Masters Dissertation by Viviane Campbell
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The purpose of this study is to assess mobile advertising acceptance among a representative sample of UK mobile users. Moreover, this study aims to examine through an online survey the motivation ...

The purpose of this study is to assess mobile advertising acceptance among a representative sample of UK mobile users. Moreover, this study aims to examine through an online survey the motivation factors that drive consumers‟ willingness to accept commercial content on their devices as well as their opinions about mobile advertisements.

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  • 1. Exploring a new paradigm in consumers’ acceptance toward mobile advertising in the UK by Viviane Costa Campbell – 08982305 Supervised by Adrian ThomasSubmitted to Manchester Metropolitan University Department of Food and TourismManagement as part of the requirement of the MA Strategic Consumer Marketing 4th September 2009
  • 2. DeclarationNo portion of the work referred to in this dissertation has been submitted in support ofan application for another degree or qualification of this University or any otherinstitution of learning. i
  • 3. AbstractPurpose –The purpose of this study is to assess mobile advertising acceptanceamong a representative sample of UK mobile users. Moreover, this study aims toexamine through an online survey the motivation factors that drive consumers‟willingness to accept commercial content on their devices as well as their opinionsabout mobile advertisements.Design/methodology/approach – The data used in this study was collected via anonline survey. A total of 130 consumers responded to this survey. Cross-tabulationsand correlations were used to investigate the co-relations between the variables andresponses to mobile advertising as well as to validate the hypothesis and questionsraised during the research process. An analysis of variance was also conducted inorder to verify, for example, the gender or age difference in relation to the keyquestions.Findings –Even though in the past year the majority of respondents have not usedmobile as a reference for purchasing at least once, the results suggest that youngconsumers are more receptive towards mobile advertisements. Furthermore, theresults indicate that incentives are a key motivating factor that drives consumers‟willingness to accept advertisements and promotions on their mobiles.Research limitations/implications – This project is limited since the topic could notbe broadly covered due to the time available and the type of research. Therefore,this gap allows future research to be conducted. For instance, mobile advertisingpractitioners‟ viewpoints could be taken into account, in order to gain an in-depthunderstanding of mobile advertising and its implications within organisations andagencies.Keywords - Mobile advertising, wireless advertising, m-advertising, consumeracceptance, UKPaper type – Masters Dissertation ii
  • 4. AcknowledgementsI would like to thank my husband Steven for all the love and support and for revisingthe English in my research. I also would like to thank my family and friends for beingpart of my life and for believing that I could finish my work successfully. A great thankto Heikki Karjaluoto who shared some of his rich knowledge of Mobile Marketingthrough our email exchanges. And last but not least, my supervisor Adrian Thomasfor all his patience and guidance. iii
  • 5. Table of ContentsChapter 1: Introduction ........................................................................................................................ 8 1.1. Research Motivation ................................................................................................................. 8 1.2. Aim, objectives and research questions.............................................................................. 10 1.3. Outline of the study................................................................................................................. 12Chapter 2: Literature Review ............................................................................................................ 13 2.1. The Digital Context ................................................................................................................. 13 2.2. Advertising overview .............................................................................................................. 14 2.2.1. Advertising expenditure in the UK ................................................................................ 14 2.2.2. Mobile advertising figures in the UK ............................................................................. 15 2.2.3. Mobile media versus Internet and traditional media .................................................. 16 2.3. Mobile environment in the UK............................................................................................... 18 2.3.1. Economic factors ............................................................................................................. 18 2.3.2. Mobile users and usage ................................................................................................. 21 2.3.3. Mobile web ....................................................................................................................... 23 2.4. Mobile Advertising .................................................................................................................. 24 2.4.1. Mobile advertising definitions ........................................................................................ 24 2.4.2. Mobile advertising formats ............................................................................................. 25 2.4.3. Push and Pull strategies ................................................................................................. 28 2.4.4. Mobile Advertising law and standards.......................................................................... 28 2.5. Consumer acceptance issues............................................................................................... 29 2.5.1. Consumer acceptance towards advertising in general .............................................. 29 2.5.2. Consumer acceptance towards technology ................................................................ 30 2.5.3. Consumer acceptance towards mobile advertising ................................................... 31 2.6. Research questions and hypothesis .................................................................................... 33Chapter 3: Methodology .................................................................................................................... 35 3.1. Research Philosophy, Approach and Strategy .................................................................. 35 3.2. Secondary Research .............................................................................................................. 36 3.3. Primary Research ................................................................................................................... 37 3.4. Internet-based survey ............................................................................................................ 38 3.5. Sampling plan .......................................................................................................................... 39 3.6. Questionnaire design ............................................................................................................. 40 3.7. Methods of analysis ................................................................................................................ 41 iv
  • 6. 3.8. Ethics ........................................................................................................................................ 42 3.9. Limitations of the methodology ............................................................................................. 43Chapter 4: Results/Findings.............................................................................................................. 44 4.1. Mobile usage behaviour ......................................................................................................... 45 4.2. Awareness of mobile advertising.......................................................................................... 47Chapter 5: Conclusions ..................................................................................................................... 58 5.1. Reflections and recommendations ....................................................................................... 60 5.2. Limitations and further research ........................................................................................... 62Reference ............................................................................................................................................ 64Bibliography ......................................................................................................................................... 73Cyberography...................................................................................................................................... 76Appendices .......................................................................................................................................... 77 Appendix A: Gantt chart (Dissertation Schedule) ...................................................................... 78 Appendix B: Dissertation Supervision Meeting Log .................................................................. 79 Appendix C: Survey Monkey receipt ........................................................................................... 82 Appendix D: Facebook survey approach ................................................................................... 83 Appendix E: Services used in the past month (Female vs. Male) .......................................... 84 Appendix F: Mobile Advertising Acceptance Survey ................................................................ 85 v
  • 7. List of figures, tables et al.Figure 1: Mobile “convergence box” of services and content ........................................................ 9Figure 2: Comparisons of advertising media.................................................................................. 18Figure 3: Total UK fixed lines and mobile subscriptions............................................................... 20Figure 4: Mobile features and services used among British consumers.................................... 22Figure 5: The most accessed media channels all day long ......................................................... 23Figure 6: What type of mobile phone do you have? ..................................................................... 45Figure 7: How many times in the past month have you used each of the followingfeatures/services on your mobile phone? ....................................................................................... 46Figure 8: How many times in the past year did you receive each of the following types ofadvertisements or promotions on your mobile? ............................................................................. 47Figure 9: What type of mobile do you have? (Female vs. Male) ................................................. 50Figure 10: What type of free product or service would you choose in order to receive mobileadvertising? (Age difference) ............................................................................................................ 51Figure 11: How many times did you use a mobile advertisement as a reference forpurchasing in the past year? (Age difference) ............................................................................... 52Figure 12: How many times did you participate in a promotion through your mobile in the pastyear? (Age difference) ....................................................................................................................... 53Figure 13: What type of free product or service would you choose in order to receive mobileadvertising? ......................................................................................................................................... 55Figure 14: What type of gift/discount voucher would you choose in order to receive mobileadvertising? ......................................................................................................................................... 56Figure 15: How many times did you use mobile as a reference for purchasing in the pastyear. ...................................................................................................................................................... 57Figure 16: How many times did you participate in a promotion through your mobile in the pastyear? ..................................................................................................................................................... 58Table 1: Advertising Expenditure in the UK* (Excluding Production Costs).............................. 15Table 2: Mobile phone subscribers and penetration (2003 – 2008) ........................................... 19Table 3: Forecast Sales of Mobile Phones: Volume 2007-2012 ................................................. 20Table 4: Definitions of mobile advertising ....................................................................................... 25Table 5: Forms of mobile advertisements ...................................................................................... 26Table 6: Mobile ad formats ................................................................................................................ 27Table 7: Demographic profiles classified by gender ..................................................................... 44Table 8: Which type of brand has sent you the following advertisements or promotions onyour mobile? ........................................................................................................................................ 48Table 9: To what extent do you agree/disagree with each of the following characteristics ofmobile advertising? ............................................................................................................................ 49Table 10: To what extent do you agree/disagree with each of the following conditions relatedto accepting advertising or promotions on your mobile? .............................................................. 54 vi
