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Mobile advertising has become one of the most popular applications in mobile commerce, particularly in the form of text advertising through SMS (Short Messaging Service). However, in the study of mobile advertising little is known regarding the effectiveness of SMS advertising and the factors contributing to its success. This research investigates the significance of a number of factors associated with SMS advertising effectiveness through an experimental study. The findings indicate that incentive, interactivity, appeal, product involvement, and attitude toward SMS advertising in general directly influence attitude toward the advertisement, attitude toward the brand, and purchase intention. The results of the study suggest that a stronger focus on these factors is necessary to improve the effectiveness of SMS advertising campaigns.
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DETERMINANTS OF EFFECTIVE SMS ADVERTISING: AN
EXPERIMENTAL STUDY
Dimitris Drossos, Geroge M. Giaglis, George Lekakos, Flora Kokkinaki,
and Maria G. Stavraki
ABSTRACT: Mobile advertising has become one of the most popular applications in mobile commerce, particularly in the form
of text advertising through SMS (Short Messaging Service). However, in the study of mobile advertising little is known regarding
the effectiveness of SMS advertising and the factors contributing to its success. This research investigates the significance of a
number of factors associated with SMS advertising effectiveness through an experimental study. The findings indicate that
incentive, interactivity, appeal, product involvement, and attitude toward SMS advertising in general directly influence attitude
toward the advertisement, attitude toward the brand, and purchase intention. The results of the study suggest that a stronger
focus on these factors is necessary to improve the effectiveness of SMS advertising campaigns.
SMS campaigns are proliferating around the world. In an
empirical study of the state of interactive marketing in five
large developed markets (United States, Japan, Germany, UK,
and France) and two key emerging markets (China and
Brazil), Barwise and Farley (2005) found that 19% of the
participant firms were already using text messaging either as a
direct response or as a "push" channel. Nevertheless, the
academic literature is short of empirical studies investigating
the importance of the factors that determine SMS advertising
effectiveness.
In line with efforts to identify determinants of successful
advertising campaigns in other media (e.g., Baltas 2003;
Chittenden and Rettie 2003; Korgaonkar, Moschis, and
Bellenger 1984; Stewart and Koslow 1989), this paper attempts
to conceptualize and test factors that influence the effects of a
mobile advertising campaign, with particular emphasis on
push advertising via Short Messaging Service (SMS) text. In
the next section, we identify the factors that may influence the
effectiveness of SMS advertising and then develop a number of
hypotheses that are tested experimentally in the remainder of
the paper.
Prior Research on Mobile Advertising
Before we developed our hypotheses, we identified the factors
that had the potential to influence mobile advertising effects.
To this end, we carefully reviewed the relevant mobile
advertising and marketing literature. Initially, we retrieved 36
papers by querying the electronic text databases Business
Source Premier, Elsevier's ScienceDirect, Emerald (MCB),
Kluwer, Wiley InterScience, and ACM (the Appendix provides
the respective references). The keywords used were "mobile
advertising," "mobile marketing," "wireless advertising," and
"wireless marketing." The search was limited to scholarly
journals, conference proceedings, and papers with full text
access. Additional research, according to the same search
criteria, yielded four additional papers, which were not
accessible through the above databases. The Appendix
includes the references to these papers as well.
Figure 1 presents the variables that were cited the most
frequently with regard to SMS recipients' cognitive, emotional,
and behavioral responses. In much of the research, the focus
was mainly on message and medium factors that could be
experimentally manipulated. Consumer-related factors (e.g.,
attitude toward SMS advertising in general) were also used in
our study due to empirical evidence suggesting that consumers
have generally negative attitudes toward mobile advertising
(Tsang, Ho, and Liang 2004).
Figure 1. Percentages of Factors Represented in Mobile
Literature Research
JournalofInteractiveAdvertising,Vol7No2(Spring2007),pp.1627.
©2010AmericanAcademyofAdvertising,Allrightsreserved
ISSN15252019
17JournalofInteractiveAdvertisingSpring 2007
INDEPENDENT VARIABLES
Location and Time
Location-based advertising is regarded as one of the most
interesting opportunities mobile commerce has to offer
because of its impact on the perceived informational utility of
the location-aware advertisement. Various studies have
empirically verified an increase in advertisement effectiveness
through spatial advertising (Andersson and Nilsson 2000;
Gopal and Tripathi 2006). Andersson and Nilsson (2000), for
example, evaluated location-sensitive SMS campaign
effectiveness based on traditional communication effect
measures, and showed that SMS campaigns were effective and
did have a positive impact especially on brand awareness and
purchase intention. In the current research, ‘ad localization' is
considered as sending information to consumers based on
their location, in order to convince them to visit a local store.
Furthermore, consumer behavior theory points to the
interdependence of time and location (Kang, Herr, and Page
2003). Targeting prospects at the right time and place actually
implies minimum perceived effort for the prospect in buying
the advertised product. Measuring actual time (for example,
11:00 p.m.) and location by distance (for example, 2 km from
point of sale) seems inadequate to fully capture the notion of
"right time and place." Therefore, time and location have been
examined under the umbrella of the perceived effort to buy the
advertised product (Cronin, Brady, and Hult 2000). It is
therefore expected that:
H1: SMS advertisements lead to more positive attitudes
toward the advertisement (Aad) and the brand (Ab) and
to more positive purchase intentions (PI) when the
perceived effort to buy the advertised product is low.
