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NIRMA UNIVERSITY

INSTITUTE OF LAW
TABLE OF CONTENT

1. PERMISSION MARKETING AND PRIVACY CONCERNS — WHY DO CUSTOMERS


(NOT) GRANT PERMISSIONS?...................................................................................................2

2. FACTORS AFFECTING “INTERNET MARKETING” CAMPAIGNS WITH


REFERENCE TO VIRAL AND PERMISSION MARKETING...................................................5

3. CONSUMER PRIVACY AND THE FUTURE OF DATA-BASED INNOVATION AND


MARKETING.................................................................................................................................8

4. MARKETING SOCIAL MARKETING: GETTING INSIDE THOSE "BIG DOGS'


HEADS" AND OTHER CHALLENGES.....................................................................................11

5. GETTING PERMISSION: EXPLORING FACTORS AFFECTING PERMISSION


MARKETING...............................................................................................................................15

6. RELEVANCE OF E-PERMISSION MARKETING IN TODAY’S DIGITAL WORLD....18

7. PLANNING AND IMPLEMENTING EFFECTIVE MOBILE MARKETING PROGRAMS


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8. CONSUMERS UN-TETHERED: A THREE-MARKET EMPIRICAL STUDY OF


CONSUMERS' MOBILE MARKETING ACCEPTANCE..........................................................25

9. WHEN NOTHING IS WHAT IT SEEMS: A DIGITAL MARKETING RESEARCH


AGENDA......................................................................................................................................28

10. MOBILE SOCIAL MEDIA: THE NEW HYBRID ELEMENT OF DIGITAL


MARKETING COMMUNICATIONS.........................................................................................31
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11. TEENAGERS REACTION TOWARDS MOBILE ADVERTISING: ROLE OF


"PERMISSION MARKETING" CONCEPT................................................................................34

12. A COMPREHENSIVE ANALYSIS OF PERMISSION MARKETING..........................38

13. EMAIL MARKETING: SUCCESS FACTORS................................................................40

14. PERMISSION E-MAIL MARKETING AS A MEANS OF TARGETED PROMOTION


44

15. WEB-BASED PERMISSION MARKETING: SEGMENTATION FOR THE LODGING


INDUSTRY...................................................................................................................................48

16. PERMISSION BASED MOBILE MARKETING AND SMS AD AVOIDANCE...........55

17. THE IMPACT OF PERMISSION-BASED MOBILE ADVERTISING ON CONSUMER


BRAND KNOWLEDGE...............................................................................................................59

18. AN EVALUATION OF E-MAIL MARKETING AND FACTORS AFFECTING


RESPONSE...................................................................................................................................63

20. THE NEXT EVOLUTION OF MARKETING..................................................................71

21. A STUDY OF AWARENESS OF PERMISSION MARKETING & ITS INFLUENCE. 75

22. YOU’VE GOT NEWS: A PERMISSION-MARKETING MODEL USING SPONSORED


ELECTRONIC NEWSLETTERS.................................................................................................79

23. THE USE OF E-MAIL MARKETING IN ACCORDANCE WITH PERMISSION


MARKETING APPROACH IN PROMOTION OF A STUDY PROGRAM..............................83

24. MOBILE MARKETING: EXAMINING THE IMPACT OF TRUST, PRIVACY


CONCERN AND CONSUMERS' ATTITUDES ON INTENTION TO PURCHASE................86

25. MOBILE MARKETING: THE ROLE OF PERMISSION AND ACCEPTANCE...........91

26. PERMISSION V/S PERMISSIVE MARKETING............................................................95

27. EXPLORING FACTORS THAT INFLUENCE STUDENTS BEHAVIOUR IN


INFORMATION SECURITY.......................................................................................................98

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28. SMS ADVERTISING BUSINESS MODEL: TOWARDS FINDING VITAL


ELEMENTS OF ITS VALUE MODEL......................................................................................100

29. CUSTOMERS INTENTION TO ENGAGE IN PERMISSION BASED MOBILE


MARKETING COMMUNICATIONS.......................................................................................102

30. FACTORS THAT INFLUENCE STUDENTS BEHAVIOUR IN


INFORMATION SECURITY.............................................................................................103

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1. PERMISSION MARKETING AND PRIVACY CONCERNS — WHY DO


CUSTOMERS (NOT) GRANT PERMISSIONS?

Today you can reach potential customers with relevant and personalized messages.
However, consumers often perceive these messages as an intrusion into their privacy,
creating a challenge for businesses. To address these concerns and comply with legal
requirements, prior consumer authorization offers an attractive option for future
interactions. This concept, known as Permission Marketing, refers to direct marketing activities
that require consumer consent to be contacted by a specific company. These messages are
mutually beneficial because they are intended, personal and relevant.

Permissions not only have a positive influence on consumers' responses to interactive


marketing activities, they are also a legal requirement, and therefore crucial for companies
using the media.

In the United States, this problem was triggered by a global discussion about data sharing and
misuse. Likewise, the latest European data protection law prohibits the selective dissemination of
personalized interactive marketing activities. In order to give consumers greater control over
their personal data, the revised law extends the definition of personal data and establishes a
universal need for consent for any use of personal data. Experts predict that this law will have
a detrimental impact on the online advertising industry and will remove the huge profit potential,
for example, from targeted mobile marketing offers.

Permission marketing appears to be an auspicious solution to legal and privacy concerns and
provides an appropriate means of reaching customers. With the advent of online and digital
marketing, direct marketing communication has been partially replaced by personalized online
marketing across multiple devices, such as mobile devices. By granting an authorization,
customers accept that the company will contact them directly with personalized messages
via various channels, such as direct mail, email or telephone. Above all, existing research
suggests that granting authorization improves the effectiveness of personalized
communication. Based on our overview of the literature, we have adopted a cost-benefit
framework. In particular, following the consumer calculation approach, we assume that people
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are faced with a cost-benefit trade-off when they choose to engage in interactions involving the
disclosure of personal data. The use of a "service maximization framework" follows the idea of
calculating confidentiality by creating a function that compares costs and benefits.

In our research, we distinguish between multiple benefits and economic and psychological
costs. Economic benefits refer to the specific quality and monetary benefits that customers
can get from better deals, reduced prices, etc., while economic costs include the efforts that
customers can make to grant permission.

The need for relevant personal information can be identified as a major factor that drives
consumers to interact with a business.

Referring to the cost-benefit approach, consumers look for factors that improve the expected
value of direct media.

Monetary compensation, as well as the relevance of the message, should spark consumer
interest in the marketing of authorizations. Milne and Gordon's study shows that monetary
incentives are even more significant for consumers than the relevance of the message.

Control of consumer information is another determining factor that could influence consumer
consent decisions. It refers to consumer awareness of whether they maintain control over the use
of the data provided and the volume of direct marketing messages they receive.

Complicated wordings and lengthy terms and conditions during the registration process can
annoy, confuse or even scare consumers, forcing them to abandon the authorization process.
Previous research shows that consumers react less positively to communication when they are
perceived as irritating, intrusive or boring.

As soon as consumers decide to register for interactive marketing activities and to grant an
authorization, they must provide personal information to the company concerned. This
information pertains to at least one contact address, but may include additional details such as
demographics or personal preferences.

Consumers who are very concerned about privacy have a generally negative attitude
towards all forms of personalized communication. They are very concerned that their data
is being misused and generally do not trust the good intentions of companies. Having said
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that, we have already taken a direct and negative impact of privacy concerns on the decision to
grant authorization. However, we also assume that privacy concerns reduce the impact of
authorization-based marketing benefits on this decision. The expected benefits that beneficiaries
obtain from interactive marketing activities positively influence their willingness to grant
authorization. As noted, the perceived personal relevance of future communication has a positive
impact on granting authorization.

We also evaluate the effects of the interaction of privacy issues with the other two cost factors,
registration fees and infringement. However, we did not find any significant interaction effects.
Furthermore, we investigated whether trust could moderate the effects of privacy and violation
issues, respectively, because consumers with a high level of trust might focus less on these
psychological costs.

Interactive marketing communication is often considered a privacy violation that can lead to
serious reactions. Similarly, the storage and use of personal information is known to trigger
persistent privacy problems in people. Permission marketing is a possible solution to this
dilemma. Its objective is to comply with legal requirements and provide informative
autonomy to the consumer. However, companies need to know what factors influence
consumers when granting authorization. It has been showing that authorization decisions are
primarily based on a cost-benefit estimate on the consumer side, which complies with
existing confidentiality works.

However, the study was conducted in one country, which underpins the limitation that cultural
values, such as privacy concerns and the prevention of uncertainty, vary from country to country.

This study is an attempt to provide a complete model to explain the decision to grant
authorization. However, future research could extend this model and study into an even more
complete picture. In terms of basic information, the use of a cost-benefit framework seems
useful. However, it can be assumed that the benefits are inherently economic and
inherently psychological, since four out of five benefits are fairly economic in nature, while
two out of three benefits are quite psychological.

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2. FACTORS AFFECTING “INTERNET MARKETING” CAMPAIGNS


WITH REFERENCE TO VIRAL AND PERMISSION MARKETING

The web is a meeting point where everyone can communicate with everyone else. In this context,
advertising measures are carried out by certain organizations. Hoffman and Novak (1995) and
Timmers (2000) state that there are a number of features of the Internet such as 24-hour online,
ubiquity, global availability, one-to-one interactivity and / or micro-marketing and integration,
that have a huge impact on marketing communications. Attracting consumers to a marketing
website is critical to an effective website, and longer visits are a possible measure of the success
of those websites (Hoffman & Novak, 1996). The opportunities to do business worldwide with
just one click are huge and tempting. Internet marketing, also called web marketing, online
marketing or e-marketing, is the marketing of products or services on the Internet.

A survey of key advertising professionals in the United States questioned the future of
advertising and found that "new media technologies" (such as the Internet and the World
Wide Web) were the most important factor for the media.

Viral marketing has become the electronic form of Word of Mouth and includes the
principle of transmitting or reporting messages, information or entertainment to another
person. Worth of Mouth includes "all interpersonal communication" and now includes
new communication channels for media marketing such as the Internet. When used offline,
it is referred to as W-O-M communication and when used online as "viral marketing".

It is important to emphasize that these are not Internet users, but customers. Integrating content,
format, and access to create a virtual customer community is critical to creating value and
deepening customer relationships. Although it started out as a massive product-marketing tool, it
has gained popularity as it helps the marketing manager speed up the delivery process as
advertisers advertise the product through word of mouth. This is certainly an advantage for
marketing experts who are banned from the mainstream media (alcohol / cigarettes).

Compared to traditional means, it requires less liquidity and can build a customer base with
minimal or no capital. Many researchers (Kempe, Kleinberg, and Tardos) have created models to

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assess the effectiveness of this approach in measuring the return on marketing spends. To create
value, it has to be fun and engaging, unique and fascinating and, above all, in line with the
customer's expression.

In general, viral marketing strategies can be divided into two parts. active and smooth depending
on the level of customer engagement. Active viral marketing (high integration) is similar to the
traditional W-O-M-C in that the customer is personally involved in the acquisition of new
customers. Customers act as recruiters to generate rumors. On the other hand, viral marketing
without friction (little integration) does not require the active participation of the customer. This
is the case when the public spreads the electronic word and uses the product as a link to the
message sent (electronic greetings). The origin lies in the fact that it causes minimal friction
when entering the market. Therefore, we can summarize that the viral format is an effective
mechanism of the extraction marketing strategy.

From the factor analysis, we can conclude that it is important to focus only on these 8
components rather than on the 21 variables to maintain quality. We can conclude that the
following parameters are: "Speed of diffusion", "Hit / Download", "Attitude offset",
"Credibility", "Public relations", "Data acquisition", "Penetration", "Number of 'business',' Level
of shock '', 'Exposure', 'Reachability', 'Awareness' and' Campaign persistence 'are important for
the development of an effective Internet campaign based on permissions and viruses.

Seth Godin (1999) believes that authorization-based marketing has expanded the use of optional
email, suggesting that consumer authorization to receive personalized promotional material via
email (authorization marketing) improves targeting and targeting, thus reducing the interruption
of advertising.

Authorization relationships begin with the explicit and active consent of the consumer to receive
advertising messages and always offer the consumer the possibility to stop receiving messages at
any time.

The viral marketing method is useful for targeting because it provides more relevant
information and advertising. However, for the success of the viral marketing campaign, it is
essential that the product has real value for both the sender and the recipient. Word of mouth is
important to attract customers to the website. The dissemination of information is positively

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influenced by numerous factors necessary for the widest possible reach. The first carriers of the
virus must be carefully selected. Care should be taken to focus on the target group and not to be
published on unwanted websites. As you can see in the analysis above, all these elements
increase the chances of a successful viral marketing campaign.

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3. CONSUMER PRIVACY AND THE FUTURE OF DATA-BASED


INNOVATION AND MARKETING

Marketing is often referred to as data driven. With the digitization process that lowers the cost of
collecting, analyzing and storing data, many marketing areas can integrate data at an
unprecedented level. The privacy policy mainly deals with the question of how to protect
citizens from interference or unwanted government measures. The digitalization process is
forcing these policies to move closer today. Consumer protection as contextual integrity; data
protection, traditionally seen as the right to be less, is a concept that has been difficult to
conceive and define. Although several studies aim to provide an accurate definition based on
concepts such as information control or knowledge of data practices, others suggest that
confidentiality is highly contextual and is not suitable for a non-general definition.

Data-driven innovation and marketing can cause privacy concerns today as the rapid
technological advances are lowering the cost of confirmations to collect and use consumer
data. As a result, new flows of information arise that can compromise consumer privacy when
data is reused and used in new contexts. Online monitoring and connected devices have created
new opportunities for acquisition and analysis of data. Online surfing behavior is often used to
target products and ads. However, selling this information later for other purposes would
likely violate applicable rules and lead to privacy issues. However, new data combinations
and applications have been a milestone in innovation over the past decade. Additional research
shows how privacy concerns prevent consumers from using online personalization services or
paying a premium for buying websites that effectively protect their privacy. In addition, privacy
concerns can erode the benefits that monetization models achieve through digital
advertising and reduce the likelihood of consumers clicking on ads. In addition, consumers
interested in personalized online advertising can reject targeted advertising or use ad blocker
technology, which can result in losses for targeted advertising platforms. Current research shows
the negative impact of ad blocking on future website traffic. Johnson, Shriver and Duu quantify
targeted advertising costs with a score of $ 8.58 per US opt-out consumer.

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Data-driven marketing and innovation are, by definition, data-driven at the consumer level. If
access to this input source is restricted, its innovation and commercialization are affected.
Confidentiality issues determine this effect in a number of ways. The first is the consolidated
claim that privacy concerns less motivates customers to share personal information with
confirmations. For as far as Privacy Policy is concerned, as privacy concerns grow, consumers
can contact legislators to introduce stricter regulations to address their concerns. Without
regulation, overall privacy can decrease over time and become more and more expensive
for consumers. The overarching goal of data protection legislation is to limit the extent to which
confirmations can track and use consumers' personal information. In particular, it is documented
that the data protection and electronic communications directive was associated with a relative
decline in venture capital funding for commercial initiatives in digital advertising.

Much of the work on the economic impact of data protection laws focuses on understanding the
scope and extent of its effects.

Since deeply ingrained contextual norms may differ from culture to culture, what
constitutes an adequate flow of information in one country or society can be seen as a
violation of standards in another country.

Due to privacy concerns, consumers are increasingly turning to website privacy notices and
may even pay a premium for

While these challenges may seem significant, they can also offer opportunities. As data
protection becomes increasingly important for consumers, companies that meet these needs
can gain a competitive advantage over companies that do not. For this reason, Goldfarb and
Tucker discuss how businesses can use consumer privacy to provide their customers with an
enjoyable experience. It is important to avoid the temptation to use the information available by
any method without considering the potential risks. Just because a new way to further
personalize consumer ads doesn't mean it complies with built-in context rules. Therefore, data
protection issues can have a significant impact. An important aspect that policy makers can
consider is the extent to which privacy concerns have a greater impact on small businesses
participating in data-driven innovation and marketing efforts than large businesses.

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Data protection issues pose challenges to businesses that often arise because the data provided in
one context is used in another context. Hence, it has been highlighted that how privacy issues
affect businesses of different sizes, what strategies marketers can use to mitigate privacy issues,
and in certain circumstances where privacy issues can create opportunities.

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4. MARKETING SOCIAL MARKETING: GETTING INSIDE THOSE


"BIG DOGS' HEADS" AND OTHER CHALLENGES

In recent years, the Centers for Disease Control and Prevention (CDC), U.S. Department of
Agriculture, U.S. Department of Health and Human Services, and many other federal, state, and
local governmental and nonprofit organizations have used social marketing to promote healthier
lifestyles and public health services, and to achieve other public health objectives.

Compliance with five basic principles distinguishes social marketing from other approaches to
social and behavioral change: (a) recourse to the conceptual work of marketing (for example, the
notion of exchange and marketing mix, assessment of competition, branding ); (b) segmentation of
populations into different subgroups; (c) focus on the consumer or target audience and use material
research to understand the wants and needs of consumers; d) willingness to modify the product to
meet the needs and requirements of consumers; and e) precise and continuous monitoring and
review of program activities.

According to the article, a survey conducted with 12 senior-level state health education and
promotion directors about their experiences with social marketing (Marshall, 2000) revealed that
some directors encountered difficulties getting approval to conduct social marketing-based
interventions from senior-level administrators. Research conducted with graduates of the National
Training Collaborative also found that supervisors and other colleagues had obstructed many of
their efforts to apply social marketing principles when designing interventions.

Participants also raised these concerns in training sessions on marketing social marketing
conducted at the annual University of South Florida (USF) conference, Social Marketing and
Public Health (Marshall & Keller, 1999, 2000). They reported resistance to social marketing's
extensive audience analysis and rejection of its consumer orientation; that is, some of their
colleagues place greater faith in what they believe people need than what people say they want.
Others simply do not want to place control over the planning process in the consumers'
hands.

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Other sources of resistance to social marketing reported by public health practitioners in these
studies and training sessions include the following perceptions:

• Formative research relies on substandard research methods (i.e., it is not so-called "real"
science).

• Social marketing manipulates people's values.

• Social marketing focuses only on audience segments that are easy to reach and overlooks the
neediest ones

Clearly, any efforts to disseminate social marketing in public health through trainings,
conferences, or other mechanisms will have to take these barriers into account and prepare
practitioners to overcome them.

This article discusses the use of a social marketing logic model developed by the Academy for
Educational Development (AED; 1997; Strand & Rosenbaum, 1998) to market social
marketing to resistant public health administrators, community leaders, and policy makers.

The logic model provides a marketing framework for audience analysis, identifying
options to be explored in consumer and/or audience research. The goal is to help
practitioners begin to think like marketers would i.e. about how to overcome resistance to
social marketing.

The final decision is to identify the right mix of marketing strategies to bring about the
desired change.

What balance of product (the benefit to management of doing what we want them to do), price
(their perceived costs), place (where and when to deliver the product), and promotion
(persuasive messages endorsing the product's advantages from their perspective) will result in a
successful intervention, that is, evoke the desired behavior or decision from management.

Questions are marketing's conceptual framework:

(a) the importance of audience segmentation,


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(b) a focus on behavior change,

(c) the importance of creating satisfying exchanges (product benefits must outweigh costs and
addressing other factors that influence health behaviors, and

(d) the importance of effective placement and promotional strategies.

Another component requires us to identify the factors that influence management behavior—
factors that we must address to realize our behavioral objectives. This question may reveal a
wide variety of factors that influence management's behavior, and thus your ability to
market social marketing.

