Effectiveness of Mobile Advertising: The Indian Scenario

Abstract

includes research articles that focus on the analysis and resolution of managerial and academic issues based on analytical and empirical or case research KEY WORDS Consumer ResponsivenessMobile AdvertisingPurchase Decision Customization CustomerizationIn the current scenario, mobile internet applications enable consumers to access a variety of services: Web information search, SMS (short message service), MMS (multimedia message service), banking, payment, gaming, e-mailing, chat, weather forecast, GPS (global positioning service), and so forth. Collectively, we denominate this wide array of services as "mcommerce." These digital media are considered to potentially improve the possibilities to reach consumers by allowing personalization of the content and context of the message. Combining customer's user profile and the context situation, advertising companies can provide the target customers exactly the advertisement information they desire, not just "spam" them with irrelevant advertisements.Drawing from Nysveen, Pedersen, and Thorbjornsen's (2005) grid of mobile internet services classification, this study attempts to critically analyse "person interactive" (goal-oriented) information and "person interactive" (experiential) messaging, targeting both utilitarian and hedonic benefits from the consumers' perspective. It analyses the effectiveness of mobile advertising in its current format (as prevalent in India). 'Effectiveness' for the purpose of this study has been concretized in terms of impact of mobile advertising on the purchase decision of the consumer. However, results of binary logistic regression indicate that mobile advertising in its current format does not have a significant impact on the purchase decision of a consumer, and that there might be other significant factors like a firm's marketing efforts (marketing mix), a consumers' socio-cultural environment (family, informal sources, non-commercial sources, social class, culture and sub-culture), and an individual's psychological field (motivation, perception, learning, personality, and attitudes) that affect his purchase decision. Mobile advertising in its current format is very generic in its approach, as substantiated by factor analysis performed on the data -marketing communication through mobiles primarily lacked in contextualization and perceived usefulness (for the target customers), and were disruptive in nature. Although mobiles are a powerful mode of marketing communication, the important issues at stake here are-what to say, how to say it, to whom, and how often.

Malaysian Consumers Attitude towards Mobile Advertising, the Role of Permission and Its Impact on Purchase Intention: A Structural Equation Modeling Approach

“…Consumers with lack of experience also found to rely heavily on the opinion of reference groups to engage (Mowen & Minor, 2001;Triandis, 1971Triandis, , 1979Zhang & Mao, 2008) or to reduce uncertainty upon adopting a particular innovation (Baron & Byrne, 2000;Muk & Babin, 2006). Parallel to the suggestion made by Ajzen (1991) and Davis, et al (1989), Tripathi and Siddiqui (2008) and Bagozzi, et al (2000) reiterated that consumers' socio-cultural environment (i.e. family, informal sources, culture and sub-culture) which is also similar to the subjective norm found to have a significant impact on their purchase decision.…”

“…Meanwhile, voluntary means the opportunity given to consumers for them to decide whether to participate or not to participate with a particular innovation (Ajzen, 1991;Bamba & Barnes, 2007;Kim, et al, 2010;Yang, 2007). Prior literatures revealed that consumers' ability on behavioral control has a significant positive influence on many behavioral intentions (Bauer, et al, 2005;Carroll, et al, 2007;Hongwei, et al, 2010;Leppaniemi & Karjaluoto, 2005;Merisavo, et al, 2010;NOKIA, 2002;Nysveen, et al, 2005;Sheppard, Hartwick, & Warshaw, 1988;Tripathi & Siddiqui, 2008;Tsang, et al, 2004;Venkatesh, et al, 2003). In fact, studies in developed countries disclosed that many consumers appreciate rights to have behavioral control (Hongwei, et al, 2010;Leppaniemi & Karjaluoto, 2005;Okazaki, et al, 2009).…”

“…In reality, the key success factor of mobile marketing depends on the consumers' permission (Barnes & Scornavacca, 2004;Carroll, et al, 2007). According to Tripathi and Siddiqui (2008), sending an advertisement without prior consent tarnished the mobile advertising industry. Previous literatures revealed that the dimension of permission has a significant effect on the relationship between consumers' attitude and the intention to purchase products and services (Barwise & Strong, 2002;Kavassalis, et al, 2003;Tsang, et al, 2004;Wong & Tang, 2008).…”

Drivers of three SMS ad responses

“…28 Intrusiveness has been viewed as one of main causes for ad avoidance 29,30 together with irritation, with both affecting attitude towards the ad 31 and eventually behaviour, to read the ad or delete it. 32 It seems the perception of intrusiveness is somehow moderated by the level of personalisation of the offer and the situation: the more the mobile ad offer is seen as of interest to individuals, the less intrusive it is perceived 33 ; and the more an individual is in a state of idleness, the less intrusive it is perceived to be. …”

“…43 Furthermore, incentives can be critical in a mobile environment where SMS ads are perceived as intrusive by nature. To the extent that consumers perceive mobile ads as relevant to them 32,33 and of value, 22,44 the less intrusive the SMS ad could be perceived.…”