Faculty of Business and Law Final Year Project CHAPTER 1: INTRODUCTION 1.1. Overview Nowadays mobile phone plays the key role in communication in many countries including Malaysia. The rapid growth of the Malaysia Mobile industry has largely been due to the development of a simple and highly popular mode of mobile communication. The SMS (Short Messaging System) Statistics from Communication & Multimedia Malaysia had indicated that over 3,406 million SMS have been sent in the first period of year 2005. It seems like the fifth factor that everyone has to have it. Besides the convenience of usage in anywhere or at any time, the user can also listen to music, play games or surf the internet. Another increasingly popular function is the message services in forms of short message service (SMS) and multi-media service (MMS). Technology developments have created new marketing communication channels or media such as email, SMS (Short Messaging Service) and MMS (Multimedia Messaging Service). These digital media are considered to potentially improve the possibilities to reach consumers by allowing personalization of the content and context of the message (Forrester Report 2001). Simultaneously there is a potential downside to the development of new digital channels. In a Forrester report companies using SMS expressed fear for 1
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Faculty of Business and Law Final Year Project
CHAPTER 1: INTRODUCTION
1.1. Overview
Nowadays mobile phone plays the key role in communication in many countries
including Malaysia. The rapid growth of the Malaysia Mobile industry has largely been
due to the development of a simple and highly popular mode of mobile communication.
The SMS (Short Messaging System) Statistics from Communication & Multimedia
Malaysia had indicated that over 3,406 million SMS have been sent in the first period of
year 2005. It seems like the fifth factor that everyone has to have it. Besides the
convenience of usage in anywhere or at any time, the user can also listen to music, play
games or surf the internet. Another increasingly popular function is the message services
in forms of short message service (SMS) and multi-media service (MMS).
Technology developments have created new marketing communication channels
or media such as email, SMS (Short Messaging Service) and MMS (Multimedia
Messaging Service). These digital media are considered to potentially improve the
possibilities to reach consumers by allowing personalization of the content and context of
the message (Forrester Report 2001). Simultaneously there is a potential downside to the
development of new digital channels. In a Forrester report companies using SMS
expressed fear for invasion of consumer privacy (80%) and negative consumer reaction
(60%) as disadvantages of the media (Forrester Report 2001, p. 3). A crucial question is
thus whether there are obstacles for the marketer to use mobile media to its potential. Are
customers more reluctant to receive marketing information through mobile media than
through traditional media or is it the other way around?
Therefore, the purpose of this study is to investigate factors that influence
consumers’ response to SMS and MMS ads in Malaysia. The factors considered are
brand familiarity, relevant on advertisement, brand loyalty, trust and attitude toward SMS
and MMS.
1
Faculty of Business and Law Final Year Project
1.2. Research background
Cell phone has been one of the important devices for all human kind. It has a huge
impact to everyone’s life. This innovation creates marketing opportunities and
challenges. Through mobile, it enable transcend traditional communication and support
one-to one, many-to-many and mass communication. Phones and personal digital
assistants increase the availability, frequency and speed of communication. Yet the
technology associated with these devices, which let marketers personally communicate
with consumers, continues to evolve.
Technological innovations have enabled cell phone users to utilize them as more
than a communication device, attracting advertisers to provide finely targeted and time
sensitive information to their target audience. Mobile advertising is one of the most
unique developments in the mobile sphere since mobile messaging gained mass
consumer adoption and has emerged as one of the most important and effective
advertising media in the region.
Because of its popularity; marketers now discover a chance to advertise their
products via SMS/MMS. The marketers hope that this new method, also known as
wireless advertisement through SMS and MMS, will effectively and efficiently promote
their products or services. With the emergence of high speed wireless network
technologies and the increasing market penetration of mobile phones the global
advertising industry’s interest in using this medium as a means of marketing
communication is rising. However, in spite of the increasing number of companies
investing in mobile marketing campaigns, there is, as yet, little academic research on this
topic and the nature and implications of this channel are not yet understood fully.
Therefore, the main purpose of the paper is to explore consumers’ responsiveness
to mobile marketing communication compared to email as a marketing media. With
mobile marketing we refer to marketing communication where a consumer can be
reached anywhere anytime but specifically in this study to SMS and MMS. From the
marketer’s perspective it would be crucial to know which consumers are open and
responsive to such marketing communication. From an academic perspective the issue of
2
Faculty of Business and Law Final Year Project
responsiveness to a media is interesting in itself. It is assumed that the media influences
the effect of the marketing communication in addition to the marketing message. In this
study we are applying a traditional communication perspective in the sense that explore
responsiveness to marketer initiated (push) communication as a reaction to this activity.
Thus, in this study we do not imply interactivity within a customer relationship or
customer initiated (pull) communication.
In conclusion, understanding the factors that effects customer’s responsiveness is
very important to ensure that target market is carefully selected to make it more cost-
effective for retailers and large companies to retain their loyalty customers.
1.2.1 Industry background
The rapid growth of the Malaysia Mobile industry has largely been due to the
development of a simple and highly popular mode of mobile communication. The mobile
business has the potential to grow to one of the most important industries in the world.
Especially in Finland the potential is large owing to the fact that our country has been the
pioneer in this field from the beginning and the Finns are one of the most enthusiastic
mobile phone users. So far there has not been lot of research concerning consumer
behavior in mobile service context. The ones that are available concerns mainly
traditional or the kind services that exists in mobile phone as basic default, like SMS
(Grinter & Eldridge, 2001; Pedersen, 2002) and normal usage of mobile devices
(Rautianen & Kaseniemi, 2000). From a theoretical perspective, this research will
provide new information about consumer behavior in a rapidly growing mobile
commerce area. For marketers, an understanding of consumer behavior is increasingly
recognized as a key factor in success, and it can lead to a competitive advantage for those
who can use this information in their strategic and operational marketing (e.g. Peter and
Olson, 1990).
Phones and personal digital assistants increase the availability, frequency and
speed of communication. Yet the technology associated with these devices, which let
marketers personally communicate with consumers, continues to evolve. The most
3
Faculty of Business and Law Final Year Project
popular mobile application, referred to as text messaging or Short Message Service
(SMS). Studies on this new advertising medium indicate that mobile advertising
campaigns can generate responses that are as high as 40%, compared with a 3% response
rate through direct mail and 1% with internet banner ads (Jelassi & Enders 2004). The
high diffusion of SMS facilitates analyzing usage behavior and hints at the commercial
potential of future communication services. Multimedia Messaging Services (MMS), for
example, will build on the success of SMS but allow for richer content based on similar
asynchronous, digital and interactive communication. Studying interactive mobile
services such as SMS and MMS suggests drawing upon theories in marketing, consumer
behavior, psychology and adoption to investigate their organizational and personal use.
Mobile advertising, which is an area of mobile commerce, is a form of advertising
that targets users of handheld wireless devices such as mobile phones and Personal
Digital Assistants (PDAs). In Comparison with traditional advertising, the main
advantage of mobile advertising is that it can reach the target customers anywhere
anytime. In order to promote the selling of products or services, all the activities required
to communicate with the customers are transferred through mobile devices. Combining
with the customer’s user profile and context situation, advertising companies can provide
the target customers exactly the advertisement information they desire, not just “spam”
them with advertisements they are not interested in. The devices on which these value-
added services are pushed onto or downloaded to, operate in an environment that imposes
constrains such as: wireless network environments are unreliable and bandwidth is low,
and the very mobility of devices increases the risk that a connection will be lost or
degraded. More importantly, mobile services must work within the daunting constraints
of the devices themselves, which include: memory, processing power, input capabilities,
and size of display. It is therefore important that mobile advertisements take into account
the user’s context, optimize resource usage, and minimize input effort imposed on the
user. Mobile media, for example, transcend traditional communication and support one-to
one, many-to-many and mass communication.
