INFLUENCE OF MOBILE MARKETING ON CONSUMER PURCHASE BEHAVIOUR IN ORGANIZED INSTITUTIONS

 ABSTRACT
Advances in Information and Communication Technologies are not only offering new
marketing channels  of communication and interactivity  to  companies but also significantly influencing the ways in which organisations conduct their businesses and marketing activities. Marketing on Mobile devices has become one of the most popular channels of communicating with intending and potential customers, particularly in the form of text advertising through  Short Messaging Service. This study is aimed at examining the influence of mobile Marketing on consumer Purchase Behaviour among mobile phone users  in organized institutions  in Lagos State. The objectives of this study are to examine the effect of marketing messages on consumer attitude, to  identify the  effect of marketing messages on purchase behaviour and to examine  consumer  factors  that  significantly  influence attitude towards  mobile marketing. To achieve the objectives, four hypotheses were formulated from the structure of the research questions. This study was anchored on three theories: learning theory, involvement theory, and theory of reasoned action. The study employed cross-sectional survey design and the  data required for this study were gathered using a structured questionnaire. One thousand two hundred (1200) copies of the questionnaire  were administered to University students  and employees in selected  organisations. One thousand and forty three (1043)  copies were  retrieved out of which One thousand and twenty (1020) copies were used for analysis. Validity
and reliability of the research instrument was carried out using composite reliability,
content and construct validity.    Multi-stage sampling and systematic  random sampling techniques were used to select the respondents for this study.  Multiple regression was used to test the stated hypothesis with the use of structural modeling technique. The  first hypothesis revealed  that there  is a  significant positive effect of marketing messages on consumer attitude (C.R values were greater than 1.96 and P values  less than 0.05). The second  hypotheses revealed that consumer attitude towards marketing messages have a positive influence on purchase behaviour  (C.R values were  greater than 1.96 and P values  less than 0.05). The third hypothesis revealed that there is a significant positive effect of marketing messages on purchase
behaviour (C.R values were  greater than 1.96 and P values  less than 0.05). The fourth hypothesis tested revealed that  there is a significant influence of consumer factors  (except for innovativeness, existing knowledge and social norms) on attitude towards marketing messages  (C.R values were greater than 1.96 and P values  less than 0.05). Based on these  findings, the study recommended that: (i) mobile marketing managers should determine target customers and understand their demographic characteristics  in order  to  develop successful mobile marketing
programmes  and strategies; (ii) Marketing messages should be personalized to consumer  needs in stimulating positive attitude and response towards the advertised product/service; (iii) Marketers should frequently communicate with their customers in  order to build customer loyalty;  (IV) organizations and advertisers should seek consumers consent before sending them marketing messages,   as mobile phones are considered  personal assets to the owners; (v) Organisations should ensure that their marketing messages are creatively designed in order to yield value to the consumer.

TABLE OF CONTENTS                                                       Page 
Title Page                     ii
Certification                    iii
Declaration                    iv
Dedication                     v
Acknowledgements                  vi
Abstract                               ix
Table of Contents                   x
List of Tables                             xiii
List of Figures                                                                                                        xvi
List of Charts                                                                                                          xvii
List of Models                                                                                                           xviii
List of Appendices                                                                                                    xix
List of Abbreviations                                                                                                xx

CHAPTER ONE:
INTRODUCTION 
1.1  Background to the Study              1
1.2  Statement of Research Problem            3
1.3  Research Questions                5
1.4  Research Objectives                6
1.5  Research Hypotheses                6
1.6  Significance of the Study              6
1.7  Scope of Study                7
1.8  Outline of Chapters                8
1.9  Operationalization of Research Variables          9
1.10  Definition of Terms                11

