Adoption of mobile advertising in Denmark

Transcription

1 Adoption of mobile advertising in Denmark Investigating psychological factors affecting consumers intention to adopt mobile advertising from MNO s Master Thesis by Peter Budde Smidt Christensen Supervisor Bjarne Taulo Sørensen Department of Business Administration Business and Social Sciences, Aarhus University June 2013, (Characters )

2 Abstract Purpose: Higher competition within the mobile communication industry has forced the mobile network operators to find alternative sources of revenue. Blyk in UK tries to monetise the relationship between mobile network operators and consumers using mobile advertising. Currently no company like Blyk is operating in Denmark and investigations of mobile advertising has been limited in this area. This thesis will therefore provide mobile network operators a small piece of the puzzle concerning their implementation decision. The purpose of this thesis is to clarify the psychological factors affecting mobile advertising adoption in Denmark. Method: This thesis is a confirmatory investigation, based on a literature review of psychological factors affecting mobile advertising adoption intention, in the context of theory of planned behavior. A pretest of Danish consumers was conducted through Facebook (N=133) and the main study was distributed to approximately 4700 bachelor and master students at ASB (N=231), both using convenience sampling and a online questionnaire. Findings: The thesis found significant positive relationships for behavioral intentions antecedents with the following importance: attitude toward mobile advertising, subjective norm and perceived behavioral control, explaining 73.2% of behavioral intention variance. In addition the ranking for antecedents of attitude toward mobile advertising was found be entertainment, informativeness, credibility, irritation and personalisation explaining 73.5% of attitude toward mobile advertisings variance. It was recommended that subjective norm and perceived behavioral control should be investigated further to provide a better understanding of these constructs. I

3 Table of Contents Abstract Table of Contents List of Figures List of Tables List of Acronyms I II V VI VII 1 Introduction Problem statement Purpose Research approach Delimitations Defining mobile advertising Structure of thesis Literature Review Research directions for mobile advertising Adoption theory Uses and gratification theory Domestication Summing up Basic theories of adoption Summing up Attitude Consumer general attitude toward advertising Entertainment Informativeness II

4 TABLE OF CONTENTS III Irritation Personalisation Summing up Subjective norm Summing up Perceived behavioral control Self efficacy Trust Perceived risk Summing up Market segmentation Model development and hypotheses Methodology Research Method Collection method Survey construction and development Data Analysis Pretest study Missing data Normality and outliers Covariance based or Variance based SEM Reliability and validity Main study Missing data and outliers Normality and outliers Reliability and validity Variance explanation and predictive relevance Hypotheses Testing Segmentation Describing the segments Discussion Correlations with behavioral intention Antecedents of behavioral intention Relationships for attitude Subjective norm

5 TABLE OF CONTENTS IV Relationships with perceived behavioral control Segmentation Limitations of the study Practical implications for MNO s Conclusion Further research References 61 List of Appendices 69

6 List of Figures 2.1 Theory of planned behavior model Illustration of the conceptual model B.1 Questionnaire print out D.2 Graph of cluster centers for 4 cluster solution D.3 Graph of cluster centers for 3 cluster solution V

7 List of Tables 2.1 Overview of the hypotheses being investigated Reliability measures and latent variable cross loadings for pretest Reliability measures and latent variable cross loadings for main study Hypotheses test for main study Overview of questionnaire items and sources Demographic descriptives of pretest Descriptive statistics for pretest data Cross Loadings for pretest data Outer Loadings for pretest data Demographic descriptives of main study Descriptive statistics for main study data Outer loadings for main study data Cross Loadings for main study data Multicollinarity test of VS items Agglomeration schedule average linkage Agglomeration schedule centroid Main study ANOVA four clusters solution Main study split 1. halve multicollinarity test Main study split 2. halve multicollinarity test Agglomeration schedule 1. halve sample Agglomeration schedule 2. halve sample Test for mean difference between clusters Test for cluster means difference with segment 3 excluded Cluster means for experience with mobile advertising and BI items ANOVA table of cluster means for attitude VI

8 List of Acronyms MNO Mobile Network Operators TRA Theory of Reasoned Action TPB Theory of Planned Behavior TAM Technology Acceptance Model DTPB Decomposed Theory of Planned Behavior UTAUT Unified Theory of Acceptance and Use of Technology EM Expectation Maximisation VB-SEM Variance Based Structural Equation Model CB-SEM Covariance Based Structural Equation Model AVE Average Variance Extracted VII

9 CHAPTER 1 Introduction It has been suggested that for mobile advertising to be effective, it has to be permission based and handle the problem with intrusion of privacy. By addressing this argument another one arises that the retailer is only able to send commercials to its current customers, because they need their permission (Shankar et al., 2010). However is it possible to acquire new customers using mobile advertising? The marketing law in Denmark 6 states that it is not legal for a retailer to have unsolicited contact with the consumer. Consequently this thesis will be based on the consumer giving permission to an intermediary company. Research have suggested that mobile advertising should be used to deliver advertisement that are different from traditional ones, because traditional marketing channel is designed for a certain target group, whereas mobile advertising are targeted to an individual (Salo and Tähtinen, 2005). Targeting prospects at the right time and place actually implies minimum perceived effort for the prospect in buying the advertised product (Drossos et al., 2007). A tailored and personalised service could therefore reduce the bounded rationality, by easing the burden of information processing and only send the information that could be of interest to the consumer (Watson et al., 2002). It has been suggested that the mobile phone is less intrusive than traditional marketing, because consumers can choose when and if they would read a message, which makes it available in dead time (eg. While traveling, looking for entertainment) (Rettie et al., 2005). Since the majority of people are in possession of their mobile phone all day long, mobile advertising can reach them almost anytime and anywhere. The 1

10 CHAPTER 1. INTRODUCTION 2 mobile phone extends the traditional media model of time-space and increases the accessibility, frequency and speed of communication. Through the mobile phone, timely ads can be delivered to consumers based on their social context, individual preferences, time and location which are ideal for this. In addition, consumers may find it convenient only to use one channel for receiving advertising (Merisavo et al., 2007) (Haghirian and Madlberger, 2005). Mobile phones are argued to have tremendous potential for delivering advertising, because of its high response rates and ubiquity (Muk, 2007). The importance of mobile marketing has increased, because retailers are now given the ability to enter the consumers environment through the mobile device. Because of the mobile phones personal nature, it can act as a gateway to more intimate relationship between the consumer and the retailer. However this medium invite intrusion of privacy from unscrupulous marketers (Shankar et al., 2010). The mobile phone represent one of the few remaining unspoiled personal spaces they can use to communicate and socialise while still maintaining control. Consequently this may lead consumers to be more unreceptive towards mobile advertising infiltrating this space (Bruner and Kumar, 2007). In contrast, the personal nature of mobile advertising can also lead towards higher involvement from consumers that do not perceive this intrusion (Salo and Tähtinen, 2005). Targeting individuals on mobile phones therefore raises more issues of privacy intrusion compared to traditional marketing where recipients are anonymous. Denmark is among the most advanced European countries in mobile communication and represents a very competitive market with extensive price competition. This has forced Mobile Network Operators (MNO) to find alternatives sources of revenue (Knutson et al., 2005). Research has indicated that MNO s can enhance their profit by increasing utilization of network capacity and sell subscribers information (Mirbagheri, 2010). A study recommended that MNO s or another mediator acted as filters when sending mobile advertising to consumers (Bamba and Barnes, 2007). This thesis focuses on MNO s, because they already have to get a signed subscription and therefore assumed to be in a good position to acquire permission for sending advertisement. Blyk in UK works with MNO s to monetise their relationship with subscribers by mediating advertising from companies. They currently have 4 million subscribers that receive free minutes and text in return of diverse commercials. This further

11 CHAPTER 1. INTRODUCTION 3 emphasises the potential for MNO s to gain a new revenue stream, however it remains to be seen if Blyk is profitable in the long run. 1 A company called Wooha tried to be an intermediary sending SMS, MMS and video advertising to consumers in Denmark from retail companies. Consumers would receive 1 DKr for each received advertisement, giving them a financial incitement to join the service. Even though they gained approximately consumers to the service, they dissolved the company after 1 year, due to low interest from advertisers (Reinhardt, 2009) (See appendix A for Wooha mail correspondence). Research suggested that the complimentary nature of SMS advertising is still in the early stages of commercial development and lacks the added value of wireless services, because its a classic case of technology push (Kleijnen et al., 2004). This statement is about 9 years old, but could still hold some truth, since no intermediary company like Wooha has been successfully established in Denmark. Consumers may have been attracted by the monetary benefits, however this doesn t exclude potential non-monetary benefits affecting consumers adoption of mobile advertising. Non-monetary benefits or cost is regarded as psychological factors in this thesis and defined as attitudes, cognitive or other affective characteristic of an individual that either act as a motive or barrier. These factors therefore have a positive or negative impact on behavior evaluation and actual behavior. 1.1 Problem statement Based on the apparent advantages for MNO s and consumer mentioned above, leads to the question: Why have the MNO s not already implemented a mobile phone advertisement service. Using the Wooha business model by paying the consumers for mobile advertising, MNO s would be able to reduce consumers mobile subscription fee, and attain their revenue from retailers instead. Assuming that mobile advertising is profitable, consumers subscription fee could get reduced to the threshold, where the price parameter becomes superfluous, which might affect the competition parameters in the mobile communication industry. In addition consumers would benefit from the tailored service reducing their bounded rationality and receiving most of their needed advertisements through one channel. Adjusting the service to the consumers preferences and avoiding the pitfalls would 1 retrieved December 2012

12 CHAPTER 1. INTRODUCTION 4 therefore be a step toward implementing the mobile advertising service in MNO s. This thesis will therefore not disclose if the service would be a profitable business, but focus on the potential benefits and cost consumer associate with receiving mobile advertising which could be valuable for improving the advertising service. The emphasis will therefore be put on what either inhibit or enable adoption of mobile advertising free of charge in Denmark to meet the consumers requirements. It is expected that people are willing to receive mobile advertising if they can decide which shops, the quantity or type of product the advertising is about, even though it still is considered a niche. 1.2 Purpose This thesis will fulfil the shortage of research investigating danish consumer adoption intention of mobile advertising and therefore contributes to MNO s understanding of a danish mobile advertising service. Consequently this thesis seeks to answer the following question: "What psychological factors influence danish consumers adoption intention of mobile advertising?" This investigation is based on Theory of Planned Behavior to clarify the link between beliefs and behavioral intention and therefore done in the context of attitude, subjective norm and perceived behavioral control. In addition, price sensitivity will be investigated for its ability to identify danish consumers intending to adopt mobile advertising. The following research questions are therefore formulated: 1. How does attitude toward mobile advertising affect adoption intention in Denmark? 2. How does subjective norm affect consumers adoption intention of mobile advertising in Denmark? 3. How does perceived behavioral control affect mobile advertising adoption intention in Denmark? 4. Can price sensitivity significantly segment Danish consumers and their adoption intention of mobile advertising? Based on these questions the thesis will identify the most important psychological factors that either motivate or act as barriers for adopting mobile advertising in Denmark. Marketers will therefore be able to understand the psychological antecedents

13 CHAPTER 1. INTRODUCTION 5 of consumers adoption intention, making them capable to adjust the service according to consumers preferences. The implementation of mobile advertising by MNO s will still be dependent on other research e.g. examining companies willingness to advertise through this medium and a financial estimation of the potential. This will not be included in this thesis in addition to estimation of market size and the prize for each SMS that might help the financial evaluation. 1.3 Research approach This thesis is based on the functional paradigm, where the concepts explanation and description is at the center. Compared to the interpretative paradigm, the functional has a more objective perception of reality, where the whole is equal to the sum of its parts. The decision is based on ontological, epistemological and methodological questions, where a positivism perspective is taken. The positivism paradigm investigates the reality non-interactive, where the hypothesis becomes subject for verification or falsification (Heldbjerg, 2006). In this context the analytical approach is chosen as the working paradigm, which assumes everything is quantifiable and can be described independent of the investigator with a causal approach. The analytical approach has been criticised for simplifying reality too much and isolating variables from their meaning context. (Heldbjerg, 2006). The choice of this approach, consequently limits the potential value of the thesis, because it does not investigate the full context of mobile advertising. Its therefore possible that other background or mediating factors might affect the causal relations found in this thesis. The thesis is based on a confirmatory design where the primary data will be provided through a online questionnaire and the secondary data consist of scientific articles and books with focus on mobile advertising. This secondary literature is centered around adoption and mobile advertising, with the theory of planned behavior being the foundation of the conceptual model. The hypothesis is derived from prior research, which makes the results more meaningful, however makes it difficult to make new discoveries. (Hair et al., 2006).

14 CHAPTER 1. INTRODUCTION Delimitations The investigation is limited to consumers in Denmark and exploring their psychological factors affecting mobile advertising adoption. The research used in this thesis is produced in other countries, which might cause some inaccuracies, because the culture is unlike Denmark and results of concepts such as subjective norms and entertainment might differ. However, due to the limited financial and time resources, it is beyond the scope of this thesis to distinguish, which countries are different from Denmark and thereby how it might affect the variables. Validating the results from this thesis with comparable studies might therefore not be optimal for constructs sensitive to cultural differences. This thesis will only investigate intention to behavior rather than actual behavior, because no mobile network operator was found with this service in Denmark. Instead behavioral intention will be investigated, which does not always lead to actual behavior and consequently limits this thesis ability to determine market size and adoption of mobile advertising. According to Theory of Planned Behavior (TPB), behavioral intention are motivational factors that capture, how much effort a person is willing to make in order to perform a behavior and suggest that behavioral intention is the most influential predictor of behavior. This is moderated by the effect of perceived behavioral control, where favorable intentions produces the behavior only when perceived behavioral control is strong (Ajzen, 1991). The potential of mobile advertising in Denmark will therefore not be discussed, based on this limitation. The thesis will focus on the usage related behavior, which involves day-to-day conscious decisions. In this context habits could be used as a reflection of all factors determining the behavior and to indicate the ceiling for the study s predictive stability and reliability (Ajzen, 1991). Habits will not be considered due to consumers limited expected experience with mobile advertising, and thereby their habits. In a greater framework encompassing the fundamental requirements for a service platform to develop, it is argued that the acceptance model should be usable during the whole product life cycle (Amberg et al., 2004). Due to the limited financial and time resource the thesis will not discuss the product life cycle. Determining the future potential of the service will therefore not be possible based on this thesis. Considerations of monetary incentive to adopt mobile advertising, could have been

15 CHAPTER 1. INTRODUCTION 7 of interest for MNO s and has been found to increase adoption (Salo and Tähtinen, 2005)(Drossos et al., 2007) (Hanley et al., 2006)(Park et al., 2008)(Saadeghvaziri and Hosseini, 2011). In addition investigating mobile advertising effectiveness, efficiency and defining the best type of mobile advertisement could provide valuable information for MNO s. Due to limited time and financial resources these will not be discussed in this paper. 1.5 Defining mobile advertising This thesis makes a clear distinction between mobile marketing and mobile advertising. Mobile marketing is a much broader concept that can be divided into mobile advertising and customer relationship management. Mobile advertising delivers advertisement to the mobile phone, whereas customer relationship management refers to different forms of informative messages from companies, such as notifying the customer of package delivery(tähtinen, 2006). The distinction between advertising and customer relationship management can in some instances be somewhat blurred, because an advertising messages can be some form of informative message. This thesis focuses on mobile advertising, where advertising will be referred to as the method of marketing that provides information about a product, service or the business itself. The difference between permission based and traditional advertising is that messages about specific products, services or content are sent only to individuals, who have explicitly indicated their willingness to receive the message (Tsang et al., 2004). In addition there is a difference in media context, which influences the value of an advertisement for the consumer e.g. newspapers are perceived to be more informative, reliable and believable (Wang et al., 2002). How the mobile phone is perceived by consumers is not within the scope of this thesis, but it is interesting to note that this perception might affect advertising effectiveness. A concept such as location-based advertising is dependent on where the recipients device are, whereas mobile advertising is every ad sent to the mobile phone (Bruner and Kumar, 2007). In this thesis mobile advertising will be regarded as advertising sent via SMS and MMS, excluding technologies such as banners (since they are assumed to be interruptive) and Bluetooth (which requires transmitters nearby). MMS are usually a combination of image, sound and animation, whereas SMS is just text. (Park et al., 2008) Mobile applications will not be investigated, because they are

16 CHAPTER 1. INTRODUCTION 8 assumed to have significantly less perceived risk compared to SMS and MMS. The reasoning for this is based on consumers exit options, where consumers provide their phone number in the case of MMS and SMS, making them dependent on the intermediary handling of their information. Regarding mobile applications the consumers are able to delete the app, thereby cutting of the line of communication, in contrast to the other case, where consumers have to inform their entire network of a phone number change. 1.6 Structure of thesis This thesis is divided into six chapters, where the first is the current introduction and purpose of the thesis with its accompanied research questions. In addition, a definition of mobile advertising combined with other important concepts are determined to create a thorough understanding of the subject. The second chapter consists of a literature review, where the theoretical underpinnings of the study will be presented. This will include contributions from the different research directions, a discussion of the model used and a complementing presentation of important psychological factors that affect mobile advertising adoption intention. The third chapter of this thesis covers a detailed description of the methodology used. It explains the research approach, including data collection and survey construction. The fourth chapter presents the data and explains the analysis, which will be discussed in chapter five. The sixth chapter presents managerial implications, limitations, recommendations for further research as well as the concluding remarks of the study.