Interactivity
Interactive elements of a mobile ad attempt to elicit cognitive
responses by allowing the viewer to search for more
information through the mobile device. By providing
interactivity, the advertiser attempts to increase viewer
involvement by creating a two-way communication in real
time, instead of the usual one-way connection in media
advertising (Lohtia, Donthu, and Hershberger 2003). This
study regards interactivity as an objective medium
characteristic and adopts the "communicator's perspective" of
interactivity, meaning that if a mobile ad allows for a
reciprocal communication, then it is considered as more
interactive than a comparable ad with no such feature
(Hoffman and Novak 1996; Wu 2006). Sundar and Kim (2005)
show that the level of interactivity is positively associated with
ad and product attitudes. Thus, we hypothesize that:
H2: SMS advertisements that have an element of
interactivity lead to more positive Aad and Ab and to
more positive PI than SMS advertisements that have no
interactive elements.
Incentive
Individuals are interested in deriving some monetary benefit
from direct marketing programs (Milne and Gordon 1993). In
a Nokia-sponsored survey, conducted by HPI Research Group,
almost nine out of ten participants (86%) agreed that there
should be a trade-off for accepting advertisements on their
mobile devices (Pastore 2002). Prior research proposes that
price discounts are particularly effective in inducing effects,
such as purchase acceleration and product trial (Shi, Cheung,
and Prendergast 2005). Previous studies have shown that
retail price promotions change consumers' purchase decisions
and that retailers use price promotions more frequently to
boost store sales (Chen, Monroe, and Lou 1998). We therefore
hypothesize that:
H3: SMS advertisements that offer incentives lead to more
positive Aad and Ab and to more positive PI than
advertisements without incentives.
Ad Source (Credibility)
The term "ad source" is used to refer to traits of the
communicator (whether an individual or a company), and
includes expertise, trustworthiness, attractiveness, and power.
Mackenzie and Lutz (1989) found that credibility strongly
influences attitude toward the advertiser, which in turn is an
important predictor of attitude toward the ad. Corporate
credibility is defined as "the extent to which consumers believe
that a firm can design and deliver products and services that
satisfy customer needs and wants" and has been found to have
direct positive effects on attitude toward the ad, the brand, and
purchase intent (Choi and Rifon 2002). We focus on source
expertise and trustworthiness and expect that:
H4: SMS advertisements from expert and trustworthy
sources lead to more positive Aad and Ab and to more
positive PI than SMS advertisements from less expert and
trustworthy sources.
Appeal
Message appeals are usually divided into rational and
emotional ones (Johar and Sirgy 1991). Rational appeals are
18JournalofInteractiveAdvertisingSpring 2007
typically based on factual information and focus on product
attributes. Emotional appeals, on the other hand, typically
intend to create positive emotions and develop a brand
personality. Emotional appeals have been found to be most
effective when brand response involvement and advertising
message involvement are low, whereas rational appeals are
found to be relatively more effective when customers are
highly involved with the brand and the advertisement (Baker
and Lutz 2000). Johar and Sirgy (1991) have proposed that
value-expressive advertising appeals are persuasive when the
product is value-expressive, whereas utilitarian appeals are
persuasive when the product is utilitarian. A series of studies
by Shavitt (1990) yielded evidence about the attitude functions
associated with different products, and showed that attitudes
toward products that serve different functions respond to
different types of advertising appeals. In this research, we
assess SMS advertisements' use of emotional appeals for a
"feel" product of moderate involvement and we hypothesize
that:
H5: SMS advertisements for a "feel" product that use
emotional appeals lead to more positive Aad and Ab and
to more positive PI than SMS advertisements that use
rational appeals.
Product Involvement
In light of our initial review of prior research on mobile
advertising, there is a need for comparative research that
explores whether mobile phone users react differently to
diverse types of products. As Malhotra (2005) argues, "it is
likely that the relative effect of cognition versus affect varies...
across objects (e.g., perfumes vs. mutual funds)" (p. 480).
According to the FCB Grid (Ratchford 1987; Vaughn 1986),
products differ in their "feel or think" nature. When
individuals base their purchase decision mainly on how they
feel about the product, then the product is characterized as
"feel"; when the purchase decision is based mainly on
thoughts, then the product is characterized as "think"
(Ratchford 1987). As Laurent and Kapferer (1985) argue, the
degree to which consumers process advertising
communications and react to the message in an active or
passive way depends on their involvement with the product.
The Elaboration Likelihood Model (Petty and Cacioppo 1986)
suggests that involvement affects motivation to process
information. People with high product involvement may be
more likely to explore more product-specific information. If
advertisement arguments are strong, involved consumers may
be more likely to form a positive attitude toward the advertised
products. Due to the limited information quality that SMS
advertisements can convey to consumers we expect that:
H6: Aad, Ab and PI will be less favorable when an SMS
advertisement concerns a high-involvement product,
compared to an advertisement for a low-involvement
product taking into consideration both think and feel
dimensions.
Attitude toward Mobile Advertising in General
The study of attitude toward advertising in general may be
especially significant because it influences attitudes toward a
specific ad, an important antecedent of brand attitudes (e.g.,
Alwitt and Prabhaker 1992; Mackenzie and Lutz 1989). Tsang,
Ho, and Liang (2004) also found that consumers have
generally negative attitudes toward mobile advertising unless
they have specifically consented to receive the advertising
messages. Thus, it is possible that attitudes toward specific
mobile advertisements are influenced by attitudes toward
advertising via cellular phones in general. We therefore expect
that:
H7: Aad, Ab and PI for the advertised product will be less
favorable when a consumer has a generally negative
attitude toward mobile advertising, than when a
consumer has a generally positive attitude toward mobile
advertising.
Prior to the next section, it should be noted that ad relevance
was not manipulated in our experiment but was controlled
through pre-testing to choose products of moderate relevance
to test hypotheses H1-H7. This was intentionally selected in
order to avoid possible confounding problems via the selection
of products that were of either low or high interest to the
consumer.