When looking at marketing communication from a consumer perspective the issue
of media effectiveness is challenging. The increased number of media has led to a harder
4
Faculty of Business and Law Final Year Project
competition for consumers’ attention. Attention and time has increasingly become scarce
resources for the consumers in the information age. It has been argued that the
information age empowers consumers and creates immediate 24-hour access, which
changes consumers’ behavior (Seybold 2001). Many consumers have attitudes;
aspirations and purchasing patterns that are different compared to what companies have
been used to. Today's consumers are claimed to be independent, individualistic, involved
and informed, (Lewis and Bridger 2000) which makes it harder than ever to conduct
interruption-based communication. In traditional research concerning advertising and
media effects the consumer’s perspective has been largely overlooked.
Traditional marketing communication planning has focused on the marketer’s
objectives of reaching relevant consumers (Stewart & Pavlou 2002). An open question is,
however, what reaching means when considering the empowered and active consumer. In
permission marketing context it has been argued that if the consumers have agreed to pay
attention it would be easier to reach them about offerings (Godin 1999). A key issue is
the responsiveness of the consumer to marketing communication. Responsiveness depicts
the consumer’s willingness to receive and respond to marketing communication and can
be viewed as a function of the content and the context of the message. Any channel can
and should be evaluated according to consumer responsiveness in order to understand
communication effects and effectiveness. Consumer responsiveness is potentially more
effective than permission because it assumes consumer attention rather than merely
permission.
By knowing consumers’ adoption capability and attitudes it helps marketers to
understand ones consumers and the expectations they have. By developing services,
consumers will approve new technology and start to use it more easily. New strategies
have to be developed for changing perceptions and in that way confirm their mobile
service usage. As Matthing et al. (2004) state new service development relies on the
complex task of understanding and anticipating latent customer needs. It is presumable,
that findings of this will have significant implications and generate insights directly
applicable for manufacturers and marketers of consumer mobile services. A key task for
m-business is to find out who the actual and potential customers are (Turban et al.1999)
5
Faculty of Business and Law Final Year Project
and how to make them interest on mobile services. Also the services needed had to be of
developers concern. Consumer behavior towards mobile services has not yet been the
subject of much research (Anckar et al. 2002; Pedersen et al. 2002; Constantiou, 2003) in
Europe. Anckar (2002) pointed out that “the main reason value-adding elements in m-
commerce, the consumers’ actual reasons – the primary drivers for adopting m-commerce
remain unclear”.
1.3. Problem Statement
The marketers face escalating hurdles to attract and meet the customer’s need in
the current world of globalization. People are getting more intelligent with the help of
technology gadget nowadays. To attract customer’s awareness no longer linger only with
online advertising but also via SMS and MMS.
With technologically advanced mobile phone services in Asia, providing
customers with data services such as SMS, MMS, video and mobile internet, games,
downloads and mobile TV, mobile advertising take this advantage of the “third screen”
(alongside the TV and the PC) to reach out to customers. The rapid rise of mobile
advertising in the Asia-Pacific region is being fuelled by a surge in mobile phone
subscriptions. This high diffusion of SMS facilitates analyzing usage behavior and hints
at the commercial potential of future communication services. Multimedia Messaging
Services (MMS), for example, will build on the success of SMS but allow for richer
content based on similar asynchronous, digital and interactive communication.
The influence of repetition on communication effectiveness is an important issue
that has generated a considerable body of research. Consumer researchers, psychologists,
and marketers have attempted to understand the relationship between repetition and an
audience’s reception of a message. The leading theory is that there is a non monotonic
relationship between message repetition and message effectiveness (cf. Anand and
Sternthal 1990; Vakratsas and Ambler 1999). Message effectiveness is believed to
increase at low levels of repetition and then to decrease as message repetition increases
(cf. Berlyne 1970; Cacioppo and Petty 1979). There is strong evidence in support of such
a curvilinear relationship (cf. Anand and Sternthal 1990; Pechmann and Stewart 1989).
6
Faculty of Business and Law Final Year Project
There is also, however, substantial research that shows no relationship between ad
repetition and message effectiveness (Belch 1982; Rethans, Swasy, and Marks 1986) or
mixed effects in terms of the curvilinear relationship (Calder and Sternthal 1980;
Messmer 1979). A review of the literature on repetition effects suggests that there is no
simple answer to the question of how repetition affects message effectiveness. Several
researchers have called for and turned their attention to factors that moderate the
relationship between repetition and message effectiveness. For example, research has
identified several message factors that influence the effects of repetition, including
message complexity (Cox and Cox 1988), “grabber versus nongrabber” ads (Ray and
Sawyer 1971), and ease of processing of the message (Anand and Sternthal 1990). This
research proposes an important source factor as a moderator of repetition effects.
Specifically, propose that the familiarity of the brand sponsor of an ad will moderate the
way in which repetition influences consumer response to that ad. Additionally, this
research contributes to existing research by describing more completely the mechanism
by which a decrease in attitudes with an increase in repetition may occur. The following
problem statement spells out and concludes the background of the research problem.
Problem statement: An in mobile marketing: To what extent do brand familiarity
influence customers’ responses of mobile marketing in Malaysia?
The mobile advertising is another complementary marketing communications
instrument, much of the theorizing about why consumers accept or do not accept SMS
advertising is speculative. SMS location-based services are likely to become increasingly
valued as a marketing tool (Ververidis and Polyzos, 2002). Via the mobile channel, the
response can be nearly immediate, interactive and the consumer can be reached
everywhere at anytime because the service is typically ubiquitous (Jelassi and Enders,
2004). Dickinger et al.’s (2005) model of success factors for SMS marketing are divided
into two categories: the message and the media. Message factors include: message
content, Krishnamurthy (2001) found that the factors affecting consumer willingness to
give permission to receive advertisement were: message relevance (e.g. message fit and
advertiser attractiveness), and special offers; personalization according to time (i.e. time
of day and frequency of advertisements), location (including real-time location-specific
offers) and consumers’ preferences; and consumer control, permission and privacy,
which has been identified as the strongest negative influence on consumer attitudes 7
Faculty of Business and Law Final Year Project
toward SMS advertising. Media factors include issues regarding the device, transmission,
product fit (the media appears to better suit low budget items, young people and services
rather than goods), and media cost (which suggests that the medium is cheaper and more
effective than other alternatives). The following problem statement spells out and
concludes the background of the research problem. Problem statement: An in mobile
marketing: To what extent do relevant on advertisement influence customers’
responses of mobile marketing in Malaysia?
Moreover, Akaah et al. (1995) found that the factors that influence attitude toward
direct marketing most are the volume of advertisements and past direct experience.
Consumers’ attitude might vary individually. It is crucial to know consumer’s attitude
towards mobile marketing before proceed to their level of response. The problem
statement: An in mobile marketing: To what extend do attitude towards SMS
advertising influence customers’ responses of mobile marketing in Malaysia?