  • 8. List of abbreviationsASA – Advertising Standards AuthorityIAB – Internet Advertising BureauMMA – Mobile Marketing AssociationMMS- Multimedia Messaging ServiceSMS – Short Messaging ServiceVMS – Video Messaging Service3G – Third Generation vii
  • 9. Chapter 1: IntroductionMobile advertising is still a contemporary concept in its embryonic stage, with its firstpublished academic article in 2001. Nevertheless, the topic is relevant to the field ofstudy, as it is generating fast-growing interest not only among scholars but alsomarketers and experts (Leppäniemi et. al, 2006; Leppäniemi and Karjaluoto, 2008).Indeed, the purpose of this research is to analyse and discuss UK mobile users‟attitude toward mobile advertisements and the factors that may influence theirwillingness to receive commercial messages or content on their mobile handsets.Exploring a new paradigm in consumers’ acceptance toward mobileadvertising in the UK uses an online survey to validate mobile advertisingacceptance factors and to discover what motivates a representative sample of UKmobile users to acknowledge advertisements on their devices.1.1. Research MotivationThe chosen topic raised the interest of the researcher for both personal andacademic reasons. Firstly due to the researcher‟s academic background inAdvertising, the proposed issue is better understood and developed. Secondly, as itis an up-to-date subject, it is more enjoyable to investigate as there are a number ofrecent studies available. Finally, this research is not trivial and may contribute greatlyto the field through original findings and the contemporary theme.Although there is substantial information available on mobile usage and environment,there is still a lack of formal knowledge regarding consumers‟ acceptance towardmobile advertising in the UK (Hanley and Becker, 2008; Hanley et al., 2006;Leppäniemi and Karjaluoto, 2008; Merisavo et al., 2007). Additionally, a great deal ofauthors have highlighted the importance of mobiles in everyday life and mobilemarketing as a major business activity due to the possibilities these devices haveavailable (figure 1). Furthermore, mobile is probably the most important medium anindividual owns, as users carry it at all times and do not share the device with otherusers, enabling the use of the channel for advertising and promotional purposes in amore interactive way and with the possibility of direct consumer response. Therefore, 8
  • 10. it is imperative to understand how this medium is perceived among consumers(Balasubramanian et al., 2002; Chowdhury et al., 2006; Haghirian et al., 2005;Hanley and Becker, 2008; Internet Advertising Bureau, 2009; Leek andChristodoulides, 2009; Park et al., 2008; Silverman, 2005). Conversely, still little isknown about how mobile technologies and their application can be successfullyintegrated into marketing activities (Haghirian et al., 2005, p.1).Figure 1: Mobile “convergence box” of services and content Alarm Diary GPS Web Book Alarm Alarm MP3 Game Alarm Alarm Shopping Banking Alarm Alarm Video Photo Alarm Alarm Calculator AlarmAdapted from: Cambridge Marketing College (2007); IAB UK and Waterhouse Coopers(2008)With the contemporary busy lifestyle of UK consumers, it is difficult for marketers toreach them precisely. However, the high number of subscriptions to mobile phones inthe UK and the 120% of market penetration demonstrates that it is a potentialchannel to communicate with customers and advertise products and services(dotMobi Advisory Group, 2007; Mintel, 2008). As it is an evolving medium withlimited studies on cost-effectiveness, wireless advertising still has a low acceptance 9
  • 11. rate among practitioners in the UK, (eMarketer, 2009; Mobile Marketing Association,2009). Due to this fact, the Internet Advertising Bureau (IAB) and other associationsare directing their efforts to convince marketers and advertisers of the benefits ofmobile advertising, in order to boost this activity in the country (eMarketer, 2009).In addition, a poll of over 1,600 UK mobile phone users in 2008 was conducted bythe marketing firm Velti, resulting in 79% agreeing that mobile marketing andadvertising was expected and unavoidable. Even so, the marketing messages stillneed to be relevant, fun and rewarding, to make sure consumers engage in theadvertisements. Many users are easily distracted and use their phones when theyhave a few spare minutes when commuting, at work or at home. This has to be takeninto account when planning the marketing strategy (Internet Advertising Bureau,2009).This does not mean that consumers are willing to receive marketing-relatedmessages in their mobile devices. According to Kondo et al. (2008), one study hasrevealed that 50% of consumers would not accept marketing communications ontheir devices, even if they received compensation for it. However, there are othermobile users who present a more positive attitude toward advertisements on theirdevices. Due to this fact, it is imperative to understand the behavioural reasons thatdrive consumers to accept mobile advertisements and promotions.1.2. Aim, objectives and research questionsBased on the discussion above, the aim of this research is to critically assessconsumers‟ acceptance of mobile advertising, by exploring a new paradigm inmarketing communications. In order to achieve this aim and to guide the entire study,the subsequent key objectives are set: 10
  • 12. 1. To assess advertising and mobile advertising figures in terms of media usage in the UK; 2. To compare mobile as a communication channel with online and traditional channels; 3. To identify the current situation and trends of the mobile market and mobile advertising; 4. To determine the factors associated with consumers‟ acceptance of mobile advertising and the theories associated; 5. To evaluate how a representative sample of UK mobile users perceive mobile advertising; 6. To make recommendations for the future of mobile advertising campaigns in targeting their segments efficiently.Additionally, with the intention of reaching the aim and objectives proposed for thisstudy, the following research questions are stated:RQ1. To what extent do the demographic variables of gender, age and level ofeducation affect the way consumers perceive and accept mobile advertising?RQ2. What drives consumers to consider accepting advertising on their mobiledevices?RQ3. If incentives can increase consumer willingness to accept mobileadvertisements, which type of compensation would work better?RQ4. Are consumers more willing to buy a specific brand or product after receiving amobile advertisement?Since mobile advertising is very broad and extensive, this study will only focus onexamining consumers‟ opinions and behavioural intentions to accept advertisementsand promotions on their mobiles. To further limit the research, a sample among UKmobile users was chosen for consideration. 11
  • 13. 1.3. Outline of the studyThis study contains five chapters, which are structured as following. The first chaptercontains a brief introduction where the reasons behind the topic choice are stated aswell as the aims and objectives of the research. Then, the advertising industry andmobile advertising figures in the UK are discussed in chapter two, as well as a briefcomparison between mobile and other communication channels. At the samechapter, an overview of the British mobile environment is made, followed by ananalysis of mobile advertising definitions, formats, strategies and standards. Afterthis, consumer acceptance theories are looked at with a special emphasis on mobileadvertising acceptance. In chapter three the research methods and design areexplained in detail. This is followed by the analysis of the online survey of consumeracceptance toward mobile advertising is summarised in chapter four. Finally, in theconclusion, an overview of the entire study is made, including its limitations, and theresearcher reflections and gives recommendations.Overall, an academic research assessing customers‟ acceptance of mobileadvertising in the UK is valuable and may contribute towards the foundation of atheoretical model of mobile advertising and consumer acceptance of the medium. 12
  • 14. Chapter 2: Literature Review2.1. The Digital ContextThe contemporary world is driven by technology, which is one of the main forces thatinfluence the business environment as well as people‟s lives. Furthermore, with thedynamic and rapidly changing technological environment, organisations need to beaware of these changes and adapt if they intend to survive in this complex andturbulent business scenario (Kotler and Armstrong, 2008).As noted by Vervest and Dunn (2000, p.1), todays new digital business technologiesenable organisations to achieve near complete communications and instant accessto information. In this world dominated by technology, where commercial contentneeds to compete constantly with amateurs to get peoples attention; it is becomingharder for organisations to communicate efficiently (Anderson, 2006).The way of communicating brands and organisations is facing a transitional period,where the old tools are still available and new ones are being introduced. As Kotlerand Keller (2009) state, technological changes have significantly altered themarketing world. The rapid spread of broadband Internet, ad-skipping digital videorecorders, versatile mobile phones and mp3 players have made marketers re-evaluate traditional practices. It has also affected the way consumers perceivecommunications.Hence, in this new era of networked consumers and digital everything (Anderson,2006, p.3), effective communication needs to have online and offline marketingstrategies combined, integrated and supporting each other constantly (Chaffrey et al.,2006; Howarth, 2007). Similarly, Miller (2005) argues that digital communicationsrepresent an emergent revolution that is going to generate a greater transformation ineveryday life. Digital media provides a combination and convergence of text, sound,image and data in such an integrated format never imagined before. 13
  • 15. Digital media has not totally matured as a marketing channel and has not been fullyexploited yet. Nevertheless, practitioners are becoming more confident and areintegrating digital channels as part of their marketing and communications plan(Hoare, 2008). Moreover, as digital prices are dropping, it is now cheaper to exploitwhat digital has to offer (Simpson, 2008). Hence, organisations wanting to cease theopportunity to create a sustainable competitive advantage, will need to learn how touse digital business technologies effectively (Vervest and Dunn, 2000).2.2. Advertising overviewAs defined by Kotler and Keller (2009, pp. 538), advertising is any paid form ofnonpersonal presentation and promotion of ideas, goods, or services by an identifiedsponsor. Moreover, advertising has changed significantly because of technologicaladvances in the industry and even in today‟s complex digital world, ads can still bean effective tool to build brands, educate people and spread messages (Vatanparastand Asil, 2007).As noted, the growth of digital media has brought new challenges to traditionalagencies. Combined with this fact, consumers are more media savvy and have morecontrol than ever over communication channels. Contemporary advertising agenciesare becoming aware of this and therefore, beginning to concentrate their effortsaround digital media, especially the Internet (Howarth, 2007; Sorrel and Salama,1996). Additionally, there has been a move away from traditional marketing media,such as TV and radio, to more direct methods, such as direct mail and the Internet.The increase in mobile advertising complements this, allowing marketers even higherlevels of effectiveness and impact (Burgan, 2009).2.2.1. Advertising expenditure in the UKAccording to World Advertising Research Center (2008), the total media expenditurein the UK was estimated slightly over £18 billion in 2007, which correspond to a 4%growth in relation to 2006 (table 1). Internet represents the strongest growingmedium, which confirms the digital trend. Even though it has fallen almost 2% since 14
  • 16. 2002, television is still the market share leader in ad spend with 22.1% of the totalmarket.Table 1: Advertising Expenditure in the UK* (Excluding Production Costs) Current prices, % change % share £m yr-on-yr of totalTelevision 3,996 2.3 22.1Internet 2,813 39.5 15.6Regional newspapers 2,747 -1.3 15.2Direct mail 2,171 -6.5 12.0National newspapers 1,928 0.8 10.7Outdoor & transport 976 4.6 5.4Business & professional magazines 968 -4.7 5.4Directories 960 -3.4 5.3Consumer Magazines 791 -2.7 4.4Radio 497 3.4 2.8Cinema 207 10.1 1.1TOTAL 18,053 4.0 100.0Source: World Advertising Research Center (2008).*Mobile advertising expenditure is not considered in this study.2.2.2. Mobile advertising figures in the UKEven though mobile advertising has not reached its maturity across the globe andrepresent just a small amount of total advertising and also mobile revenue, itssubstantial growth has been forecasted for the upcoming years while the traditionalmedia declines (Burgan, 2009; Interactive Advertising Bureau, 2008a; Kimberley, 15
