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MIP
30,4

Innovative mobile marketing

via smartphones
Are consumers ready?

418
Received 28 October 2011
Revised 1 February 2012
Accepted 13 February 2012

Ajax Persaud and Irfan Azhar

Telfer School of Management, University of Ottawa, Ottawa, Canada
Abstract
Purpose Smartphone adoption by consumers is increasing exponentially, and presents marketers
with many new opportunites to reach and serve customers. However, are consumers ready for mobile
marketing through their smartphones? This study aims to investigate consumers willingness to
accept marketing through their smartphones.
Design/methodology/approach The study is based on an online survey of 428 respondents. The
data is analyzed through ANOVA and regression analysis.
Findings The results indicate that consumers shopping style, brand trust, and value are key
motivations for engaging in mobile marketing through their smartphones. Further research should
focus on specific tactics marketers use to engage customers beyond marketing messages, that is, how
they engage customers in dialogue to build relationships, encourage purchases and build loyalty. This
could reveal how customers really want to engage in mobile marketing.
Research limitations/implications This research adds to the growing body of evidence on
acceptance of mobile marketing.
Practical implications This study found that successful enagement of customers in mobile
marketing requires that marketers focus their strategies and tactics around value creation; getting
customers to engage with their brand in an authentic way; and respecting customers shopping style,
i.e. engaging customers the way they want to be engaged. Marketers must listen to their customers
and develop appropriate strategies rather than simply adapting existing marketing strategies.
Originality/value The topic of mobile marketing through smartphones is important to both
marketing executives and marketing researchers. To date, this topic has attracted little research
attention and marketing executives are simply basing their decsions on anecdotal case studies and
reports in the popular press. This study contributes to fulfilling the need for research evidence.
Keywords Smartphone, Mobile marketing, Digital marketing, Purchase intention, Technology adoption,
Mobile technology, Consumer behaviour
Paper type Research paper

Marketing Intelligence & Planning

Vol. 30 No. 4, 2012
pp. 418-443
q Emerald Group Publishing Limited
0263-4503
DOI 10.1108/02634501211231883

Introduction
The mobile phone is one of a handful of consumer products to have gained global
acceptance within a relatively short period of time (Barnes and Scornavacca, 2004).
Today, the mobile phone is central to the lives of most consumers, including the lives of
young teens. It is a device many consumers cannot seem to do without; they always
have it on and check it almost everywhere they go. For these consumers, the mobile
phone is not only a personal device used to stay connected with friends and family, but
also an extension of their personality and individuality (Grant and ODonohoe, 2007;
Sultan and Rohm, 2005). For marketers, the widespread adoption of mobile phones
represents a huge marketing opportunity to reach and serve consumers anytime,
anywhere (Grant and ODonohoe, 2007; Roach, 2009; Barutcu, 2007). Paradoxically,

while consumers adopt mobile phones to enhance their private and social lives,
marketers see mobile phones as a marketing channel. These two very different
perspectives imply that marketers must ensure that their mobile phone marketing
strategies are not intrusive. Simply because mobile marketing is a relatively easy and
inexpensive way to reach consumers does not mean that consumers want to receive
marketing messages and offers on their phones. Therefore, a thorough understanding
of why and how consumers may want to participate in mobile marketing could help in
developing successful mobile marketing strategies. The aim of this paper is to deepen
our understanding of the factors that motivate consumers to engage in innovative
mobile marketing via their smartphones.
Mobile marketing is still in its early stages, and mobile marketing practices will
likely go through fundamental changes as the technology continues to evolve
(Karjaluoto et al., 2008). Research on mobile marketing is also in its early stages, but
the literature is growing. Prior research has focused on themes such as mobile phone
consumption (Andrews et al., 2005), consumer perceptions and attitudes towards
mobile marketing (Roach, 2009; Barutcu, 2007; Karjaluoto and Alatalo, 2007; Grant and
ODonohoe, 2007), consumer responsiveness (Heinonen and Strandvik, 2007), the role
of permission (Barnes and Scornavacca, 2004; Jayawardhena et al., 2009), and adopter
segments and cultural influences on adoption (De Marez et al., 2007; Muk, 2007).
Moreover, the literature to date is based on mobile marketing practices using the
classic mobile phone, with its very limited capability, compared to todays
smartphones, which have almost unlimited potential. As Barnes and Scornavacca
(2004) note, the majority of mobile marketing to date are SMS-based and uses simple,
push-based practices. However, the introduction of smartphones means that marketers
can develop a wider range of pull-based services and employ a larger set of marketing
techniques. Further, with the introduction of new technologies, such as radio frequency
identification tags (RFID) and e-wallets that easily integrate with smartphones,
marketers and consumers will be exposed to a whole range of marketing innovations
that were not possible with the classic mobile phone. For example, smartphone apps
such as Amazons Price Check and Google Shopper allow consumers in a physical
retail store to use their smartphone to enter the bar code of a product or take a photo of
a product and immediately receive price comparisons, customer reviews, discounts,
coupons, and other information on their smartphones while also looking at the product
in the store. The smartphone has the capability to transform consumers shopping
experiences and the value of marketing: consumers can now easily and quickly shop
across multiple channels (physical store, web-based, and mobile) with substantially
greater level of convenience, flexibility, efficiency, and personalisation. However, this
technology also has the potential to be intrusive and annoying.
Further research is needed to gain clearer insights into how consumers will react to
this type of marketing given the many technological and marketing capabilities that
smartphones offer over the traditional mobile phone. Classic mobile phones offer
primarily talk and text-messaging capabilities with a few other features, such as a
camera, calendar, and organiser. However, smartphones (e.g. iPhone and BlackBerry)
have larger and higher resolution screens and offer consumers a wide array of features,
including mobile web browsing, thousands of apps, e-mail, instant messaging, picture
messaging, video and audio playback, GPS, games, a video camera, picture and video
editing, and much more. In addition, telecom carriers are encouraging smartphone

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users to take advantage of all of these features by offering consumers data plans that
persuade them to use their smartphones more often.
The increased capabilities of smartphones have presented marketers with a
substantially expanded set of possibilities to reach and serve consumers not only by
using rich media text, audio, and video but also through a variety of apps, which
are pull-based. Indeed, consumers are attracted to smartphones for their many
practical and entertainment applications and because they can personalise the devices
with add-on features and apps specific to their needs (comScore, 2009). Further, flat-fee
unlimited social media plans allow consumers unlimited browsing and use of popular
social networking sites, such as Facebook, Twitter, Flickr, and YouTube. This presents
marketers with a huge opportunity to integrate and expand their social media
marketing strategy with their mobile marketing strategy. Also, as the prices of data
plans continue downward, consumers will most likely increase the amount of time they
spend online via their smartphones.
The present study contributes to the growing literature on mobile marketing by
examining the intentions of Canadian consumers to adopt innovative marketing
services via the smartphone. The smartphone is seen as another key stage in the
evolution of mobile marketing technology and practices because it has the capability to
seamlessly integrate Bluetooth, location-based marketing, and other technologies with
web-based and physical store marketing to produce superior consumer experiences.
Thus, understanding its impact on consumers intentions to engage in mobile
marketing will add to prior research that was conducted in the era of the classic mobile
phone, where mobile marketing was limited to SMS or very limited multimedia
message service (MMS). Barnes and Scornavacca (2004) noted that research on mobile
marketing based on SMS may need fine-tuning with the introduction of new
technologies, which could substantially change marketing practices. Smartphones
offer many more opportunities for marketers to connect with and serve consumers in
better ways. Additionally, this studys focus on Canada adds to the empirical evidence
being gathered from around the world since most previous studies on mobile
marketing are based on consumers in Europe, except for those of Roach (2009), Barutcu
(2007), Muk (2007), Megdadi and Nusair (2011), and Sultan et al. (2009), which are based
on consumers in Australia, Turkey, the USA and Taiwan, Jordan, and Pakistan,
respectively.
The remainder of this article is structured as follows. The next section presents a
brief review of the literature on mobile marketing, followed by a discussion of our
conceptual framework and hypotheses. We then describe the research method, present
the results, and discuss the implications of our findings for managerial practice and
ongoing research. We conclude by highlighting the limitations of our study and
avenues for further research.
Literature review
Prior research on mobile marketing has focused on themes such as mobile phone
usage, behaviors, and motivations (Hanley and Becker, 2008; Jin and Villegas, 2008;
Grant and ODonohoe, 2007); differences in users responsiveness to mobile and other
media (Heinonen and Strandvik, 2007); perceptions of mobile phone marketing (Roach,
2009); attitudes towards mobile advertising, entertainment, discount coupons, and
shopping (Barutcu, 2007; Megdadi and Nusair, 2011); consumers trust and experience

