SMS Advertising in Tanzania: Factors Affecting Consumer Attitudes

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1 IST-Africa 2013 Conference Proceedings Paul Cunningham and Miriam Cunningham (Eds) IIMC International Information Management Corporation, 2013 ISBN: SMS Advertising in Tanzania: Factors Affecting Consumer Attitudes Deo SABOKWIGINA 1, Gabriel MALIMA 2, and Hosea MPOGOLE 3 Iringa University College, Box 200, Iringa, Tanzania Tel: (+255) , Fax: + (0) sabokwigina@yahoo.com, gmalima@tumaini.ac.tz, hmpogole@tumaini.ac.tz Abstract: The rapid increase of the use of mobile phones has created a new channel for marketing. The use of Short Messaging Service (SMS) has become more important to access potential customers through their mobile phones. The new advertising platform, which is termed mobile advertising, refers to any communication about products, services, and ideas using mobile phones for promotional purposes. This study examines the factors that affect consumer attitudes towards SMS advertising and the relationship between these factors and attitude. The study used a survey of Tanzanian University students who are mobile phones users. The results, conducted on 260 students who are mobile phone users, showed that Informativenss and credibility were found to uniquely, significantly and positively influence the prediction customers attitude towards advertising SMSs (β=0.227, p=0.000) and (β= 0.129, p=0.022) respectively while irritating and frequency were found to uniquely, significantly and negatively influence the prediction customers attitude towards advertising SMSs (β= , p=0.000) and(β=0.265, p=0.000). Keywords: Short Messaging Service (SMS), Mobile advertising, informativeness, irritation, credibility, entertainment, personalization, Consumer attitudes 1. Introduction The substantial developments in information and communications technology have created new media channels for advertising and marketing. One of the channels of communications used by marketers is the Short Message Service (SMS). The success of a new medium such as SMS advertising relies on the acceptance of the medium by consumers. A number of studies have been conducted with regard to consumer attitudes towards mobile or SMS advertising [1], [2]. However, the majority of the studies have been conducted in foreign countries where the findings, due to cultural differences and differences in the adoption of technology, may not directly apply to Tanzanian consumers [3]. Various studies have demonstrated the importance of mobile advertising to advertisers. Mobile marketing is one of the cheapest means of advertisements [4] [5]. Also, people keep mobiles with them, and hence, as soon as people get messages on their cell phones they instantly check their messages [6]. Moreover, mobile marketing saves much time [7]. Another advantage of SMS is that while even in conference, or in such environments as in a restaurant, café, bank, travel agency office, and so on, users are able to send and receive brief messages unobtrusively, while enjoying privacy. However, while much is known about the benefits of mobile advertising to marketers, little is known on how consumers perceive SMS advertising, and more so in Tanzanian context. Before this new medium is effectively used to communicate with Tanzanian consumers, we need to understand how consumer attitudes towards SMS advertising need to be clarified. How do consumers perceive the SMS-based advertisements? What factors are likely to affect the consumer attitude toward SMS advertising? A better understanding of Copyright 2013 The authors Page 1 of 9

2 these issues is critical to the effective use of mobile advertising. It is especially important to know how Tanzanian consumers feel about the ads delivered to their mobile phones. 1.1 Advertising Media Kotler defines advertising as any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor [8]. Some of the famous ways of media advertising include- television, newspaper, Internet, magazines, radio, and mobile devices [3]. Whatever the media an advertiser chooses, one needs to keep in mind certain essential aspects of advertising that help in attracting audiences. These include but not limited to (i) appropriate content which is entertaining and informative about the benefits of the product. Also, (ii) the content should be focused to a specific target group of customers [3]. 1.2 Attitude Towards Advertising in General Attitude toward an ad is defined as a learned predisposition to respond in a consistently favourable or unfavourable manner toward advertising in general [9]. Literature in advertising and Information Systems suggests that advertising in both traditional media and the Internet is either easily ignored by the audience or is perceived to have little value [10]. For instance, Zanot found that attitudes toward advertising became increasingly negative after the 1970s [11]. Other studies, for example, Alwitt, and Prabhaker provided more evidence of the unfavourable public attitude toward advertising [12]. Also, Mittal showed an unfavourable public attitude toward advertising [13]. Nearly half of Mittal s respondents from a regional consumer panel said they did not like television advertising, while less than one-quarter said they like it. A number of other studies have also pointed to a general mistrust of advertising [14,12,13] However, the above findings are not sufficient to deny the value of advertising as a vehicle of conveying information to the intended audiences [10]. Indeed, more recent studies now find favourable attitudes toward advertising in general. For instance, Bauer and Greyser reported that more people held favourable attitudes toward advertising than unfavourable attitudes [15]. Studies have also shown that there is a significant correlation between favourable attitudes toward advertising and respondents rating of specific advertisements as being annoying, likeable, enjoyable etc. [15]. More recently, studies have focused on attitude structures. Elliot and Speck investigated six major media (TV, broadcasting, magazines, newspapers, Yellow Pages, and direct mail) and found that television and magazines exhibited the highest level of ad-related communication problems, such as perceived clutter, hindered search, and disruption, which were related to less favourable attitudes and greater ad avoidance [16]. This paper focuses on consumers perceptions of SMS advertising, not their perceptions on any other form of advertising. 1.3 Attitude Towards Mobile Advertising Mobile advertising can be categorized into two basic types: pull and push [17]. Providers can take the form of pull-based (user request information and services based on their locations) or push-based (location-sensitive content is automatically sent to users based on their location) advertising [17]. In developing countries like Tanzania, the most common practice is the push-based mobile advertising whereby some mobile operators promote their services by sending SMS text messages to users according to their location. Push advertising without any filtering is something like spam which might be perceived as annoying or irritating [18]. Copyright 2013 The authors Page 2 of 9

