Understanding consumer perception towards mobile advertisements

Group 8 Nikhil Gupta (18) Rahul Kasliwal (20) Aayushi Agrawal (34) Anubhav Tuli (48) Ankur Mahajan (74) Akansha Goyal (80)

Mobiles reach where other media dont

Mobiles reach in ways other media dont

Mobiles are a rebound medium

Flow of presentation
Introduction Literature Review

Objective of Study
Research Hypothesis Research Methodology

Analysis
Finding and Suggestions

Introduction
The rapid proliferation of mobile phones along with the technological development has created a whole new marketing medium named mobile advertising Mobile advertising, an area of mobile commerce, is a form of advertising that targets users of handheld wireless devices such as mobile phones and PDAs It can reach the target customers anywhere anytime

 The mobile channel offers an exciting opportunity for marketers

Mobile devices are attractive media for directly communicating with consumers who have become busier and more difficult to reach Phones and personal digital assistants increase the availability, frequency and speed of communication

 Studies on this 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 study attempts to study consumer responsiveness to mobile marketing, in terms of its impact on purchase decision making. The primary objective is to gain an insight into the perception of mobile users towards mobile marketing/advertising

Literature
A study done by Heinonen & Strandvik (2003) showed that mobile channels are perceived to be more personal than traditional and e mail channels A consumer expects messages to be personal and of high interest and this makes the disappointment greater when they get undesired messages Mobile advertising may even step over the line of discretion and invade consumers privacy because of the personal nature of the mobile device

 The mobile channel influences consumer responsiveness to marketing communication by being perceived as either disturbing or acceptable (Abernethy 1991).
If the consumer considers marketing communication via a channel as disturbing it may negatively affect the attention to and perception of the message

In contrast, the channel may also enhance the acceptance of the marketing communication if it is perceived as appropriate for the specific marketing communication. Some consumers may perceive the channels as neutral, i.e. it is neither disturbing nor accepted.

Objectives of the study

To identify what factors effect consumers perception towards mobile advertisements. To study the overall consumer behaviour for mobile advertisements and their impact on their buying decision.

Research hypothesis
H01 : The personalization of mobile advertising leads to negative attitude towards mobile advertising. H02 : Non-irritating mobile advertising leads to negative attitude. HO3 : The credibility of mobile advertising leads to negative attitude toward mobile advertising.

 HO4 : The informativeness of mobile advertising leads to negative attitude toward mobile advertising. H05: The entertainment of mobile advertising leads to negative attitude toward mobile advertising. H06: The monetary benefit of mobile advertising leads to negative attitude toward mobile advertising.

Research methodology

Questionnaire Design

Data Collection

Compilation & Understanding

Analysis of the data

Results and Recommen dations

 Data Collection
Primary data
Questionnaire

Secondary data
Documentary Surveys

Sample Size & Sampling Design

Out of the 68 respondents 58 are considered for the study. Convenience Sampling Technique used. Only online respondents were included for the study.

Demographics
Gender
Male (34) Female (24)
41%
59%
Male Female

2% 2%

Age
15 -19

31%

20 - 24 25 - 29 30 - 34

65%

35 - 39
40 and above

 Occupation
2%

2% 5%
student service housewife

27% 64%

business
self-employed

Analysis
Give your response based on the following questions - Do you like receiving such mobile advertisements?
Yes No 8 50 12% 77%

Give your response based on the following questions - Have you ever used permission based mobile advertisements to purchase items?

Yes No

9 49

14% 75%

Give your response based on the following questions - Do you feel mobile advertisement is right way the advertising?
Yes No 28 30 43% 46%

Give your response based on the following questions - Are mobile advertisements irritating for you?
Yes No 43 15 66% 23%

Give your response based on the following questions - Are the mobile advertisements that you usually receive relevant to you?
Yes No 9 49 14% 75%

Give your response based on the following questions - Do you think mobile advertisement is informative?
Yes No 25 33 38% 51%

Do you delete mobile advertisements without reading them?

Yes No

43 15

66% 23%

Do you think mobile advertisements are relayed at the wrong time?

Yes No 44 14 68% 22%

If given an opportunity would you like to select the time at which mobile advertisements are delivered to you?

Yes No

45 13

69% 20%

If given an opportunity would you like to select the subject (like product/service category, brands etc.) of mobile advertisements which are delivered to you?

Yes No

51 7

78% 11%

Comparison of means: T-test

Applied T- test to check any significant difference in the response of male and female respondents.
There is no significant difference in the response of male and female as the significance is coming out to be .14 which is more than .05 This shows that both men and women give equal significance to mobile advertisement.

Comparison of means: Anova

Applied anova test to check any significant difference in the response because of varied age group.
The F probability value in the anova came out to be .925 which is more than .05 (at 95% confidence level) thus the category of age group has no significant impact on the users getting influenced by mobile advertisement.

Applied anova test to check any significant difference in the response because of varied occupation
The F probability value in the anova came out to be .881 which is more than .05 (at 95% confidence level) thus the category of occupation has no significant impact on the users getting influenced by mobile advertisement.

