TERM PAPER

CONSUMER PERCEPTION TOWARD MOBILE MARKETING

DATE 17/05/2010

SUBMITTED TO

MR.AMIT LAL

SUBMITTED BY

IRFAN 10900856

DEEPAK KUMAR 10901075

RAMNIWASH 10903356

RAJEEV KUMAR JHA 10900919

 INTRODUCTION

Mobile Marketing is a set of practices that enables organizations to

communicate and engage with their audience in an interactive and relevant
manner through any mobile device or network.

Mobile marketing via SMS

Marketing on a mobile phone has become increasingly popular ever since the rise of
SMS (Short Message Service) in the early 2000s in Europe and some parts of Asia
when businesses started to collect mobile phone numbers and send off wanted (or
unwanted) content.

Over the past few years SMS has become a legitimate advertising channel in some
parts of the world. This is because unlike email over the public internet, the carriers
who police their own networks have set guidelines and best practices for the mobile
media industry (including mobile advertising). The IAB (Interactive Advertising
Bureau) and the Mobile Marketing Association, as well, have established guidelines
and are evangelizing the use of the mobile channel for marketers. While this has been
fruitful in developed regions such as North America, Western Europe and some other
countries, mobile SPAM messages (SMS sent to mobile subscribers without a
legitimate and explicit opt-in by the subscriber) remain an issue in many other parts or
the world, partly due to the carriers selling their member databases to third parties.

Mobile marketing via MMS

MMS mobile marketing can contain a timed slideshow of images, text, audio and
video. This mobile content is delivered via MMS (Multimedia Message Service).
Nearly all new phones produced with a color screen are capable of sending and
receiving standard MMS message. Brands are able to both send (mobile terminated)
and receive (mobile originated) rich content through MMS A2P (application-to-
person) mobile networks to mobile subscribers. In some networks, brands are also
able to sponsor messages that are sent P2P (person-to-person).

A good example of MMS mobile originated Motorola's ongoing campaigns at House

of Blues venues where the brand allows the consumer to send their mobile photos to
the LED board in real-time as well as blog their images online.

Mobile web marketing

Google and Yahoo! as displayed on mobile phones

Advertising on web pages specifically meant for access by mobile devices is also an
option. The Mobile Marketing Association provides a set of guidelines and standards
that give the recommended format of ads, presentation, and metrics used in reporting.
Google, Yahoo, and other major mobile content providers have been selling
advertising placement on their properties for years already as of the time of this
writing. Advertising networks focused on mobile properties and advertisers are also
available.
REVIEW OF LITERATURE:_
Gemma Roach (2009) studied consumer perceptions of mobile phone marketing .
and comes to concluded that consumer's 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 consumer's level of
involvement with their mobile phone and their adoption of mobile phone marketing
was found. Sylvie Laforet(2008) The aim of this study is to investigate the market
status for online/mobile banking in China. With the recent and forecasted high growth
of Chinese electronic banking. The results showed Chinese online and mobile bank
users were predominantly males, not necessarily young and highly educated, in
contrast with the electronic bank users in the West. The issue of security was found to
be the most important factor that motivated Chinese consumer adoption of online
banking. Main barriers to online banking were the perception of risks, computer and
technological skills and Chinese traditional cash-carry banking culture. The barriers to
mobile banking adoption were lack of awareness and understanding of the benefits
provided by mobile banking Tommi Laukkanen (2007) explore and compare
customer value perceptions in internet and mobile banking. The purpose especially is
to compare customer perceived value and value creation between internet and mobile
bill paying service. And the results indicate that customer value perceptions in
banking actions differ between internet and mobile channels. The findings suggest
that efficiency, convenience and safety are salient in determining the differences in
customer value perceptions between internet and mobile banking .Teemu
Kautonen et al(2007)The purpose of his paper is to provide a three-country
comparison of personal and institutionally based trust as factors affecting consumers'
willingness to participate in permission-based mobile marketing. And his finding
shows that the main factor affecting the consumers' decision to participate in mobile
marketing is the company's media presence, which is a significant factor in all three
countries.
.

OBJECTIVE
1) To study the consumer perception towards mobile marketing in Ludhiana and
jalandhar
2) To analyse the growth of particular sector (banking) by mobile marketing
3) Open new vistas for new research.

RESEARCH METHADOLOGY

The study-The study was descriptive in nature with survey method being used to
complete the study because this research is the most commonly used and the basic
reason for carrying out descriptive research is to identify the effect of mobile
marketing . Descriptive research is also called Statistical Research. The main goal of
this type of research is to describe the data and characteristics about what is being
studied. Here we are also going to find out the characteristics and impact of mobile
marketing on the consumer learning.

