Middlesex University Business School London MA Marketing Management January 2010 Intake.

MKT 4003 RESEARCH IN MARKETING

Module Leader: Dr Simon Manyiwa Academic Group: Marketing Name: Manzil Madhwani (M00291693) Assessment: Individual Coursework, Research Proposal Date: 9 April 2010

Manzil Madhwani CONTENTS EXECUTIVE SUMMARY LITERATURE REVIEW RESEARCH PROBLEM STUDY AIMS AND OBJECTIVES IMPORTANCE OF THE STUDY RESEARCH METHODOLOGY FUTURE RESEARCH LIMITATIONS APPENDIX REFERENCES

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Mobile Marketing - Consumers Attitude towards Permission based and Push Pull SMS Marketing. Consumers perception of brand promotions via. mobile coupons. KEYWORDS: Attitudes, Mobile Marketing, Push - Pull, Consumer Behaviour, Brand Promotions, m-coupons. 1. EXECUTIVE SUMMARY This research aims at determining the consumers brand image perception of brands promoting via offers made on mobile marketing with the help of their attitudes towards permission based and push pull SMS marketing. In the broad context setting of mobile marketing, already a lot of research has been done on the effectiveness of mobile marketing, successful strategies in mobile marketing, consumers acceptance to the use of SMS as a marketing communication tool. Also further researches are also made on the personalization and interaction developed through permission based mobile marketing and also effectiveness of push-pull models of mobile marketing. Within this scenario where mobile phones are the highest number of communication tools, we will consider only SMS Marketing as a focus area as it is a technology adapted by wide demography of global population. Use of qualitative research will be made for collection of basic data of the concerned area. The results of this study will be very useful to brands which already engage with the consumers by means mobile and SMS marketing techniques and also to the brands which are looking forward to do so. The effectiveness of balanced push pull model in generating consumers positive attitude towards SMS marketing and within this balanced communication the consumers perspective of brand image of brands promoting through the mobile offers and mCoupons will be very useful to mobile marketers. There is existing research on brand image perception of consumers towards brands promoting through discounts and offers but to exploit it in the mobile SMS marketing context is the aim of this research. Understanding the consumers perception of brand

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image will be helpful in determining the behaviour of consumer towards the brand and the buying intention generated through mCoupons.

2. LITERATURE REVIEW Background: Mobile marketing significantly involves technology and is itself a very wide topic and a market concept and care should be taken for not confusing a technology with a concept. We will have a look at some literature for how it has been conceptualized till now. According to the marketing research of Leppniemi et al. (2006), it can be observed that marketing communications in mobile media can be inferred of consisting mobile marketing, mobile advertising, wireless marketing, and wireless advertising. It should be observed that mobile marketing is not just communication though a new channel of mobile device users. The formal definition of mobile marketing can be best taken from Mobile Marketing Association (2008, p22) as the use of wireless media as an integrated content delivery and direct-response vehicle within a cross-media marketing communications program. From literature of Bauer et al. (2005) we can have a look at inherent features of mobile marketing like personalization, ubiquity, interactivity and localization and it is ideal for dialogue oriented and individualized communication which makes it a superior marketing communication. From the consumers perspective this media of mobile services is new and their attitude towards the use of mobile devices for marketing determine the extent to which the marketing industry employs mobile marketing. Further, the determination of consumers positive or negative brand image perception can imply repetitive purchase intention and sustaining the consumer over longer periods for certain products like movie ticket mCoupons by a cinema chain.

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Consumers initial attitude towards mobile marketing and perceptions of mobile marketing: If we look from the consumers perspective, the technology of mobile multimedia services is relatively new and their attitude towards the use of mobile devices for marketing determine the extent to which the marketing industry promotes through that channel. We will have a look at the Technology Adaption Model for Multimedia Mobile Service proposed by Pagani (2004). It can be inferred that the levels of perceived usefulness, knowledge, perceived innovation and interactivity drives the people towards adopting a technology. In case of mobile communication technology because of increasing knowledge, usefulness and high interactivity the rate of growth of people adapting to use of mobile multimedia devices was very rapid. This rapid growth indicated the marketers to communicate via the mobile media and soon laid out strategies that are applicable in marketing through the mobile media. According to Heinonen & Strandvik (2002) (cited in Wang and Akar, 2006a), receiving of commercial text messages is in general found to be undesirable and might generate negative attitudes toward advertisers. In a study that measures consumers attitudes towards mobile advertising it was concluded that receiving commercial texts was perceived as disturbing and negative by consumers. (1Tsang et al. 2004). Amongst the various mediums available to communicate to a consumers cell phone, Short Messaging Service came out to be the most irritating medium in an empirical study of Heionoen and Strandwik in 2002 (cited in Wang and Akar, 2006b) SMS Popularity, Specifically Universal: There are 4.1 billion mobile subscribers globally (Mocom2020 team, 2009). The total mobile ad spend of world in 2009 is estimated to be $ 7.3 billion (eMarketer, 2008a). The total estimated text message ad spend will be 55 % of the total mobile ad spending in 2009 (Google Inc., 2009) which alone contributes amount of $ 6.4 billion mobile marketing spend in 2009. (e-Marketer, 2008b). There is a high diffusion of SMS facilities which helped analyse commercial