DEPENDENT VARIABLES
The measures of effectiveness used in our study were attitude
toward advertisement, brand, and purchase intention. Attitude
toward the ad is a strong mediator of advertising effectiveness
(Batra and Ray 1986; Homer 1990) and studies have shown a
strong positive relationship between the ad and brand attitude,
which in turn is positively related to purchase intention.
Figure 2 summarizes our conceptual model. We believe that
consumer attitudes (Aad and Ab) and purchase intention (PI)
are affected by each of the aforementioned ad characteristics
(location and time, interactivity, incentive, appeal, ad source,
appeal, and product involvement).
19JournalofInteractiveAdvertisingSpring 2007
Figure 2. Conceptual Model: Factors Affecting Consumer
Attitudes and Purchase Intention
METHOD
Sample
Management Science students from a large university located
in Athens, Greece, participated in the experiment. A student
sample may be better than a sample taken from the general
population in terms of predictive validity (Danaher and
Mullarkey 2003). Ninety-seven students were randomly
assigned to two groups of approximately equal size. Fifty
students formed group 1, while the remaining forty-seven
students formed group 2. Each group saw seven different SMS
advertisements corresponding to the aforementioned
manipulated variables. Among the 97 participants, 58 were
female, while 39 were male. The majority of the participants
were 19-23 years old (92.3%), while the remaining 7.2% were
24-28 years old. Mobile phone ownership reached 100%, with
69.1% of the participants using SMS one or more times per
day. We also took into account previous experience with SMS
advertising. Twenty-two of the participants stated that they
had never received an SMS advertisement.
Procedure
The participants read instructions indicating that they were to
evaluate SMS advertisements for six fictitious products since
prior familiarity with the advertised brands could potentially
confound our results (Dahlen 2001). Each advertisement was
described as permission-based and was shown via a mobile
phone screen to increase external validity (Figure 3). All
participants were asked to state their attitude toward mobile
advertising in general prior to the evaluation of the SMS
advertisements. Each participant belonged either in group 1
(N=50) or group 2 (N=47). Group 1 participants saw seven
SMS advertisements. To be more illustrative, the first SMS
message advertised the fictitious Goldy chocolate bar that
could be bought in a store approximately five kilometers away
from the experimental location. The second ad had no
interactivity element, while the third ad informed the
participant about the price of Goldy but used no price-off
incentive. The fictitious product Delight instant coffee was
employed to test ad source credibility, following the
manipulation procedure of Goldberg and Hartwick (1990).
Conversely, participants in group 2 could buy Goldy from a
shop which was located just a few meters away (advertisement
1); could learn more about the new brand through an SMS
reply (advertisement 2); and, in the third ad, could buy the
chocolate bar with a price-off discount. The experimental
conditions are illustrated in Table 1.
Figure 3. Illustration of an SMS Advertisement
In order to control other possible confounding effects, twenty-
seven product categories were pre-tested for the "feel/think"
nature of the product (following Ratchford 1987) and
involvement. The categories of chocolate bar (moderate
feel/moderate involvement) and instant coffee (moderate
feel/moderate involvement) were selected to examine the
effects of the independent variables, except for the product
involvement conditions. The product categories of sun glasses
(high feel/high involvement), laptop (high think/high
involvement), CD-Recordable (moderate think/moderate
involvement), and potato chips (moderate feel/moderate
involvement) were selected to examine the possible effects of
product involvement.
The arguments contained in the advertisements were also
selected based on a preliminary study, where different
arguments were tested for persuasiveness, comprehensibility,
familiarity, and emotional versus rational appeal (following
20JournalofInteractiveAdvertisingSpring 2007
Petty and Cacioppo 1986). Arguments of equal persuasiveness,
comprehensibility, and familiarity were selected to avoid
confounding effects.
Table 1. Experimental Conditions
Finally, the likelihood that participants would go through the
information in the advertisements was not constrained to be
either very high or low. Participants could choose to read the
advertisement or not, according to their motivation. As such,
these experiments were conducted under moderate
elaboration conditions. Importantly, these are likely to be the
conditions under which many recipients will receive
advertisements in real life conditions.
MEASURES
Most of the constructs employed in this study were adapted
from prior research. Table 2 provides the studies for the
operationalization of the employed constructs.
Table 2. Operationalization of the Employed Constructs
Since this study attempted to shed light on the effects of a
great number of factors, the authors intentionally selected
reliable scales that incorporated few items in order to keep the
data collection instrument as short as possible. Thus, six
constructs were measured with a single-item.
RESULTS
Manipulation Checks
As anticipated, the participants in group 1 (M = 4.63, SD =
2.13) perceived buying the chocolate bar as more effortful (t =
6.03, df = 95, p < 0.001) than the participants in group 2 (M =
2.35, SD = 1.15). Moreover, group 1 respondents (M = 3.04,
SD = 1.41) found the second SMS ad less interactive (t = -2.39,
df = 95, p < 0.05) than group 2 respondents (M = 3.77, SD =
1.57). When the participants were asked to state if the offer
provided any cost savings, the group 1 participants' mean was
3.30 (SD = 1.35) and group 2 participants' mean was 5.40 (SD
= 1.33) (t = -7.7, df = 95, p < 0.001). The respondents in group
1 reported that the SMS advertisement's appeal was indeed
emotional (M = 3.08, SD = 1.2) while the respondents in group
2 reported a rational appeal (M = 4.08, SD = 0.9) (t = -4.5, df =
95, p < 0.001). In terms of product importance, the
participants perceived the potato chips and the CD-R as
products of lower involvement (Mpotato chips = 3.03, SD =
1.6 and MCD-R = 5.26, SD = 1.4) than the sun glasses and the
laptop (Msun glasses = 5.95, SD = 1.28 and Mlaptop = 6.36, SD
= 1.2) (tthink = -6.24, df = 96, p < 0.001 and tfeel = 16.38, df =
96, p < 0.001). Finally, the manipulation of credibility was also
successful. The participants in group 2 perceived the advertiser
as more credible (M = 4.7, SD = 0.92) than the participants in
group 1 (M = 3.9, SD = 1.07) (t = -3.96, df = 95, p < 0.001).