CHAPTER TWO:
LITERATURE REVIEW 
2.1  Conceptual Framework              12
2.1.1  The Nigerian Telecommunication Industry        13
2.1.2    What is Mobile Marketing            15
2.1.3     Development of Mobile Marketing          17
2.1.4  Characteristics of the Mobile Phone          19
2.1.5  Mobile Marketing Tools            20
2.1.6  Short Message Service as a Mobile Marketing      21
2.1.7  Drivers of Mobile Marketing            22
2.1.8  Benefits of Mobile Marketing            22
2.1.9  Types of Mobile Marketing            26
2.1.10  Forms of Mobile Marketing Tools                    27
2.1.11  Fundamental Issues in Mobile Marketing        33
2.1.12  Marketing Strategy in Mobile Marketing        39
2.1.13  Application of Marketing Mix Concept in Mobile Marketing  44
2.1.14  Consumer Behaviour              50
2.1.15  Marketing Communication Effects          73
2.1.16  Factors Influencing Attitude towards Mobile Marketing    76
2.1.17  Behavioural Intention             86
2.1.18  Relationship between Attitude, Intention and Purchase
Behaviour                 87
2.1.19  Consumer Attitude Models in Mobile Marketing                     88
2.2  Theoretical Framework                       93
2.2.1  Theories of Mobile Service Adoption         93
2.2.2  Theories of Consumer Behaviour                   100
2.3  Empirical Framework                109
2.4  Gap in Literature                119

CHAPTER THREE:
METHODOLOGY 
3.1       Study Area      122
3.2  Research Design                         123
3.3  Population of the Study                       123
3.4  Sample Size Determination                 124
3.5  Sampling Technique                                124
3.6  Sampling Frame                         127
3.7  Sources of Data                         127
3.8  Data Collection Method and Procedure          128
3.9  Research Instrument and Design                     129
3.10  Validity of Research Instrument                     136
3.11  Reliability of Research Instrument            138
3.12     Method of Data Analysis              139

CHAPTER FOUR:
DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS 
4.1 Presentation of Data                         142
4.1.1  Response Rate                                 142
4.2  Data Analysis and Interpretation                             144
4.2.1   Analysis of  Demographic Data                   144
4.2.2  Descriptive Analysis of   Data on Mobile Phone usage             147
4.2.3  Respondents Rate of Receiving Mobile Marketing Messages         158
4.2.4   Respondents Preference Density for Mobile Marketing Messages 161
4.2.5   Respondents  Behavioural Response to Marketing Messages     167
4.2.6  Descriptive Analysis of data on Relevant Variables               172
4.2.2  Collation and Analysis of  Open-ended Questions               183
4.3.5  Descriptive Analysis of Variables                 185
4.3  Validation of Research Model and Testing of Hypothesis    195
4.3.1  Test of Hypothesis One          202
4.3.2  Test of Hypothesis Two          205
4.3.3  Test of Hypothesis Three          206
4.3.4  Test of Hypothesis Four          208
4.3.5     Discussion of Results           210

CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATIONS 
5.1.1  Summary of Work              215
5.2       Discussion of  Findings            216
5.2.1  Summary of Theoretical Findings        216
5.2.2  Summary of Empirical Findings        218
5. 3  Conclusion                222
5.4.1  Implication of Findings            224
5.4.1    Implication for Practice          224
5.4.2  Policy Makers and Government        226
5.5  Recommendations              227
5.6  Limitations of the Study            228
5.7  Suggestions for Further Research          230
5.8  Contribution to Knowledge            232