17 CHAPTER 2 Literature Review This chapter offers a thorough review of past literature within the mobile advertising context. It outlines the considerations regarding choice of research directions and adoption model, in addition to a investigation of former literature based on theory of planned behavior and value seekers. The results are put in the context of the conceptual model used in this thesis. 2.1 Research directions for mobile advertising To understand and explain consumers intentions to use mobile advertising, a multifaceted view of the domain that jointly accommodates social, economic and psychological perspectives is called for (Konana and Balasubramanian, 2005). The thesis will therefore combine theories from organisational context and theories that explain technology usages in everyday life, under the headlines of adoption research, uses and gratification theory and domestication research. This will give a more holistic understanding of the antecedents of consumer intention to adopt mobile advertising. The combination of traditional Information and Communication Technology theories and behavioral studies of mobile service adoption has been found to more accurately explain the adoption of mobile services (Pedersen, 2005). Diffusion theory is based on the aggregate level of analysis, which is inadequate when investigating the psychological factors affecting mobile advertising adoption. The strength of this direction is to identify user segments or other aggregates communities of users and characterise them along the diffusion process. This direction lacks a focus on adopters vs non adopters and pay limited attention to 9

18 CHAPTER 2. LITERATURE REVIEW 10 the context of technology adoption and use (Pedersen and Ling, 2003). Aspects of diffusion theory will therefore not be included in this thesis Adoption theory Adoption researchers typically use multi attribute models that focuses on users beliefs about multiple attributes of a technology. These theories try to describe and explain users decisions, by applying different individual and social theories of decision-making. The three most widely applied models are: The Technology Acceptance Model (TAM) (Davis, 1989), the Theory of Reasoned Action (TRA) (Fishbein and Ajzen, 1975) and its extension into Theory of Planned Behaviour (TPB) (Ajzen, 1991). This research has been criticised for a lack of attention to the attributes of applications and services being adopted, where models have been used without concerns to the antecedents (Pedersen and Ling, 2003). Two of the main baselines of adoption research comes from the concept that humans tend to act or behave according to their predetermined intentions and that human will act rational. This can be seen in these models, where intention is an antecedent of actual behavior. Adoption research seeks to explain why a particular adoption behavior may be observed at the individual level and largely focuses on employees adoption within the work place, where Information System is widely conceived as a tool to improve task-related performance. However most systems in organisational settings are either free for users or charge a one-time fee that grants daily usage. This is a contrast to voluntary adoption, where individuals usually personally bear all the risk associated with their adoption actions, monetary or emotional (Kim and Han, 2009) (Konana and Balasubramanian, 2005). The distinction between voluntary and compulsory adoption seems important for adoption of mobile advertising, because it is assumed to be a voluntary service. The risk associated with adoption might therefore be a greater factor compared to a compulsory service. Adoption research contribution will therefore be the individual level of analysis and deliver the framework, since the aforementioned theories are relative parsimonious Uses and gratification theory Uses and gratification research focuses on the individual user or adopter as the level of analysis, where the adopter seeks gratifications in technology use based on their individual needs or motivations. Based on the grasp of both utilitarian and

19 CHAPTER 2. LITERATURE REVIEW 11 non-utilitarian motives for use this research direction can be useful when focusing on the individual user in everyday life (Lin, 1996). As such uses and gratification research has instruments similar to traditional adoption theory. This research could therefore be beneficial when introducing elements of non-utilitarian motives to traditional adoption models. Being that uses and gratification research is a mass communication area, one could question the appropriateness of using it in a one-way information context. However the research assumes that people seek out information for their gratification, which is similar to the behavior mobile advertising users, is assumed to have (Ruggiero, 2000). Users of mobile advertising choose which commercials to receive and thereby the gratification for each delivered commercial Domestication Domestication research often describes the process in which the use of technology becomes an integrated part of everyday life. It focuses on the societal consequences of the adoption of a new technology and describes the usage pattern of groups in society, where it could help explain social dimensions such as theory of fashion and social networks effects (Pedersen and Ling, 2003) (Haddon, 2001). This is an interesting research direction, which has its main focus on leisure time and could therefore be used to indicate how a technology might alter everyday life, thus its long term success. Domestication research overall contribution will be limited based on delimitations of habits and therefore only explain some aspects of subjective norm Summing up The research directions are seen more as complementary rather than oppose each other. Based on the adoption theories apparent strength, its parsimonious, the structure of the remaining literature review will be centered around the theory of planned behavior. The uses and gratification theory and domestication theory will therefore be used to supplement adoption theory to provide a more holistic explanation of the concepts investigated.

20 CHAPTER 2. LITERATURE REVIEW Basic theories of adoption The aforementioned models in adoption theory have been used as conceptual tools to identify central issues in the mobile domain. The TRA links individual beliefs, attitudes, intentions and behavior to describe the psychological process that mediates the observed relations between attitude and behavior (Fishbein and Ajzen, 1975). TRA is therefore able to study the relationship between attitude and the behavior regarding mobile advertising. The TPB extended TRA to reflect the individuals internal and external constraints on behaviour. The model extension thereby account for conditions under nonvolitional control and for volitional behavior. The TPB assumes that human beings are rational and makes systematic use of the information available to them. Most actions of social relevance are under volitional control and are centered on intention being an immediate determinant of behavior (Ajzen, 1991). The difference in use of mobile advertising in organisational and in leisure context is that users themselves are in charge of the service, making the constraints on individuals available resources important to measure (Nysveen et al., 2005). The TAM was developed for the organisational setting, but ignored the cost for the consumer in the voluntary setting. Research has shown that customers perceived cost have a significant influence on the adoption intention of mobile services because consumers are charged for their service. Single TAM or even extended TAM could not accurately predict consumer adoption intention in a voluntary setting, mainly because it simplifies the persons influence construct, although it is comparable better in a mandatory setting (Zhu et al., 2010). The use of TAM in a voluntary setting can therefore be questioned, however research has shown that the constructs is fairly general and parsimonious, but may vary in different contexts (Doll et al., 1998). When people adopt an information system in a work related environment, where performance is key, will the adoption intention be formed based on performance considerations, rather than personal likes and dislikes in leisure setting (Zhu et al., 2010). Mobile advertising is assumed to be for leisure time, which makes these personal likes and dislikes lacking to be described in this model. The TAM and the extended TAM model has also been criticised not to include social variables to determine technology acceptance, where subjective norm did not affect intentions in voluntary usage context (Venkatesh and

21 CHAPTER 2. LITERATURE REVIEW 13 Davis, 2000). The TAM can provide a quick and inexpensive way to gather general information about individuals perceptions of a system, whereas TPB delivers more specific information giving more insight into why individuals or groups might be dissatisfied. The advantage of the TPB approach is that all respondents are making the same comparison, which are not specified in the TAM instruments and may vary across subjects. The disadvantage of TPB is that this reference point may not apply to all individuals. TPB tabs the important control variables for each situation independently and is more likely to capture such situation specific factors (Matthieson, 1991). Research conducted based on the TPB, may therefore be preferable to include in this thesis due to its context specific advantages. Finding research in the context of mobile advertising is therefore necessary when clarifying the factors affecting mobile advertising adoption. Single value adoption models, based on perceived- and intrinsic value relationship toward adoption intention has shown better explanatory power than TAM. However, single value adoption models has in general been found inferior to the TPB models (Zhu et al., 2010). Even though these models might explain part of the adoption intention, several other factors seem to affect the decision-making. The TPB has received critique for being a single belief model that cannot achieve a uniform standard with attitude or subjective norm and hence cannot provide a complete understanding of the formation of belief (Hsu et al., 2006). It has therefore been extended further to form e.g the Decomposed Theory of Planned Behavior (DTPB) and The Unified theory of acceptance and use of technology (UTAUT), receiving good explanatory power on adoption intention of information systems (Taylor and Todd, 1995) (Venkatesh and Davis, 2000). However these models are relative complex and UTAUT lacked internal unity of instruments (Zhu et al., 2010) Summing up Due to the diagnostic capabilities of the TPB and its relative parsimonious structure this model is preferred when investigating psychological factors affecting mobile advertising adoption. Compared to other affective processing models the TPB overlooks emotional variables such as threat, fear and mood by assessing them in limited fashion, but it seems to have superior explanatory power compared to other

22 CHAPTER 2. LITERATURE REVIEW 14 cognitive models. Keeping in mind that TPB research is context dependent, the included research will be critiqued and questioned if the contexts are not comparable. The following will therefore include research papers that explain the constructs attitude, subjective norm and perceived behavioral control. Consequently discussions of value will not be included in this thesis, however similarities to the attitude construct is briefly addressed. 2.3 Attitude Based on TPB, attitude is regarded as an individuals favorable or unfavorable evaluation with using a service (Ajzen, 1991). One could therefore argue that an individuals attitude is determined by the tradeoff between their perceived value and perceived cost of mobile advertising. When explaining attitude towards mobile advertising, two research papers found a correlation between perception of mobility, convenience and liking the mobile phone with a favorable attitude toward mobile advertising (Muk, 2007) (Jun and Lee, 2007). Other research argued that similar to a multifunction tool such as Internet, the mobile phone could generate a positive attitude towards using the phone, but negative attitude toward receiving an advertisement through it (Wang et al., 2002). Therefore identifying the usage of mobile phones does not seem to sufficiently explain consumers attitude toward mobile advertising. Advertising value resembles the attitude definition, where consumers subjective evaluation of the relative worth or utility of advertising significantly influencing attitude and has shown to serve as an index of customer satisfaction (Ducoffe, 1996). This value derives from the expectations about an offering itself, from experience accompanying the exchange and from the residual of having engaged in behaviors necessary to achieve the exchange (Haghirian and Madlberger, 2005). Advertising value therefore reflects the worth of a service/product itself and the experience associated with the transaction. According to Uses and gratification theory, consumers consciously select and use certain media and contents to gratify specific needs, indicating the importance perceived utility of mobile advertising. Basic economic theory states that people often maximise their utility and thus only accepting mobile advertising, when the tradeoff is perceived positive. Research of attitude toward mobile advertising has

23 CHAPTER 2. LITERATURE REVIEW 15 found moderating functions of uses and gratification concepts and these aspects are therefore included in this thesis (Bauer et al., 2005) (Jun and Lee, 2007). In the context of domestication, research found consumers that viewed advertising to be a part of everyday life, were more likely to have a positive attitude toward mobile advertising than others (Amen, 2010). Generally young people have been targeted in mobile advertising campaigns because they are heavy users (Dickinger et al., 2004), are more receptive towards mobile advertisements by attaching more value to it than older audiences (however findings of this sort have been inconsistent) (Haghirian and Madlberger, 2005), and are very tech savvy (Park et al., 2008) Research have found consumers willingness to accept mobile advertising to be inversely related to age, where young consumers have more favorable beliefs (Rettie et al., 2005). This thesis will not investigate how these differences between young or old consumers affect mobile advertising adoption, due to limited time and financial resources. Attitude toward mobile advertising is considered to be a niche, because studies have found 31% would accept it enthusiastically, even though permission was attained (Bauer et al., 2005). Research have shown that consumers attitude toward mobile advertising were positive if permission was obtained (Tsang et al., 2004). In a situation where permission was not included, did consumers have a negative attitude towards SMS advertisement (Zabadi et al., 2012). This might reduce the negative effect of attitude, because permission is assumed to be present in this thesis. Based on this the following hypotheses was created: H1: Attitude toward mobile advertising will have a significant positive effect on intention to adopt mobile advertising Research of internet, web and advertising in general have found the antecedents of attitude toward mobile advertising to be entertainment, informativeness, irritation, credibility and personalisation (Zabadi et al., 2012) (Tsang et al., 2004) (Jun and Lee, 2007) (Haghirian and Madlberger, 2005) (Xu, 2006). Studies show that Danish consumers uses their mobile phone primarily for entertainment and communications purposes followed by staying informed with news etc. (Google, 2011). These concepts will therefore be the structure in explaining attitude toward mobile advertising and is discussed in the following, which also includes the concept attitude toward advertising in general. The cited studies are primarily based on the TRA, which proved a good explanatory model for attitude.

24 CHAPTER 2. LITERATURE REVIEW Consumer general attitude toward advertising Research have suggested that mobile advertising is still a fairly new concept and consumers attitudes toward it are therefore assumed to be relative unstable. In contrast consumers are more likely to hold stable and consistent attitude toward advertising in general, because of everyday exposes over a significant period of time, making them highly familiar with it (Bauer et al., 2005). Other research has suggested that attitudes may have been developed towards a service, however attitudinal influence seemed to require user experience (Nysveen et al., 2005). The divergence of attitude toward advertising across different mediums have been found in several studies, because they reach individuals when most messages are not relevant (Ducoffe, 1996) (Wang et al., 2002) (Bruner and Kumar, 2007). One could therefore argue that delivering timely advertisement to the consumer on the mobile phone could generate a more positive attitude. This was supported in another study that found giving consumers control over the time they used on advertising would generate a more positive responses for younger consumers (between 18 and 34 years old) (Shavitt et al., 1998). In addition a study found that people with a negative attitude toward advertisement were less inclined to participate in a permission based advertising program, and had the belief that the mobile phone was for personal use (Basheer and Ibrahim, 2010). Conflicting results have been found regarding attitudes toward advertising in general, where the relationship to attitude toward mobile advertising has proven to be insignificant in a German study (Bauer et al., 2005). A cross-country comparison found an insignificant relationship toward intention to adopt mobile advertising from India, but had a marginal significant relationship in Syria (Kahn and Daim, 2010). These results indicate that attitude towards mobile advertising is not reliable affected by attitude toward advertising in general and this construct will therefore not be included in this thesis Entertainment From the uses and gratification perspective, entertainment refers to an individual affective needs, which relates to strengthening aesthetics, pleasure and emotional experience (Katz et al., 1973). Uses and gratification research has demonstrated that entertainment denotes the ability to fulfill consumers needs for escapism, diversion, esthetic enjoyment or emotional release. This can be used to involve the consumers

25 CHAPTER 2. LITERATURE REVIEW 17 more deeply and make them more familiar with the advertised product or service (Liu et al., 2012). People s feelings of enjoyment associated with advertisements have shown to play the greatest role in accounting for their overall attitude toward advertisement (Shavitt et al., 1998). Entertainment will be defined as an action, activity or event that aims to amuse or interest the audience. These can both be passive or active, whereas in the case of mobile advertising the role of consumers would be active, because they seek the enjoyment themselves. In the mobile entertainment industry, there are lots of entertainment services like listening to music, playing games, gambling, watching television and video. These entertainment services can increase customer loyalty and add value for the customer by fulfilling consumer needs for aesthetic enjoyment and emotional release (Zabadi et al., 2012). Research investigating mobile marketing campaigns has found that in 42% of 53 business cases studied, advertised for the entertainment industry such as movies, sports, games and music. Here 43% of the participants opted in for future offers, which is a higher rate than most other industries (Park et al., 2008). Studies have shown that a high degree of pleasure and involvement during interaction with a computer based media leads to concurrent subjective perceptions of positive affect and mood of the consumer (Hoffman and Novak, 1996). Companies in the entertainment industry therefore seem to acknowledge that entertainment can have a positive effect on attitude toward mobile advertising or the product/service itself. The adoption of hedonic mobile services has been found to be more effective compared to other mobile services, improving the diffusion and satisfaction of services (Wang and Lin, 2012). Entertainment were found to be particularly important in the context of consumers experience, when interacting with the organisation, rather than just the functional benefits following from the products and services delivered (Merisavo et al., 2007). In this regard entertainment have shown to positively affect overall utility perception and thereby giving a more positive attitude toward mobile advertising (Bauer et al., 2005). This indicates that hedonic pleasure could lead to a favorable evaluation of entertainment and affecting attitude toward mobile advertising positive. Research within mobile advertising have found that entertainment has a significant positive relationship with attitude and is regarded to be the most significant factor determining attitude toward mobile advertising (Xu, 2006) (Haghirian and Madlberger, 2005) (Tsang et al., 2004) (Zabadi et al., 2012). Entertainment is therefore able

