INFLUENCE OF MOBILE MARKETING ON CONSUMER PURCHASE BEHAVIOUR IN ORGANIZED INSTITUTIONS IN LAGOS STATE, NIGERIA

By

AKINBODE MOSUNMOLA OLUWAFUNMILAYO (CU021120010)

Presented To

Department of Business Administration and Management

 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
11  Background to the Study              1
12  Statement of Research Problem            3
13  Research Questions                5
14  Research Objectives                6
15  Research Hypotheses                6
16  Significance of the Study              6
17  Scope of Study                7
18  Outline of Chapters                8
19  Operationalization of Research Variables          9
110  Definition of Terms                11

CHAPTER TWO:
LITERATURE REVIEW
21  Conceptual Framework              12
  211  The Nigerian Telecommunication Industry        13
            212    What is Mobile Marketing            15
213     Development of Mobile Marketing          17
  214  Characteristics of the Mobile Phone          19
  215  Mobile Marketing Tools            20
  216  Short Message Service as a Mobile Marketing      21
  217  Drivers of Mobile Marketing            22
  218  Benefits of Mobile Marketing            22
  219  Types of Mobile Marketing            26
  2110  Forms of Mobile Marketing Tools                    27
  2111  Fundamental Issues in Mobile Marketing        33
2112  Marketing Strategy in Mobile Marketing        39
  2113  Application of Marketing Mix Concept in Mobile Marketing  44
  2114  Consumer Behaviour              50
  2115  Marketing Communication Effects          73
  2116  Factors Influencing Attitude towards Mobile Marketing    76                           
2117  Behavioural Intention             86
  2118  Relationship between Attitude, Intention and Purchase  
Behaviour                 87
  2119  Consumer Attitude Models in Mobile Marketing                     88                                  
22  Theoretical Framework                       93
2 21  Theories of Mobile Service Adoption         93
  222  Theories of Consumer Behaviour                   100
23  Empirical Framework                109
24  Gap in Literature                119

CHAPTER THREE:
METHODOLOGY
31       Study Area      122
32  Research Design                         123
33  Population of the Study                       123
34  Sample Size Determination                 124
35  Sampling Technique                                124
36  Sampling Frame                         127
37  Sources of Data                         127
38  Data Collection Method and Procedure          128
39  Research Instrument and Design                     129
310  Validity of Research Instrument                     136
311  Reliability of Research Instrument            138
312     Method of Data Analysis              139
 
CHAPTER FOUR:
DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS
41 Presentation of Data                         142
411  Response Rate                                 142
42  Data Analysis and Interpretation                             144   
421   Analysis of  Demographic Data                   144
422  Descriptive Analysis of   Data on Mobile Phone usage             147
423  Respondents Rate of Receiving Mobile Marketing Messages         158
424   Respondents Preference Density for Mobile Marketing Messages 161
425   Respondents  Behavioural Response to Marketing Messages     167
426  Descriptive Analysis of data on Relevant Variables               172
422  Collation and Analysis of  Open-ended Questions               183
435  Descriptive Analysis of Variables                 185
43  Validation of Research Model and Testing of Hypothesis    195   
431  Test of Hypothesis One          202
432  Test of Hypothesis Two          205
433  Test of Hypothesis Three          206
434  Test of Hypothesis Four          208
      435     Discussion of Results           210

CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATIONS
511  Summary of Work              215
52       Discussion of  Findings            216
521  Summary of Theoretical Findings        216
522  Summary of Empirical Findings        218
5 3  Conclusion                222
541  Implication of Findings            224
541    Implication for Practice          224   
542  Policy Makers and Government        226   
55  Recommendations              227
56  Limitations of the Study            228
57  Suggestions for Further Research          230                  
58  Contribution to Knowledge            232
 