In marketing, building and maintaining brand loyalty has been a central theme of
marketing theory and practice in establishing sustainable competitive advantage. In
traditional consumer marketing, the advantages enjoyed by a brand with strong customer
loyalty include ability to maintain premium pricing, greater bargaining power with
channels of distribution, reduced selling costs, a strong barrier to potential new entries
into the product/service category, and synergistic advantages of brand extensions to
related product/service categories (Reichfeld, 1996). The opportunity for brands to reach
and influence consumers via mobile is significant. This research concede that the mobile
advertising industry is in its infancy and agree that there are obstacles that must be
overcome before it can become a mainstream advertising medium, but brands such as
Adidas, Microsoft and News Corp are increasing brand equity through mobile media
now; they are learning fast and potentially leapfrogging their competitors. This
opportunity must however be shaped through the development of a coherent mobile
marketing strategy that is fully integrated with brands primary marketing strategy and
clearly supports the businesses objectives. The following problem statement spells out
and concludes the background of the research problem. Problem statement: An in
mobile marketing: To what extent do brand loyalty influence customers’ responses
of mobile marketing in Malaysia?
8
Faculty of Business and Law Final Year Project
Ever since the rise of the SMS (short message service) in the early 2000s,
businesses have viewed it as an additional avenue in which to reach out to their
consumers, initiating the first forms of mobile advertising/marketing. Over the past few
years, there has been an exponential uptake of this marketing channel, partly due to the
current economic climate and the need to find ways in which to effectively reach brands’
target audiences at minimum cost in order to increase their ROI - a few benefits of the
mobile platform. With over 4 billon mobile users worldwide, the humble mobile phone
has over the years evolved from a means of communication to a multi-faceted device
which allows the user to manage a variety of tasks – from surfing the web to viewing rich
multimedia content. We are now moving into an era of smart phones and the Apple
iPhone, and application developers are working diligently to develop applications for
numerous platforms. But with the ever growing possibilities of connecting with the
consumer that the mobile device offers comes the key challenge of overcoming the threat
of breaches of consumer privacy that fraudsters, spammers and phishing attacks present.
Taking everything into consideration, building trust and faith amongst consumers is
central to building a relationship with the brand. The following problem statement spells
out and concludes the background of the research problem. Problem statement: An in
mobile marketing: To what extent do trust influence customers’ responses of mobile
marketing in Malaysia?
1.4. Research Objectives
After figuring out the problem statement of this research project, it is come to the
research objectives. Basically there are three objectives being break down from the
problem statement. The objectives are as the following:
1. To assess and determine the factors that would likely to influence level of
response of mobile marketing in Malaysia.
Explanation: The advent of cell phone, accompanied by the growth of related
technologies, has a significant impact on the lives of people around the globe. For
marketers, one of the most significant impacts has been the emergence mobile
advertising/ marketing through SMS and MMS. Due to these massive expose towards
cell phone, marketers take this opportunity to gain profit through m-marketing. Despites 9
Faculty of Business and Law Final Year Project
the potential of SMS and MMS as an advertising medium, user’s preference are very
crucial to promote an effective m-marketing. Therefore, in this paper will discover what
factors that influence consumers’ response of mobile marketing in Malaysia?
2. To determine the how demographics background impact customers' responses
towards mobile marketing.
Explanation: These facts compiles that strategies of message receivers are quite random
and convenience-based. Because of the relatively low cost to advertise via SMS and
MMS, companies now send their advertisements to the mass market without considering
the receivers’ personal details in term of consumer’s demographic background. As a
result, most people tend to be irritated and annoyed by these careless marketing tactics.
Some research believe that gender, females have more likely to respond SMS ads
(Trappey, Randolph J.; Woodside, Arch G., 2005), play the critical role of response to
SMS ads. With these statistics, marketers might want to revise again their receivers’
personal detail before sending random ads to consumers because the level of response is
perhaps different demographically.
3. To determine the how relevant on advertisements and attitude towards SMS
advertising impact customers' responses towards mobile marketing
Explanation: Another aspect that influences the consumer’s responsiveness to marketing
communication is the interest in and relevance of the marketing message. Li et al. (2002)
found that the intrusiveness of advertisements may be moderated by the utility that
consumers derive from the content. It may be difficult to create relevant marketing
communication content, as the relevance is most likely consumer specific. In other words
something that is relevant for one consumer is probably less relevant for another
consumer. For example, one consumer is interested in golf, another consumer is
interested in motor sports or gardening and a golf brochure probably draws the attention
of the golf enthusiast and leaves the motor sport enthusiast indifferent. Tsang et al. (2004)
found that respondents had a negative attitude toward receiving SMS ads without
permission, since they regarded that as an irritating behavior. However, respondents
10
Faculty of Business and Law Final Year Project
claimed that their behavior would be positive if the ads were sent by permission.
Therefore, different consumer has different attitude and preferences.
4. To determine the how brand familiarity impact customers' responses towards
mobile marketing
Explanation: Responsiveness conceptualization closely relates to the attentiveness level
but carries over to the communication and persuasion levels in the sense that we assume
that they are closely related. Also make the assumption that there are differences in
responsiveness among consumers concerning different media as well as concerning
different products. The responsiveness may be higher for some media for some
consumers because they are more familiar with the media and it suits their purposes. In
this respect also certain products or offerings may receive higher responsiveness than
other.
5. To determine the how brand loyalty impact customers' responses towards mobile
marketing.
Explanation: Brand loyalty is another important element in this research. On a
worldwide basis, familiarity with and demand for mobile content services are high.
Consumers are increasingly sophisticated and demanding. They are highly sophisticated
and familiar with converging services such as web surfing, instant messaging and
interactive gaming. Although consumers found SMS-based advertising intrusive and
irritating (Sugai 2005), they are willing to access and willing to pay for information that
is compelling and that have high level of contextual sensitivity (Mort and Drennan 2002).
However it is essential to give users total control over what they receive because
consumers’ demand for highly personalized messages has to be reconciled with their
desire for privacy (Sadeh, 2002).
11
Faculty of Business and Law Final Year Project
6. To determine the how trust impact customers' responses towards mobile
marketing.
Explanation: Despites mobile marketing gain more popularity nowadays, most of the
people still have the negative attitude toward SMS ads (Fatim Bamba, Stuart J. Barnes
2007).
1.5. Justification and Contribution of Research
Things are done because they bring benefits or contributions to individual, family,
organization, society, country and even global. Same goes to this research paper. Mobile
marketing phenomena are governed by a number of consumer acceptance and behavior
characteristics and grounded in theoretical aspects of consumer decision making. There
are a number of factors that effect what we buy, when we buy, and why we buy. In
reference to mobile marketing, the factors that influence consumers are demographically
(i.e., age, gender, education, and occupation), brand familiarity, relevant on
advertisement, attitude towards SMS and MMS, brand loyalty and trust. The need to
identify these factors influencing customer’s level of responsiveness towards mobile
marketing is very crucial. By identifying the factor to maintain the current customer,
marketers, will be able to sustain in addition of reducing cost in attracting new customers.
Mobile phone has become essential part of personal and business life crosses all
age and gender boundaries. The of mobile phone usage can potentially play a significant
role in assisting older people in many ways especially in terms of maintaining social
relationship, providing sense of safety and accessibility. However, Elderly people seem to
have a neglected user group in design of mobile devices and services, although the
requirements to create well functioning solution for them are very well known. People
over the age of 60 use mobile phones for very limited purposes, such as for calling or
SMS in emergency situations. The use of Short Messaging Service to access customers
through their handheld devices is gaining popularity, making the mobile phone the
ultimate medium for on- to-one marketing. Most complaint is related to displays that are
too are too small and difficult to see, buttons and characters causing them to push wrong
12
Faculty of Business and Law Final Year Project
numbers frequently. They also avoid using more complex function, non user-friendly
menu arrangement and unclear instruction on how to find and use a certain function and
services that are too expensive. Ease of use and actual need of the services are important
criteria. The elderly are ready to begin using the services as long as they truly facilitate
independent living.
