Consumer Perceptions of Mobile Phone Marketing A Critical Analysis - Assignment Example

Consumer perceptions of mobile phone marketing – A critical analysis The Purpose The purpose of this paper is to examine and analyzethe concept, conceptualization process and operationalization of the concept with reference to the research work “Consumer perceptions of mobile phone marketing: a direct marketing innovation” published, taking into account the limitations such as reliability and validity of the data, its source as well the study. Methodology  The research paper stated, “A deductive, quantitative research approach was adopted, where data was collected using a self-completed questionnaire administered to a sample of 254 university students. (Design/ Methodology/ Approach)  This paper aims to critically analyze the purpose, methodology and findings of the research and evaluate the results. Findings  There is lack of clarity in conceptualization, and consequentially, in Operationalization of the concept, that is, measurement of the variables consisting of specific observations.  “Consumer perceptions of mobile phone marketing” has been relegated to the secondary place as an ‘incidental factor’ which could be inferred from the author’s statement, “Thus, it is proposed that a consumers level of involvement with their mobile phone will influence their decision to adopt or reject marketing communications sent via this channel”   Managerial implications Internet, telephone and media are converging with greater velocity.  Mobile phone is the property of the user.  When his mobile phone is used without his consent for marketing, his initial reaction may be indifference or negative.   The individual’s perception is dependant upon the utility derived by him.  Therefore, blending utility aspect in marketing is necessary to improve the consumers’ perception.  Advertising through SMS is gaining momentum as a part of mobile marketing, and the marketing strategies of trade and business can’t ignore mobile phones in the field of advertising.      2 Shortcomings and Limitations The sample does not represent the population meaningfully.  The samples used in the methodology might have been suitable for mobile phone usage in Colleges and Universities.  The observations would be homogenous as it will not reflect the disparities in income in the society.  Important factors such as such as income levels, age group, business or employment background, educational backgrounds etc. have no bearing on the samples selected for observation and analysis. Article type  Study and analysis of Research work. Key words    Mobile Phone Marketing, Consumer Perceptions, Consumer behavior,  SMS Advertising 1.  Article Citation Authors: Gemma Roach, School of Management, University of Tasmania, Launceston, Australia Research Paper:  “Consumer perceptions of mobile phone marketing: a direct marketing innovation”     Volume 3, Issue 2, Direct Marketing: An International Journal, Published: 2009, Start Page: 88 2. Concept The original study examined “how a consumers perception of the relative advantages, compatibility and complexity associated with mobile phone marketing, and their involvement with their mobile phone, influenced their intention to accept marketing communication sent via this channel.”  We evaluate the study with reference to the conceptualization and operationalization of the process.  The idea or concept involves the following three important factors.   Acceptance and adoption of the mobile phone technology  Acceptance and adoption of the technology includes various services connected with the Mobile Phone, such as SMS, Internet, Photography, Music, Games and so on.      3 Mobile phone as a medium of marketing   The mobiles are used as an effective tool for marketing, nowadays.  There are broadly two types of marketing involved here, and the first is instrument based, such as downloading of music, caller tune, internet services, games, photography, quiz, contests, etc. and secondly, the other direct marketing activities not related, except as a medium, to the function of mobiles per se.  Attitude of the consumers towards application of mobile for marketing    Mobile phone is the property of the user.  When his mobile phone is used without his consent for marketing, his initial reaction may be indifferent or negative.   The individual’s perception is dependant upon the utility derived by him.  Therefore, blending utility aspect in marketing is necessary to improve the consumers’ perception. Consumer behavior:  “According to Levine and Burgess (1997), negative emotions tend to signal a problem and may lead an individual to focus on specific aspects of the problematic situation” (Avinash Kapoor, Chinmaya Kulshrestha, Consumers perceptions: an analytical study of influence of consumer emotions and response, 2009) “Several researchers have studied the factors which influence consumer acceptance of marketing messages sent via this medium (Barnes and Scornavacca, 2004;Barwise and Strong, 2002; Bauer et al., 2005; Carroll et al., 2007; Kavassalis et al., 2003; Leppäniemi and Karjaluoto, 2005). Overall, their findings reveal consistent support for three main elements: whether the user has given their permission to receive marketing messages to their mobile phone; the level of control the service provider maintains during the transaction, and extent to which the user trusts the brand being marketed.” (2.1, Mobile phone marketing)  “Attitudes towards SMS advertising: Attitudes are conventionally regarded as an indicator of the effectiveness of advertising (Jun and Lee, 2007). According to Fishbein and Ajzen (1975), an attitude towards an object is defined as an individuals internal evaluation based on his or her beliefs. Similarly, consumer attitudes towards SMS advertising can be determined by the values that they attribute to SMS advertising (Ducoffe, 1995). As suggested by Jun and Lee (2007), when consumers are provided with benefits such as entertainment and information, they will perceive advertising in a more favorable light. In addition, SMS advertising is found to be attention grabbing, a source of information, interesting, and interactive (Maneesoonthorn and Fortin, 2004; Lee et al., 2006).” (Ian Phau, Young consumers motives for using SMS and perceptions towards SMS advertising, 2009) 3. Conceptualization process Conceptualization is the process of specifying the vague undefined concept, sorting out the kinds of observations and measurements that will be appropriate for the research.    