Among the most typical are (a) management's perceptions of the benefits and costs of adopting
the desired behavior (e.g., appearing innovative by applying a new model or fear of wasting
time and looking foolish by investing in formative research); (b) perceived risk, such as fear of
failure if consumers' opinions are used to make decisions; (c) self-efficacy or the degree to
which the manager feels confident in the units' ability to apply the social marketing model; (d)
social norms or what others may think about social marketing; (e) policies and other elements
of the organizational culture that influence decision making; and (f) other environmental
factors that influence health conditions.

The key behavioral objectives involve accepting or approving the use of social marketing
as an approach to policy-making methods.

The social marketing process offers managers more than just a different, more effective
intervention. By embracing the social marketing process, the manager introduces a different
organizational paradigm into the agency creating the potential for cascading change and
improvement.

In the end, each practitioner planning to use the social marketing approach with public
behavior is wise to follow the same process when engaging management—conducting
research and tailoring the intervention to the needs and values of the target population.

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5. GETTING PERMISSION: EXPLORING FACTORS AFFECTING

PERMISSION MARKETING

Although companies and organizations face the efficient use of Internet technologies, email
seems to be the most common application. Since email is the most widely used Internet
technology, how do companies and organizations collect and use email addresses with their
customers? Individual communication plays a central role in managing customer relationships
and positions email as an important strategic tool. Email helps drive traffic to websites and is
interactive, fast, highly measurable, and relatively easy to implement, especially compared
to alternatives such as banner ads, mass advertising, and direct mail.

Authorization marketing is generally defined as a promotional email intended for recipients who
have agreed to receive commercial messages from the sender, generally registering on the
company's website.

Inbox-Cluttered several surveys argue that most e-mail users feel positive about Permission
Marketing and negative toward spam. Traditionally, spam is an email report that is not a
subscription option. For example, IMT Strategies interchangeably refers to spam and unsolicited
commercial emails, both defining them as mass promotional emails whose recipients have never
consented to a marketing relationship with the sending company. Deckmyn says that the
subscription email differs from spam in that the customer has agreed to receive it.
Ultimately, this lack of differentiation can bring attitudes toward opt-in email to the same level
as attitudes toward spam. At this point, authorization may not be the primary criteria for
classifying messages as spam, and consumers may ignore irrelevant emails, regardless of
whether they are opt-ins or spam. Raising the authorization level to stand out from the crowd as
clearance marketing suggests is interesting, but it's a huge management challenge. As marketers
try to keep inbox, relevance, as opposed to authorization, can become the primary driver of
consumer email behavior. Krishnamurthy believes that the relevance of the message
positively influences participation in authorization marketing activities, in addition to
monetary benefits.

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As noted above, optimism for Permission Marketing is partially appropriate, but a


challenge that will be implemented as business email can backfire if messages are not
relevant and people cannot easily withdraw, even if explicitly requested in advance.

The use of affiliation as a relevant antecedent derives in part from the scoring models in the
direct marketing literature. These models, as described by Malthouse, use predictive modeling
techniques and historical consumer data, i.e. regency, frequency and expense, to predict who will
respond to surface mail campaigns. In this experiment, two variables make the concept of
affiliation operational: brand value and previous relationships.

Consistent with the individual marketing relationships, the brands of high trust and
affection for consumers are linked by the attitude and loyalty of shopping among
consumers. In an experiment conducted, Personalization and Customisation as important
antecedents in marketing relationships have received wide coverage in the direct marketing
literature, but with mixed results. The result was that the hand-addressed envelopes received
almost three times as many responses as printed labels. The inclusion of the two relevant
measures had a moderate effect on the response rate. By including both measures, the direct
seller can expect a much higher response rate. This exploratory study examined responses to the
first step in implementing the Permission Marketing: obtaining consumer consent to receive
future communications from the business and in the process of creating mailing lists.

Management implications

This study suggests that companies who choose to distribute email marketing should be
optimistic about its potential, but pay attention to its practical implementation. They need
to understand that, since the email-marketing environment is near maturity, the target consumers
are likely already involved in various email relationships. Therefore, marketers should not
view authorization as a goal in itself, but as the first hurdle to overcome, rather than
focusing on relevance, the main measure against which consumers engage and assess their
relationships. via email address. Businesses with powerful offline brands and large email
databases may miss email marketing opportunities by focusing only on online methods of
creating lists and keeping customers engaged.

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For example, they may miss the opportunity to market loyal offline customers who rarely
connect online for anything other than email and news. To improve the chances of success,
marketers need to obtain email addresses and maintain customer interest at each point of
contact.

This study reinforces relevance as an important variable in obtaining and maintaining effective
authorization for email marketing relationships. The results of the study suggest that previous
relationships, brand equity and personalization are important antecedents of relevance. If
relevance, not authorization, is the primary variable for predicting email marketing success,
blocking methods can be justified and effective for marketers who have relevant offers for a
specific audience but who don't have access to extended snail mails or email databases.

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6. RELEVANCE OF E-PERMISSION MARKETING IN


TODAY’S DIGITAL WORLD

For Marketers, Seth Godin’s mantra of permission marketing is still very much relevant in
today’s digital marketing era. Earlier marketers were following ‘Interruption marketing’ methods
of advertising in order to grab customer’s attention. Such forms of advertising would distract
customers away from what they were doing. Permission marketing was first talked about by Seth
Godin in his book «Permission Marketing Turning Strangers into Friends and Friends into
Customers» which was published on May 6th 1999. PM is also termed as ‘Social Marketing’.
Seth Godin is the founder of Yoyo dyne entertainment and his experiences as an entrepreneur
gave him the idea of Permission marketing. He said that Permission marketing is a privilege of
marketers in delivering anticipated, personal and relevant messages to people who actually want
to get them. He noticed that successful campaigns where those in which customers permission
was sought first. He believed that marketing strategies should be based on three principles –
«anticipated, personal and relevant». These three principals have helped to define permission
marketing-

 Anticipated – potential customers would anticipate product/service information from the


company.

 Personal – the marketing messages are customized to the individual customers.

 Relevant – the customers were interested in the marketing information.

Permission marketers interact with customers according to the degree of permission, customers
give to them. This is called ‘Permission intensity’, which is the degree of information customers
allows marketers to give them.

Literature Review

Neeraj Arora has stated the difference between personalization and customization. The
companies start the personalization process whereas customers start the customization process.
The authors have discussed what are the challenges and the knowledge gap in understanding the

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choices for firms and customers. Your Website. In this book, she has devoted a full chapter on
permission marketing. She has considered permission marketing to be an important aspect of
internet marketing. As, internet marketers can get a better response from their customers and
there is very less chance of endangering their customer’s privacy. Through permission
marketing, customers will consider the company to be more credible. The target market also gets
willingly involved in the process of marketing. And to get them willingly involved, companies
will have to offer something valuable to their customers. There are opportunities galore for
permission marketing, whenever a customer visits the website. Such as, making the website
attractive, having specific pages, online seminars, new attractions, bookmarking, calendar
reminders, bulletin boards, conducting surveys, giving awards, offline promotions etc. The
author has also given examples of permission marketing whenever website visits are done by
customers. Such as asking customers to join in the mailing list, so that they can get intimations
about new offers, contests, events etc.

The Levels of Permission Marketing

There are five levels of Permission marketing which are ranked from lowest to higher levels of
effectiveness.

 Situational permission – the prospective customer allows the business to contact him/her
by providing their personal information.

 Brand Trust – the prospective customer permits the business to continue fulfilling his/her
needs.

 Personal Relationship – the prospective customer grants permission to the business


because of his/her personal relationship with someone in the provider organization.

 Points Permission – when the customer gets incentives from the business, he agrees to
receive goods and services from them and also shares his personal information with them.

 Intravenous permission – by now the customer is now completely dependent on the


business as the supplier now supplies a specific product or service to the customer.

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Relevance of Permission Marketing in The Digital Era

Nowadays, Permission marketing is a common tool applied in internet marketing and direct mail/
email campaigns. In Facebook, software’s like Facebook Connect take the user’s permission and
allows other applications and websites to share information about the user. This saves time of the
user as he/she does not have to register the same information every time with a different
application. When a Facebook user adds a new app in on Facebook, a window pop up notifies
the user that the app requests your permission to access your information. Marketers, get
opportunities for permission marketing, when customers subscribe to an SMS, newsletter, or
blog or go for loyalty cards. For example, when customers apply and get a membership card say
for ‘Reliance’. They can check their reward points earned on their card or get a replacement if
the card is lost. When they become members, customer details are collected like their birthdays,
wedding anniversaries etc. In turn, companies like Reliance can send greetings through SMS or
mail on their birthdays or anniversaries, and can also offer them exclusive discounts too. Hence,
in permission marketing, the customer does not get continuously unsolicited mail or SMS.

The Various Forms of E - Permission Marketing

Many firms and companies have set up permission-based marketing agencies and campaigns.

Permission marketing has mainly led to the expansion of social media, as it utilizes the many
methods of permission marketing such as ‘friending’, ‘liking’ and ‘following’.

Flash sales -PM has been there for many years, but only recently it has begun playing a
significant role in Customer Relationship Management. From personalized offerings CRM has
changed to time limited deals and negotiated member transactions.

Group Buying Sales

This is a specialized form of permission marketing. Once the members register, they give
permission to select offerings and promotions from the marketers.

Opt-In Email

Opt-in email is also a prime example of permission marketing, as internet users are well aware
and sign up for to receive information about a product or service.
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You Tube

This is a very popular site, used by many users. Basically, it is a video sharing website through
which people can upload, share and view videos.

Benefits of Permission Marketing

Permission marketing offers multiple benefits to marketers. Even though it is expensive, in the
long term it offers the following benefits: -Lowers marketing costs – Permission marketing
makes use of low-cost online tools like social media, emails, search engines etc. this is one of the
major benefits of PM

Conclusion

Today, the world is overloaded with information, with identical marketers selling identical
products and services leading to an overload of advertisements and spam. So, most of the
customers welcome ‘permission marketing’ especially ‘e-permission marketing’. Business Week
has rightly stated that Seth Godin is the ultimate entrepreneur for the Information age.

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7. PLANNING AND IMPLEMENTING EFFECTIVE MOBILE MARKETING


PROGRAMS

The Current State of Mobile Marketing

For a majority of consumers, mobile devices have surpassed both desktop and laptop computers
as the principal gateway to the Internet. $600 billion of in-store purchases, up from $159 billion
in 2012. Abstract Mobile marketing is an ever increasingly important component of a firm’s
overall promotional strategy. The importance of this medium can be seen through time spent on
mobile media, number of searches, and direct and indirect mobile generated sales. Despite its
increased importance, the effectiveness of mobile marketing needs to be improved based on such
metrics as bounce rates, add-to-cart rates, shopping cart abandonment, and average order size.
Strategies to increase the effectiveness of mobile marketing are discussed. Firms need to
capitalize on the three major strategic advantages of mobile marketing: the fact that mobile
marketing devices are always on, always connected, and always with the consumer; the ability to
generate location-sensitive offers; and the ability to send relevant personalized messages and
offers.

Capitalizing on The Strategic Advantages of Mobile Marketing

A good mobile marketing campaign needs to capitalize on the advantages of mobile marketing.
Marketers can generate offers based on special weather conditions and natural disasters. Mobile
marketing can send relevant personalized messages and offers. Marketers can tailor messages
and offers can be tailored to each consumer based on their purchase history, social media usage,
demographic data, and usage data. Marketers can present different offers to current consumers,
heavy users, lapsed users, relationship customers, and transactional customers.

Unlike laptops and desktop computers, mobile devices are always on, always connected, and
typically always with the customer. This characteristic enables retailers and consumers to
constantly enter each other’s environment. The always with-the-consumer characteristic is so
important that smartphone and tablet users often experience heightened stress when separated
from their devices. Unlike traditional print, radio, and television advertising, there is an

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immediacy associated with mobile marketing. Immediacy has two effects: the speed from
planning a promotion to its receipt by consumers, and the ability to immediately cancel an offer.

Developing and Implementing an Effective Mobile Marketing Strategy

Two important academic studies discuss critical success factors for mobile marketing. A study
presented by Huang used a panel of mobile marketing experts and found that of 23 possible
factors, the four most important were permission, acceptance, usability, and value/profit.
Permission is an underlying condition of an opt-in campaign, acceptance relates to consumer
benefits, usability represents ease of use, and value/profit measures the value to consumers.

Understanding and Reacting to The Complexity of Mobile Marketing

Mobile marketing’s poor performance can be due to a variety of issues. These include the need
to design mobile marketing to reflect multiple mobile operating systems Apple, Android,
Windows Phone, Table 2. Mobile marketing best practices Being aware and responsive to the
complexities of mobile marketing, devices, and multiple browsers. Research by McKinsey
suggests that few mobile shoppers actively seek out such ‘bells and whistles’ features as video,
expert opinions, or magazine style articles.41% stated that the checkout was too difficult to use
on their device; and 23% failed to complete a purchase as the transaction could not go through.
10,000 of these sites failed Google’s mobile readiness test. The importance of ease of use
necessitates that mobile marketers speed-test the time to pull up a site’s opening screen, to search
within a website, to add an item to the shopping cart, and to check out.

In addition to customer frustration issues, slow or inconsistent download or checkout speeds can
worsen during peak selling periods. Amazon’s vice president of mobile shopping is so focused
on ease of use that he repeatedly tests Amazon’s mobile site to ensure that customers can go
from wanting to buying in 30 seconds. Ease of use can also be increased by a consumer’s search
suggestions loading more quickly. For example, a customer typing ‘gil’ on Amazon’s site will
quickly see ‘Gillette’ as an option. Strategies to increase opt-in rates. Two factors are critical to
the success of a permission-based marketing program: a consumer’s opt-in rate and opt-out
timing. In many countries, a marketer needs to receive prior permission from a customer before a
mobile message can be sent.

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Home Depot’s consumer-directed mobile site enables a customer to determine if an item is in


stock, directs the customer to the appropriate store aisle, and contains product reviews.

Depot app offers local coupons, measurement tools, and even store-based workshop schedules.
Depot has a separate app for professionals that manages their shopping list for specific projects,
contains past purchase data, enables fast reordering of frequently purchased goods, and allows
contractors to order via smartphone then pick up goods in-store. Another effective app is the
IKEA catalog. IKEA products in their room.

Measuring the Success of Mobile Marketing Efforts

While the Web is one of the most measurable mediums, a Forrester study found that 73% of the
firms studied lack mobile objectives and 47% lack mobile oriented key performance indicators.
One popular metric used to assess the effectiveness of mobile advertising is click-through rate:
the %age of people who view an ad and then proceed to click the ad with a finger, mouse, or
stylus.

Conclusion

While mobile marketing is an increasingly important promotional vehicle with some significant
advantages over traditional media, many marketers have failed to use mobile marketing
effectively. This poor performance is evidenced by high bounce rates, low completion rates, and
poor average sales in comparison to laptop- and desktop-based promotions. A report from
Forrester states that these problems may be due to strategy, governance, and implementation
issues.

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8. CONSUMERS UN-TETHERED: A THREE-MARKET EMPIRICAL


STUDY OF CONSUMERS' MOBILE MARKETING ACCEPTANCE

Introduction

New developments in mobile technologies have begun to turn the mobile device into an
innovative, powerful platform with which to engage consumers. Indeed, the significant growth in
the worldwide penetration of mobile phones has fueled the growth of mobile marketing spending
and focused marketers' attention toward building and promoting brand presence on mobile
devices, creating a marketing platform referred to as ‘brand in the hand’. In this study, we define
mobile marketing as a set of programs and practices that firms employ to communicate and
engage, in an interactive manner, with consumers and enable them to access information,
download content, or purchase products on mobile devices. This definition underscores the
potential for companies to conduct branding, marketing communications, and other mobile
activities specific to the consumer's current context, time, and location. Scholars have examined
the uniqueness of the mobile marketing platform with respect to traditional, and even fixed-
Internet, media along two dimensions: that it involves a high degree of interactivity, and that its
marketing content and messages can be based on one's location. Past research also suggests firms
can deliver advertising and other location-based promotions to consumers, in effect rendering the
marketing content contextually valuable. In recent years, mobile communications have received
increased attention from the academic community, as represented by the growing number of
publications on drivers impacting adoption and/or diffusion of mobile services.

The portable and personal attributes of the mobile device separate it from other electronic
devices and serve to distinguish mobile marketing from both online and offline marketing.
Considering the trade-offs between benefits and risks, consumers' acceptance of mobile
marketing practice requires conscious, deliberate cognitive efforts, and as such, it may represent
a case of reasoned action regarding consumer acceptance. Thus, we suggest that theories such as
TAM and TRA apply in the context of consumers' acceptance of mobile marketing. In line with
previous studies that have examined the relationship between perceived ease of use, perceived
usefulness, and attitude toward information technologies, we propose that: We examine how

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these individual variables jointly influence consumers' perceived usefulness of mobile devices is
positively related to their attitude toward mobile marketing. The construct personal attachment
refers to the extent to which consumers view their mobile phone as an integral part of their life
and seek to personalize it with unique content as a way to present their devices as an extension of
the self. Personal attachment with the mobile device positively influences consumers' attitude
toward mobile marketing. As personal attachment increases, the effect of perceived usefulness
on consumers' attitude toward mobile marketing decreases. Attitude, acceptance, and activity
related to mobile marketing

Consumers' attitudes, acceptance of, and behavior related to mobile marketing are the key
outcome variables in this study. Attitude is a central concept in marketing, particularly with
respect to emergent forms of marketing communications and commerce. Fishbein and Ajzen
define attitude as a learned predisposition, based on which individuals respond to stimuli in
various ways.

Methodology

This study is based on data collected from identical written surveys administered to young
mobile phone users in three global markets in late fall of 2009 and early Spring of 2010.Y
consumers was based on the widespread usage of mobile devices for communications and data
services among the youth market.

Prior to administering the survey, it was reviewed by three outside executives familiar with
mobile marketing practice as well as research assistants and visiting scholars for clarity and
applicability to the topic being investigated. The survey responses were as follows: for the U.S.
sample, 430 responses were obtained; for the China survey, 456 responses were obtained; and for
the Europe survey, 450 responses were obtained. The data reported is based on respondents who
answered all questions used in the study. We tested the main effects in a structural equation
model using LISREL 8.8 for the U.S., China, and Western Europe samples, respectively. The fit
indices in all three tests show adequate fit between the conceptual model and the data. All seven
main effect hypotheses were supported in the China and Western Europe samples and all but one
was supported in the U.S. sample. Aside from estimating market-specific SEM models, we also
tested the across-market equivalence of all parameter estimates.

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In this study, we investigate the effects of technology attributes and individual characteristics on
consumers' attitudes toward mobile marketing and self-reported mobile marketing activity
among young consumers in the U.S., China, and Western Europe. Interestingly, we found that
results from the U.S., China, and Western Europe samples were largely similar. The seven
proposed main effects were all supported in the China and Western Europe samples and all but
one was supported in the U.S. sample theoretical implications. Taking into account past research
examining cultural differences along the dimensions of uncertainty avoidance and collectivism,
these findings indicate cross-market similarities and differences in consumer responses to mobile
marketing programs. On the one hand, the Gen Y respondents in these three markets show
surprising similarities regarding the relationships among technology acceptance factors,
individual characteristics, attitudes toward and acceptance of mobile marketing, and related
mobile marketing activity.

Association as well as regulatory agencies such as the U.S. Federal Trade Commission stress the
importance of consumer choice and consent with respect to permission-based or opt-in marketing
in the wireless space. Against this background, our findings point to the central role of
permission-based or opt-in approaches to the continued acceptance and growth of companies'
mobile marketing efforts managerial implication. Our findings suggest several implications for
companies and brands developing global marketing communications and mobile marketing
strategy. Foremost, managers should recognize the similarities apparent from this study related to
the relationships between technology acceptance, individual characteristics, youth consumers'
attitudes toward and acceptance of mobile marketing, and related mobile marketing activity.

