes based on a user’s location (LBA – Location Based Advertising) has been one of the much-talked-about capabilities of the wireless Internet, the idea being that an advertiser could reach a customer when he was most likely to buy. Opt-in possibilities could permit device users who are strolling in a shopping mall or urban area, for example, to signal their readiness for local offers. Location-based services (LBS) are services that exploit knowledge about where a mobile device user is located. For example, the user of a mobile smart phone could be shown ads precise to the region the user is travelling in. Location-based services take advantage of any of several technologies for knowing where a network user is geographically located. Allied Business Intelligence estimates that the LBS industry will account for more than 40 billion in revenue by 2006 in Europe. Most telecommunications carriers plan to pursue either network- or handset-based location fixing technologies in their networks. The technology to pinpoint a mobile phone’s location is available today and is of significant commercial value to businesses that want to target their customers via mobile phones. Advertising that changes based on a user’s location (LBA – Location Based Advertising) has been one of the much-talked-about capabilities of the wireless Internet, the idea being that an advertiser could reach a customer when he was most likely to buy. The advertising will be directed toward phone and PDA (personal digital assistant) users or passengers in public transport. “Wireless advertising makes the most sense when delivered contextually through media on a geo-targeted basis. Opt-in possibilities could permit device users who are strolling in a shopping mall or urban area, for example, to signal their readiness for local offers.(Kölmel & Alexakis, 2002)

3.2 Factors Contributing to Attitude and Intention toward Mobile Advertising

Mobile advertising has become one of the most accepted applications in mobile marketing, principally in the form of text advertising through SMS (Short Messaging Service). This research investigates and compares the attitude toward mobile advertising and advertising- in-general. The results, conducted on 571 Sri Lankan mobile phone users, indicate that (1) consumers hold positive attitudes toward mobile advertising and advertising-in-general, (2) perceived irritation, informativeness, and trust affect consumers attitudes, (3) mobile advertising and advertising-in-general don’t irritate consumers and they perceive them informative. However consumers don’t trust mobile advertising and advertising-in-general. (4) Consumers are more positive about advertising-in-general than mobile advertising.(Buckley, 2004). in advertising and information systems suggests that advertising in mutually conventional media and the Internet is either effortlessly ignored by the audience or is perceived with diminutive value. However, these studies assumed that the audience was passive and failed to consider the motives of the users. In light of this, the present study measures consumers’ attitudes toward advertisements for different purposes/functions (Location building and directional) and different media (traditional and Internet-based). Literature suggests the following factors that contribute to consumers’ perceptions of ads: entertainment, irritation, informativeness, credibility, and demographic. We believe that interactivity is also a factor that contributes to consumers’ perceptions. By understanding consumers’ attitude towards advertising, designers and marketers can better strategize their advertising designs. A better understanding of interactivity can also help to improve the effectiveness of interactive media such as the Internet. A methodology for studying the factors that contribute to consumers perceptions of ads is proposed and implications for Internet-based advertising and e-commerce is discussed.(Wang, Zhang, Choi, & Eredita, 2002). mobile marketing and the permission and user attitude for acceptance of mobile services by consumers accessed mainly by mobile phones. The aim of this study is to analyze the factors affecting consumer attitudes toward permission-based mobile marketing (PBMM).(Cengiz, Tetik, & Yuan, 2010)

The LBA push approach amounts to the advertiser working with the carriers and delivery networks to send (push) ads to the user, determined by the device’s location. Hypothetically, it could be targeted even more finely if other information is available about users (context, demographics, psychographics, etc.) Within the push approach, there are two further possibilities with which we have become unfamiliar in recent years as they pertain to e-mail advertising: opt-out and opt-in. Opt-out suggests that advertisers would send ads to whomever they wanted to until users asked that they not be sent ads anymore. In contrast, the opt-in approach involves users authorizing that messages be sent to them, a type of permission marketing(Godin 1999). As an example, the push approach was used when moviegoers walked near a kiosk at some theaters and received text messages letting them know they could download free content related to recent movie releases (Parry 2005). In this case, opt-in would mean recipients would have previously indicated their interest in receiving messages from the theaters whereas opt-out means they would not have done so.

The other approach to LBA is called pull and it occurs when consumers request some information or use some service on a one-time basis and in the process are exposed to commercial messages (MMA 2005a). In essence, they are seeking information (pulling) rather than the information seeking them (pushing). For example, a salesman visiting San Francisco could use his device to access a portal where one of the choices is Local Restaurants. After selecting that, the next alternative he may choose to pick is Chinese. Five restaurants are shown, all indicated to be within a half-mile of his location. He selects one of them and a map is provided as well as an offer of a free appetizer, good for the next hour. Because the user chooses the time and place to access the information in the pull approach, it is by definition opt-in.