  • 17. 2009; Vatanparast and Asil, 2007). By 2011, the mobile advertising market isexpected to grow to £7 billion worldwide and to £187 million in the UK (Berg Insight,2006; Interactive Advertising Bureau, 2008b; Leek and Christodoulides, 2009;Leppaniemi and Karjaluoto, 2008; Vatanparast and Asil, 2007). According to Leekand Christodoulides (2009, p.44), If those forecasts prove correct, mobile advertisingwill become the fastest growing promotional channel.In 2008, even though it was a difficult year for the advertising industry in the UK, thecountry saw a total mobile advertising revenue of £28.6 million, represented by amobile ad spend growth of 99.2% between 2007 and 2008 (IAB UK and PriceWaterhouse Coopers, 2008; Kimberley, 2009). At the same year, mobile Internetdisplay ads, which can be represented by banners, text links and games, reached£14.2 million, accounting for almost half of all mobile ads spend. However, themajority of Mobile Advertising spending is still represented by text messaging(dotMobi Advisory Group, 2007; Kimberley, 2009).2.2.3. Mobile media versus Internet and traditional mediaKondo et al. (2008) and Haghirian et al. (2005) state that some experts believe thatmobile devices will soon be the most significant medium for advertisers. Mobile is apromising media channel as it can deliver effectively targeted, one-to-one andpowerful message communications instantly and with low costs (Henriksson, 2008;Vatanparast and Asil, 2007). Even well-known brands such as Coca-cola, Pepsi,Sony, MTV, Disney and Nike are using mobile as a communication channel in orderto reach their consumers (eMarketer, 2009; Jin and Villegas, 2008; Leppaniemi andKarjaluoto, 2008; Vatanparast and Asil, 2007).Differently from Internet and traditional channels where consumers generally remainanonymous, mobile is exceptionally personal and usually has only one user.Therefore, it is a very accurate communication channel to reach consumers broadlyand also to establish close contact with them (Bamforth et al 2006; Hanley et al.2006; Mobile Marketing Association, 2007, 2009; Park et al., 2008). One of the major 16
  • 18. possibilities for marketers using mobile media is to deliver a customised message toconsumers, which can be based on information provided by them during previouspurchases or their feedback when they opt in to receive mobile ads. This advantageenables marketers to enhance the relationship with potential or existing customers,by engaging them in campaigns that are actually of their interest. For instance, whensending a discount voucher from their favourite restaurant (Chowdhury et al., 2006;Haghirian et al., 2005; Jin and Villegas, 2008; Kotler and Keller, 2009; MobileMarketing Association, 2009; Tähtinen and Salo, 2004).This is also noted by Hanley and Becker (2008), Vatanparast and Asil, (2007), andJin and Villegas, (2008) who observed that mobile devices have a great advantageover traditional channels, as they have the possibility to target the individual in apersonalised, exclusive and interactive way, which permits an instant dialoguebetween advertisers and their consumers. Additionally, the mobile channel providesits users with a direct call to action which is very difficult through other channels(Kondo et al., 2008). This means that advertisers are able to contact potentialcustomers anytime and anywhere (Jin and Villegas, 2008, p.6).Although mobile media has its advantages over Internet and traditional channels, italso has some usability and technological limitations. Firstly, if compared withcomputers, the size of the screen and the numeric keypad layout of mobilesrepresent a great issue for marketer, by limiting the design of advertisements andalso the interactivity level with consumers. Moreover, mobile phones have differentfeatures, such as display formats and display colours, as well as operating differentlyfrom one another. This fact also limits advertisements, since users who are familiarwith a specific handset may not be able to download some content when using adifferent model, for example. Additionally, mobile devices also have limitedcomputational power, memory and battery life. Text messaging is another constraintfor marketers, as different from emails, the message must be concise, clear to therecipient and not have more than 160 characters (Ahohen, 2008; Benbunan-Fish andBenbunan, 2007; Haghirian et al., 2005; Mobile Marketing Association, 2009). 17
  • 19. The differences between mobile and online or traditional media exist (figure 2.1), butthey are minor. However, it does not mean that the same standard ad format that isused on TV or in a magazine, for example, can be directly transferred to mobiledevices. Not only the message but also the design and content must be adaptedaccordingly with the necessity of the medium in order to engage the audience(Internet Advertising Bureau, 2009; Park et al., 2008).Figure 2: Comparisons of advertising mediaSource: Park et al., 20082.3. Mobile environment in the UKCurrent mobile capabilities and services go beyond imagination. With thirdgeneration (3G) technologies, mobile consumers use their devices for much morethan just making and receiving calls. They have a great deal of services availablewhich carry not only content but also advertisements available from wireless web,short message service (SMS) and multimedia message service (MMS) (Benbunan-Fish and Benbunan, 2007; Internet Advertising Bureau, 2009; Mobile MarketingAssociation, 2009; Nasco and Bruner II, 2008). Mobile and handheld devices areseen by their users as the last personal space they can still control and the mostimportant channel to stay in contact with other people. Therefore, marketers mustunderstand the consumer‟s need for privacy and balance it with their own commercialneeds (Hanley et al., 2006; Jin and Villegas, 2008). 18
  • 20. 2.3.1. Economic factorsWorldwide, there are more than 1.7 billion mobile subscribers, which means thatabout 25% of the population are connected through mobile devices (Jin and Villegas,2008). In the UK, there were an estimated 74 million mobile phone subscriptions in2007, and the forecast is that it will continue to grow in the following years as peoplestart to use a secondary mobile device, reaching 78 million connections in 2010(Cambridge Marketing College, 2007; Ofcom, 2007; Mintel, 2008; Mobile OperatorsAssociation, 2009). This number represents more than the total UK population thatwas estimated to be 61,113,205 in 2007 (CIA, 2007; Interactive Advertising Bureau,2008b).This fact makes the UK one of the most attractive and competitive European marketsregarding mobile phone subscription and penetration (table 2). This can be explaineddue to the fact that mobile devices are an important part of UK consumers‟ dailylives, as they are considered the society “on the move” (Mintel, 2008). Additionally,the increasing usage of Smartphones in the UK which account for 9% of the totalmarket with a growth of 9.9% between November 2006 and December 2007, havehelped the UK mobile market boost (Burk, 2008).Table 2: Mobile phone subscribers and penetration (2003 – 2008) Subscriptions Year on year % of total Total population (Millions) growth (%) population2003 52.8 - 59.6 892004 59.7 13.1 59.8 1002005 65.5 9.7 60.2 1092006 69.8 6.6 60.6 1152007 73.5 5.3 61.0 1212008 76 3.4 61.4 124Source: Mintel (2008) 19
  • 21. Mobile phones volume sales had 3.3% growth in 2007 compared with the previousyear. Although this growth is still low, it is expected that with the entrance of newsophisticated and highly technological phones in the market, such as the iPhone, thesales will have boosted by 2012 (table 3). Another important point is that the mobilephone unit price will fall significantly, which will also contribute to the volume salesgrowth (Euromonitor International, 2008; Mobile Operators Association, 2009).Table 3: Forecast Sales of Mobile Phones: Volume 2007-2012000 units 2007 2008 2009 2010 2011 2012Mobile phones 18,247.2 19,269.0 20,290.3 21,284.5 22,284.9 23,265.4Source: Euromonitor International (2008)According to the O2 Report (2004), the mobile telephone industry contributedsignificantly to the UK economy in 2003, with £22 billion to the GDP, which accountfor 2.2% of the country‟s total economic output. In the telecom sector, the number ofmobile subscriptions has overtaken the number of fixed lines by more than two-to-one in 2006, which can be seen in figure 3 (Interactive Advertising Bureau, 2008b;Ofcom, 2007). Indeed, the number of customers who claim that their main method ofmaking calls is through mobile devices has increased from 21% in 2004 to 30% in2005, and these numbers do not seem to fall (Cambridge Marketing College, 2007).Figure 3: Total UK fixed lines and mobile subscriptionsSource: Ofcom (2007) 20
  • 22. 2.3.2. Mobile users and usageThe profile of mobile users is composed of 42% female and 58% male. The majorityof them are young people aged between 18-34 followed by those aged 35-44 years,which accounted for 47% and 21% respectively of total mobile consumers (InternetAdvertising Bureau, 2009). If compared with other media, mobile devices also havethe capability to reach a wider range of socio demographic groups, including lowincome and elder segments (Cambridge Marketing College, 2007).Hence, mobile device consumption strongly varies according to niche markets.Youths, for example, are heavy users of SMS and are also capable of stronglyinfluencing patterns of consumption amongst peers. The relationship betweencustomers and mobile technology and how it influences individuals‟ lifestyle is alsoimperative. Mobile services and the understanding of their usage must be consideredas it can indicate customer responsiveness and acceptance to mobilecommunications (Carroll et al., 2007; Mort and Drennan, 2007).Independently from the location, mobile devices enable marketers and brands toactively and heavily interact with their customers through photographs, videos andhigh-quality audio (Haghirian et al., 2005). Although UK mobile users are stillpredominantly using their devices to make voice calls and to send text messages,they are increasingly using all the services and features available to them (InternetAdvertising Bureau, 2009; Nasco and Bruner II, 2008). According to the Mobile LifeEuropean Report (2007), 51% of mobile consumers have used Bluetooth, 46% haveaccessed the mobile web and 37% have recorded a video (figure 4). Considering theusage pattern, there is a slight variation between gender and noticeable differenceamong generations. 21
  • 23. Figure 4: Mobile features and services used among British consumersSource: Mobile Life European Report (2007)Besides that, no other media spends the same amount of time or is so close to itsowner as mobile phone devices are. According to the Orange UK (2007), 81 % ofmobile consumers use their devices at least once a week and 47% use them on adaily basis, even at home when they have other media available. Moreover, asrevealed by Mobile European Life Report (2007), 1 in 6 British people consider theirmobile devices their most important possession. In addition, Orange UK (2007)reports that compared with TV, computer, radio and print, mobile is the mostaccessed media channel between noon and 6pm (figure 5). In the same report, itwas found that 87% of mobile consumers use it at home, 73% when out, 48% atwork, and 47% on transport. Moreover, more than 60% of mobile users prefer to stay24 hours a day connected, without turning off their devices. Hence, it indicates thatadvertisers have the potential to reach their customers anytime and anywhere(Internet Advertising Bureau, 2009; Silverman, 2005). 22
  • 24. Figure 5: The most accessed media channels all day longSource: Orange UK (2007)2.3.3. Mobile webMobile Internet usage and penetration is sharply increasing in the UK, according tosome studies reported by eMarketer (2009). In terms of mobile Internet usage, it hasgrown from 8.8 million users in December 2007 to 11 million users in December2008. This growth of 28% is driven by several reasons, which are new handsets withInternet-capability being introduced in the market, improved user experience, highvolume, better quality content, fast data speeds and enhanced search functionality(Internet Advertising Bureau, 2009).Younger people between 15-34 years are regarded to be the leader segment inmobile web usage, representing 56% of the total users, with the male populationbeing the majority of them. Although mobile web activities are growing, such asaccess to news, sports, weather, entertainment and online shopping, it is still low ifcompared with other mobile services used by UK consumers, where text messagingis the most popular (eMarketer, 2009; Mobile Marketing Association, 2009). 23
  • 25. 2.4. Mobile AdvertisingBeing a fast-growing sector, mobile advertising provides brands, agencies andmarketers with many opportunities to communicate with potential customers directlyon their mobile devices (Mobile Marketing Association, 2009). However, Leppäniemiand Karjaluoto (2008) present that there is a lack of connection between mobileadvertising and organisation‟s communications marketing strategies. Kotler andKeller (2009) also highlight this gap and argue that organisations need to adopt aholistic marketing orientation in order to gain competitiveness, without forgetting tofocus on the customer and the emergent tools available to reach them, such as the“third screen”, which is represented by the mobile, after the TV and the computer.Carroll at al. (2007) adds that mobile advertising is a great opportunity as it isexpected to grow on a global scale in the following years.2.4.1. Mobile advertising definitionsAlthough it is an emerging concept, there are a wide range of definitions for mobileadvertising, also known as wireless advertising or m-advertising (Haghirian et al.,2005). It could be defined as any paid message communicated by mobile media withthe intent to influence the attitudes, intentions and behaviour of those addressed bythe commercial messages (Leppäniemi et al., 2004, pp. 97). Another alternativecould be identified as ads sent to and presented on mobile devices, i.e. cellular,phones, PDA‟s, and other handheld devices (Tähtien and Salo, 2004, pp.2). It couldalso be simplified by saying that it is a type of advertising which uses mobile phonesor handheld devices as a medium to communicate with consumers or prospects.In their review, Leppäniemi et al. (2006) made a detailed analysis of allconceptualisations available on published articles and they have identifieddifferences and similarities of these definitions, which can be seen on table 4. 24