26 CHAPTER 2. LITERATURE REVIEW 18 to improve the attitude toward the advertisement and toward mobile advertising as well. In contrast to these findings a study found that entertainment did not have a significant impact on attitudes. This difference was explained by cultural divergence between the USA and Taiwan, where the studies was conducted (Jun and Lee, 2007). Consequently entertainment might be cultural dependent, however other variables might have produced this contradicting result as well. This distinction is beyond the scope of this thesis and reflecting the aforementioned considerations, the following hypothesis can be formulated: H2: Entertainment of the mobile advertisement will have a significant positive effect on attitude toward mobile advertising Informativeness Informativeness is dependent on the fit between content provided by the mobile service and the subscribers information requirements. Ensuring the accuracy, meaningfulness and timeliness of the information provided, would generate a higher perceived information quality (Wang and Lin, 2012). In other words, the relevancy of the advertising content increases the information quality and thereby the perceived informativeness of the advertisement. Studies have shown that informativeness of advertisements is strongly correlated with advertising value, when it is transferred via traditional media and concerning attitude toward mobile advertising as well (Zabadi et al., 2012). From the uses and gratification perspective, informativeness refers to needs related to strengthening information, knowledge and understanding. These can be called cognitive needs, where an advertisement satisfies consumers needs for information and knowledge about a service or product (Katz et al., 1973). The optimum stimulation theory states that people aspire to accomplish a certain degree of stimulation and collect information with intrinsic motivation (Hoffman and Novak, 1996). According to these theories people seek out information and knowledge for their own gratification, having intrinsic motivation to find something usable. Information and entertainment are typically entwined with each other in the new technological world and could therefore be integrated into a single construct (Liu et al., 2012). This correlation between information and entertainment has not been

27 CHAPTER 2. LITERATURE REVIEW 19 included in this thesis, however the logic of consumers feeling entertained by relevant information and an entertaining service might provide valuable information is reasonable. Informativeness is considered a valuable incentive in mobile advertising because recipients react very positively to advertising when the advertisement provides users with resourceful and helpful information (Liu et al., 2012). If an advertisement satisfies consumer needs for information and knowledge about a service or product, it can be assumed that the advertisement will be favorably perceived by the consumer (Bauer et al., 2005). The quality of the information is therefore important and needs to be met by the recipients demands. It has been suggested that informativeness should include information accuracy, relevance, timeliness, convenience and completeness. These features can be described by the concepts of localisation and personalisation (Leung and Cheung, 2004). Personalisation refers to the customisation of information accuracy and relevance, whereas localisation refers to the timeliness and convenience of the advertising message. This creates an image of the completeness of the service. The importance of personalisation will be further discussed later on. Several studies have found that there exists a significant positive relationship between informativeness of the mobile advertising and consumers attitude toward mobile advertising (Zabadi et al., 2012) (Haghirian and Madlberger, 2005) (Tsang et al., 2004). It seems that informativeness and entertainment can supplement each other thereby creating a positive attitude toward mobile advertising. This positive effect depends on consumers requirements and expectation to how these should be met. Based on these considerations the following hypothesis has been formulated: H3: Informativeness of the mobile advertisement will have a significant positive effect on attitude toward mobile advertising Irritation The role of permission marketing addresses the widespread problem with spam in media communication by demanding an agreement to receive marketing information. This reduces the irritation created by interruption because the advertisement is an agreement between advertiser and receiver, where the receiver decides when and how much information to receive (Saadeghvaziri and Hosseini, 2011) (Bauer et al.,

28 CHAPTER 2. LITERATURE REVIEW ). Advertisements can be viewed as spam if they are repetitive, interrupting during consumers daily activities, overwhelming with information or the frequency is too high. When these variables increase the attitude toward the medium worsens and leads to consumers rejection of mobile advertising (Haghirian and Madlberger, 2005) (Zabadi et al., 2012) (Bamba and Barnes, 2007). One of the serious concerns about mobile advertising is that marketers would replicate spamming and thereby deteriorate the value of mobile advertising (Park et al., 2008). As mentioned earlier the personal nature of the mobile device can create a resistance for risking their privacy. Personalisation can create a situation where a company gathers too much private information (such as the users whereabouts, without getting his/her consent) and uses this knowledge to provide geographic specific advertisement, thereby generating a feeling of intrusion for the consumers (Bruner and Kumar, 2007). Research has shown that this produces a negative attitude toward mobile advertising (Soroa-Koury and Yang, 2010). Irritation may lead to a general reduction of the value perceived by the audience. This is especially the case where advertisers employs techniques that annoy, offend, insult or are overly manipulative for the consumers (Liu et al., 2012). The indignity people feel when being addressed by condescending advertisements has a great influence on peoples attitude toward advertising, consequently leading to negative attitudes toward mobile advertising (Shavitt et al., 1998)(Tsang et al., 2004). Regarding uses and gratification theory people seek to avoid irritation, which therefore act as a barrier of frustration of not reaching the desired needs (Katz et al., 1973). People would tend to maximize their benefits or utilities by reducing the cost, which would be the irritation caused by the advertisement (Zabadi et al., 2012). Opposed to informativeness and entertainment, which generated positive attitudes toward mobile advertising, irritation has shown to significantly impact it negatively. This variable would lessens the value of informativeness and entertainment, thereby reducing consumers overall utility value (Haghirian and Madlberger, 2005) (Tsang et al., 2004) (Ducoffe, 1996) (Zabadi et al., 2012) (Xu, 2006). The low cost of mobile advertising might provoke advertising agencies to send excessive spam messages, however this would lead to unfavorable attitudes toward mobile advertising (Basheer and Ibrahim, 2010). The perceived irritation is therefore dependent on the frequency of the ads, their content and its timing. The following hypothesis

29 CHAPTER 2. LITERATURE REVIEW 21 has been created in a reflection of this. H4: Irritation of the mobile advertisement will have a significant negative effect on attitude toward mobile advertising Credibility Advertising credibility is evaluated through the content the advertisement delivers and is considered crucial, when consumers must make decision or take actions on the basis of uncertain information. Consumers use credibility to evaluate whether the service is believable prior to following up on information using their experience with the advertising channel to decide. Experience with the advertising channel has shown to increase the credibility of an advertisement received through it, however the credibility may vary across mediums. A study found that messages on the Internet received less credibility than a printed message unless it is communicated by a strong brand (Liu et al., 2012) (Haghirian and Madlberger, 2005). Considering the uses and gratification theory states that individuals have needs related to strengthening credibility, confidence, stability and status, which combine both the cognitive and affective elements (Katz et al., 1973). Credibility has shown to significantly influence advertising value, because ads are determined by their truthfulness and believability. Prior research has identified a positive correlation between consumers perception of the credibility of the ad and consumers attitudes toward the advertisement (Zabadi et al., 2012). This was disputed in another study that did not find this relationship. However the authors suggested that because the study was conceded under permission-based conditions it would reduce credibility s effect and acknowledged that further investigation of advertisers credibility were needed (Drossos et al., 2007). Several studies have found credibility to have a significant positive influence on attitude toward mobile advertising and were the only significant factor in the case of unauthorized advertisements (Zabadi et al., 2012) (Tsang et al., 2004) (Haghirian and Madlberger, 2005). Therefore the following hypotheses was formulated: H5: Credibility of the mobile advertisement will have a significant positive effect on attitude toward mobile advertising

30 CHAPTER 2. LITERATURE REVIEW Personalisation Personalised based mobile advertising has shown a better performance than conventional methods, where it has been a significant and important factor to get a more positive attitude towards mobile advertising. This is primarily due to the increasing expectation for tailored and location based services that delivers relevant and interesting messages to the consumers, which underlines the importance of personalised mobile advertising (Mir, 2011) (Liu et al., 2012). Specific targeting is argued to be critical for the success of mobile advertising, because the tolerance level for consumers are assumed to be quite narrow for mobile advertisements (Jun and Lee, 2007). A study included personalisation in the framework resulting in an insignificant relationship between attitude toward mobile advertising, informativeness and irritation (Xu, 2006). One could argue that the personalisation concept is the mediating factor reducing or increasing either informativeness or irritation. When personalisation is present it could be assumed that consumers will experience a high degree of informativeness and a low degree of irritation making these variables irrelevant in explaining attitude toward mobile advertising. Personalisation of mobile advertising has shown to generate positive attitudes toward mobile advertising. A British study found that 81% of 210 respondents viewed personalised mobile advertising as interesting and useful (Leek and Christodoulides, 2009). Personalisation of mobile advertising can enable marketers to reach their potential customers in an individual way, thereby increasing the relationship with the consumers. The amount of messages will be reduced and the relevancy of these will increase (Saadeghvaziri and Hosseini, 2011). Relevancy has been found to be the most important factor when assessing respondents willingness to adopt mobile advertising. Personalised messages can deliver relevant content to respondents and has shown to enhance consumer satisfaction despite unfamiliarity with the brand and low control over opt in conditions. This personalised message can be based on user demographics (e.g. Income), user preference (e.g. Prefered product), context (e.g. Location and user actitivites) and content (e.g. Brand name) factors (Bamba and Barnes, 2007) (Xu, 2006). Studies have shown that introducing personalisation, as a mediating factor would

31 CHAPTER 2. LITERATURE REVIEW 23 generate a better attitude toward mobile advertising (Xu, 2006). The diagnostic ability it contributes to the model seems questionable, because it eliminates or reduces the explanation of aforementioned variables, making them irrelevant when perfect personalisation is present. The assumption of creating perfect personalisation appears difficult to implement in a real world setting, however respondents evaluation of the intermediates personalisation ability to deliver relevant content might generate positive attitudes toward mobile advertising (Saadeghvaziri and Hosseini, 2011). Instead of personalisation being a mediating factor in this thesis and affecting the other constructs, a measure of intermediates expected ability to personalise mobile advertising will be used. This is consistent with other prior research that defines personalisation based on company ability (Kim and Jun, 2008). It therefore gives an indication of the importance of personalisation on attitude toward mobile advertising and the following hypothesis is based on this: H6: Personalisation ability of intermediates will have a positive significant effect on attitude toward mobile advertising Summing up Research have provided result where entertainment, informativeness, credibility and personalisation were positively correlated with attitude toward mobile advertising, whereas irritation is negatively correlated. Ranking the importance of these variables however has shown to produce differing results (Dickinger et al., 2004)(Tsang et al., 2004) (Zabadi et al., 2012). These constructs was found to significantly affect attitude toward mobile advertising however confirming construct ranking with prior research would not be possible. 2.4 Subjective norm Subjective norms are standards of behavior, based on widely shared beliefs of how individual group members ought to behave in a given situation. The application of TPB to information technology acceptance divided subjective norm into both personal and external environmental influences, where personal is influence from peers and external is influence from experts and media. In the context of mobile advertising it has been found that the external environment did not influence subjective norm significantly whereas peer influence did (Hung et al., 2003). People would look toward their peers of friends rather than product endorsement by well-

32 CHAPTER 2. LITERATURE REVIEW 24 known stars. This is consistent with other research that found consumers likely to be influenced by normative beliefs from their friends, family, work environment and colleagues, when choosing whether or not to adopt mobile advertising (Amen, 2010). A study of WAP telephony replicated this result and found the determinant to be especially important in the early stages of the innovation diffusion life cycle, because information of the innovation may be incomplete and potential adopters have to rely on their referent groups for information (Teo and Pok, 2003). When the individuals have little or no experience on related innovations, normative pressure from reference groups to adopt the innovation reduces the perceived risk of adoption (Kahn and Daim, 2010). The perceived risk will be discussed later on. Results have indicated that the concept subjective norm alone is not sufficient to capture the rich universe of identity and social influences driving behavioral intentions. Intentions to use mobile services may be explained largely by gratifications of sociability and expressiveness and not so much the norms of mobile service use. Expressiveness is viewed as the consumer perception of a given products or services ability to express both social and personal identity dimensions (Thorbjørnsen et al., 2007). Dividing subjective norm into underlying constructs could therefore help to explain the concept to a more detailed degree. One concept is social identity expressiveness, which focuses on identities that emanate from group membership and refers to the tendency to behaviorally and perceptually favor the in-group over the out-group. This concept therefore relates to the extent, where consumers expressively use mobile advertising to relate to other in-group persons by impressing and influencing others. In this regard the theory of fashion relates to others positive and negative characterisation of style and thereby affect the group affiliation, however this is based on the mobile phone, which might not necessarily be comparable to mobile advertising (Thorbjørnsen et al., 2007). Whether this concept is important to mobile advertising depends on the provided information or entertainment that the individuals might find useful and impress others with. Another concept is self identity expressiveness, which refers to the role an individual occupy in society and denotes to what extent consumers use mobile advertising to display their own identity and values to themselves and others (Thorbjørnsen

33 CHAPTER 2. LITERATURE REVIEW 25 et al., 2007). The match between the individuals role and mobile advertising possibilities for displaying these values could therefore be of importance for their adoption. Social identity and self identify expressiveness where both found to significantly impact intentions, whereas subjective norms did not. The result of the study indicates that the effect of subjective norms on intention is mediated by social identity expressiveness suggesting that the role of subjective norms in previous adoption studies may have been slightly simplified (Thorbjørnsen et al., 2007). This study was conducted on MMS-messaging, where the interaction between individuals is at the center and thereby possibly boosting the importance of subjective norms. In the context of this thesis, mobile advertising is not used as a communicative service between individuals, but from a company to an individual. The interaction with group members is not present through mobile advertising and might therefore reduce the impact of social- and self-identity expressiveness in adopting mobile advertising. The social impression that coupon use might convey involves a conflict between economic and psychological rewards and the social cost that attend a deal. Because coupon use can convey appearing cheap or stingy, consumers might avoid such impressions and will therefore have a disincentive toward using them. Contrary a price deal can lead to smart or responsible shopper self perception and financial benefits. This tradeoff differed in varying context where people refused the coupon, when social approval was important and redeemed it when redemption was more hidden from public (Ashworth et al., 2005). Determining whether or not a coupon through mobile advertising could be hidden from the public and thereby reducing social cost, might be valuable for determining the overall impact of subjective norms. This is beyond the scope of this thesis and mobile advertising was assumed to contain more than coupons. Studies of domestication research have provided several theories explaining adoption and use of mobile services such as theory of fashion, using mobile services as a group marker, social identifier etc. These studies emphasise the importance of social networks and the position of the adopter in these, being a significant determinant of adoption (Pedersen, 2005). This supports the significance of social identity expressiveness, where the position of the adopter in the social network is important and services contributing to this role might increase the adoption for

34 CHAPTER 2. LITERATURE REVIEW 26 these people. Generally speaking, youth are more susceptible to reference group influence than older consumers are. Their choice of mobile phone is influenced by peer pressure to maintain a good image with their peer group (McClatchey, 2006). This has been supported in other research where young users may be more subject to social influence, because they are at a stage of social development and learning. At this stage their social networks are more dynamic and thus more exposed to influence than older users (Thorbjørnsen et al., 2007). The difference between young and old consumers will not be investigated in this thesis, however this construct might be sensitive to the age distribution. Network effects have also showed to be important for the success of an SMS marketing campaigns, where viral effects amplified its effectiveness. Because messaging is commonly used as a way of interaction in mobile networks building a relationship through this advertising channel therefore might be easier (Park et al., 2008) (Dickinger et al., 2004). Advertising messages through the mobile phone might serve more as a peer recommendation rather than traditional marketing, however no research supporting this suggestion was found. Subjective norms are often influenced by incorrect perceptions of how other members in a social group think and acts. This misperception is described as the gab between actual attitudes and behavior and what people think is true about it. Pluralistic ignorance, where an individual incorrectly consider one self to be the minority, was found to significantly influence subjective norm (Soroa-Koury and Yang, 2010). This indicates that people might perceive that they are a part of the minority adopting mobile advertising, which either could give the consumer a feeling of being part of something unique or the consumer might be more reluctant in adopting mobile advertising because of the perceived risk Summing up Research have shown that even though subjective norms have only a slight direct influence on behavioral intention, it is a strong determinant of the actual attitude toward advertising (Bauer et al., 2005). This result indicate that subjective norms might not be an antecedent for intention to accept mobile advertising.

35 CHAPTER 2. LITERATURE REVIEW 27 The investigation of subjective norms has been unclear and the concepts social- and self-identity expressiveness are studied in a context not completely comparable with mobile advertising. Dividing the construct into these concepts therefore seems questionable, however including one item from each factor in the subjective norm will take their aspect into account in addition to investigating the original construct. Several aspects of subjective norm was not found to significantly affect mobile advertising adoption in most studies, however some did find a relationship with impact from family and friends (Hsu et al., 2006). Based on this the following hypothesises was generated: H7: Subjective norm will have a significant positive effect on intention to adopt mobile advertising 2.5 Perceived behavioral control Perceived behavioral control is defined as an individuals perceived ease or difficulty of performing a particular behavior and is determined by the total set of accessible control beliefs that either facilitate or impede performance (Ajzen, 1991). This construct can refer to several things for mobile advertising, because the consumer will evaluate whether or not they are capable of using mobile advertising properly or the perceived control they have of the service. Perceived behavioral control has shown in research to have little or no association with intention to receive mobile advertising. However it is found in other studies to play a significant role as a substitute or complement to trust, where a high degree of perceived behavioral control reduces the trust required to permit mobile advertising. Trust have also been argued to be a prerequisite of control; if the consumer doesn t trust the company they will not allow them control (Jayawardhena et al., 2009). In this thesis the assumption is made that trust is a prerequisite of perceived behavioral control and regarded as an important antecedent. Research have found different results regarding perceived behavioral controls effect on adoption intention. Merisavo et al. (2007) found that control and trust was a weak contributor in explaining willingness to accept mobile advertising, whereas others found a strong relationship (Bauer et al., 2005). According to the literature the following hypothesis about perceived behavioral control was constructed.