This study illustrates how perceived ease of use and perceived usefulness are central to the
continued acceptance of mobile marketing.

In general, the importance of ease of use and usefulness in relation to wireless devices is
illustrated by the concurrent growth of smartphone penetration and usage and the growth of
mobile marketing campaigns and applications.

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9. WHEN NOTHING IS WHAT IT SEEMS: A DIGITAL MARKETING


RESEARCH AGENDA

Framing the picture

Betrayal of images. At the center of the series is a detailed picture of a pipe and the reward motto
is "Ceci n'est pas une pipe". Companies have introduced interactive technologies to interact with
their customers. Disintermediation has reduced distance and time-to-market, while increasing the
reach of large-scale one-to-one communication by implementing big data analysis. Social media
enabled consumers are now connected to other consumers, creating and distributing increasingly
visual and self-centered brand content. The reality of customer experiences is on the rise and
most consumers are happy to face their disbelief when chatting with workers based on virtual
machines.

Trend 1: Is AR for real?

Yes, augmented reality improves the customer experience online and offline. This is done by
superimposing the virtual contents of a person's perception of the physical world, for example
the living room. This interactive real-time combination of virtual and physical information leads
to a compelling spatial presence experience that temporarily removes the disbelief that the virtual
object is not real. With customers who now have a better idea of digital offerings, the stress of
choosing, abandoning the shopping cart and returning products is drastically reduced with
increasing online sales. Alternatively, AR can empower consumers by revealing distracting
information and highlighting healthy food options.

Trend 2: there is no better PR than the GDPR

With the advent of new technology platforms, social channels, positions and metrics, as well as
personal games, the amount of data continues to increase significantly. For example, health data
reach incredible sizes, such as 750 trillion bytes per day, because "it includes laboratory tests,
medical imaging, genetic profiling, fluid biopsies, ECGs, medical information, clinical studies,
prescriptions and academic research." "The purpose of the interpretation of personal data and
support The decision-making process is guided by analytics based on artificial intelligence and
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machine learning, but the field of big data is increasingly dictated by regulatory constraints and
public outrage: the digital marketing has problems, as does Facebook. In Magritte's words,
Facebook is not a friend and likes to become yikes. Finally, research must evaluate which
approval strategies are another aspect GDPR puzzle. When it comes to presenting the GDPR as a
PR version, there are inspiring examples that can serve as an example.

Trend 3: A persona is not a person

There is a lot of noise in the digital space and companies tend to underestimate the fact that
consumers are getting more and more advertisements on a given day. The sharp increase in
accessibility to personal data, the ubiquity of mobile devices and AI-based diagnostics have
fueled the trend of personalization for some time. 73 percent of C-Suite executives believe that
adaptation in their company should have a higher priority than today. As a continuous and annual
transfer trend, companies report a significant improvement in performance due to the increase in
outbound marketing strategies customized in real time.

Take care of your language

An important feature of the digital space, which is often attributed to platforms such as
Facebook, LinkedIn and Twitter, are online conversations, in which people communicate and
interact with friends, family, colleagues, complete strangers and, yes, companies. Marketing
experts have had to change the way they listen to customer voices, as the vast majority of the
data is unstructured and companies need to develop new analytical methods to decipher the
"social language".

Trend 4: Raise your voice, maybe.

Easily accessible and easy to replicate, like Magritte's painting, they are particularly impressive.
One problem is that companies need to reformulate their communication strategies to stand out
from the crowd and develop content management strategies to participate effectively in social
conversation. A recent study shows that management messages or explicit calls to action
generate less customer loyalty than emotional brand messages. The same study also shows that
alliteration also contributes to a higher level of online messaging. Further research could
investigate other objectives.

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This is not a research paper. It is an attempt at offering an inventory of research questions, based
on a subjective analysis of marketing’s current reality. Our approach is based on the work of
Rene Magritte, a timeless genius, who died in 1967, long before the advent of digital marketing

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10. MOBILE SOCIAL MEDIA: THE NEW HYBRID ELEMENT OF


DIGITAL MARKETING COMMUNICATIONS

Peer review under the responsibility of the Scientific Committee of the XVIII International
Society Annual Conference of Manager. Something is missing if you forget your cell phones at
home. People hardly remember the last time they were without a cell phone. In today's scenario,
it is difficult to imagine our life without a cell phone. According to the Nielson Digital Consumer
Report, “Americans have an average of four digital devices, and ownership of many connected,
mobile, and digital devices has reached critical mass. If you look at the average American home,
HDTV, internet-connected computers, and smartphones can be found in most households, most
of them almost for digital video recorders and game consoles. "

What Is Mobile Marketing and What Is Not?

There are many types of mobile marketing apps, and mobile social media are part of it.
According to Andreas M. Kaplan "Mobile marketing, like any marketing activity carried out
through a ubiquitous network, to which consumers are constantly connected through a personal
mobile device." Three conditions are required to be considered mobile marketing. First of all,
there must be an omnipresent network. Mark D. Weiser, chief scientist at Palo Alto's Xerox
PARC, created this ubiquitous term. Deviating from the conviction that an omnipresent network
is essentially not a single network, but a fusion of different networks.

Companies belonging to the group with little knowledge / push pursue the strategy of
transmitting standardized messages to a large audience / mobile user. If the company cannot
know which customers are affected by the message, this group of customers is generally referred
to as a stranger. The second group consists of little knowledge / attraction. Customers choose to
receive information, but do not know when to do it. Therefore, the company does not know the
end customers it has dealt with or dealt with, and this group is called the cohort group. The third
group, which is very well informed / intrusive, consists of companies that know their customers
and to whom messages and information can be sent without the customer's prior approval.

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Mobile Social Networks: Theoretical Foundations and Conclusions

Generally, two parties are required for each communication, one is the sender who shares certain
information, and the other is the receiver who receives and listens to the communication.
However, there are two relevant questions. The excitement created by the end date of these
marketing messages can create more effective marketing communication.

Commercial and Potential Use of Mobile Social Networks

It is explicit that traditional social networks offer enormous opportunities for companies from
different sectors. It is true for social networks in general, microblogs and virtual worlds. Social
media is considered the most powerful medium for viral marketing campaigns and also for the
introduction of new products. The use of these functions of mobile social networks in various
areas, such as marketing communication, loyalty programs, market research, etc. There is more
discussion on market study Social media applications on mobile devices as they provide
important data about offline consumer habits. Businesses can now easily get details about
consumer registration at their store, and their expertise can be gleaned from customer feedback.
Social media apps made it easier for companies to get information on age, gender, frequency of
check-ins at a particular store, the number of customers who visited the store, and who was the
most frequent visitor, which customer spends the most part of the time at the point of sale?
Consumers who consent receive additional bonus points with each purchase and are
simultaneously updated on their Foursquare and Twitter accounts, increasing brand awareness of
D-Lite buttons.

Tips for Mobile Apps on Social Media

This innovative communication channel offers countless perspectives, but companies using this
channel must be aware of the associated risks / challenges for Mobile social media for years to
come.

Social media is moving fast and given the speed of social media, it won't be surprising that
today's science fiction can become tomorrow's reality. In the coming years, mobile device usage
will continue to increase and everyone will have a mobile device. Today's mobile device will
become the language of Star Trek in the near future. This brings with its opportunities and risks.

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Presence and touch throughout the world. Thanks to their ubiquity and global reach, mobile
social media is a revolution in mobile marketing.

2014

Asia is therefore the fastest growing market potential.

96% worldwide of which 128% and 89% for industrialized and developing countries. The mobile
phone will become an important Internet connection tool by 2020. If Generation Z companies,
commonly known as network generation, really want to prosper and become popular, they
should turn to mobile social media marketing, as this Generation group generally does not refer
to newspapers.

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11. TEENAGERS REACTION TOWARDS MOBILE ADVERTISING:


ROLE OF "PERMISSION MARKETING" CONCEPT

Ines Trabelsi and Kaouther Saied Ben Arched

Introduction

The development of the wireless communications worldwide and the quasiuniversality of mobile
phones in everyday life make the mobile phone the most popular tool in interpersonal
communication. In spite of the importance of a young target in marketing, its growing interest
for the SMS and of the potential offered by the mobile campaigns targeting the young people,
this subject remains the object of interest of few studies by academics; and the advertisers are
still uncertain about the role of “Permission Marketing” on adolescents’ reactions towards
Mobile Advertising and on the intention of purchase without focusing on precise categories of
age. As, there are neither works carried out on young people's perception of the concept of
“permission marketing” in Mobile Advertising, nor the impact on their attitudes and their
behaviour, it seems interesting to investigate the teenagers sensibility to “Permission
Marketing” and to study the role of this concept on their reactions toward Mobile
Advertising campaigns. The main objectives of this research work consist in investigating the
various levels of teenagers' perception towards Mobile Advertising and “Permission Marketing”
concepts, to determine their appropriate cognitive, emotional and behavioural answers and to
identify the role of “Permission Marketing” on each of these reactions.

Theoretical Background

The emergence of wireless technologies, the sophisticated mobile terminals and the development
of the services which are associated to them, such as Mobile commerce, Mobile Advertising,
place the post-internet era under the sign of the mobility. Assert the non-existence of a
conventional definition of the “Mobile Advertising” and they consider it “as any paying
message communicated via a mobile media with the intention to influence attitudes,
intentions and behaviours”.

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Several studies mention that the growth of mobile phones developed throughout the world and in
particular with the teenagers. Today, teenagers communicate mostly on the mobile phone that on
the computer and uses text messages a lot. Gauzente considers them as an attractive,
powerful and even privileged target for Mobile Advertising. Besides, because teenagers’
market represents the key for the development of the global market, Wilska, Mort and
Drennan and Gauzente state that this market offers the marketers true possibilities for
prospecting via mobile communications. The broadcasting of mobile phones with the
teenagers represents the fastest technology registered in history this rate is 98% in group of 20-
24 years, and in Tunisia it is higher than 80 % at young people. Dependence to the mobile phone:
nowadays, the young people different from those of formerly from point of view usage of the
technology: according to Taylor, they were born with the technology and grew in a rich digital
environment. Jelassi and Enders and Ling and Yttri show that the widest proportion of the
owners of mobile phones is registered recorded with the teenagers. Indeed, the teenagers have a
strong emotional attachment for the mobile phone, always keep it with them and consider it even
as an extension of themselves. Thanks to this intimate relation with this mobile gadget, the
mobile phone represents for them more that a communication tool: it is a vector of contact
with the peers, a platform of games, a means to strengthen their identity to the group, to
weaken the spare time, inquire, to amuse, a fashion accessory So, the mobile phone became
essential in the everyday life of the teenagers and in their process of emancipation, micro
coordination, crystallization and formation of their identity

Success of the SMS increased in a spectacular way, since 2001

• The SMS became a means of very fashionable communication among teenagers, thanks to
their affordable price, their fast, personal, immediate, viral, playful and entertaining aspect.

• The excessive dependence of teenagers to messages texts and their massive use contributes
to the growth of the SMS: more than half send at least an SMS per day.

“Permission Marketing ": Condition of Efficiency of Mobile Advertising

The concept of permission is a relatively new concept, it originated with the theoretical research
of Milne and Gordon (1993). According to Milne and Gordon (1993), the permission is a means
to create rights protecting the private lives of consumers by giving its permission for the sharing
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of personal information with the marketer, the individual must be protected against the
phenomenon of spam. Krishnamurthy considers the marketing of the permission a
communication taken on the initiative of the customer. The permission of the consumer
consists, then, in giving its explicit agreement and in revealing information corresponding
to its profile and to its centres of interests, allowing him it to be a marketing target and to
receive marketing offers.

Contrary to traditional advertising which is intrusive and undergone, an advertising based on the
permission is a chosen, expected, targeted advertising and minimizes irritation. So, the message
becomes entertaining and relevant thanks to the better understanding of the profile of the
contacted persons and a better adequacy between the offer of the marketer and the expectations
of the consumer. In that case, the consumer receives the value in exchange for the successful
advertising and the marketer makes its action a success. Therefore, the concept of
“Permission Marketing” reduces the overcrowding and the costs of costumer prospection,
improves the targeting and the rates of answer, assures respect for the private life, develops the
long-term Relation, increases the trust of the consumer and protects his/her interests.

Conclusion

Given that the mobile phone is a personal object, the appeal to the concept of "permission
marketing" seems to be an indisputable priority especially with the oldest teenagers. Despite the
concept of "permission" is under used in the advertising environment, and despite the
teenagers non sensitivity to the notion of respect for private life as adults, this study
nevertheless reveals to us a real appreciation and a surprising surprise investigated with
the teenagers to this idea. So, to make a success of an advertising campaign via SMS targeted
to the teenagers, it is recommended to use the" permission marketing" concept, because this kind
of practice incites the preparation in the long term and to build good relations with these young
people, considered at once as an interesting current marketing target and future consumers. Thus,
the need for a personalized, well targeted and not intrusive advertising also exists with the
teenager's and it becomes more marked with age. As, it represents a key factor, seen that he
can contribute to the success or to the failure of the Mobile Advertising campaigns results
already confirmed by several researchers. In conclusion, this concept has to accompany the

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development of the Mobile Advertising and has to get into the marketing strategy,
independently of the aimed target.

Implications of Research

In this research, the interest was concerned with the teenagers, a segment of the population
representing a very important target in Mobile Advertising, because they are
"technophiles", "permeable" to the new technologies, very dependent in their mobiles, big
users of mobile services in particular SMS people. But its use is still at its embryonic stage: it
is limited to some sectors and some activities (mobile phone operators, selling point of clothing,
decorations, optics, associations) and hasn’t yet introduced the notion of "permission marketing".

Directions of Future Research

It would be interesting to: Lead a quantitative study to understand the heterogeneousness of the
Tunisian target; Lead a comparative study on teenagers stemming from various contexts to
reveal the various levels of perceptions, attitudes and behaviours relatives to every context and
the explanatory motives for difference or for resemblance between these teenagers.

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12. A COMPREHENSIVE ANALYSIS OF PERMISSION


MARKETING

Sandeep Krishnamurthy

Although the term “permission marketing” was coined by Godin, the general idea of customer
permission in direct marketing had surfaced earlier in the marketing literature, mainly in the
context of privacy issues in direct marketing. For example, Milne and Gordon discuss the role of
customer permission along with volume, targeting and compensation in the context of direct
mail. However, their reference is to an individual's providing a direct marketer the permission to
share his or her personal information with others. In other words, they see permission as a tool
to establish privacy rights rather than to enhance targeting. Moreover, the privacy issue is
different now since an infomediary retains all the personal information and supplies ads based on
that information; the advertisers never see the information.

Recently, proposed the concept of customer-centric marketing, which includes what they call co-
creation marketing. Co-creation marketing envisions a system where marketers and
consumers participate in shaping the marketing mix. In the authors' own words, “Co-
creation marketing enables and empowers customers to aid in product creation, pricing,
distribution and fulfilment, and communication (e-mail systems)”. Hence, permission
marketing can be viewed as focusing on the communication aspect of a larger concept called co-
creation marketing. Gilmore and Pine IIhad also earlier identified collaboration between
marketers and consumers as one form of one-on-one marketing.

The direct marketing literature has also pointed out the importance of consumers controlling the
terms of their relationship with marketers. Phelps, Nowak and Ferrell point out that individuals
like to control “how personal information about them is used by marketers, the kinds of
advertising mail and catalogues that they receive and the volume of advertising mail they
receive”. In this literature, direct mail is viewed as a social contract between the consumer and
the marketer. Moreover, there is recognition that what is necessary to improve direct
marketing relationships is not just a reduction of privacy concerns of individuals, but
rather an improvement in the consumer's trust of the marketer. Marketing scholars have
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long been disenchanted with the marketer-initiated approach to direct marketing. For example, in
a critique on database marketing, Schultz (1994) noted

If the database works for the consumer and not just the marketer, duplicate mailings should
never exist. For the database to have value for customers, it should simplify and improve their
personal lives, not just complicate them with unwanted offers or ridiculous solicitations. Also,
if the database was really working for the consumer - and not just the marketer - privacy
would not be the issue it is.  Perhaps the greatest concern about the value of the database is the
one-way marketing systems that are being developed- systems that favour the marketer and
are disincentives to the consumer.

Hence, it is not surprising that several marketing scholars have begun to indicate their acceptance
of permission marketing as a viable concept. For example, Petty proposes “shifting property
rights for soliciting and selling information about consumers to the consumers themselves
thereby reducing the marketing costs imposed upon consumers without their consent”.
Further, he argues that “by bearing the costs of identifying disinterested customers, marketers get
an audience interested in their message. Consumers get fewer messages and only ones that they
are interested in receiving”. Similarly, Sheehan and Hoy also suggest that permission marketing
may be a technique to reduce privacy concerns of individuals. Even though they do not use the
term permission marketing, Milne, Boza and Rohm propose that “opt-in methods (can act) as a
trust-building alternative to more effective information control”.

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13. EMAIL MARKETING: SUCCESS FACTORS

Ruth Rettie

Introduction

Email marketing is being increasingly recognised as a cost-effective marketing tool. Forrester


describes email marketing as one of the most effective online marketing tools because of its
high response rate, and expects email marketing to be worth 5 billion US dollars by 2004.
Jupiter, predicts that spending on digital marketing initiatives such as coupons, promotions and
e-mail will surpass that of internet advertising (advertisements placed within website content
such as banners, interstitials, rich media, pop ups, etc).

Email Marketing

The advantages of email marketing have been recognised by a number of authors. Wreden
described email marketing as the ‘Internet's killer application’ because of the precision with
which email can be tailored, targeted and tracked. Peppers and Rodger, claim that ‘clear
benefits, including high response rates and low costs are rapidly turning email marketing
into an invaluable tool’. The basic characteristics of email marketing are low costs, shorter
turnaround (in the time involved to prepare, send the messages and receive the responses), high
response rates and customisable campaigns. The advent of HTML, audio and video email
improves the scope for creativity in email marketing. Turban et al, define spam 'as the practice
of indiscriminate distribution of messages without permission of the receiver and without
consideration for the messages' appropriateness.' Jupiter Communications (2000) estimate
that the average US surfer will receive up to 1,600 unsolicited emails every year by 2005.

Permission Marketing

Godin, coined the term 'permission marketing' which is based on consumers giving their
consent to receive marketing information. Permission marketing 'offers the consumer an
opportunity to volunteer to be marketed to' and it is therefore 'anticipated, personal, and
relevant'. Customer permission had been introduced in the context of privacy issues in direct

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marketing. The key to permission marketing is knowing customer interests and knowing their
information needs. Permission marketing improves the targeting and relevance of promotional
messages, thus improving response and conversion rates. A survey by IMT Strategies found
that permission email has a higher response rate than no permission email Successful
permission marketing is about building long-term relationships with customers once the
initial permission has been granted. He also introduces the concept of permission intensity,
which he defines as 'the degree to which a consumer empowers a marketer in the context of
a communicative relationship'. In-order to obtain as many permission emails addresses as
possible marketers sometimes provide options that are unclear with a default 'opt-in'.

Methodology

Preliminary qualitative research consisted of four depth-interviews with industry experts an


interactive agency consultant, an email list sales director, an email transmission bureau
consultant and a director of a leading UK direct mail company. The email addresses were
derived from partner companies' registration sites where consumers had opted-in to third
party mailings. Subject line, incentive, email length (in terms of the number of scrolls on a
15" screen), number of links, number of images, response rate, delivery rate, and click-
through rate. The incentive in each email was coded from 1 - 4 as follows: '4' - competition
with a major prize e.g. The subject line was coded similarly according to the incentive, if any,
suggested by the subject line of the email. The Clarita’s file of 371,072 individuals with email
addresses, appended with demographics, lifestyle and email response (each URL is tagged so
that responses can be identified).