Studying interactive mobile services such as SMS and MMS suggests drawing
upon theories in marketing, consumer behavior, psychology and adoption to investigate
their organizational and personal use. But research on mobile marketing via SMS is
scarce. Obtain fine-tuned insight into mobile users and their preferences, not just user
demographics. More detailed customer preference information will enable better tailoring
of advertising packages and customer services. Provide relevant and timely
advertisements, using location, customer identity and preferences to ensure relevant
advertising sent to customers is appreciated. For example, a coffee coupon for Starbucks
in Japan sent five weeks after an Australian tourist has returned home is of no value.
When offering design tools and services for mobile advertising, bear in mind that retailers
are looking for simple yet effective solutions for creating ads to reach out to their
customers.
In general, advertising on mobile devices has great potential due to the very
personal nature of the devices and fine-tuned targeting possibilities. Mobile advertising
provides retailers with a complete and cost-effective channel through which to build
customer relationships and drive sales. Retailers can “mobilize” and build upon existing
customer acquisition and retention programs through a variety of mobile mechanics such
as mobile alerts to update customers of sales, new products and deliveries or extended
hours and “mobile coupons” to attract customers with deals. The Asia-Pacific region is
expected to account for 47.9% of global mobile phone subscribers by 2011. According to
figures released by Strategy Analytics, nearly 1 in 3 mobile subscribers will use a mobile
broadband connection by 2012. The nature of the mobile phone makes it a powerful
advertising medium as it is always there and always on.
13
Faculty of Business and Law Final Year Project
1.6. Definition of Important Terms
This section will provide readers with definition of important or frequent used
terms. This is to ease and increase the understanding of readers towards the whole
research paper. The progress of this section will follow a sequence in which it will list
down the definitions of terms for one variable to another in point form, hoping that
readers will not feel confuse.
1. Demographic (i.e., age, gender, education, and occupation)
Demographics or demographic data are the characteristics of a population as used in
government, marketing or opinion research, or the demographic profiles used in such
research. Socioeconomic groups, characterized by age, income, sex, education,
occupation, etc., that comprise a market niche. Example:
2. Responses
Response refers to consumers’ reaction to the SMS or MMS ads sent. It means that
consumers make an action such as either opening the message up and read the content of
the message or sent another SMS to confirm your participation, not just ignore and leave
it when it sent to
3. Brand familiarity
A brand is the intangible sum of an organization’s attributes, which can reflect an
organization’s name, history, reputation, and advertisement. A brand can be recognized
as the identifiable symbol, sign, name, or mark that distinguishes an organization or a
product from its competitors. Brand awareness or brand familiarity refers to customers'
ability to recall and recognize the brand under different conditions and link to the brand
name, logo, jingles and so on to certain associations in memory. It helps the customers to
understand to which product or service category the particular brand belongs to and what
products and services are sold under the brand name. It also ensures that customers know
came throughout real survey and information. Deeper understanding about data analysis
will be discussed later in this paper.
3.7.1 Descriptive Analysis
First of all descriptive analysis will be used to analyze the data obtained (Burns
and Bush, 2003). As the outcome of the analysis will get a mean, frequency, standard
deviation and percentage of frequency, this analysis method is applied onto both section
of the questionnaire. It is used to describe the question responses in a data matrix (all
respondents’ answers). For instance, it identifies variable that has the highest mean or
standard deviation. Descriptive measures are used at the early stage of analysis processes
because it will form the foundation for subsequent analysis. Each figure obtain will be
explained and justified after completing the descriptive analysis. Moreover, independent
sample t-test will also be used to test and compare the means or percentage of two
different groups or samples.
For the case of demographic, some research believe that age, mobile phone users
16 to 45 years old are receptive to experience SMS marketing (Pastore 2002), and gender,
females have more likely to respond SMS ads (Trappey, 2005), play the critical role of
response to SMS ads. In addition, there are 6 external factors; simplicity of input method
or input language, economic development which substitute for less developed
information structure, cultural difference, marketing competition which substitute for
pricier voice service in a noncompetitive market, business model which enhance
information richness and benefit from positive feedback in value web, and political
censorship (Xu Yan, 2006). However, most of the people still have the negative attitude
toward SMS ads (Stuart J. Barnes 2007). Besides advertisings, SMS can be the powerful
tool for do a survey because it collects information quickly, as the average speed of
response (3.3 days) is better than for other survey modes (Heinonen-Mavrovouniotis,
2007).
Education and occupation also play major roles in determining level of response
towards m-marketing. The higher the level of education, the more knowledge they have
about the innovation of mobile communication and the usage of mobile phone. The 51
Faculty of Business and Law Final Year Project
occupation which involve high technology or work with technology may be likely to
respond SMS ads because they have knowledge about technology and know how to use
the technology, SMS ads, to get more benefit.
A central psychological determinant of consumer behavior is an individual’s
knowledge. Existing knowledge affects the cognitive processes related to a consumer’s
decisions and is thus also an important determinant of the acceptance decision. A
consumer’s existing knowledge determines his ability to understand the features and
usage of an innovation. Existing knowledge thus affects the consumer’s perception of the
innovation’s complexity [Moreau et al. 2001, p. 15]. The innovation is perceived to be
less complex if the consumer already possesses a certain amount of knowledge about the
innovation itself or about a product similar to it [Sheth 1968]. In this case, the knowledge
relevant to reducing the perceived complexity of mobile marketing is the knowledge
about mobile communications.
Mobile communications technology provides the technological basis for mobile
marketing. The more familiar a consumer is with mobile communications in general the
less difficult the use of mobile marketing services will appear to him/her. According to
diffusion theory, a negative relationship can be presumed between the perceived
complexity of an innovation and its acceptance. In compliance with the conceptualization
of the acceptance construct in this study, the relationship between the perceived
complexity of mobile marketing and the attitude towards it can be assumed as being
negative. Since the perceived complexity of mobile marketing is again negatively
influenced by existing knowledge about mobile communications, it can thus be
hypothesized [Harnischfeger et al. 1999]. Therefore, conclusion can be made, the higher
the existing knowledge about mobile communications the more positive the attitude
towards mobile marketing.
52
Faculty of Business and Law Final Year Project
3.7.2 Reliability Analysis
Aside from that, all variables are to be tested via reliability analysis. Reliability
refers to the extent to which a scale produces consistent results if repeated measurements
are made. Therefore, reliability can be defined as the extant to which measures are free
from random errors. The purpose of reliability analysis is to construct reliable
measurement scales, to improve existing scales and most importantly to evaluate the
reliability of the questions. This is vitally important for without reliability, research
results will be replicable. Normality test will also be conducted in this chapter.
Researchers can carry out normality test on the metric data to establish the normality of
the data. Upon completing the normality test, the type of test to use in hypothesis testing
can then be determined.
3.7.3 Significant Differences Test
This test of significant differences is used to compare the sample statistics of two
subgroups in the sample to see whether or not there are statistically significant
differences between their corresponding population values (Burns and Bush, 2003).
Customers’ response has been selected for significant differences based on gender.
Sample t- test will be used to test and compare the means or percentages of two different
groups or samples. In the t-test, independent sample t-test between gender and customers’
responses will be measure.