Impact of Manipulated Variables on Advertising Effects
Table 3 denotes the t-values for the experimental conditions.
Hypotheses were tested at the 5% significance level. Five out of
the seven independent variables were found to have significant
effects on the dependent variables.
Location and Time. H1 was not supported (p > 0.05). In the
presence of products of moderate involvement and arguments
of moderate persuasiveness, SMS advertisements did not lead
to more positive Aad and Ab, or to more positive PI when
received closer to the selling point.
Interactivity. The direct effects of interactivity features were
tested for a moderate feel product with modest persuasive
arguments. The SMS ad prompted the consumer to send an
SMS to learn more about the advertised chocolate. This
specific interactive feature led to more negative attitudes
toward the advertisement and the brand, and to more negative
purchase intentions than SMS advertisements that did not
21JournalofInteractiveAdvertisingSpring 2007
have any interactive element. Therefore, H2 was not
supported.
Incentive. H3 stated that SMS advertisements that offered
incentives would lead to more positive attitudes toward the
advertisement and the brand, and to more positive purchase
intentions than advertisements without any incentives. H3 was
partially supported, although the use of incentives for the
specific product type did not positively influence attitude
toward the brand.
Ad Source. Unexpectedly, advertiser credibility did not seem
to influence the dependent variables as predicted by H4.
Although it is contradictory to the existing mobile advertising
literature, it should be taken into account that all SMS
advertisements manipulated in the experiment were perceived
as permission-based. Permission-based marketing, as studied
in the mobile advertising context, seems to have a moderating
effect on source credibility (Tsang, Ho, and Liang 2004).
Appeal. Even though the product employed in the
advertisements was aimed at satisfying a sensory need,
respondents preferred the factual appeal. Thus, H5 was not
supported, and in fact, the results were significant in the
opposite direction.
Product Involvement. While examining the "think and feel"
product dimensions related to the dependent variables, H6
was partially supported. The "feel" importance dimension did
not result in any significant relationship, although intense
systematic (central) information processing for low versus
high "think" products concluded in partial support of the sixth
hypothesis.
Table 3. Differences in Attitudes and Purchase
Considerations between Experimental Conditions
General Attitude toward SMS advertising. The results revealed
significant direct effects of general attitudes toward SMS
advertising on the dependent variables (Table 4). Thus, H7
was partially supported. In addition, we tested whether general
attitude toward SMS advertising interacted with any of the
above variables manipulated in this experiment. Responses of
general attitude toward SMS advertising were divided into two
groups based on a median split. Changes in the relationships
between the independent and dependent variables in the
presence of general attitude toward SMS advertising were
examined using ANOVA. To support the hypothesis that
general SMS advertising attitudes moderate these
relationships, we needed to see significant changes in attitudes
and purchase intentions among the interaction term measures.
However, the moderator effects were not significant at p <
0.05.
Table 4. Main Effects of General Attitude toward Mobile
Advertising on Attitudes and Purchase Intentions
DISCUSSION
The results from our experiment offer insight into the effects
of location and time, interactivity, incentives, ad source
credibility, appeal, product involvement, and attitude toward
mobile advertising in general, on the effectiveness of mobile
text advertisements. In accordance with the specific
experimental settings under which our research took place, the
following paragraphs summarize and reflect on our findings
for each of the seven factors tested.
Location and Time
The location of the SMS advertisement recipient did not affect
the dependent variables significantly. Although location-based
advertising has been heralded as one of the most promising
opportunities in mobile commerce because of its impact on
perceived informational utility, our research did not reveal any
main direct effects. However, interdependence may still exist
between location and the remaining manipulated variables.
This issue calls for further research.
22JournalofInteractiveAdvertisingSpring 2007
Interactivity
Contrary to our expectations, the use of interactive messages
led to negative attitudes and purchase intentions for the
particular product category studied. Research on interactivity
has been rather inconclusive (Liu and Shrum 2002). Some
studies on online web advertisements found interactivity as a
strong cue aiding the persuasive function of the online ads
(Sundar and Kim 2005), while others have concluded that
interactivity has a negative effect on advertising effectiveness
(Bezjian-Avery, Calder, and Iacobucci 1998). Our
experimental conditions showed a negative influence of
interactivity. One explanation for this could be the use of the
chocolate bar in tests of the interactivity variable. A chocolate
bar belongs to the self-satisfaction FCB quadrant (Lepkowska-
White, Brashear, and Weinberger 2003) and the pre-test
results showed a moderate purchase importance. In the
absence of a unique selling proposition (USP), since the
experimental conditions employed arguments of moderate
persuasiveness to avoid confounding effects, the interactivity
feature showed negative direct effects. Additionally, the
participants of the second group in our experiment had to
send an SMS to find out more information about the
advertised product. Sending an SMS implies some additional
monetary cost for a low-cost product, and this could have
negatively affected the dependent variables. Thus, it is essential
to explore the nature of mobile interactivity and determine the
conditions in which interactivity may be useful in an
advertising context.