36 CHAPTER 2. LITERATURE REVIEW 28 H8: Perceived behavioral control will have a significant positive effect on intention to adopt mobile advertising Self efficacy The perceived self-efficacy is concerned with what a person believe they are capable of under a variety of circumstances. This perception directly affects peoples ability to perform a given task even though their skillset are similar. Therefore an increase in the feeling of self-efficacy can have a positive effect on consumers motivation to make an effort (Bandura, 1997). Self efficacy is the individuals evaluation of their ability to use information technology effectively and can influence the extent to which individuals perceive using SMS messages as easy and free of effort. It has been stated that a consumer s existing knowledge determines his ability to understand the features and usage of an innovation, thus affecting consumers perception of the innovations complexity. However this was not supported in the research, indicating that mobile advertising isn t a radical innovation for consumers (Bauer et al., 2005). In the context of subjective norm it s interesting to note that consumers capabilities might not be the most important barrier for mobile advertising adoption. A study found that facilitating conditions of resources and obstacles the consumer is faced with, does not significantly affect perceived behavioral control when investigating intentions to use mobile phone coupons. In addition the study also found self-efficacy to significantly affect this construct indicating that the ability of consumers to use mobile phone coupons is low and educating the consumers may prove beneficial (Hsu et al., 2006). This were a decomposed theory of planned behavior model and therefore had different parts affecting the constructs. Another study based on Technology acceptance model found that self-efficacy was a significant contributor on perceived ease of use, even though a well educated population was investigated (Zhang and Mao, 2008). One could argue that Danish consumers are accustomed to receiving SMS and MMS and thereby would be less subjected to the impact of self-efficacy, however this suggestion is not supported by any scientific evidence. In addition research with the perceived behavioral construct had an item describing self-efficacy significantly (Dickinger and Kleijnen, 2008) (Nysveen et al., 2005). Because this thesis is based on theory of planned behavior, self-efficacy will not be divided into an underlying construct, but one item representing this

37 CHAPTER 2. LITERATURE REVIEW 29 aspect will be included in subjective norm Trust Research have found that consumers were willing to provide marketers with demographic and lifestyle information, but were more reluctant of disclosing household income, types of credit cards and social security number (Phelps et al., 2000). People are therefore willing to give up information if the perceived shopping benefits are bigger, however the information they are willing to provide differ (Jayawardhena et al., 2009). To personalise advertisements, requires sensitive information about the consumer and they might not be willing to disclose some of these. The enhanced potential of personalisation and customisation means that consumers place greater importance on their level of trust in the marketer, where they must trust the value-exchange process. Institutional trust, which regards structural security such as perceived privacy of disclosed information to retailers, has been found to impact consumers trust the most compared to personal trust (Davis et al., 2011). Institutional trust reflects the perceived trustworthiness of the company in general and its marketing communications, where continuous advertising and a general presence in media communicates the stability of the company and increases the consumers familiarity. This familiarity has shown to significantly impact trust, indicating that if a company is not known by the consumer through other traditional channels, then its likely that it will not be trusted through the mobile service channel. The reputation of the company is therefore important because this would reduce the perceived risk and uncertainty toward the service (Davis et al., 2011)(Jayawardhena et al., 2009). A company with high credibility through traditional channels would therefore have easier to reduce the perceived risk and uncertainty. Consumers trust also emerges either in personal interaction with the trustee or via information about the trustees past behavior received from personally known sources. The cumulative experiences with the company are therefore important and are also affected by social influence from friends, family and colleagues and their experience (Jayawardhena et al., 2009). Another aspect of trust is based on consumers perception of private information safeness, where encryption of the information and other software solutions is impor-

38 CHAPTER 2. LITERATURE REVIEW 30 tant (Davis et al., 2011). Being that trust is primarily routine-based tacit knowledge, makes it difficult to measure reliably. Research also found that the antecedents of trust varied across countries due to the differences in their legal, political and cultural frameworks (Jayawardhena et al., 2009). This distinction between countries is not within the scope of this thesis and results are thereby assumed to be similar in Denmark. A study conducted in Finland found that trust was a relative weak driver in the acceptance of mobile advertising, because consumers did not believe marketers would send unsolicited mobile advertising, reducing the importance of trust (Merisavo et al., 2007). Danish and Finish consumers are protected by similar marketing law suggesting that experience of trust would be the same. However fear of exploitation might still affect acceptance of mobile advertising, even though it might not be the strongest predictor Perceived risk Research have found that trust was the tradeoff between perceived risk and potential benefits, where the lesser risk means that less trust is required to permit mobile advertising. It could therefore be important to make a transparent opt out option for consumers to reduce the risk of given permission to join. This result was also found in other research, where consumers concern about private information and the ability to opt out of an list was correlated. Providing consumers with more control over personal information also significantly influenced purchase intention positively (Jayawardhena et al., 2009) (Phelps et al., 2000). The trust regarding handling of private information is therefore dependent of consumers opt out options. Consumer theory states that they will try to minimize their risk rather than maximize their utility. Risk perception in the context of mobile advertising mainly results from fear of data misuse and the reception of unwanted mobile marketing messages, making it a prerequisite for consumer acceptance of mobile advertising. This is especially the case for the adoption of innovations that consumers lack experience with because consumers are uncertain about the consequences of a decision or action (Bauer et al., 2005). The personal nature of the mobile phone has created issues concerning privacy

39 CHAPTER 2. LITERATURE REVIEW 31 and permission because unlike changing ones address, changing ones phone number is a far more extensive task (Dickinger et al., 2004). This was supported in another study, which found perceived risk to be particular important because of the highly personalised, and context based technology (Kleijnen et al., 2004). Therefore people might be more reluctant to accept mobile advertising because of their inability to opt out. If they change their phone number, their whole social network would have to be contacted, which can be rather extensive work. If mobile advertising is assumed to be relatively unknown for consumers it may be perceived to be riskier than other forms of marketing. Experience can only be acquired through exposure to mobile advertising and consumers who have never tried it are more risk-averse than people who have tried it. The impact of risk are therefore expected to decline, if consumers are not experiencing misuse of their private information(basheer and Ibrahim, 2010) (Jayawardhena et al., 2009). The influence of perceived behavioral control is therefore expected to decline, when people become more accustomed to the mobile phone as an advertising medium. Besides misuse of information, the lack of face-to-face interaction has been found to erode consumers trust, because they cannot see and judge the legitimacy of the company. The company can easily behave opportunistically, which consumers perceive as a major threat to their privacy such as tracking consumers location without consent or loosing sensitive information (Davis et al., 2011). Consumers ability to hold companies accountable is not uncommon in internet literature and might increase the reluctance for accepting mobile advertising. The aforementioned risk of irritation is perceived as important for consumers, where a study found that being able to turn off the ad without turning off the telephone was very important to the acceptance of mobile advertising (Hanley et al., 2006). Extensive advertising also had a negative relationship toward the consumers trust (Basheer and Ibrahim, 2010). The control consumers have is therefore important to reduce the risk associated with adopting mobile advertising. Introducing opt out options might reduce the trust required to get the consumers permission and giving the consumer an ability to control the number and types of advertising messages received.

40 CHAPTER 2. LITERATURE REVIEW Summing up Intention to adopt mobile advertising depended on the risk acceptance, where respondents was willing to engage in mobile advertising if they got something of value in return, such as better shopping experience or discounts (Sultan et al., 2009). The tradeoff between perceived risk and potential benefits therefore seems fundamental to the perceived behavioral control construct. This thesis assumed that trust is a prerequisite of control, thereby only investigating one direction of the relationship. Risk acceptance was found to be an indication of trust and was found in Teo and Pok (2003) to have a relationship with attitude. Consequently the risk acceptance construct will have two relationship resulting in the following hypothesis: H9a: Risk acceptance will have a significant positive effect on perceived behavioral control of mobile advertising. H9b: Risk acceptance will have a significant positive effect on attitude toward mobile advertising. 2.6 Market segmentation Market segmentation can be described as dividing the market place into homogeneous subgroups that differ in their reaction to the same stimuli. It is important because some segments may be more profitable and attractive than others. The variables used to segment a market can be divided into objective variables (demographic variables typically) that can be measured straight forward and inferred constructs (psychographic such as personality, lifestyle etc) that has to be operationalised before any consumer can be attributed to it (Pelsmacker et al., 2010). The narrow target segments can be described as niches in the market place, delivering specialised goods to a limited number of consumers, who have similar demographics, buying behavior and/or lifestyle characteristics. Nevertheless these consumers with the same characteristics might have differing motivations (Thilmany, 2008). A study made a motivation segmentation of third generation mobile services and divided consumers into usage categories such as business, formality, urgency, function, price, discretion, personal contact and fun (Pagani, 2004). The notion that consumers buying and usage motivation variates on multimedia services could be interesting to investigate regarding mobile advertising.

41 CHAPTER 2. LITERATURE REVIEW 33 Demographics are frequently used to segmentation, because they correlate with consumer needs and they are less difficult to measure than others. Different generations can also have distinctive buying and usage patterns, where the newer generations are much more adapt to computers and internet, in contrast to older generations. Research have shown that generation Y (present age 15-30) is basing their buying and using decision on peer-to-peer recommendations, to a much larger degree than earlier generations. Because information is present everywhere, they are rather selective about who they listen to and will put greater emphasis on their peers recommendations (Pelsmacker et al., 2010). The age and generation could therefore be important when investigating adoption intention of mobile advertising. A study investigated how the age affected attitude toward mobile advertising found significant differences on constructs such as irritation, personalisation and incentives in addition to attitudes toward mobile advertising, intention to adopt and actual adoption. The youth were found to be more positive toward mobile advertising and intended to use them more than adults (Ünal et al., 2011). However these results were not replicated in other studies, finding no significant relationship between age and attitudes toward mobile advertising (Barutcu, 2007). Gender has been identified as an important segmentation variable regarding internet usage and advertising in general, but has been investigated to a limited degree concerning mobile advertising. According to this study females had a more favorable attitude toward mobile advertising than males did and thereby exhibiting gender as valid segmentation variable (Okazaki, 2007). Other research has not found the use of demographic variables segmentation to significantly explain the clusters, where variables such as education level, material status, income level of family and profession was included (Ünal et al., 2011) (Barutcu, 2007). Even though one might argue that the respondent s financial situation might contribute to increased advertising and barging seeking, there was not found empirical evidence for this regarding mobile advertising. This thesis will therefore use gender and age as profiling variables, because they are not expected to contribute to the segmentation. Psychographic segmentation has been developed because demographics have shown strong limitations in predicting consumer behavior in some situations. It combines consumers activities, interest and opinions to map the lifestyle, however it has also been found to be more difficult to measure (Pelsmacker et al., 2010). One

42 CHAPTER 2. LITERATURE REVIEW 34 could argue that people interested in mobile advertising are attracting a certain lifestyle where consumer chaises special offers. This group could therefore be more price-sensitive than others, however this proposition depends on the consumers motivation for using mobile advertising. Research has supported this suggestion about price sensitivity, finding value seekers to be more sensitive toward effort in redeeming coupons and to mobile spam than other consumers. In this context value seekers were consumers that derived psychological rewards from price savings such as coupons or enjoyed hunt for bargains, feeling a sense of accomplishment when they save money (Dickinger and Kleijnen, 2008). Another study also found that shopping orientation created a significant difference between consumers and included concepts such as price consciousness, involved consumer, distinctive consumers, recreational and uninvolved consumers (Barutcu, 2007). This thesis will therefore use value seekers to segment respondents according to their intention to adopt mobile advertising. A Danish study segmented consumers according to their usage behavior, resulting in four categories with distinctive demographic differences. These were talkers, writers, photographers and surfers. Because adoption does not imply homogeneous use, investigating motivations for consumers might provide greater understanding (Constantiou et al., 2007). This is important when segmenting according to behavior because one lifestyle characteristic might not reflect all adopters motivations. A more optimal psychographic segmentation should therefore include several lifestyle characteristics to map consumers adoption adequately, however based on the already extensive questionnaire, price sensitivity will be the only one used. All adopters motivations might not be reflected in this price sensitivity segmentation, making it difficult to define specific characteristics for consumers intention to adopt mobile advertising. Another study tried to segment potential mobile advertising users according to consumers characteristics such as innovativeness, knowledge about mobile communications, information seeker behavior and attitude toward advertising. These construct however provided little evidence for the relationship to attitude toward mobile advertising and their segmentation power (Bauer et al., 2005). Based on the aforementioned dispositions in this thesis the following hypotheses i formulated: H10: Segmenting according to price consciousness provides significantly different groups.

43 CHAPTER 2. LITERATURE REVIEW Model development and hypotheses The purpose of this thesis was to investigate the psychological factors affecting mobile advertising adoption. In the following the aforementioned hypotheses are presented in their context of the theory of planned behavior model. The original model is presented in figure 2.1 next to the conceptual model in figure 2.2 and the discussed hypotheses can be found in table 2.1. Figure 2.1: The Theory of planned behavior model. Source: Ajzen (1991) Figure 2.2: The conceptual model. Source: Author own adaption As mentioned in delimitations behavior is not investigated in this thesis and thereby not examining the relationship between perceived behavioral control and behavior as well. In addition to behavioral intention three similar antecedents; attitude, subjective norms and perceived behavioral control, six constructs have been added to the model. Their relationship was based on prior research and their assumptions presented in the literature review. The TPB model is extended to explain in more detail the antecedents of the constructs affecting mobile advertising adoption intention, making the conceptual model very context specific. However the validity and reliability of the new conceptual model is reduced, due to limited testing compared to the the original TPB model. Constructs attitude, behavioral intention and perceived behavioral control is regarded as endogenous latent variables, because they are dependent variables in some of the equations in contrast to subjective norm which is exogenous. Considerations about reflective and formative constructs is based on theoretical evaluation,

44 CHAPTER 2. LITERATURE REVIEW 36 where all are viewed as reflective and will be treated so in the following chapter. Items presented in the next chapter is regarded as manifest variables connected to their respective construct (Hair et al., 2006) (Haenlein and Kaplan, 2004). Value seeker is not included in the model, because its not expected to be a moderating factor for these constructs. As mentioned earlier in the literature review value seeker items will be used to segment respondents according to their price consciousness. These segments will be investigated for significant differences between groups among constructs attitude toward mobile advertising, behavioral intention and price consciousness. Table 2.1: Overview of the hypotheses being investigated H1: H2: H3: H4: H5: H6: H7: H8: H9a: H9b: H10: Hypothesis Attitude toward mobile advertising will have a significant positive effect on intention to adopt mobile advertising Entertainment of the mobile advertisement will have a significant positive effect on attitude toward mobile advertising Informativeness of the mobile advertisement will have a significant positive effect on attitude toward mobile advertising Irritation of the mobile advertisement will have a significant negative effect on attitude toward mobile advertising Credibility of the mobile advertisement will have a significant positive effect on attitude toward mobile advertising Personalisation ability of intermediates will have a positive significant effect on attitude toward mobile advertising Subjective norm will have a significant positive effect on intention to adopt mobile advertising Perceived behavioral control will have a significant positive impact on intention to adopt mobile advertising. Risk acceptance will have a significant positive effect on perceived behavioral control of mobile advertising. Risk acceptance will have a significant positive effect on attitude toward mobile advertising. Segmenting according to price consciousness provide significantly different groups.