Analysis

Analysis of 30 campaigns examining the correlation between email type (length of email,
number of links, number of images, nature of incentive, subject line and click-through rate. For
nine campaigns we had sufficient data to combine demographic and lifestyle with email and
response data. Demographic and lifestyle data consisted of 16 attributes: gender, marital
status, number of children, occupation, home ownership, age, life stage, income, bingo,
eating out, fishing, foreign travel, quality news readership, mid-market news readership,
popular news readership, and buy products online. The demographic and lifestyle response

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profiles were biased by the original targeting applied in selecting recipients for the campaign, for
example, a campaign for mobile phone services is biased by the selection criterion, e.g.

Results

Using Kendall's Tau non-parametric correlation test, we found that click through %age was
significantly related to subject line, length of email, number of images and number of click-
through, Response rate is inversely related to the length of the email. To take the analysis one
stage further the metric variables: length of email, number of images and number of links were
entered into stepwise linear regression with click-through rate as the dependent variable. The
number of images accounted for 29% of the variance, with the number of scrolls
accounting for a further 25%.

Further Research

Opening the Email Recipients are more likely to open emails from known senders, hence,
Higher response rates correlate with email from well-known brands Recipients are more
likely to open emails where they have given permission, so: H6 Permission email has higher
response rates Unfortunately, nearly all of our campaigns were from well-known brands and all
were subject to third party permission, so we were not able to test these hypotheses. Paying
Attention to the Email More attractive emails will be in HTML, therefore H8 Response rate is
higher for HTML than text messages.

Conclusions

Our qualitative research suggests that email marketing is growing rapidly and should be
integrated into the overall communication mix. Interviewees also believed that email marketing
would be more effective as a retention rather than as an acquisition tool, because its interactivity
facilitates two-way communication. Our response process model suggests that there are three
stages in effective email marketing: getting the recipient to open the email, getting them to
pay attention to the email and persuading them to click through the URL link, hence
response rate should depend on the email header as shown in the in-box, the email contents
and the recipient. Our quantitative research supports this model, with a significant correlation
between response rate and subject line, email length, incentive, and number of images.

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Regression on email length and number of images accounted for 54% of the variance in response
rate. Whilst this would auger well for the industry as email marketing response rate would
increase with length of Internet use, the dramatic growth in 'non-permissioned' email
marketing or spam may undermine the development of acquisition email marketing.

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14. PERMISSION E-MAIL MARKETING AS A MEANS OF


TARGETED PROMOTION

Ana Marinova, Jamie Murphy, and Brian L. Massey

Despite the explosion of internet-based communication, however, conventional direct-mail has


increased fourfold in the past decade. One consequence of the increasing volume of paper
that people receive is that just 75 % of direct mail is opened nowadays, compared to an
estimated 90 % just a few years ago. That does not say anything about response to direct-mail
messages, since opening does not automatically lead to buying. Those data are legally
available for marketing campaigns until that customer “opts out,” or explicitly asks to be
removed from the mailing list. Despite the opt-out possibilities, consumers are growing ever
more concerned about how businesses are using information about them. Seth Godin has
noted that in many cases consumers see direct-marketing regular mail commonly called junk
mail as the paper equivalent of spam. Both junk mail and spam arrive unanticipated and
unbidden, and they both clutter up people’s mail boxes. Such a personal relationship helps the
marketer’s message cut through the advertising clutter by creating a distribution list of
customers who want to receive that firm’s communications.

Permission Marketing Via E-Mail

The idea of so-called permission marketing is to cultivate a relationship with customers who
have given a marketer the go-ahead to send them information about a product, service, special
offer, or sale. Such an approach “decreases the mailing volume but raises the %age of
success,” and becomes potentially more effective through the use of information
technology. So far, we have been discussing permission marketing in terms of a direct
relationship, in which the customer and company communicate directly, and the company
typically offers the customer an additional service as an inducement to maintain the relationship.

One Hotel’s Experiment with Permission E-Mail

We conducted a study of an Australian hotel’s initial efforts to use e-mail at the “brand trust”
level of permission marketing, in hopes of developing a technique of customer-relationship
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management. These data include guests’ names, addresses, the number of times they have stayed
at the hotel, and their average spending during their stays. Guests, retain them as part of the
hotel’s customer base, and to increase the number of hotel services that guests used during their
stays the hotel began collecting guests’ e-mail addresses with the aim of replacing its printed
direct-mail initiatives with a less-expensive e-mail marketing campaign. That is, people who
received the hotel’s e-mail could respond and ask that their names be removed from its e-mailing
list, but the hotel did not ask them first whether they wanted to receive that initial promotional
message. The subject line is arguably the most important field for marketers because what
the sender writes in that space has a lot to do with whether the receiver is enticed into
reading the message. Just as direct-mail marketers fret over such issues as package size,
design, and message wording, e-mail marketers should concern themselves with the text of
subject lines. The company found that when it added the recipient’s first name to the subject
line, its response rate doubled to more than 12 % over e-mail that was not personalized. The
literature on customer relationship management argues that personalization is a critical element
for sales success. Along this line, the second research question was: “Will a permission-
marketing campaign using personalized e-mail generate a larger response rate than
generic, mass-delivered e-mail messages?” Opt in or opt out? In an opt-out campaign, targeted
customers receive an initial e-mail that delivers a promotional message, but also offers recipients
a way to remove their names from the e-mailing list. Accordingly, the third research question we
investigated was, “Does high subject-line relevance yield fewer instances of opting out
among e-mail recipients?” Similarly, the fourth question asked, “Does e-mail personalization
function to reduce recipients’ opting out behaviour?” Study method. On the other hand, with
its opt out approach the hotel risked alienating an unknown number of its former guests who
would be offended by receiving an unbidden commercial message, even with the opt-out
opportunity So, rather than simply send messages to the entire 6,000 addresses in its
database, the hotel’s managers decided to test the waters of permission e-mail marketing
by sending messages to just 800 of the guests on its e-mail distribution list. For the first e-
mail run, four samples of 100 e-mail addresses each were drawn at random from the hotel’s e-
mail database. The message asked recipients to visit a hotel web page for details about six
promotional events and provided a return e-mail address for opting out of future messages. The
e-mailing was repeated step-for-step a week later to a different batch of 400 e-mail addresses
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drawn at random from the hotel’s database. Each web page was monitored for one week from the
day the e-mail message was distributed, as responses to commercial e-mail generally occur
within a few days of receipt. The opt-out e-mail address also was monitored for one week to
gauge that form of “unsuccessful” response to the hotel’s campaign.

Bounce Backs and Opt Outs

The hotel successfully reached 61.5 % of the 800 recipients targeted in its two experimental e-
mail distributions. Nearly two-fifths of the 800 promotional e-mail messages bounced back as
undeliverable, from non-working or incorrect e-mail addresses. This high rate of undeliverable
e-mail speaks to the importance of ensuring e-mailing databases are entered accurately and
kept up to data and that addresses are keyed correctly. Those tests also showed that
personalization and subject relevance of the hotel’s promotional e-mails had no statistically
noteworthy effect on whether recipients responded by visiting the corresponding web-site visits.

Confounding

The literature argues for the benefit of sending promotional mailings that are personalized to
their recipients, but this Australian hotel’s experiment with permission e-mail marketing points
to the opposite conclusion. Future research should consider comparing the effectiveness of opt-in
versus opt-out permission e-mail marketing. This study also suggests that subject-line
relevance may be largely irrelevant in a permission e-mail marketing campaign. The
Australian hotel saw no substantial differences in the performance of promotional e-mails
in the high and low-relevance subject-line categories. The simplicity of running the e-mail
experiments described here and measuring web-page visits, bounced e-mails, and e-mail
messages opens up a rich avenue of future research possibilities. Ultimately, this hotel’s
permission e-mail marketing campaign could be deemed successful in that it generated a greater
response %age than regular direct mail usually draws (9 % versus 2 %, at best). It’s also
promising that all but ten of the 492 e-mail recipients chose to remain on the hotel’s e-mail
database meaning that they are available for future promotional efforts. Confounding The
literature argues for the benefit of sending promotional mailings that are personalized to their
recipients, but this Australian hotel’s experiment with permission e-mail marketing points to the
opposite conclusion. Future research should consider comparing the effectiveness of opt-in

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versus opt-out permission e-mail marketing. This study also suggests that subject-line relevance
may be largely irrelevant in a permission e-mail marketing campaign. The Australian hotel saw
no substantial differences in the performance of promotional e-mails in the high- and low-
relevance subject-line categories. The simplicity of running the e-mail experiments described
here and measuring web-page visits, bounced e-mails, and e-mail messages opens up a rich
avenue of future research possibilities. It’s also promising that all but ten of the 492 e-mail
recipients chose to remain on the hotel’s e-mail database meaning that they are available for
future promotional efforts. One practical benefit is that the hotel’s experiment. Harking back to
our point about making sure e-mail addresses are clean, the hotel conducted a short
seminar with the employees responsible for collecting or using e-mail addresses after the e-
mail experiment and found ways to improve the e-mail database. Future research should
consider exploring other media such as mobile phones, as well as a fuller range of variables that
could boost the effectiveness of a permission e-mail marketing campaign. Such variables could
include subject-line copy, the e-mails “From:” field, the actual e-mail message, plain text versus
html e-mail format, the salutation used, time of day, day of week, frequency of mailings, and the
message’s closing line.

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15. WEB-BASED PERMISSION MARKETING: SEGMENTATION


FOR THE LODGING INDUSTRY

Eric Brey, Amy So, Dae-Young Kim and Alastair M Morrison

Introduction

Marketing to lodging consumers has gone through significant changes in recent history due to
Internet growth. Furthermore, lodging websites can accelerate marketing, establish brand names,
and expand current markets. Within the lodging sector, proprietary owned websites are realizing
the need to further capitalize on the Internet, brought on by increased sales and marketing that
these sites afford. One such method, permission marketing, is based upon garnering initial
customer consent to receive information about a product or services from a company. But
there exists a thin line between successfully encouraging potential clients to forward a marketing
message and being seen as invasive. Without research investigating the effective use of
permission marketing and a need to examine e-behaviour within the lodging industry, a
significant knowledge gap exists. This research begins to resolve this by providing a deeper
understanding of permission marketing. By analysing data concerning consumers’ willingness
to supply information online, this study’s two research objectives were to segment groups
of consumers based upon the levels of permission they supply to websites. In the examination
of repeat visitors, so and Morrison found that information search behaviour significantly affected
repeat travel behaviour. Often the most difficult aspect of permission marketing is obtaining
qualified leads. By examining differences in website preferences, additional insight into design
dynamics in permission marketing can be examined. Based upon these objectives, the outcomes
of this study will provide an understanding of consumers’ willingness to supply contact
information, the methods of collecting data for permission marketing purposes that are most
successful, and a comparison of the characteristics of the consumer segments. These findings
are then applied in a lodging context and applications for marketing professionals are
discussed along with future research opportunities.

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Permission Marketing

Most mass media venues do not allow marketers to target consumers with a high degree of
precision, even though targeting and segmenting are arguably marketing centrepieces. With this
difficulty existing, one of the most recent direct marketing approaches focuses on consumers’
preferences and developing a meaningful interactive dialogue. One such proposed technique is
permission marketing, which seeks permission in advance from consumers to send marketing
communications. Consumers provide interested marketers with information about the types of
advertising messages they would like to receive. The marketers then use this information to
target advertisements and promotions. The aim is to initiate, sustain and develop a dialogue with
customers, building trust and over time lifting the levels of permission, making it a more
valuable asset. Godin states that Consumers are now willing to pay handsomely to save time,
while marketers are eager to pay bundles to get attention. The alternative is permission
marketing, which offers the consumer an opportunity to volunteer to be marketed to. By talking
only to volunteers, permission marketing guarantees that consumers pay more attention to the
marketing message (pp. This technique is seen as reducing clutter and lowering search costs
for the consumer while increasing the targeting precision of marketers. Permission
marketing has three specific characteristics that set it apart from traditional direct marketing.
These characteristics are what allow marketers to cut through the clutter and speak to prospects
as friends, not as strangers. ‘‘Brand trust’’ is the most common way marketers practice their
craft. This involves consumers allowing the company to collect personal data and to market
its products and services to them on a points-based loyalty scheme. According to
MacPherson, one of the theories behind permission marketing is that, presumably, a customer
who has given permission to receive promotions is a better, more loyal and profitable customer.
Consumers’ permission has to be sought, which allows consumers to realize the power in the
data they can provide marketing is closely related to two concepts that have been discussed
within marketing literature relationship marketing and one-to-one marketing. Relationship
marketing proposes that marketers focus on long-term relationships with customers rather
than single transactions. The main idea of one-to-one marketing is that marketers must
think of a segment as one person and customize the marketing mix to each customer. The
term permission marketing was coined by Godin, the generalized concept of customer
permission in direct marketing had been previously discussed in the context of privacy issues.
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According to Farris and permission marketing has mainly been adopted by organizations
practicing Internet and e-mail marketing. MacPherson describes permission-based e-mail
marketing as being the future of direct marketing with such benefits as direct
communication with prospective and existing customers, interactivity, lower costs, and
targeting of qualified leads. In the early stages of Internet marketing, banner advertising and
sponsorships were theorized as having potential to provide consumers with relevant information.
Given these current issues of marketing to the online audience, researchers argue that permission
marketing offers improved targeting by helping consumers interface with marketers most likely
to provide relevant promotional messages. Although permission marketing can be
implemented in any direct medium, its use has increased with the advent of the Internet
and e-commerce. The emergence of permission marketing via the Internet is based upon the low
cost of marketer-to-consumer communication. An additional reason for executing permission
marketing via the Web has been the failure of the direct mail approach of sending unsolicited
promotional messages. Despite the enormous amount of spam disseminated on the Web, this
method does not represent a legitimate form of marketing communication. In this sense,
permission marketing can be seen as a feasible alternative for Internet marketing. In this
sense, trip experience and characteristics potentially impact information search behaviour and the
success of permission marketing. Accompanying the expansion of literature on Web-based
permission marketing has been the exponential growth within industry, specifically within the
lodging sector. While this direct method of marketing to consumers is purported to be
successful in comparison to other Web marketing techniques, relatively little is known
about its application.

Methodology

The data utilized in this study were from the 2001 Internet Travel Survey conducted for
the Canadian Tourism Commission (CTC). The focus of the Internet Travel Survey was to
evaluate online travel behaviours by collecting information relating to trip planning information
sources, number and types of online sources, time spent online specifically for trip planning,
information search timelines, influence of information search in decision making, online travel
booking behaviours, and socio-demographic information of North American travellers with
Internet access (travellers). A total of 2470 respondents completed the online survey, with those
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indicating the use of the Internet to decide on accommodations in the last 12 months selected for
analysis (n ¼ 1066). These measures were: ‘‘given name/e-mail to personalize a site’’, ‘‘given
name/e-mail to obtain a login or password’’, ‘‘given name/e-mail to subscribe to a
newsletter’’, ‘‘given name/e-mail to receive notification of discounts’’, ‘‘given name/e-mail
to enter a contest’’, ‘‘given name/e-mail to purchase online’’, and ‘‘given name/e-mail to
request a travel brochure’’. Cluster analysis, which allowed the researchers to group
consumers based upon similar characteristics, was used to identify clusters or like groups of
respondents. After the clusters were identified, each segment was profiled based upon the type of
channel to which respondents were willing to provide names/e-mails, and the total number of
channels used by respondents in each cluster. The statements that measured online habits were
‘‘How many hours, in total, do you personally surf/browse the Internet for work or personal
reasons in an average week?’’ and ‘‘How long have you been using the Internet to surf/browse
the Worldwide Web?’’ The trip characteristics were ‘‘How many vacation, leisure or get-away
trips have you taken in the past 12 months (since September 2000)?’’, ‘‘Number of nights away
from home?’’, ‘‘How many hours in total, did you spend on the Internet planning/researching
your trip?’’, ‘‘Did you have any destination in mind when you started planning on the trip?’’,
‘‘How much did you spend’’, and ‘‘Where was the destination?’’ As this study examined
destinations within North America, the responses for ‘‘Where was the destination’’ were recoded
to either ‘‘within state/province’’ or ‘‘out of state/province but within North America.’’ To
measure website design preferences, principal components factor analysis with varimax rotation
was used to reduce the original 10 questions into fewer dimensions. The 10 questions used were
‘accommodations should be presented using video’, ‘accommodations should be presented using
virtual tours’, ‘accommodations should be presented using flash’, ‘accommodations should be
presented including ratings’, ‘accommodations should be presented including price’,
‘accommodations should be presented using objective information’, ‘accommodations should be
presented using testimonials’, ‘accommodations should be presented using text’, and
‘accommodations should be presented using pictures’. The results of the principal components
analysis indicated four factors, which were ‘‘accommodation should be presented in
video/virtual tour/flash’’, ‘‘accommodation should be presented in price/ratings’’,
‘‘accommodation should be presented in objective information’’, and ‘‘accommodation should
be presented in text pictures’’.
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Results and Discussion

The results of the cluster analysis identified three respondent groups. The three segments
identified from the cluster analysis were labelled as the recurrent (RG), typical (TG), and
occasional (OG) groups. RG members provided their contact information the most while
the OG provided theirs the least. The TG represented middling responses compared to RG
and OG. The ANOVA results demonstrated that the three clusters were significantly different in
terms of the total number of the channels to which they were willing to provide their names/e-
mail addresses while visiting a site. For the RG, the average number of channels that
respondents were willing to give names/e-mails was the highest with an average of 5.93
channels compared to the TG’s 4.15 channels, and the OG’s 2.87 channels. Besides
requesting a travel brochure, the primary channels that RG respondents were willing to provide
their names/e-mails were to obtain a login or password, to enter a contest, to subscribe to a
newsletter, and to receive notifications of discounts. For the OG, the primary channels to which
respondents were willing to provide their names/e-mails were to request a travel brochure and to
obtain a login or password. Approximately 51.8 % of the RG was between 30 and 49 years old,
compared to 56.3 % of the OG, and 58.4 % of the TG. Gender composition also differed as 54.5
% of the OG was male and only 37.4 % of the TG was male. The incomes of the segments varied
as 53.7 % of the RG earned $60,000 or more, compared to 54.8 % of the OG, and only 46.2 % of
the TG. Employment status also differed as 14.7 % of the OG compared to 10.9 % of the TG was
self-employed. Homemakers were about 11 % of the RG group and only 3.6 % of the OG. More
than 3 % (3.4) of the TG were students while less than 1 % (0.9) of the OG was students. About
5 % of the TG and 0.8 % of the OG were unemployed. About 29.2 % of the RG indicated their
recent trip was more of a city trip as compared with only 16.5 % of the OG. The results of the
multinomial logistic regression indicated significant differences among the three groups
(RG, TG, and OG) based upon their socio-demographics, online habits, trip characteristics,
and website design preferences. For the RG, the odds of the number of hours online per
week among these respondents were 1.134 times greater when compared to the TG. The
odds that the number of vacation trips in the last year among those in the RG were 1.245
times more than for the TG. The odds concerning number of hours spent online
research/planning for the last recent vacation trip were 1.3 times greater for the TG. Generally,
the RGs were more likely to spend additional hours online per week, have taken more vacation
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trips in the previous year, and spend more hours online to research and plan vacation trips. In
terms of web design preferences, those in the RG were 1.38 times more likely to prefer
video/virtual tours and flash, 1.149 times more likely to prefer price/ratings on websites,
and 1.180 times more likely to prefer objective information on websites when compared to
those in the OG. RG members were also more likely to prefer accommodation sites to be
presented in video/virtual tour/ flash, price/ratings to be included on the site, and objective
accommodation information when compared to the TG. When compared to the OG, the RG
tended to spend more hours online per week and devote more hours to online
researching/planning for vacation trips. The OG tended to spend fewer hours online per week but
took more vacation trips in the last year when compared to the TG (Table 4). Additionally, the
OG was more likely to spend more time at a destination and stay online longer when compared
to those in the TG. The OG was more likely to have taken their last vacation within their
home state or province than those in the TG. These group labels reflect the degree of
potential access that marketers have to consumers to collect contact information. The
second finding is the variation in willingness to supply information for specific information
purposes. There was only one channel to which more than 60 % of all three groups were willing
to supply their information; The TG was generally less willing to provide their details than the
OG, but a majority would do so for four of the six other channels. This indicates that lodging
properties should develop their websites with three alternative strategies to collect
permission marketing information: primarily rely upon the login/password method,
advancement of current methods, or develop new avenues. A resort website should supply a
variety of channels to effectively collect information from consumers, either that presented in
this study or through development of new methods. The third finding directly relates to the fact
that information can only be collected successfully from all consumer groups through one
channel, the login/password method. An almost effortless opportunity to collect contact
information exists as the RG have a greater propensity to supply contact information through
most existing channels. Despite greater difficulties in collecting contact information from the
OG, they are still an attractive segment. They typically have a higher number of vacation
nights and are apt to travel more than the TG and only slightly less than the RG. They are more
likely to travel in a tour group closer to home than the RG and TG. Therefore, accommodation
providers looking to attract the OG should develop web-based permission marketing that
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caters to older, regional group travellers and concentrate on the most successful methods to
collect information. Given these differences among the three consumer groups, permission
marketing can and should be tailored to each group based upon the individual lodging property.
This research study analysed seven channels used to collect information to pursue a permission
marketing agenda.