  • 26. Table 4: Definitions of mobile advertising Author DefinitionsKomulainen et al. (cited by ... advertising using mobile devices as a communication vehicle.Leppäniemi et al.,.2006, p. 37) The usage of interactive wireless media (such as cellular phone and pages, cordless telephones, personal digital assistants, two-Haghirian and Madlberger (cited way radios, baby cribs monitors, wireless networking systems,by Leppäniemi et al.,.2006, p. GPS-based locators and maps) to transmit advertising message to37) consumers in form of time and location sensitive, personalised information with the overall goal to promote goods and services.De Reyck and Degraeve (citedby Leppäniemi et al.,.2006, p. ...advertising via mobile phones...37)Petty (cited by Leppäniemi et ...form of advertising...that includes short text messages sent toal.,.2006, p. 37) telephones, personal digital assistants, and other wireless devices.Yunos et al. (cited by ...advertising and marketing activities that deliver ads to mobileLeppäniemi et al.,.2006, p. 37) devices over a wireless network...Tsang et al. (cited by ... sending advertising messages to mobile devices such as mobileLeppäniemi et al.,.2006, p. 37) phones or PDAs through the wireless network.Brassington and Pettit (cited by ... the use of text messaging via a mobile telephone as a means ofLeppäniemi et al.,.2006, p. 37) marketing communication.Adapted from: Leppäniemi et al. (2006, p. 37)2.4.2. Mobile advertising formatsMobile ad can be used as a stand-alone medium or in cross-media campaign plansto support other media ad campaigns like on the TV or Internet (Mobile MarketingAssociation, 2009). Moreover, marketers are able to build new and long-termrelationships through sending only relevant and personalised content to theirconsumers (Haghirian et al., 2005). 25
  • 27. Table 5 lists some forms of advertisement that marketers are using to engage andinteract with potential customers through mobile devices (Mobile MarketingAssociation, 2009; Park et al., 2008). In addition, when designing a mobileadvertising campaign, there are multiple channels available to reach the consumer.Those include mobile websites, mobile applications, mobile messaging and mobilevideo (Mobile Marketing Association, 2009).Table 5: Forms of mobile advertisementsClick to call – users place an outgoing call to the content provider or advertiserClick to locate – users find, for example, the closest car dealer or movie theatre, enabled by location-basedserviceClick to order brochure – users receive marketing materials by supplying their postal addressClick to enter competition – users enter text or sweepstake to win prizesClick to receive email – users receive an email and a link to online site by supplying their email addressClick to receive mobile coupons - users receive an electronic coupon on their mobile phone that can beredeemed immediately at a participating merchantClick to buy – users make a purchase paid for with a credit card, added to their monthly mobile bill or using someother form of mobile paymentClick to download – users download content, including logos, wallpapers or ring tones, onto their mobile phonesClick to enter branded mobile website – users click a banner to get connected to standing or campaign-specificmobile websiteClick to forward content – users forward relevant content to friends, creating a viral campaign effectClick to video – users click a banner to view an advertiser‟s commercial for a product or serviceClick to vote – users reply message ballot or poll from their mobile phone and provide marketers and brand withvaluable research insightsSource: Mobile Marketing Association (2007, p.1)Regarding mobile Internet ad formats, marketers have many opportunities availableat the moment, which are very similar to online ads, such as text links, banners, adfunded content, pre/post roll video, and search engines (dotMobi Advisory Group,2007; Internet Advertising Bureau, 2009). Furthermore, concerning to non Internetmobile ad formats, there are SMS, MMS and VMS (Video Messaging Service), 26
  • 28. Bluetooth, games and several emerging formats being used to deliver commercialcontent to consumers (Internet Advertising Bureau, 2009). All these formats citedbeforehand are explained in detail in table 6.Table 6: Mobile ad formatsMobile Internet advertising formatsText links - offer a low cost and low risk entry method to mobile advertising especially for DR clientswith them being bought on a CPC basis.Banners and super banners - again like on the PC, and we are starting to see more opportunities foranimations and creativity.Ad funded content – as technology and demand has opened up the content on the mobile, so has theopportunity to advertise, and with there still being reluctance and misunderstanding in terms of datacharges, sponsorship, which enables free or reduced cost content for the consumer, has increased.Pre/post roll video – often linked to the above, usually 15 second video clips which can be supportedby clickable banners making them great for both branding and DR.Search – basics are the same as online but results are more location based. Major benefits withsearch on the mobile over search on the PC is the less cluttered environment and lower CPC due toless advertisers bidding on keywords.Non Internet mobile advertising formatsSMS (text), MMS (picture) or VMS (video) – can either be sent out to own customer database or to atargeted opted in bought list. This can be a great form of CRM or due to the viral benefits of mobile agreat way of distributing money off coupons or incentives.Bluetooth – an alternative to WAP for broadcasting information. Generally installed at set locationssuch as cinemas or train stations and can distribute opted in content within a limited area.Mobile games – often linked in with ad funding or sponsorship, can be as simple as a full pageinterstitial before the games, or a fully integrated branded experience.Emerging formats - Mobile TV, screen savers or the new mobile phone ad funded directory enquiriesservice, making use of the original purpose of the mobile „voice‟.Source: Internet Advertising Bureau (2009)Due to the fact that feature mobiles with limited capabilities are still dominating themarket worldwide and in the UK, SMS has been the leading method ofcommunication through mobile devices. Nonetheless, MMS and VMS are expectedto popularise more in the near future, creating a positive impact on consumers‟ brandrelationships (Merisavo et al., 2007; Park et al., 2008). 27
  • 29. 2.4.3. Push and Pull strategiesSimilarly to online advertising, in order to reach customers, both “push” and “pull”marketing strategies can be used in mobile advertising. Push mobile advertisingrefers to marketers sending advertisements directly to consumer‟s mobile devices,which may be solicited, when consumers agree to receive content on their mobiles,such as sponsored sports alerts. Indeed, this strategy requires a previous approvalfrom the consumer who may demonstrate some resistance to this approach, as theymany times receive unsolicited promotions on their mobile via SMS (Hanley et al.,2006; Leppaniemi and Karjaluoto, 2004; Nasco and Bruner II, 2008; Park et al.,2008). Pull mobile advertising refers to a consumer responding to and requesting or“pulling” information from the marketer (Hanley et al., 2006, p. 51), therefore, whenthey choose to access the commercial message or content, including any relatedadvertising (Leppaniemi and Karjaluoto, 2004; Nasco and Bruner II, 2008; Park et al.,2008). Overall, Nasco and Bruner II (2008) indicate that in the future whether throughthe pull or push strategies, consumers will probably be faced with some form ofcommercial content on their devices.2.4.4. Mobile Advertising law and standardsIn the UK, the standards of mobile advertising have not yet been fully established.However, the Internet Advertising Bureau (IAB), Mobile Marketing Association (MMA)and other industry bodies are controlling mobile advertisements and working toimprove mobile ad standards. These standards will open the market for mobile webadvertising, as most mobile advertising in the country is still predominantly based onSMS (eMarketer, 2009; Mobile Marketing Association, 2009).According to the Advertising Standards Authority (ASA), the self-regulating body thatcontrols advertising in the UK, all ads that appear in new media, which include mobilechannel, must be under the same rules that apply to advertisements in traditionalmedia (Advertising Standards Authority, 2009). Mobile advertising is also regulatedby the Mobile Marketing Association (MMA), which has its own global code ofconduct (Mobile Marketing Association, 2008) in order to create guidelines for mobilemarketers and protect the medium from irresponsible and unethical marketers. The 28
  • 30. major aims of these bodies are to guarantee consumers‟ privacy and securitystandards.Furthermore, according to the The Privacy and Electronic CommunicationsRegulations, the British Code of Advertising, and Mobile Global Code of Conduct, noorganisation can send unsolicited electronic communication to consumers, includingSMS and MMS. Hence, marketing and promotional messages can only be sent toindividuals if the person consents (opt-in) or explicitly asks to receive them.Consumers also have the right to stop receiving these messages (opt-out) anytimethey wish. Therefore, permission-based marketing is the only form of marketingcommunication available for marketers in the UK to access mobile consumers(Hanley et al., 2006). Moreover, the content of any type of mobile advertising mustalso meet the laws mentioned previously (Advertising Standards Authority, 2009;Information Commissioner, 2009; Mobile Marketing Association, 2008).2.5. Consumer acceptance issuesConsumers‟ attitudes and perceptions toward wireless advertising are still evolving,and some studies have shown that their attitudes can be negative if they do notconsent to it. As noted, consumer permission is one of the drivers for mobileadvertising acceptance. Additionally, entertainment value and information value alsocontribute towards positive perceptions regarding advertising via mobile devices(Leppäniemi and Karjaluoto, 2006). Carroll et al. (2007) argue that mobile advertisingacceptance is directly connected with the acceptance of advertising in general aswell as mobile technologies. Nevertheless, researchers have been adopting thetraditional advertising theories and Internet usability to develop a mobile acceptancemodel, as no one theory has generally been accepted regarding mobile advertisingacceptance (Hanley and Becker, 2008). 29
  • 31. 2.5.1. Consumer acceptance towards advertising in generalAdvertising must be analysed by taking into consideration the social and culturalcontext it is part of and the role it plays in this framework in order to understandcustomer reception and behaviour towards ads (Aitken et al., 2008). Advertising itselfgenerally has a negative impact on individuals‟ minds and many of its aspectsreceive a great deal of criticism. Many consumers and critics state that advertising ismanipulative and also promotes materialistic social values. Children and teenagersare also perceived as vulnerable targets of advertisements and promotions.Advertising can also be seen as intrusive and is easily ignored or avoided by theaudience in both traditional and digital media. Due to the fact that contemporaryconsumers are more conscious about what they want to buy as well as being awareof the role of advertising, many of them are sceptical towards it. Conversely,consumers accept advertising as part of modern life and most of the time theyassociate it as informative. Additionally, when they see advertisements as clever,original and humorous, they find it entertaining, presenting a more positive attitude(Cheung, 2007; Wang et al., 2002).2.5.2. Consumer acceptance towards technologyThe success of new technologies basically relies on consumers‟ adoption of theinnovation. Mobile users, for example, must be aware and have a fair understandingof the new applications and services available on their devices to accept newentrances. According to the Technology Acceptance Model, users must perceive thenew technologies usefulness and perceived ease of use. However, this is not theonly approach that determines consumers‟ acceptance toward technologies. Thenetwork externalities approach points out that other users can strongly influence theacceptance behaviour among a certain group. Moreover, other variables may alsoaffect consumers‟ behaviour, such as its credibility, its perceived benefits, its costs,availability in the market, and the most important is consumers‟ previous experiencewith the technology and its transference to new technology applications (Benbunan-Fish and Benbunan, 2007; Wang et al., 2008). 30
  • 32. 2.5.3. Consumer acceptance towards mobile advertisingSince consumers are progressively more exposed to mobile advertising, theiracceptance is also increasingly considered as a critical success factor. For themajority of users, their mobile phones are seen as very personal devices, andconsequently, mobile advertising can frequently be considered intrusive, even morethan general advertising. Moreover, as mobile handsets generate an emotionalattachment with their users and have the capability of storing a great deal of personalinformation about friends, family and business contacts; there is generally littlemotivation among consumers to receive advertising on their devices (Leek andChristodoulides, 2009; Merisavo et al., 2007)Nevertheless, relevance and added value, such as discount vouchers and specialoffers, can enhance consumer acceptance significantly (Leppaniemi and Karjaluoto,2008; Merisavo et al., 2007; Tähtinen and Salo, 2004). Incentives, such as a freedownload or discount vouchers, as well as consumers‟ intention to receiveadvertisements can also have a positive impact on consumer attitudes towardsmobile advertising (Vatanparast and Asil, 2007). For instance, quite a few airlinesand hotels in the US are now offering extra points on loyalty cards if consumersaccept to receive advertisements on their mobiles (Nasco and Bruner II, 2008).Furthermore, entertaining messages and relevant content might have a positiveimpact on consumers‟ attitudes whereas high frequency of advertising exposure cangenerate a negative impression (Haghirian et al., 2005; Vatanparast and Asil, 2007).Different from TV or radio where advertising can easily be avoided or ignored throughthe use of a channel switch or even by just turning off the equipment, mobileadvertising as well as online formats cannot be easily skipped (Ha, 2008). Hence, agreat deal of consumers are still relatively uncomfortable with the idea of mobile as acommercial tool and they are also unconvinced about its feasibility and security. Asnoted, consumers consider their mobile handsets a very private item, even anextension of the self. Therefore, they are very sensitive about unknown individuals ororganisations delivering messages or contents that penetrate their mobile space andare increasingly intolerant towards these messages. Most consumers report mobileads as another form of spam. Furthermore, if marketers intend to efficiently use the 31