Sample design
Population:- population include all the mobile user (student,professional, self-
employee) of Ludhiana and jalandher

Sample element:-individual responded where the sample element

Sample technique :- convenience sampling technique were use to select the

responded which is on the basis of non probability sampling

Sample size :- our sample size is 89 responded because we have both time as well as
cost constraint.

Tool for data collection :- Self designed questionnaire was used for identification of
underline factor responsible for consumer perception towards mobile marketing.

Toll for data analysis:-

SPSS software would be used for data analysis

HYPOTHESIS

NULL HYPOTHESIS
1) H0 ] Gender have no effect on consumer perception towards mobile
marketing .

2) H0 age have no effect on consumer perception towards mobile

marketing

3) H0 Occupation have no effect on consumer perception towards

mobile marketing.
4) H0 Awareness have no effect on consumer perception towards
mobile marketing.

5) H0 frequency of receiving message have no effect on consumer

perception towards mobile marketing.

6) H0 Type of message have no effect on consumer perception

towards mobile marketing.

7) H0 Bank offering message have no effect on consumer perception

towards mobile marketing.

8) H0 Reliability of the mobile marketing have no effect on consumer

perception towards mobile marketing.

ALTERNATIVE HYPOTHESIS

1) H1 Gender have effect on consumer perception towards mobile

marketing .

2) H1 age have effect on consumer perception towards mobile

marketing

3) H1 Occupation have effect on consumer perception towards

mobile marketing.

4) H1 Awareness have effect on consumer perception towards

mobile marketing.

5) H1 frequency of receiving message have effect on consumer

perception towards mobile marketing.

6) H1 Type of message have effect on consumer perception towards

mobile marketing.

7) H1 Bank offering message have effect on consumer perception

towards mobile marketing.

8) H1 Reliability of the mobile marketing have effect on consumer

perception towards mobile marketing.
 T-TEST
/TESTVAL=0
/MISSING=ANALYSIS
/VARIABLES=gender
/CRITERIA=CI(.9500).

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

gender of the respondend 88 1.32 .468 .050

T-Test

One-Sample Test

Test Value = 0

95% Confidence
Interval of the

Mean Difference

t Df Sig. (2-tailed) Difference Lower Upper

gender of the respondend 26.398 87 .000 1.318 1.22 1.42

Interpretation

H0- Gender have no effect on consumer H1 – Gender have effect on consumer

perception towards mobile marketing perception towards mobile marketing

Interpretation:
Here we are going to analyses the effect of gender on consumer perception towards
mobile marketing. After applying t-test on the respondent we lead with result that our
null hypothesis is rejected because the calculated value of t- test is less then default
value means (significance is less than 0.05) that gender have effect on it.

T-TEST
/TESTVAL=0
/MISSING=ANALYSIS
/VARIABLES=awareness

/CRITERIA=CI(.9500).

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

awareness about mobile marketing 89 1.26 .440 .047

One-Sample Test

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

awareness about mobile

26.966 88 .000 1.258 1.17 1.35
marketing
H0- awareness have no effect on consumer H1 – awareness have effect on consumer
perception towards mobile marketing perception towards mobile marketing

Interpretation:
Here we are going to analyses the effect of awareness on consumer perception
towards mobile marketing. After applying t-test on the respondent we lead with result
that our null hypothesis is rejected because the calculated value of t- test is less then
default value means (significance is less than 0.05) that awareness have effect on it.

T-TEST
/TESTVAL=0
/MISSING=ANALYSIS
/VARIABLES=offermessage

/CRITERIA=CI(.9500).

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

attitude towards bank offering

89 1.21 .412 .044
message

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

T Df Sig. (2-tailed) Mean Difference Lower Upper

attitude towards bank

27.780 88 .000 1.213 1.13 1.30
offering message
H0-bank offering message have no effect on H1 – bank offering message have effect on
consumer perception towards mobile consumer perception towards mobile
marketing marketing

Interpretation:
Here we are going to analyses the effect of bank offering message on consumer
perception towards mobile marketing. After applying t-test on the respondent we lead
with result that our null hypothesis is rejected because the calculated value of t- test is
less then default value means (significance is less than 0.05) that bank offering
message have effect on it.

ANOVA

Consumer perception

Sum of Squares df Mean Square F Sig.

Between Groups 20.471 3 6.824 1.569 .203

Within Groups 369.574 85 4.348

Total 390.045 88

Interpretation:

Null hypothesis Alternate hypothesis

H0-type of message have no effect on H1- type of message haveeffect on
consumer perception towards mobile consumer perception towards mobile
marketing marketing

As per our null hypothesis and as per our alternate hypothesis, we

applied our hypothesis formulation which came out with the following
results:
• On applying ONE WAY ANOVA for checking effect of types of
message on consumer perception towards mobile marketing , we
came up with conclusion that the significance level is more than
the alpha value(0.203 > 0.05).there for the null hypothesis will be
rejected .hence, type of message have effect on consumer
perception towards mobile marketing
ANOVA

Consumer perception

Sum of Squares df Mean Square F Sig.