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potential of mobile communication services (Scharl, Dickinger and Murphy, 2004). The benefits of SMS marketing include reliability, ease, low cost, discrete, confidential and less time consuming (Michael and Salter, 2006a, p19). Cultural differences between countries can influence the mobile phone usage and provision of mobile marketing communications, but the desire for easy communication is specifically universal and SMS is one such example. (Michael and Salter, 2006a, p6). There were 1.4 billion mobile phone subscriptions worldwide who sent over 350 billion SMS per month and15 percent of them were classified as commercial. 54 percent of mobile phone owners use one or more mobile data services such as text messaging, Internet access, downloadable ring tones, and mobile gaming. Data from CITA (2006) (cited in Wang and Acar, 2006c). The less complexity and high compatibility of a communication technology within the mobile marketing media leads to adaption of a particular media (Gemma, 2009). Based on this, it can also be assumed that the SMS application is much easier to use than other mobile communication forms like MMS, Bluetooth, WAP, Wi-Fi to a wide demography as the other forms usage depends on person to person technology adaption. Permission based SMS Marketing and the new consumer attitude towards SMS Marketing: If we move towards strategy from basics, referring to the Strategic Marketing Marketing Model by Ranchhod (2007), the communications are getting permission based and start by the consumers desire to communicate and this permission needs to be sensibly and successfully managed. Interestingly commercial-related text messages when received on users permissions, based on the values of entertainment, information, and credibility of messages, the attitude created toward the advertiser was positive, (Tsang et al., 2004b). So favourably, commercial-related text messages can be considered as good as messages carried by traditional media by consumers if the messages were delivered by their reliable and permitted sources. Mobile advertising that

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has a high satisfaction rate can help improve brand attitudes and increase brand awareness when it is permitted by consumers, as suggested by Barwise and Strong (2002a). So it can be judged that if there is a prior permission the incoming messages are welcomed by the consumers and they also might respond to such advertisement messages. In the early findings about permission based SMS Marketing study conducted by Barwise and Strong (2002b) implied for a campaign. The findings are that consumers will certainly respond to attention grabbing SMS adverts, the relevance of adverts is necessary and spamming the consumers is dangerous as they might get irritated. Push Pull balance in SMS marketing and consumers new attitude towards mobile marketing. There were initial juggles between push type message communication in which there was virtual monologue and pull type services where consumers have to send some charged text message to know about certain products or services. On one hand there were issues of danger of spamming the consumers and in other the information was only provided by the telecom service provider which was charged and was thought of having biases towards the featured brands. In a research of Pachoulakis (2006), the ubiquitous nature of mobile devices allows direct marketers to reach consumers anyplace and anytime, with use of SMS. As legislative efforts try to abate the aggressive nature of such push-based advertising, pull-based methods which let customers be in charge are gaining support. New technologies can be employed to solicit a balanced mix of pushbased and pull-based advertising for the common benefit of both marketers and customers. The simplicity, personalization and versatility can result from sustainable interactions between users and their device collections, in order to serve certain user tasks. Looking at the findings of consumers perceptions on SMS marketing for permission based mobile marketing activities and looking at balanced push pull system as even more consumer driven, we can generalise that it is can very effective as a pull from the consumer certifies that the

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communication is initiated by the consumers own need and so there are greater chances for this to work. Consumers attitudes towards a brand promoting through discounts and coupons: Irrespective of the media, promotional activities of brand target several consumer characteristics to stimulate purchase intent and consumers have a certain attitude towards the promotional activities. Promotional activities lead to a consumers involvement with a brand and can also increase frequency of exposure and also facilitate a brand recall. Bonus pack offering (extra goods for the same price) is a kind of promotional activity and has similar implications to discounts and coupons in many ways. We will have a look at the findings of earlier research by Grewal et al.(1991) to have a look at the consumers general perspectives on discount. The findings suggest that higher the discount higher the value perceptions, higher the purchase intention, lower the buyer quality requirements and lower the internal reference price with some moderating exceptions. We need to consider that the credibility is the issue with all sorts of promotional activities. While promoting a brand very aggressively it must be kept in mind that too much of discount offered can lead to loosing the credibility of offer and has a negative impression on the brand (Ong, 1997) The coupons provide a consumer brand interface and based upon the coupons the consumers can develop a brand image. Coupons and consume brand perception have some findings like consumers think that a better brand is higher priced until they compare with other brands products. Expectations will be highest when a higher brand offers a higher coupon. (Raghubir, 1996) Focusing on the attitudes towards unsolicited text messages, very few academic studies have investigated consumers perceptions toward mobile promotions via mobile couponing and the perceptions of brand promotion through mobile couponing.