(Park and Yang, 2006; Basheer and Ibrahim, 2010); mobile SMS and MMS advertising
acceptance (Zhang and Mao, 2008; Hsu et al., 2007); M-services usage (Mort and
Drennan, 2005); consumer acceptance of mobile marketing (Bauer et al., 2005;
Karjaluoto et al., 2008; Sultan et al., 2009; Gao et al., 2010); permission-based mobile
marketing (Barnes and Scornavacca, 2004; Jayawardhena et al., 2009); cultural
influences on the adoption of SMS advertising (Muk, 2007); success factors in mobile
marketing (Scharl et al., 2005); and the development of mobile marketing strategies
(Banerjee and Dholakia, 2008). A few other studies focused on summarising the current
state of research and proposed future research directions (e.g. Varnali and Toker, 2010;
Shankar et al., 2010; Shankar and Balasubramanian, 2009).
Table I summarizes several recent studies on mobile marketing in terms of their
focus, research design, theoretical frameworks, and study variables. Table I reveals
that most of these studies are empirical in nature and are based on theories such as the
Advertising Research Foundation model (Heinonen and Strandvik, 2007), Rogerss
innovation diffusion model (Roach, 2009), the Q methodology (Andrews et al., 2005),
uses and gratifications theory and phenomenology (Grant and ODonohoe, 2007), the
theory of reasoned action (TRA), the theory of planned behaviour (TPB), and the
technology adoption model (TAM) (Karjaluoto and Alatalo, 2007; Muk, 2007; Bauer
et al., 2005). The studies based on the TRA, TPB, and TAM frameworks used modified
frameworks that included factors not in the original models (Gao et al., 2010; Sultan
et al., 2009; Karjaluoto et al., 2008; Yang and Zhou, 2011). A similar observation is made
with respect to Roach (2009) and Hsu et al. (2007), where several variables of Rogerss
innovation diffusion model were omitted from the analysis and new ones were added.
The findings reported in the studies vary widely. Heinonen and Strandvik (2007)
found that gender differences did not influence consumers experience with mobile
media versus other types of media. However, age was found to be a key differentiator
in that younger consumers are more responsive to digital media. Barutcu (2007) found
no differences in internet and mobile advertising and coupon usage based on gender,
age, income, or education. Nevertheless, Barutcu (2007) did find that younger, more
educated consumers have more positive attitudes than older and less educated
consumers with respect to mobile entertainment. Megdadi and Nusair (2011) found
positive relationships between attitudes towards mobile marketing and mobile
advertising, discount coupons, and entertainment. Attitudes towards mobile shopping
were negative and insignificant.
In terms of behavioral variables, Grant and ODonohoe (2007) found that five factors
motivate young consumers to use mobile phones:
(1) convenient entertainment;
(2) social stimulation;
(3) escapism;
(4) experiential learning; and
(5) purchase information and advice.
Grant and ODonohoe (2007) also noted that young consumers resistance to mobile
marketing is influenced by a lack of trust, fears of intrusion, and annoyance. In a
similar vein, Barnes and Scornavacca (2004) found that brand trust, permission, and
control exercised by wireless application service providers are three variables that

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Conceptual study in which a proposed

model is tested using published data

Empirical study. No theoretical

framework mentioned

Proposed and tested a conceptual model

rooted in the TRA, technology adoption
model (TAM), and the consumer
behavior literature. Model decomposed
into innovation-based drivers and
consumer-based drivers, which are
antecedents to other factors
No framework specified. No literature
review undertaken

Barnes and Scornavacca (2004)

Barutcu (2007)

Bauer et al. (2005)

Empirical study using an interpretive

methodology based on uses and
gratifications theory and phenomenology

Empirical study based on Advertising

Research Foundation Model. Compares
digital and traditional media
Extended Rogerss innovation diffusion
model

Grant and ODonohoe (2007)

Heinonen and Strandvik (2007)

Hsu et al. (2007)

Based on a modified TAM and uses and

gratifications theory

Gao et al. (2010)

Study design
40 respondents. Qualitative study

Study variables

No dependent or independent variables specified.

Proposed three clusters of people pragmatists,
connectors, and revelers based on a series of
statements
Role of permission and acceptance in
Published data on Swedish and UK
Dependent variable: Mobile marketing acceptance
mobile marketing
consumers
Independent variables: Permission, brand trust, and
wireless service providers control
Turkish consumers attitudes towards
418 respondents
Dependent variable: Attitude towards mobile
mobile advertising, entertainment,
marketing tools
discount coupons, and shopping
Independent variables: Mobile advertising, mobile
discount coupons, mobile entertainment services,
mobile location-based services, mobile banking,
mobile internet, and mobile shopping
Factors that induce consumers to accept 1,028 respondents (96.3 percent used
Dependent variable: Behavioral intent
the mobile phone as a means of
mobile phone mainly for phone calls, 88.5 Independent variables: Consumer-based drivers
communicating mobile content
percent for SMS, and 4.7 percent for
(innovativeness and information seeker influence,
MMS). Website survey
existing knowledge and attitude towards
advertising); innovation-based drivers (perceived
utility of information, entertainment, and social
influence), and perceived utility and perceived risk
Five case studies of firms engaged in the No dependent or independent variables specified,
Analysing the European mobile
landscape, identifying the structure of the mobile value chain: actors and their
but suggest that firms should consider user
permission, personalization, context, interactivity,
activities
value chain, and the resources and
critical success factors
multi-channel interaction, usability, and immediacy
when developing marketing strategy
Factors that influence Chinese
250 respondents (students)
Dependent variable:
consumers acceptance of mobile
Mobile marketing acceptance
marketing
Independent/antecedent variables: providing
information, sharing content, and accessing
content; risk acceptance and personal attachment
Young consumers motivation for using 167 respondents (secondary school
No dependent or independent variables specified
mobile phones
students, 13-17 years old, in the UK).
Survey questionnaire and group
interviews
Whether Finnish people experience
Two studies. Study 1 had 66 respondents No dependent or independent variables specified.
mobile media differently from other
and study 2 had 146
Responsiveness categorized as negative, indifferent,
media
or positive
Acceptance of multimedia message
207 respondents (about 56 percent had no Dependent variable: Intention to use MMS
service (MMS)
experience with MMS, 25 percent had
Independent variables: Relative advantage,
less than three months experience, and perceived ease of use, trialability, image, visibility,
10 percent had less than six months
result demonstrability, and voluntariness
experience). Online survey
(continued)