Incentive
As expected, we confirmed that the use of incentives in SMS
advertisements led to more positive attitudes and purchase
intentions. This is in line with similar research in Internet
advertising, where most web surfers look for incentives to read
an advertisement before they click on it (Lohtia, Donthu, and
Hershberger 2003). In most cases, the presence of promotional
information, such as price reductions or discounts in banner
advertisements, is associated with higher click-through-rates
(Hupfer and Grey 2005). Additionally, in accordance with the
mobile literature (e.g., Barwise and Strong 2002), our research
supports that users expect a reward for receiving SMS
advertisements. Moreover, the use of incentives alleviates the
effects of negative attitudes toward SMS advertising on the
dependent variables. The work of Tsang, Ho, and Liang (2004)
provides further support for our research.
Ad Source (Credibility)
Surprisingly, the source of the advertisement did affect the
dependent variables significantly. A possible rationale is that
the perceived uncertainty and privacy cost effects on mobile
advertising communications may occur when providing
personal data to opt-in databases and not during a permission-
based SMS communication, as was the case of our test.
Permission-based marketing may alleviate the negative effects
of a non-reputable advertiser, at least within the context of an
uncluttered advertising medium as in our case (where nearly
76.3% of the respondents had received few, if any, SMS
advertisements before). Research in this area is at an
embryonic stage and calls for further research to determine the
effects of source credibility as mobile advertising clutter grows.
Appeal
The use of rational appeals led to more positive attitudes and
purchase intentions than emotional appeals, despite the fact
that testing was performed on a "feel" product. Although
several studies on online environments have demonstrated
that the use of emotional appeals in different product
categories exhibit higher effects (e.g., Drossos, Vrehopoulos,
and Ferles 2006), in the mobile context participants responded
more favorably to the informative content strategy. While
mobile devices are perceived as ideal for convenient anytime
shopping, their small screens and low-resolution displays
render the development of graphic applications a challenge. In
the absence of sound, image, and motion that could effectively
convey and demonstrate the product's ability to satisfy a
sensory need, text advertisements may be ineffective in
producing an influential emotional appeal. Instead, the quality
of information may play a more crucial role.
Product Involvement
Attitudes and buying intentions were less favorable when the
SMS advertisement concerned a high-involvement product,
compared to an advertisement for a low-involvement product.
In contrast to the web, the mobile environment is likely to
affect attitudes and purchase intentions for high involvement
"think" products negatively because of its inherent limitation
in enabling information search. However, there could be a
significant increase in the frequency of impulse purchases,
especially in low value, low involvement product categories
(Kannan, Chang, and Whinston 2001).
23JournalofInteractiveAdvertisingSpring 2007
Attitude toward Mobile Advertising in General
As expected, attitudes and buying intentions were less
favorable when a consumer had a negative attitude toward
mobile advertising in general. Our data suggest that
respondents hold negative attitudes about receiving mobile
advertisements. The mean overall attitude score was just 2.81
on a seven-point Likert scale. Given the unique nature of
mobile phones, agencies and managers should examine the
features of their opt-in database to effectively target
consumers.
Limitations and Future Research
Our contribution is an empirically-validated framework,
which is clearly lacking in the majority of existing research
regarding the potential and critical success factors of mobile
advertising. The validity and generalization of our results are
of course limited by a number of factors. We have chosen to
base our study on student attitudes. Although this seems like a
logical decision given the participation of this age group to
mobile advertising campaigns, our findings would be more
helpful if we had examined a more representative sample.
Moreover, while identifying the factors that influence mobile
advertising, we could not capture the relative importance
(weight) of each factor and constituent variable on the
campaign's success. Although interdependence may exist
between the manipulated variables, our experimental design
did not allow us to conclude about their interaction effects.
Furthermore, this paper has based its findings on products of
moderate involvement and arguments of moderate
persuasiveness. Different results may appear when employing
different product categories and argument qualities.
On issues of future research, our paper offers some potential
research avenues. Two significant research questions emerge
as a direct consequence of the work presented here. On the
one hand, research could be directed toward identifying the
clusters of consumers that are more positively inclined toward
SMS advertisements. On the other hand, investigating the
interaction of the aforementioned message characteristics
through a full factorial experimental design could elicit a more
precise picture of correlates of successful SMS advertising
campaigns.
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APPENDIX: Retrieved References for Mobile Advertising
Studies
27JournalofInteractiveAdvertisingSpring 2007
ABOUT THE AUTHORS
Dimitris Drossos is a Ph.D. Candidate in the Department of
Management Science and Technology at the Athens
University of Economics and Business and currently teaches e-
marketing at the Technological Educational Institute of Patras.
He is currently doing research on mobile advertising, as well
as m-commerce technologies and services.
Dr. George M. Giaglis is an Associate Professor of eBusiness
at the Athens University of Economics and Business. His main
research interests lie in the areas of mobile and wireless
applications and services; ubiquitous, pervasive, and wearable
information systems; business process modeling and
simulation; and information systems evaluation. He has
published more than 100 articles in leading journals and
international conferences. Since 2001, he has been the Director
of the ISTLab Wireless Research Center
(http://www.mobiforum.org/).
Dr. George Lekakos is an Adjunct Lecturer at the Department
of Management Science and Technology, Department of
Computer Science, University of Cyprus. Dr. Lekakos'
research interests are in the area of personalized and adaptive
systems, human-computer interaction, and machine learning.
He has published more than 30 papers in international
journals and conferences, and he is the co-editor of books and
conference proceedings.
Dr. Flora Kokkinaki is an Assistant Professor in the
Department of Marketing and Communication at the Athens
University of Economics and Business. Her research interests
include attitude theory and consumer decision-making. She
has published in the British Journal of Psychology, the British
Journal of Social Psychology, and the Journal of Economic
Psychology.