3.7.4 Hypothesis Testing
Hypothesis testing is carried out to prove propositions not long after conducting a
normality test. This test is run by making use of correlation test. There are two levels of
correlation tests. The first level is conducting normality testing. If it is normally
distributed, , Pearson Correlation (r) will be conducted and if the data is not normally
distributed, Spearman Rho will be conducted to measure the associations of the variables
testes for hypothesis.
53
Faculty of Business and Law Final Year Project
3.7.5 Other Testing
From this statistics, researchers are able to discover the relationship between the
dependant variables and independent variables. T-test, analysis of variance, Bivariate
Correlation and Regression, Cross Tabulation, Multivariate Data Analysis and
Correlation coefficient (r) are among the tests that will be performed during hypothesis
testing. Finally, a discussion of findings is held to analyze all results found from the
descriptive analysis, reliability analysis, significant differences test, normality test and
hypothesis testing. In this section, all results from the analysis will be explained in detail.
54
Faculty of Business and Law Final Year Project
CHAPTER 4: RESULT AND DISCUSSION
4.1. Introduction
After accomplished distributing the questionnaire to 250 respondents, data
analysis is conducted using statistical tool used in this research which is the Statistical
Package for the Social Sciences (SPSS) version 18.0 to measure the reliability and
consistency of scale data, descriptive analysis and also the hypothesis test in this
research. Previous research claim that the reliability analysis of these scales will yielded
favorable results and all of the value of Cronbach’s alphas exceeded the recommended
value 0.6 is consider a high degree of reliability (Ha, 2004, Nunnally, 1978, Malhotra,
1993). After all, the descriptive statistic will be conducted before the reliability analysis
because the respondent profile should be measured before testing the reliability for this
research. Moreover, this chapter exhibits the outcomes or findings for each hypothesis
tests in this study. Therefore, after measuring the descriptive analysis and the reliability
of the data, the hypothesis testing is conducted in order to measure the associations
between the variables. If the data is normally distributed, Pearson Correlation (r) will be
conducted and if the data is not normally distributed, Spearman Rho will be conducted to
measure the associations of the variables testes for hypothesis.
4.2 Pilot Test
4.2.1 Reliability Testing
Prior to the main study, a pilot test was undertaken to ascertain the validity and
reliability of the measures used. The objective of a pilot study is also to replicate the
study on a smaller scale so as to avoid possible mistakes being made in the final research.
The pilot test was conducted among randomly selected 10 Faculty of Business (FBL)
students who were studying at Multimedia University (MMU). Generally, the
respondents were able to complete the questionnaire without any assistance. The overall
pilot test showed that there was a minor change or revision needed for the questionnaire
55
Faculty of Business and Law Final Year Project
before the questionnaire could be used for the main survey. The time taken to complete
the questionnaire was around 2 hours.
4.3 Demographic Profile
Table 1 : Respondent’s gender
Frequency Percent Valid Percent Cumulative Percent
Valid Female 106 42.4 42.4 42.4
Male 144 57.6 57.6 100.0
Total 250 100.0 100.0
In this study, the questionnaires were distributed to female and male and the result for
descriptive statistic conducted illustrate that female is 42.4% and male is 57.6%
respondents as shown in Table 1. It is because from a study conducted by Ahasanul
Haque and Noor Raihan on Mobile Commerce: An evaluate Customer Perception For
Marketing Strategy In Malaysia claims that mostly male respondents showed favorable
attitudes to use mobile technology compared to female respondents. In addition, male
respondents showed their interest for pertaining information, such as financial
information, stock price, sports and game, and travel quick and timely. It is evident from
study that customers always search for more value added services when using their
mobile devices.
Figure 3: Respondents’ Gender Participate in this Study
56
Faculty of Business and Law Final Year Project
The chart above in Figure 1 illustrates the difference between female and male
respondents that participate in this study. Basically, percentage of male respondents is
higher than female respondents. It is evident from this study that male customers always
search for more value added services when using their mobile devices. However, they
rarely response to mobile marketing because they are more interested in seeking
information such as financial information, stock price, sports and game, and travel rather
than response to mobile advertising. Thus, there are 144 male and 106 female
respondents contribute in this study.
Table 2: Respondents’ Age Range
Frequency Percent Valid Percent Cumulative Percent
Valid 18-19 years old 13 5.2 5.2 5.2
20-21 years old 55 22.0 22.0 27.2
22-23 years old 147 58.8 58.8 86.0
24-25 years old 35 14.0 14.0 100.0
Total 250 100.0 100.0
The descriptive statistics result for age range is shown in Table 2 above. This research
specifically aims for students in Multimedia University, Malacca age range between 18-
25 years old. Hence, the results shown that most of students at the age of 22 to 23 years
old are highly participated in this study followed by students at the age of 20 to 21 years
old, 24-25 years old, and at the last place is at the age between 18-19 years old.
57
Faculty of Business and Law Final Year Project
Figure 4: Respondents’ Age Range Percentage
The figure 2 above illustrates that students at the age of 22 to 23 years old are the biggest
group that participate in this study because most of them are degree holder. The number
of degree holder student is the highest in Multimedia University, Malacca. Other group
are fewer in number which is between age range between 18 to 19 years old normally is
foundation student, 20 to 21years old is diploma student, and 24 to 25 years old is master
student or higher.
Table 3: Respondent’s working status
Frequency Percent Valid Percent Cumulative Percent
Valid Working 38 15.2 15.2 15.2
Not working
212 84.8 84.8 100.0
Total 250 100.0 100.0
Table 3 above is descriptive statistic for respondent’s occupation status which shown that
212 students are not working at all and 38 students are working in other means taking
part-time job apart from studying. This is because high numbers of student more focus on
their study rather than intention to work.
58
Faculty of Business and Law Final Year Project
Figure 5: Respondent’s working status percentage
Figure 3 above illustrates that student that working is very low in Multimedia University,
Malacca which shown 85% are not working and only 15% are working or take part-time
job. Later in this paper will discuss whether working status of consumers has effect on
the response of SMS-based mobile advertising.
Table 4: Respondent’s Income Level Range
Frequency Percent Valid Percent Cumulative Percent
Valid RM250 and less 75 30.0 30.0 30.0
RM250 – RM500 90 36.0 36.0 66.0
RM501 – RM 1,000
65 26.0 26.0 92.0
RM1,001 – RM 1,500
12 4.8 4.8 96.8
RM1,500 and above
8 3.2 3.2 100.0
Total 250 100.0 100.0
The descriptive statistics result from student’s income level. Student’s income level is
actually their monthly allowances as well as income from student who have part-time job.
As shown in Table 4, most the students participate in this study have monthly allowances
that are between RM250 to RM500.
Figure 6: Respondent’s Income Level Percentage59
Faculty of Business and Law Final Year Project
Figure 4 illustrates above shown that the highest percentage of student’s income level is
between RM250 to RM500 which is 36%, 30% between RM250 and less, followed by
26% between RM501 to RM1, 000, 5% between RM1, 001 to RM 1, 500 and taking at
last place is 3% which consume RM1, 500 and above. Students that consume RM1500
and above are mostly that take part-time job which sum their monthly allowance let say
RM250 add up with their income normally at range between RM700 to RM800.
Therefore total up with a high income level per month. Hence it is reasonable to say that
student also has a high income level.