3 Based on the models of internet advertising, Bracket and Carr developed an integrated Web advertising attitude model [19]. The new model, as shown in Figure 1, is based on the premise that the perceived entertainment, informativeness, irritation, and credibility of an advertisement affect the way consumers evaluate it. Besides these four variables, the model also includes personalization and relevant demographic variables. Credibility Personalization Informativeness Irritability Entertainment Attitude towards SMS advertising via Mobile phone Frequency of receiving the SMS Figure 1: Antecedents of Attitude toward SMS advertising via mobile devices (adapted from Bracket and Carr [18]) Bracket and Carr s model has been adopted for mobile advertising by Tsang, Ho, and Liang [20]. Tsang, Ho, and Liang use entertainment, informativeness, irritation, credibility, and permission as variables that affect attitudes. Entertainment, informativeness, and credibility have positive correlations with attitudes, while irritation has a negative correlation [1]. In addition, Tsang, Ho, and Liang note that it is not a good idea to send SMS advertisements without prior permission from the related target audience (pushbased). There are arguments about personalization and frequency of receiving the advertising SMS. Robins [21] argued that consumers would like the content of mobile services to be customized to their interests and relevant for them. Personalization of mobile advertising can enable marketers to reach their potential customers in a very individual way and thus increase the relationship with the consumers. However other research argued that Frequency of exposure to the advertising SMS affect customers attitude towards this type of advertisement [22]. Regarding the above arguments, personalization and frequency of receiving the advertising SMS were added as variables in the model for this study. 2. Objectives The general objective of this research is to assess the consumer attitudes toward SMS advertising. Specifically, the study is aimed at the following objectives: a. To assess how the content of the text message (informativeness, irritating, credibility, personalization and intertainment) in an advertisement may affect consumer attitude toward SMS advertising via MPs. b. To assess how the frequency of receiving advert message might affect consumer attitude toward SMS advertising. c. To assess consumers demographic characteristics acceptance of SMS advertising in MPs In consideration of the above-mentioned objectives and in review of Bracket and Carr Model, the following hypotheses were developed: Copyright 2013 The authors Page 3 of 9

4 H1: Informativeness of an advertising message is positively correlated with overall attitude towards SMS advertising via MPs. H2: Consumers perceptions of the credibility of SMS advertisements are related to consumers overall attitudes towards SMS advertisements. H3: Irritation of an advertising message is negatively correlated to consumer s attitudes toward advertising value and overall attitude towards SMS advert via MPs H4: A high entertainment factor of SMS advertisement is positively correlated to consumers attitudes towards SMS advertising via MPs. H5: The frequency of receiving text message has negative effect on consumer attitude toward MP advertising. H6: Personalization of advertising SMS has positive effect on consumer s attitude towards SMS advertising via MPs 3. Methodology A field survey was conducted in 2012 to test the hypotheses. The survey utilized a questionnaire designed to collect data regarding consumer attitudes. A total of 280 questionnaires were distributed to Iringa University College students, and 260 of them were returned. The respondents included 165 males and 95 females. The following analyses were conducted; reliability test by using Cronbach s alpha test, Confirmatory Factor Analysis using Structural Equation Model and Multiple regression analysis. Cronbach s alpha test and multiple regression analysis were conducted using SPSS 16.0 and the Structural Equation Model was conducted using AMOS 21. Before testing the way the variables (constructs); entertainment, informativeness, irritation, credibility, personalization and frequency influence the dependable variables attitude towards SMS advertising via Mobile phone, reliability and validity of the scale was tasted. Cronbach s alpha (α) test was conducted to estimate the reliability of the predictor variables. Specifically, the internal consistency among the items measuring the aforementioned constructs was tested. The most agreeable limit is Cronbach s alpha 0.7. This reliability test indicated that all the constructs had Cronbach s α of above 0.7 (Table 1). Table 1: Cronbach s Alpha Test Results Construct Number of items Alpha Variable type Entertaining Predictor Informativeness Predictor Irritating Predictor Credibility Predictor Personalization Predictor Frequency Predictor Altitude Predictor Although all Constructs were above 0.7, reliability test suggested that deleting one personalization construct item would increase reliability from to 0.851, the item was deleted. Table 2: Cronbach s Alpha Test Results After Deletion of Item PES3 Construct Number of items Alpha Variable type Entertaining Predictor Informativeness Predictor Irritating Predictor Credibility Predictor Personalization Predictor Frequency Predictor Attitude Predictor Copyright 2013 The authors Page 4 of 9