3.3 Independent variables

3.3.1 Entertainment

Entertainment is also a crucial factor for mobile advertising. It is essential that the message is concise and funny, and thus immediately captures consumers’ attention. As most people have a natural playfulness, providing games and prizes via text messaging (SMS) yields high participation。Entertainment as defined by Ducoffe10 is “the ability to ful­fill an audience’s needs for escapism, diversion, aesthetic enjoyment, or emotional enjoyment”. Recent research has shown that entertainment has a noteworthy positive relationship with attitude and is deemed to be the most significant factor determining CATSA11-12,5,13-16. It has also been argued that SMS messages providing games and prizes yield high participation levels; thus is more suc­cessful in attracting and keeping customers. Moreover, entertainment services can increase customer’s loyalty and provide extra value for the customer15.

As people’s feeling of enjoyment associated with advertisements is very important in gaining their atten­tion; it is essential that such messages are brief and funny. These attributes can contribute significantly in making consumers more unfamiliar with the advertised product as well as getting them involved in a more profound manner15.

3.3.2 Credibility

Credibility of advertising is an important predictor of attitude toward the advertising. Advertising credibility is “consumers’ perception of the truthfulness and believability of advertising in general” (Barclay et al., 1995) Credibility of an advertisement is influenced by different factors, especially by the company’s credibility corporate credibility is defined as “the extent to which consumers believe that a firm can design and deliver products and services that satisfy customer needs and wants” and has been found to have direct positive effects on attitude toward the ad, the Location , and purchase intent. On the other hand, due to declining advertising Credibility, marketers continually search for innovative ways to communicate their messages. Credibility is considered the base of the consumer’s trust. The relation between the consumer and the Location is highly influenced by trust and it is a common finding that consumers in general do not trust advertising due to issues of false marketing efforts36. As risk is well associ­ated to trust; hence it should be kept to its minimum, not only by gaining consumer’s trust but through sustaining it by means of hard work.

Credibility is believed to be achieved in numerous ways; for instance listing key features and communicating to the consumer in a trustworthiness manner; since con­sumers will reject receiving ads to their mobile phones, if they cannot trust the advertiser37. Hence, creating a well-established basis of trust for mobile marketing has to be a key objective for all advertising companies. In order to do so ads providers can make advantage of referrals, suggestions and positive associations to gain trust among consumers38. Moreover, credibility can be perceived posi­tively if a spokesperson or organization is employed to sponsor an advertisement, but only if done correctly. A recent study38 has confirmed that the use of celebrities as spokespersons or endorsers can additionally enhance the level of credibility. Thus, making use of referrals or celeb­rity endorsements it is pretty common by advertisers.

The level of credibility could substantially depend upon the ad source, which means that if the source is well known for its experience and proficiency in the subject advertised for; it is most likely to be perceived as trust­worthy. Expertise comes from knowledge acquired in the subject, whereas trustworthiness refers to the honesty of the source39. Ohaninan40 has further confirmed that the consumers’ willingness to accept an ad message can be influenced by the source credibility and hence many advertisers use positive characteristics of the source, such as an

3.3.3 informativeness

Information delivered to customers through mobile devices requests to demonstrate qualitative features like accuracy, timeliness, and usefulness for the consumer. Apart from this, users need quick access to the information they are looking for in their current content of use. There is even the possibility that the information may be delivered automatically to the consumers。Informativness has been defined numerously; A definition provided by Waldt et al.5 and Ducoffe10 states that informativness is “the ability of advertising to inform consumers of product alternatives so that purchases yielding the greatest possible satisfaction can be made”, while Oh and Xu17 has defined it as “the ability to success­fully give related information”. Both definitions focus on the ability of informing the consumers of the product’s relevant qualities. Literature shows that there exists a sig­nificant positive relationship between informativeness of the mobile advertising and CATSA12,15-16.

One key objective of advertising is creating awareness and illustrating the uniqueness of the advertised product or service provided18. Higher information quality percep­tion is typically yielded if accuracy, meaningfulness and timeliness of the information provided are ensured; since Informativeness is reliant on the match between content provided by the mobile service and the subscriber’s infor­mation requirements16.