Table 5: Respondent’s Education Level
Frequency Percent Valid PercentCumulative Percent
Valid Diploma 12 4.8 4.8 4.8
Degree 219 87.6 87.6 92.4
Master 1 .4 .4 92.8
Others 18 7.2 7.2 100.0
Total 250 100.0 100.0
Figure 7: Respondent’s education level graph60
Faculty of Business and Law Final Year Project
Table 5 is descriptive analysis result of respondent’s education level in this research. As
stated in table above, Degree holder student take the highest number which is 219 over
250 respondents. Others holder such as Diploma is 12 respondents, Master only 1
respondent. Others are actually foundation holder which is 18 respondents. Due to several
limitations the PHD holder is hard to obtain. Figure 5 on the other hand is the graph of
respondent’s education level in Multimedia University, Malacca. The graph shows
clearer view on number of respondents in this research in term of their education level.
Table 6: Respondent’s that owned a hand phone
Frequency Percent Valid Percent Cumulative Percent
Valid Owned a hand phone
250 100.0 100.0 100.0
Table 6 is descriptive statistic of respondent’s that owned a hand phone. A findings of a
total 250 respondent’s in this research own a hand phone which shows that there is no
problem at all for students to response on mobile marketing. It is only the matter of
whether those have intention to look, open, and reply to SMS-based mobile advertising or
not.
61
Faculty of Business and Law Final Year Project
Table 7: Respondent’s awareness on SMS-based mobile advertising
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 151 60.4 60.4 60.4
No 99 39.6 39.6 100.0
Total 250 100.0 100.0
Table 7 shows descriptive statistics on level of awareness of SMS-based mobile
advertising in this research. Surprisingly, quite numbers of respondent’s still aren’t aware
of the existing of mobile marketing which is only 155 respondents answer ‘yes’ and 99
respondents answers ‘no’ respectively to question that measure the level of consumer’s
awareness toward SMS-based mobile advertising. This doesn’t mean that they have no
idea regarding the existence of it. Most of respondents admit that they didn’t realize the
message they received daily is actually called SMS-based mobile advertising or widely
known as mobile marketing.
Figure 8: Respondent’s Level of Awareness Percentage
Figure 7 above shows that 62% and 38% of respondent’s says ‘yes’ and ‘no’ respectively
to question number 7 which is intend to measure consumer’s level of awareness towards
SMS-mobile advertising.
Table 8: Respondent’s number of SMS-based mobile advertising replied in a week62
Faculty of Business and Law Final Year Project
Frequency PercentValid
PercentCumulative Percent
Valid Once 17 6.8 10.7 10.7
Twice 29 11.6 18.2 28.9
More than three times
2 .8 1.3 30.2
Never ( not bothered)
111 44.4 69.8 100.0
Total 151 63.6 100.0Skipped this
question99 36.4
Total 250 100.0
Figure 9: Number of SMS-based mobile advertising replied by respondents in a week graph
Table and figure 8 above is the numbers of SMS-based mobile advertising have replied
by respondents in a week. A total of 111 respondents say that they do not bothered to
response to SMS-based mobile advertising even though they open and read it. 17
respondents response to it once, 29 respondents response twice and only 2 respondents
response 2 times in a week. A total of 151 over 250 respondents aware the existence of
mobile marketing and have response to it. Respondents that skipped this question mean
they answer ‘no’ to the previous question on awareness of mobile marketing. Indirectly it
63
Faculty of Business and Law Final Year Project
tells that respondents whom did not aware about mobile marketing did not response at all
or did not bother to open the message at all. Hence, it creates cause of action of deleting it
immediately without looking at it.
4.4 Reliability Testing
After the questionnaire is distributed the reliability of the data collected was
tested. For reliability analysis, the independent variables in this study was measured
which are brand familiarity, relevance on advertisement, attitude towards SMS
advertising, Brand loyalty, and trust. The reliability test will indicates that the reliability
of the questionnaire. Although there is no specific minimum value for the alpha
coefficient, ‘a higher value indicating a higher degree of internal consistency or
reliability’ (Gravetter and Forzano 2003, p. 391) is expected. Furthermore, it is noted that
the reliability coefficient that is above 0.70 is considered reliable and acceptable mostly
in social science research situation (ats.ucla, 2009).
4.4.1 Brand Familiarity
Table 9: Reliability Analysis for Brand Familiarity
Reliability Statistics
Cronbach's AlphaCronbach's Alpha Based on
Standardized Items N of Items
.784 .791 7
64
Faculty of Business and Law Final Year Project
Item Statistics
I probably response to SMS-based mobile ads if:Mean
Std. Deviation N
25. I am familiar with the products/services brand name 2.6720 .89421 25026. The brand name previously used by family & friends 2.7440 .81061 25027. I have no idea about the product’s brand name 2.9440 .88544 25028. It is not necessarily I response to SMS-base mobile ads even though I am familiar with the product’s brand name
2.9240 .74864 250
29. The products/services captured my interest even though I have no idea about the brand name
2.4840 .95782 250
30. I have experience using the products/services before 2.4160 1.05041 25031. Brand familiarity does not influence my response towards SMS-based mobile ads
2.4680 1.01444 250
As discussed earlier in this study, brand familiarity is the independent variable that is
believes to influence consumer on response of mobile marketing. The result as shown in
Table 9 indicates that the reliability statistic for this variable is reliable for data analysis
because the Cronbach’s Alpha score is 0.784. The reliability shown above is high and it
is more than 0.700. This is because specifically the familiarity of the brand sponsor of an
advertisement will moderate the way in which repetition influences consumer response to
that ads.
4.4.2 Relevance on Advertisement
Table 10: Reliability Analysis for Relevance on Advertisement
Reliability Statistics
Cronbach'sAlpha
Cronbach's Alpha Based on Standardized Items N of Items
.660 .660 7
65
Faculty of Business and Law Final Year Project
Item Statistics
MeanStd. Deviation N
32. I probably respond to SMS-based mobile advertising every time I received one
1.8960 1.01256 250
33. I probably respond to SMS-based mobile advertising if the product/services captured my interest
2.4040 .90113 250
34. I probably NOT respond to SMS-based mobile advertising that I received at my work place/class because it create disturbance to me
2.8440 .92035 250
35. I probably NOT respond to SMS-based mobile advertising that I received during my time at home because it is time for me to rest and enjoy my leisure moment
2.6760 .92001 250
36. I don’t mind response to SMS-based mobile advertising anytime 1.9800 .91595 25037. Brand information is important for me before I response to any SMS-based mobile advertising
2.8200 .86173 250
38. Relevance on advertisement does not influence my response to wards SMS-based mobile advertising
2.4240 .93795 250
The other independent variable in this study is Relevance on Advertisement and the
reliability test was also conducted to measure the reliability of this variable. Basically,
there are 7 items or questions asked to measure the reliability of this variable as shown in
Table 10. However, the score for Cronbach’s Alpha is very low because alpha is 0.660
and less than 0.700. Hence, the results of reliability test illustrate that this variable is not
reliable for data analysis. It is because human behavior is unpredictable. Even though
advertisement is sent to consumers at right time and place, their attitude is also very
crucial. Individual attitude is varying each time they received ads. Positive attitudes have
a high likelihood for them to response rather than individual with negatives attitudes.
Therefore, it is reasonable to say that individual attitudes determine their response
towards mobile marketing more than the content itself.