Maria G. Stavraki is a Ph.D. Candidate in the Department of
Marketing and Communication at the Athens University of
Economics and Business. Her research interests include
consumer behavior and affective processes in attitude change.
... According to Pousttchi and Wiedmann (2009), purchase intention is a consumer's conscious decision-making to acquire or purchase a brand's product or services. According to Drossos et al. (2007), brand marketing and consumer demographics are widely cited factors that shape or influence consumers' purchase intention in the literature available. Pousttchi and Wiedmann (2009) mentioned that brand incentives and interactiveness, also, brand advertisements' appeal could influence consumers' purchase intention in mobile marketing. ...
... According to Pousttchi and Wiedmann (2009), purchase intention is a consumer's conscious decision-making to acquire or purchase a brand's product or services. The researchers believe that purchase intention is connected to brand awareness because, according to Drossos et al. (2007), brand marketing and consumer demographics are widely cited factors that shape or influence consumers' purchase intention in the literature available. ...
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... The majority of existing research in mobile and text message advertising emphasises the potential advantages of conveying predominantly rational messages. Objective and factual content (Banerjee and Rishika, 2015), rational appeals, quality information (Drossos et al., 2007(Drossos et al., , 2011 and credibility (Ström et al., 2014) have been linked to greater positive effects on consumer learning, attitude and behaviour. It has been also suggested that the inability to incorporate complex audiovisual cues in text messages (Drossos et al., 2007) restricts advertisers' capacity to create attention grabbing or interesting messages (Varnali, 2014) and thus effectively convey emotional appeals. ...
... Objective and factual content (Banerjee and Rishika, 2015), rational appeals, quality information (Drossos et al., 2007(Drossos et al., , 2011 and credibility (Ström et al., 2014) have been linked to greater positive effects on consumer learning, attitude and behaviour. It has been also suggested that the inability to incorporate complex audiovisual cues in text messages (Drossos et al., 2007) restricts advertisers' capacity to create attention grabbing or interesting messages (Varnali, 2014) and thus effectively convey emotional appeals. ...
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The ubiquity of mobile devices has given rise to numerous interactive marketing tactics, many of which involve the delivery of written text. Due to the paucity of studies assessing the effectiveness of mobile marketing communications, the present research aims at identifying factors affecting a text message's (or short message service - SMS) advertising impact. An investigation of 139 campaigns launched by eight leading multinational brands operating in the Greek cosmetics industry demonstrated that the introduction of targeted and shorter campaigns during seasonal sales, as well as the conveyance of emotional and rarity appeals, enhance purchase rate and sales impact. The results indicate that text message advertising should be geared towards particular marketing objectives. Its impact is enhanced by identification of contextual opportunities and adaptation of message content to consumers' buying situations. Overall, with use of data from marketing practice, the present study contributes to improved campaign planning and execution.
... The mobile advertising literature suggests that personalisation (Bacile, Ye, & Swilley, 2014;Drossos, Giaglis, Lekakos, Kokkinaki, & Stavraki, 2007;Shaheen et al., 2017), entertainment (Bhutto & Talibb, 2018;Chowdhury, Parvin, Weitenberner, & Becker, 2006), credibility (Okoe & Boateng, 2015;Wang et al., 2019), informativeness (Martins, Costa, Oliveira, Gonçalves, & Branco, 2019;Salam, Muhamad, & Leong, 2018), and irritation (Jasarspahic & Duman, 2014;Sigurdsson et al., 2018) are the widely studied determinants influencing individuals' attitudes towards receiving mobile advertisements which in turn affect their intention to receive mobile advertisements (Bauer, Reichardt, Barnes, & Neumann, 2005;Choi, Hwang, & McMillan, 2008;Nguyen et al., 2016;Sigurdsson et al., 2018;Tsang et al., 2004;Ünal et al., 2011;Xu, 2006). The association between these variables and attitude towards receiving mobile advertisements is elaborated below. ...
... The included studies were conducted in 27 countries and were based on the data collected from 17,818 respondents. Across these studies, the minimum sample size is 97 (Drossos et al., 2007), and the maximum is 1,215 (Murillo, 2017). ...
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Adopting a meta-analysis approach, this study synthesises the quantitative literature on mobile advertising and proposes a meta-analytic conceptual model that shows the frequently studied variables in the literature. We performed a bivariate and a multivariate meta-analysis to examine the association between the antecedents, attitude, and intention to receive mobile advertisements. The findings show that personalisation, entertainment, credibility, and informativeness are positively associated with customer attitudes towards receiving mobile advertisements while irritation is negatively associated with it. Attitudes have a positive relationship with intention to receive mobile advertising. To investigate the possible reasons for inconsistent findings, we performed a moderation analysis. The findings provide insightful recommendations to mobile advertisers to design effective mobile advertisements that can trigger positive customer attitudes and intention to receive mobile advertisements. Academically, this meta-analysis shows the most influencing factors that trigger positive customer attitudes towards receiving mobile advertisements. Furthermore, it explains the possible reasons for inconsistent findings of the previous studies. Accordingly, it contributes to the mobile advertising literature.
... When a customer is highly engaged with the brand and its advertisement the rational appeal is very effective but when there is little involvement of customers with the brand the emotional appeal is more effective (Baker & Lutz, 2000). Entertainment, Appeal and product involvement have a direct impact on consumers' attitudes towards brand, advertisement and their purchase intention (Drossos, Giaglis, Lekakos, Kokkinaki, & Stavraki, 2007). Pousttchi & Wiedemann (2006) stated that quizzes and contest through SMS append value towards marketing campaigns; furthermore, they are influential in generating an affirmative stance of the customers towards message marketing. ...