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3. RESEARCH PROBLEM The above reviewed literature suggests that in the context setting of mobile marketing, and sub context setting of SMS marketing, there is a level of acceptability of consumers and there is a different attitude generated than traditional media marketing. The consumers attitude before the marketing practice of permission based and balanced push pull mobile marketing model was very different. There are old theories which explore in great details the consumers perceptions of brand promotions. The specific promotional tool mobile couponing is the merger of classical couponing and mobile communications. It has been part of mobile and locationbased service visions ever since the advent of the m-commerce discussion (Wehmeyer and Mller-Lankenau, 2005). Now the brands are being promoted using the mobile coupons. There exists a gap of how in the mobile marketing space the consumers behave to the brand promotions, specifically promotion through issuing of mobile coupons.

4. STUDY AIMS AND OBJECTIVES The aim of this study is to highlight the difference in consumers previous attitude towards mobile marketing and the attitude after permission based and balanced push pull model are in place and using them to determine the consumers perceptions of brand promotions done by issuing mobile coupons. The study will focus on the following four objectives: 1. Exploitation of differences in previous and present attitudes of consumers towards SMS marketing. 2. Consumers general attitude towards brand promotions. 3. Using findings of 1. and 2., exploring the relation between the consumers attitude towards SMS marketing and the perception of mobile brand promotions.

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4. Understanding consumers exact attitude towards brand promotion using SMS mobile coupons. 5. IMPORTANCE OF THE STUDY There is already an understanding in the marketing industry for developing the existing theories in relation with the technical advances and further with the acceptance of the technologies within the consumers. As a number, mobile phone users is higher than any other communication device users, the inherent features of the technology are to be considered into the marketing environment. The consumer behaviour needs to be explored for mobile marketing in the same as it was being explored during internet marketing boom. This form of coupon delivery has a potential to become the most dominant in coming times. Knowing how the consumers see this form of promotion now, will help in determining the future of mobile couponing. Other forms of mobile couponing with use of GPS and mobile web can also be considered for the niche markets. 6. RESEARCH METHODOLOGY Research Approach and Philosophy: Based on the aims and objectives of this study the research approach will be interpretive epistemology (Kent, 2007a). Research Design Sampling and exploratory research design will be applied in this research. In most exploratory research projects, primary data is gathered through qualitative data collection practices (Hair et al., 2006a). Qualitative research will be undertaken using an unstructured research approach with a small number of carefully selected individuals (Chain cinema visitors coming with a popular movie mobile coupon in this case) to produce insights into attitudes, motivations, and behaviour (Hair et al., 2006b).

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Manzil Madhwani Data Collection:

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Data collection instrument will be a focus group. In deciding who should be included as participants in a focus group, the researcher will give strong consideration to the purpose of the study and research objectives. Factors in the selection process are the group dynamics and the willingness of members to engage in dialogue (Hair et al., 2006c). The researcher will contact people visiting several branches of a chain cinema in London. They will be informed the purpose of study and its usefulness. If they are willing to participate then only they will be selected for the research interview. The focus group will consist of 30 people from various age groups, Attempt will be made to include people of both sexes equally and also to include people from various social grades. The data collected will be from three different branches of the chain cinema to avoid the localized behaviour from affecting the research data quality. The participants will be offered a small amount voucher coupon of a chain superstore as a gift. Each of the 10 groups of 3 people will be formed in such a way that none of the four members have come together for the show and not all the members will have viewed the show via a mobile coupon. Each group will be interviewed in detail about the research topic, the moderator will make field notes and draw out as many ideas, attitudes, and experiences as possible about the specified issue (Hair et al., 2006d). Research Method Primary data will be collected through qualitative research. There will be a focus group and the individuals will not be interviewed one at a time. In this case of this research, the participants will require a detailed short discussion but they will not need to provide a direct opinion, rather it will be observed. Qualitative research has been seen as a preliminary to a larger scale quantitative study and in this sense is being used for exploratory purposes, usually in areas where little research has been done.(Kent, 2007) The results of the quantitative research could be then applied to the larger population.