66
Faculty of Business and Law Final Year Project
4.4.3 Attitude towards SMS Advertising:
Table 11: Reliability Analysis for Attitude towards SMS Advertising
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.626 .629 9
Item Statistics
MeanStd. Deviation N
39. I probably respond to SMS-based mobile advertising every time I received one
2.0480 1.05933 250
40. I probably search for information about the SMS-based mobile advertising before I response
2.3040 1.09562 250
41. I probably NOT response to the same SMS-based mobile advertising that I have response before
2.8760 1.05502 250
42. I tend to at least open the SMS-based mobile advertising that I received, even though I am not interested to it
2.6080 .93908 250
43. If I am not interested to SMS-based mobile advertising that I received, I will spread the information to friends and family who interested to it
2.3080 1.11089 250
44. I probably delete SMS-based mobile advertising that I received if I am NOT interested to it
3.2160 1.04581 250
45. I do not encourage my family and friends to response to SMS-based mobile advertising if I have bad experience from that brand name
3.0360 .98314 250
46. I don’t mind to received and freely response SMS-based based mobile advertising anytime , anywhere
2.3960 .99758 250
47. My attitude doesn’t influence my response towards SMS-based mobile advertising
2.7840 .87430 250
The third variables to be discuss here is attitude towards SMS advertising. The
Cronbach’s Alpha score for this variable is 0.626 which mean this variable is not reliable
because as discussed earlier, if the alpha scores is less than 0.70 is consider that the
variable is reliable. Furthermore, in earlier discussion mentioned that consumer behavior
is difficult to determine. Therefore, it is reasonable to say that the results of reliability test
illustrate not reliable for data analysis.
67
Faculty of Business and Law Final Year Project
4.4.4 Brand Loyalty
Table 12: Reliability Analysis for Brand Loyalty
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.695 .697 8
Item Statistics
Mean Std. Deviation N48. Brand name is a very important for me before I response to SMS-based mobile advertising
2.9920 .89169 250
49. I probably response to SMS-based mobile advertising if I am loyal to that brand name
2.8040 .95142 250
50. I probably NOT response to SMS-based mobile advertising that is not recommended by my friends and family
2.7600 .90868 250
51. I probably NOT response to product/services that I never tried before
2.7640 .87140 250
52. I probably response immediately to new product/services offer through SMS-based mobile advertising
2.2280 .93139 250
53. I do not mind trying new product/ services promote through SMS-based mobile advertising
2.3920 .93479 250
54. I probably delete SMS-based mobile advertising after I received if I never heard about the brand name
3.0800 .93654 250
55. I probably response to SMS-based mobile advertising if the product/services previously used by my family and friends
2.6720 .96755 250
The fourth variable discuss here is brand loyalty. The Cronbach’s Alpha score for this
variable is 0.695 which mean this variable is almost reliable if rounded the number up, it
is equal to 0.70. If the alpha scores are equal to 0.70, it is consider that the variable is
reliable. Question 54 gets the highest mean which is 3.0800. This means most of
respondents tend to agree on this question. It shows that brand loyalty contributes to
major response of mobile marketing as consumers admit that they probably delete SMS-
based mobile advertising if they never heard about the brand name. By this proves how
loyalty to a brand name has influence consumer in order for them to response towards
SMS-based advertisement. Hence, it is reasonable to say that the results of reliability test
illustrate are reliable for data analysis.
68
Faculty of Business and Law Final Year Project
4.4.5 Trust
Table 13: Reliability Testing for Trust
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.755 .759 8
Item Statistics
Mean Std. Deviation N
56. I trust SMS-mobile advertising 2.1200 .95774 25057. I probably response to SMS-based mobile advertising recommended by my friends and family
2.3560 .93850 250
58. I probably NOT response to SMS-based mobile advertising if I do not trust the brand
3.3500 .89523 250
59. I probably NOT response to SMS-based mobile advertising if they asked for personal information
2.9640 1.05411 250
60. I probably NOT response to brand name that I never heard before 2.9000 1.05758 25061. I probably NOT response to brand name that have negative reputation/image
3.1440 1.00364 250
62. Brand information is very important before I response to SMS-based mobile advertising
2.8800 1.05358 250
63. I do not mind to take risk when response to SMS-based mobile advertising
2.1320 1.11334 250
Trust is another independent variable that going to be discuss. The Cronbach’s Alpha
score for this variable is 0.755 which means this variable is reliable because the value is
again more than 0.70. This is because to gain consumer’s trust is the most challenging
aspect when company launching marketing strategy. Same goes in mobile marketing
industry with the ever growing possibilities of connecting with the consumer that the
mobile device offers comes the key challenge of overcoming the threat of breaches of
consumer privacy that fraudsters, spammers and phishing attacks present. Taking
everything into consideration, building trust and faith amongst consumers is central to
building a relationship with the brand. Refer to the table above, in average respondents
view trust issues in serious consideration before them response to mobile advertising.
Hence, it is reasonable to say that the results of reliability test illustrate are reliable for
data analysis.
69
Faculty of Business and Law Final Year Project
4.5 Significant Differences Test
This test of significant differences is used to compare the sample statistics of two groups
in the sample to see whether or not there are statistically significant differences between
their corresponding population values (Burns and Bush, 2003).
4.5.1 Significant Differences between Gender and Response of Mobile Marketing
Gender N Mean Std. Deviation t Sig.
Male
Female
144
106
3.4597
2.9057
0.78144
0.928403.837 0.000
Table 14: Significant Differences between Gender and Response of Mobile Marketing
The table above is equal variances assumed since the significant value for the
Levene’s Test is greater than 0.05 which is 0.134. It can be seen in Table 14 that male
students (Mean=3.46; SD=0.781) have relatively higher likelihood to response towards
mobile advertising than females (Mean=2.91; SD=0.928). Since the significant value for
the test is 0.000 which is less than 0.05, it indicates that there is significant difference
between gender and level of response in mobile marketing.
70
Faculty of Business and Law Final Year Project
4.6. Hypothesis Testing
In this study, the first test for hypothesis testing is to examine the normality of the
data therefore normality test was conducted. After the result shows that the data is not
normally distributed, the test for associations will be conducted. Therefore, Spearman’s
Rho test is conducted in this study to measure the association between the variables.
Moreover, this analysis is also to measure the hypothesis and identify whether there is a
significant relation between variables tested in this study. As a result of this analysis the
hypothesis is clarify whether it is rejected or accepted for this research. At the end of
hypothesis testing, the relationship between variables will be discussed. Thus, this is to
clarify the acceptance of the entire hypothesis in this study. Relationship between
independent variable and dependent variable has created the hypothesis for this study
therefore after conducting several tests for hypothesis testing such as Spearman’s Rho
analysis, the outcome should be clarify and prove that there is a relationship and
association between dependent and independent variables.
4.6.1. Normality Test
The normality test is conducted in this study to determine whether the data
collected are normally distributed or not normally distributed. As the results indicate in
Table 14 to Table 18, the data in this study is not normally distributed because the
significant level or p-value is less than 5%. Therefore, Spearman’s Rho test should be
conducted in order to examine and identify the test for associations between variables to
test the hypothesis.
Table 14: Normality Test for Brand familiarity
Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Brand Familiarity .340 250 .000 .881 250 .000
71
Faculty of Business and Law Final Year Project
Table 15: Normality Test for Relevance on advertisement
Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Relevance on Advertisement .323 250 .000 .869 250 .000
Table 16: Normality Test for Attitude towards SMS advertising
Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Attitude towards SMS advertising .349 250 .000 .866 250 .000
Table 17: Normality Test for Brand loyalty
Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Brand loyalty .304 250 .000 .874 250 .000
Table 18: Normality Test for Trust
Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Trust .278 250 .000 .856 250 .000
Herewith, as discussed earlier in this study the normality test is conducted in order to measure the
normality of data distribution. After the test of normality conducted, test of association need to be measured
between dependent and independent variable to clarify the relationship. The result of normality test portray
that Spearman’s Rho test should be used to test the hypothesis and examine the association because the data is
not normally distributed with the value of significant is less than 5% for all independent variables.
