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
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.