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Manzil Madhwani Data Analysis

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The results will be analysed using analysis of field notes of the detailed short interaction and the opinions of the respondents will be extracted, which will automatically create quantitative data from qualitative data (Kent, 2007). 7. FUTURE RESEARCH Future research can be in the acceptance and preferences of consumers in mobile couponing with demographic and geographic factors in consideration. Separate microanalysis for each or any sector can also be done. Use of mobile couponing with other than SMS communication variables of mobile phone and location based mobile couponing. The consumers response to location based mobile couponing and its usefulness during retail shopping can be researched. 8. LIMITATIONS Qualitative analysis may or may not be sufficient enough to provide data that can represent large groups. The reason is small number of people being interviewed, in this case just 30. Moreover this research will be carried out in London. Our research is not involving any geographic barriers but the response obtained might be having some influence of local factors and would it have been carried out somewhere else the results might have been different. Also the industry segment selected which is being promoted is also sampled for promotion of all products and segments. The responses might vary segment to segment also. The design of the research is descriptive and as it is exploratory study, it can future research guidelines.

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Manzil Madhwani 9. APPENDIX Figure 1. Strategic Mobile Marketing Model.

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Source: Ranchhod, A. (2007). Developing Mobile Marketing Strategies. International Journal of Mobile Marketing. Volume 2 (1), p76-83.

Figure 2. Mobile Advertising Spending, 2009 (est).

Source: Facts about Google's acquisition of AdMob. (online).(Nov 9th , 2009). Calif, USA: Google Inc.. Available on: http://www.google.com/press/admob/comp.html (4th April, 2010)

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Manzil Madhwani Figure 3. Mobile Advertising Spending, 2009 (est).

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Source: Gauntt. J (2008). Mobile Advertising: After the Growing Pains. (online). (Mar, 2008), p1. USA: eMarketer. Available on: http://www.emarketer.com/Reports/All/Emarketer_2000452.aspx (4th April, 2010).

Figure 4. Services.

Technology Adaption Model for adaption of Mobile Multimedia

Source: Pagani, M. (2004) JOURNAL OF INTERACTIVE MARKETING, VOLUME18(3), p46-59.

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Manzil Madhwani 10. REFERENCES

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Barwise, P. & C. Strong (2002). Permission-based mobile advertising. Journal of Interactive Marketing. Volume 16 (1), p14-24. Bauer H. (2005). Driving Consumer Acceptance of Mobile Marketing Journal of Electronic Commerce Research, Volume 6(3), p181. eIntegration in action: 18th Bled eConference (2005). Mobile Couponing.
Wehmeyer,K. and Mller-Lankenau, C. Bled, Germany. ERCIS.

Gemma, R. (2009). Consumer perceptions of mobile phone marketing. Direct Marketing: An International Journal. Volume 3 (2), p124-138. Hair, J., Bush, R. and Ortinau, D. (2006). Marketing research within a changing environment.(Edition 3). New York: McGraw-Hill/Irwin. Kent, R. (2007). Marketing Research: Approaches, Methods and Applications in Europe. London: Thomson Learning. Leppniemi M, Karjaluoto H and J Sinisalo. (2006) A Review of Mobile Marketing Research, International Journal of Mobile Marketing. Volume.1(1), p 30-40. Michael, A. and Salter, B. (2006). Mobile marketing: achieving competitive advantage through wireless technology. (Edition 1). Oxford, UK : Elsevier Ltd. MMA (2008)Glossary. (online). Denver, US : Mobile Marketing Association . Available from: http://mmaglobal.com/uploads/glossary.pdf (4, April 2010) Mocom2020 Team(2009). 4.1 billion mobile subscribers worldwide. (online). Germany : Ahead of Time Gmbh. Available from: http://www.mocom2020.com/2009/03/41-billion-mobile-phone-subscribersworldwide/ (27, March 2010)

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Ong.B et al. (1997) Consumer perceptions of bonus packs: an exploratory analysis. Journal of Consumer Marketing. Volume14 (2), p102-112. Ranchhod, A. (2007). Developing Mobile Marketing Strategies. International Journal of Mobile Marketing. Volume 2(1), p76-83. Schalr A. et al. (2005). Diffusion and success factors of mobile marketing. Electronic Commerce Research and Applications. Volume 4, p159173. Tsang, M. L., S. C. Ho, & T. P. Liang (2004). Consumer attitudes toward mobile advertising: An empirical study. International Journal of Electronic Commerce, Volume 8(3), 65-79. Wang, A. and Acar, S. (2006). Information search and mobile promotions. International Journal of Mobile Marketing. Volume 1 (2), p81-87.

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