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16. PERMISSION BASED MOBILE MARKETING AND SMS


AD AVOIDANCE 

Introduction 

Today mobile marketing is a reach concept that covers a wide variety of activities including
mobile advertising, SMS (short messaging service), MMS (multimedia messaging services),
location based mobile marketing, mobile applications, mobile search marketing, offline
marketing on TV, radio and print and online marketing on websites, in searches and via email.

Mobile Marketing
Leppaniemi, Sinisalo & Karjalouto made a detailed study on the mobile marketing research
literature and found out 21 distinct definitions or meanings of mobile marketing. They also found
that marketing through mobile channels has implicitly or explicitly been conceptualized as
mobile marketing; True mobility can only be achieved by an underlying mobile network
which implements mobility across the whole area. According to this distinction, the concept
of mobile marketing and its subset mobile advertising are the most appropriate definitions
for this evolving phenomenon. Thus, Leppaniemi, Sinisalo & Karjalouto separated the concept
from its underlying technologies and gave a clear conceptualization: Mobile marketing is the use
of the mobile medium as a means of marketing communications.

Mobile Advertising 
Mobile advertising refers to transmission of advertising via mobile devices such as mobile
phones. Wong & Tan defined mobile advertising as “advertisements delivered to mobile
phone users in the form of a short message system (SMS) or a multimedia message system
(MMS)”. As it is the advertiser who initiates and sends out the ads without any demand, it would
be required to get consumer’s prior permission to send the advertising text messages in a push
model campaign. Another similar study was done by Jelassi & Enders and as a result of their
study; they pointed out three types of mobile campaigns: mobile push campaign; In Mobile
Pull Campaigns, advertisers use their traditional marketing media mix such as TV, radio,
print or packaging to promote an interactive mobile campaign. Among these, only Mobile

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Push Campaigns need to ensure that all members of the database have agreed beforehand
to receive mobile advertising because of the sensitivity of the use of the mobile phone,

Permission Mobile Marketing


Permission marketing is about building an ongoing relationship of increasing depth with
customers by obtaining customers consent to receive information from the company (Carrol et al.
According to Godin, permission marketing is anticipated (people look forward to hearing
from you), personal (the messages are directly related to the individual) and relevant (the
marketing is about something the prospect is interested in). On the other hand, Heinonen
& Strandvik argue that permission is not necessarily a guarantee that the consumer pays
attention to; it’s only a door opener and gives an indication of the consumer’s potential
interest areas. From the very personal nature of a mobile device, numerous industry observers
refer to permission-based marketing as the appropriate context for mobile marketing (Kavassalis
et al). Nowadays, there are several studies explaining the significance of permission in mobile
marketing. Barnes and Cuernavaca establish that mobile marketing acceptance depends on
users’ permission, wireless service provider control and brand trust. The exploratory results
of Barnes & Scornavacca (2004) empirically and defined that four factors had a significant
impact on mobile advertising acceptance: permission, content, wireless service provider
control, and message delivery. Carroll et al (2007) believe user permission is the most
important variable, as consumers were seen to be fearful of SMS mobile advertising and
high levels of spam, as with e-mail marketing. Scornavacca & McKenzie (2006) investigated
the critical success factors of SMS based marketing campaigns from a managerial perspective
and they found that permission is one of the most significant critical success factors. (2005) say
that the implementation of permission marketing is necessary.

Bamba & Barnes (2007) developed a model about SMS ad permission and identified five factors
that affect SMS ad permission: mobile technology knowledge, attitude towards SMS ads,
relevance of SMS ads, control over opt in conditions, and brand familiarity. Kautonen et al
(2007) found that the main factor affecting consumers’ decision on whether to participate in
mobile marketing is the company’s media presence, which is a significant factor in all three
countries.McManus & Scornavacca (2005) provide a simple framework for understanding both
the potential and the effectiveness of the usage of mobile phones as a promotional media.

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However, they found that consumer attitudes towards mobile advertising are generally negative,
but consumer attitudes toward mobile advertising are positive if there is a prior permission.

Ad Avoidance
Ad avoidance can be explained as the conscious effort of consumers to stay away from the
stimulus of ads. Finally, consumers find ads boring, frustrating and irritating. There are
different ad avoidance strategies. These are (1) cognitive avoidance strategy, (2) behavioral
avoidance strategy, and (3) mechanical avoidance strategy. And finally, mechanical avoidance
strategies are observed when people try to eliminate ads. According to Vakratsas & Ambler,
consumers react to advertising stimulus in three different ways: cognitive, affective, and
behavioral. According to Cho & Cheon, cognitive component of ad avoidance consists of
consumers’ beliefs about an ad in the specific medium (for example SMS ads). Behavioral
component of ad avoidance is consumer avoidance actions such as deleting SMS ads
without reading. At this point, it should be noted that, in the literature, there is no specific
research done on the SMS ad avoidance. Thus, it is only possible to examine theoretically the
structural models of existing SMS ads and understand the relation between SMS ad
avoidance and permission. For the same reason, the outcome option forget/ignore/skip actually
shows explicitly ad avoidance behaviors. Scharl, et al made a qualitative research with
European experts and combined the results of it with the literature review to suggest a
conceptual model of successful SMS advertising. In this model, consumer control and
consumer attention can lead up to build a relationship between permission and ad avoidance. 

Findings 
Affective SMS ad avoidance explains the highest variance among the other dimensions of
dependent variable. Permission negatively related all three SMS ad avoidance types. This
indicates that prior permission causes low SMS ad avoidance. For the data analysis above,
separate regression analysis has been done for each dependent variable. However, as a dependent
variable, avoidance has three sub categories. Three dependent variables were used: Cognitive
Avoidance, Affective Avoidance, and Behavioral Avoidance. The average values less than 3
were coded as Not Giving Permission to receive SMS Advertising, and the ones equaling 3 and
over 3 were coded as Giving Permission to receive SMS Advertising. Preliminary assumption
testing was conducted to check for normality, linearity, univariate and multivariate outliers,

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homogeneity of variance-covariance matrices, and multicollinearity, with no serious violations


noted. Cognitive Avoidance F(1, 439) = 32.00, p = 0.000, partial eta squared = 0.07; Affective
Avoidance F(1, 439) = 55.71 p = 0.000, partial eta squared = 0.11; Behavioral Avoidance F(1,
439) = 40.62 p = 0,000, partial eta squared = 0.09

Conclusion
This study, having focused on only one research question, has demonstrated the effects of
permission on SMS ad avoidance. According to the result of the analysis, permission variable
has been determined as a significant variable of SMS ad avoidance. Sending SMS ad messages
without any prior permission results in ineffective SMS ad campaigns and it can also cause
ad avoidance in consumers, as this study has shown. The results presenting the low values of
variance in the regression analysis offer strong support that the permission variable is not the
only significant variable in explaining the behavior of SMS ad avoidance. Variables like
general attitude towards ads, very personal nature of cell phones and ad clutter should also
be stated in explaining the SMS ad avoidance behavior. According to the results, all the
variance values found in the three ad avoidance variables are equally low. One possibility is that
because consumers have to check their cellular phone message box to see the sender and the
content of the message for SMS ad messages, it may be sufficient to use only behavioral
avoidance, or as Speck & Elliott (1997) points out in their research, it may be best to use
mechanical avoidance. Indeed, it may be that SMS ad avoidance behavior presents itself
differently from TV or internet ad avoidance behavior. Under the light of these
interpretations, we feel the need to determine the concept of ad avoidance for SMS
advertisements before thinking about the variables affecting SMS and messages avoidance.
This research has focused primarily on the variables affecting attitudes towards SMS ads and
opts in issues in SMS advertising. To conduct a successful implementation of an SMS ad
campaign, it is necessary to explore both the positive and the negative factors either for the
consumers or the market itself. As with most similar research in this field, the use of a
convenience sample severely limits our generalization, particularly since the respondents
had previous experience in SMS ad avoidance.

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17. THE IMPACT OF PERMISSION-BASED MOBILE


ADVERTISING ON CONSUMER BRAND KNOWLEDGE

Introduction 
Brand knowledge is the key to creating a strong brand because it is the central source of brand
equity. Although there have been previous empirical studies pertaining to mobile advertising,
most of these studies focused on consumer adoption and their attitudes toward the ad, rather than
on the branding effect of the ad. Some studies that examine the branding effect were not fully
developed and were without strong theoretical basis, rendering the results inconclusive and
noncomparable. This study therefore aims to fill this research gap by empirically examining
the impact of text-based advertising on the development of consumer brand knowledge.
The findings of this research will advance the understanding of the potential of text-based mobile
advertising as a branding vehicle, and the most effective ad types for building brand knowledge.
This paper is structured as follows first, a review of the literature on mobile advertising
and brand knowledge is presented. Then, a series of hypotheses regarding the relationships
between text message advertising and each dimension of brand knowledge is provided.

Mobile Advertising 
Despite a growing body of mobile marketing literature, there is little consensus on the definition
of mobile advertising, “Any paid message communicated by mobile media with the intent to
influence the attitudes, intentions, and behavior of those addressed by the commercial
messages.” Unlike other definitions, this one places emphasis on the technology and substance
of traditional advertising concepts. The increasing significance of mobile advertising as an
effective marketing tool is largely attributed to the rapid proliferation of mobile devices,
and the unique characteristics inherent in the medium. Because mobile devices are always
with their owners and are on almost all the time, mobile advertising can reach consumers
anywhere at any time. In a push strategy, marketers initiate communications by sending
information directly to consumers without their prior request, whereas pull strategies
involve delivering messages upon consumer request or placing information on browsed
mobile content. Push-based mobile advertising has dominated mobile marketing for years, and

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is often criticized for generating unwanted messages or spam, a primary barrier for consumer
acceptance of mobile advertising.

Brand Knowledge
The concept of brand knowledge was first introduced by Keller, who defined it in terms of an
associative network model of brand information stored in consumer memory, with a variety of
associations linked to it. The content and structure of consumer brand knowledge influences
how consumers will respond to a brand’s marketing programs, upon which brand equity is
based. Brand knowledge is defined as having two components: brand awareness and brand
image. According to the associative network model, brand awareness represents a brand node in
memory, and brand image is made up of a set of brand associations representing relationships
between nodes. 

Brand Awareness 
Brand awareness refers to “the ability of a potential buyer to recognize or recall that a brand
is a member of a certain product category”. Without brand awareness, brand attitude and
brand image cannot be formed. According to Keller, there are two levels of brand awareness:
brand recognition and brand recall. Because brand recognition requires a previous encounter
with the brand, it is considered as the minimum level of brand awareness; The first-named brand
in an unaided recall represents the highest level of brand awareness, known as top-of-mind.
Brand Image Brand image has long been a subject of interest for marketing researchers,
with a variety of interpretations. On the basis of these definitions, it could be concluded
that brand image is a consumer constructed image of a brand that is developed based on
subjective consumer perceptions of a set of brand associations. Brand associations that make
up brand image are referred to as “anything linked in memory to a brand”. Low and Lamb
conceptualized brand associations as consisting of brand attitude, brand image, and perceived
quality. Brand associations could originate from many sources, including direct customer
experience, information broadcasted through media vehicles, and inferences consumers
make of the brand and its organization. In other words, brand associations exist in consumer
memory as a result of individual experiences with a given brand. Therefore, brand image can
differ among individuals and does not necessarily reflect what a brand actually is

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Methodology 
Subjects in each experimental condition were exposed to one of the three types of text message
ads, while those in the control condition did not receive any ads. Three types of text message
ads (general, personalized and interactive) were selected because they are frequently
employed in the practice and could be experimentally manipulated. General message type
refers to a plain text message without any special features added. Each campaign was
designed with three slight variations, representing the three types of messages. Then
personalized and interactive ads were developed by including the following statements into the
general ad respectively: “text ABP to 424681” and “special for recipient’s name.” This
modification was applied to every ad of the three campaigns. All three messages were sent to
each subject within a period of four weeks; one-week intervals for the first and second messages,
and two-week intervals between the second and third messages. Within three days after
receiving the final message, subjects were telephone surveyed by trained interviewers.

Measures 
All items in this study were adapted from relevant literature and measured using a 5-point Likert-
type scale, with the anchors of strongly disagree to strongly agree. Brand awareness was
measured via a 4-item scale adopted from Yoo, Donthu and Lee. These items were designed
to measure a simple aspect of brand awareness by focusing on brand recognition rather than
brand recall. Four items taken from Hu and Jasper were used to measure brand image.

Results
The sample consisted of slightly more women (56.5%) than men (43.5%). The majority of
respondents (71%) were in the age range of 20 to 39, and 27% were 40 years or older.
Respondents displayed high educational backgrounds, with more than two-thirds of the
sample having completed at least a bachelor degree. Only 3.5% did not attend college. Over
one-third reported monthly household income of at least 100,000 baht, or U.S. $3,333. Overall,
the socio-economic status of the sample reflected the profile of ABP targeted customers.

Discussion and Implications 


The objective of this study was to investigate the effects of mobile advertising on consumer
brand knowledge development. This study also confirms the findings of previous research
regarding the effects of brand awareness on brand image. An insignificant relationship
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between mobile ads and brand image indicates that ad stimuli cannot create strong brand
associations and favorable attitudes toward the brand in customer memory. This
ineffectiveness could be due to several factors reportedly having the potential to affect ad
attitudes, including irrelevant ad content, irritation, and credibility issues with the brand; In
other words, SMS ads are too simple to create strong brand associations on the basis of
information An insignificant relationship between mobile ads and brand image indicates
that ad stimuli cannot create strong brand associations and favorable attitudes toward the
brand in customer memory. This ineffectiveness could be due to several factors reportedly
having the potential to affect ad attitudes, including irrelevant ad content, irritation, and
credibility issues with the brand, in line with previous studies, brand awareness is proved to be a
strong antecedent of brand image. These findings indicate that for a quick-service restaurant
business, customers also perceived a more familiar brand as a brand with a favorable image.

Limitations and Future Research 


This study has some limitations that should be considered. At the time of the study the concept of
permission marketing was not widely adopted in Thailand. Before results can be generalized to
other environments similar studies should be conducted with different product types and brands.
Because levels of consumer product involvement are reported to have effects on brand
perception, the inclusion of two product categories with different levels of consumer
involvement would make future research of this kind more interesting and insightful. As
with other experimental designs, limitations of the study involve the internal validity of the
findings. Lastly, as text messages were proved to be an effective branding tool, future studies
could focus on more advanced mobile applications such as MMS or Bluetooth and perhaps
compare the differences in ratings of brand equity between SMS and these applications.

18. AN EVALUATION OF E-MAIL MARKETING AND FACTORS

AFFECTING RESPONSE 

Introduction 
The advent of the Internet has created a new channel for marketing. It has been described as ‘the
most important innovation since the development of the printing press’ and that it will

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‘transform not just the way individuals go about conducting their business with each other,
but also the very essence of what it means to be a human being in society’. The transition
from the old world of business management to the new world of e-customers is unique. The
effect of this change in the communication chain is altering the way companies’ market to their
customers and prospects and how they deliver their messages and products.

The Impact of E-Mail


E-mail is the fastest-growing communications technology in history. From only 2m e-mail
accounts in 1985, this grew to 891.1m e-mail accounts at the beginning of 2001. It was predicted
that the global number of e-mail accounts would break the 1bn barrier during 2002.4 E-mail has
also changed how, with whom and about what people communicate. This, together with the
benefits of one-to-one marketing afforded by e-mail, has brought marketers onto the
Internet. They recognise that e-mail provides them with opportunities to establish two-way
channels of communication that permit relationship building and real time interaction with
customers.

Acquisition Vs Retention 
E-mail is becoming a major tool for customer retention due to these speed and cost benefits. A
report by Forrester Research in August, 2001, revealed that almost 90 % of US e-mail marketing
was to existing customers. Fifty US marketers were interviewed and when asked, ‘Do you use e-
mail to accomplish the following marketing goals? If marketers have a database of
individuals who have opted-in to receiving e-mails from their organisation, then they have
access by invitation to a customer communication channel more powerful and less costly
than the letterbox that also has none of the intrusive and unwanted connotations of the
telephone. Di Ianni7 claims that ‘response rates rise from between six and 10 per cent for
untargeted e-mails to 17 per cent for targeted e-mails and 32 per cent for individualised
communications. Rosenspan quotes one client as stating: ‘we got a two per cent response in
two hours and an 11 % response within one day’.

Analysis Methodology 
This study uses two data sets that provide different insights into e-mail marketing
responsiveness. These data have been used to understand how the style of an e-mail and the list
affect responsiveness. The second data set uses ten of the original 30 campaigns to analyse
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further whether there are any patterns in the demographics and/or lifestyles of individuals
who respond to e-mails. The data were then imported into SPSS to produce a correlation
analysis of variables: clickthrough rate, unsubscribe rate, length of e-mail, number of links and
number of images. The purpose of this analysis was to review whether there are any specific
elements of an e-mail creative that affects the clickthrough rate of consumers.

Profile Analysis 
The objective of this part of the study was to review the demographic and lifestyle attributes of
respondents compared to the universes mailed. Two main studies were produced a review of
respondent’s vs mailed by demographic and lifestyle attributes assigned to them from
information held by the lead author’s company regression analysis of the respondents to
review key attributes for predicting response. When summarising all the indices from each of
the nine campaigns, initial findings show there are some characteristics that are more (or less)
likely to be common among respondents. Presentation of these findings as histograms shows the
differences. Anything above the line of 100 is positive, anything below the line of 100 is
negative. Gender shows a slight tendency to be more male (104) than female (97), although this
is not highly significant. This is further supported when reviewing occupation, where
managerial and office-based occupations show a higher likelihood of response. Age shows
peaks of high response between 30 and 40. Income shows a number of peaks and troughs. While
there is no major significant pattern for either quality newspaper or mid-market newspaper
readers, more downmarket popular newspaper readers show a greater likelihood to respond less,
with a lowest index of 90. The results above have been summarised further by identifying
the number of positive indices and negative indices against each attribute and then defining
them as ‘positive’ or ‘negative’ influencers. This further reveal that younger, professional
individuals with high incomes/disposable incomes, upmarket hobbies/newspaper readership who
are comfortable purchasing online are the generalised profile of good e-mail respondents.