Study focus
Mobile phones consumption and SMS
marketing

422

Facchetti et al. (2005)

Type of study

Empirical study based on the Q

methodology

Andrews et al. (2005)

Table I.
Summary of the mobile
marketing research
studies

Author and date

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Type of study

Proposed a conceptual model based on a

review of the literature. Model was tested
in a three-country sample

Empirical study using theory of planned

behavior (TPB) and theory of reasoned
action (TRA) frameworks

Based on TAM, TPB, and unified theory

of acceptance and use of technology

Based on a review of the literature. No

conceptual model specified

Based on a review of the literature. No

conceptual model specified

Empirical study using TPB and TRA

frameworks

Empirical study based on Rogerss

innovation diffusion model

Based on a modified TAM and uses and

gratifications theory

Literature review articles

Author and date

Jayawardhena et al. (2009)

Karjaluoto and Alatalo (2007)

Karjaluoto et al. (2008)

Megdadi and Nusair (2011)

Mort and Drennan (2005)

Muk (2007)

Roach (2009)

Sultan et al. (2009)

Shankar et al. (2010), Shankar

and Balasubramanian (2009),
and Varnali and Toker (2010)

Study focus

Review of current research and future

research avenues proposed

Factors that influence US and Pakistani

youths acceptance of mobile marketing

Australian consumers perceptions of

mobile phone marketing

Cultural influences on adoption of SMS

advertising

Investigates m-services usage and the

relationship between m-service types and
user characteristics

Mobile phone users attitudes towards

mobile marketing tools in Jordan

Investigates customers intention to

engage in mobile marketing
communications with a firm in the
hospitality sector. Examines the effects of
gender

Consumers attitudes towards mobile

marketing

Factors that influence consumers to

subscribe to permission-based mobile
marketing

Study design

Study variables

169 US and 215 Pakistani respondents

(students)

254 respondents (undergraduate

students)

Identical model as in Gao et al. (2010) same group

of authors

Dependent variable: Consumer adoption of mobile

phone marketing
Independent variables: Relative advantage,
compatibility, and complexity

Dependent variable: Intention to opt into wireless

advertisements
Independent variables: Relative advantage,
compatibility, trialability, social benefits, attitudes
towards accepting wireless ad and social norms

Dependent variable: Usage intention

Independent variables: Consumer innovativeness,
self-efficacy, love of shopping, interpersonal
influence, gender, and age

250 respondents (in university

environment). Web survey

178 American and 198 Taiwanese

respondents (students under 25 years).
Survey questionnaire

Dependent variable: Attitude towards mobile

marketing tools
Independent variables: Mobile advertising, mobile
discount coupons, mobile entertainment, and
mobile shopping, age, education, income, and
internet users versus non-users

Dependent variables: Intention to receive mobile

communication messages and intention to visit
Independent variables: Perceived ease of use,
perceived usefulness, perceived trust, perceived
behavior control, attitudes towards advertising, and
reference group influence

Dependent variable: Mobile marketing experience

Independent variables: Credibility, context, rewards,
perceived behavior control, subjective norm,
attitude, and intention to participate in mobile
marketing

Dependent variable: Permission

Independent/moderating variables: Institutional
trust, personal trust, mobile marketing experience,
perceived control, country, and gender

389 usable responses. Mall intercept

survey

8,578 Finnish respondents (customers

from a single hospitality firm)

4,062 Finnish respondents. Survey data

200 Finnish, 207 German, and 260 UK

respondents (university students).
Survey

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Table I.

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influence mobile marketing. Jayawardhena et al. (2009) found that institutional trust is
the most influential variable in mobile marketing, but personal trust and control were
more important for men than women. Muk (2007) determined that whereas social
influence motivates young Taiwanese consumers to adopt SMS advertising, being able
to try SMS advertising has a greater influence on young American consumers.
Karjaluoto and Alatalo (2007) reported that credibility, context, and subjective norms
had substantial influence on consumers acceptance of mobile marketing. Looking at
consumer-based drivers and innovation-based drivers, Bauer et al. (2005) reported that
consumer-based drivers are not significant for mobile marketing but innovation-based
drivers are. Moreover, information and entertainment are important positive influences
and perceived risk is an important negative influence. Gao et al. (2010), Sultan et al.
(2009), and Karjaluoto et al. (2008) reported similar findings with respect to
information, entertainment, and perceived risks. Mort and Drennan (2005) found that
consumers use m-services based on benefits, innovators are more likely to use
m-services, and interpersonal influences are positively related to intention to
use m-services.
Conceptual framework
The following approach was used to develop the conceptual framework of this study.
First, the researchers conducted a review of the existing literature on mobile marketing
to identify the theoretical models used in other studies and the factors found to be
strong indicators of mobile marketing acceptance (as shown in Table I). The wide
variety of theoretical frameworks used in prior research has produced numerous
variables that seem to influence mobile marketing acceptance. Rather than testing all
the variables or choosing a particular theoretical framework, the researchers adapted
the approach used by Baumgartner and Steenkamp (1996). They developed a list of the
significant variables emerging from the literature and then conducted a focus group
with a sample of smartphone users to obtain their opinion as to which variables they
felt were important in the acceptance of mobile marketing. The goal was to reduce the
large number of variables to a parsimonious list of factors and to determine if other
relevant factors were not listed. The resulting list of factors was subsequently given to
three active e-business researchers who were asked to provide feedback on its
completeness. Based on the feedback received, several factors such as ease of use,
complexity, trialability, and observability, were eliminated, and new variables such as
perceived value, shopping style, permission, and trust were added. Other statements
pertaining to intention to accept mobile marketing and mobile phone usage patterns
were also added.
Perceived value is the consumers overall assessment of the benefits of a product
based on perceptions about what is received and what is given up (Zeithaml, 1988). In
web-based commerce, consumers can easily compare products and prices online by
using a variety of search engines or shopping tools. The perceived value of mobile
marketing, especially location-based marketing, is that marketing information and
offers target consumers personally and within their shopping context, such as when a
coupon is sent to consumers via Bluetooth as they enter a store. The ability of
consumers to receive marketing messages and offers at any time and based on their
location not only reduces their search costs, but also increases their shopping efficiency
while perhaps saving them money through discounts or promotions. The convenience,