45 CHAPTER 3 Methodology This chapter offers a clear overview of the scientific approach and methodology used in this thesis. It outlines the important considerations regarding research method, techniques applied, design appropriateness, sampling and data collection. 3.1 Research Method The optimal investigation for this thesis would be a triangulation approach where the complexity of human behavior could be studied from more than one standpoint. This would improve the reliability and validity of the results and reduce the bias each method produces. The hypothesis, which are based on the literature review, will be tested quantitatively in a online questionnaire. A qualitative method such as focus groups or in depth interviews could have clarified if Danish consumers was affected by unique or additional constructs. However, due to limited time and financial resources the hypothesis will only be tested quantitatively and thereby not using the triangulation approach. The quantitative approach was preferred based on its generalisation and objectivity ability, whereas the results of the qualitative approach are affected by the researchers own interpretation (Hair et al., 2006). The choice of the quantitative approach consequently limits the thesis ability to present new constructs affecting mobile advertising adoption. However the generalisation ability of the thesis is larger than a qualitative approach would produce. The value of this thesis is therefore dependent on the extensive literature review identifying the most influential constructs. 37

46 CHAPTER 3. METHODOLOGY Collection method The population for receiving mobile advertising is quite large because approximately 97% of people in the age 16 to 59 have received a SMS recently, which is equal to (2.926milion 97%=) 2.83 million people. It is therefore also assumed that respondents for the questionnaire have a mobile phone (Google, 2011). For this study to be representative a randomly selected sample should be chosen, however this method is not used due to financial and time limitations. Consequently, convenient sampling method is chosen, which is a more feasible sampling technique with concerns to expenses, easiness and respondents being readily available. This choice create sampling bias, where skewed results might be obtained and the sample will not be representative of the entire population. The thesis will therefore be limited in the generalisation ability of the entire population and external validity of the study (Blumberg et al., 2008). The collection of data is made with a online questionnaire distributed through facebook for the pretest and ASB s for the main study. Consequently the sample will consist of well educated consumers in the age range and primarily from the Aarhus area. Online questionnaire is an inexpensive and quick way of collecting data, where respondents are able to be anonymous and can think about the questions. Conversely this method usually produces low response rates and the sample population becomes unclear, which reduces the samples representativeness (Blumberg et al., 2008). The samples representativeness could therefore be questioned using this method and getting enough responses might be a concern. Assuming that the samples will be representative for danish consumers in the age range years will therefore also be questionable. Compared to the ideal randomised sampling, this convenient sampling method produces some bias, because young and high educated consumers are expected to be overrepresented. This sampling distribution might produce inflated results concerning; subjective norm (more important), attitude (more positive) and self efficacy (lower impact). 2 Furthermore the education level might affect the result, however its beyond this thesis to determine in which degree the constructs are affected. 2 Based on the literature review, which found young consumers had a more positive attitude toward mobile advertising, was more influenced by peers and more tech-savvy.

47 CHAPTER 3. METHODOLOGY Survey construction and development The survey was designed to measure the constructs presented in literature review adapting their items to operationalise the latent variables. A pool of items was created for each construct that ensured each aspect of the construct was represented. Because getting enough responses might be a concern, the items was reduced to 3-4 for each construct. The choice of items was based on considerations of construct aspects presented in the literature review. This subjective evaluation method would limit the validity and reliability otherwise achieved from using prior research, however no complete scale was found for the thesis specific constructs. The items was translated into Danish and adjusted to the context, which permits for further bias. When items did not present aspects discussed in the literature review, self created items was introduced. A pretest was therefore conducted to ensure some reliability and validity for this scale (Clark and Watson, 1995). The attitude construct was measured with two items adapted from Thorbjørnsen et al. (2007) encompassing bad/good idea and foolish/wise, in addition to a self created item, worthless/valuable, based on Liu et al. (2012) s advertising value construct. These are expected to capture individuals favourable or unfavourable evaluation of mobile advertising. Based on Liu et al. (2012) approach these items are measured on a five point semantic differential type scale. The remaining items in the questionnaire is measured on a seven point likert scale ranging from "strongly disagree" to "strongly agree". Studies have found that rescaled means for five and seven point scales does not differ, indicating this change would not create bias in the results (Dawes, 2008). Measuring Informativeness three items was adapted from Zabadi et al. (2012) where one was adjusted, by replacing "exclusive information" with "relevant information" in the item. According to the literature review informativness is dependent on perceived relevancy and not exclusivity of the information making this distinction necessary. The items therefore captures aspects of relevancy and information accuracy. Entertainment was adapted from Liu et al. (2012) s "infotainment" construct, thereby capturing aspects such as active entertainment and enjoyment. In addition the credibility construct was based on Liu et al. (2012) as well, covering dimensions truthfulness and believability.

48 CHAPTER 3. METHODOLOGY 40 Personalisation was argued to be dependent on respondents expectation of the intermediary s customisation ability. Two items from Saadeghvaziri and Hosseini (2011) was therefore adopted to capture dimensions timing and relevance in addition to one self created item covering personalisation ability. In the context of irritation items was not found to capture dimensions such as indignity, interruption and amount. Three items covering this was therefore self created in addition to one item from Tsang et al. (2004) focusing on overall irritation perception. Subjective norm included two items from Bauer et al. (2005) and two self-created items that captures both social- and self-identity expressiveness. The perceived behavioral control construct adapted three items from Jayawardhena et al. (2009) covering perceived control and one item from Dickinger and Kleijnen (2008) to encapsulate self-efficacy. To measure risk acceptance, that indicated the consumers trust three items, was adapted from Sultan et al. (2009). Behavioral intention used two items from Xu (2006) and two self-created items to capture respondents motivations and likelihood of adoption in the future. Age, gender and prior experience with mobile advertising was used as profiling variables and value seekers were identified according to four items selected from Dickinger and Kleijnen (2008) encapsulating mostly price consciousness. All items, which are closed ended standardised questions, giving respondents the same items to answer with specified answering possibilities, is presented in appendix B figure 1 with their respective references. The items was not reverse coded, because getting enough responses was considered a concern, thereby creating some bias. To reduce order bias, the questionnaire was arranged in pages with randomised item batteries. The questionnaire was designed without don t know options and rules ensuring all questions would be answered, to reduce the challenges related to missing values. This assumes respondents had an opinion of mobile advertising, thereby forcing them to answer, however identifying poor items becomes harder. In spite of some scales could be ordinal, the scales used in this thesis are assumed to be interval scaled (Tabachnick and Fidell, 2007).

49 CHAPTER 4 Data Analysis This chapter present the pilot study, where sample characteristics, measurement validation and measurement reliability is investigated. The same method is thereafter used for the main survey, where also path analysis and hypotheses testing is provided. 4.1 Pretest study The questionnaire was distributed through facebook generating 133 responses from 355 exposes. These were chosen to participate based on education and age similarities to the main study population and is assumed to be comparable. Research recommends minimum sample size of 50 for a pretest, which is therefore met. Further investigation of the scale could have been done with focus groups, where respondents would judge whether the questions match the construct or not. However this was not done, due to limited time and financial resources (Hair et al., 2006). Only 108 of the 133 answered all questions, where 63.9% were females and 41% of the sample had tried receiving mobile advertising prior to participating in the study. The sample consisted primarily of young people with age groups and representing respectively 19.5% and 64.7% of the sample. 2 Preferably these data would be investigated for reliability, validity and goodness of fit measures, by a confirmatory factor analysis (CFA) in a covariance based structural equation model, however this requires multivariate normal distribution, sample size adequacy and no missing data. The CFA was preferred because all 2 See appendix table 2 for demographic descriptives overview 41

50 CHAPTER 4. DATA ANALYSIS 42 constructs was found in prior literature and the CFA provides a confirmatory test of how well the predefined constructs are able to explain the variables. The goal was therefore to test the quality and ability of the measurement model in order to explain the data structure instead of data reduction, where exploratory factor analysis might have been the preferred method. Furthermore the exploratory factor analysis gives unclear results for higher order factor analysis, which would be the case for this 3. order model (Hair et al., 2006) Missing data Due to rules where respondents had to answer all questions, the missing values are only in cases where respondents have exited the questionnaire. The Missing value analysis in SPSS showed that the last 15 items did have 15% or above missing values, however Little MCAR test (Chi-Square= , DF=124. sig=0.791) 3 indicated that data is missing randomly. Because of the low sample size, deletion of cases was not recommended and expectation maximization (EM) method was applied to replace the missing values. This approach assumes normality for the partially missing data and basing inference about missing values on the likelihood under that distribution. Values could therefore exceed the 1-7 likert scale and will cause some bias because error is not added to the imputed data set, however this method offer the simplest and most reasonable approach as long as MCAR exists (Tabachnick and Fidell, 2007) Normality and outliers No outliers were found with standardised scores exceeding ±4, which are the recommended threshold for sample sizes over 80 cases (Hair et al., 2006). Investigating items for skewness and kurtosis showed that 12 of 38 items did have normal distribution with a 0.01 significance level, however the remaining 26 showed non-normal skewness and kurtosis characteristics. 4 These items might be suffering from floor and ceiling effects making them candidates for elimination or modification. The non-normal distribution should also caution the conclusions one can make from this data set (Hair et al., 2006). 3 Items Gender, Age and experience with mobile advertising was not included 4 See appendix table 3 for skewness and kurtosis z-scores

51 CHAPTER 4. DATA ANALYSIS Covariance based or Variance based SEM To investigate the data, a structural equation model (SEM) was used which is a confirmatory technique. Two techniques can be used where variance based SEM (VB-SEM) focuses on maximizing the variance of the dependent variables explained by the independent ones instead of reproducing the empirical covariance matrix in covariance based SEM (CB-SEM) (Hair et al., 2006). CB-SEM has advantages regarding various goodness of fit indices, but require assumptions about normally distributed variables and demands of sample size, which is recommended to be in the range respondents, when using Maximum likelihood estimation. Contrary VB-SEM has minimal demands on measurement scales, sample size and residual distribution, because it is based on a series of ordinary least square regressions and generally achieves high levels of statistical power (Hair et al., 2006) (Haenlein and Kaplan, 2004). The VB-SEM proposed model only confirms that it is one of several acceptable models, because the focus is on prediction rather than explanation. The model therefore assumes that not all variables are observable, but can be predicted from other variables and no moderating effect exists. This method tends to underestimate the correlations between latent variables and overestimate the loadings, which should be kept in mind when analyzing the results (Haenlein and Kaplan, 2004). Even though maximum likelihood estimation for CB-SEM has proved to give fairly robust results with minor violations of multivariate normality, this data is assumed to have larger violations of this assumption. ADF estimation techniques for CB-SEM was not sensitive to non-normal data, but required a much larger sample size and were therefore not chosen. The VB-SEM technique was therefore preferred, since it does not have any strong assumptions about distribution, sample size and the measurement scale (Hair et al., 2006). Consequently the VB-SEM was conducted in Smartpls with path weighted schemes to investigate the data for reliability and validity Reliability and validity Due to Cronbach alpha scores under 0.7 in outer loadings, questions CR1 (0.2729), PBC4 (0.5405) and IR3 (0.3682) was step wise deleted. Item PER3 had a negative cronbach alpha score, which might occur when it is formulated positive/negative

52 CHAPTER 4. DATA ANALYSIS 44 compared to other items for the same construct. It was therefore recoded to reverse the scale, which generated a cronbach alpha score of in outer loadings. Similar to this IR4 (0.6556) did not reach the 0.7 threshold, however these two items was not deleted, because the gap between highest and second highest cross loading exceeded a 0.1 difference. 5 The remaining items in the model passed the indicator reliability test and the composite reliability measure in table 4.1, which should exceed 0.7, showed internal consistency reliability. 6 Credibility s Cronbach Alpha (0.386, marked with red) suggest that it is not reliable and CR2 and CR3 should be excluded, leaving this construct without any measurement items (Hair et al., 2011). Table 4.1: Reliability measures and latent variable cross loadings for pretest ATT PBC BI CR E INFO IR RA PER SN AVE COMR R Square C ALPHA ATT PBC BI CRE E INFO IR RA PER SN NOTE: The number marked with red did not exceed the 0.7 threshold. The grey diagonal is the squared root AVE which is similar to Fornell-Larckers AVE> squared correlations. ATT=attitude, PBC= Perceived behavioral contol, BI=Behavioral intention, CR=Credibility, E=Entertainment, INFO=Informativeness, IR=Irritation, RA=Risk Acceptance, PER=Personalisation, SN= Subjective norm, COMR=Composite reliability, C ALPHA= Cronbach Alpha. The model showed convergent validity with all AVE exceeding 0.5 and discriminant validity, where the square root of AVE for each construct should be greater than any other construct correlation, thereby indicating that constructs are different from each other. The AVE is only applicable for reflective constructs, which is the case for the present model. The data therefore seems to show good reliability and validity 5 See appendix table 4 for Cross loadings 6 See appendix table 5 for Outer Loadings

53 CHAPTER 4. DATA ANALYSIS 45 (Hair et al., 2006). This pretest thereby resulted in the deletion of items PBC4, IR3 and the three credibility items CR1, CR2 and CR3. To get a measure for credibility in the main study, three new items were added in addition to the old items remaining, because the old items might work well with the new. New CR3 is formulated with påvirke instead of overbevisende, because it seems to be a more appropriate translation for convincing in the mobile advertising context. Questions CR4, CR5 and CR6 were added from selected literature measuring this construct (Xu, 2006) (Liu et al., 2012). Under normal circumstances these changes would have to be tested again, however due to the limited resources this step is skipped. 4.2 Main study This questionnaire was distributed to bachelor, master and MBA students s at ASB thereby exposing it to over 4700 people, generating 231 respondents and an answering rate of around 5%. Compared to the pretest, more people had tried mobile advertising prior to participating in the study (50,2%>41%) and females were more represented by being 67.1% instead of 63.9% of the respondents in the pretest. The sample age group was distributed accordingly; %, % and above %, thereby having a more evenly distribution than the pretest. Concerning the representativeness of the sample, females seems to be overrepresented, where prior research had around 50% distribution of males and females. Similar to this thesis other studies had a large amount of young people represented in the sample with approximately 80% (age group % in this study) (Tsang et al., 2004) (Xu, 2006) (Leek and Christodoulides, 2009). The age distribution seems comparable, however the overrepresentation of females might create some bias in the results Missing data and outliers Similarly to the pretest, missing values are only in cases where respondents have exited the questionnaire. Missing value analysis in SPSS found that the last 30 items did have 14.3% or above missing values and the Little MCAR test (Chi- Square= , DF=130, sig=0.078) 7 indicating that missing values are close to 7 Items Gender, Age and experience with mobile advertising was not included

54 CHAPTER 4. DATA ANALYSIS 46 non-random (however still MCAR). The EM method can be used for both states and was therefore applied in the main study as well (Tabachnick and Fidell, 2007) Normality and outliers When investigating the dataset for outliers the standardised scores was calculated and found none exceeding ±4, which were similar to the pretest. Concerning skewness and kurtosis results showed that 25 items had non-normal skewness and/or kurtosis characteristics and therefore might be suffering from floor and ceiling effects, making them candidates for elimination. 8 The non-normal distribution should therefore caution the conclusions one can make from this dataset (Hair et al., 2006). Similar to the pretest, considerations of non-normality and excessive kurtosis was the reason for using VB-SEM. The PLS path modeling algorithm was executed in SmartPLS using maximum 300 iterations and the path weighting scheme. Because the different weighting schemes for determining inner model proxies had only minor impact on the final result, the standard was chosen (Haenlein and Kaplan, 2004) (Hair et al., 2006) Reliability and validity Items with a Cronbach alpha score under 0.7 in outer loadings were stepwise deleted, which resulted in the exclusion of CR1 (0.3645) and PER3 ( ) 9. IR4 (0.622) did not exceed the 0.7 threshold, but remained in the model because of low cross loadings on other constructs. 10 The remaining items in the model all passed the indicator reliability test and showed internal consistency reliability with all composite reliability measures above 0.7 in table 4.2 (Hair et al., 2011). The model showed convergent validity with all AVE exceeding 0.5 and discriminant validity, where the square root of AVE for each construct should be greater than any other construct correlation, thereby indicating that constructs are different from each other. The AVE is only applicable for reflective constructs or latent variables, which is the case for the present model. The data seems to show good reliability and validity, even though high cross loadings on other constructs for items lessens discriminant validity, it still proved to be significant (Hair et al., 2006). 8 See appendix D table 7 for main study descriptives statistics 9 See appendix D table 8 for main study outer loadings 10 See appendix D table 9 for main study cross loadings

55 CHAPTER 4. DATA ANALYSIS 47 Table 4.2: Reliability measures and latent variable cross loadings for main study ATT BI CR E INFO IR PBC PER RA SN AVE COMR R Square CALPHA ATT BI CR E INFO IR PBC PER RA SN NOTE: The Grey diagonal is the squared root AVE, which is similar to Fornell-Larckers AVE> squared correlations. ATT=attitude, PBC= Perceived behavioral contol, BI=Behavioral intention, CR=Credibility, E=Entertainment, INFO=Informativeness, IR=Irritation, RA=Risk Acceptance, PER=Personalisation, SN= Subjective norm, COMR=Composite reliability, C ALPHA= Cronbach Alpha Variance explanation and predictive relevance The explanatory power of the structural model is assessed by R2 values, which represent the amount of variance in the construct explained by its antecedents. These values are only calculated for endogenous constructs, which is why there are only values for attitude, behavioral intention and perceived behavioral control, but not the exogenous subjective norm. Values of 0.67, 0.33 and 0.19 in PLS path models has been described as substantial, moderate and weak, respectively. Table 4.2 illustrates that attitude toward mobile advertising and behavioral intention is substantial explained and perceived behavioral control is under the weak threshold. This model is therefore able to explain 73.25% of the variance in behavioral intention 73.49% of attitude toward mobile advertising and 14.95% of perceived behavioral control. Based on the low R2 value, perceived behavioral control might be dependent on other variables not considered in this study (Tabachnick and Fidell, 2007) Hypotheses Testing The individual path coefficients measures the magnitude of the causal relation between constructs and can be interpreted as standardized beta coefficients of