5 To confirm the validity of the scale Confirmatory Factor Analysis (CFA) was run. Through the use of Structural Equation Model (SEM), CFA was conducted to determine how the model used fits the data collected. The path diagram displays the standardized regression weights (factor loadings) for the Construct and each of the observed making the construct. The squared multiple correlation coefficients describing the amount of variance the construct accounts for in the observed variables are also displayed in the path diagram. All the standardized regression weights (factor loadings) were above the 0.70 indicating very strong relationship between construct and items measuring the construct. Figure 2: Path Diagram The fit indices show how the model fit the data collected. The fit indices obtained were as follows; Chi-quire = , df=188 (p=0.000). This indicates poor fit. However the test is sensitive to the sample size hence interpretation relaying on Chi-squire might mislead [26], thus interpretation of the test relayed on the Absolute fit indices and Incremental fit indices. RMSEA is less than 0.08 and the relative chi - squire is both indicating the good fit. Moreover NFI (0.932), CFI (0.950) and NFI (0.909) indicated that the model fits the data collected. Copyright 2013 The authors Page 5 of 9

6 4. Technology Description Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It involves displaying text, graphic image and animated ads on data enabled mobile devices. Parissa and Sangyo define mobile advertising as the usage of interactive wireless media (such as cellular phones and pagers, cordless telephones, personal digital assistants, two-way radios, baby crib monitors, wireless networking systems, GPS-based locators and maps) to transmit advertising messages to consumers in form of time and location sensitive, personalized information with the overall goal to promote goods and services [23]. Usually, mobile advertising messages are transmitted via short message service (SMS). However, Varshney argues that as more wireless bandwidth will be available, content rich advertising involving audio, pictures, and video clips can be produced for individual users with specific needs, interests, and inclinations [24]. 5. Results Respondents involved in this study were University students. Most of the respondents came from the age group of years (85.5%), because it is a typical age of most University students in Tanzania. Other respondents were in the age group of years (10.8%), years (1.9%), below 20 years (1.5%) and 50 years and above group was smallest (0.4%). Table 3: Sample Characteristics Variable Categories Frequency Percentage (%) Gender Male Female Age Below 20 years years years years More than 50 Years Most of the respondents had the advertising SMSs. Most of them had received an average of four and more SMSs per week (54.2%), others had been receiving an average of one SMS per week (21.5%), three SMs per week (12.7%) and two SMSs per week (11.5%). Table 4: Exposure to advertising SMSs per week SMS per week Frequency Percentage (%) 1 per week per week per week and more per week Respondents were asked to indicate what actions they take after receiving the advertising SMSs. Most of the respondents indicated that they read the advertising SMSs they receive. About 45% said that they read the SMS and then decide either to keep or delete them. Others would normally read the SMSs immediately, some would read half way and delete while others would delete immediately without reading as shown in Table 3. The findings indicate that whether the attitude towards this type of advertising is positive or negative, it is still a one way of the advertising methods that reach the customers right away. Copyright 2013 The authors Page 6 of 9