savings, and value of the information received may influence consumers perceptions
of what they are receiving relative to what they have to give up that is, their privacy
when they give permission to receive marketing messages on their mobile phones.
However, marketing information and offers sent to consumers simply based on their
location that they find irrelevant may cause these consumers to think such marketing
efforts are annoying and valueless. Ensuring that consumers get relevant, in-context,
useful marketing information and offers based on their location is a key challenge of
value-based mobile marketing.
In addition, marketing research (Grewal et al., 1998; Chen et al., 1998; Dodds et al.,
1991) has found a strong and consistent relationship between perceived value and
purchase intention. Essentially, in a mobile marketing context, if consumers perceive
that the value they are getting from participating in mobile marketing is high, they will
be more inclined to engage in mobile marketing. Conversely, if they perceive that the
value is too low, annoying, or intrusive, then they may decide to avoid mobile
marketing since they may conclude it is not worth the effort. Thus, we propose the
following hypothesis:
H1. Perceived value is positively related to intention to participate in mobile
marketing.
Morgan and Hunt (1994) see trust as the confidence one party (the consumer) has in the
exchange partners (the marketers) reliability and integrity. In a similar fashion, Mayer
et al. (1995) conceptualize trust as the willingness of a party (trustor) to be vulnerable to
the actions of another party (trustee) based on the expectation that the trustee will
perform a particular action important to the trustor. In mobile marketing, consumers
are the trustors and marketers are the trustees. Vulnerability is magnified in mobile
marketing because the mobile phone is a personal device that is always on and thus
marketers have the capability to track consumers every movement, thereby increasing
the level of intrusion and invasion of privacy. Consumers are vulnerable to receiving
marketing messages that they may not want in certain situations and may lack the
control to decide when, where, and from whom to receive the marketing messages and
offers. In addition, consumers who may not be aware of a brand or a marketer may
have little trust in its reliability and integrity. Not surprisingly, e-commerce
researchers posit that trust forms the foundation of online buyer-seller relationships
(Hoffman et al., 1999) and that trust is substantially more challenging to develop online
than offline (Kollock, 1999). This may also be true for mobile marketing.
In the context of mobile marketing, consumers who are suspicious of or uncertain
about marketers motivations for engaging them may try to avoid their offers, while
those who are more trusting are more likely to accept their offers. Generally,
consumers mobile marketing behavior is a reflection of their overall assessments of
the marketers reliability and integrity and of consumers willingness to trust
marketers (Tan and Sutherland, 2004). Thus, the following hypothesis is advanced:
H2. Trust is positively related to intention to participate in mobile marketing.
The marketing literature provides ample theoretical arguments and empirical evidence
showing wide variations in consumers shopping behaviors, patterns, and scripts in
both online and offline contexts (Mattson and Dubinsky, 1987; Eroglu et al., 2003). For
example, Mano (1999) found that purchase intention declines when consumers shop in

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uncomfortable situations. In other cases, consumers looking for personalized or

customized products know exactly what they want (Pine, 1993; McKenna, 1997) and
their shopping patterns and behaviors are different from those who prefer
standardized products. Basically, consumers who are interested in customization are
more likely to participate in the design of their own products and believe that
customized products offer greater value because they more closely meet their needs.
Today, an increasing number of consumers of all demographics are engaged in
multi-channel marketing by conducting information searches and purchase decisions
both online and offline. They may search online for product information and reviews,
visit a physical store to examine the product, and end up purchasing the product at
either the physical store or the online store, whichever offers greater value in terms of
price and convenience. Despite the trend towards multi-channel marketing, some
consumers may not participate initially, choosing instead to wait until they feel the
technology and service are mature before participating. At first, consumers may be
reluctant to engage in mobile marketing because of a lack of awareness or uncertainty
regarding its benefits or because they may not own a device that allows for efficient
mobile shopping. However, once mobile marketing becomes more widely available and
the benefits become more observable, more consumers are likely to accept it. Hsu et al.
(2007), Grant and ODonohoe (2007), and Andrews et al. (2005) found that mobile
marketing adoption varies with adopter segments and shopping style. Thus, the
following hypothesis is proposed:
H3. Consumers whose shopping styles are compatible with mobile marketing are
more likely to participate in mobile marketing.
Finally, based on the preceding review of the mobile marketing literature, three key
demographic variables age, education, and gender have been selected for inclusion
in the analysis. The literature shows that younger and more educated are the most
internet-savvy: they have a high usage rate and a tendency to try new technology
products and services (Grant and ODonohoe, 2007; Barutcu, 2007; Heinonen and
Strandvik, 2007). The literature also shows that gender differences have become
negligible as far as acceptance of the Internet and of new technology products and
services is concerned (Barutcu, 2007). Thus, the following hypotheses are proposed:
H4. Younger consumers are more likely to participate in mobile marketing.
H5. More educated consumers are more likely to participate in mobile marketing.
H6. Gender will have no effect on intention to participate in mobile marketing.
These six hypotheses were also tested with respect to consumers intentions to accept
location-based mobile marketing via Bluetooth and other innovative technologies.
Method
The data were collected by a self-administered web-based survey in November 2010.
Potential respondents were contacted by e-mail to participate in the study. Participants
were recruited using a snowball sampling procedure as follows. First, a sample frame
comprising 350 individuals was developed using the contact information of
participants from a previous study and the researchers personal and professional
networks. These potential participants were invited to complete the survey and were

then asked to forward the invitation e-mail to their contacts residing in Canada inviting
them to participate in the study. The survey was active for only seven days, and no
reminders were sent in order to keep the data consistent at a certain time. This
procedure yielded a total of 428 completed questionnaires. All the participants resided
in Canada.
The survey focused on consumers intentions to accept innovative mobile
marketing services. The questionnaire sought information about respondents
mobile phone usage behavior and their perceptions of, and intention to, participate
in mobile marketing. Most of the questions were Likert scale questions that asked
respondents to indicate their level of agreement or disagreement with a series of
statements on a scale of 1 to 5. Demographic information pertaining to age, education,
and gender were also collected.
The survey instrument was developed based on a review of the literature and in
consultation with potential respondents and experienced researchers in the field of
e-business. The survey instrument was then pre-tested on a small sample of
15 smartphone users, who were asked to complete the questionnaire and then evaluate
it and suggest improvements. This procedure generated minor editorial improvements,
which were used to fine-tune the survey instrument.

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Results
The data were analyzed using the following approach. First, ANOVA analysis was
conducted to determine if there were differences among respondents on key
demographic and behavioral variables. Following this analysis, factor analysis and
regression analysis were conducted to examine the relationship between mobile
marketing and key predictor variables. The results of these various analyses are
presented in this section.
Table II provides the demographic profile of the respondents. Table II shows a
fairly balanced sample in terms of gender, with female respondents representing
48 percent of the sample and male respondents accounting for 52 percent. In terms of
age, 62 percent of respondents are between the ages 18 and 24 years, and 38 percent are
25 years or older. Indeed, prior research suggests that 18- to 25-year-old consumers
are the most internet and text-messaging savvy consumers, and are heavy users of the
mobile phone and its many features (Muk, 2007; Grant and ODonohoe, 2007). Ninety
Characteristics

Descriptor

Distribution (percent)

Age

18-24 years
25-34 years
35-44 years
45 years and older

62.1
13.6
5.4
18.9

Gender

Male
Female

52
48

Education

Undergraduate or lower
Masters, Doctorate, Professional

90
10

Occupation

Student
Employed

61
39

Table II.
Demographic profile of
respondents (n 428)

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428

Table III.
Respondents mobile
phone usage and
characteristics

percent of the respondents have at least a high school diploma or an undergraduate

degree, with 10 percent having postgraduate degrees or professional qualifications.
Thus, our sample is biased towards young, educated Canadians. Sixty-one percent of
respondents are students and 39 percent are working professionals, who are either
employees or self-employed. A large number of students indicated that they worked
part-time; therefore, more than half of our sample consists of working adults.
According to Table III, about 40 percent of respondents use a smartphone, such as
an iPhone or a Blackberry. And, virtually all of the smartphone owners use their
mobile phone to connect to the Internet at least once a week, with close to 20 percent
connecting more than ten times per week. About 50 percent of respondents use their
mobile phone for texting up to 20 times per day, while 41 percent use it to text more
than 20 times per day. More than 25 percent use their mobile phone to download
content (music, apps, games, etc.) from the internet. Interestingly, respondents in our
study are open to receiving four or five marketing messages per day on their mobile
phone and would even consider making small purchases through their mobile phones.
Additionally, smartphone users in our sample show a strong openness for innovative
mobile marketing techniques, with an average rating of 4.6 out of 5. It seems that
mobile marketing employing location-based, Bluetooth and other advanced marketing
techniques have a greater chance of being accepted than general marketing messages.
One reason for the greater openness may be due to the fact that the mobile marketing
Characteristics