  • 33. mobile communication channel, they should first recognise how mobile consumersperceive and evaluate mobile devices as a medium, since their perceptions towardthe medium directly affect their attitudes toward advertising (Haghirian et al., 2005;Nasco and Bruner II, 2008).There are many factors driving consumers‟ acceptance towards mobile advertising.Firstly, their attitudes towards general advertising are directly related to mobileadvertising. If for instance they do not have a positive relationship with other forms ofadvertising, it is more likely that this feeling is transferred to mobile devices (Hanleyet al., 2006; Vatanparast and Asil, 2007). Their attitudes towards technologies,especially their familiarity with the Internet, also affect mobile advertising acceptance(Hanley et al., 2006). According to Scharl et al. (2005), acceptance of mobilemarketing campaigns should be higher among Web users than among the overallpopulation.Leek and Christodoulides (2009) state that friends also play an important role inmobile ad acceptance, especially among young consumers, who expect to receiveshort, concise, and entertaining messages from their favourite brands. Due to thisfact, mobile marketing practitioners tend to target youths, as they are more likely tobe innovators, to adopt new technologies first and to be more receptive toadvertisements. Leppaniemi and Karjaluoto (2008) add that usually, men show morepositive attitudes toward advertising in general than women, even preferringinteractive advertisements than the traditional ones. It is not just gender and age thatare the demographic variables impacting mobile ad acceptance, other demographicaspects, such as annual income and level of education can strongly affect the wayconsumers perceive and interact with mobile ads. For instance, it is believed thatindividuals with less education and lower income are more susceptive to receivingcommercial content on their devices (Hanley et al., 2006; Leppaniemi and Karjaluoto,2008). 32
  • 34. As noted, there are potential problems concerning mobile marketing and advertising,such as spam and privacy. The major concern among consumers is that wirelesscommunication could grow and have the same issues as email marketing, whichcould jeopardise the mobile ad value and opportunities (Park et al., 2008). Asrevealed by the Advertising Standard Authority study (2005), consumers report theirconcerns of receiving commercial content on their mobiles. According to the study,all respondents were more suspicious about mobile advertising compared to othermedia, text message-based advertisements being the most obtrusive and annoying,which the majority do not even reply to it. On the other hand, mobile web bannersevoked less apprehension among consumers, mostly with trusted brands(Advertising Standards Authority, 2005).Even though there is great interest from organisations to reach consumers in moreinteractive ways and also from a great deal of consumers in receiving mobileadvertisements, as noted beforehand, there are several concerns regarding the useof mobile as a commercial channel (Nasco and Bruner II, 2008). Thus, mobileoperators, which are the main trusted partners from a consumer perspective, andalso marketers, must ensure that mobile advertising will not be transformed intoanother spam machine (Burgan, 2009).2.6. Research questions and hypothesisAfter reviewing the literature, the following research questions and hypothesis wereformulated, which are going to guide the data collection and analysis of this study:RQ1. To what extent do the demographic variables of gender, age and level ofeducation affect the way consumers perceive and accept mobile advertising?H1. Men are generally more technologically savvy than women and, therefore, havea more positive attitude toward mobile advertising.H2. Individuals from a lower level of education have a more favourable attitude onreceiving commercial communication on their devices.H3. Young people are more prepared to accept mobile advertising. 33
  • 35. RQ2. What drives consumers to consider accepting advertising on their mobiledevices?H4. Trusted brands may increase consumer acceptance toward mobile campaigns.H5. Relevant, personalised and entertaining messages/content drive consumer‟swillingness to receive mobile ads.H6. Reward and incentives encourage consumers to accept mobile advertisements.RQ3. If incentives can increase consumer willingness to accept mobileadvertisements, which type of compensation would work better?RQ4. Are consumers more willing to buy a specific brand or product after receiving amobile advertisement? 34
  • 36. Chapter 3: Methodology3.1. Research Philosophy, Approach and StrategyIn this research the positivist philosophy is used as it is the researcher‟s intention toanalyse the facts without considering subjective influences, as the aim of this study isto assess customer acceptance of mobile advertising and not to profoundlyunderstand the behavioural reasons for that. The positivist philosophy allows theresearcher to apply to the social study the same procedures used by naturalsciences. It also allows the researcher to express the study findings as empiricalgeneralisations, since it was not the researcher‟s intention to deeply understand allthe reasons that motivate consumer acceptance of mobile campaigns, which theinterpretivism approach, for example, proposes (Saunders et al., 2003; Kumar,2005).In order to complement this philosophy and to ensure a thorough development of thetopic, the deductive approach will be used. At the end of the literature review, acouple of research questions and hypothesis were formulated in order to guide thedesign of the questionnaire and to test them in the findings‟ section. According toSaunders et al., (2003), a deductive approach is where the researcher first developsa theory or hypothesis in order to design a research strategy to test the hypothesis.This approach was chosen especially because it enables the researcher to movefrom theory to data, to collect quantitative data as well as maintain an independentview of the subject that will be assessed. The advantage of this approach is that it isrelatively cheap, quicker to complete and represents a lower-risk (Bell, 2005;Saunders et al., 2003).The research strategy aids the researcher to better answer the questions raised inthe literature review, as its purpose is to suit the particular objectives of this study.Hence, a survey strategy has been chosen to coincide with the deductive approach.This strategy allows an adequate amount of data to be retrieved from a suitablesample size in an efficient manner (Saunders et al., 2003). This can be seen in the 35
  • 37. online survey, which is guiding this study. Although designing and piloting thequestionnaire as well as analysing its results are time-consuming, the survey strategygives some control over the whole process. The advantage of this is that theresearcher does not depend on others to obtain the information needed, such asinterviews and focus groups that need pre-arrangements (Saunders et al., 2003).Inevitably, the survey method is not perfect and the researcher has been faced withsome limitations, such as the fact that the data collect may not be as extensive asthose collected through action research or ethnography, for instance. Due to thisfact, targeting a representative sample population was essential to ensure that themethod is valid and reliable (Bell, 2005; Saunders et al., 2003).3.2. Secondary ResearchIn order to go over the main points of the digital context, advertising industry, mobileenvironment, and mobile advertising, its theories and models, a critical review ofgeneral text books, current reports, and relevant journal articles was conducted in thesecondary research. The value of a review goes beyond supporting or rejectingarguments, it gives the reader an explanation of the context and background of thesubject studied (Bell, 2005; Burns, 2000).The advantage of this type of data is that the content combines knowledge frommany primary sources into a single publication (Burns, 2000, pp. 27). Hence, thismethod provides a rapid and quite simple way of obtaining a general understandingof the proposed topic and its related subjects. Furthermore, the literature reviewallows the researcher to find gaps in the field of study as well as to provide usefulinsights to structure the research design. Many studies are more likely to contributewith methods and approach suggestions than with their findings and conclusions(Burns, 2000). However, this isolated method is not enough to comprise a welldeveloped piece of research (Burns, 2000; Burns and Bush, 2003; Saunders et al.,2003) 36
  • 38. 3.3. Primary ResearchThe primary data was collected through online questionnaires administered via thewebsite Survey Monkey. Beforehand, with the purpose of refining the questionnaireto minimise answering issues, a pilot was conducted with 10 people chosen througha convenience sampling method, which although it is easy to obtain, it can alsoproduce bias as the sample is opportunely chosen by the researcher (Burns andBush, 2003; Saunders et al., 2003). With the feedback from the pre-test, theresearcher could improve the questionnaire design and see the mistakes that wereraised. Following the pilot, the quantitative survey took place between 4 th and 18thJuly 2009. Closed questions, and a combination of nonprobability referral andconvenience sampling among mobile consumers in the UK were used to answer theresearch questions. Potential respondents were asked to answer an anonymousquestionnaire, which compiled an identical array of non complex questions in a setorder covering mobile advertising and its implications, as the researcher aimed todetermine the acceptance of mobile advertising among a representative sample ofmobile British consumers. Due to the fact that it is a current topic, it may havemotivated consumers to answer the survey (Burns and Bush, 2003; Saunders et al.,2003).Both qualitative and quantitative approaches are important when conductingresearch because they provide alternative perspectives and no individualmethodology can provide suitable answers and insights for all questions or problems.It just depends on the researcher‟s objectives and expected achievements. Althougha combination of at least one other method could enhance the methodology of thisresearch, due to the short time and limited resources available, the researcherdecided not to design a methodological triangulation. Some insights would bewelcomed from a qualitative method, such as from a focus group to get some usefulthoughts into mobile advertising and consumers behavioural intentions. However, thetimescale involved in data collection and analysis is one disadvantage to qualitativeresearch, which is the main reason why the researcher did not complement the studywith this method (Burns, 2000; Burns and Bush, 2003; Saunders et al., 2003). 37
  • 39. Hence, the above arguments confirm that the quantitative method is moreappropriate for this research. However, some cautions needed to be taken whenconducting this type of research to ensure the collection of data were precise in orderto answer the proposed questions accurately and to achieve the objectives, as theresearcher was not able to design another questionnaire and collect additional data.The researcher was also careful during the design of the questionnaire, as it not onlyaffects the validity and response rate, but also greatly alters the reliability of the datacollected. Questionnaires function better with standardised questions that are notopen to interpretation (Bell, 2005; Saunders et al., 2003).3.4. Internet-based surveyThere are some issues regarding Internet-based surveys, such as being seen asspam, having potential technical glitches that may arise and the sample not beingperfectly able to represent the entire population, due to the fact that some individualsmay not have computers or Internet access. There is also the issue that differentlyfrom a paper-based questionnaire, not all respondents may see the same image. Forinstance, alternative computer operating systems, Internet browsers and displayscreens can interfere in the image that is being displayed. Consequently, thequestionnaire design needs to be clear and simple (Burns and Bush, 2003).In spite of that, this type of data collection was chosen for this research because itspositive contributions were greater than the negative ones. The cost-effectiveness ofonline surveys administered via website, such as Survey Monkey, seem to be themost positive characteristic, followed by the fact that it has the same strengths of apaper survey. In addition, the data is fast to collect, it is dynamic, it is less threateningfor some respondents, the data is captured in real time, respondents answer thequestions at their own pace, it is easy to use, the nonresponse is minimal, it is easyto store the respondents‟ database records and it is environmentally friendly (Burnsand Bush, 2003; Survey Monkey, 2008). Moreover, in spite of this approach beingnot entirely able to represent the population studied, it can, for instance, enable theresearcher to reach difficult-to-access groups (Burns and Bush, 2003). 38