In the contemporary technological world, informa­tiveness (content) and entertainment (form) are characteristically entwined with each and hence could be included into a single construct19,10. This correlation is believed to create a positive CATSA, based on consumer’s requirements and expectation to how these should be met.

3.3.4 Irritation

“When advertising employs techniques that annoy, offend, insult or are overly manipulative, consumers are likely to perceive it as unwanted and irritating influence”(Ducoffe, 1996). Mobile advertising can provide an array of information that confuses and distracts the recipient as well as overwhelms the consumer with information. Consumers may feel confused about them and react negatively. . The tactics advertisers use when competing for consumers’ attention can be annoying to the audiences. Irritation as defined by Ducoffe10 is “the tactics used by marketers in advertisement that are annoying or against the consumer attitude or may insult consumer dignity and is perceived negatively by customers or irritates con­sumers”. Hence irritation is a phenomenon pretty much similar to reactance, where the consumer is more likely to reject advertisements perceived as intrusive. This ideol­ogy has been supported by Tsang et al.16 and Ducoffe10, as both has stated that annoying, insulting or overly manip­ulative tactics used by advertisers are one of the primary sources of irritation.

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Perceived irritation has been illustrated to be dependent on numerous factors including number of messages, the frequency of ads, the messages’ contend and their timing12,20-21. Moreover, overlapping, confus­ing information provided by SMS advertisements has also been proven to cause consumer annoyance and generate negative impact towards mobile advertise­ment22. Additionally, privacy defined as “the right ofan individual to control the information held about them by third parties”23. It is an essential factor affect­ing mobile advertisement acceptance. The personal nature of the mobile can lead to the opposition of SMS advertising since its potentially perceived as threatening their privacy. Burner and Kumar24 has confirmed that personalization can create a situation where a company gathers too much private information (such as the users whereabouts, without getting his/her consent) and uses this knowledge to provide geographic specific advertise­ment, thereby generating a feeling of intrusion for the consumers.

Based on the previously discussed, irritation has shown to yield considerable negative impacts toward SMS advertising, in contrast with both informativness and entertainment which generate positive impact25.

Recent research has indicated various ways to reduce irritation caused by SMS advertisement. One of the most straightforward ways to tackle the irritation issue is permission-based SMS advertising26-27. In the context of SMS advertising a beforehand notification is sent to the consumer-prior to sending advertisements- to ask for permission to send SMS ads and to convince con­sumers to “opt-in”; in which case a simple registration ensures sending relevant messages to the interested audi­ence. In other words, consumers require a certain degree of control to achieve favorable acceptance towards such advertisements. This can refer to control over when, where, what and how much advertising to receive through mobile, which in turn generate acceptance towards SMS advertising28. Furthermore, language employed in SMS advertisement should be understood by the target group, since it’s a major determinant of the CATSA29. Mobile advertising should as well be concise and straight to the point to yield acceptation30-31; since reading from mobile devices may take more time due to space limitations. Finally, SMS advertising should also disclose how to stop receiving further messages.

3.3.5 Personalization

Mobile advertising has gained significant attention because of the unique attributes, such as personalization (28), that offer new opportunities to advertisers to place effective and efficient promotions on mobile environments. In order to achieve the competitive advantages consistently, real time personalization will most likely be required through the use of personalization technology. Mobile commerce holds a great potential for personalization, because of the nature of mobile devices they provide personal information of (T. Lee & Jun, 2007). Personalized advertising improve the experience for companies and consumers By allowing mobile advertising providers to

collect data about demographics and location of the consumers, personalization improves the quality of mobile commerce and turns it into important medium (Dickinger, Haghirian, Murphy, & Scharl, 2004)The impact of the message can be increased by personalizing the message. Success of the target marketing is based on well-structured and maintained databases (ibid).