REFERENCES                234

LIST OF TABLES
Table 21:  Legal Consideration for Mobile Marketing        38
Table 22:  Comparison of Selected Age Cohorts across           
Marketing-Related Issues            54
Table 23:  Reference Group influence on Consumption       80
Table 24:  Hierarchy of Effects of Different Involvement Levels    82
Figure 25:   Summary of research findings on consumer attitude  
towards mobile marketing            117
Table 31:   Selected Sample of the Study           126
Table 32:   Questionnaire Administration            129
Table 33:   Measurement of Variables - Part 1- Section A      131
Table 34:    Measurement of Variables - Section B        131          
Table 35:  Measurement of Variables - Part 2                                     132
Table 36:  Source of Items Used in the Questionnaire                     134
Table 41:  Frequency Distribution by number of Questionnaires   
Administered and Retrieved according to Organisations    143
Table 42:  Frequency Distribution of Respondents by Socio- demographic
Characteristics                144
Table 43:   Percentage Distribution of Respondents by Rate of Receiving  
Marketing Message              159
Table 44:    Percentage Distribution of Respondents by Preference Density to
Marketing Message              161
Table 45:   Frequency Distribution of Respondents by Behavioural
 Response to Marketing Message          167
Table 46:   Percentage Distribution of Respondents Behavioural Response to
Marketing Messages by Gender          168
Table 47:   Percentage Distribution of Respondents Behavioural Response to
Marketing Messages by Age            169
Table 48:        Percentage Distribution of Respondents Behavioural Response to
Marketing Messages by   Educational Qualification      170
Table 49:        Percentage Distribution of Respondents Behavioural Response to
Marketing Messages by Occupation                  171
Table 410:   Percentage Distribution of Responses to Promotional  
    SMS Messages                                            172                      
Table 411:  Percentage Distribution of Responses to Relational  
    SMS Messages                         173
Table 412:  Percentage Distribution of Responses to Personalization
 of SMS Messages                         173
Table 413:  Percentage Distribution of Responses to Interactivity  
of SMS Message                        174
Table 414:  Percentage Distribution of Responses to Frequency  
of SMS Message                         175
Table 415:  Percentage Distribution of Responses to Brand Awareness              175
Table 416:  Percentage Distribution of Responses to Intention/Actual  
    Purchase of Mobile Products  176                        
Table 417:  Percentage Distribution of Responses to Loyalty      177
Table 418:  Percentage Distribution of Responses to Consumer Attitude
to Mobile Marketing                                   177
Table 419:  Percentage Distribution of Responses to Innovative Factor    178
Table 420:      Percentage Distribution of Responses to Existing Knowledge of
Mobile Technology (EK) Factor          178
Table 421:      Percentage Distribution of Responses to Attitude towards
 Advertising                179                         
Table 422:      Percentage Distribution of Responses to Privacy and  
Permission Factor              179                      
Table 423:      Percentage Distribution of Responses to Perceived  
                        Credibility Factor                                                                               180
Table 424   Percentage Distribution of Responses to Perceived Risk Factor  180                         
Table 425:      Percentage Distribution of Responses to Trust Factor              181
Table 426:  Percentage Distribution of Responses to Perceived value Factor  181
Table 427:   Percentage Distribution of Responses to Social Norms Factor    182
Table 428:      Percentage Distribution of Responses to Consumer Satisfaction  183
Table 429:  Respondents View on Challenges in Mobile Marketing  
  Practitioners                183
Table 430:  Respondents’ Opinion on how Organizations using  
Mobile Marketing can Improve on their services      184
Table 431:  Descriptive Analysis of Promotional Variable      185
Table 432:      Descriptive Analysis of Relational Variable  186    
Table 433:  Descriptive Analysis of Personalization Variable      186
Table 434:  Descriptive Analysis of Interactivity Variable      187
Table 435:  Descriptive Analysis of Frequency Variable                                     187          
Table 436:      Descriptive Analysis of Awareness Variable        188
Table 437:      Descriptive Analysis of purchase intention and Actual purchase   188
Table 438:  Descriptive Analysis of Loyalty Variable        189
Table 439:      Descriptive Analysis for Innovativeness        190
Table 440:  Descriptive Analysis for Existing knowledge of Mobile  
                        Technology      190
Table 44:        Descriptive Analysis for Attitude towards advertising    190
Table 442:      Descriptive Analysis for Privacy and Permission      191
Table 443:      Descriptive Analysis for Credibility                  192
Table 444:      Descriptive Analysis for Perceived Risk        192
Table 445:      Descriptive Analysis for Trust                                           192
Table 446:      Descriptive Analysis for Perceived Value                    193
Table 447:      Descriptive Analysis for Social Norms                              193
Table 448:      Descriptive Analysis for Consumer Attitude towards  
Mobile Marketing                                             194
Table 449:      Goodness of Fit Measures of the Research Models      196
Table 450ai:   Reliability, Average Variance Extracted (AVE) and Correlation  
   Among Constructs in the model          197
Table 451bi:    Factor Loadings of items included in the Model      198
Table 452ci:   Average Variance Extracted (VE) and Squared Multiple  
 Correlations (SMC) of Items in the Model        198
Table 453a:     Regression Weights for test of Hypothesis 1        202
Table 453b:    Standardized Path Coefficients for test of Hypothesis 1    202
Table 453c:   Squared Multiple Correlations for test of Hypothesis 1    203
Table 454a:  Regression Weights for test of Hypothesis 2        205
Table 454b:   Standardized Path Coefficient for test of Hypothesis 2    205
Table 455a:  Regression Weights for test of Hypothesis 3        206
Table 455b:   Standardized Path Coefficients for test of Hypothesis 3    207
Table 455c:   Squared Multiple Correlations for test of Hypothesis 3    207
Table 456a:   Regression Weights for test of Hypothesis 4        209
Table 456b:   Standardized Path Coefficients for test of Hypothesis 4    209
Table 456c:   Squared Multiple Correlations for test of Hypothesis 4    209
Table 457:   Summary of Test of Hypotheses Findings        210