Studying the impact of mobile marketing in various sectors

Fashion
One-Sample Test
Test Value = 3 95% Confidence Interval of Mean t How 4 do you see the following category of -1.244 57 .219 -.207 -.54 .13 df Sig. (2-tailed) Difference the Difference Lower Upper

mobile ads [Fashion]

The significance value in the segment of fashion is .219 which is greater than .05 hence no significance result is obtained.

Food And Beverages

One-Sample Test

Test Value = 3
95% Confidence Interval of the

Mean
T How 4 do you see the following category of -1.735 57 .088 -.276 df Sig. (2-tailed) Difference

Difference Lower Upper

mobile ads [Food and Beverages]

-.59

.04

The significance value is .088 which is again greater than .05 thus the value is not significant.

Automobiles
One-Sample Test Test Value = 3 95% Confidence Interval of the Difference t How 4 do you see the following category of mobile -5.797 ads [Automobiles] 57 .000 -.759 -1.02 -.50 df Sig. (2-tailed) Mean Difference Lower Upper

The significant value is .000 which is less than .05. Hence the result is significant. Now we see that the mean difference is -.759 which is negative hence. The AUTOMOBILE ads are either rarely or never seen.

Financial Services

Test Value = 3 95% Confidence Interval of the Difference t How 4 do you see the following category of mobile 2.278 ads [Financial services] 57 .026 .379 .05 .71 df Sig. (2-tailed) Mean Difference Lower Upper

The significant value is .026 which is less than .05. Hence the result is significant. Now we see that the mean difference is .379 which is positive hence The Financial Services adds are frequently seen by the sample taken.

Real Estate
One-Sample Test Test Value = 3 95% Confidence Interval of the Difference

t
How 4 do you see the following category of mobile 2.868 ads [Real Estate]

df

Sig. (2-tailed)

Mean Difference Lower

Upper

57

.006

.552

.17

.94

The significant value is .006 which is less than .05. Hence the result is significant. Now we see that the mean difference is .552 which is positive hence. The Real Estate adds are frequently received by the sample taken

Factor Analysis

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .612 114.550 55 .000

Here the KMO value of .612 above the expectance level of .5 , so this proves that doing factor analysis on this questionnaire would give reliable output.

Total Variance Explained

Extraction
Initial Eigenvalues % Component Total 1 2 3 4 5 6 7 8 9 10 11 2.318 1.863 1.507 1.147 .829 .743 .695 .584 .520 .443 .350 Variance 21.075 16.938 13.702 10.432 7.539 6.755 6.315 5.310 4.727 4.024 3.185 of Cumulative % 21.075 38.013 51.715 62.147 69.685 76.440 82.755 88.065 92.791 96.815 100.000 Total 2.318 1.863 1.507 1.147 Loadings

Sums

of

Squared
Rotation Sums of Squared Loadings

% Variance 21.075 16.938 13.702 10.432

of Cumulative % 21.075 38.013 51.715 62.147 Total 1.851 1.781 1.718 1.486

% Variance 16.828 16.188 15.621 13.510

of Cumulative % 16.828 33.016 48.636 62.147

Extraction

Method:

Principal

Component

Analysis.

Cumulative percentage of 62.147% of Rotation sum of square loadings depict that 62.147% of the data can be explained by these four factors obtained from factor analysis.

Rotated Component Matrixa Component 1 is relevant to my job and activities is relevant to my location it`s receiving time chose by myself. gives me a chance to take part in raffle for -.210 receiving message. is short and to the point revealed how I can stop receiving further -.189 messages. obtained my permission in advance is funny contains photo, sound, video .097 .020 -.190 .664 .640 .818 .279 .535 -.104 -.194 -.038 -.009 .246 .669 .252 .230 -.147 .053 .766 -.035 -.088 .672 .772 .652 .148 2 -.052 -.170 .023 3 -.079 .284 .816 4 .054 -.055 -.201

is informative about new products and services

I, myself, chose it `s subject. Extraction Method: Principal Component Analysis.

.595
.526

.070
.373

-.363
.023

-.378
.395

Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations.

The Four Factors after applying factor analysis

Entertainment Convenience Perceived Usefulness Concise Interactive

Is relevant to my job and activities Is relevant to my location I, myself, chose my subject Is Informative about new products and services

Obtained my permission in advance Is funny Contains photo, sound, video

Its receiving time chosen by myself. Reveal how I can stop receiving further messages

Gives me a chance to take part in raffle for receiving message Is short and to the point

H01 : The personalization of mobile advertising leads to negative attitude towards mobile advertising.
Correlations Give your response

based on the following questions [Do you feel is personally directed mobile advertisement is towards right way the message XYZ...) .061 .652 57 .061 .652 57 66 57 1 me like (e.g. a

Dear,

advertising?] Give your response based on the Pearson Correlation following questions [Do you feel mobile Sig. (2-tailed) advertisement advertising?] is personally directed towards me (e.g. Pearson Correlation a message like Dear, XYZ...) Sig. (2-tailed) N is right way the N 1

Significance is .652 more than .05, there is no significant difference, i.e. personalized messages and attitude of customers are not correlated.