56 CHAPTER 4. DATA ANALYSIS 48 ordinary least squares regressions. To validate these paths a bootstrapping method was used, that provides an estimate of the shape, spread and bias of the sampling distribution of a specific statistic. This t statistics was tested against 0.01 significance level (p < 0,05 requires t-value >2,581) by using 231 cases and a sample of 1000 (Hair et al., 2011) (Tabachnick and Fidell, 2007). Table 4.3: Hypotheses test for main study Hypotheses Paths T-Statistics H1 Attitude toward mobile advertising -> Behavioral intention ,794 H2 Entertainment -> Attitude toward mobile advertising ,807 H3 Informativeness -> Attitude toward mobile advertising ,027 H4 Irritation -> Attitude toward mobile advertising ,111 H5 Credibility -> Attitude toward mobile advertising ,735 H6 Personalization -> Attitude toward mobile advertising ,899 H7 Subjective norm -> Behavioral intention ,681 H8 Perceived behavioral control -> Behavioral intention ,441 H9a Risk acceptance -> Perceived behavioral control ,264 H9b Risk acceptance -> Attitude toward mobile advertising NOTE: After the exclusion of the H9b relationship the paths was estimated again and imputed in the table. According to the estimated t statistics in table 4.3 the hypothesized relationship were all significant within the 0.01 significance level except H9b, which were rejected. In addition the paths had the expected positive or negative relationships and will be elaborated later in the discussion chapter. 4.3 Segmentation Preferably a latent class analysis would be chosen to segment according to price consciousness, however recommendations of a sample size above 300 is not fulfilled (Swanson et al., 2012). Therefore cluster analysis is chosen, which is an interdependence technique that tries to maximize homogeneity within the cluster and the heterogeneity between the clusters. This method is the only multivariate technique that does not estimate the variate empirically, but instead uses the variate as specified by the researcher. The clusters found do not validate their existence, however combining them with strong conceptual support makes them relevant and meaningful. Assumptions such as normality, linearity and homoscedasticity are not important for cluster analysis, however representativeness of the sample and multicollinearity is. Regarding representativeness, the sample size must be large

57 CHAPTER 4. DATA ANALYSIS 49 enough to provide sufficient representation of small groups within the population and the underlying structure, or outliers will cause problems (Hair et al., 2006). A combination of hierarchical and nonhierarchical approach is advisable, where the hierarchical approach determines the number of clusters and the nonhierarchical method provide the more accurate cluster membership. The Two-Step cluster analysis was not used, due to distribution assumptions and the small sample size. This ad hoc procedure was therefore chosen to ensure that the clusters were relative stable and provide the conclusion with more validity measures (Hair et al., 2006). The hypotheses of value seekers is therefore based on theoretical considerations and prior research as investigated in the literature review. The assumption about multicollinarity was checked by creating a regression with the four value seeker items and making sure VIF measures where less than 3. Results indicate that multicollinarity is not a problem with value seeker items (Tabachnick and Fidell, 2007). 11 The cluster analysis was run on 231 cases for value seeker items to segment respondents according to their price consciousness. A hierarchical cluster analysis, using average linkage and centroid with euclidean and squared euclidean distance respectively, found indications of three or four clusters in the agglomeration schedule (Hair et al., 2006). 12 Calculating the cluster centers for each solution with k means clustering provided the graphs presented in appendix D figure D.2 and D.3. Based on the cluster being more distinctive different from each other, the four cluster solution is considered to offer an improvement in the understanding of price consciousness and therefore have higher face validity compared to the three cluster solution. The four cluster solutions ANOVA results showed clustering variables means differ across at least two of the four segments. 13 Relatively equal cluster sizes is not a criterion for success, however clusters above 35 cases is desirable, which is violated in cluster one (22 cases) and four (12 cases). Representativeness for these clusters might therefore be a problem. To validate the four cluster solution the sample was randomly split in two equal halves to investigate if they produced the same number 11 See appendix D table 10 for VIF measures 12 See appendix D table 11 and 12 for main study agglomeration schedule 13 See appendix D table 13 for ANOVA table

58 CHAPTER 4. DATA ANALYSIS 50 of clusters. Both halves did not show signs of multicollinarity and using average linkage with euclidean distance, produced four segments. 14 The agglomeration schedule in table 17 for second halve sample could be interpreted as both three and four cluster solution, but is decided to be a four cluster solution. This indicates some reliability in clustering price consciousness, however also exposes the cluster analysis subjective limitations and reliability problems (Mooi and Sarstedt, 2011) Describing the segments According to the ANOVA table in appendix D table 18 there is not a significant difference in means across the clusters with concern to sex and age range. Conversely result suggest that two clusters means or more differ significantly regarding their prior experience with mobile advertising. Furthermore significant different means was observed concerning behavioral intention items indicating that price consciousness could segment consumers intention to adopt mobile advertising. Excluding segment three from the ANOVA in table 19, resulted in insignificant differences in means across the remaining segments, indicating cluster three is significantly different from the others. This will be addressed in the discussion and the following will describe of each cluster. Segment one - Value seekers without effort This segment consists of 22 respondents, which is 9.5% of the sample, have an average age of 26.6 years and 66.2% of the segment are females. Regarding experience with mobile advertising, which differed across at least two segments, 45.45% had received mobile advertising. This segment showed high cluster centers for VS2 (5.03) and VS4 (5.46), indicating they believe in the value finding a real bargain and the satisfaction associated with making a good deal. Conversely the effort to achieve this sensation appears low with cluster centers for VS1 (2.90) and VS3 (2.51). The segment is therefore named value seekers without effort because they appreciate the benefits of value deals, however does not appear to search for better prices and take their favorite brand. Concerning behavioral intention this segment had cluster centers for the BI items between 2 and 2.53 which indicates these respondents does not intend to adopt mobile advertising in the future. 14 See appendix D table 16, 17 for agglomeration schedule and table 14, 15 for multicollinarity test

59 CHAPTER 4. DATA ANALYSIS 51 Segment two - The price conscious This was the largest segment with 139 respondents (60.17% of the sample), had an average age of 27,76, females constitute 64.02% and 56.8% had prior experience with mobile advertising. Regarding price consciousness, this segment showed the highest cluster centers with VS1 (5.74), VS2 (5.75), VS3 (5.51) and VS4 (5.78), showing they are the most price conscious in the sample. In addition to believing high savings can be gained, they also appeared willing to check prices in supermarkets and differ from their favorite brand. Concerning behavioral intention this segment had cluster centers for BI items in the range, indicating that they are more positive toward intention to adopt mobile advertising than the other segments. Nevertheless this range is still neutral or below. Segment three - Neutrals The third segment consisted of 58 respondents (25.1% of sample), had an average age of 28.6, 74.13% are females and 34.48% had prior experience with mobile advertising. This segment is regarded as neutrals because all their value seeker items are close to the middle of the scale; VS1 (4.71), VS2 (4.3), VS3 (3.8) and VS4 (4.46). Cluster centers for BI items is similar to segment one and four and in the range, indicating little intention of mobile advertising adoption. Segment Four - Premium spenders The forth segment was the smallest with 12 respondents (5.2% of sample), had an average age of 27.33, 66.6% females and 58.3% had experience with mobile advertising. This segment proved to be the least price conscious with cluster centers for value seeker items at VS1 (2.08), VS2 (2.5), VS3 (2.5) and VS4 (2.42), where they didn t think it was possible to save money by looking for a bargain. In addition they didn t appear to achieve satisfaction for making a good deal and concerning intention to adopt mobile advertising showed the lowest cluster centers for BI items ( ).

60 CHAPTER 5 Discussion This chapter will present the empirical findings and put it in the context of the theoretical framework and the literature review they were based on. The structure of this chapter will be according to the order of the constructs, discussing relationships and hypotheses from the first to the third level in the model. Thereafter the study limitations will be presented and the implications for mobile network operators (MNO) will be discussed. 5.1 Correlations with behavioral intention The results of the VB-SEM showed that the three antecedents of behavioral intention; attitude toward mobile advertising, subjective norm and perceived behavioral control had a significant relationship and explained 73.2% of the variance in behavioral intention. This were a satisfactory level compared to prior research and general recommendations for VB-SEM analysis. The relationships were all positive and significant, which supported hypothesis H1, H7 and H8, thereby producing the same result as in prior literature (Tabachnick and Fidell, 2007) The path estimates, in table 4.3, shows that attitude toward mobile advertising (0.5475) has the largest impact on behavioral intention followed by subjective norm (0.3321) and perceived behavioral control (0.1269). This indicates that one positive unit change in attitude would change behavioral intention with Compared to the literature no research was found investigating mobile advertising based on theory of planned behavior and its therefore difficult to verify the rankings of the constructs. As mentioned earlier the VB-SEM would underestimate correlations 52

61 CHAPTER 5. DISCUSSION 53 between latent variables indicating these weights might be even larger. Considering the four BI items 21.1% of the responses were above average and 78.9% neutral or below average, indicating that a minority might intend to adopt mobile advertising in the future. This does not indicate that 21.1% of the danish population would adapt mobile advertising, because intention is only an antecedent of behavior. Before the study, expectations was low regarding the attractiveness of this service, which is supported with these results, finding only a limited number of respondents with adoption intention. Results in the cluster analysis showed that no segment really intended to adopt mobile advertising. Segment two with the highest cluster center was only slightly above average at Antecedents of behavioral intention The literature review showed that identifying usage of mobile phones as determinants of adoption of mobile advertising would not be sufficient, because of its multifunction nature. The psychological factors was therefore investigated in the context of the following constructs Relationships for attitude This construct measured whether respondents had a favorable or unfavorable attitude toward mobile advertising and items A1 (2.45), A2(2.62) and A3 (2.52) showed average means on the five point scale. Approximately 17.7% of the responses for these items were above average and 48.2% below average. This indicates that a large part of the respondents evaluate mobile advertising negatively whereas 34.1% were neutral. The literature review found the following antecedents for attitude toward mobile advertising to provided the most consistent results from prior research: Entertainment, informativeness, credibility, irritation and personalisation. 73.5% variance of attitude toward mobile advertising was explained, which were a satisfactory level. Concepts such as consumers attitude toward advertising in general had conflicting or insignificant results and was therefore not investigated in this thesis. According to the path estimates, in table 4.3, the most affecting antecedents of mobile advertising is entertainment (0.3702) followed by informativeness (0.2616), credibility (0.1528), irritation ( ) and personalisation (0.1021). Findings for

62 CHAPTER 5. DISCUSSION 54 entertainment in this thesis showed high resemblance to prior research except for the research done by Jun and Lee (2007). Whether entertainment was cultural dependent which was suggested as the reason for these differing result could not be substantiated in this thesis (Tsang et al., 2004) (Xu, 2006) (Haghirian and Madlberger, 2005) (Zabadi et al., 2012) (Liu et al., 2012). Prior research found irritation to have the second smallest effect on mobile advertising. Personalisation was not investigated as a mediating factor in this thesis to reduce its influence on the other constructs. The construct was intended to measure the importance of intermediates ability to personalises effect on attitude toward mobile advertising, which proved to be the smallest among the investigated antecedents. Considering this is a different way of measuring personalisation it could be questioned whether this construct was valid and should be investigated further for more reliable measures. Concerning the remaining constructs, the importance vary to a degree making it difficult to make such observations and thereby verify the results. However, whether the construct has a negative or positive effect is confirmed from prior research(tsang et al., 2004) (Xu, 2006) (Haghirian and Madlberger, 2005) (Zabadi et al., 2012) (Liu et al., 2012). The hypothesis H2-H6 was consequently supported, however the last hypothesised relationship for this construct (H9b) was rejected showing insignificant effect. Hypotheses H9b was included in this thesis because the construct was found in research investigating relationship to attitude. It was expected to be insignificant, based on the considerations surrounding the trust and perceived behavioral control relationship Subjective norm Prior research indicated that subjective norm had a limited role when explaining behavioral intention with regard to mobile advertising. Because concepts such as misperceptions, network effects, self- and social identity expressiveness was investigated in situations not completely comparable with mobile advertising, they where not included in their full extend. Two items representing either self- or social identity expressiveness was included in addition to two items measuring subjective norm. These four items all contributed significantly to subjective norm and significantly affected behavioral intention with a weight of Prior research used in this thesis was not based on theory of planned behavior and the importance

63 CHAPTER 5. DISCUSSION 55 of subjective norm, compared to other antecedents of behavioral intention, was therefore not possible to clarify (Thorbjørnsen et al., 2007). The result from this thesis indicate that concepts found in other research areas might also affect mobile advertising and should be investigated further. In this case expressiveness might be important, however it depends on the information or entertainment that the individual find useful and could impress peers with Relationships with perceived behavioral control The literature review found perceived behavioral control having varying and insignificant impact on behavioral intention in prior studies. Conversely this thesis found a significant positive relationship supporting hypotheses H8, but having the lowest weight among behavioral intentions antecedents. Based on a low Cronbach Alpha score, item PBC4 that reflected self efficacy was excluded from the dataset. This indicated that self efficacy has no significant effect on perceived behavioral control which was expected, since receiving SMS and MMS messages isn t assumed to be a big challenge. More extensive research for self efficacy is needed to define its impact in the context of mobile advertising. Compared to the other endogenous constructs perceived behavioral control had a weak level variance explained with 14.95%, indicating that other variables not presented might affect this construct. Investigating perceived behavioral controls antecedents further will therefore be necessary to get better insight into this construct. This thesis found a significant positive relationship between perceived behavioral control and risk acceptance, which supported hypotheses H9a. Prior studies considered trust as a supplement to perceived behavioral control. This thesis assumed that trust was an antecedent, thereby only investigating one direction of the relationship. Trust was found to be the tradeoff between perceived risk and benefits, where lesser risk resulted in less trust required. Consumers opt out options and experience was therefore considered important, because it would reduce the risk associated with mobile advertising adoption. The items in the construct however did not reflect aspects of experience and opt out options. Regarding experience with mobile advertising, prior research found it to have an

64 CHAPTER 5. DISCUSSION 56 inverse relationship with importance of perceived behavioral control. The more consumers gets accustomed to the mobile as an advertising medium the less risk will be associated with adopting mobile advertising. Approximately 40% of respondents in this thesis had tried receiving mobile advertising, which is higher than the author expected. This might be an explanation for the limited effect perceived behavioral control had on behavioral intention. The construct is therefore expected to have a decreasing influence as consumers gets more experience, however this should be investigated further. 5.3 Segmentation The cluster analysis did not find any significant differences across segments for variables age and gender. In addition by excluding segment two in appendix D table 19 generated insignificant differences, indicating that segment one, three and four are similar, but significantly different from segment two. This is similar to prior research that found two significant differing clusters regarding the mediating effect of value seekers. The constructs value seekers had a significant mediating effect on, was not investigated in this thesis (Dickinger and Kleijnen, 2008). Another study found that price conscious consumers had a more positive attitude towards mobile advertising, which was also evident in appendix table 21, showing a significant difference between segments (Barutcu, 2007). The largest segment was the most price consciousness one, indicating that perception of business savvy could have affected these responses positive. Prior studies have found consumers to associate business savvy as an attractive label and therefore might have caused more respondents to get assigned in segment two (Ashworth et al., 2005). This argument is only suggested as a possible cause, where several other factors might have affected the outcome. Still the reasoning behind the business savvy effect is supported by research showing a higher degree of focus on discount products in Denmark compared to other European countries. The importance of discounts as a competition parameter for Danish grocery chains could be an indication of the Danish consumers price consciousness and thereby explain why its the largest segment, however no direct evidence for this is found (Danish Competition and Consumer Authority, 2012). The results in this thesis are considered reliable and valid, based on finding the same relationship as in prior research and the randomly split sample produced similar

65 CHAPTER 5. DISCUSSION 57 results. It was possible to significantly segment according to price consciousness and hypotheses H10 was therefore supported. 5.4 Limitations of the study The model met recommendations for reliability and validity measures and therefore provided one acceptable solution for intention to adopt mobile advertising. Because the VB-SEM is based on prediction, there might be other acceptable models to investigate this subject, indicating this model is merely a suggestion of how it could be. Considering the sample size in this thesis, clustering method was used to segment according to price consciousness. This method has problems regarding reliability and preferable the latent class analysis could have provided a more reliable result. The findings concerning segmentations should therefore be investigated further to make better and more reliable conclusions for this issue. The distribution of males and females was skewed, compared to prior research, where females was overrepresented. This might create bias, however considering the results was similar to prior research the bias is assumed to be small. Concerning the questionnaire design the value seeker items was not specified for certain products and respondents could therefore have different perspectives when answering these questions. This absence of a situation description might have created bias in the segmentation and clusters should therefore be tested further. These issues would create bias in the solution and should be considered when interpreting the result. The representativeness was limited by the methods used, where non-normal distribution, the sampling method and VB-SEM overestimating the loadings would create bias in the result. Contrary this thesis had a confirmatory design and found similar results from prior research indicating the results might contain some validity and reliability. 5.5 Practical implications for MNO s Considering MNO s as the intermediary, it is concerning that attitude toward mobile advertising is the largest component for behavioral intention. Assuming that MNO s doesn t have any control over the message content, it is alarming that

66 CHAPTER 5. DISCUSSION 58 entertainment and informativeness was the most influential antecedents for this construct. This in light of personalisation having little weight, which might indicate that respondents could accept getting irrelevant mobile advertisements. The MNO s would therefore have little possibilities to reduce the impact of informativeness and irritation, which Xu (2006) found to be affected by personalisation as the mediating factor. In addition perfect personalisation is assumed to be difficult to obtain in real life settings, reducing MNO s control even further. Subjective norms role for MNO s was difficult to clarify, based on this thesis findings and is recommended to be further investigated. Considering perceived behavioral control, consumers willingness to provide sensitive information could affect MNO s personalisation ability. This thesis does not provide any evidence concerning, which sensitive information they could acquire and other antecedents of perceived behavioral control should be investigated. Segmenting according to price consciousness would provide MNO s with questionable results. Assuming that cluster centers above average on behavioral intention items would determine actual behavior, the price conscious segment would not be quite small for MNO s. In contrast 24 respondents answered above average on all these items, which account for 10.38% of the sample and thereby maybe making the service more attractive to implement compared to the cluster centers results. It could therefore be questioned whether the appropriateness for MNO s to segment according to price consciousness is sufficient to measure the service attractiveness.