REFERENCES                234 

LIST OF TABLES 
Table 2.1:  Legal Consideration for Mobile Marketing        38
Table 2.2:  Comparison of Selected Age Cohorts across
Marketing-Related Issues            54
Table 2.3:  Reference Group influence on Consumption       80
Table 2.4:  Hierarchy of Effects of Different Involvement Levels    82
Figure 2.5:   Summary of research findings on consumer attitude
towards mobile marketing            117
Table 3.1:   Selected Sample of the Study           126
Table 3.2:   Questionnaire Administration            129
Table 3.3:   Measurement of Variables – Part 1- Section A      131
Table 3.4:    Measurement of Variables – Section B        131
Table 3.5:  Measurement of Variables – Part 2                                     132
Table 3.6:  Source of Items Used in the Questionnaire                     134
Table 4.1:  Frequency Distribution by number of Questionnaires
Administered and Retrieved according to Organisations    143
Table 4.2:  Frequency Distribution of Respondents by Socio- demographic
Characteristics                144
Table 4.3:   Percentage Distribution of Respondents by Rate of Receiving
Marketing Message              159
Table 4.4:    Percentage Distribution of Respondents by Preference Density to
Marketing Message              161
Table 4.5:   Frequency Distribution of Respondents by Behavioural
Response to Marketing Message          167
Table 4.6:   Percentage Distribution of Respondents Behavioural Response to
Marketing Messages by Gender          168
Table 4.7:   Percentage Distribution of Respondents Behavioural Response to
Marketing Messages by Age            169
Table 4.8:        Percentage Distribution of Respondents Behavioural Response to
Marketing Messages by   Educational Qualification      170
Table 4.9:        Percentage Distribution of Respondents Behavioural Response to
Marketing Messages by Occupation                  171
Table 4.10:   Percentage Distribution of Responses to Promotional
SMS Messages                                            172
Table 4.11:  Percentage Distribution of Responses to Relational
SMS Messages                         173
Table 4.12:  Percentage Distribution of Responses to Personalization
of SMS Messages                         173
Table 4.13:  Percentage Distribution of Responses to Interactivity
of SMS Message                        174
Table 4.14:  Percentage Distribution of Responses to Frequency
of SMS Message                         175
Table 4.15:  Percentage Distribution of Responses to Brand Awareness              175
Table 4.16:  Percentage Distribution of Responses to Intention/Actual
Purchase of Mobile Products  176
Table 4.17:  Percentage Distribution of Responses to Loyalty      177
Table 4.18:  Percentage Distribution of Responses to Consumer Attitude
to Mobile Marketing                                   177
Table 4.19:  Percentage Distribution of Responses to Innovative Factor    178
Table 4.20:      Percentage Distribution of Responses to Existing Knowledge of
Mobile Technology (EK) Factor          178
Table 4.21:      Percentage Distribution of Responses to Attitude towards
Advertising                179
Table 4.22:      Percentage Distribution of Responses to Privacy and
Permission Factor              179
Table 4.23:      Percentage Distribution of Responses to Perceived
Credibility Factor                                                                               180
Table 4.24   Percentage Distribution of Responses to Perceived Risk Factor  180
Table 4.25:      Percentage Distribution of Responses to Trust Factor              181
Table 4.26:  Percentage Distribution of Responses to Perceived value Factor  181
Table 4.27:   Percentage Distribution of Responses to Social Norms Factor    182
Table 4.28:      Percentage Distribution of Responses to Consumer Satisfaction  183
Table 4.29:  Respondents View on Challenges in Mobile Marketing
Practitioners                183
Table 4.30:  Respondents’ Opinion on how Organizations using
Mobile Marketing can Improve on their services      184
Table 4.31:  Descriptive Analysis of Promotional Variable      185
Table 4.32:      Descriptive Analysis of Relational Variable  186
Table 4.33:  Descriptive Analysis of Personalization Variable      186
Table 4.34:  Descriptive Analysis of Interactivity Variable      187
Table 4.35:  Descriptive Analysis of Frequency Variable                                     187
Table 4.36:      Descriptive Analysis of Awareness Variable        188
Table 4.37:      Descriptive Analysis of purchase intention and Actual purchase   188
Table 4.38:  Descriptive Analysis of Loyalty Variable        189
Table 4.39:      Descriptive Analysis for Innovativeness        190
Table 4.40:  Descriptive Analysis for Existing knowledge of Mobile
Technology      190
Table 4.4:        Descriptive Analysis for Attitude towards advertising    190
Table 4.42:      Descriptive Analysis for Privacy and Permission      191
Table 4.43:      Descriptive Analysis for Credibility                  192
Table 4.44:      Descriptive Analysis for Perceived Risk        192
Table 4.45:      Descriptive Analysis for Trust                                           192
Table 4.46:      Descriptive Analysis for Perceived Value                    193
Table 4.47:      Descriptive Analysis for Social Norms                              193
Table 4.48:      Descriptive Analysis for Consumer Attitude towards
Mobile Marketing                                             194
Table 4.49:      Goodness of Fit Measures of the Research Models      196
Table 4.50ai:   Reliability, Average Variance Extracted (AVE) and Correlation
Among Constructs in the model          197
Table 4.51bi:    Factor Loadings of items included in the Model      198
Table 4.52ci:   Average Variance Extracted (VE) and Squared Multiple
Correlations (SMC) of Items in the Model        198
Table 4.53a:     Regression Weights for test of Hypothesis 1        202
Table 4.53b:    Standardized Path Coefficients for test of Hypothesis 1    202
Table 4.53c:   Squared Multiple Correlations for test of Hypothesis 1    203
Table 4.54a:  Regression Weights for test of Hypothesis 2        205
Table 4.54b:   Standardized Path Coefficient for test of Hypothesis 2    205
Table 4.55a:  Regression Weights for test of Hypothesis 3        206
Table 4.55b:   Standardized Path Coefficients for test of Hypothesis 3    207
Table 4.55c:   Squared Multiple Correlations for test of Hypothesis 3    207
Table 4.56a:   Regression Weights for test of Hypothesis 4        209
Table 4.56b:   Standardized Path Coefficients for test of Hypothesis 4    209
Table 4.56c:   Squared Multiple Correlations for test of Hypothesis 4    209
Table 4.57:   Summary of Test of Hypotheses Findings        210