4 “The paper reviewed the literature relevant to this study covered four main areas. First, the extent research in the field of mobile phone marketing was reviewed. This was followed by a consideration of the theory behind innovation adoption and the core innovation attributes. Finally, the literature relating to the concept of product involvement and how this may influence a consumers perception of an innovation was examined.”  (2, Conceptual framework and hypotheses)        The mobile phone industry is about to be dominated by the big players such as Google and Apple.  Black Berry & I- phone and the developments in software technology used in mobiles indicate a major reshuffle in this industry.  Therefore, any research undertaken in this field should take into account and discount the possible developments in future.  Convergence of technologies: The underlying point is that the internet, mobile phones and media is not mutually exclusive.  On the one hand storage capacity of the instrument is increasing exponentially, and the size of the instrument is becoming smaller, thinner and easy to handle.   The phenomenal growth of social networks like Facebook and Twitter, emergence of You Tube, etc. has already outpaced the ‘Future Shock’ of Alwyn Toffler.  Under the changed circumstances, the advertising and marketing have also undergone breathtaking changes.  In-text advertising, SMS advertising, etc. are all the results of the technological advancements. In view of the above, the conceptualization should be broad based and elaborate taking into account so many variable,  the ongoing revolution in convergence, its impact on society, diversities in needs, income levels of the users, subsidies involved in spreading of the technology, etc.  The scope of the research should be very wide and comprehensive for justifying the objective. Factors governing the study: The following are the important factors governing the study in this respect. Understanding the level of activity over a period of time from the angle of the service providers is ascertainable, but misleading.  The level of activity, for example, the number of SMS sent to the customers may not indicate the actual impact.  Collection of data with regard to the actual impact on business and industry is again          dependant upon the following: The collection of data with regard to phone based marketing where the mobile phone is the essential part and ‘centre’ of the marketing. Here, the data will be more or less accurate, as it is mainly online.  The rate of growth, depth and width parameters are measurable.  For example, down loading of caller tunes, internet usage, duration of calls, etc. fall under this category.      5 The data with regard to ‘Services’  would be reasonably accurate.  For example, number of seats booked through email and mobile phones in railways, air travel, cinema hall, hotels, etc. will fall into this category.  However, achieving accuracy of data regarding sales during a period, for example by an automobile dealer, through mobile phone marketing is very difficult. The growth is inherent generally in respect of service industries, where the growth of online business is exponential.   Accordingly, the level of perception with the respective consumer group varies.  What is useful to a group may act as a hindrance or source of irritation, to the others.   Therefore, the combined study of all the groups without considering these aspects would be misleading.  When the assessments are made component wise, and the aggregate impact is presented, the utility of the research will be enhanced. Utility factor  Consequently, questions would arise as to how utility could be incorporated into the marketing strategy with regard to the groups which are hither to indifferent or negative in their attitude.  Such strategy may involve subsidy to create awareness, introducing information or education value in marketing, quiz programs, prizes attached to messages and so on. At the stage of conceptualization, identifying the type of observations and measurements thereof is finalized, and the plan of action is firmed up on this basis.  In the “conceptual framework and hypothesis” there was a semblance of balanced approach in the study with regard to marketing, innovation, adoption and product involvement.  However, the main purpose of measurement of perceptions, on which the operationalization of the concept hinges on, has been sidelined. Innovation and adoption were given more thought, though we are dealing not with the innovations or adoption.   Going by the topic, in the present scenario, with mobile phones in the hands of our consumers, it has been expected that the research is for the assessment of their perceptions about the mobile phone marketing.  The researches made with this objective often form the basis for new ideas for the improvement of perceptions or exploration of new technique in marketing. 