H02 : Non-irritating mobile advertising leads to negative attitude.

Correlations Give your response your response

based on the following Give

questions [Do you feel based on the following mobile advertisement is questions [Are mobile right way the advertisements

advertising?]
Give your response based on the Pearson Correlation following questions [Do you feel mobile Sig. (2-tailed) advertisement advertising?] is right way the N 57 1

irritating for you?]

-.56 .0398 57

Give your response based on the Pearson Correlation

following questions [Are mobile Sig. (2-tailed) N

-.56
.0398 57

advertisements irritating for you?]

58

Significance is .039 lesser than .05 that is there is significant difference. Correlation is -.56 that is strongly NEGATIVE correlated.

HO3 : The credibility of mobile advertising leads to negative attitude toward mobile advertising.
Correlations Give your response Give your response

based on the following based on the following questions [Do you feel questions [Do you trust mobile advertisement is the information received right way the from advertisements?] .014 .916 57 .014 .916 57 58 57 1 mobile

advertising?] Give your response based on the Pearson Correlation 1

following questions [Do you feel mobile Sig. (2-tailed) advertisement advertising?] Give your response based on the Pearson Correlation is right way the N

following questions [Do you trust the Sig. (2-tailed) information received from mobile N advertisements?]

Significance is .916 greater than .05, there is no significant difference, hence no correlation between the credibility and the attitude of the customer.

HO4 : The informativeness of mobile advertising leads to negative attitude toward mobile advertising.
Correlations Give your response based on the Give your response based on following questions [Do you feel the following questions [Do you mobile advertisement is right way think mobile advertisement is the advertising?] Give your response based on the following Pearson Correlation questions [Do you feel mobile advertisement Sig. (2-tailed) is right way the advertising?] N 57 .372** .004 57 58 1 informative?] .372** .004 57 1

Give your response based on the following Pearson Correlation questions [Do you think mobile advertisement Sig. (2-tailed) is informative?] N

**. Correlation is significant at the 0.01 level (2-tailed).

Significance is .004 which is less than .05 (95% significance level), thus there is significant difference and the correlation is positively but weekly correlated .372. The null hypothesis is rejected in this case and it shows that information is a very important attribute which leads towards the positive attitude of the consumers.

H05: The entertainment of mobile advertising leads to negative attitude toward mobile advertising.
Correlations
Give your response based on the following questions [Do you feel mobile advertisement is right way the advertising?] Give your response based on the Pearson Correlation following questions [Do you feel Sig. (2-tailed) mobile advertisement is right way the N advertising?] is funny Pearson Correlation Sig. (2-tailed) N contains photo, sound, video Pearson Correlation Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). 57 .204 .128 57 -.050 .713 57 66 .390** .001 66 66 1 is funny .204 .128 57 1 contains sound, video -.050 .713 57 .390** .001 66 1 photo,

Significance is .128 and .713 which is greater than .05 (95% significance level) thus there is no significant difference and there is no correlation

H06: The monetary benefit of mobile advertising leads to negative attitude toward mobile advertising.

Correlations Give your response based on the following questions [Do you feel mobile advertisement is right way monetary benefit (like the advertising?] Give your response based on the Pearson Correlation following questions [Do you feel mobile Sig. (2-tailed) advertisement advertising?] monetary benefit (like mobile coupons Pearson Correlation etc.) Sig. (2-tailed) N is right way the N 57 .005 .971 57 66 1 mobile coupons etc.) .005 .971 57 1

Significance is .971 which is more than .05, hence there is no significant difference and thus monetary benefits and attitude of the sample were not correlated.

Recall of brand advertised

Majority recalled snapdeal.com receiving SMSs from online deals

Others recalled brands like Allen Solly, USB , iPhone , State bank of India, Timesjobs, Airtel, Westside.

Recall of sale/special promotion

Majority recalled festive offers, seasonal discounts and daily deal. Respondents also recalled offers like reduce weight , get taller, win cash prizes, lucky winners etc.

Recall of product/services
Majority recalled real estates, beauty & healthcare, banking & insurance , fashion and holiday packages.

Findings & Suggestions

Consumers dont like receiving ad messages and they havent used permission based mobile ad system. The reason may be non awareness or complication of such system. Though 77% of consumers do not like receiving ad messages, 43% of consumers think it is the right way of advertising. Reason is that they feel such type of advertising has more reachability and gives them information on the go. 43% of consumers think it is the right way of advertising but 66% feel those ads are irritating. This shows consumers. Reason that they receive the advertisements at the wrong time.

 51% of the consumers feel that mobile ads are not informative. This could be one of the major reasons for 66% of consumers getting irritated with mobile ads and so they eventually delete them without reading. This can be substantiated with the fact that 66% of consumers agreed that they delete the messages without reading them Consumers want personalized and customized mobile ads. This is supported by the following facts
69% of consumers like to decide the time at which the mobile ads are delivered. 78% of consumers would like to select the category/product /brand of mobile ads 75% of consumers would like to receive only that information which they want.

THANK YOU