Between Groups 11.942 4 2.986 .656 .624

Within Groups 377.512 83 4.548

Total 389.455 87

Interpretation:
Null hypothesis Alternate hypothesis
H0-reliability of message have no effect 1) -H1 Reliability of the mobile marketing
on C.p have effect on consumer perception
towards mobile marketing.

As per our null hypothesis and as per our alternate hypothesis, we

applied our hypothesis formulation which came out with the following
results:
• On applying ONE WAY ANOVA for checking effect of reliability
of message on consumer perception towards mobile marketing , we
came up with conclusion that the significance level is more than
the alpha value(0.624 > 0.05).there for the null hypothesis will be
rejected .so, Reliability of the mobile marketing have effect on
consumer perception towards mobile marketing
ANOVA

Cp

Sum of Squares df Mean Square F Sig.

Between Groups 1.124 2 .562 .124 .883

Within Groups 388.921 86 4.522

Total 390.045 88

Interpretation:
Null hypothesis Alternate hypothesis
H0- frequency of receiving message H1- frequency of receiving message
have no effect on consumer have effect on consumer
perception towards mobile perception towards mobile
marketing marketing

As per our null hypothesis and as per our alternate hypothesis, we

applied our hypothesis formulation which came out with the following
results:
• On applying ONE WAY ANOVA for checking effect of
frequency of receiving marketing message on consumer perception
towards mobile marketing , we came up with conclusion that the
significance level is more than the alpha value(0.883 >
0.05).there for the null hypothesis will be rejected, so we can say
that frequency of receiving message have effect on consumer
perception towards mobile marketing
ANOVA

Cp

Sum of Squares df Mean Square F Sig.

Between Groups .602 3 .201 .044 .988

Within Groups 389.443 85 4.582

Total 390.045 88

Interpretation:

Null hypothesis Alternate hypothesis

1) H0-Occupation have no effect 9) H1- Occupation have effect on
on consumer perception consumer perception towards
towards mobile marketing. mobile marketing.

As per our null hypothesis and as per our alternate hypothesis, we

applied our hypothesis formulation which came out with the following
results:
• On applying ONE WAY ANOVA for checking effect of types of
message on consumer perception towards mobile marketing , we
came up with conclusion that the significance level is more than
the alpha value(0.203 > 0.05).there for the null hypothesis will be
rejected ,it means Occupation have effect on consumer perception
towards mobile marketing
ANOVA

Cp

Sum of Squares df Mean Square F Sig.

Between Groups 6.550 2 3.275 .734 .483

Within Groups 383.495 86 4.459

Total 390.045 88

Interpretation:
Null hypothesis Alternate hypothesis
H0-age have no effect on consumer H1- age have effect on consumer
perception towards mobile perception towards mobile
marketing marketing

As per our null hypothesis and as per our alternate hypothesis, we

applied our hypothesis formulation which came out with the following
results:
• On applying ONE WAY ANOVA for checking effect of age
group on consumer perception towards mobile marketing , we
came up with conclusion that the significance level is more than
the alpha value(0.483 > 0.05).there for the null hypothesis will be
REJECTED so age have effect on consumer perception towards
mobile marketing

Findings of research

In the last I came to conclusion that:

• Here we are going to analyses the effect of gender on consumer

perception towards mobile marketing. After applying t-test on the
respondent we lead with result that our null hypothesis is rejected
because the calculated value of t- test is less then default value
means (significance is less than 0.05) that gender have effect on it.
As per our null hypothesis and as per our alternate hypothesis, we
applied our hypothesis formulation which came out with the following
results:
• On applying ONE WAY ANOVA for checking effect of types of
message on consumer perception towards mobile marketing , we
came up with conclusion that the significance level is more than
the alpha value(0.203 > 0.05).there for the null hypothesis will be
accepted .hence, type of message have no effect on consumer
perception towards mobile marketing

As per our null hypothesis and as per our alternate hypothesis, we

applied our hypothesis formulation which came out with the following
results:
• On applying ONE WAY ANOVA for checking effect of reliability
of message on consumer perception towards mobile marketing , we
came up with conclusion that the significance level is more than
the alpha value(0.624 > 0.05).there for the null hypothesis will be
accepted .so, Reliability of the mobile marketing have no effect on
consumer perception towards mobile marketing

• Here we are going to analyses the effect of awareness on consumer

perception towards mobile marketing. After applying t-test on the
respondent we lead with result that our null hypothesis is rejected
because the calculated value of t- test is less then default value
means (significance is less than 0.05) that awareness have effect on
it.

