BOLD PaperMaker UOP Quantitative template 1. Web view Purpose of the Study 6. Significance of the Study 7. Significance of the study to leadership 8. Nature of the Study 8. Research

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THE DETERMINANTS OF BEHAVIORAL INTENTION TO USE MOBILE COUPONS IN A CASUAL DINING RESTAURANT ENVIRONMENT

by

Edward M. Jennings

A Dissertation Presented in Partial Fulfillment

of the Requirements for the Degree

DOCTOR OF BUSINESS ADMINISTRATION

University of Phoenix

June 2012

© 2012 by EDWARD M. JENNINGS ALL RIGHTS RESERVED

THE DETERMINANTS OF BEHAVIORAL INTENTION TO USE MOBILE COUPONS IN A CASUAL DINING RESTAURANT ENVIRONMENT

by

Edward M. Jennings

June 2012

Approved:

James Sullivan, Ph.D., Mentor

Kenneth Cromer, Ph.D., Committee

Connie Greiner, Ed.D., Committee

Accepted and Signed:                                                                                                            

James Sullivan

Date   

Accepted and Signed:                                                                                                            

Kenneth Cromer

Date   

Accepted and Signed:                                                                                                            

Connie Greiner

Date   

                                                                                                          ​ _______________

Jeremy Moreland, Ph.D.

Date   

Dean, School of Advanced Studies

University of Phoenix

Abstract

Dedication

Acknowledgments

Table of Contents

ixList of Figures

1Chapter 1: Introduction

2Background of the Problem

5Statement of the Problem

6Purpose of the Study

7Significance of the Study

8Significance of the study to leadership

8Nature of the Study

10Research Questions

13Theoretical Framework

18Definition of Terms

20Assumptions

21Scope

22Limitations

23Delimitations

23Summary

26Chapter 2: Review of the Literature

26Documentation

27Credibility and Availability of Census Data

28Industry Classifications

29Full-service Restaurant Categories

30Restaurant Promotion Strategies

32Customer Satisfaction in Full-service Restaurants

33Full-Service Dining Customers

34Technology Savvy Customers

35Cellular Phone Age Demographics

37Cellular Phone Varieties

38Mobile Device Feature Usage

42Text Messaging, M-Commerce, and Intention

43Consumer Concerns

45Restaurant Experiments with Mobile Coupons

46Coupons

49Coupon Value

51Mobile Coupons

53Technology Acceptance Theories

63Performance Expectancy

65Opting In

68Fear of Spam

71Conclusions

73Foundation for Research Hypotheses

76Summary

77Chapter 3: Method

78Research Method and Design Appropriateness

81Research Questions

82Hypotheses

83Sample Size and Power Analysis

84Population

85Sampling Frame

86Geographic Location

87Informed Consent

88Confidentiality

88Data Collection

89Instrumentation

96Validity and Reliability

97Data Analysis

100Summary

102References

120Appendix A: Survey Instrument

128Appendix B: Informed Consent Form

List of Figures

54Figure 1. Theory of reasoned action.

56Figure 2. Theory of planned behavior.

57Figure 3. Technology acceptance model.

62Figure 4. Unified theory of acceptance and use technology.

79Figure 5. Proposed study of the behavioral intention to use mobile coupons.

Chapter 1: Introduction

The focus of the proposed dissertation will be on understanding the ability of mobile marketing to drive young adults’ behavioral intention to use mobile coupons in a casual dining restaurant environment. Officials from the CTIA, The Wireless Association, reported 93% (292 million) of the United States population are mobile phone subscribers (Martin, 2010). A total of 24.5% of the United States households include people who have abandoned landline phones in favor of wireless phones.

The saturation of mobile phones in the United States represents a large opportunity for mobile marketing and a unique opportunity for one-on-one consumer communication. The ability to receive Short Message Service (SMS) (i.e., text) messages can be a means to communicate to consumers relevant and timely promotions when combined with opt-in permission-based marketing. In the United States, people send 153 billion text messages each month; that number amounts to 1.56 trillion text messages each year (Martin, 2010).

Jung and Lee (2010) noted that in 2008, 317 billion coupons were distributed in the United States, and less than 1% (2.6 billion coupons) were redeemed. Marketers use coupons to increase sales to existing customers and encourage new customers to purchase products and services. To date, little research has been conducted in the area of the behavioral intention to use mobile coupons for casual dining restaurants. The basis for the proposed study includes (a) the saturation of mobile phones, (b) the ability of mobile coupon delivery, and (c) the desire of casual dining restaurant owners to generate profits. The goal for the proposed study is to determine young adults’ behavioral intention to use mobile coupons at casual dining restaurants.

Background of the Problem

Feldman (2000) noted worldwide telecommunication carriers have collectively spent in excess of $100 billion on licenses to broadcast high speed voice and data. The anticipation that consumers will utilize data services and make purchases drives carriers to continue development of higher speed networks known as third generation (3G) and fourth generation (4G) networks. Mobile commerce (M-commerce) marketing includes ubiquitous devices, online access, location sensitivity, and authorization by mobile consumers to make purchases. In many cases, people own phones with personal digital assistant (PDA) features, making the phone increasingly important in everyday mobile life (Sultan & Rohm, 2005).

Mobile marketing.

The ubiquitous nature of cell phones allows consumers to be connected any time, making phones a convenient marketing channel when consumers desire immediate information to make a purchasing decision. Personalization through the use of ringtones, carrying cases, background pictures, software, phone numbers, and services makes cell phones unique to each consumer. The addition of smart phone data services enables consumers to acquire information when mobile. In addition to traditional segmentation variables such as age, gender, income, and ethnicity, the use of mobile phones might be better understood based on (a) the acceptance of technology, (b) the use of technology, and (c) the lifestyle motivations of individuals (Sultan & Rohm, 2005).

Marketers view mobile marketing as a way to (a) shape consumer attitude and awareness of a brand, (b) increase brand involvement through consumer downloads of desired content, and (c) influence the consumer to purchase a specific brand (Sultan & Rohm, 2005). The goal of mobile marketing is to interact with individual consumers in a manner that adds value to the customer-brand relationship without creating the perception of being intrusive. A key question for marketers is whether customers would be willing to accept marketing messages on their cell phones.

Rettie, Grandcolas, and Deakins (2005) conducted 26 studies of SMS text messaging campaigns over a 3-month period. Overall, 44% of the participants found mobile marketing through SMS text messaging to be acceptable and less intrusive than telemarketing. A total of 85.7% of the participants who received the SMS text advertisements expressed they had a positive image of the brand and were likely to purchase the brand. All participants had opted-in to receive SMS advertisements and considered the most successful promotions to include a better promotional offer, explicit messaging, added value, or more interaction.

Setijono and Dahlgaard (2007) described customer added value as low price, fast response, and high quality. The implications of customer value might include different modes defined as received value, perceived value, or added value. Received value is the customer experience defined through acquisition and use of the product. Perceived value is a tradeoff of benefits based on the available offerings, while added value is a benefit beyond other available offerings. The customer will ultimately determine value. One of the most common purchases by consumers is food.

Restaurant promotion.

Herrington (2004) observed people in the average United States household spend more on dining out than on clothing or health care. The United States Bureau of Labor and Statistics (2011) stated that 41% of the United States household food budget was spent on prepared meals outside the home. To gain a competitive advantage, retain existing customers, and attract new customers, restaurants rely on market