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... Correspondingly, we recommend suitably managing these factors to create personalized, valued pop-up ads. In this process, it is also pivotal to track user preferences that can be inferred from their game-related activities, search history, personal information, etc. (Jeong et al., 2011;Singh and Cole, 1993;Drossos et al., 2007). ...
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Purpose Though the videogame literature is thriving, little remains known regarding the effectiveness of pop-up ads that appear in videogames. Addressing this gap, this study, therefore, aims to explore pop-up ads as an important tool to prompt gamer-perceived advertisement value and their subsequent intent to install the advertised videogame. Design/methodology/approach To frame the analyses, the authors adopt and extend Ducoffe’s advertising value model by incorporating the visual/audio aesthetic videogame components that are largely overlooked in prior research. Using a self-administered survey, data were collected from 321 online gamers. The authors tested the model by using partial-least-squares-based structural equation modeling (PLS-SEM). Findings The results indicate that pop-up ad-related incentives, entertainment, credibility, personalization, audio aesthetics and irritation significantly affect user-perceived ad value. In turn, perceived ad value was found to affect players’ intent to install the advertised videogame. Research limitations/implications Though the findings corroborate the importance of pop-up ads being perceived as informative and/or entertaining, they also emphasize the value of personalized ads, ad-related incentives and audio aesthetic, which impact gamers’ intent to install the advertised videogame. Practical implications This study advances managerial understanding of videogame-based services, which is expected to be particularly useful for freemium-based videogame marketers and developers. Originality/value By extending Ducoffe’s model of advertising value, the authors apply the proposed framework in the online videogaming-based pop-up ad context, and explore the effect of user-perceived pop-up ad value on their intent to install the advertised videogame.
... Correspondingly, we recommend suitably managing these factors to create personalized, valued pop-up ads. In this process, it is also pivotal to track user preferences that can be inferred from their game-related activities, search history, personal information, etc. (Jeong et al., 2011;Singh and Cole, 1993;Haghirian and Madlberger, 2005;Drossos et al., 2007). ...
... Correspondingly, we recommend suitably managing these factors to create personalized, valued pop-up ads. In this process, it is also pivotal to track user preferences that can be inferred from their game-related activities, search history, personal information, etc. (Jeong et al., 2011;Singh and Cole, 1993;Drossos et al., 2007). ...
Article
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2021), Videogames-as-a-Service: Converting Freemium-to Paying Users through Pop-up Advertisement Value, Journal of Services Marketing, Forthcoming. Abstract Purpose: Though the videogame literature is thriving, little remains known regarding the effectiveness of pop-up ads that appear in videogames. Addresing this gap, we therefore explore pop-up ads as an important tool to prompt gamer-perceived advertisement value and their subsequent intent to install the advertised videogame. Design/methodology/approach: To frame our analyses, we adopt and extend Ducoffe's advertising value model by incorporating the visual/audio aesthetic videogame components that are largely overlooked in prior research. Using a self-administered survey, data were collected from 321 online gamers. We tested the model by using partial-least-squares-based structural equation modeling (PLS-SEM). Findings: The results indicate that pop-up ad-related incentives, entertainment, credibility, personalization, audio aesthetics, and irritation significantly affect user-perceived ad value. In turn, perceived ad value was found to affect players' intent to install the advertised videogame. Research limitations/implications: Though the findings corroborate the importance of pop-up ads being perceived as informative and/or entertaining, they also emphasize the value of personalized ads, ad-related incentives, and audio aesthetic, which impact gamers' intent to install the advertised videogame. Practical implications: This study advances managerial understanding of videogame-based services, which is expected to be particularly useful for freemium-based videogame marketers and developers. Originality/value: By extending Ducoffe's model of advertising value, we apply our proposed framework in the online videogaming-based pop-up ad context, and exploring the effect of user-perceived pop-up ad value on their intent to install the advertised videogame.
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Mortality salience is omnipresent in the life of consumers. For example, during the COVID-19 pandemic, when consumers retire, or when they consider products related to death such as life insurance. This research examines how consumers’ level of religious commitment and geographic location influence response to death primes in advertisements. Using terror management theory as a conceptual framework, three experiments examine differences between consumers sampled from countries in Asia and the Americas. Study 1 reveals that consumers sampled from an Asian (vs. American) country respond more positively to death primes (vs. no prime) in advertisements. Study 2 replicates these findings and shows that religious commitment moderates such effects, with lower religious commitment consumers being more reactive to death primes than higher religious commitment consumers. Study 3 confirms religion’s influence by priming religion and identifies perceived product need as mediating the relationship between the interaction of religion × death prime × country and advertised product evaluations. Practical implications for international advertising are provided.
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With the advent of ubiquitous GPS-enabled mobile devices, social networking users find it exciting to not only share who or how they are on online social networking platforms but also where they are located. This new trend of social networking applications, known as Proximity Based Social Networking (PBSN), allow users to check-in, share their locations with friends and in addition, enable discovery of people and places using the embedded technologies in mobile devices such as GPS, Bluetooth, Wi-Fi, etc. During the recent years, a huge adoption of PBSN has been observed in urban environments eliciting a great interest to service providers, application developers and researchers. In this chapter, a comprehensive survey of PBSN covering the main types of PBSN and the different components such systems. A new model of categorization of PBSN applications is presented with suitable examples of existing systems classified under their respective application areas. This study also outlines the different architectures used in PBSN platforms and the popular frameworks used for designing such systems. A thorough evaluation of PBSN is done based on several important criteria and a comparison of a number of PSBN systems is illustrated. To the best of our knowledge, this is a first work providing a detailed comparison of existing PBSN platforms and an in-depth classification of the different applications. Finally, the major research challenges are discussed.