Conclusions 
This qualitative research suggests that e-mail marketing is growing rapidly and should be
integrated into the overall communication mix. The response process model suggests that there
are three stages in effective e-mail marketing: getting the recipient to open the e-mail, holding
their interest and persuading them to respond, hence response rate should depend on the e-mail

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header as shown in the in-box, the e-mail contents and the recipient. The quantitative research
supports this model, with a significant correlation between response rate and subject line,
e-mail length, incentive and number of images. Regression on e-mail length and number of
images accounted for 54 per e-mail marketing: getting the recipient to open the e-mail, holding
their interest and persuading them to respond, hence response rate should depend on the e-mail
header as shown in the in-box, the e-mail contents and the recipient. The quantitative research
supports this model, with a significant correlation between response rate and subject line,
e-mail length, incentive and number of images. Regression on e-mail length and number of
images accounted for 54 per.

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19. DRIVING CONSUMER ACCEPTANCE OF MOBILE


MARKETING: A THEORETICAL FRAMEWORK AND
EMPIRICAL STUDY 

Introduction 
Since the mid-1990s, the penetration of mobile phones in developed economies has been
explosive. In view of this exceptional development, the advertising industry is becoming
increasingly interested in using the mobile phone as a medium for communicating commercial
content. Leading international brand manufacturers such as BMW, McDonald’s and Nike
have already launched campaigns using the mobile phone as a means of conveying
commercial content to customers. International market research institutes also consider mobile
marketing as a highly promising marketing instrument that will continue to gain importance. The
high global penetration of mobile communication devices is only one indicator of the high
potential of mobile marketing. Moreover, the specific characteristics of the mobile phone
allow for marketing measures not realizable by the use of other media. In addition, most
users maintain a very personal relationship with their mobile phone, regarding it almost as an
intimate accessory. Teenage users especially like to express their individuality by
personalizing their mobile phone choosing a particular brand, colour, size, display logo and
ringtone. They continuously carry their mobile phone within reach and regard it as a status
symbol and an important part of their daily lives. For adults the mobile phone has likewise
grown to become a highly personal utensil. Furthermore, the SIM (Subscriber Identity Module)
card allows for the exact identification of each mobile phone and its user. The mobile phone
therefore appears to be the ideal medium for direct and personalized customer communication.
Mobile phone users typically have their device with them at all times and may leave it on
standby for an average of 14 hours a day. An additional aspect of the mobile phone that lends
itself to effective mobile marketing is interactivity. The mobile phone is a highly interactive
medium that enables the recipient of a message to reply to it immediately. As such, the
mobile phone exhibits all characteristics necessary to establish a direct dialogue between the
advertiser and the potential customer. The attributes inherent to mobile marketing -i.e.,
personalization, ubiquity, interactivity and localization - generate significant potential for this
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innovative form of commercial communication. In addition, the mobile phone lends itself to
enlarging a campaign’s reach through viral effects. The performance features presented above
substantiate the great potential of mobile marketing as a new instrument of commercial
communication.

Developing a Model of Consumer Acceptance 


Acceptance as the Main Driver of Successful Mobile Marketing Since the mid-1990s, acceptance
has gained considerable importance as a field of research. As the success of an innovative
marketing instrument such as mobile marketing can only be ensured if it is continuously
used by consumers, mobile marketing is to be considered as a use innovation. Reflecting
these considerations, the following hypotheses can be formulated the more positive the attitude
toward mobile marketing the higher the behavioural intention to adopt mobile marketing. The
more positive the subjective perception of social norms concerning the adoption of mobile
marketing the higher the behavioural intention to adopt mobile marketing. For the research
object examined in this study the following hypothesis can thus be formulated The more
positive the subjective perception of social norms concerning the adoption of mobile
marketing the more positive the attitude toward mobile marketing. To identify and
understand the determinants of the consumer acceptance of mobile marketing it is thus
necessary to measure the factors determining the attitude toward mobile marketing. As yet,
mobile marketing has not been keenly used as a marketing instrument and only a few consumers
have experience in receiving advertisement on their mobile phone. Considering the high
advertising investments of the telecommunications industry as well as the strong media presence
of topics related to mobile communications, individuals with a high level of innovativeness are
likely to receive a large amount of information on mobile communications. In this case, the
knowledge relevant to reducing the perceived complexity of mobile marketing is the knowledge
about mobile communications. Mobile communications technology provides the
technological basis for mobile marketing. The more familiar a consumer is with mobile
communications in general the less difficult the use of mobile marketing services will
appear to him. In compliance with the conceptualisation of the acceptance construct in this
study, the relationship between the perceived complexity of mobile marketing and the attitude
towards it can be assumed as being negative. Since the perceived complexity of mobile
marketing is again negatively influenced by existing knowledge about mobile communications, it
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can thus be hypothesized the higher the existing knowledge about mobile communications the
more positive the attitude towards mobile marketing. These considerations hold important
implications for this study, as they allow us to determine the relationship between the attitude
toward advertising in general and the attitude toward mobile marketing. The attitude toward
mobile marketing has a lower resistance to change than the attitude toward advertising in
general. It therefore appears obvious that the attitude toward mobile marketing will be
highly dependent on the attitude toward advertising in general. Therefore: The more positive
the attitude toward advertising in general the more positive the attitude toward mobile marketing.
Perceived Utility Many authors claim that consumers will only accept mobile marketing if they
perceive a benefit in receiving advertising messages on their mobile phone. This implies that a
consumer’s attitude toward mobile marketing will be more positive the higher he perceives the
utility of this marketing service. The higher the perceived utility of mobile marketing the more
positive the attitude towards mobile marketing. The higher the perceived information utility
of mobile marketing, the higher the overall utility perception of mobile marketing. The
higher the perceived entertainment utility of mobile marketing, the higher the overall
utility perception of mobile marketing. The higher the perceived social utility of mobile
marketing, the higher the overall utility perception of mobile marketing. We therefore
hypothesize the higher the risk perceived, the more negative the attitude toward mobile
marketing.

Empirical Test of the Developed Model 


As an incentive for participation respondents were given the opportunity to take part in a lottery
and win a mobile phone or mobile phone accessories. However, this usage pattern for mobile
communication services appears representative of the present usage of mobile
communication services in general. The attitude towards mobile marketing thus strongly
determines the behavioural intention to use mobile marketing services. The significantly stronger
total effect of the personal attitude (0.79) on behavioural intention is plausible as the mobile
phone can be categorized as a highly personal medium. This implies that for mobile marketing
social norms have only a slight direct influence on the behavioural intention, but that they
determine it indirectly by influencing attitude. The hypotheses about the consumer-based
constructs driving the acceptance of mobile marketing are also confirmed in this empirical
analysis. "Innovativeness" influences "knowledge about mobile communications" positively, and
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the "information seeker-behaviour" construct determines "attitude toward advertising".


"Knowledge about mobile communications" again affects the "attitude towards mobile
marketing" positively. This is also true for the relationship between the constructs "attitude
toward advertising" and "attitude toward mobile marketing". Additionally, the positive
relationship between "perceived utility" and "attitude toward mobile marketing" is
confirmed as well as the positive influence of information, entertainment, and social utility
on overall utility. Confirmation can also be found for the negative influence of "perceived risk"
on the attitude toward mobile marketing. The quantitative analysis of the effects of each
construct on "behavioural intention" reveals that "perceived utility", with a total effect of 0.43, is
the central driver of the consumer acceptance of mobile marketing.

Summary and Conclusions 


This study has proved the validity of the Theory of Reasoned Action for research in the area of
mobile marketing. The research failed to deliver empirical evidence for a significant influence of
the consumer-based determinants "knowledge about mobile communications" and "attitude
toward advertising" on the attitude toward mobile marketing. A segmentation of potential
mobile marketing users based on the consumer characteristics mentioned does not appear
promising. Further, the frequently mentioned necessity for mobile marketing to demonstrate
some value in order to be accepted has been empirically validated in this study. Entertainment
and information value are identified as the central acceptance drivers of mobile marketing. These
results underline the importance of precisely embodying mobile marketing messages and
campaigns according to consumer entertainment and information requirements. Only if
mobile marketing messages are designed creatively and are entertaining, or if they provide a high
information value, will consumers develop a positive attitude towards mobile marketing leading
to the behavioural intention to use mobile marketing services. Whether the focus of marketing
effort should be on entertaining or informational messages should be decided depending on the
overall communication strategy for the individual product or service, taking into account the
desired integration of communication efforts. Another result of this study is that risk perception
negatively determines the attitude toward mobile marketing. Risk perception in the context of
mobile marketing mainly results from the fear of data misuse and the reception of unwanted
mobile marketing messages. Clearly, the establishment of a well-founded basis of trust for
mobile marketing as a generic form of marketing communication has to be a major goal for all
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advertising companies. This is the prime prerequisite for consumers’ willingness to permit the
reception of advertising messages on their mobile phones and to provide personal data for the
personalization of those messages. Thus, it is a prerequisite for the consumer acceptance of
mobile marketing. The conclusions elaborated above not only deliver valuable implications
for marketing practitioners but also reveal some major directions for future research on
mobile marketing One of the major limitations of the study is the bias from the older student
sample (age average: 30.51 years). As this concept appears to be a prime prerequisite for mobile
marketing acceptance the ideal way of implementing this idea needs to be identified.

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20. THE NEXT EVOLUTION OF MARKETING 

What Is Meaningful Marketing? 


When your marketing is meaningful, people choose to engage with you in an exchange that they
perceive as valuable. Whatever your product or service may be, when your marketing is
meaningful, the marketing itself adds value to people’s lives, whether or not they immediately
buy what you’re selling. Make no mistake: meaningful marketing is not pro bono marketing, nor
is it cause marketing (although because marketing can certainly be meaningful). For consumers,
direct marketing by mail or phone brought some added value it provided more relevant
messages and offers, along with some freedom to ignore the sales pitches altogether.
Permission marketing represents a distinct improvement over the tradition “tell and sell”
approach to marketing, but in many ways, it has made our jobs harder, as it has fuelled
consumers’ desire and motivation to opt out of marketing altogether. Research at Bridge
Worldwide and dozens of successful projects for our customers show that the more
meaningful people find your marketing, the more they’ll be willing to pay for your stuff,
the more of an investment they’ll make in it emotionally, and the more motivated they’ll
become to spread the word. They have abandoned interruption, created marketing that people
choose to engage with, connected with them in a variety of innovative new forums, and
successfully launched meaningful campaigns that have positively affected both their numbers
and the quality of life of the people they’re targeting.

What Meaningful Marketers Know And Its Solution? 


They invite prospective customers in by creating marketing that appeals to the higher unmet
needs in their overall lives. Meaningful marketers know that most of our basic needs are
satisfied by the products and services we already buy. But that is not to say that the marketers
of these basic products are exempt from creating marketing with meaning – on the contrary. If
you sell a commodity, the need and opportunities for you to create marketing whose
meaning transcends your product are limitless. Marketing itself must improve consumers’
lives and accomplish something of intrinsic value, independent of the product or service it aims
to sell, whether or not people actually ever purchase it. Loyalty programs can provide marketers
with both valuable data and a platform for one-to-one marketing, enhancing a brand’s perceived
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value. Separating the meaningful loyalty programs from the meaningless ones isn’t rocket
science if you concentrate on a few key rules of thumb: Do Focus spending on the 20 % of
customers that drive 80 % of profit. Add visible status rewards to encourage greater purchases
and word of mouth.

Meaningful Connections 
With viral videos, it takes something truly extraordinary to succeed, and this, because of the
nature of the medium, is rare. People are increasingly sensitive and cynical about videos that
try to hide marketers’ true agendas. Here are some rules of thumb for brand and agency teams
either legal’s or brand guidelines. And low-cost production values and legitimacy in other words,
you’ll get a better response from people if your video doesn’t look, feel, and smell like a slick ad.
Integrate your brand as seamlessly as possible. If you can’t work your brand into the action
somehow, then it is a wasted effort. In the experience economy, you stop at a store to buy,
say, a roll of paper towels, but you visit a branded destination in order to enjoy a fully
immersive brand experience. Yes, the point of a branded destination is still to make a sale, but
if the experience is memorable and satisfying, the stuff essentially sells itself. If a tampon
brand can realize a quadruple return on its marketing spending, surely your brand can
find a way to succeed in the social space. Contrary to what you might have learned in business
school, today’s successful marketers aren’t staying behind the scenes customers are responding
positively to this human-to-human outreach, which often adds a memorable face or personality to
the brand. By building powerful connections between people and brands, marketing can make a
product more interesting and more valuable, and seed long-term loyalty. Creating meaningful
connections is an approach that can certainly be more effective than solutions yet there is
another, even higher level of marketing that fewer brands have followed to even greater
success.

How Doing Good Makes For Good Business & Measures


Even during economic downturns like the present, the majority (71 %) of consumers globally say
that they are giving as much (or more) time and money to causes they deem worthy, and more
than half of them will continue to buy brands that support causes, even at a premium price. But
it’s not enough to do good for goodness’ sake; as with any other form of marketing, cause-
related marketing must be done right and executed well. There are three basic “musts”

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that ensure good cause marketing: Your target must believe in the cause. Start by
understanding what causes are near and dear to your core customer’s heart. If you’re
looking to reach a large, general market, choose something with broad appeal, such as the Red
Cross or the United Way; if your target is smaller and more focused, chances are that you already
know the causes that the people in it value most. Your brand must fit the cause. You’ll fail to win
business or fans for your brand if there doesn’t seem to be an organic link between what your
brand stands for and the cause you’re investing in. Everything you do on behalf of your brand
reflects on its equity, for good or for ill. Your investment must be meaningful. This may seem
to be common sense, but it bears repeating: consumers will not support a program that
does not hit some meaningful, minimum threshold of giving back and they will increasingly
use the Internet to protest any perceived tightfistedness. That’s not to say that you need to
give all of your profits to charity, or that consumers will find, say, a nickel per purchase
insignificant. There’s an old saying, “No good deed goes unpunished,” and if you pursue this
highest form of achievement marketing, you must be willing and able to defend your position
from those inevitable few who will try to take you down a rung or two. If you don’t, the crowd
will pull you down to a place worse than where you started from and probably will never
trust your brand again. Don’t jump on a crowded bandwagon just because it seems like the
right thing to do – people can see through a thinly veiled agenda and will hold it against you. If
your heart and action are in the right place, they will cast the naysayers.

Final Notes
Ad agencies have lost their role as trusted guide to CEOs a clear outcome of our mounting focus
on producing television commercials instead of business results. Google stands at number
eight on the most admired list, and is number five on the list of best places to launch a
career. Google should actually be considered an advertising and marketing-focused
company, since it makes nearly all of its money from search term advertising. But Google is
not a traditional marketing company in any sense of the word. Because it is revolutionizing the
advertising and marketing business by providing a service that people find valuable, Google is
considered the most valuable brand in the world today, even though it spends almost nothing on
advertising. Increasingly in our society, we feel less motivated by a paycheck and a pat on
the back, but instead wish to devote ourselves to work that we find meaningful in our own
lives. To return to Maslow’s hierarchy of needs, as our basic desires for material possession are
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met, we feel a natural urge to improve the world around us. And while we can contribute money
or time outside of the office, people would prefer to spend their days doing work that is itself
more rewarding. Maslow believed that the path to human happiness was best achieved through
worthwhile work. Management theorist Douglas McGregor has found that people want their
companies to stand for something, and that they will give their best effort when they are working
toward a cause they believe in. In his bestselling book The Dream Manager, Matthew Kelly
suggests, “When employees believe that what they are doing is helping them to accomplish
their personal dreams they can tolerate quite a bit. Highly engaged employees tend to have
a vision that they are working toward.” By creating marketing that people choose to engage
with, and that itself improves people’s lives, we are reaching the highest level of personal
success.

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21. A STUDY OF AWARENESS OF PERMISSION


MARKETING & ITS INFLUENCE

Introduction 
Traditionally mass marketing and interruption marketing are applied as marketing strategies.
Seth Godin is the person who founded the first company in the world to put promotional
campaigns through the internet, turning the same into the online permission marketing pioneer.
Permission Marketing and Seth Godin have become synonyms of each other. He introduced the
term permission marketing in his book “Permission Marketing: Turning Strangers into Friend
and Friend into Customers” (1999). The permission marketing is useful for small as well as
large companies. In the modern era of Permission marketing, customers consider the
marketing communication as they have opted to be marketed and rewarded with payment
or other benefits for going through marketing messages. On the one side permission
marketing makes the advertisement effective and on another side, it helps the marketers to create
and maintain long-term interactive relationships with the customers.

What Is Permission?
When an organization collects personal information from an individual, most privacy legislation
is required. An individual’s consent be given so that an organization can collect, use, or disclose
it. Explicit Permission/Consent, Implicit Permission/Consent and Opt-out Permission/Consent.
Explicit Permission/Consent refers to a contact where a person has given explicit permission
through electronic messages. Implicit Permission/Consent is also known as indirect consent. It
means one provides personal information voluntarily for an organization to collect, use, or
disclose for purposes that would be considered obvious at the time, or provides personal
information to an organization and it is used in a way that clearly benefits you and the
organization’s expectations are reasonable. Opt-out Permission/consent isalso known as
giving consent by not declining to give consent — means that an individual is given the option to
decline consent. If the individual does not clearly decline consent, consent is granted. Opt-out
consent is usually done in writing.

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Why Permission Require? 


Unsolicited advertisements may lead to consumers’ frustration and unanticipated results that is
the reason the permission matters to send promotional information. If we could better
understand what affects consumers’ willingness to give permission, this approach may
solve numbers of sensitive issues. It makes the marketers, managers and advertising
companies not only to build the strategies but also able to offer better services to consumers
and increase their competitiveness.

Are Consumers Willing to Give Permission/Personal Information?


Why would someone give you permission to market to them? The answer is quite simple:
because it’s in his or her best interest to do so! To get permission, give people something they
want. Reward them for opting-in. Rewards can be tangible-things like promotional items, prizes,
and other incentives. They can also be intangibles such as free information or special offers. The
companies keep customers up-to-date regarding its products & product line. It also saves money
as well as time for customers to visit the site of the company. Getting permission from
subscribers who want to receive company’s campaigns is the very first step to building a
successful list of prospects to send promotional messages. Marketers have to understand
the importance of permission as well as how to secure it. It is beneficial to marketer as
people expect to hear from you, this will provide to lead you among all other marketer. It
will ensure you more targeted marketing. More customer awareness ensures higher sales and
profits. Permission market makes the marketer able to use lower cost methods effectively. It
makes testing easy and tracking. It ensures less wasted advertisement, because the
advertisement message will reach to the interested customer only. It also increased
customer lifetime value, opportunities for additional sales etc. 

What Factors Affect The Consumer Permission? 


PC has influence on permission, as permission required the respondent would give permission in
context of pc because pc is the name of personal ability to do. Product brand bring loyalty as
well as trust in mind of consumer, which leads to give permission to the company to send
the promotional information. Regular used items: The items/products which are used on
regular basis encourage the consumer to give permission to send the promotional information.
Motives: Motives are the purpose of using promotional information like education, affection,

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entertainment, up-to-date, save time & efforts, fashion, escape, no disturbance, data reliability
and coordination. Past experience: Customer experience is the product of a contact/relation
between an organization and a customer over the period of their relationship that involved the
customer journey, the brand loyalty, and the environments the customer experiences during their
experience. A good customer experience means that the individual's experience matches the
individual's expectations that leads to the customer loyalty as well as it build the positive or
negative attitude towards the product/service. Quick customer care: Customer service/care is
the act of taking care of the customer's needs by providing and delivering professional, helpful,
high quality service and assistance before, during, and after the customer's requirements are met.
Easy return policy: It is the process of a customer taking previously purchased merchandise back
to the retailer, and in turn receiving a refund in the original form of payment, exchange for
another item (identical or different), or a store credit. If the customer is assured that his/her
product will be accepted back in case of damages, wrong delivery, poor quality etc., it will
change his/her attitude at time of purchase. Acceptance of permission-based marketing: There
are number of factors that give motivation of consumer to give permission like relevant and
customize information, financial advantage, demographic factors, massaging cost and privacy
issue. Attitude towards acceptance of promotional information: Attitude towards acceptance of
promotional information covers like acceptance, use individual behaviors, demographic effects,
authorization, and other perspectives promotional information. Empirical studies show that there
is a well-built relationship between the attitude toward acceptance of promotional information
and acceptance of Permission based marketing. It is not possible to carry out permission-
based marketing without clear permission from the customer. Personalization is one of the
best ways to increase the effectiveness and relevancy of information.