3.4.1 Mediator – Perceived value (PV)

behavioral intention relationship examines the direct effect of Perceived value to intention to use the technology The idea is that people form intentions toward using regardless of whether they have positive or negative feelings toward the behavior. Perceived value is defined by Davis, 1989 as “The degree to which a person believes that using a particular system would enhance his or her job performance.” (Fred D Davis, 1989) There is a positive correlation between Perceived value of mobile commerce and consumer satisfaction in mobile commerce environment (Lee et al., 2007,). The study conducted by(Soroa-Koury & Yang, 2010) also found that Perceived value is one of the key variable for prediction consumer attitude toward mobile advertising. Consumer may intend to check the usefulness of the app and its advertistments inorder to make their mind set use LBS services. What causes people to accept or reject informa-tion technology? Among the many variables that may influence system use, previous research sug-gests two determinants that are especially im-portant. First, people tend to use or not use an application to the extent they believe it will help them perform their job better. We refer to this first variable as perceived usefulness. Second, even if potential users believe that a given ap-plication is useful, they may, at the same time, believe that the systems is too hard to use and that the performance benefits of usage are out-weighed by the effort of using the application. That is, in addition to usefulness, usage is theo-rized to be influenced by perceived ease of use. Perceived value is defined here as “the degree to which a person believes that using a particular system would enhance his or her job performance.”T his follows from the defini-tion of the word useful: “capable of being used advantageously.”W ithina n organizationalc on-text, people are generally reinforced for good performance by raises, promotions, bonuses, and other rewards (Pfeffer, 1984). A system high in perceived use-fulness, in turn, is one for which a user believes in the existence of a positive use-performance relationship

3.4.2 Moderator – Location unfamiliarity

People often consume products in a variety of different situations. For example, one might eat breakfast at

Home, at a hotel, or at an airport. In making consumption decisions in these different situations, consumers must first recall from memory a set of products that may fulfill their needs and then make their final choice from this set.(S. Ratneshwar, Cornelia Pechmann, 1996).Location ununfamiliar defined as the knowledge about some locations. Location based advertising can be highly promoted when the consumer doesn’t have an idea about the location. If the consumer has more information or consumer has many other options to use at a given location, it would be wasted decision to use LBS softwares to get services. Most of the customers willing to use LBS when the situation is unfamiliar. Such as updating market in China, consumers are more likely to use LBS, because of the lack of knowledge of the location. Location ununfamiliar can be defined as when the consumer doesn’t have idea about the location and its products and services. As it’s a important moderator from customer point of view, it will be use as a moderator in the research framework。 (Campbell & Keller, 2003) conducted in which ad contentand repetition were carefully controlled and only the ununfamiliar of the Location sponsor was varied. These provideconsistent evidence that ads for ununfamiliar Locations wear outfaster, showing decreased effectiveness at lower levels ofrepetition relative to ads for unfamiliar Locations. The results alsoprovide insight to the consumer psychology underlying theeffect of Location ununfamiliar on ad wearout.Across both studies, processing of the ads was seen todiffer with repetition depending on the ununfamiliar of the Locations. Ads for ununfamiliar Locations were processed more extensivelywith repetition than were ads for unfamiliar Locations.Just as a marketer’s focus is often on building market knowledgefor new Locations and on maintaining presence for familiarLocations, consumer focus may be on learning aboutununfamiliar Locations but also on updating existing knowledgefor unfamiliar Locations. Increases in processing because of repetitionand Location unununfamiliar lead to more negative andfewer positive thoughts. Additionally, the studies provideevidence to suggest that at higher levels of ad repetition,consumers may use more extensive processing to considerthe inappropriateness of advertising tactics for unfamiliarLocations. Tactic inappropriateness was seen to mediate theeffects of ad repetition and Location ununfamiliar on messageeffectiveness. Finally, the results demonstrated that attitudetoward the ad had a greater influence on attitude toward theLocation for ununfamiliar Locations compared with familiar Locations

3.4.3 Customer innovativeness

By innovativeness we mean the predisposition of a consumer to adopt a product earlier han most others. Various studies have shown that across product categories, innovators tend to be: opinion leaders, risk takers, more likely to obtain information from mass media than through word of mouth, open to new ideas and change, relatively young etc. Marketers want to identify the segment of the market that is most likely to adopt a new product when it is the first introduced. This article describes we ask some key questions about the nature of innovativeness and try to make a correlation between characteristics of the innovators and innovativeness.(Dobre, Dragomir, & Preda, 2009)