Chapter
Communication represents a mandatory facet for any type of trading in the globe. In the modern world, technology comprises the most crucial key element of communication. In the business world, the proper time communication conquers with the help of satellite applications. Predominantly for defense dedications, satellite communication is used. Gradually the satellite communication usage implemented to civic. A satellite navigation system used to transmit the signal between a group of satellites in the orbit and receivers in the ground station. This chapter’s key objective is to explain both the global and regional level satellite navigation system and its technology and application. This section describes the commencement of each Global Navigation Satellite System (GNSS) operational plan and scope of launching and orbits plane where the number of satellites placed and their usage. Significantly, GNSS architecture segments are a vital portion of satellite navigation. The operative mechanism of the respective segment and signal receiving technique and their frequency bandwidth specifications offer more clarity about the navigation system. The satellite technology consists of various technologies like fusion, augmentation, and accuracy of the receiver device dealing impropriety signals and high precision clock technology. The satellite-based applications used in public usage like recent farming methods in agriculture, weather forecasting, and ocean technology for estimating environs based study. For continuous updating of the GNSS application, the international forum formed in the name of Interagency Operation Advisory Group (IOAG). This IOAG full-time and observer member details and each licensed country agencies list specified in the last part.
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MacKenzie, Lutz, and Belch have enhanced our understanding of the mediating role of attitude toward the ad (A Ad ). The current study replicates and extends the structural equation tests of the four competing models they presented. Two independent datasets are used to examine the role of processing involvement. Consistent with the earlier findings, the dual mediation hypothesis model provides the “best” fit of the data in both experiments. However, the hypothesized causal path between brand cognitions and brand attitudes that emerges for each of the datasets conflicts with the earlier findings. Contrary to expectations, processing involvement does not produce substantial differences in the specification or strength of the causal paths.
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The authors address the role of marketing in hypermedia computer-mediated environments (CMEs). Their approach considers hypermedia CMEs to be large-scale (i.e., national or global) networked environments, of which the World Wide Web on the Internet is the first and current global implementation. They introduce marketers to this revolutionary new medium, propose a structural model of consumer navigation behavior in a CME that incorporates the notion of flow, and examine a series of research issues and marketing implications that follow from the model.
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Recent research has identified attitude toward the ad (AAd) as an important construct mediating the effects of advertising on brand attitude and purchase intention. To date, however, little attention has been directed toward explaining the origins of AAd. The authors present the latest version of a theory of AAd formation, report the results of an empirical test of a portion of that theory, and offer further refinements to the theory based on the observed results. Implications of the findings for advertising practice are discussed.
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Supermarkets are heavy users of sales promotion devices and need to be able to assess the effectiveness of these tools. Consumer response (brand switching, purchase acceleration, stockpiling, product trial, spending more) to five different sales promotion tools (price discounts, in-store demonstrations, coupons, sweepstakes and games, and ‘buy one get one free’) was investigated through a survey of 206 supermarket shoppers in Hong Kong. Price discounts and buy-one-get-one-free offers were felt by the consumers to be the most effective promotional tools for inducing purchase acceleration, stockpiling and spending more. In-store demonstrations were felt to be mainly effective in encouraging product trial. Coupons were considered effective mainly in inducing stockpiling and purchase acceleration. Sweepstakes and games, in contrast, were felt to be relatively ineffective in terms of generating all types of consumer response. Recommendations for marketers are presented, along with suggested directions for future research.
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The authors conceptualize direct mail as an implied social contract between marketers and consumers. Four attributes constitute the direct mail social contract: volume, targeting, compensation, and permission. Several proposals have been advanced in an effort to protect consumer privacy in the direct mail environment. These proposals would directly or indirectly result in changes in the levels of the social contract attributes. The authors use a conjoint study to measure the trade-offs consumers make among these attributes. The results suggest consumers want improved targeting efficiency and lower mail volume, and they are not willing to pay for these improvements. These findings suggest that consumers consider several attributes in their evaluation of direct mail social contracts. Proposals to alter the direct mail environment must consider all these attributes in concert.
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Wireless advertising is a new, exciting marketing channel with unique features, still in its infancy. The ability to send out targeted, customised information directly to the pockets of the consumers is a very appealing concept to most advertisers. The predictions of future industry growth are skyrocketing and many players are eager to invest. However, many hesitate and some are even sceptical to the idea. The main concerns are consumer acceptance and the effectiveness of the medium as a channel for advertising purposes. The need for increased knowledge in these two areas is therefore substantial. Before companies commit to this industry they want evidence of acceptance and effectiveness. This study aims to estimate and explore the effectiveness of an SMS advertising campaign. This has been done by first evaluating its effectiveness on traditional communication effect measures. The measures are Ad Awareness, Brand Awareness and Attitude, Purchase Intention and Search for more information. Secondly, possible mediators of advertising effectiveness have been investigated, i.e. ad specific and medium specific factors that have impacts on the evaluation measures. The study is based on a trial conducted in Sweden in September 2000. The end-users had signed up for an advertising-financed news service on SMS (Short Message Service). The messages started with a short news update and ended with a 50-character long advertisement. The individual end-user
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An Internet banner that advertised a free sample generated higher click-through than a banner ad with information only. The ad attitude and site focus of experiential users were positively affected by the sample offer, but this incentive had a negative effect on goal-directed searchers, who appeared to regard the sample-offer banner as a distraction that interfered with search goals and reduced satisfaction experienced at the host site. Beliefs about bias in the site information were unaffected and goal-directed searchers expressed more favorable return visit intentions than experiential users. Further research is needed to clarify the effects of incentive-offer banners on experiential versus goal-directed users. In particular, the Interactive Advertising Model theorizing concerning goal-directed searchers should be examined more closely.