LIST OF FIGURES
Figure 21:   Mobile Advertising Value Chain          32
Figure 22:  Framework of Mobile Marketing Environment      41
Figure 31   Stages of Sampling Technique          125
Figure 41  Test of Hypothesis 1              203
Figure 42  Test of hypothesis 2              205
Figure 43  Contribution of Marketing Messages to Purchase Behaviour  207

LIST OF CHARTS
Chart 21:  The Learning Curve              60
Chart 41   Frequency distribution of Respondents by Mobile phone Usage  146
Chart 42   SMS Phone Usage by Gender            147
Chart 43   Voice calls Phone Usage by Gender          148
Chart 44   MMS Phone Usage by Gender          148
Chart 45    Videos Phone Usage by Gender          149
Chart 46    Usage of Mobile Phone News Service by Gender      149
Chart 47   Sports Phone Usage by Gender          150
Chart 48    Facebook Phone Usage by Gender          150
Chart 49   Mobile Web browsing by Gender          151
Chart 410   Mobile Phone Chatting by Gender          151
Chart 411   Mobile E-mail by Gender            152
Chart 412   Voice calls Phone Usage by Age group        153
Chart 413   SMS Phone Usage by Age group          153
Chart 414   MMS Phone Usage by Age group          154
Chart 415  Mobile Phone News Usage by Age Group        155
Chart 416   Mobile Chatting News Usage by Age Group        155
Chart 417   SMS Phone Usage by Occupation            156
Chart 418   Mobile Web browsing Usage by Occupation        157
Chart 419   SMS Service Usage by Educational Background      158
Chart 420   Respondents Preference Density for Marketing Messages   
Ages (15-24)                163
Chart 421   Respondents Preference Density for Marketing Messages by
Ages (25-34)                          164
Chart 422  Male Respondents Preference Density for Marketing Messages   165
Chart 423   Female Respondents Preference Density for Marketing Messages  166
LIST OF MODELS
Model 11:   Research Hypotheses Model            10
Model 21:  The Consumer Behaviour Model          50
Model 23:      The Perceptual Process            64
Model 24        Stages in Consumer Decision-Making Process      69
Model 25   The Search for Information            70
Model 26   Security Risks in the Business Chain         85
Model 27    Brackett, and Carr (2001) Model of Consumer attitude    
                         toward Web Advertising            89
Model 28  Tsang et al, (2004) Model of Consumer attitude  
                         toward Mobile Marketing            89
Model 29    Haghirian and Madlberger (2005) Model of Consumer Attitude  
Toward Advertising via Mobile Devices        90
Model 210   XU Model of Factors Affecting Attitude and Intention  
toward Mobile  Advertising            91
Model 211   Theory of Reasoned Action             94
Model 212   Theory of Planned Behaviour            95
Model 213  Technology Acceptance Model          96
Model 42   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