3.5 Consumer attitudes towards LBS / Purchase behavior /rejection behavior

Attitude toward advertising is defined as a learned predisposition to respond in a consistently favorable or unfavorable manner toward advertising in general. Consumer attitudes toward advertising tend to affect their attitudes toward specific advertisements (Pyun & James, 2011)Many researchers around the world have developed many models that point out determinants of attitudes toward advertising.. Factors underlying consumers’ attitudes differ among various forms of advertising and a variety of other factors. which is most appropriate and applicable to the context of the study, three perceptual antecedents (Informativeness, Entertainment and Irritation) influence how consumers assess the value of web advertising. Additionally, the findings of this research also noted that consumers’ assessments of value have a significant impact on their overall attitudes. Therefore, Informativeness, Entertainment and Irritation are factors that should be considered when examining attitudes toward mobile advertising. and tested to show that it strengthened this model. This research will focus on four hypothesized factors: Informativeness, Entertainment, Irritation and ,Credibility..Personalization according to Lee , The primary aim of this study is to investigate the factors influencing audience attitudes towards such location-based advertising. The results indicate that entertainment, personalization and privacy concerns all have direct impacts on consumer attitudes, with situational context moderating the impacts of these factors on such consumer attitudes. conclude by offering some practical suggestions for mobile operators and advertising agencies.(Y. C. Lee, 2010).buying behavior of the customers can be depending on the attitude towards location based services. If the attitude is positive , consumer may have a positive Purchase behavior , if the attitude is negative it can be rather differ. Meanwhile both purchase behavior and reject behavior will be depend on the attitude which create by the consumers mind. LBA opportunities. The majority (87%) of the consumerinterviewees in this study expressed ununfamiliar with SMS andmobile application forms of LBAs. They oftenreceived LBAs and

promotions from well-known food and beverage vendors. Arecent survey in Singapore found perceived utility of advertisingas a strong predictor of mobile phone users’ affectiveattitude towards LBAs(Bruner & Kumar, 2007)). In this study,more thanhalf (53%) of the interviewees perceived benefits of LBAs asconvenience (searching for deals) and time and money saving(purchasing products). Some interviewees viewed LBAs ashooks to encourage them to do shopping or attend eventsnearby. Three-fifths agreed with LBAs’ short-term effects toattract foot traffic by giving incentives (e.g., vouchers anddiscounts) but felt dubious about LBAs’ capabilities to giveadvertisers long-term benefits, particularly customer loyalty.Based on consumer interviews, a pull approach of LBAs wasmore acceptable than a push approach, indicating thatapplication-based LBAs are favored more compared with SMSads. Two-fifths of the interviewees thought application-basedLBAs gave them more control over receiving LBAs. Respondent4 (personal communication, 19 March 2013) pointed out theimportance of allowing consumers to have choices: “I justwantto be given the option to decide when I want or don’t want it.

3.6 Technology Acceptance Model

The Technology Acceptance Model (TAM) explains how a new technology and the various aspects of it are received and used by the user. Though many models have been proposed previously in the field of Information Systems to describe the relationship, it is this model which has been widely acclaimed and used.

The TAM was initially proposed by (Fred D Davis, 1989)It comprises two beliefs, the perceived utilities and the perceived ease of application, which determine attitudes to adopt new technologies. The attitude toward adoption will decide about the adopter’s positive or negative behavior in the future concerning new technology. A model developed to study the acceptance of the technology by an individual taking into account, basically, both the perceived ease of use and the usefulness of the technology. One of the most frequently employed models for research into new information technology acceptance. the TAM suggests that when users are presented with a new technology, a number of factors determine their decision about how and when they will use it. This is a theoretical framework designed by Davis (1989) that proposes a relationship between users’ acceptance of a new IS and the users’ perceptions of the ease of use and usefulness of the IS. A causal model hypothesizing that actual information technology system use is affected by behavioral intentions that themselves are affected by attitudes toward use. Beliefs about the system, perceived usefulness, and perceived ease of use in TAM directly affect attitudes toward use In the TAM model, people who perceive technology as useful and easy to use will accept it more readily than those who do not, with usefulness more important than ease of use. A theory of innovation developed by Davis (1986) in which the main elements are perceived usefulness, perceived ease of use, attitude toward using technology, and behavioral intention.

Theoretical framework developed by Davis in 1989 which identify perceived usefulness, ease of use, and cultural orientation of the decision maker as key drivers of technology an information systems theory that models user acceptance. The model includes two main factors influencing individual IS use: Perceived value (will the system enhance my job performance?) and perceived ease-of-use (how difficult will it be to use the system?). TAM has been extended to include social influence and normative beliefs of others (TAM2). a model of individual acceptance of IT, stating that an individual’s adoption of IT is dependent on the perceived ease of use and Perceived value of the technology TAM is a model of user acceptance of information systems technology based on the theory of reasoned action. Two variables Perceived value and perceived ease of use lead to attitude toward use, behavioral intention to use and use of the system. Is one of the most widely used theories in IS literature. Two beliefs (Perceived value and perceived ease of use) predict attitudes, which in turn influence intended use of a technology. This intention then consequently impacts behavior of actual system usage. Perceived value is the degree to which a user thinks a technology would enhance performance or productivity in the workplace. Perceived ease of use is the degree of lack of effort required by the user in adopting a given technology. Perceived ease of


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