72
Faculty of Business and Law Final Year Project
4.6.2. Spearman’s Rho Analysis
The results for Spearman Rho are shown below. According to Wellesley.edu
(2009) and SPSS guideline (1998), the association is stronger when the correlation is near
to +1 or -1 and the relation is not linear between two variables when the significance
level of less than 5% is not obtained. However, this result shows that the variable has
significant association and positive relationship between both variables.
The associations of two variables depends on the direction of the correlation, if
the correlation is positive means the two variables have a positive relationship and if the
correlation is negative means the variable have negative relationship or inversely related
(Wellesley.edu, 2009). In this study the correlation is positive therefore; the hypothesis in
this research is positively related. Moreover, there is a significant relationship between
the two variables for this study because the value is close to 0.05 and less means there is
a significant relationship (Stanford.edu, 2009).
Result of Analysis
Spearman Rho between independent and dependent variable in the study
Table 19: Correlation: (Does level of response connect with brand familiarity)
73
Faculty of Business and Law Final Year Project
Correlations
Level of response
Brand familiarity
Spearman's rho Level of response Correlation Coefficient
1.000 .453**
Sig. (2-tailed) . .000
N 250 250
Brand familiarity Correlation Coefficient
.453** 1.000
Sig. (2-tailed) .000 .
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).
Explanation about the analysis:
After the measurement, the test result between level of response and brand familiarity
among Malaysian respondents has a positive relationship. From the result in Spearman
Rho correlation in table 19 yield a rho value (p-value) of 0.453 which means as discussed
earlier if the p-value is near to +1 the association is stronger and the significance level is
less than 5%. This indicates that the hypothesis between the two variables has significant
relationship because the significant value is 0.000. Due to this, hypothesis 1 is accepted.
Brand familiarity is significantly correlated with the level of consumer’s responses on
mobile marketing.
74
H1: There is a significant influence between consumer’s responses on mobile
marketing with brand familiarity.
Faculty of Business and Law Final Year Project
Table 20: Correlation: (Does level of response connect with relevance on advertisement)
Correlations
Level of response
Relevance on advertisement
Spearman's rho Level of response Correlation Coefficient
1.000 .527**
Sig. (2-tailed) . .000
N 250 250
Relevance on advertisement
Correlation Coefficient
.527** 1.000
Sig. (2-tailed) .000 .
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).
Explanation about the analysis:
The test result between level of response and relevance on advertisement among
Malaysian respondents has a positive relationship. From the result in Spearman Rho
correlation in table 20 yield a rho value (p-value) of 0.527 which means as discussed
earlier if the p-value is near to +1 the association is stronger and the significance level is
less than 5%. This indicates that the hypothesis between the two variables has significant
relationship because the significant value is 0.000. Due to this, hypothesis 2 is accepted.
Relevance on advertisement is significantly correlated with the level of consumer’s
responses on mobile marketing.
75
H2: There is a significant influence between consumer’s responses on mobile
marketing with relevance on advertisement
Faculty of Business and Law Final Year Project
Table 21: Correlation: (Does level of response connect with attitude towards SMS
advertising)
Correlations
Level of response
Attitude towards SMS ads
Spearman's rho Level of response Correlation Coefficient
1.000 .369**
Sig. (2-tailed) . .000
N 250 250
Attitude towards ads Correlation Coefficient
.369** 1.000
Sig. (2-tailed) .000 .
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).
Explanation about the analysis:
The test result between level of response and relevance on advertisement among
Malaysian respondents has a positive relationship. From the result in Spearman Rho
correlation in table 21 yield a rho value (p-value) of 0.369 which means as discussed
earlier if the p-value is near to +1 the association is stronger and the significance level is
less than 5%. This indicates that the hypothesis between the two variables has significant
relationship because the significant value is 0.000. Due to this, hypothesis 3 is accepted.
Attitude toward SMS advertising is significantly correlated with the level of consumer’s
responses on mobile marketing.
76
H3: There is a significant influence between consumer’s responses on mobile
marketing with attitude towards SMS advertising
Faculty of Business and Law Final Year Project
Table 22: Correlation: (Does level of response connect with brand loyalty)
Correlations
Level of response Brand loyalty
Spearman's rho Level of response Correlation Coefficient
1.000 .310**
Sig. (2-tailed) . .000
N 250 250
Brand Loyalty Correlation Coefficient
.310** 1.000
Sig. (2-tailed) .000 .
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).
Explanation about the analysis:
This time hypothesis four is tested. Table 22 above is the result between the levels of
response with brand loyalty. The teston attitude towards SMS advertising has a positive
relationship. From the result in Spearman Rho correlation in table 22 yield a rho value (p-
value) of 0.310 which means as discussed earlier if the p-value is near to +1 the
association is stronger and the significance level is less than 5%. This indicates that the
hypothesis between the two variables has significant relationship because the significant
value is 0.000. Due to this, hypothesis 4 is accepted. Attitude towards SMS advertising is
significantly correlated with the level of consumer’s responses on mobile marketing.
77
H4: There is a significant influence between consumer’s responses on mobile
marketing with brand loyalty
Faculty of Business and Law Final Year Project
Table 23: Correlation: (Does level of response connect with brand trust)
Correlations
Level of response Trust
Spearman's rho Level of response Correlation Coefficient
1.000 .469**
Sig. (2-tailed) . .000
N 250 250
Trust Correlation Coefficient
.469** 1.000
Sig. (2-tailed) .000 .
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).
Explanation about the analysis:
The last hypothesis going to be discussing here is trust. The test result between level of
response and trust among Malaysian respondents also has a positive relationship. From
the result in Spearman Rho correlation in table 22 yield a rho value (p-value) of 0.469
which means as discussed earlier if the p-value is near to +1 the association is stronger
and the significance level is less than 5%. This indicates that the hypothesis between the
two variables has significant relationship because the significant value is 0.000. Due to
this, hypothesis 5 also not rejected. Trust is significantly correlated with the level of
consumer’s responses on mobile marketing.
78
H5: There is a significant influence between consumer’s responses on mobile
marketing with brand trust
Faculty of Business and Law Final Year Project
4.7 Conclusion
Thus, all the independent variables which are brand familiarity, relevance on
advertisement, attitude towards SMS advertising, brand loyalty, and trust have
statistically significant relation with the dependent variable in this study which is level of
response on mobile advertising. The result for all the analysis tested in hypothesis testing
has proven and clarify that the variables have significant influence and association.
Moreover, the hypothesis tested in this study indicates that the independent variables are
positively related with the dependent variable.
79
Faculty of Business and Law Final Year Project
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS
5.1 Chapter Overview:
This chapter summarizes and discusses the findings of the results arising from the
research questions and the hypotheses. Secondly, implications of the study and
recommendations for action are discussed. The chapter concludes with the limitations of
the study and the conclusion of the study.
5.2 Discussion of Findings
Summary
Herewith all the findings on the factors that influence response of mobile
marketing among Malaysia consumers is finally done. The entire table shown above has
indicated clear relationship between dependent and independent variables. Each step of
analysis is conducted carefully to get a precise result in this study.
First of all, descriptive analysis is used to analyze the data obtained. From the
outcome of the analysis, male respondents show a higher percentage than female in this
study. This is because male are more looking forward towards technological gadget than
female. Figure 9 below is a survey of comparison between male and female on their
media usage conducted by government of Kenya from http://www.audiencescapes.org. It
proves that male respondents have higher usage of SMS than female respondents.