  • 40. Although web experience is needed to complete this survey, it has been seen thatthe UK is a country with high Internet penetration reaching over 60% of the entirepopulation, with approximately 40 million users in 2007 (Abrams, 2008; CIA, 2007;Internet World Stats, 2008). Therefore, as the topic of this research involves a digitalmedia subject such as mobile and handheld devices; it conveniently suited theresearcher‟s objectives (Burns and Bush, 2003).3.5. Sampling planBurns and Bush (2003, p. 332) state that if a sample is not correctly drawn, theresearch may produce misleading conclusions. Due to the fact that obtaininginformation from every single individual in a population is generally impossible andvery impractical, the use of a sample is imperative when conducting this research.The population considered for this research is all the UK mobile users, whichcorrespond to 73.5 million mobile subscribers in the country, according to Mintel(2008). As the population is so large and difficult to be fully analysed, taking a samplewas needed in order to ensure the representation of the entire group.The researcher sent emails to personal contacts and also promoted the survey onmobile related groups on Facebook with a brief description of its purpose, askingevery respondent to forward the link of the survey to others (Appendix D). This typeof sample is considered a combination of nonprobability referral or “snowball”, andconvenience sampling methods because only those who are within the network havethe possibility of being chosen to answer the survey. The issue regarding this methodis that members of the population, who are less well known, disliked, or those whoopinions conflict with the respondent have a low probability of being selected (Burnsand Bush, 2003, p. 349). Although this method can be less accurate, when theresearcher used Facebook groups to reach the target, it may have increased thechances of the sample being more random and representative, as these are pagesthat are more likely to be looked at by the targeted population (Burns and Bush,2003; Saunders et al., 2003). 39
  • 41. As the population is so large, it is difficult to design a frame sample and, due to timeand financial restraints it is not practical to produce any type of probability randomsampling method, which are very costly and time consuming. For instance, simplerandom sampling is better applied with small populations, random digital dialling and,computerised lists. Consequently, the researcher would need a complete and currentlist of the population to establish the frame sample, which was not feasible when theUK mobile users‟ population is taken into consideration. Hence, referral samplingwas chosen as the most suitable method (Burns and Bush, 2003; Saunders et al.,2003).In relation to a nonprobability sampling method, it is inappropriate to consider anysample size formula, as it is unrelated to accuracy. However, the value of theinformation for the research objectives as well as the available resources must becarefully considered (Burns and Bush, 2003). Moreover, as stated by Saunders et al.(2003), the validity of a nonprobability method will rely on the analysis of the datacollected and not on the sample size.Although the sample size in this case may not represent properly the entirepopulation due to the low accuracy and high sample error, in order to fit in theresearcher‟s budget and to meet the deadlines, a sample size of 130 respondentswas chosen. This number was selected in order to validate the results of theresearch as it is feasible and also not too small (Burns and Bush, 2003; Saunders etal., 2003).3.6. Questionnaire designThe questionnaire (appendix F) was based on the questions and hypothesisformulated at the end of the literature review and focusing on the data that wascollected. The questionnaire can be divided into three main parts. The first partconsists of a wide variety of questions covering mobile usage, mobile advertisingexperience, opinions and attitudes taken by consumers. The second part includes 40
  • 42. questions about consumers‟ behaviour after receiving mobile advertisements on theirdevices. The third part contains socio-demographic questions, based around gender,age, level of education and family annual income. Questions used in previousresearch were adapted aiming to make a comparative analysis with the surveyfindings and previous results (Chowdhury et al., 2006; Hanley and Becker, 2008;Leppaniemi and Karjaluoto, 2008; Merisavo et al., 2007). These types of questions,as noted by Burns and Bush (2003), allow reliability to be accessed. Additionally,original questions were created, aiming to answer the issues raised during theresearch process and also to meet the objectives of the study.Moreover, three forms of questions are present in the questionnaire, which arecategory, rating or scale and grid. The first one is represented by questions that haveonly one response to be selected from a given set of options and was useful tocollect data about mobile advertising behaviour, mobile usage and for attributequestions. The second is characterised by the Likert-style rating scale, with a five-point scale ranging from „strongly agree‟ to „strongly disagree‟ being used. In order tofocus on the opinion of consumers about mobile advertising attributes and theirwillingness to accept advertisements on their handsets, three questions were basedon the Likert scale. Grid questions are those where the responses to two or morecategories can be recorded by using the same matrix. Even though respondents mayfind it difficult to understand this type of design, one grid designed question was stillincluded, as it was the researcher‟s objective to find out which brand was sendingmobile advertisements to consumers.3.7. Methods of analysisWeb-based surveys, such as Survey Monkey, come with an integrated questionnairedesign and analysis software programme. Hence, there is no need for the use ofSPSS in this research, as all the statistical analysis is going to be done with the useof the integrated software programme available on the website, which produces thestatistical results as well as tables and graphs (Burns and Bush, 2003; SurveyMonkey, 2008). 41
  • 43. Although the tools are available in the web-site, the researcher needed to choosehow the data was going to be analysed. Two types of statistical analysis werecombined in order achieve more valid and reliable results. The associative methodand the differences method were the most important approaches, which combined,give the required results to test the research hypothesis raised. The first methoddetermines if two variables are associated in a systematic way and the second oneassesses the statistical implication of two groups in a sample. With the associativeapproach, cross-tabulations and correlations are going to be used to evaluate the co-relations between the variables and responses to mobile advertising, in order toanswer the research questions and validate the hypothesis raised at the end of thesecond chapter. With the differences approach, an analysis of variance is going to beused in order to verify, for example, the gender or age difference in relation to the keyquestions (Bush and Burns, 2003; Saunders et al., 2003).3.8. EthicsEthical concerns emerge in this piece of work in terms of assessing individuals,collecting, analysing and reporting the data. During the development of this studyseveral ethical issues were faced by the researcher, as it is very difficult to conduct aresearch without encountering ethical arguments (Burns, 2000, pp. 22). Ethicalissues were guided by the Manchester Metropolitan University academic ethicalframework and also by the British law, such as the Data Protection Act 1998. Thisensures that the researcher meets the established behavioural norms andprocedures (Saunders et al., 2003).According to Walliman (2005), the researcher should examine all possibleconsequences deriving from the research methods employed. As noted by Saunderset al. (2003), ethics is directly related to the researcher‟s behaviour regarding therights of individuals who become the research subjects or are affected by it. Hence,the researcher was attentive to age, cultural aspects, gender and sexual orientationissues. 42
  • 44. 3.9. Limitations of the methodologyThe limitations of the methodology in this research rely on the online surveyapproach and on the chosen sampling method. The major problem to be consideredis that not only the chosen sampling method, but also Internet-based questionnaireshave a limited representativeness of the targeted population. Due to the fact that onlyindividuals within the network would be able to answer the survey, especially thosefrom mobile related groups, it may affect the overall result, as this sample might bemore willing to accept mobile advertising than other samples would. In addition,online surveys, as noted before, have some issues that can jeopardise the entireresearch as well as the data analysis. Hence, more detailed attention needs to bepaid to the data analysis section in order to overcome the weaknesses of the onlinesurvey and the sampling method. 43
  • 45. Chapter 4: Results/FindingsAs noted in the methodology chapter, the respondents to this study were recruitedfrom the UK during the three first weeks of July 2009 through a web-based survey.After being pre-tested with 10 individuals, the final sample of the study resulted in130 respondents aged 13 and above.Table 7: Demographic profiles classified by gender Gender Female Male Response ResponseAge n % n % Count Percent13-24 15 21.4 17 28.8 32 24.9%25-34 33 47.1 27 45.8 60 46.5%35-44 11 15.7 10 16.9 21 16.3%45 + 11 15.7 5 8.5 16 12.4%Level of educationCurrently attending school 2 2.9 1 1.7 3 2.3%A Level 1 1.4 4 6.8 5 3.9%GCSE, O Level 5 7.1 4 6.8 9 7.0%NVQ / GNVQ / Vocational 1 1.4 1 1.7 2 1.6%University degree (BA, Bed, 26 37.1 29 49.2 55 42.6%BSc)Masters degree / Doctorate 28 40 13 22 41 31.8%Other qualifications 5 7.1 4 6.9 9 7.0%Left school without 2 2.9 3 5.1 5 3.9%qualificationFamily income p. a.Less than £15,000 12 17.1 9 15.5 21 16.4%£15,000 - £ 29,999 20 28.6 14 24.1 34 26.6%£30,000 - £ 44,999 15 21.4 16 27.6 31 24.2%£45,000 - £54,999 4 5.7 3 5.2 7 5.5%£55,000 - £ 64,999 4 5.7 2 3.4 6 4.7%£65,000 - £ 74,999 1 1.4 0 0 1 0.8%£75,000 + 3 4.3 7 12.1 10 7.8%N/A 11 15.7 7 12.1 18 14.1%Of the 130 respondents who completed the online survey, 54.3% were female and45.7% male (table 7). The sample was predominantly composed of young mobileusers, since 70.4% of the participants were below 35 years old. Almost twice asmany females than males were in the oldest age group (>45 years), being 15.7% and8.5% respectively. Regarding the level of education, the majority of the respondentspursued a University degree, which accounted for 42.6% of the total of participants. 44
  • 46. Additionally, 40% of the females have a Master or Doctorate degree, compared withonly 22% of the males. Forty-two percent reported a family annual income of lessthan £30,000 and no critical difference was observed between males and females.Table 1 illustrates the demographic profile of both male and female participants.4.1. Mobile usage behaviourWith the new entrance of 3G technology in the UK market (Internet AdvertisingBureau, 2009; Mobile Marketing Association, 2009), the number of smartphones andother advanced technologies, such as iPhone and Blackberry, has increasedsignificantly in the UK during the past years (AdMob, 2008; Burk, 2008). The resultsshow that 50% of the respondents still own a feature phone with basic attributes.However, the 50% remaining own a smarthphone or similar (figure 6), showing thatthere is a balance among the respondents.Figure 6: What type of mobile phone do you have? 45
  • 47. Text messaging is the main service used by the majority of respondents in the pastmonth, with 92.3% reporting they have used it more than three times (figure 7). Asnoted, receiving and sending text messages are the most used service amongmobile users (Becker, 2006; Berger Insight, 2008; Jung and Leckenby, 2007; MobileMarketing Association, 2009). Moreover, the Nielsen Company estimates that in thethird quarter of 2008, 76% of all mobile subscribers aged 13 and older used textmessaging on a regular basis (Nielsen Report, 2008). From figure 7 it can be seenthat the second most popular service/feature used was the photo or video camerawith 40.9% of the participants stating that they have used it more than three times inthe past month. Furthermore, Nielsen Report (2008) reveals that 12.9% of the UKmobile subscribers are actively using the Internet on their mobiles. In this study,31.5% of the participants have accessed the web through their devices more thanthree times in the past month, reinforcing that mobile web is becoming increasinglyimportant throughout the country (figure 7).Figure 7: How many times in the past month have you used each of the followingfeatures/services on your mobile phone? 46
  • 48. 4.2. Awareness of mobile advertisingSixty-seven percent of respondents reported that they received promotional textmessages on their devices in the past year, confirming previous studies that havereported SMS as the most popular form of mobile advertising practiced amongmarketers (Internet Advertising Bureau, 2009; Leek and Christodoulides, 2009;Merisavo et al., 2007; Park et al., 2008). Indeed, MMS, links to Internet ordownloads, audio advertisements and quizzes were hardly ever received by therespondents. Only links to Internet or downloads have demonstrated a significantpresence among the sample, with 16.9% of all participants declaring that they havereceived these types of advertisements more than three times in the past year (figure8).Figure 8: How many times in the past year did you receive each of the followingtypes of advertisements or promotions on your mobile?The results from table 8 also confirm that mobile operators represent the mainintermediate for mobile users, which was noted by Burgan (2009). The majority of theparticipants reported that their mobile operators are the brands that send promotionalcontent to their handsets throughout all formats of advertisements. Local businesses 47
  • 49. appear to be the second intermediate that sends advertisements to the respondentsin the past year, which reinforces the personal nature of mobile devices as apromotional channel (Bamforth et al 2006; Hanley et al. 2006; Mobile MarketingAssociation, 2007, 2009; Park et al., 2008).Table 8: Which type of brand has sent you the following advertisements orpromotions on your mobile? Big brands Your mobile (Coca-cola, Retail businesses Local operator (O2, Pepsi, Apple, (supermarkets, businessesAnswer Options Orange, Nike, clothes shops, (gym, Vodaphone, Mcdonalds, groceries, etc) cinemas, etc.) etc) etc)Text message/SMS 94.2% (113) 1.7% (2) 10% (12) 20.8% (25)MMS/Video 78.7% (23) 6.7% (2) 6.7% (2) 0% (0)Link to Internet 66.7% (30) 8.9% (4) 15.6% (7) 15.5% (7)Audio 48% (12) 12% (3) 4% (1) 8% (2)advertisementQuiz 62.5% (15) 0% (0) 4.2% (1) 8.3% (2)From table 9 it can be seen that 44% of the respondents think that mobile advertisingis informative. On the other hand, 50.4% of them said that they view advertising asanother form of SPAM, which is one of the major concerns of mobile advertising(Burgan, 2009; Haghirian et al., 2005; Nasco and Bruner II, 2008; Park et al.,2008).In addition, 63% stated that mobile advertising is a message that they did not ask for.Moreover, 49.6% do not find mobile advertising entertaining and 45.2% do not agreeit is personalised, which contradicts the believed personal characteristic of mobiles(Hanley et al., 2006; Jin and Villegas, 2008). Although previous studies have shownthat consumers view mobile advertising as common and inevitable, consumers doesnot perceive mobile advertising as enjoyable and the majority do not want to receivepromotions on their devices, most of the time finding them even annoying (Hanleyand Becker, 2008; Kondo et al., 2008; Leek and Christoudolides, 2009). 48