Descriptor

Phone type

Feature/classic
Smartphone

62
38

How often mobile phone is changed

Every year
Every two years
Every three years or more

13.1
30.3
56.6

How often mobile phone is used to connect

to internet

Never
1-10 times/week
11 times/week or more

63.2
18.4
18.4

How many text messages are sent/received daily

No messages
1-10 messages
11-20 messages
21 messages or more

10.5
35.7
12.8
41.0

How often mobile phone is used to download content

(music, apps, games, etc.) from internet

Never
1-5 times/week
6 times/week or more

74.7
19.6
5.7

Top three uses of mobile phone

Making phone calls

Text messaging
Taking pictures
Browsing internet

95.8
87.9
39.6
18.6

Number of ads I would like to receive per day on my mobile phone

Number of ads I would like to receive per day if an incentive is offered
I would feel comfortable making purchases via my mobile phone up to

Distribution
(percent)

4 per day
5 or more
$20

messages tend to be more targeted and hence have a greater chance of being beneficial
to the consumer.
Additionally, the mean value of the items measuring intention to participate in
mobile marketing is moderate for the overall sample; however, among those with
smartphones, this value is about 4.5 on a five-point Likert scale, where 1 equals
strongly disagree and 5 equals strongly agree. This suggests that as consumers replace
their classic phones with smartphones, their openness to participate in mobile
marketing will likely increase. Further, consumers appear more willing to participate
in mobile marketing if they have some control over the interaction (4.05/5) and if they
know the marketer (3.51/5). Thus, it seems that brand trust and consumer control via
permission are necessary conditions for the acceptance of mobile marketing.
Collectively, these results indicate that the respondents are young, educated
consumers who are heavy users of texting, mobile browsing, and other features such as
Bluetooth and location-based marketing. They are also open to receiving marketing
messages several times per day, regardless of whether or not incentives are provided.
However, they would like to proceed cautiously since the majority would like to spend
only a small amount on mobile purchases initially (about $20). The smartphone market
is expected to grow exponentially over the next few years from its current average
penetration rate of around 30 percent in Canada, the USA, and Western Europe to an
average of more than 50 percent in Canada, the USA, and Western Europe by 2013
(comScore, 2009). Marketers who understand this marketplace will be well positioned
to exploit its huge potential.
ANOVA analysis
To determine whether or not demographic characteristics, such as age, education level,
gender, employment, and internet usage, influence consumers intentions to adopt
innovative mobile marketing services, a series of ANOVA analyses was conducted.
The results of these analyses are shown in Table IV, where only the statistically
significant variables ( p-value # 0.05) are shown.
The results in Table IV show substantial differences on several items based on the
age of respondents. For this analysis, respondents were categorized into two groups:
(1) less than 25 years old; and
(2) over 25 years old.
Differences were observed with respect to the benefits of receiving mobile marketing
messages, the likelihood of responding to marketing messages, the usefulness of
mobile marketing in improving shopping efficiency, the financial reward gained from
mobile marketing, and the extent to which mobile marketing fits with shopping style.
Generally, the mean values for these variables are greater for those respondents who
are under 25.
These results demonstrate that age should be a significant consideration when
developing segmentation, targeting, and positioning strategies, as the consumption
patterns of consumers of different age groups are distinct. Although the composition of
our sample did not allow for narrower age-range categorization (e.g. 13-17, 18-24, 25-34,
35-44), in practice, narrower categorization could lead to a deeper understanding of the
consumption behaviors of different age groups. For example, younger consumers
(13-17 and 18-24 years old) tend to use their smartphones more often than older

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MIP
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Age

I would like to receive ads via text messages and other

means on my mobile phone
I would respond to ads received on my mobile phone if they
were appropriate to my needs
I would respond to a coupon offer for a product or service
received on my mobile phone
Marketing messages received on my mobile phone help me
make better shopping decisions
Marketing messages received on my mobile phone help to
reduce the time it takes to search for products
Marketing messages received on my mobile phone help to
improve my shopping efficiency especially
Marketing messages received on my mobile phone save me
money
Marketing messages received on my mobile phone would
increase my phone costs (R)
Mobile marketing does not fit with my shopping style (R)
Mobile marketing does not fit with my idea of shopping (R)

Gender

I would respond to web offers received on my mobile phone

while browsing the internet

Education

I see a benefit in receiving marketing messages and

promotions (ads, coupons, offers, etc.) on my mobile phone

Occupation

I would like to receive ads via text messages and other

means on my mobile phone
I would respond to ads received on my mobile phone if they
were appropriate to my needs
I would respond to a coupon offer for a product or service
received on my mobile phone
Marketing messages received on my mobile phone help to
reduce the time it takes to search for products
Marketing messages received on my mobile phone help to
improve my shopping efficiency
Marketing messages received on my mobile phone save me
money
Mobile marketing does not fit with my shopping style (R)
Mobile marketing does not fit with my idea of shopping (R)

Smartphone users versus classic

phone users

I would participate in product surveys sent to my mobile

phone
I would respond to web offers received on my mobile phone
while browsing the internet
Marketing messages received on my mobile phone help me
make better shopping decisions
Marketing messages received on my mobile phone help to
reduce the time it takes to search for products
Marketing messages received on my mobile phone help to
improve my shopping
Marketing messages received on my mobile phone save me
money

430

Table IV.
ANOVA results for age,
gender, education,
occupation, and mobile
phone internet browsing
experience

Note: (R) indicates a reversed scale

consumers for texting, taking photos, social networking, and viewing videos
(comScore, 2009). Similarly, older consumers (35-44 and 45-54) use their phones more
for e-mail, maps, news and information, and banking. This sort of insight could lead to
more precise targeting and positioning strategies.
The results also indicate that there are no differences between males and females,
except for one variable responding to marketing offers while browsing the internet
through the mobile phone. In this regard, men are more likely than women to respond
to web offers served up through their mobile phones. The results suggest that while
there may be no differences between males and females in terms of their willingness to
accept mobile marketing, there are differences in their consumption patterns. For
example, men use their smartphones for gaming, entertainment, and shopping,
especially when incentives are offered. Women use their phones more for social
networking and research. According to comScore (2009), Canadian men are drawn into
humor, incentives, and movie sites, while women are drawn to food, beauty, fashion,
and health sites. This implies that marketers could benefit substantially by employing
targeted marketing strategies based on these nuances.
With respect to education level, the only difference observed pertains to the benefit
of receiving marketing messages. Respondents with a high school diploma or an
undergraduate degree are more inclined to receiving mobile marketing promotions and
offers compared to those with postgraduate degrees or a PhD. This may be indicative
of the reality that more educated consumers are likely to earn substantially higher
incomes than less educated consumers, and, thus, mobile marketing promotions may
not be an incentive that interests them. It seems that more educated consumers value
other information and content they receive through their mobile phones over discounts
and promotions.
In terms of primary occupation, respondents were grouped into students and
working professionals. Respondents differ on several factors based on occupational
status. These differences relate to the benefits of receiving marketing messages,
willingness to receive and respond to marketing messages and promotions, the impact
of mobile marketing on shopping efficiency and savings, and whether or not mobile
marketing fits with their shopping style and idea of shopping. Respondents engaged in
full-time employment indicated that mobile marketing does not fit with their shopping
style or idea of shopping and that mobile marketing is not likely to save them money.
However, they believed that mobile marketing increases their shopping efficiency by
reducing their search time for products and services. This suggests that working
professionals are more likely to engage in mobile marketing for the convenience and
the efficiency of conducting routine tasks than for the discounts or shopping offers.
Comparing those who use their mobile phones to browse the internet to those who
have never accessed the internet using their mobile phones, the results indicate that
users who access the internet with their mobile phones are more open to mobile
marketing. The differences pertain to perceived benefits of and willingness to respond
to mobile marketing. Thus, it seems that consumers with experience browsing the
Internet with their smartphones are more likely to embrace mobile marketing. Given
that smartphone penetration rates are still low but growing, it seems that most of the
early users could be considered as early adopters, who want to be seen as opinion
leaders and are more adventuresome, risky, and less price sensitive than late adopters
(Rogers, 1995; Hsu et al., 2007; Andrews et al., 2005). These consumers are more likely