4. Operationalization of the concept Operationalization is the process of measurement of variables involved consisting of specific observations. In a wider sense it refers to the process of specifying the extension of a concept.  There are various measures. But, ratio measures are predominantly used in studies. Measurement of consumer perception is said to have been the primary objective of the research.        6 The three important attributes of innovation to the instruments, relative advantage, compatibility and complexity influences the decision of an individual in its adoption.   But, we are in the process of measurement of the perception of the consumers with regard to mobile phone marketing.  Therefore, identification of the uses for which the mobile phone is put to, by the consumers deserves greater attention.  The consumer’s attitude towards marketing though mobile phones is very much influenced by this factor.  The perception may be one of indifference, positive or negative. Factors to be considered There are so many factors to be considered in the study, such as geographical location, age group, educational background, whether the mobile phone carries prepaid or postpaid plan, employment status and so on.  When the perception is not neutral, there must be an attempt to measure the level of positive or negative perception.  To go one step further, the industry must analyze the causes to redefine and reorient the marketing strategies or rediscover new techniques to make the marketing more effective in this channel.  The perception towards mobile phone marketing varies from group to group and its usage. Therefore, measurements for the each group should be separately done in order to have the best results. “ A diverse range of definitions for the broad concept of mobile marketing exist (Mort and Drennan, 2002; Pousttchi and Wiedemann, 2006; Salo and Tähtinen, 2005).” (2.1 Mobile phone marketing)  Mobile Phone vs. Television Unlike televisions, the mobile phone is a two way medium with the benefits of television and much more in the latest models.   The screen content in the case of television is in the broadcaster’s control.  Marketing is carried out through advertisements.  It is the responsibility of the advertisers to keep the audience glued to the screen.  The advertisements are created by the professionals to give entertainment value to the consumer.  The themes of the advertisements are continuously changed to keep it fresh.  Seeing advertisements is the price paid by the viewers for the contents of the programs.  Sometimes, the children feel that the advertisements are more recreational than the programs!  As long as the viewers derive entertainment, the advertisements are the necessary intrusions, and are acceptable.  In the case of telephone marketing, there are the following pitfalls. 7 Mobile phones’ uses Primarily, the consumers use the phone for the purpose of communication.  (If he hears FM Radio, the mobile phone is used as a transistor radio, watches movies, it acts as a television, and the arguments given for television apply). The mobile phone, as an instrument, is used for various purposes. When the instrument is used for other purposes other than communication, the character becomes usage oriented. Therefore, the advertisements in FM radio reach the consumer, when he uses the mobile phone as transistor radio. Here, there is no question of the consumers’ perception about mobile phone marketing, as the marketing falls outside the purview of ‘mobile phone marketing’. Presently, marketing through mobile phone technology is characterized with the following factors. The marketing, mostly by way of SMS or voice mails are imposed on the consumers, and usually treated as hindrance to his business.   The marketing is not professional, as any body can send marketing messages to anybody else. As it is, there is no facility of blocking such messages, and the service provider’s control in this aspect is very limited. The telephone is a two way medium, but, the marketing techniques have not evolved to take full advantage of this medium.  Classification by various user categories is yet to be streamlined to make the data related to mobile phone numbers more useful and reliable. Redefining the strategies Classification of the consumers by various user categories is very important, because, the marketing technique should target the potential and right consumers for the right products and services. In this process, the resentment of the consumers, not related to the purpose, is avoided. The ratio between the activity and the results will be meaningful and reliable. The service providers should take initiative in this direction as they are in touch with the mobile phone users and gather information about the consumers at the time of registration. Such classified data may also become a source of income to such companies in the long run on account of additions and deletions that take place constantly. There is an element of advertisement potential for the classified data also. The success of marketing depends upon the perception of the users.  To create a change in perception, introduction of utility in messages to benefit the mobile user is imperative. 8 Marketing strategies or techniques developed should induce the mobile user to act upon the information, and the telephone as a two way medium with several add on facilities would be very effective in this regard. 5.  