  • 50. Table 9: To what extent do you agree/disagree with each of the followingcharacteristics of mobile advertising? NeitherAnswer Strongly Strongly Rating Response Agree agree or DisagreeOptions agree disagree Average Count disagreeIt is 8.6% 35.2% 12.5% 14.1% 29.7% (38) 3.12 128informative (11) (45) (16) (18)It is 18.9% 23.6% 6.3% (8) 25.2% (32) 26% (33) 2.58 127entertaining (24) (30)It is 23.8% 20.6% 24.6% 5.6% (7) 25.4% (32) 2.65 126personalised (30) (26) (31)It is 13.5% 26.2% 18.3% 7.1% (9) 34.9% (44) 2.65 126interactive (17) (33) (23) 26.8% 23.6% 25.2% (32) 9.4% (12) 15% (19) 3.38 127It is a SPAM (34) (30)It is an 19.7% 18.9% 12.6% 15.7%irrelevant 33.1% (42) 3.14 127 (25) (24) (16) (20)message 28.3% 24.4% 17.3% 22.8% (29) 7.1% (9) 3.39 127It is annoying (36) (31) (22)It is amessage that 38.6% 24.4% 16.5% 14.2% (18) 6.3% (8) 3.62 127you did not (49) (31) (21)ask for4.3. Research questions and hypothesisRQ1. To what extent do the demographic variables of gender, age and level ofeducation affect the way consumers perceive and accept mobile advertising?H1. Men are generally more technologically savvy than women and, therefore, havea more positive attitude toward mobile advertising.Previous studies have shown some evidence that female were slower to accept newtechnologies and were more resistant to receiving promotional content on theirhandsets. Indeed, it was revealed that males were more likely to access mobilemedia content (Leek and Christoudolides, 2009; Leppaniemi and Karjaluoto, 2008).Conversely, Leppaniemi and Karjaluoto (2008) have illustrated that females are moreactive than males when participating in and responding to mobile promotions (34%vs. 24%). Figure 9 indicates that males are slightly more up to date with the mobiledevices that they own, with 59.3% of the males owning a smartphone or similar newtechnology, against 42.8% of the females. They also accessed the Internet morethrough their mobiles in the past month, with 38.6% of males reporting to have 49
  • 51. accessed the Internet through their devices more than three times in the past month,while only 24.6% of females making the same statement (appendix E). However, nosignificant difference was found between males and females‟ opinions toward mobileadvertising in general, with both presenting similar pattern of response.Figure 9: What type of mobile do you have? (Female vs. Male)H2. Individuals from a lower level of education have a more favourable attitude onreceiving commercial communication on their devices.Due to the fact that the majority of the respondents have a high educational level,with 74.4% of them having a University degree or higher (table 7), it was difficult toanalyse if individuals with a low level of education are more willing to acceptadvertisements on their mobile. However, previous studies have shown thatindividuals with less education generally report a more favourable attitude towardmobile advertising (Leppaniemi and Karjaluoto, 2008, p. 254). 50
  • 52. H3. Young people are more prepared to accept mobile advertising.Seventy-two percent of the respondents aged 45-54 and 60% of those above 55have reported that they would never accept any type of advertising or promotion ontheir devices, even if they received incentives, including free products and vouchers(figure 10). However, among the age group 25-34, only 5% revealed they wouldnever accept mobile ads, while 56.7% would accept ads in return for free minutes.Figure 10: What type of free product or service would you choose in order to receivemobile advertising? (Age difference) 51
  • 53. Figure 11: How many times did you use a mobile advertisement as a reference forpurchasing in the past year? (Age difference)Although the majority of respondents across all age categories stated that they hadnot used mobile advertising as a reference of purchase in the past year, 10% ofthose aged 25-34 had used mobile ads as a reference at least once, and 3.3% threetimes or more (figure 11). A similar pattern can be seen in relation to how many timesindividuals have participated in a promotion through their devices in the past year(figure 12). The majority again responded that they did not participate once in thepast year, which does not mean they never participated before. Among those aged45-55 81.8% did not participate once and 60% of those in the group aged 25-34 alsohad not participated once. However, in the last group, 16.7% have participated atleast once and 11.7% more than three times. These results demonstrate thatyounger consumers are slightly more favourable and proactive towards new media. 52
  • 54. Figure 12: How many times did you participate in a promotion through your mobile inthe past year? (Age difference)According to Leek and Christodoulides (2009), individuals from younger groups havebeen found to be the quickest to adopt new technology and also use thesetechnologies for long periods of time and for a wider variety of tasks when comparedto individuals from older groups. Hence, the age group 18-29 is the one with thehighest mobile phone usage and which is more willing to accept mobile marketingcommunications (Leek and Christodoulides, 2009).RQ2. What drives consumers to consider accepting advertising on their mobiledevices?Only 7.7% of the respondents stated that they would agree to receive any type ofmobile advertisements on their devices (table 10). The majority (80.8%) would notaccept any type of mobile advertisements. Additionally, 75.9% of the respondentswould accept promotional content on their mobiles only if they had permitted itbeforehand. This statement is in accordance with the British law that marketers andbrands can only send advertisements to mobile devices if consumers have previouslyopted in (Advertising Standards Authority, 2009; Information Commissioner, 2009;Mobile Marketing Association, 2008). 53
  • 55. Table 10: To what extent do you agree/disagree with each of the following conditionsrelated to accepting advertising or promotions on your mobile? Neither Strongly Strongly Rating ResponseAnswer Options Agree agree or Disagree agree disagree Average Count disagreeI would accept any type 5.4% 11.5% 30.8%of advertisement on my 2.3% (3) 50% (65) 1.79 130 (7) (15) (40)mobileOnly if I get something 8.6% 49.2% 12.5% 25% (32) 4.7% (6) 3.37 128free or discount vouchers (11) (63) (16)Only if I have permitted 20.9% 55% 14.7% 3.1% (4) 6.2% (8) 3.81 129beforehand (27) (71) (19)Only if it is from a trusted 16.3% 38% 23.3% 12.4% 10.1% 3.38 129brand (21) (49) (30) (16) (13)Depends if the advertising 22.5% 38.4% 20.2% 15.5%is entertaining or 5.4% (7) 2.82 129 (29) (47) (26) (20)interactiveDepends on the relevance 15.6% 38.3% 10.2% 10.9%of the message or if it is 25% (32) 3.38 128 (20) (49) (13) (14)personalisedH4. Trusted brands may increase consumer acceptance toward mobile campaigns.Trusted brands appear to have an important role among mobile advertisingacceptance. Almost 55% of the participants would agree to receive mobileadvertisements if they trusted the brand that was sending them (table 10). This resultreinforces the fact that well-known brands are increasingly using the mobile channelas part of their integrated marketing plan (eMarketer, 2009; Leppaniemi andKarjaluoto, 2008; Merisavo et al., 2007).H5. Relevant, personalised and entertaining messages/content drive consumer‟swillingness to receive mobile ads.Relevant and personalised messages play an imperative role in mobile advertisingacceptance (Kondo et al., 2008; Leek and Christodoulides, 2009). Indeed, 53.9% ofrespondents would agree to receive promotional content on their mobiles if themessage was relevant or personalised (table 10). Similarly, Leek and Christodoulidesreported that more than 81% of the respondents of their survey agreed thatpersonalised messages are both fun and useful. On the other hand, Entertaining orinteractive advertising does not seem to be so important for consumers, with 38.4%of them neither agreeing nor disagreeing that this characteristic is imperative forthem to receive mobile campaigns (table 10). 54
  • 56. H6. Rewards and incentives encourage consumers to accept mobile advertisements.In this study, 57.8% of respondents stated that they would agree to receiveadvertising or promotions on their devices if they got something free or discountvouchers (table 10). Evidence for earlier reports show similar results. According toHarris research, 56% of teenagers that answered this survey said they would beinterested in viewing mobile advertising in exchange for incentives. Thirty-sevenpercent of the adults have reported the same (Harris Study, 2008). Similarly, the Veltistudy revealed that 56% of the participants reported that they would accept mobileadvertisements or promotional content if they were offered some type of reward(Internet Advertising Bureau, 2009).RQ3. If incentives can increase consumer willingness to accept mobileadvertisements, which type of compensation would work better?About 46% of the participants that said were willing to accept incentive-based mobileadvertisements, reported that they would prefer to receive free minutes, followed byfree Internet access (15.4%) (figure 13). In relation to receiving gift or discountvouchers, 23.8% stated that film tickets would be their favourite, which is followed byrestaurant discounts (15.4%) (figure 14). In both cases, over 16% of the respondentsrevealed that they would not accept any type of advertisements on their devices,even with incentives (figures 13 and 14). Hanley et al. (2006), similarly reveal that51% of the respondents of their study would not accept ads on their mobile.Figure 13: What type of free product or service would you choose in order to receivemobile advertising? 55
  • 57. In general, incentives have a positive impact on consumers. According to IAB (2008),56% of respondents in the study undertaken by Velti said that they would accept toreceive promotional content on their mobiles if they were offered some type ofreward. The Orange UK (2007) study complements this stating that offeringdiscounts or sponsored games for free download increases the campaignacceptance and effectiveness. Moreover, another research indicates that amongteenagers, 61% opted for receiving free entertainment downloads, while adultspreferred free minutes (Leek and Christoudolides, 2009). Among college students,free minutes were also the second most chosen option (37%), behind free ringtones(45%) (Hanley et al., 2006).Figure 14: What type of gift/discount voucher would you choose in order to receivemobile advertising? 56
  • 58. RQ4. Are consumers more willing to buy a specific brand or product after receiving amobile advertisement?During the past year, the majority of respondents (83.1%) who received mobileadvertisements or promotional content on their devices did not use it as a purchasereference not even once. Only 10% used mobile ads as a reference at least onceand 3.1% more than three times (figure 15). A similar result was found regarding howmany times the respondents participated in a promotion through their devices in thepast year. Almost 68% did not participate at least once and only 10% haveparticipated twice, followed by 7% of those who have participated three times ormore (figure 16). Indeed, these results do not indicate that the respondents havenever responded to or participated in a promotion through their devices.Figure 15: How many times did you use mobile as a reference for purchasing in thepast year. 57
  • 59. Figure 16: How many times did you participate in a promotion through your mobile inthe past year? 58
  • 60. Chapter 5: ConclusionsAs noted, advertising via mobile devices is still in its early stages. Nevertheless, ithas been evolving rapidly as a business solution as well as a field of study with itsmodels and theories being built by scholars and experts (Haghirian et al., 2005;Leppaniemi et al., 2006). Moreover, if marketers intend to produce effective mobileadvertising campaigns and gain a wider volume of acceptance among consumers, aclear understanding of the factors that drive consumer willingness to accept mobileadvertisements and promotions is strongly needed (Becker, 2006; Vatanparast andAsil, 2007).This study was conducted to examine the attitudes toward mobile advertisementsand the reasons behind consumer acceptance of commercial messages or contenton their mobile devices. In general, this study tested mobile usage, mobileadvertising awareness and the motivational factors driving a sample of UK mobileusers to accept mobile advertising. Valuable information emerged from the dataanalysis, which answered the research questions and met the aims and objectives.These findings are going to be discussed in detail in the subsequent section, whileconsidering the proposed research questions:RQ1. To what extent do the demographic variables of gender, age and level ofeducation affect the way consumers perceive and accept mobile advertising?RQ2. What drives consumers to consider accepting advertising on their mobiledevices?RQ3. If incentives can increase consumer willingness to accept mobileadvertisements, which type of compensation would work better?RQ4. Are consumers more willing to buy a specific brand or product after receiving amobile advertisement? 59