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MIP
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to try mobile marketing and are thus prime targets for marketers to use to develop,
test, and refine their mobile marketing strategies. With smartphone penetration
forecasted to increase substantially over the next few years, marketers need to be ready
for the next waves of mobile consumers: early majority and late majority users.

432
Factor analysis
Factor analysis with Varimax rotation was conducted using the Likert scale variables.
As shown in Table V, the factor analysis produced a three-factor model that explains
70 percent of the variation. The eigenvalues for the three factors are greater than 1, the
commonly used threshold to include factors in a model (Kim and Mueller, 1978). The
items that constitute each factor are shown in italics under the respective columns in
Table VI. The factor loadings for each item of the respective factors are above the
commonly used threshold of 0.70 (Nunnally, 1978). Similarly, the reliability of the
factors, measured by Cronbachs a, are above the recommended threshold for factors
1 and 2, and marginally below for factor 3. However, this result is deemed acceptable,
particularly when new items are employed (Hulland, 1999). Next, the statistical
soundness of the factors is examined. Table VII presents the correlations among the
three factors (i.e. factor 1, factor 2, and factor 3). The high inter-correlations among the
items constituting each factor provide evidence that the items converge around their
respective constructs, which indicates convergent validity (Campbell and Fiske, 1959).
Discriminant validity was assessed by examining the extent to which the scales of the
three constructs overlap (Campbell and Fiske, 1959). The correlations between the
three constructs are 0.51, 0.58, and 0.56, which are well below the commonly used
threshold of 0.85. Thus, it is concluded that there is adequate discriminant validity and
the constructs are theoretically different.
Now that the statistical soundness of the model is established, the next step is to
determine whether the individual items in each factor taken together constitute a
construct that is conceptually sound and can be labeled (Kim and Mueller, 1978). Factor
1 consists of four items, namely mobile marketing:
(1) helps consumer make better shopping decisions;
(2) reduces product search time;
(3) increases shopping efficiency; and
(4) saves consumer money.

Component Total

Table V.
Factor analysis: total
variance explained

Factor 1
Factor 2
Factor 3

5.603
1.461
1.388

Initial eigenvalues
Percentage of
Cumulative
variance
percentage
46.691
12.174
11.565

46.691
58.865
70.431

Note: Extraction method: principal component analysis

Extraction sums of squared loadings

Percentage of
Cumulative
Total
variance
percentage
5.603
1.461
1.388

46.691
12.174
11.565

46.691
58.865
70.431

Component
Factor 1 Factor 2 Factor 3

Items
Marketing messages received on my mobile phone
help me make better shopping decisions

0.845

0.191

0.036

Marketing messages received on my mobile phone

help to reduce the time it takes me to search for
products and services

0.884

0.169

0.047

Marketing messages received on my mobile phone

help to improve my shopping efficiency, especially
when I am in a hurry or in a new city

0.838

0.190

0.073

Marketing messages received on my mobile phone

save me money

0.784

0.302

0.045

Marketing messages received on my mobile phone

annoy me (R)

0.384

0.740

0.059

Mobile marketing does not fit with my shopping

style (R)

0.294

0.791

0.025

Mobile marketing does not fit with my idea of

shopping (R)

0.394

0.728

0.008

I would feel more comfortable with mobile marketing

if my permission were obtained before receiving
marketing offers

0.035

0.055

0.864

I would feel more comfortable with mobile marketing

if I knew the marketer

0.065

0.125

0.843

F11
F12
F13
F14
F21
F22
F23
F31
F32

Cronbachs a

Mobile
marketing via
smartphones

0.92

433

0.64

F11

F12

F13

F14

F21

F22

F23

F31

0.75
0.69
0.67
0.44
0.45
0.40
0.44
0.50

0.76
0.66
0.43
0.45
0.42
0.41
0.47

0.66
0.44
0.47
0.39
0.43
0.43

0.49
0.49
0.43
0.45
0.44

0.59
0.58
0.38
0.34

0.77
0.47
0.43

0.41
0.41

0.52

Table VI.
Factor analysis: rotated
component matrix

F32

Notes: F1, F2, and F3 represent factor 1, factor 2, and factor 3, respectively and the subscripts
represent the items that constitute the respective factors shown in Table V

Since all these items load on the dimension of value of mobile marketing to users, factor
1 is labeled perceived value of mobile marketing. Factor 2 consists of three items,
namely mobile marketing:
(1) annoys the consumer;
(2) does not fit with his or her shopping style; and
(3) does not fit with the consumers idea of shopping.

Table VII.
Correlations among
factor analysis variables

MIP
30,4

Since these three items speak to shopping idea and behavior, factor 2 is labeled
shopping style. Factor 3 consists of two items, namely, comfort level with mobile
marketing if permission is obtained and if the marketer is known. These two items
suggests users control over the nature and level of their engagement and trust in the
brand, thus, this factor is labeled brand trust.

434

Regression analysis
The next step in the analysis involved assessing the factors that influence consumers
intentions to engage in mobile marketing through the use of regression analysis. For
this purpose, two models were evaluated. The first model assessed the influence of six
independent variables on consumers intentions to participate in mobile marketing (the
dependent variable). The second model assessed the influence of the same six
independent variables on a second dependent variable, namely consumers intentions
to participate in location-based mobile marketing, which is a more advanced, intrusive,
and contextual form of mobile marketing.
The six independent variables consist of the three variables derived from the
preceding factor analysis, namely perceived value, shopping style, and brand trust,
and three demographic variables: age, gender, and education. The dependent variable
of model 1, i.e. intention to participate in mobile marketing, is based on the average of
five items, each of which were measured on a five-point Likert scale, where 1 equals
strongly disagree and 5 equals strongly agree. The five items are:
(1) I would like to receive ads via text messages on my mobile phone;
(2) I would respond to ads received on my mobile phone if they were appropriate to
my needs;
(3) I would participate in surveys sent to my mobile phone;
(4) I would respond to a coupon offer for a product or service on my mobile phone;
and
(5) I will respond to web offers received on my mobile phone while browsing the
internet.
The dependent variable of model 2, i.e. intention to participate in location-based
marketing, is derived from the average of two items, both of which were measured on a
five-point Likert scale, where 1 equals strongly disagree and 5 equals strongly agree.
The items are:
(1) I would like to download content via Bluetooth when entering a shopping mall
or store; and
(2) I would participate in location-based marketing.
The general linear regression model used is of the following form:
Y b0 b1 x1 b2 x2 b3 x3 b4 x4 b5 x5 b6 x6 e;
where Y is the dependent variable, the bs are the parameter estimates, the xs are the
independent variables, and e is the residual term. As stated above, the Y-variable is
intention to participate in mobile marketing in model 1 and intention to participate in