LIST OF FIGURES 
Figure 2.1:   Mobile Advertising Value Chain          32
Figure 2.2:  Framework of Mobile Marketing Environment      41
Figure 3.1   Stages of Sampling Technique          125
Figure 4.1  Test of Hypothesis 1              203
Figure 4.2  Test of hypothesis 2              205
Figure 4.3  Contribution of Marketing Messages to Purchase Behaviour  207

LIST OF CHARTS 
Chart 2.1:  The Learning Curve              60
Chart 4.1   Frequency distribution of Respondents by Mobile phone Usage  146
Chart 4.2   SMS Phone Usage by Gender            147
Chart 4.3   Voice calls Phone Usage by Gender          148
Chart 4.4   MMS Phone Usage by Gender          148
Chart 4.5    Videos Phone Usage by Gender          149
Chart 4.6    Usage of Mobile Phone News Service by Gender      149
Chart 4.7   Sports Phone Usage by Gender          150
Chart 4.8    Facebook Phone Usage by Gender          150
Chart 4.9   Mobile Web browsing by Gender          151
Chart 4.10   Mobile Phone Chatting by Gender          151
Chart 4.11   Mobile E-mail by Gender            152
Chart 4.12   Voice calls Phone Usage by Age group        153
Chart 4.13   SMS Phone Usage by Age group          153
Chart 4.14   MMS Phone Usage by Age group          154
Chart 4.15  Mobile Phone News Usage by Age Group        155
Chart 4.16   Mobile Chatting News Usage by Age Group        155
Chart 4.17   SMS Phone Usage by Occupation            156
Chart 4.18   Mobile Web browsing Usage by Occupation        157
Chart 4.19   SMS Service Usage by Educational Background      158
Chart 4.20   Respondents Preference Density for Marketing Messages
Ages (15-24)                163
Chart 4.21   Respondents Preference Density for Marketing Messages by
Ages (25-34)                          164
Chart 4.22  Male Respondents Preference Density for Marketing Messages   165
Chart 4.23   Female Respondents Preference Density for Marketing Messages  166
LIST OF MODELS
Model 1.1:   Research Hypotheses Model            10
Model 2.1:  The Consumer Behaviour Model          50
Model 2.3:      The Perceptual Process            64
Model 2.4        Stages in Consumer Decision-Making Process      69
Model 2.5   The Search for Information            70
Model 2.6   Security Risks in the Business Chain         85
Model 2.7    Brackett, and Carr (2001) Model of Consumer attitude
toward Web Advertising            89
Model 2.8  Tsang et al., (2004) Model of Consumer attitude
toward Mobile Marketing            89
Model 2.9    Haghirian and Madlberger (2005) Model of Consumer Attitude
Toward Advertising via Mobile Devices        90
Model 2.10   XU Model of Factors Affecting Attitude and Intention
toward Mobile  Advertising            91
Model 2.11   Theory of Reasoned Action             94
Model 2.12   Theory of Planned Behaviour            95
Model 2.13  Technology Acceptance Model          96
Model 4.2   Research Model of the Study            195

LIST OF APPENDICES 
Appendix 1  Research Questionnaire            274
Appendix II  Reliability Analysis and Inter-item Correlation of
Questionnaire Items              287
Appendix III  Principal Component Analysis of Variables        292
Appendix IV  Measurement and Structural Model for Marketing
Messages and Purchase Behaviour Items         303
Appendix V  Measurement and Structural Model for Factors Influencing
Consumer Attitude towards Marketing Messages      308

LIST OF ABBREVIATIONS  
SMS    =  Short Message Service
MMS    =  Multimedia Messaging Service
GSM    =  Global System for Mobile Communications
GPS    =  Global Positioning System
MMA    =  Mobile Marketing Association
WAA    =  Wireless Advertising Association
PDA    =  Personal Digital Assistant
IMC    =  Integrated Marketing Communication
GPRS    =   General Packet Radio Service
MM    =  Mobile Marketing