As per our null hypothesis and as per our alternate hypothesis, we

applied our hypothesis formulation which came out with the following
results:

• Here we are going to analyses the effect of awareness on consumer

perception towards mobile marketing. After applying t-test on the
respondent we lead with result that our null hypothesis is rejected
because the calculated value of t- test is less then default value
means (significance is less than 0.05) that awareness have effect on
it.
 • On applying ONE WAY ANOVA for checking effect of
frequency of receiving marketing message on consumer perception
towards mobile marketing , we came up with conclusion that the
significance level is more than the alpha value(0.883 >
0.05).there for the null hypothesis will be rejected, so we can say
that frequency of receiving message have effect on consumer
perception towards mobile marketing

As per our null hypothesis and as per our alternate hypothesis, we

applied our hypothesis formulation which came out with the following
results:
• On applying ONE WAY ANOVA for checking effect of types of
message on consumer perception towards mobile marketing , we
came up with conclusion that the significance level is more than
the alpha value(0.203 > 0.05).there for the null hypothesis will be
rejected ,it means Occupation have effect on consumer perception
towards mobile marketing

As per our null hypothesis and as per our alternate hypothesis, we

applied our hypothesis formulation which came out with the following
results:
• On applying ONE WAY ANOVA for checking effect of age
group on consumer perception towards mobile marketing , we
came up with conclusion that the significance level is more than
the alpha value(0.483 > 0.05).there for the null hypothesis will be
accepted so age have no effect on consumer perception towards
mobile marketing.

• Here we are going to analyses the effect of bank offering message

on consumer perception towards mobile marketing. After applying
t-test on the respondent we lead with result that our null hypothesis
is rejected because the calculated value of t- test is less then default
 value means (significance is less than 0.05) that bank offering
message have effect on it.

REFERENCE

1) Laukkanen Tommi, Internet vs mobile banking: comparing customer

value perceptions, business process managementbn journal Volume 13
ISSUE 6 PAGE 788 -797
http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=
A327CD64B3863134E19F57AC43F531CC?
contentType=Article&contentId=1637493

2) Kautonen Teemu et al (2007)Permission-based mobile marketing and

sources of trust in selected European markets VOLUME 9 ISSUE 2
PAGE NO.104-123
http://www.emeraldinsight.com/Insight/viewContentItem.do?
contentType=Article&contentId=1636502

3)Roach Gemma(2009)
Consumer perceptions of mobile phone marketing: a direct marketing
innovation, volume 2 issue 3 page no. 124-138
http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=
A327CD64B3863134E19F57AC43F531CC?
contentType=Article&contentId=1793781

4)Amin Hanudin (2008) Factors affecting the intentions of customers in

Malaysia to use mobile phone credit cards Research management News ,
volume 31 issue 7 page no. 493-503
http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=
A327CD64B3863134E19F57AC43F531CC?
contentType=Article&contentId=1729166

5) Loforet Sylvie (2005) consumers` attitude towards online and

mobile banking in China, International Journal of Bank Marketing
,volume 23 no. 5 page no 362-380
 QUESTIONNAIRE

OBJECTIVE

1) To study the consumer perception towards mobile

marketing

2) To analyse the growth of particular sector(banking) by

mobile marketing

We are doing a brief survey in jalandher and ludhiana to find out the more about
the customer perception towards mobile marketing. We would be grateful to if you
could spare few minute to participate it thank you for your cooperation.
Name:-…………………………………………………………..
Address:-………………………………………………………..

1) What is your gender

Male female

2) What is your age group

20 – 30 30 – 40 40 – 50

3) What is your occupation

Student professional self-employed home maker

4) Are you aware about mobile marketing

Yes No

5) How often do you receive marketing SMS on your mobile phone

Frequently Once in a day once in a weak

6) Which type of message you often recive

Related to banking
related to outlet discount

related to NEWS

related to sports

7) Which factor among this attract you most towards mobile marketing

Easly available

Time efficient

Reliability

Other then specify

8) Rate the features of mobile marketing on following parameter- (1- highly satisfy, 2-
some what satisfy ,3- satisfed,4-some what dissatisfied 5-strongly dissatisfy)

1 2 3 4
Availability

Reliability

Time efficient

Quality marketing

9) Your attitude towards banks offering message

Read carefully

Read carefully

Ignore the message

10) Is messages of mobile marketing reliable

Strongly agree

Somewhat agree

Agree

Somewhat disagree

Strongly disagree

11) Give your opinion towards mobile marketing

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