location-based mobile marketing in model 2. The independent variables are the same in
both models.
The results of model 1 shown in Table VIII indicate that the variables perceived
value, shopping style, brand trust, and age are all statistically significant predictors
(a # 0:05) of consumers intentions to participate in mobile marketing. R 2 is 0.60,
which explains 60 percent of the variance in consumers intentions to accept mobile
marketing. Inspection of the b coefficients shows that perceived value is the most
influential explanatory variable at .568, followed by shopping style, brand trust, and
age. The variables gender and education are not statistically significant. The
finding with regard to gender is consistent with several recent studies on internet use,
namely, that gender differences have virtually disappeared (Statistics Canada, 2011;
Phillip and Suri, 2004). Although both males and females have shown similar
intentions to accept mobile marketing, their patterns of consumption are different
(comScore, 2009). Men use their smartphones for gaming, entertainment, and shopping,
especially when incentives are offered. Women use them more for social networking
and research, especially on health, beauty, and fashion. This finding is consistent with
Rodgers and Harris (2003) in the context of e-commerce.
The insignificance of the variable education is a bit more perplexing since it was
expected that more educated consumers would be more likely to embrace innovative
marketing practices. One possible reason for the lack of significance could be that,
when combined with other variables in the model, the variable education does not
provide further explanation over and above the other statistically significant variables
(Stevens, 2009). Another possible explanation may be attributed to the notion that
highly educated consumers are not interested in mobile marketing promotions and
discounts, and even think that these do not add to their shopping experience.
The negative sign for age is consistent with several prior studies that show that
younger consumers are more willing to accept mobile marketing. Mobile marketing via
smartphones is in its infancy, which may explain the finding that younger consumers
are more likely to embrace it earlier than older consumers. However, recent statistics on
usage patterns of mobile marketing released by comScore (2011) already point to a
narrowing gap: more consumers from all age groups are embracing mobile marketing
as smartphone penetration increases. comScore data also indicate that the
consumption patterns of mobile phone differ between consumers. For instance,
younger consumers use them more for information, entertainment, and social
networking, whereas older consumers use them more for researching, social
networking, and performing daily activities.

Independent variables
Constant
Perceived value
Shopping style
Brand trust
Age
Gender

SE(b)

t-value

Sig. t

R2

Model
F-value

Sig. F

1.674
0.568
20.223
0.090
20.062
20.025

0.218
0.039
0.032
0.025
0.023
0.053

7.673
14.416
26.910
3.590
22.774
20.468

0.000
0.000
0.000
0.000
0.006
0.640

0.60

48.33

0.000

Note: Dependent variable: intention to participate in mobile marketing

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435

Table VIII.
Regression results: model
1 intention to
participate in mobile
marketing

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436

The negative sign for shopping style implies that only those consumers who see mobile
marketing as inconsistent with their idea of shopping will find it difficult to participate
in mobile marketing. Conversely, those consumers who view mobile marketing as a
good fit with their idea of shopping will quickly embrace mobile marketing. Thus,
identifying consumers shopping style and serving them in a targeted manner could be
the key to mobile marketing success. The experience gained with early adopters of
mobile marketing could be leveraged to penetrate other latecomer segments.
The results of model 2 shown in Table IX indicate that the variables perceived
value, shopping style, brand trust, age, and education are all statistically
significant predictors (a # 0:05) of consumers intention to participate location-based
mobile marketing. The model R 2 is 0.40, which explains 40 percent of the variance in
consumers intentions to accept location-based mobile marketing. The signs and
magnitudes of the variables are also consistent with model 1. This gives a good
indication of the stability of the parameter estimates between the two models. As in
model 1, the variable gender is not statistically significant in predicting consumers
acceptance of location-based mobile marketing. Interestingly, however, the variable
education is statistically significant in model 2. Indeed, the statistical significance of
education is consistent with the notion of location-based mobile marketing since this
form of marketing constitutes a very innovative form of mobile marketing and may
find higher acceptance among highly educated professionals who lead busy lives and
travel frequently. As noted earlier, location-based marketing, if done properly, could
provide consumers with just-in-time, in-context, personalized marketing offers and
services. Consumers who travel frequently or lead busy lives are more likely than other
consumers to find location-based marketing helpful and of great value since it could
reduce their search costs and increase their shopping efficiency.
Brand trust was statistically significant in both models, but was especially significant
with respect to location-based marketing. The importance of getting consumers
permission and gaining their trust for mobile marketing has been reported in prior studies
(Barnes and Scornavacca, 2004). Our study extends the idea of brand trust to mobile
marketing by showing that such trust is even more important in the context of
location-based mobile marketing. As noted earlier, location-based marketing combines
the use of tracking technology to determine a consumers location and Bluetooth to deliver
context-specific, personalized information to consumers. Thus, location-based mobile
marketing is more intrusive than other types of mobile marketing because it is capable of
delivering marketing messages from virtually any company at any location with no

Independent variables

Table IX.
Regression results: model
2 intention to
participate in
location-based marketing

Constant
Perceived value
Shopping style
Brand trust
Age
Education
Gender

SE(b)

t-value

Sig. t

R2

Model
F-value

Sig. F

1.589
0.496
20.184
0.380
20.579
0.530
20.143

0.410
0.069
0.051
0.046
0.108
0.171
0.097

3.872
7.220
23.617
8.237
25.363
3.094
1.468

0.000
0.000
0.000
0.000
0.000
0.002
0.143

0.40

45.498

0.000

Note: Dependent variable: intention to participate in location-based marketing

concern about appropriateness. Clearly, consumers tend to be wary of messages from

marketers they do not know or trust and of messages received at inappropriate times.
Discussion
The study has several managerial and research implications. From a managerial
perspective, understanding the consumer and the mobile marketing ecosystem is
essential for marketers to exploit the full potential of mobile marketing (Facchetti et al.,
2005). From a consumer perspective, purchase is not the first motivation for participating
in mobile marketing, even though some people may be tempted by coupons or discounts to
make purchases. Consumers view their smartphones as personal devices for business,
entertainment, and social networking. Smartphones have also become status symbols
through which people express their individuality by choosing features such as ring tones,
case colors, and apps. Therefore, to be successful, marketers should develop strategies
that tap into these motivations and emotional connections when trying to engage
consumers with their brands. Initial marketing communications, particularly from new
and lesser-known brands, should focus on creating awareness, encouraging dialogue, and
gaining consumers trust. Building this type of relationship is a key first step to
influencing consumers purchase decisions and gaining their loyalty.
Proper segmentation based on a deep understanding of the consumer is critical. This
study shows that it is not sufficient to segment consumers by simple demographic
variables such as age, gender, and education; marketers should also segment consumers
by behavioral variables such as perceived value, shopping style, and brand trust. The
behavioral variables need to be coupled with the demographic variables in order to obtain
a good understanding of segment characteristics and behavior. Consumers from across all
age groups and education levels and from both genders seem to have strong positive
attitudes towards innovative mobile marketing through their smartphones. However,
this position must not be taken for granted. Delivering value is a key driver of acceptance
and an important challenge for marketers, because value is often perceived differently by
different consumers.
Mobile marketing and, more specifically, location-based marketing via Bluetooth and
other such technologies are quite different from traditional marketing, or even from
internet marketing, which relies on desktops and laptops. Most traditional marketing
methods, including web-based marketing, are push marketing and have virtually no
location-based capability. Location-based mobile marketing is very personal, ubiquitous,
highly interactive, and very context-specific. This type of mobile marketing can also go
viral easily as consumers can quickly and easily share information about offers or new
products within their social network.The convenience and flexibility of this type of mobile
marketing could help to build brand relationship and loyalty with consumers who
consider them a high value.
Moreover, marketers must make every effort to integrate their mobile marketing
strategy with their traditional and web-based marketing strategies for three main
reasons:
(1) consumers do not necessarily separate mobile marketing from the rest of the
companys marketing efforts;
(2) marketers may be able to deliver greater value in terms of products and services
by implementing a coherent marketing strategy; and