Findings  The ‘Abstract’ to the paper states, “Statistical analysis revealed that a consumers perceptions of two of the three innovation attributes tested (relative advantage and compatibility) were significantly associated with their acceptance (or adoption) of marketing messages sent via their mobile phone. However, a slightly weaker relationship between a consumers level of involvement with their mobile phone and their adoption of mobile phone marketing was found.”  The study concentrated on perception with reference to innovation attributes and adoption, though the ‘theme’ of the paper suggests “Consumer perceptions of mobile phone marketing” indicating lack of clarity in purpose.  Our study is limited to the perception of the mobile user or consumer about ‘mobile phone marketing’ and the conceptual frame work has included this aspect also. However the paper dwelt upon the background, innovations, acceptance and adoption of technology in details, and stated, “…Finally, the literature relating to the concept of product involvement and how this may influence a consumers perception of an innovation was examined.” (2, Conceptual framework and hypotheses) Necessity is the mother of invention.  Innovation is an ongoing process, and the consumers get educated consequently.  It is dependant upon their necessity to keep up to the technological developments.   The core aspect is however nothing to do with the technology.  The concept taken for the research is with reference to perceptions of the consumers about marketing through mobile phone technology in communication.    Operationalization of the concept, that is, measurement of the variables consisting of specific observations, with regard to “Consumer perceptions of mobile phone marketing” has been relegated to the secondary place as an ‘incidental factor’.    The paper states “Here, the researcher has conceptualized mobile phone marketing to be a process-like innovation, which distinguishes it from the mobile phone; a product innovation.” (2.2, Innovation adoption)  If the author has shifted from ‘Consumer perceptions of mobile phone marketing’ to ‘Mobile phone marketing’, the various user groups should have been classified and defined for this purpose, with relevance to the topic; in either way, it is the crux of the problem.  The analysis is more like ‘marketing of mobile phones’, rather than ‘marketing through mobile phones’. Further, the paper also concentrates more on ‘Innovation attributes’ and ‘adoption decision’ whereas the concept is shifted to marketing and not the mobile per se. In our picture, the consumer already has mobile phone in his hand.  9 Product involvement  The paper covers in detail the ‘Product Involvement’ of the consumer “The concept of product involvement has received widespread attention in the marketing realm since the 1980s, particularly in relation to advertising and consumer behavior (Andrews et al., 1990; Neal et al., 2004). Product involvement refers to the way in which consumers view different product categories, with regards to their feelings, thoughts and behavioral responses (Gordon et al., 1998). In the field of consumer behavior, previous researchers have found that a consumers level of product involvement can influence their behavior through its affect on information search and processing (Andrews et al., 1990; Bloch et al., 1986; Mantel and Kardes, 1999).” (2.4, Product involvement)  However, the article states, “Thus, it is proposed that a consumers level of involvement with their mobile phone will influence their decision to adopt or reject marketing communications sent via this channel” leaving the reader confused with regard to involvement -  involvement with the products or mobile use. 6.  Reliability of the measure    The paper says “Data were collected from a non-random sample of undergraduate university students at an Australian institution.    …    A self-administered questionnaire was developed, and then pre-tested with a separate group of respondents.   …      A total of 271 questionnaires were distributed in August 2007, of which 254 were returned and deemed valid for data analysis…   … Following factor analysis, the data were checked for reliability using Cronbachs α coefficient. As shown in Table II, the results of this test revealed that each of the scales used to measure the independent variables and the dependent variable, presented acceptable levels of reliability (that is, above the minimum level of 0.60 as suggested by Nunnally, 1967).” (3, Research methodology) We have to consider whether these variables have relevance to the “Consumer perceptions of mobile phone marketing” before considering the question of reliability. The following are the variables considered and the first three of the variables considered are innovation attributes. From the relevance point of view, already we have advanced our arguments. Compatibility Relative advantage Complexity Product Involvement Adoption 10 With regard to reliability, the author considers, “age structure of the student sample used here limits the generalizability of this study to consumers of all age groups.   Secondly the key constructs examined here are not considered exhaustive of all the possible drivers of consumer adoption of mobile phone marketing.”  (6, Conclusions and future research) 7.  Validity of the measure The findings are in the expected lines giving prominence to innovation and consumer adoption rather than ‘Consumer perceptions of mobile phone marketing’ or at least ‘mobile phone marketing’ “However, to examine this relationship further, simple linear regression was performed on the consumer involvement and adoption variables (see Table V for the results of this analysis). Overall, the regression model accounted for 63 per cent of the variance in the prediction of a consumers adoption mobile phone marketing, F (1, 252)=17.04, p Read More