67 CHAPTER 6 Conclusion This thesis has investigated the psychological factors affecting mobile advertising adoption intention in Denmark, thereby filling the shortage of research within this area and contributing to MNO s understanding of a mobile advertising service. This has been investigated with a confirmatory design identifying the psychological factors in prior literature and testing these in a conceptual model based on the theory of planned behavior in Denmark. Danish consumers intention to adopt mobile advertising was found to have three significant positive antecedents with the following importance; attitude toward mobile advertising (0.5475), subjective norm (0.3321) and perceived behavioral control (0.1269). These constructs explained 73.2% of behavioral intention variance, which was considered satisfactory. The literature review revealed that entertainment, informativeness, credibility, irritation and personalisation had a significant relationship with attitude toward mobile advertising. These relationships was supported in this thesis, accepting hypotheses H1-H6 and explained 73.5% of the variance for attitude toward mobile advertising. Similar to some prior research entertainment was the most influential, however varying results of constructs importance made comparison with prior research difficult. The construct subjective norm was not investigated for any antecedents because prior research used was not completely comparable to the case of mobile advertising. Including items addressing self and social identity expressiveness contributed 59

68 CHAPTER 6. CONCLUSION 60 to the explanation of the construct in addition to two traditional items. Self and social identity expressiveness should therefore be investigated further as independent constructs in the context of mobile advertising, because this thesis found items reflecting these dimensions to have an effect in the proposed model. Perceived behavioral control had the smallest impact on behavioral intention and risk acceptance only explained 14.95% of its variance. This was a unsatisfactory level and indicated that other variables, not included in this thesis, could affect this construct. Investigating other dimensions of this construct therefore might be worthwhile for the understanding of perceived behavioral control in the context of mobile advertising. These results might be usable, when investigating mobile applications instead of SMS and MMS, which was assumed to have lower risk associated with adoption. The cluster analysis found four clusters, where at least two of these had significantly different means. Segmentation according to price consciousness was therefore possible and validated by the same results in the randomly split sample. According to the Danish Competition and Consumer Authority, danish consumers showed a higher focus on discount compared to other European countries, which might be the reason why the largest segment was the most price consciousness. These findings could be important for MNO s because it was found that the personalisation influence was low, indicating that consumers would accept getting irrelevant mobile advertising messages. This combined with consumers limited willingness to provide some sensitive information does not support MNO s potential role as an intermediary. In addition, the segmentation according to price consciousness could have questionable usability for MNO s to identify potential adopters. 6.1 Further research Further research within segmentation would benefit MNO s and give them a a better understanding of psychographic determinants and motivations for mobile advertising adopters. This could be achieved with a larger sample size thereby getting more reliable results with a latent class analysis. New research should also contain a qualitative investigation to clarify if danish consumers have unique psychological factors affecting their adoption and a investigation of actual behavior.

69 References Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision provesses, pages Amberg, M., Hirschmeier, M., and Wehrmann, J. (2004). The compass acceptance model for analysis and ecaluation of mobile services. International journal of mobile communications, vol 18, pages Amen, U. (2010). Consumer attitude towards mobile advertising. Interdisciplinary journal of contemporary research in business, vol 2 no 3, pages Ashworth, L., Darke, P., and Schaller, M. (2005). No one wants to look cheap: Tradeoffs between social disincentives and the economic and psychological incentives to redeem coupons. Journal of consumer psychology, vol 15 no 4, pages Bamba, F. and Barnes, S. (2007). Sms advertising, permission and the consumer: A study. Business process management journal, vol 13 no 5, pages Bandura, A. (1997). Self-efficacy: The exercise of control. Freeman. Barutcu, S. (2007). Attitudes towards mobile marketing tools: A study of turkish consumers. Journal of targeting measurement and analysis for marketing, vol 16, pages Basheer, A. and Ibrahim, A. (2010). Mobile marketing: examining the impact of trust, privacy concern and consumers attitude on intention to purchase. International journal of business and management, vol 5 no 3, pages Bauer, H., Barnes, S., Reichardt, T., and Neumann, M. (2005). Driving consumer acceptance of mobile marketing: a theoretical framework and emperical study. Journal of electronic commerce research vol 6 no 3, pages Blumberg, B., Cooper, D., and Schindler, P. (2008). McGraw-Hill higher eduction, second edition. Business research methods. 61

70 REFERENCES 62 Bruner, G. and Kumar, A. (2007). Attitude toward location-based advertising. Journal of interactive advertising, pages Clark, L. A. and Watson, D. (1995). Constructing validity: Basic issues in objective scale development. Psychological Assessment, vol 7 no 3, pages Constantiou, I., Damsgaard, J., and Knutsen, L. (2007). The four incremental steps toward advanced mobile service adoption: exploring mobile device user adoption patterns and marketing segmentation. Communications of the ACM, vol 50 no 6, pages Danish Competition and Consumer Authority (2012). Discount culture in the danish grocery market, may 31th. Davis, F. (1989). Perceived usefulness, perceived ease of use and user acceptance of information technology. MIS Quarterly, pages Davis, R., Sajtos, L., and Chaudhri, A. (2011). Do consumers trust mobile service advertising. Contemporary management research, pages Dawes, J. G. (2008). Do data characteristics change according to the number of scale points used? an experiment using 5 point, 7 point and 10 point scales. International journal of Market Research, vol 51 no 1, pages Dickinger, A., Haghirian, P., Murphy, J., and Scharl, A. (2004). An investigation and conceptual model of sms marketing. 37th Hawaii international conference on system sciences, pages Dickinger, A. and Kleijnen, M. (2008). Coupons going wireless: Determinants of consumer intention to redeem mobile coupons. Journal of interactive marketing, pages Doll, W., Hendrickson, A., and Deng, X. (1998). Using davis percieved usefulness and ease of use instruments for decision making: A confirmatory and multigroup invariance analysis. Decision science, vol 29 no 4, pages Drossos, D., Giaglis, G., Lekakos, G., Kokkinaki, F., and Stavraki, M. (2007). Determinants of effective sms advertising: An experimental study. Journal of interactive advertising, vol 7 no 2, pages Ducoffe, R. (1996). Advertising value and advertising on the web. Journal of advertising research, vol 36 no 5, pages

71 REFERENCES 63 Fishbein, M. and Ajzen, I. (1975). Belief, attitude, intention and behavior: An introduction to theory and research. Addison-Wesley. Google (2011). Our mobile planet: Denmark - understanding the mobile consumer. Haddon, L. (2001). Domestication and mobile telephony. Machines that become us, New Jersey, pages Haenlein, M. and Kaplan, A. (2004). Beginners guide to partial least squares analysis. Understanding statistics, vol 3 no 4, pages Haghirian, P. and Madlberger, M. (2005). Consumer attitude toward advertising via mobile devices - an empirical investigation among austrian users. ECIS Regensburg. Hair, J., Black, W., Babin, B., Anderson, R., and R.L.Tatham (2006). Multivatiate data analysis. Pearson prentice hall, sixth edition. Hair, J., Sarstedt, M., Ringle, C., and Mena, J. (2011). An assessment of the use of partial least squares structual equation modeling in marketing research. Academy of marketing science, vol 40, pages Hanley, M., Becker, M., and Martinsen, J. (2006). Factors influencing mobile advertising acceptance: Will incentives motivate college students to accept mobile advertisements? International journal of mobile marketing, pages 1 6. Heldbjerg, G. (2006). Grà ftegravning i metodisk perspektiv. Samfundslitteratur. Hoffman, D. and Novak, T. (1996). Marketing in hypermedia computer mediated environments: conceptual foundations. Journal of marketing, pages Hsu, T., Wang, Y., and Wen, S. (2006). Using the decomposed theory of planned behavior to analyse consumer behavioral intention towards mobile text message coupons. Journal of targeting measurement and analysis for marketing, vol 14 no 4, pages Hung, S., Ku, C., and Chang, C. (2003). Critical factors of wap services adoption: An empirical study. First workshop on knowledge economy and electronic commerce, pages

72 REFERENCES 64 Jayawardhena, C., Kuckertz, A., Karjaluoto, H., and Kautonen, T. (2009). Antecedents to permission based mobile marketing: An initial examination. European journal of marketing, vol 43 no 3, pages Jun, J. and Lee, S. (2007). Mobile media use and its impact on consumer attitude toward mobile advertising. International journal of mobile marketing, vol 2 no 1, pages Kahn, M. and Daim, K. (2010). Determinants of mobile advertising adoption: A cross-country comparison of india and syria. International journal of mobile marketing, vol 5 no 1, pages Katz, E., Hass, H., and Gurevitch, M. (1973). On the use of the mass media for important things. American sociological review, vol 38 no 2, pages Kim, B. and Han, I. (2009). What drives the adoption of mobile services? an approach from a value persepctive. Journal of technology, vol 24, pages Kim, M. J. and Jun, J. W. (2008). A case study of mobile advertising in south korea: Personalisation and digital multimedia broadcasting (dmb). Journal of targeting, measurement and analysis for marketing, vol. 16 no. 2, pages Kleijnen, M., Ruter, K., and Wetzels, M. (2004). Consumer adoption of wireless services: Discovering the rules while playing the game. Journal of interactive marketing, vol 18, pages Knutson, L., Constantiou, I., and Damsgaard, J. (2005). Acceptance and perceptions of advanced mobile services: Alterations during a field study. International conference on mobile business. Konana, P. and Balasubramanian, S. (2005). The social-economic-psychological model of technology adoption and usage: An application to online investing. Decision support systems, vol 39, pages Leek, S. and Christodoulides, G. (2009). Next-generation mobile marketing: How young consumers react to bluetooth-enabled advertising. Journal of advertising research, pages Leung, F. and Cheung, C. (2004). Consumer attitude toward mobile advertising. The tenth conference on information systems, pages Lin, C. (1996). The contribution of bumler and katz s uses and mass communication research. Journal of broardcasting and electronic media, vol 40, pages

73 REFERENCES 65 Liu, C., Sinkovics, R., Pezderka, N., and Haghirian, P. (2012). Determinants of consumer perceptions toward mobile advertising - a comparison between japan and austria. Journal of interactive marketing, vol 26, pages Matthieson, K. (1991). Predicting user intentions: Comparing the technology acceptance model with theory of planned behavior. Information system research, vol 2 no 3, pages McClatchey, S. (2006). Then consumption of mobile services by australian university students. International journal of mobile marketing, vol 1 no 1, pages 1 7. Merisavo, M., Kajalo, S., Karjaluoto, H., Virtanen, V., Salmenkivi, S., and Raulas, M. (2007). An empirical study of the drivers of consumer acceptance of mobile advertising. Journal of interactive advertising, vol 7 no 2, pages Mir, I. (2011). Consumers attitudes towards m-advertising acceptance: A crosssectional study. Journal of internet banking and commerce, vol 16 no 1, pages Mirbagheri, S. (2010). Sms advertising business model: toward finding vital elements of its value model. EABR and ETLC, pages Mooi, E. and Sarstedt, M. (2011). A concise guide to market research. Berlin: Springer. Muk, A. (2007). Consumers intentions to opt in to sms advertising. International journal of advertising, vol 26 no 2, pages Nysveen, H., Pedersen, P., and Thorbjørnsen, H. (2005). Intentions to use mobile services: Antecedents and cross-service comparisons. Journal of academy of marketing science, vol 33 no 3, pages Okazaki, S. (2007). Exploring gender effects in mobile advertising context: On the evolution of trust, attitudes, and recall. Sex roles, vol 57, pages Pagani, M. (2004). Determinants of adoption of third generation mobile multimedia services. Journal of interactive marketing, vol 18 no 3, pages Park, T., Shenoy, R., and Salvendy, G. (2008). Effective advertising on mobile phones: a literature review and presentation of results from 53 case studies. Behvaior and information technology, vol 27 no 5, pages

74 REFERENCES 66 Pedersen, P. (2005). Adoption of mobile internet services: An exploratory study of mobile commerce early adopters. Journal of organizational computing and electronic commerce, vol 15 no 2, pages Pedersen, P. and Ling, R. (2003). Modifying adoption research for mobile internet service adoption: Cross-disciplinary interactions. 36th Hawaii international conference on system science, pages Pelsmacker, P., Geuens, M., and Bergh, J. (2010). Marketing communications - A european perspective. Pearson education limited, forth edition. Phelps, J., Nowak, G., and Ferrell, E. (2000). Privacy concerns and consumer willingness to provide personal information. Journal of public policy and marketing, vol 19 no 1, pages Reinhardt, N. (2009). Færre reklamepenge til mobilekunderne. mobilsiden.dk, pages Rettie, R., Grandcolas, U., and Deakins, B. (2005). Text message advertising: Response rates and brand effects. Journal of targeting, measuring and analysis for marketing, vol 13 no 4, pages Ruggiero, T. (2000). Uses and gratifications theory in the 21st century. Mass communication and society, vol 3 no 1, pages Saadeghvaziri, F. and Hosseini, H. (2011). Mobile advertising: An investigation of factors creating positive attitude in iranian customers. African journal of business, vol 5 no 2, pages Salo, J. and Tähtinen, J. (2005). Retailer use of permission-based mobile advertising. Advances in electronic marketing, pages Shankar, V., Venkatesh, A., Hoacker, C., and Naik, P. (2010). Mobile marketing in retailing environment: Current insights and future research avenues. Journal of interactive marketing, pages Shavitt, S., Lowrey, P., and Haefner, J. (1998). Public attitude toward mobile advertising: More favorable than you might think. Journal of advertising, pages Soroa-Koury, S. and Yang, K. (2010). Factors affecting consumers responses to mobile advertising from a social norm theoretical perspective. Telematics and informatics, vol 27, pages

75 REFERENCES 67 Sultan, F., Rohm, A., and Gao, T. (2009). Factors influencing consumer acceptance of mobile marketing: A two country study of youth markets. Journal of interactive marketing, vol 23, pages Swanson, S., Lindenberg, K., Bauer, S., and Crosby, R. (2012). A monte carlo investiation of factors influencing latent class analysis: An application to eating disorder research. International journal of eating disorders, vol 45 no 5, pages Tabachnick, B. and Fidell, L. (2007). Using multivariate statistics. Pearson international edition, fifth edition. Tähtinen, J. (2006). Mobile advertising or mobile marketing. a need for a new concept? Frontiers of e-business research, pages Taylor, S. and Todd, P. (1995). Understanding information technology usage: A test of competing models. Information systems research, vol 6 no 2, pages Teo, T. and Pok, S. (2003). Adoption of wap enabled mobile phones among internet users. The international journal of management science, vol 31, pages Thilmany, D. (2008). What are the niche markets? what advantages do they offer. Western center for risk management education, pages 1 6. Thorbjørnsen, H., Pedersen, P., and Nysveen, H. (2007). "this is who i am": Identity expressiveness and the theory of planned behavior. Psychology and marketing, vol 24 no 9, pages Tsang, M., Ho, S., and Liang, T. (2004). Consumer attitudes toward mobile advertising: an empirical study. International journal of electronic commerce, vol 4 no 3, pages Ünal, S., Ercis, A., and Keser, E. (2011). Attitudes towards mobile advertising - a research to determine the difference between the attitudes of youth and adults. Procedia social and behavioral sciences, vol 24, pages Venkatesh, V. and Davis, F. (2000). A theoretical extension of the technology acceptance model: four longitudinal field studies. Management science, vol 46 no 2, pages Wang, C., Zhang, P., Choi, R., and D Eredita, M. (2002). Understanding consumers attitude toward advertising. Eight americas conference on information systems, pages