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438

(3) consumers are increasingly using their smartphones for many daily tasks and
thus smartphones are emerging as the primary channel to reach and serve
todays consumers.
According to comScore (2011), 58 million smartphone consumers in the USA and
42 million in Europe used their smartphones to access social networking sites in
December 2010 a 56 percent increase in the USA and a 75 percent increase in Europe
from a year earlier.
To integrate mobile marketing strategies with traditional and web-based strategies,
marketers must invest time and effort into understanding the mobile marketing value
chain that is, the technologies, people, processes, costs, and relationships involved in
developing and delivering mobile marketing campaigns. This is particularly important
in situations in which a company does not have all the necessary capabilities,
resources, knowledge, and technologies in-house to design, implement, and monitor its
mobile marketing efforts and must rely on external vendors to complement its
capabilities.
The findings suggest that while permission and brand trust are the basis for
consumers willingness to participate in mobile marketing, consumers are concerned
about their privacy, want their permission respected, and would like to have some
control over when and how they participate in mobile marketing. Indeed, the more
control they can be allowed, the more likely they will deepen their involvement. It
seems that consumers are saying that they want to participate on their terms: they
want to decide on the nature and level of their engagement. For instance, a customer
who gives her permission to participate in a certain campaign has not given a company
unfettered access to involve her in all of its mobile marketing efforts. Marketers who
learn to strike the delicate balance between consumers choice of engagement and
marketers desire to increase participation will likely be successful in this latest
marketing technological advance. In other words, marketers need to ensure that their
interaction and engagement with consumers via the mobile platform is mutually
beneficial without being too intrusive.
At the theoretical level, this study extends our understanding of the key factors that
determine consumer acceptance of mobile marketing. In particular, the importance of
value as a key driver of consumers acceptance of both mobile marketing and
location-based mobile marketing is a noteworthy result. This implies that for mobile
marketing to be successful it must be value-laden and value-based for both consumers
and marketers. The notion of value goes beyond just providing useful information or
coupons; mobile marketing must result in tangible benefits for consumers in terms of
convenience, efficiency, flexibility, and relevance. The content provided, as well as the
format (audio, video, graphics, text, etc.) and timing of delivery, must be personalized,
contextual, and helpful without being intrusive. Pull-based marketing strategies,
where consumers seek the content and offers of marketers either through apps or viral
means, are very important for marketers seeking to reap benefits from their mobile
marketing efforts.
Another key finding of this study is the significance of consumer shopping styles,
which suggests that mobile marketing strategies need to be nuanced to reflect the
differences among consumers. Proper segmentation and targeting must be undertaken
to guide mobile strategies and ensure effective use of marketing resources. The relative

ease and low incremental costs of delivering mobile marketing messages could lure
marketers into the trap of thinking that segmentation and targeting are not important.
Although mobile marketing can deliver relevant, personalized, and contextualized
information and marketing offers via Bluetooth, shopping apps, and other
technologies, not all consumers will want all of these features, no matter how much
information, convenience, and flexibility they provide (Park and Gretzel, 2010;
Marmorstein et al., 1992). For example, brand conscious consumers are generally less
price-sensitive, committed to particular brands and may not value comparison
shopping information (Park and Gretzel, 2010; Klassen et al., 2009). Similarly,
impulsive shoppers do not care much about comparison shopping, convenience and
flexibility (Park and Gretzel, 2010). In comparison, price/value or
incentive/bargain-conscious consumers will find comparison shopping, coupons, and
discounts extremely useful (Erdem et al., 2001; Park and Gretzel, 2010). In a similar
vein, fashion-conscious consumers will find mobile tools that provide quick and
efficient information updates very valuable (Zhang, 2006; Park and Gretzel, 2010).
Recognizing these differences could inform marketing strategy development.
Finally, this study confirms the relevance of several factors that were identified in
previous studies conducted in the context of SMS marketing. These include permission
(Roach, 2009; Barnes and Scornavacca, 2004), trust (Zhang and Mao, 2008), and age and
education (Barutcu, 2007). The stability of these factors across various study contexts
and methodologies indicate both their importance and validity for the mobile
marketing environment, even with smartphones that offer substantially more
capabilities to consumers.
Moreover, when it comes to consumer adoption of smartphones, it seems that many
of the variables that are central to original adoption models, such as the TAM and
Rogerss innovation diffusion model, are not very instructive without substantive
modification and interpretation (Zhang and Mao, 2008). The consumers in the focus
group deemed variables such as ease of use, usefulness, trialability, observability, and
complexity to be unimportant or suggested that these variables are better captured by
other constructs. For example, they indicated that although these innovative
technologies have powerful impacts on virtually all aspects of consumers daily lives
and shopping experiences, they are very simple to understand and use. Variables that
seem to have greater importance pertain to things that enhance customer experience,
simplify daily tasks, and foster socialization and communication essentially
elements that deliver great value and fit with consumers shopping styles. Thus, it is
not surprising that variables such as perceived value, shopping style, brand trust,
individual expression, entertainment, social networks, permission, and control have
emerged as statistically significant in explaining mobile marketing acceptance (Grant
and ODonohoe, 2007).
Although this study has reported interesting results and contributes to our
understanding of consumers intentions to accept innovative mobile marketing via
their smartphones, caution must be exercised since the sample size was relatively
small. Replicating this study in other contexts could validate the findings reported in
this paper. Also, a study of the success of specific marketing tactics and campaigns
used by marketers to engage consumers beyond dialogue and into purchase and
loyalty could reveal a great deal about how consumers want to be engaged in mobile
marketing and what value is sufficient to motivate their involvement.

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About the authors
Ajax Persaud is a Professor of Marketing and Innovation at the Telfer School of Management.
His research focuses on technology adoption, e-business technologies, new product development,
and consumer behaviour towards new technologies. His research has been published in journals
such as Journal of Product Innovation Management, IEEE Transcations on Engineering
Management, and Journal of e-Government. He has received several rewards for research and
teaching excellence. Ajax Persaud is the corresponding author and can be contacted at:
ajax@telfer.uottawa.ca
Irfan Azhar was a Masters student in Electronic Business Technologies at the University of
Ottawa, where his research interests included business use of mobile communications
technologies, mobile marketing, and social media marketing. He has since graduated and is
currently working at the Canada Revenue Agency.

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