7 Table 5: Action taken after receiving advertising SMSs Action Frequency Percentage (%) I read it immediately then delete I read it later then delete I read it then delete or keep it I read half and delete I delete immediately without even read it Table 6: Fit Indices Fit Indices Acceptable Threshould Level Obtained Indices Absolute Fit Relative χ 2 (χ 2 /df) 2:1-3:1 2:1 (2.069) RMSEA <0.08 = Good Fit Incremental Fit NFI > CFI > NNFI (TLI) > The results of the multiple regressions indicated that the six predictors explained 68.5 percent of the variation in attitude towards advertising SMSs (R 2 =.68.5, F=92.636, p=.000). Informativeness and credibility were found to uniquely, significantly and positively influence the prediction customers attitude towards advertising SMSs (β=0.227, p=0.000) and (β= 0.129, p=0.022) respectively while irritating and frequency were found to uniquely, significantly and negatively influence the prediction customers attitude towards advertising SMSs (β= , p=0.000) and (β=0.265, p=0.000). Other factors; entertainment and personalization were non-significant. Informativeness and credibility were significant and positive meaning that the increase of these factors lead into the increase of the favourable attitude of consumers towards advertising SMSs. Thus, hypotheses H1 and H2 were confirmed. Irritating and frequency were significant and negative meaning increase of these variables lead into the decrease of favourable attitude towards advertising SMSs. Thus, Hypotheses H3 and H5 were also confirmed. Entertainment and personalization were not significant factors for customers attitudes towards SMS adverts. Hence, hypotheses H4 and H6 were not confirmed. 6. Economic and Societal Benefits Mobile advertising is considered the next big thing for both advertisers and consumers. Marketers venturing in mobile advertising are entering a world of wide-open possibilities, albeit one where success metrics and creative standards remain in their infancy. Indeed, the greatest certainty about the world of mobile media is that new business models and technology innovations will continue to change the landscape: mobile media is not going away, and opportunities to tap into mobile devices for communicating with prospects and customers will only increase [24]. In developing countries like Tanzania, the mobile advertising platform is new and exciting, consumers are increasingly making use of mobile interactivity, and strong growth in mobile phone adoption will continue for several years. The importance of SMS advertising to business cannot be overstated. SMS Service helps businesses to communicate simultaneously with a large audience. It is the cheapest and most effective way of putting the message across to large groups of people. This service can also be used to spread awareness about a new product. A start- up company can leverage this method to compete with bigger businesses with more resources at their disposal. This method of advertising can also be used by the company in new scheme promotions, educating the existing client about product upgrades and new features [25]. Copyright 2013 The authors Page 7 of 9

8 We live in a new digital information age with improved communication methods, such as Facebook, Twitter, and other social networks that put you in immediate contact with your audience. Text Message marketing is one of them. Text message marketing is a technology more powerful than even s, Facebook and Twitter, especially in Tanzanian context. How many people in Tanzania have accounts? Among those who have s, how many open the spam s? How many Tanzanians use Twitter? Not only many Tanzanians possess mobile phones, but also, text messages have the biggest chance to be opened in a short time since most people have their mobile phones on them at all times. As such, SMS advertising is the new economic and effective way of marketing. 7. Conclusions The results of the hypothesis tests indicated that consumers perceptions of the entertainment value, informativeness and credibility of SMS advertisements positively correlate with the consumer attitudes towards SMS advertisements, while irritation of SMS advertisement and frequency were found to have a negative correlation with consumers attitudes toward SMS advertisements. Irritating SMS are regarded by consumers as unwanted. Also the more frequently consumers are exposed to SMS advertisements the more they become immune and regard these SMS as unwanted. A major finding is that consumers have fairly negative attitudes towards SMS advertisements. The negative attitude toward SMS advertising implies that marketers have a lot of work to do to make SMS advertising more attractive. The results indicate that attitude toward advertising via mobile devices strongly depends on message characteristics. The message characteristics need to be developed carefully. Marketers may use the findings to design mobile advertisements that create positive attitudes and avoid possible negative effects. While mobile advertising offers lots of benefits to practitioners, its low acceptance rate will hinder the success of mobile advertising campaigns. Based upon the consumers negative attitudes towards SMS advertisements, marketers need to recognize that SMS advertisements, although offering many benefits in terms of reaching the customers, may not be as effective in creating favourable attitudes towards the advertised product or service. Consumers with negative attitudes towards SMS advertisements may choose to ignore, and not pursue the information of the SMS advertisement. Marketers will find it difficult to create awareness of a product or service when using SMS advertisements to consumers with negative attitudes towards the medium. 8. Directions for Future Research Future researchers may consider linking the national culture with SMS advertising. Another angle could be analyzing the relationship between the level of economic development and attitude toward SMS advertising. References [1] Tsang, M., Ho, S. C. and Liang, T. P. (2004 ) Consumer attitudes toward mobile advertising: An empirical study,international Journal of Electronic Commerce, Vol. 8, No. 3, pp [2] Muk, A. (2007). Consumers intentions to opt in to SMS advertising. International Journal of Advertising, 26 (2), [3]Bose, T, K., Al Nahid, A., Islam, T, and Saha, R, K. (2005), SMS Advertising and its prospects in Bangladesh, Journal of Theoretical and Applied Information Technology, Vol 11, No.2, pp , [4] Tedeschi, B. ( 2007 ) Reaching more customers with a simple text message, The New YorkTimes,16July, 7/16/business/media/16ecom.html, retrieved 16 th July, [5] Zanton,E.(1981) Public attitudes toward advertising, in Hunt, K. (ed.), Advertising in a NewAge, Proeceedings of the Annual Conference fo the American Academy of Advertising, Brigham Young University Press, Provo, pp Copyright 2013 The authors Page 8 of 9

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