76 REFERENCES 68 Wang, K. and Lin, C. (2012). The adoption of mobile value-added services: Investigating the influence of is quality and percieved playfulness. Managing service quality, vol 22 no 2, pages Watson, R., Pitt, L., Berthon, P., and Zinkhan, G. (2002). U-commerce: Expanding the universe of marketing. Journal of the academy of marketing science, vol 30 no 4, pages Xu, D. (2006). The influence in affecting consumer attitude toward mobile advertising in china. Journal of computer information system, pages Zabadi, A., Shura, M., and Elsayed, E. (2012). Consumer attitudes toward sms advertising among jordanian users. International journal of marketing studies, vol 4 no 1, pages Zhang, J. and Mao, E. (2008). Understanding the acceptance of mobile sms advertising for young chinese consumers. Psychology and marketing, vol 25 no 8, pages Zhu, G., Sangwan, S., and Lu, T. (2010). A new theoretical framework of technology acceptance and empirical investigation on self-efficacy-based value adoption model. Nankai business review, vol 1 no 4, pages

77 List of Appendices A Mail correspondence with Janus Grubbe, Wooha B The Questionnaire C Pretest statistics D Main study statistics

78 A. Mail correspondence with Janus Grubbe, Wooha 70

79 B. The Questionnaire 71

80 List of Appendices 72 Figure B.1: The questionnaire for main study Formålet med denne undersøgelse er at finde ud af om danskere er interesserede i at modtage mobile reklamer. Mobile reklamer vil i denne undersøgelse omfatte reklamer du modtager på enten SMS eller MMS. Der er ingen rigtige eller forkerte svar; Jeg er udelukkende interesseret i din ærlig mening om mobile reklamer. Nogle af spørgsmålene kan virke ens, men alle har hver sin funktion der belyser et bestemt område indenfor mobile reklamer. Alle informationer vil blive behandlet fortroligt og kun benyttet til denne undersøgelse. Køn (1) q Mand (2) q Kvinde Hvad er din alder? Har du modtaget mobile reklamer før? (1) q Ja (2) q Nej Hvad er din holding til følgenede statements? Meget god ide God ide Hverken / eller Dårlig ide Meget dårlig ide At modtage mobile reklamer ville være en (5) q (4) q (3) q (2) q (1) q Meget kolgt Klogt Hverken / Tåbeligt eller Meget Tåbeligt At modtage mobile reklamer ville være (5) q (4) q (3) q (2) q (1) q Meget Værdifuldt Hverken / Værdifuldt Værdiløst eller Meget værdiløst At modtage mobile reklamer ville være (5) q (4) q (3) q (2) q (1) q

81 List of Appendices 73 Hvor enig er du i følgende udsagn? Meget uenig Uenig Delvis uenig Hverken/ Delvis eller enig Enig Meget enig Jeg tror at mobile reklamer ville være hyggelige (1) q (2) q (3) q (4) q (5) q (6) q (7) q Jeg tror at mobile reklamer ville være underholdende Jeg tror at mobile reklamer ville være spændende Jeg tror at mobile reklamer ville kunne levere information på det rette tidspunkt Jeg tror at mobile reklamer vil kunne levere relevant information Jeg tror at mobile reklamer vil kunne levere information om et produkt eller service som jeg er interesseret i. (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q Hvor enig er du i følgende udsagn? Meget uenig Uenig Delvist uenig Hverken Delvist / eller enig Enig Meget enig At modtage mobile reklamer ville være irriterende Jeg tror mobile reklamer ville forstyrre min hverdag unødvendigt Jeg tror mængden af mobile reklamer vil blive overvældende En reklame i avisen er ligeså gældende som en reklame på mobilen Man ville kunne stole på de tilbud, der kommer på mobil telefonen (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q Mobile reklamer vil kunne påvirke mig (1) q (2) q (3) q (4) q (5) q (6) q (7) q Jeg synes mobile reklamer er troværdige (1) q (2) q (3) q (4) q (5) q (6) q (7) q Jeg har tillid til mobile reklamer (1) q (2) q (3) q (4) q (5) q (6) q (7) q

82 List of Appendices 74 Meget uenig Uenig Delvist uenig Hverken Delvist / eller enig Enig Meget enig Jeg synes mobile reklamer er pålidelige (1) q (2) q (3) q (4) q (5) q (6) q (7) q Hvor enig er du i følgende udsagn? Meget uenig Uenig Delvis uenig Hverken / eller Delvis enig Enig Meget enig Jeg tror at et reklame bureau ville sende mig relevante reklamer hvis jeg fortalte om mine interesser Jeg tror at et reklame bureau ville sende mig relevante reklamer på de rigtige tidspunkter Jeg tror at et reklame bureau ville sende for mange reklamer der ikke ville være relevante Jeg vil kunne imponere folk, der er vigtige for mig (fx familie, venner og kollegaer) med informationerne fra mobile reklamer Folk der er vigtige for mig (fx familie, venner og kollegaer) ville anse brugen af mobile reklamer som klogt Folk der er vigtige for mig (fx familie venner og kollegaer) ville anse mobile reklamer som nyttigt Jeg kan fremstå som en dygtig shopper for folk der er vigtige for mig (fx familie, venner og kollegaer) hvis jeg brugte mobile reklamer (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q Hvor enig er du i følgende udsagn? Meget uenig Delvis Hverken Delvis Uenig uenig / eller enig Enig Meget Enig Jeg vil kunne bestemme hvilke typer mobile (1) q (2) q (3) q (4) q (5) q (6) q (7) q

83 List of Appendices 75 Meget uenig Delvis Hverken Delvis Uenig uenig / eller enig Enig Meget Enig reklamer jeg modtager Jeg vil nemt kunne kontrollere hvor mange mobile reklamer jeg modtager Jeg vil nemt kunne annullere tilladelsen til at sende mobile reklamer Jeg ville give personlig information (som adresse) til en hjemmeside for at modtage en lille gave Jeg ville give personlig information (som adresse) til en hjemmeside for at indgå i en konkurrence Jeg ville give personlig information (som adresse) til en hjemmeside for at modtage rabatter i fremtidige køb (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q Hvor enig er du i følgende udsagn? Meget Uenig Uenig Delvis uenig Hverken Delvis / eller enig Enig Meget enig Jeg er villig til at modtage mobile reklamer (1) q (2) q (3) q (4) q (5) q (6) q (7) q Jeg ville bruge mobile reklamer til at finde gode tilbud som supplement til almindelige reklamer For at holde mig up to date har jeg tænkt mig at modtage mobile reklamer Jeg tjekker priserne i butikkerne for at få det bedste tilbud Man kan spare mange penge ved at lede efter røverkøb (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q (1) q (2) q (3) q (4) q (5) q (6) q (7) q Jeg har favorit mærker, men for det meste køber jeg (1) q (2) q (3) q (4) q (5) q (6) q (7) q det som er på tilbud

84 List of Appendices 76 Meget Uenig Uenig Delvis uenig Hverken Delvis / eller enig Enig Meget enig Udover de penge jeg spare gør det mig glad at lave en god handel (1) q (2) q (3) q (4) q (5) q (6) q (7) q Ekstremt Usandsynligt Meget Usandsynligt Usandsynligt Neutral Sandsynligt Meget Sandsynligt Ekstremt Sandsynligt Hvor sandsynligt er det at du vil bruge mobile reklamer i fremtiden? (1) q (2) q (3) q (4) q (5) q (6) q (7) q Mange tak fordi du deltog i min undersøgelse, hvis du har yderligere kommentarer, er du meget velkommen til at skrive dem her

85 List of Appendices 77 Table 1: Overview of questionnaire items and sources Construct Attitude Entertainment Informativeness Irritation Credibility Personalisation Measure name A1 A2 A3 E1 E2 E3 INFO1 INFO2 INFO3 IR1 IR2 IR3 IR4 CR1 CR2 CR3 New CR3 PER1 PER2 PER3 Items At modtage mobile reklamer ville være en: dårlig/god ide At modtage mobile reklamer ville være: tåbeligt/klogt At modtage mobile reklamer ville være: værdiløst/værdifuldt Jeg tror at mobile reklamer ville være hyggelige Jeg tror at mobile reklamer ville være underholdende Jeg tror at mobile reklamer ville være spændende Jeg tror at mobile reklamer vil kunne levere information om et produkt eller service som jeg er interesseret i Jeg tror at mobile reklamer vil kunne levere information på det rette tidspunkt Jeg tror at mobile reklamer vil kunne levere relevant information At modtage mobile reklamer ville være irriterende Jeg tror mobile reklamer ville forstyrre min hverdag unødvendigt Jeg synes reklamer kan tale ned til folk Jeg tror at mængden af mobile reklamer vil blive overvældende En reklame i avisen er ligeså gældende som en reklame på mobilen Man ville kunne stole på de tilbud, der kommer på mobil telefonen Mobile reklamer kan virke overbevisende Mobile reklamer ville kunne påvirke mig Jeg tror at et reklame bureau ville sende mig relevante reklamer hvis jeg fortalte om mine interesser Jeg tror at et reklamer bureau ville sende mig relevante reklamer på de rigtige tidspunkter Jeg tror at et reklame bureau ville sende for mange reklamer der ikke var relevante Sources (Thorbjørnsen et al., 2007) Self created (Liu et al., 2012) (Zabadi et al., 2012) (Tsang et al., 2004) Self created (Liu et al., 2012) (Saadeghvaziri and Hosseini, 2011) Self Created

86 List of Appendices 78 Construct Subjective Norm Perceived behavioral control Risk Acceptance Behavioral Intention Value seeker Demography New Credibility Measure name SN1 SN2 SN3 SN4 PBC1 PBC2 PBC3 PBC4 RA1 RA2 RA3 BI1 BI2 BI3 BI4 VS1 VS2 VS3 VS4 DE1 DE2 DE3 CR4 CR5 CR6 Items Jeg vil kunne imponere folk der er vigtige for mig (fx familie, venner og kollegaer) med informationerne fra mobil reklamer Folk der er vigtige for mig (fx familie, venner og kollegaer) ville anse brugen af mobile reklamer som klogt Folk der er vigtige for mig (fx familie, venner og kollegaer) anser mobile reklamer som nyttigt Jeg kan fremstå som en dygtig shopper for folk der er vigtige for mig (fx familie, venner og kollegaer), hvis jeg bruger mobile reklamer Jeg vil kunne bestemme hvilke typer mobile reklamer jeg modtager Jeg vil nemt kunne kontrollere hvor mange mobile reklamer jeg modtager Jeg vil nemt kunne annullere tilladelsen til at sende mobile reklamer til mig Der er få forhindringer for mig i forhold til at benytte mobile reklamer Jeg ville give personlige information (som adresse) til en hjemmeside for at modtage en lille gave Jeg ville give personlige information (som adresse) til en hjemmeside for at indgå i en konkurrence Jeg ville give personlige information (som adresse) til en hjemmeside for at modtage rabatter i fremtidige køb Jeg er villig til at modtage mobile reklamer Jeg ville bruge mobile reklamer til at finde gode tilbud som supplement til almindelige reklamer For at holde mig up to date har jeg tænkt mig at modtage mobile reklamer Hvor sandsynligt er det du vil bruge mobile reklamer i fremtiden Jeg tjekker priserne i butikkerne for at få det bedste tilbud Man kan spare mange penge ved at lede efter røverkøb Jeg har favorit mærker, men for det meste køber jeg det som er på tilbud Udover de penge jeg sparer gør det mig glad at lave en god handel Alder Køn Har du modtaget mobile reklamer før? Jeg synes mobile reklamer er troværdige Jeg har tillid til mobile reklamer Jeg synes mobile reklamer er pålidelige Sources Self Created (Bauer et al., 2005) Self Created (Jayawardhena et al., 2009) (Dickinger et. al. 2008) (Sultan et al., 2009) (Xu, 2006) Self Created (Dickinger and Kleijnen, 2008) Self Created (Liu et al., 2012)

87 C. Pretest statistics Table 2: Demographic descriptives of pretest Variable Respondents Percent Sex Male % Female % % Age % 31< % Tried mobile advertising Yes 55 41% No 78 59% Total % 79

88 List of Appendices 80 Table 3: Descriptive statistics for pretest data Item Mean Deviation Skewness Std Z Kurtosis Std Z statistic statistic statistic error Skewnessstatistic error kurtosis A A A E E E INFO INFO INFO IR IR IR IR CR CR CR PER PER PER SN SN SN SN PBC PBC PBC PBC RA RA RA BI BI BI VS VS VS VS BI NOTE: Z values beyond plus/minus 2,58 is marked with red and is either significantly skewed or have significant kurtosis (N=133). They are calculated respectively: Z skewness = skewness 6 N and Z kurtosis = kurtosis 24 N

89 List of Appendices 81 Table 4: Cross loadings for pretest data after deletion of CR1, PBC4 and IR3. ATT PBC BI CR E INFO IR RA PER SN A A A BI BI BI BI CR CR E E E INFO INFO INFO IR IR IR PBC PBC PBC PER PER Per3 rec RA RA RA SN SN SN SN NOTE: ATT=attitude, PBC= Perceived behavioral contol, BI=Behavioral intention, CR=Credibility, E=Entertainment, INFO=Informativeness, IR=Irritation, RA=Risk Acceptance, PER=Personalization, SN= Subjective norm. Values under 0,7 is marked with yellow.

90 List of Appendices 82 Table 5: Outer loadings for pretest data after deletion of CR1, PBC4 and IR3. ATT PBC BI CR E INFO IR RA PER SN A A A BI BI BI BI CR CR E E E INFO INFO INFO IR IR IR PBC PBC PBC PER PER Per3 rec RA RA RA SN SN SN SN NOTE: ATT=attitude, PBC= Perceived behavioral contol, BI=Behavioral intention, CR=Credibility, E=Entertainment, INFO=Informativeness, IR=Irritation, RA=Risk Acceptance, PER=Personalization, SN= Subjective norm. Values under 0,7 is marked with yellow.

91 D. Main study statistics Table 6: Demographic descriptives of main study Variable Respondents Percent Sex Male % Female % ,2% Age % 31< % Tried mobile advertising Yes % No % Total % 83

92 List of Appendices 84 Table 7: Descriptive statistics for main study data Item Mean Deviation Skewness Std Z Kurtosis Std Z statistic statistic statistic error Skewnessstatistic error kurtosis A A A BI BI BI BI CR CR CR CR CR E E E INFO INFO INFO IR IR IR newcr PBC PBC PBC PER PER PER RA RA RA SN SN SN SN VS VS VS VS NOTE: Z values beyond plus/minus 2.58 is marked with red and is either significantly skewed or have significant kurtosis (N=231). They are calculated respectively: Z skewness = skewness 6 N and Z kurtosis = kurtosis 24 N

93 List of Appendices 85 Table 8: Outer loadings for main study data after deletion of CR1 and PER3. ATT BI CR E INFO IR PBC PER RA SN A A A BI BI BI BI CR newcr CR CR CR E E E INFO INFO INFO IR IR IR PBC PBC PBC PER PER RA RA RA SN SN SN SN NOTE: ATT=attitude, PBC= Perceived behavioral contol, BI=Behavioral intention, CR=Credibility, E=Entertainment, INFO=Informativeness, IR=Irritation, RA=Risk Acceptance, PER=Personalization, SN= Subjective norm. Values under 0.7 is marked with yellow.

94 List of Appendices 86 Table 9: Cross loadings for main study data after deletion of CR1 and PER3. ATT BI CR E INFO IR PBC PER RA SN A A A BI BI BI BI CR newcr CR CR CR E E E INFO INFO INFO IR IR IR PBC PBC PBC PER PER RA RA RA SN SN SN SN NOTE: ATT=attitude, PBC= Perceived behavioral contol, BI=Behavioral intention, CR=Credibility, E=Entertainment, INFO=Informativeness, IR=Irritation, RA=Risk Acceptance, PER=Personalization, SN= Subjective norm. Values under 0.7 is marked with yellow.

95 List of Appendices 87 Table 10: Multicollinarity test of VS items Collinearity statistics Tolerance VIF VS VS VS NOTE: Dependent variable: VS3. The VIF should be less than 3. Table 11: Agglomeration schedule average linkage NOTE: N=231 view of the last stages in agglomeration schedule using average linkage and euclidean distance

96 List of Appendices 88 Table 12: Agglomeration schedule centroid NOTE: N=231 view of the last stages in agglomeration schedule using centroid and squared euclidean distance Table 13: Main study ANOVA four clusters solution

97 List of Appendices 89 Figure D.2: Graph of cluster centers for 4 cluster solution NOTE: The parentheses provide the size of the cluster while the y axis is the 1-7 likert scale Figure D.3: Graph of cluster centers for 3 cluster solution NOTE: The parentheses provide the size of the cluster while the y axis is the 1-7 likert scale

98 List of Appendices 90 Table 14: Main study split 1. halve multicollinarity test Table 15: Main study split 2. halve multicollinarity test Table 16: Agglomeration schedule 1. halve sample NOTE: N=115 view of the last stages in agglomeration schedule using average linkage and euclidean distance