Research Methodology 
It details the procedure necessary for obtaining the information needed to structure or solve
Marketing research problems. Quantitative data collection will be achieved via self-
administration of the questionnaire. Questionnaire Development: the questionnaire was
structured as follows. The first part of the questionnaire consisted questions used to explore
and assess the awareness of permission marketing as well as the factors consider by
prospect/customer and marketer while giving their personal detail and developing the
marketer strategies respectively The second part contained questions related to personal
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information of consumer, who is the part of sample selected for survey. The questionnaire
included general demographic questions such as name, designation, age, education, sex, marital
status etc.

Analysis & Interpretation


As the results shows in demographic information the sample consists equal ratio of males and
females. The studies shows acceptance of Permission Marketing depends upon Permission
and Attitude towards acceptance of permission marketing. The permission has significant
positive impact on acceptance of Permission based Marketing. The results of current study
shows the significant positive impact of permission on acceptance of personal information this
shows that before any kind of promotional message/information, the company firstly take
permission to the customer. Similarly there is positive relationship between Motives of using
personal information, Incentives/benefits, Past Experience, Quick customer care, Secured
payment system, Return policy and Attitude toward acceptance of Promotional
information. Attitude has a significant result and studies shows a positive relationship between
the acceptance of promotional information and attitude. Our results describe that as the attitude
towards acceptance increase the permission towards acceptance of promotional information. To
upsurges the Permission Based Marketing, need is to build up the permission as well as the
attitude towards the acceptance of Promotional information.

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22. YOU’VE GOT NEWS: A PERMISSION-MARKETING


MODEL USING SPONSORED ELECTRONIC
NEWSLETTERS  

Introduction 
According to Seth Godin permission marketing it takes advantage of new technology better than
other forms of marketing. Direct marketing is defined as an interactive system of marketing
which uses one or more advertising media to generate a measurable response and/or
transaction at any location. With the rapid development of e-commerce, e-mail has become
an important tool in direct marketing. Therefore, permission-based e-mail marketing is a
growing trend as well. Spam is an e-mail message of a commercial nature that has been sent
without the receiver ís explicit permission. In contrast, permission marketing bears the ìopt-inî
feature. Advertisers consider e-mail the perfect targeting tool, providing direct access to
consumers. Among the different forms of online advertising, permission-based e-mail
messages are considered most trusted and least annoying. The increasing spam trend has
negatively impacted the use of e-mail as an advertising medium. Any permission-based e-mail
marketing model would have to consider all parties affected by the spam phenomenon the
end consumers annoyed by unsolicited e-mail messages. The advertisers - who find more and
more difficult to use e-mail as a medium for their messages A solution is needed to clear the
negative feelings toward e-mail marketing. All three parties mentioned above could benefit
from fewer and better-targeted e-mail marketing messages. The authors looked for a
mediator among the three parties that would bring back credibility to e-mail messages. In
addition, Internet subscribers have learned to distinguish newsletters from unwanted e-mail. The
term sponsored electronic newsletters refers to e-mails featuring both news content by the online
newspaper and advertising content provided by marketers.

The Model 
The paper proposes a model where all parties should be satisfied: online newspapers, ISPs,
customers, and advertisers. Under the model, ISP customers would receive sponsored electronic
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newsletters in exchange for a discount on the Internet fee. When signing the discounted contract
with the ISP, the customers would be able to specify the broad advertising categories they are
interested in (e.g., travel offers, retail coupons, job offers). Besides knowing the geographical
area and demographic characteristics of the consumers the advertisers would also know
their preferences. Online newspapers would have an outlet for their electronic newsletter
as well advertisers willing to place ads in the newsletter. The advertisers would be more
efficient in sending e-mails to consumers who stated they accept e-mail marketing. In order for
the proposed model to work, the question to be answered is whether there are Internet users who
would accept sponsored electronic newsletters in exchange for a lower monthly rate and who are
these users.

The Case of Online Newspapers


Ever since they appeared on the Internet, online newspapers have been struggling to break even.
While a few well-known ones have succeeded (e.g., the New York Times in the United States
and The Guardian in the United Kingdom), the vast majority of newspapers present online still
have difficulties convincing advertisers use their pages (Sullivan 2002). The online newspaper
community blames the lack of standardized advertising effectiveness measures. The absence
of recognized ìpersuasion toolsî leaves online newspapers without the advertising revenue
enjoyed by their print counterparts. Online newspaper managers had to develop creative business
models that would help the e-paper survive (McCarthy 2003). While they were free at the
beginning, online newspapers today require subscription fees for their archived articles or for
their e-mail news summaries. In 2001, the Editor & Publisher trade journal was announcing the
second act in the life of online newspapers. Convinced that advertisers were not switching to
the online version, newspapers were giving up the ìrevenue draining websitesî and were
digitizing and then distributing over the Internet their print version. Also, all of the TV sites
surveyed offer e-mail-based advertising products compared to only 43 % of the newspaper sites,
another tool that helps publishers better target advertising. This paper focuses on the use of e-
mail as an online news delivery and marketing tool and proposes a business model that
benefits online newspapers, ISPs, customers, and advertisers. In the proposed economic
model, online newspapers send sponsored electronic newsletters to users willing to accept them
in exchange for a discount on the Internet fee.

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Theoretical Perspectives 
By using acceptance of sponsored electronic newsletters as the counter attitudinal behavior and a
discount on the monthly Internet fee as the incentive, this study looks at establishing the
preferred amount of incentive for accepting e-mail marketing. Receiving information
through e-mail offers some competitive advantage in terms of time and cost, is compatible with
current needs, and it is simple and trial-able. The authors decided to first look at the impact of
income and age on the consumer ís attitude toward e-mail marketing. The younger a
person the more supportive of e-mail marketing he/she is the higher a person ís income the
more supportive of e-mail marketing he/she is. The lower the number of marketing e-mail
messages received by a person per day the more supportive of e-mail marketing he/she is. H1d:
The higher the amount of the Internet monthly fee paid by a person the more supportive of
e-mail marketing he/she is. The authors then decided that the consumer ís attitude toward e-
mail marketing could be classified as a personality variable and analyzed the influence of
demographic and personality related variables on the willingness to accept news over e-mail for
a discount on the monthly Internet fee. Men are more likely to accept news over e-mail than
women. H2b: The younger a person the more willing to accept e-mail newsletters in exchange
for a discount on the monthly Internet fee she/he is. H2c: The higher a person ís income the more
willing to accept e-mail newsletters in exchange for a discount on the monthly Internet fee she/he
is. H2d: The more supportive of e-mail marketing a person is the more willing to accept e-
mail newsletters in exchange for a discount on the monthly Internet fee she/he is.

Methodology
A questionnaire was posted online and the URL mass-e-mailed to all members of a Midwestern
university community. The sender of the e-mail was a professor at the university and the subject
line read ìspam research.î More than 2,500 responses were received, a response rate of almost 8
%. (1995), Smith (1997), Tse (1998), and Jin, Cropp and Cameron (2002) reported e-mail
response rates of 8 % or lower. Since the focus was on the respondentsí interest in accepting e-
mail messages in exchange for a discount on their Internet fee, the respondents who indicated
they have free Internet access (provided by the university) were excluded from the analysis.

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Analysis 
The willingness to accept marketing e-mails for a discount was coded as a dichotomous variable
(Yes/No) by coding ìYesî when the respondent indicated a %age of discount at which he/she
would accept marketing e-mails and ìNoî when the respondent indicated that he/she would not
accept e-mail marketing for any discount.Logistic regression was used to determine the
influences of age, income, sex, current Internet monthly fee, and number of spam per day on the
consumerís attitude toward e-mail marketing.

Discussion 
The interest level in e-mail marketing was once again confirmed as this study was conducted. In
the current study, over 50 % of the respondents appeared willing to receive electronic
newsletters in exchange for a discount in the Internet fee. As probably was the case with
newspapers and broadcasting, the process of people getting used to the way the media operate
(getting used to print ads and TV commercials) takes a certain period of time. The current
study found that age is an important factor in distinguishing early adopters from laggards.
As stated earlier, the purpose of this paper was to test a new business model for
permission-based marketing using sponsored electronic newsletters. We hope the findings of
this exploratory study will provide initial insight into the levels of acceptance of such a model as
well as the different characteristics of those willing to take advantage of it. The authors caution
nevertheless that the convenience sample included only university affiliated respondents, who
either currently study or have an interest in higher education.

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23. THE USE OF E-MAIL MARKETING IN ACCORDANCE WITH


PERMISSION MARKETING APPROACH IN PROMOTION OF A
STUDY PROGRAM

Introduction 

Although the use of e-mails for promotion has been in place for decades, a large number of
emails received by consumers and potential consumers are not requested by them and in most
cases do not provide adequate value for them. With regard to the above-mentioned situation, the
permission marketing approach brings in multiple novelties reflecting primarily in the fact that
the sender of the promotional message strives at all stages of the relationship with potential and
current consumers to obtain permission to communicate with them and to communicate the
appropriate value.

Permission Marketing

The foundations of permission marketing can be identified in the work of Seth Godin, who
published Permission Marketing: Turning Strangers into Friends and Friends into Customers
Hardcover in 1999. It is such promotion, which he terms interruption marketing, that he contrasts
to permission marketing. The first way suits marketers who use interruption marketing. Such a
marketer buys the most expensive clothes, new shoes, the most fashionable accessories, and
then, based on the best databases and marketing strategies, chooses a demographically ideal
singles bar. In this bar, he approaches the nearest person and proposes marriage, and if he gets
rejected, he repeats this process with every person in the bar. On the other hand, the marketer
who uses permission marketing opts for dating. It is clear from the above story that acting in the
case of permission marketing approach is significantly different. increase the level of permission
that the seller receives from the potential customer, e.g. Krishnamurthy (2001) gives a
conceptual framework for cost and benefit analysis related to customer experience in permission
marketing programs. Tezinde, Smith and Murphy (2002) conclude that customer response to a
campaign devised in accordance with permission marketing is affected by: relevance—
personalization, brand equity, and previous relationships. Opreana and Vinerean (2015) point to

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the significance of this approach in the conditions of prominent presence of electronic business,
terming it inbound marketing. Comparing such digital marketing with traditional marketing, they
identify interactivity and engagement. Within this approach, they identify 4 components: brand-
focused marketing communication, marketing content, social media marketing and search engine
optimization. Presenting the elements of this approach on behalf of Hubspot company, which
rates among the world’s most prominent in software generated based on it, Bernazzani (2018)
points out that one undergoes the attract, convert, close, delight phases evolving from stranger,
through visitor, potential customer and customer all the way to promoter. Whereas the roles of
blogs, landing pages and internet sites are more significant fore-mail gathering in the first phases,
they can even be gathered through social networks, while e-mails gain importance in later
phases.

E-Mail Marketing Within The Promotion Of Higher Education Institutions In Accordance


With Permission Marketing Approach 
As far as the promotion of a certain study program is concerned, it is first necessary to consider
the entirety of communications conducted by the institution where this program is realised. An
example of the former can be visits by appropriate teams consisting of teaching staff and/or
students to schools, where they would give presentations and gather e-mail addresses from the
interested secondary school students, as well as permissions to communicate with them in this
manner. In addition to the contents and characteristics of the study program and higher education
institution, as well as contents closely related to them, such as employment opportunities,
earnings of the alumni, recognition of the diploma abroad, one must also consider all other
characteristics of life that the potential student will have. On the other hand, through the study
program, students must fulfill their wish to acquire knowledge in particular areas, so that the
offer of contents related to this knowledge is another desirable segment of the appeal phase. In
the recommendations given by Hubspot, the following phases are mentioned: ▪ awareness (when
future students or their parents become aware of their need and/or desire for an institution of the
kind that is being promoted, that is, for a similar type of education), ▪ consideration (when the
potential student or his/her parent has clearly defined the problem), and ▪ decision (when the
potential student or his/her parent has made a decision on the strategy, method, and approach to
solving the problem and strives to focus their choice). Various educational resources are
recommended in the first phase: ▪ blogs and articles, ▪ free instructions, ▪ video footage, ▪
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checklists, ▪ posts on social networks. What is recommended is distribution of: ▪ webinars, ▪


virtual tours, ▪ career advice, ▪ profiles of current students and alumni. In the third phase, it is
recommendable to distribute: ▪ schedules of important dates, ▪ scheduling appointments through
websites, ▪ consulting sessions with professors. For instance, the following is recommended in
the awareness phase: ▪ 2 years before enrolment, distributing materials about what is assessed or
examined at the entrance exam, so that candidates can have time to prepare, ▪ 1 year before
enrolment, offering the opportunity for asking questions and receiving answers from current
students. In the consideration phase, the recommendations are: ▪ 6 months before enrolment –
sending important dates, ▪ 1 month before enrolment – schedules of possible consulting sessions
about entrance exams. In the decision phase, it is recommended to: ▪ send a reminder e-mail 1-2
days beforeenrolment, ▪ send a welcome e-mail after enrolment. The use of the following is
recommended in creating the various above mentioned contents: ▪ current students (e.g. “What
would I like to have known before coming to the college?”, “10 best hidden spots for studying”
and “7 cool lectures you simply must visit”, ▪ alumni (“Your most important experiences before
graduation”, “What did I do for the subsequent 4 years?” and “10 steps in preparation for life
after graduation”), ▪ professors and department heads (how the lectures are taught, what was
done within the courses earlier) ▪ student services (“10 best tips before the entrance exam”,
“Questions to ask on open door day” and “What to expect from various study programs?” In the
context of the above points, it is recommended to send the following types of mails to lists that
should be segmented according to appropriate criteria: ▪ helpful resources, ▪ newsletters, ▪
important dates, ▪ information on courses, ▪ offer to connect. The example given in the above
mentioned literature refers to a “smart list”, comprised of people six months before the
enrolment, who download a report on life on campus and perform a certain number of visits on
the web page about student life.

An Example From Domestic Practice 


Starting from the above principles, a campaign has been partly completed, and partly is still in
progress, by the study program of Marketing of the Faculty of Economic in Subotica, with the
assistance of the Centre for Marketing in Novi Sad and Centre for Marketing in Subotica, during
a part of the lecture process on relevant courses from the specialised area of Marketing. The
current students of the Marketing study program first needed to be trained in basics of email
marketing, for which a tutorial provided by Hubspot was used, and which offers a free
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certificate. Earning such references – certificate, training in the above mentioned tool and
participation in planning, conduct and evaluation of the campaign – the students themselves
build their own future competitive advantage on the labour market. The campaign formally ends
at the point of enrolment, but communication with the studentsneeds to be continued after that
date as well, suggesting the value of choice and possibly transforming them into the ambassadors
of the institution and study program in subsequent campaigns.

Conclusion 
The phases of its implementation were also presented, as well as highlighting the adequacy of
various instruments in the context of various phases, and pointing to the position of e-mail
marketing in this process. The second section of the paper offers recommendations for promoting
higher education institutions in accordance with permission marketing approach. Although the
key focus was on e-mail marketing, the paper also presents a range of possibilities in the
development of a campaign for enrolment of students in the context of various phases through
which potential customers pass, as well as the timeframe. Finally, the paper presents an example
of email promotion of the Marketing study program of the Faculty of Economics in Subotica,
particularly in accordance with permission marketing approach. In addition to the presentation of
a modern approach to promotion, the paper is also significant from the aspect of a range of
practical advice, not only concerning educational institutions, but also in the case of appropriate
modifications, and a much larger number of market players.

24. MOBILE MARKETING: EXAMINING THE IMPACT OF TRUST,


PRIVACY CONCERN AND CONSUMERS' ATTITUDES ON

INTENTION TO PURCHASE 

Introduction 
Mobile phones are far reaching the globe and leading to dramatically unprecedented change in
the way people communicate Friedrich et al. This ubiquitous phenomenon has made a
revolutionary contribution in the adoption and diffusion of mobile commerce since it
allows marketing activities to be tailored to actual customers' needs and tastes, and
targeting customers more accurately through using one-to-one marketing communications
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compared to impersonal and mass media. The incredible number of innovations which are
introduced yearly, and the fast-technological developments, have also changed the advertising
philosophy, leading firms to adopt mobile marketing strategy as a way to make their advertising
messages break through the clutters. Early scholars conclude that mobile marketing provides
marketers with a real opportunity to get a high response rate compared to traditional
media e.g. The justification for that is that people within the mobile marketing network
such as customers, businesses, advertising agencies, marketers and brands can interact
with each other in more creative and fashionable way unlike before. Based on that, the
primary purpose of this paper is to investigate the influence of mobile marketing as a
communication tool on generating consumers' purchase intentions and to measure consumers'
attitudes toward such strategy.

Mobile Marketing Association (MMA, 2006), defines mobile marketing as "the use of wireless
media as an integrated content delivery and direct response vehicle within a cross media or
standalone marketing communications program". In the same vein, Wireless Advertising
Association (WAA) defines mobile marketing as releasing advertising messages to mobile
phones or PDAs through the wireless network (Xu, 2007). The authors found that
academicians have used different terms interchangeably such as mobile advertising,
wireless marketing and wireless advertising which all refer to mobile marketing. However,
what tends to be unique about mobile marketing strategy is that the mobile device is
exceptionally personal thus enabling marketers and advertisers to interact directly and get
customers engaged in a direct dialogue by replying to the message content (Bauer et al. To
support this line of thought, WWA carried a survey in mobile marketing industry and found that
more than 90% of mobile advertising practitioners, agencies and professionals agreed about the
necessity of the medium to be personalized in order to succeed. This is evident in the findings of
Forrester research where 47% of companies have set plans for boosting their mobile marketing
expenditures next year, third of interactive marketers now utilize mobile marketing, and another
one-third plan to do so. Mobile marketing formats encompass short message service (SMS),
multi media service (MMS) and WAP pushes messages which all aim to provide all players
in the mobile marketing environment with a clear measures against which to judge the
medium. The inexpensive cost of using SMS and MMS to deliver message contents
compared to traditional media, and the interactivity has made such formats the backbone
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for mobile market. Previous research Graham, studied the future of wireless advertisings and
found that 60% of respondents showed interest in receiving text advertising through mobile
phones and Black reported that brand awareness for the advertized brand increased more
than 80% among respondents who received on average six SMS advertising. Rettie and
Burm (2001) reported that 90% of respondents found it unacceptable to receive SMS ads from
unknown businesses, while 49% of respondents found it acceptable to receive SMS ads from
Internet service providers they had subscribed to, and 44% found it acceptable as well if they
could have discount call in return. Other factors such as the ability to use location-based
advertising and the perceptions of how well consumers accept SMS advertising were found to
have potential influence on firms' decisions to adopt SMS ads. Bauer et al found that
consumers who were more familiar with mobile communications perceived the use of
mobile marketing services less difficult compared to consumers who were unfamiliar. Jong
and Sangmi found that mobility, convenience and multimedia service were positively related to
attitudes toward mobile advertising, which in turn lead to favorable behavioral intentions.
Chowdhury et al found that when mobile advertisers presented mobile ads pleasingly, with
appropriate information, consumers would not be annoyed and there was a high possibility
that they would like the ads. (2002) and Krishnamurthy (2001) reported that the perception
which consumers hold about SMS advertising messages is related to the granted permission to
marketers confirming by that their willingness to receive SMS advertising messages. Godin
pointed out that consumers who subscribed to a particular company were usually interested in
that company's services and products, and hence, when consumers received SMS advertising
messages, they were more likely to pay more attention and read the message compared to
consumers who receive messages from companies which they are not subscribed with.