  • 61. 5.1. Reflections and recommendationsThe results of this study indicate that offering rewards and incentives to consumersare the major positive drivers of consumer willingness to accept mobile advertising,which maintains what has been suggested in previous research (Leek andChristodoulides, 2009; Leppaniemi and Karjaluoto, 2008; Merisavo et al., 2007;Tähtinen and Salo, 2004;). From this evidence, it can be concluded that marketersand brands using mobile as part of their promotional and communicational strategiesshould always consider offering free gifts or some kind of reward to engage theconsumer with the campaign, as long as they are relevant to the segment, such asfree minutes and film tickets. This strategy not only encourages the consumer toparticipate in the promotion, but also helps brands to build a strong and lastingrelationship with them (Nasco and Bruner II, 2008; Vatanparast and Asil, 2007).Additionally, the results also indicate that sending relevant and personalisedmessages are another powerful contributor to consumer acceptance of mobile ads.Although the respondents did not see mobile advertising as entertaining orpersonalised and also considered it another form of spam or unsolicited message,receiving relevant content on their devices is still a key motivating factor. This may beexplained due to the fact that marketers still have low knowledge in this channel andtherefore, the mobile campaigns that these consumers are receiving are still notcustomised or of their interest. Hence, consumers are more likely to perceive themessage as valuable information when marketers are aware of this fact and use thedata they have available to plan a relevant, personalised and effective mobilecampaign that enhances their relationships (Hanley and Becker, 2008; Henricksson,2008; Leek and Christodoulides, 2009).Moreover, permission-based ad campaigns are imperative to engage consumers andto make them trust the channel. As noted, the majority of consumers only acceptmobile advertisements that they had permitted beforehand, which is in accordancewith the law (Advertising Standards Authority, 2009; Mobile Marketing Association,2008). Marketers should always make sure that although they have the power toaccess consumers anytime and anywhere through their devices, they must not 60
  • 62. invade the mobile user‟s privacy by sending unsolicited or unsafe messages.Abusing this privilege can jeopardise the great opportunities this channel potentiallyoffers (Hanley et al., 2006; Jin and Villegas, 2008; Leek and Christodoulides, 2009).Furthermore, practitioners should pay particular attention to the young segment,particularly those aged 18-34, as they are heavy consumers, technologically savvyand less resistant to mobile advertisements than older individuals. Additionally, theyounger group can be easily persuaded to receive promotional content on theirdevices when offered relevant rewards or incentives as can be seen from the resultsof the study. Previous research also finds this group the most receptive to mobileadvertising (Leppaniemi and Karjaluoto, 2008; Mort and Drennan, 2007).Consequently, marketers and practitioners should concentrate their mobile marketingefforts to understand, attract and engage this group with their campaigns (Carrol etal., 2007).Another important opportunity for marketers is the use of the mobile web as part oftheir communicational strategy. From the findings, it can be seen that mobile Internetwas the third most accessed service. Moreover, mobile users are increasinglyaccessing the Internet through their devices (eMarketer, 2009; Internet AdvertisingBureau, 2009; Nielsen, 2008), which represents a great opportunity for marketers toexplore new formats of mobile advertising. This allows the focus of mobile advertisingformats to move away from SMS that are still dominating the market (Merisavo et al.,2007; Park et al., 2008).As noted, consumers are not massively participating in promotions through theirdevices and not using mobile advertising as a reference for purchasing. This may bedue to the fact that the mobile advertising industry is still maturing, and therefore, thecampaigns are not very well elaborated and the frequency is very low (Haghirian etal., 2005). Nonetheless, as the findings and previous studies reveal, there is spacefor mobile advertising effectiveness, since quite a few users are responding to mobile 61
  • 63. advertisements and present a more positive attitude towards ads on their devices,especially young consumers (Leppäniemi and Karjaluoto, 2008).Overall, marketers should consider using mobile advertising as part of theirintegrated communicational strategies or to support other channels‟ campaigns(Haghirian et al., 2005; Internet Advertising Bureau, 2009; Mobile MarketingAssociation, 2009). As Kotler and Keller (2009) complement, a holistic marketingorientation should always be designed in order to achieve a competitive edge and toreach the consumer more accurately. In other words, marketers must make sure thatthey provide a positive experience through mobile ad campaigns in order to bring thecustomer even closer to the brand.5.2. Limitations and further researchDuring the research process the author was faced with some difficulties andlimitations. Firstly, due to the fact that the concepts of mobile marketing and mobileadvertising are quite recent, the researcher found some difficulties in finding moredetailed theories and models among published literature. As stated by Burns (2000,pp.30), relatively new research areas usually lack an organised body of sourceinformation to provide a general background and thus require a fairly broad view.Additionally, the sample of the survey was not entirely representative of thepopulation, which slightly limited the analysis of the results. Moreover, due to the factthat the survey was conducted online and the sample was chosen conveniently andnot randomly, it may have produced some bias on the result, as all the individualswere Internet users and therefore might see mobile advertising more positively thanother groups (Scharl et al., 2005). This study could be repeated using a largersample in the UK, as the researcher was not able to design a fully representativesample. Therefore, with a larger sample a comparative analysis could be done to testthe validity of the findings and hypothesis of this project, and to see if the results varysignificantly. 62
  • 64. Furthermore, the project is limited as the researcher was not able to cover mobileadvertising broadly due to the fact that it is a very extensive topic and there waslimited time available. The study only focused on consumer willingness to acceptmobile advertisements on their devices and this gap allows future research to beconducted. For instance, it could focus on mobile advertising practitioners‟ viewpointsinstead of mobile users‟ opinions and behaviour, in order to gain an in-depthunderstanding of mobile advertising and its implications within organisations andagencies.By understanding consumer‟s mobile usage patterns and the way consumersperceive mobile advertising, marketers must design a campaign that engagecustomer responses and deliver valuable and relevant information on their devices.The results of this study were beneficial not only for practitioners but also as areference in the academic field due to its original findings and analysis of consumerbehaviour and opinions about mobile advertising.Word count: 14.553 63
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  • 78. Appendices 77
  • 79. Appendix A: Gantt chart (Dissertation Schedule) May-09 Jun-09 Jul-09 Aug-09 Sep Activity W28 W29 W30 W31 W32 W33 W34 W35 W36 W37 W38 W39 W40 W41 W42 W43 Reflection of the issues raised by the supervisor on the Proposal feedback Literature review / writing Meeting with supervisor (26/05/09) Literature review: 5000 words by 21/06/09 Meeting with supervisor Development of questionnaires Meeting with supervisor Research on methodology / writing Methodology: 2000 words by 26/07 Meeting with supervisor Data collection online Analysis of the results / writing Meeting with supervisor Results & Findings: 5000 words by 20/08 Meeting with supervisor Writing of dissertation conclusions and introduction Introduction and conclusions: 2500 words by 28/08 Deadline of submission: 04/09/2009Legend:Phases The literature review took more time than expected; therefore the whole process was a slightly compromised.Meetings However, the methodology and the questionnaire design were finalized before the time expected, which helpedAchievementsData collection the researcher to get back on track. The online survey also took the amount of time planned beforehand. The researcher has also faced a minor delay during the analysis process. 78
  • 80. Appendix B: Dissertation Supervision Meeting LogTutee’s name: Viviane Costa CampbellSupervisor’s name: Adrian Thomas Actions taken by the Date Discussion Topic/Concerns Supervisor’s advice tutee First meeting with supervisor to This topic would come Read articles related with discuss the research area: with obvious answers. marketing experience,29/10/2008 “Manchester United and the fan Suggestion: Look other sports tourism and experience” areas of the business, such sponsorship. as Sports Tourism Write the Research After reading the articles and Link the idea of sports Proposal Form A, emailed attending the Pro Dev day in MMU11/11/2008 sponsorship with digital to the supervisor on I decided to link my research topic communications. 13/11/2008. with digital marketing. Proposed title: “ Read technologically Topic is too broad and related and marketing Change of subject: there is a lack of theory in journals. Read also about “How companies communicate the objectives proposed.29/01/2009 the relation between themselves and their brands in the Link the topic with online and offline digital era” Integrated Marketing channels. Try to narrow Communications. the topic. Carry on reading the literature related to Email with a new topic: Answer (03/03/2009): digital communications. “The paradigm of advertising in There are still some02/03/2009 One topic came on board: the digital era: an overview of reservations about this Mobile marketing. Put customer expectations in the UK” topic. It is still too broad. the insight on the paper to show Adrian. Approved topic. Literature regarding Some slightly changes on mobile usage in the UK, Reviewed topic: the objectives need to be mobile advertising, “The paradigm of mobile done. The comparison05/03/2009 advertising expenditure advertising in the UK: consumers’ between traditional and in the UK and digital attitudes and expectations” digital media still needs to communications is being be done. Some journals read. were suggested. Answer (23/03/2009):22/03/2009 Email with the proposal Approved Due date: 25/03/2009 79
  • 81. Answer (27/04/2009): Proposal feedback -Aims and Objectives need some refinement. Took note of everything -Literature review needs to make the appropriate Email asking for the proposal24/04/2009 to be more critically changes and to discuss feedback analysed. with Adrian in the next - Methodology needs to meeting. be more specified. Read more eBusiness and Marketing Research journals. Try to understand mobile Change aim and users profile and objectives. behaviour. Read the journals Discussion about the observations Engage in the literature suggested and write the raised on the proposal feedback that is more academic literature review of the25/05/2009 and the dissertation schedule driven. Dissertation. (Gantt Chart). Decide the sampling It was agreed with the method and the best supervisor that it would appropriateness of the be emailed to him before statistical test (Using the next meeting. SPSS). Answer (30/05/2009): Questionnaire feedback - Link the objectives of the research with the design of the questions. - Show the purpose of the survey. Review the questionnaire - Use personal questions and re-write the Email the first questionnaire28/05/2009 at the end of the survey questions accordingly design draft (sensitive data). with the supervisor’s - Think about “yes/no” suggestions. questions. - Apply “likert scale”. - Re-write vague options. Make minor adjustments Answer (01/07/2009): on the questions and Email the second questionnaire30/06/2009 Questionnaire approved. undertake a pilot. design draft 80
  • 82. Answer (03/08/2009): Methodology feedback Re-write the parts with - Suggested some minor suggestions and write the modifications.26/07/2009 Email the Methodology questionnaire and - Spotted that the questions design’s questionnaire and section. questions design’s section was missing Answer (19/08/2009): Literature Review Use empirical studies to feedback compare with the18/08/2009 Email the Literature Review - Approved, but could findings of the online have had evidence of survey. empirical studies. Answer (19/08/2009): Introduction feedback - Suggested that the Write a paragraph with19/08/2009 Email the methodology introduction was mobile usage figures in succinct and could have the UK. more factual data discerning usage trends. 81
  • 83. Appendix C: Survey Monkey receipt 82
  • 84. Appendix D: Facebook survey approach 83
  • 85. Appendix E: Services used in the past month (Female vs. Male)Answer Options Female Male Response CountSend/Receive text messageZero 1..4% (1) 3.4 % (2)Once 2.9% (2) 1.7% (1)Twice 1.4% (1) 3.4% (2)Three times 1.4% (1) 0% (0)More than three times 92.9% (65) 91.5% (54) (70) (59) 129Camera/Video cameraZero 21.7% (15) 29.8% (17)Once 14.5% (10) 8.8% (5)Twice 18.8% (13) 10.5% (6)Three times 7.2% (5) 7% (4)More than three times 37.7% (26) 43.9% (25) (69) (57) 126GamesZero 60.9% (42) 57.9% (33)Once 13% (9) 5.3% (3)Twice 5.8% (4) 5.3% (3)Three times 2.9% (2) 5.3% (3)More than three times 17.4% (12) 26.3% (15) (69) (57) 126Internet accessZero 65.2% (45) 45.6% (26)Once 8.7% (6) 7% (4)Twice 1.4% (1) 7% (4)Three times 0% (0) 1.8% (1)More than three times 24.6% (17) 38.6% (22) (69) (57) 126Download contents, applications, gamesZero 76.8% (53) 70.7% (41)Once 8.7% (6) 8.6% (5)Twice 0% (0) 3.4% (2)Three times 1.4% (1) 0% (0)More than three times 13% (9) 17.2% (10) (69) (58) 127Instant MessengerZero 78.3% (54) 77.2% (44)Once 2.9% (2) 0% (0)Twice 2.9% (2) 1.8% (1)Three times 2.9% (2) 3.5% (2)More than three times 13% (9) 17.5% (10) (69) (57) 126Reading emailZero 71% (49) 57.9% (33)Once 5.8% (4) 7% (4)Twice 2.9% (2) 0% (0)Three times 1.4% (1) 3.5% (2)More than three times 18.8% (13) 31.6% (18) (69) (57) 126 84
  • 86. Appendix F: Mobile Advertising Acceptance Survey 85
  • 87. 86
  • 88. 87
  • 89. 88
  • 90. 89
  • 91. 90