Mobile Marketing

Topics: Marketing, Mobile phone, Advertising Pages: 24 (7529 words) Published: May 13, 2013
Journal of Electronic Commerce Research, VOL. 6, NO.3, 2005

DRIVING CONSUMER ACCEPTANCE OF MOBILE MARKETING: A THEORETICAL FRAMEWORK AND EMPIRICAL STUDY Hans H. Bauer University of Mannheim Tina Reichardt University of Mannheim Stuart J. Barnes University of East Anglia Marcus M. Neumann University of Mannheim

ABSTRACT With the emergence of high speed wireless network technologies and the increasing market penetration of mobile phones the global advertising industry’s interest in using this medium as a means of marketing communication is rising. However, in spite of the increasing number of companies investing in mobile marketing campaigns, there is, as yet, little academic research on this topic and the nature and implications of this channel are not yet understood fully. This research attempts to help in bridging this gap; it investigates the factors that induce consumers to accept the mobile phone as a means of communicating promotional content. Underlying the research are a set of hypotheses that have been formulated to include determinants referring to consumer personality as well as determinants referring to the form of advertising. These hypotheses form the basis for this research and are empirically tested by means of a linear structural equation model. The empirical results (n = 1,028) identify entertainment value as well as information value as the strongest drivers of the acceptance of the mobile phone as an innovative medium for advertising content communication. Keywords: Acceptance; Mobile marketing; Theory of Reasoned Action (TRA); Structural equation model 1. Introduction Since the mid-1990s, the penetration of mobile phones in developed economies has been explosive. Whereas in 1997 only 215 million people were using mobile communication devices worldwide, by 2001 this had grown to a massive 961 million, further growing to 1.16 billion by 2003. Today, Western Europe exhibits the highest penetration of mobile phones (79%), followed by North America (48%), and Asia (12%). However, growth in the European mobile sector has recently slowed. Operators are therefore searching for new services with the potential to stimulate demand. In this context the short message service (SMS) has exceeded all initial expectations and become a great market success. In 2002, the total number of SMS messages sent globally totalled 670 billion and this figure is expected to rise to 2.6 trillion by 2007. In view of this exceptional development, the advertising industry is becoming increasingly interested in using the mobile phone as a medium for communicating commercial content. Leading international brand manufacturers - such as BMW, McDonald’s and Nike - have already launched campaigns using the mobile phone as a means of conveying commercial content to customers. International market research institutes also consider mobile marketing as a highly promising marketing instrument that will continue to gain importance [Wohlfahrt 2002]. These forecasts refer to a concept of mobile marketing that is based on obtaining permission from the message recipient [Barnes and Scornavacca 2004]. The concept of "permission marketing" addresses the widespread problem of spam in new media communication by demanding the explicit agreement of the addressee to receive marketing information. This approach thus recognises that the majority of anonymous mass advertising is despised by consumers leading them to reject the messages [Godin 2001]. The systematic adaptation of marketing impulses to individual consumer profiles is another fundamental building block of permission marketing. If thoroughly personalized, commercial messages may become perceived as valuable information services as opposed to bothersome "interrupt marketing" [Barnes and Scornavacca 2004]. Such customisation helps to reduce the likelihood of a negative...
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