Introduction
Although the wireless internet attracts more and more interest from marketers and researchers, there is little empirical evidence of multinational corporations’ (MNCs) adoption of push type mobile advertising in global markets. The aim is to fill this research gap, by conducting empirical survey of perceptions of MNCs operating in Singapore regarding SMS based mobile advertising adoption. In what follows, the significant contributions of the study are first explained, and the relevant literature on mobile advertising is reviewed in terms of basic constructs. On this base, hypotheses are then formulated. After the methodology is explained in detail, the study findings are discussed and some important limitations are recognised. An empirical study of mobile advertising is important for three reasons. First, understanding a new information technology and its acceptance can help to reveal the underlying logic of practitioners’ strategic decisions in information management. While numerous studies have addressed conceptual issues and conducted general consumer surveys, there is little empirical research available in the literature on MNCs’ perceptions of and utilization of mobile advertising (Baldi and Thaung, 2002; Barnes and Huff, 2003; Maamria, 2001; Scuka, 2003). To the knowledge, research s almost non-existent and present study will be an interesting and important addition to the literature.
There is positive relationship between branding strategy and MNCs’ intention to use mobile advertising. There is positive relationship between facilitating conditions and MNCs’ intention to use mobile advertising. There is negative relationship between service costs and MNCs’ intention to use mobile advertising. There is negative relationship between regulatory control and MNCs’ intention to use mobile advertising. There is a negative relationship between cultural barriers and MNCs’ intention to use mobile advertising.
Literature review
The convergence of the internet and wireless technology in the late 1990s has produced a revolutionary telecommunication service: mobile internet. Global mobile operators are now accelerating technological transition from 2G to 3G, while by June 2004 active users of wireless data applications exceeded 115 million worldwide (Smith, 2004). Many brands and media companies include text message numbers in their advertisements to enable interested consumers to obtain more information. The mode of advertising takes advantage of valuable channels of wireless communication to enhance customer relationships, and to carry out direct marketing and promotional activities (Frolick and Chen, 2004). The adoption of SMS in marketing campaigns is sufficient to demonstrate that e-mail is the wireless application most used by consumers. Wireless internet offer effective channel for strengthening customer relationships by means of direct marketing and promotional activities (Frolick and Chen, 2004). In particular, mobile e-mail has been considered an effective tool to “enhance brand awareness, build or test customer loyalty, and develop or enhance demographic databases” (Mylonopoulos and Doukidis, 2003). In addition, firms using mobile e-mail campaigns can attract consumer attention and produce consumer responses to a much greater degree than other direct marketing channels, because such firms can engage in “one-to-one dialogue” with customers (Kavassalis et al., 2003). An experimental survey by Ericsson indicates that 60 per cent of samples liked receiving mobile advertising (Barnes, 2003). Lu et al. (2003) suggest that facilitating conditions is one of the most important determinants, along with the ease of using wireless internet. In this light, the integration of competing standards and fragmented systems across countries, cross-network support for SMS, and higher connection speeds are all necessary conditions for a wider transmission of mobile advertising. One of the unique features of the mobile internet is “the ability to track the user’s position, and tailor services and promotional offers accordingly” (Sadeh, 2002). Recent forecast estimates that, by 2010, worldwide revenue from location-based services is expected to exceed .6 billion, a substantial increase from 0 million in 2004 (Phillips, 2004). Mobile advertising would be not only costly but also inflexible, if MNCs had to adopt their mobile campaigns according to characteristic of Singapore market. From a broader perspective, the usage of mobile internet is necessarily associated with daily commuting from home to work by public transportation. Sending and receiving e-mail in the subway is practical and productive way of killing time, if voice calls are prohibited during travel (Baldi and Thaung, 2002).
Methodology Questionnaire items and measures
In the initial phase of questionnaire preparation, 30 question items will be created on the basis of the preceding literature review. This questionnaire will be pre-tested with local advertising practitioners in Singapore because pre-tests are considered a useful method of refining research instruments (Craig and Douglas, 2000). The construct will be measured on multiple item question based on five point semantic differential scale, from 1 (strongly disagree) to 5 (strongly agree). The intention to use mobile advertising was addressed by using self-assessment item, willing to use mobile advertising in Singapore, which respondents have to assess on five-point differential scale from 1 (strongly disagree) to 5 (strongly agree). The questionnaire to be in English. To interview senior marketing executives of MNCs’ subsidiaries operating in Singapore ( Nihon Keizai Shimbun, 2001). Two phase procedure adopted to identify target firms’ contact information. The first phase of this procedure consisted of identifying a list of MNCs operating in European markets. In this study, an MNC defined as a corporation that operates with production or marketing facilities in two or more countries.
Telephone survey
Usage of telephone interviewing in international marketing research has increased in recent years. The principal advantage of the telephone survey is the ability to cover a broadly distributed sample without requiring a field staff. It also offers a rapid way to obtain information with a relatively low non response rate (Craig and Douglas, 2000). In addition, the survey control over the item definitions was considered especially important because of the novelty of the research subject, expected that interviewers would be able to clarify doubts, or answer any questions that interviewees may have had regarding mobile communications. The study proposes basic constructs which are thought to influence MNCs’ decision making process on mobile advertising adoption. On this base, structured questionnaire are to be developed. The data are obtained by telephone interviews from 100 senior executives of MNCs’ in Singapore. Hierarchical regression analysis reveals that branding strategy, facilitating conditions, and security and costs are the strongest determinants of MNCs’ mobile advertising adoption. Several firms are the least willing to use mobile advertising, while their American counterparts are the most motivated in this regard. While SMS-based mobile marketing has been receiving an increasing attention from both academics and practitioners, there exists little empirical research on this area.
References
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