Hypothesis Developments and Proposed Model


As one of the main purposes of this study is to examine the influence of mobile marketing on
consumer purchase intention, and the attitudes of consumers toward such strategy,
connecting attitudes, beliefs and purchasing intentions is a core issue and central part for
purpose of the study, pointed out that the low cost of SMS advertising messages might
provoke firms and advertising agencies to send excessive spam messages, which leads to
unfavorable beliefs and negatives attitudes towards SMS marketing related advertising. In
the same vein, it is expected that consumers who have a negative attitude toward extensive direct
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mail solicitation will lead to form a negative attitude towards direct marketing. Doherty (2007)
concluded that consumers would accept SMS advertising only if it was relevant to
consumers' interests and involved quality advertising. (2005) reported that short, funny
and entertaining and compact SMS advertising messages which were relevant to the target
group, and informative about prizes and promotions, were more likely to influence
consumer purchasing intention toward the advertised products. Since SMS advertising
message can facilitate two-way communication between users, then such communication can
promote a higher level of interactivity between consumers and SMS advertised messages (Liu
and Shrum, 2002). Consumers who believe that SMS advertising messages are useful and
relevant to their interests are more likely to participate in permission-based advertising
programs. Consumers who believe that SMS advertising messages are useful are more
likely to buy the advertised products. Therefore, the perceived entertainment value of
message contents in mobile marketing will have an effect on consumers' attitudes toward
SMS advertising messages. Personal Use Since mobile advertising is operationalized through
the personal mobile device, then the activities in responding to SMS advertising such as sending,
receiving or deleting impose on consumers to interact with such messages. It is expected that
consumers who have negative attitudes towards direct advertising are less like to accept
receiving wireless advertisings messages. Hanley and Becker concluded that when consumers
grant their permission in advanced to receive SMS advertising messages they would accept and
agree to give up control to the firm, at least on the short run. Therefore, it is expected that in
mobile marketing, where the perceived risk and uncertainty is high, trust will influence
consumers' intention to participate in permission-based advertising programs, and hence, the
following hypotheses are formulated. There is a negative relationship between past reactions
and trust. Consumers who have negative attitudes towards direct advertising are less likely
to share their personal information via SMS advertising messages.

Results 
It seems that consumers who were subjected to extensive advertising reacted negatively towards
mobile marketing advertising and consequently had less intention to participate in permission-
based advertising programs. It also appears to be a positive relationship between perceived
usefulness and intention to participate, as consumers who believed that SMS advertising
messages were useful and relevant to their interests expressed more readiness to participate
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in such programs. Consequently, consumers who were convinced that SMS advertising
messages were useful expressed the desire to buy the advertised products. In terms of
entertainment, the study shows that consumers who thought that SMS advertising messages were
entertaining expressed more readiness to participate in such programs, and that there was a
positive relationship between perceived entertainment and purchase intention i.e. consumers who
believed that SMS advertising were entertaining were more likely to buy the advertised products.
consumers who had negative attitudes towards direct advertisings were less inclined to receive
wireless advertising messages. In terms of permission marketing, it appears to be a positive
relationship between permission (intention to participate) and purchase intention in that
privacy concern was negatively related to intention to participate in permission-based
advertising programs. consumers who expressed negative attitudes toward direct marketing
were less likely to share their personal information via SMS advertising messages. consumers
who were subjected to extensive advertising pointed out that they were less likely to trust firms
using SMS advertising. As there to be negative attitudes towards direct advertising, both mobile
operators and advertising agencies are advised to make all efforts possible to rectify such
negative attitudes by building close relationships with consumers through the full utilization of
the data available about such consumers and embody such knowledge in their target strategies. It
would be also interesting to see how mature consumers react to SMS advertising messages. 

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25. MOBILE MARKETING: THE ROLE OF PERMISSION AND


ACCEPTANCE

 Introduction 
Mobile devices have been one of the fastest adopted consumer products of all time. The
proliferation of mobile Internet devices is creating an extraordinary opportunity for ecommerce
to leverage the benefits of mobility. Mobile e-commerce, commonly known as m-commerce, can
be defined roughly as the ability to purchase goods or services through a wireless Internet-
enabled device. This mobile Internet revolution is leading current ecommerce business models to
a reconfiguration. Mobile commerce is not included in the traditional e-commerce market
models per se, but m-commerce will be able to increase the overall market for e-commerce,
because of its unique value proposition of providing easily personalized, local goods and
services at anytime and anywhere. As each mobile device is typically used by a sole
individual, it provides a suitable platform for delivering individual-based target marketing. Many
analysts are pointing out that marketing will be the leading mobile commerce application. It is
believed that in the near future marketing through the mobile phone will be as common a
medium as the newspaper or TV. However, mobile marketing is unlikely to flourish if the
industry attempts to apply only basic online marketing paradigms to its use; Sending millions of
messages to unknown users (known as spam) or banner ads condensed to fit small screens [19]
are doubtless unlikely to prove ideal modes of ad delivery to a captive mobile audience. The
following two sections provide a basic review of the technological platform for mobile
marketing and an introduction to marketing on the mobile Internet (focusing on advertising)
respectively. The fourth section presents a conceptual definition and model for permission on
mobile marketing applications, while section five provides a model for mobile marketing
acceptance and examines a number of possible scenarios for mobile marketing, based on the
previous analysis.

The Technological Platform For Mobile Marketing 


Kalakota and Robinson [4] define mobile marketing as the distribution of any kind of message or
promotion that adds value to the customer while enhancing revenue for the firm. The current
wave of network investment will see faster, ‘packet-switched’ networks – such as General Packet
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Radio Service (GPRS) - that deliver data directly to handsets, which are, in essence, always
connected. For marketing purposes, SMS (a text-messaging service) and WAP (a proprietary
format for Web pages on small devices) are considered the key platforms in Europe and the US,
with iMode (based on compact Hypertext Markup Language or cHTML) and iAppli (a more
sophisticated version of iMode based on Java) taking precedence in Japan [20]. At the level of
the handset and interface, the brand and model of the phone or PDA are the most important part
of the purchase decision, with ‘image’ and ‘personality’ being particularly important to young
customers [21]. NTT DoCoMo’s P2102V (Figure 1a) is the company's first 3G videophone
handset capable of video clip e-mailing and extended stand-by time, and the first FOMA model
to accept memory cards. NTT DoCoMo’s SH2101V (Figure 1b) is a 3G compatible two-part
terminal - a PDA base unit with a Bluetooth wireless handset. The FOMA SH2101V base unit
has a built-in camera that enables 64kbps real-time videoconferencing - while the wireless
handset is used for voice communication.

Marketing On The Wireless Medium 


The wireless Internet presents an entirely new marketing medium that must address traditional
marketing challenges in an unprecedented way [20]. Key industry players in the value chain
providing wireless marketing to the consumer are agencies, advertisers, wireless service
providers (WSPs) and wireless publishers. For agencies and advertisers, the wireless medium
offers advanced targeting and tailoring of messages for more effective one-to-one marketing. For
the WSP, the gateway to the wireless Internet (e.g., BT, AT&T and TeliaSonera), wireless
marketing presents new revenue streams and the possibility of subsidizing access. Similarly,
wireless publishers (e.g., the Financial Times, New York Times and CBS Sportsline), as a
natural extension of their wired presence, have the opportunity for additional revenue and
subsidizing access to content. At the end of the value chain, there is potential for consumers to
experience convenient access and content value, sponsored by advertising [4, 20]. Like the wired
medium, marketing on the wireless medium can be categorized into two basic types: push and
pull. These are illustrated in Figure 2. Push marketing involves sending or ‘pushing’ advertising
messages to consumers, usually via an alert or SMS (short message service) text message. It is
currently the biggest market for wireless advertising, driven by the phenomenal usage of SMS -
in December 2001, 30 billion SMS messages were sent worldwide [23]. An analysis of SMS
usage has shown unrivalled access to the age group from 15 to 24 years – a group that has
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proved extremely difficult to reach with other media [24]. Pull marketing involves placing
advertisements on browsed wireless content, usually promoting free content. Any wireless
platform with the capacity for browsing content can be used for pull advertising. WAP and
HTML-type platforms are the most widely used. Japan has experienced positive responses to
wireless pull marketing, using iMode. Interestingly, wireless marketing in Japan has more
consumer appeal than marketing on the conventional Internet. Click-through rates for mobile
banner ads during the summer of 2000 averaged 3.6 %, whilst those for wireless email on iMode
averaged 24.3 %. Click-through rates for online banner ads on desktop PCs in Japan often
average no more than 0.5 or 0.6 % Overall, current push services are very much in the lower left-
hand quadrant of Figure 2. Until the availability of better hardware, software and network
infrastructure, services will remain basic. With faster, packet-based networks and more
sophisticated devices, protocols and software, richer push-based marketing is likely to emerge,
pushing the possibilities into the top left-hand quadrant. 

Permission Issues For Mobile Marketing Applications 


The discussion above has provided some insights about mobile marketing, particularly in terms
of the wireless technological platform and basic applications of the medium. The purpose of this
section is to discuss the key-variables of mobile marketing and present a conceptual model of
permission for applications on this field. In order for mobile marketing to reach its full potential
of personalized information available anytime, anyplace and on any device, it is necessary to
understand the key characteristics of the mobile medium involved. We believe that any mobile
marketing application should contemplate the following aspects: • Time and Location.
Individuals may have a routine that takes them to certain places at certain times, which may be
pertinent for mobile marketing. If so, marketers can pinpoint location and attempt to provide
content at the right time and point of need, which may, e.g., influence impulse purchases [26]. •
Personalization: one of the most important aspects to consider is that wireless users demand
packets of hyper-personalized information, not scaled-down versions of generic information
[18]. The combination of the variables mentioned above allows us to understand one of the most
important issues in mobile marketing: permission. The concept of permission marketing is based
on approaching customers to ask for their permission to receive different types of
communication in a personal and intimate way. It is well known among marketers that asking for
a customer’s permission is better and easer than asking for forgiveness [11]. As mobile
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marketing has a more invasive nature than any other media, a lot of attention must be given to
permission issues in order to make the mobile marketing experience pleasant to the users. Here
are a couple examples of how mobile marketing can help consumers and business: • You are
getting ready to go to the airport and you receive a sponsored message saying that your flight is
delayed for four hours. Figure 3 helps us visualize the concept of permission on mobile
marketing. In essence, ‘opt-in’ involves the user agreeing to receive marketing before anything is
sent, with the opportunity to change preferences or stop messages at any time. Several current
initiatives and industry groups - such as the Mobile Data Association - are helping to build
standards of best practice for the mobile data industry [31]. As permission for mobile marketing
applications should be dynamic, it is important to be able to identify customer response to
events. Stemming from the technological capabilities of mobile Internet-enabled devices, the
measurement of reaction marketing is facilitated. It also will help the identification of which
mobile marketing strategies work and which don’t. The constant feedback permits marketing
strategies to be dynamically adjusted to produce better results for marketers.

Acceptance Of Mobile Marketing 


Now we have discussed the technological and conceptual factors surrounding mobile marketing,
let us take examine the variables that influence customer acceptance. However, several recent
studies help us to understand some key factors contributing to the penetration and acceptance of
mobile marketing among consumers [30, 32, 33, 34, 35]. The Enpocket study [30, 34, 35] found
that consumers read 94 % of marketing messages sent to their mobile phones. Moreover, the
viral marketing capability of mobile marketing was identified by the fact that 23 % of the
customers surveyed by Enpocket showed or forwarded a marketing message to a friend. If
delivered by a trusted source such as a wireless service provider (WSP) or major m-portal,
acceptance of SMS marketing (63 %) was considered comparable to that TV (68 %) or radio (65
%). Similarly, the rejection level of SMS marketing from a WSP or portal was just 9 %, while
SMS from other sources was rejected by 31 % of those surveyed. For example, 74 % of
customers indicated that WSPs were the most trusted organisation to control and deliver SMS
marketing to their mobile devices. Figure 4 - insert here The indicative evidence and discussion
above provides strong hints towards three main variables that influence a consumer’s acceptance
of mobile marketing: user’s permission, WSP control and brand trust. Figure 4 presents a
conceptual model for mobile marketing acceptance based on these factors. An example for
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scenario 1 would be if a trusted brand such as Coca-Cola sent a marketing message through the
user’s WSP (e.g., Vodafone) with his or her permission. This assumption is supported by the fact
that the great majority of the consumers interviewed by [34] are fearful that SMS marketing will
become comparable to e-mail marketing with high levels of unsolicited messages. WSP control
can directly affect how mobile marketing business models are configured. On the other hand,
Figure 5b shows a model where marketers can send messages directly to users without the
control of the WSP. Another issue to be taken in consideration is how WSP control can affect the
revenue model for mobile marketing.

Conclusions 
The immediacy, interactivity and mobility of wireless devices provide a novel platform for
marketing. The convergence between marketing, CRM and m-commerce represents a potentially
powerful platform for wireless marketing. A key aspect of mobile marketing is likely to be
obtaining permission from the users to send information to their mobile devices. Further, aside
from initial pilot investigations, it is not abundantly clear how consumers will respond to the idea
of mobile marketing. Clearly, the issues concerning mobile marketing acceptance need to be
further investigated. for example, how can companies, marketers, WSPs and consumers create a
win-win environment? In addition, although it is expected that consumers will not tolerate
receiving messages without permission, more work is still needed to explain how consumers give
permission to receive mobile marketing. Currently, wireless marketing is embryonic and
experimental - the majority of wireless marketing is SMS based (simple push services - lower
left-hand quadrant of Figure 2). The next generation of devices and networks will be important in
the evolution of wireless marketing; If these conditions hold, wireless could provide the
unprecedented platform for marketing that has been promised. Clearly, it is too early to tell, but
future research aimed at examining these fundamental issues will help to further understand the
implications of permission based mobile marketing.

26. PERMISSION V/S PERMISSIVE MARKETING

(BY JERRY SHERESHEWSKY, 2003)

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Seth Godin coined the phrase ‘permission marketing’. This article is an attempt to explain
permission fully, especially in contrast to the egregious nature of what many have tried to pass
off as permission marketing.

First let’s try to define what is permissive marketing, so like permissiveness in general it is a
disregard for the feelings and sensitivities of others, and is a focus on the immediate needs and
self- gratification urgencies of the marketers.

Rather permission marketing is the type of marketing which aim to build relations on trust and
companionship with the customers, it tries to plead people in their own convincing manner. The
article also talks about how to make the right decision about choosing the prospects from online,
a prospect that provide answers or solution to all your relevant questions and queries that
basically justify and understands your need, that one is the right online prospect or site for you.
And this is not a onetime process, it’s an ongoing process from the moment you come in their
contact. And one more important thing is this that you can’t provide them access to all your
information in the first encounter with them, it’s more like a method of taking from one hand and
giving away from the other hand. More like an equal or fair enough deal.

Talking about a buyer then, a buyer is who is ready to buy what you are selling, willing to buy it
from you, able to complete the transaction. if a buyer fails to fulfil any of one condition even in
this, then he’s not a buyer but just a mere prospect. There’s another factor that is scalability
which is understood by permission marketing but not understood by permissive marketing.
Scalability is the ability of a computing process to be used or produced in a range of capabilities.
The more targeted or aimed companies do not try to do business with every type of customer,
they aim with a very limited amount of people. And the more expensive or risk- laden the
product or service the more limited the market. So, it makes only good sense to consider the
appropriateness of dating prospect before pooping the question. And permission marketing is
significantly harder because it is a process it takes place over time.

Customer relationship marketing, CRM is a process that focuses on the centrality of the
customers. It basically tries to provide and treat the customers as per their comfort and
requirement, it works with a strategy and it also pretty hard to implement with discipline for long

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as it requires much efforts than usual. But in today’s world people and the companies has
released its importance.

Prospect relationship marketing, it is easier to perform than CRM and much less expensive.
The reasons for the slower development of PRM are apparent enough. A customer is a known
quantity. A customer has immediate proven worth. The cost of prospecting or replacement is
known and understood.

the desire to buy, till now as we have learned that the key of the permission marketing is
persuading customers or buyers to buy their product or service by any kind of means or strategy
but the larger business which deals with lesser number of customers also deals with a couple of
more problems and one of them is taking risk and such risk are of three types- performance risk
financial risk, social risk and we all try to avoid them either consciously or unconsciously .
performance risk is connected to the prospect’s expectations of the product/service. Financial
risk is based on the fear of losing or wasting money. It applies on the greater type of deals like of
insurance policy, or buying a home in wrong locality. Social risk is the least understood one, but
is the most profound one focuses on providing risks with the help of the relation we have with
our people.

The permissive marketing poisons the well, the permission marketer builds customers. The
permissive marketing takes the advantage of the aberration of a costless e-mail medium, the
permission marketer uses the unique qualities of the medium to create meaning.

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27. EXPLORING FACTORS THAT INFLUENCE


STUDENTS BEHAVIOUR IN INFORMATION SECURITY

Use of computers and the internet is an integral part of college students daily lives as they
regularly use of their computers and the internet to access email, complete coursework, retrieve
grades, register for courses, purchase books and supplies, pay tuition and complete various other
transaction that lead to leaving sensitive information on their computers and the internet.

Protection motivation theory, PMT was first introduced by roger, to explain the effects of how
fear appeals to individuals on health-related decision such as dieting, quitting smoking and
drinking, using condoms and other concerns imposing health risks. PMT has since been widely
extended to other fields of research and it is powerful explanatory theory to predict individual
intentions to take protective actions in other situations when threat is perceived.

Although PMT was originally developed to explain the effects of fear appeals on health attitude
and behaviour such as the use of condom to prevent HIV infections, the theory has found broad
empirical support. PMT is a valuable model for predicting students’ attitude towards information
security and that their motivation is influenced by education in security awareness and
understanding severity of such issues.

SUBJECT NORM, in the context of this study, subjective norm is defined as a student’s belief
about the extent of approval from friends, peers, family for his or her behaviour in formation
security. SECURITY HABIT, behaviours related to health and safety such as exercising or using
the sea belt requires continuous action on a routine basis to become a habit.

In this research, we examined factors that motivate student’s information security behaviours. A
research model based on PMT including subject norms and habit factors was developed. Several
insightful results are summarized from the research model and are presented below. In particular,
response efficacy and self-efficacy have a strong impact on students’ intentions to practice
information security. These results imply that students will make more of an effort to apply
information security and thus experience high level of confidence in doing so when their efforts
are perceived as being effective and practicable. Conversely, response cost has a negative impact

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and perceived vulnerability has no significant impact on motivation to practice information


security.

It is also helpful to provide security techniques and resources that enables students to perform
security procedures easily and quickly. Although this study’s findings provide meaningful
implications, the study has some limitation. Secondly the survey was conducted to students with
similar majors: business administration and international trade. The student can be perceived as
same social group and similar background, leaving little room for dissimilar attitudes about
information security. To further validate the results of the study, the survey should be conducted
in more diverse student population using greater number of students.

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28. SMS ADVERTISING BUSINESS MODEL: TOWARDS


FINDING VITAL ELEMENTS OF ITS VALUE MODEL

Mobile advertising has gained a valuable response in the recent years. While the quest of
introducing high tech, based advertising is in effect, short message service (SMS) advertising is
being preferred by many companies. The increasing number of mobile subscribers forms the
base of SMS advertising.

There are many benefits of SMS advertising compared to other sources of advertising. It aims at
the target audience very accurately. Marketers can specify their target consumers and send SMS
to respective consumers only. Moreover, sending messages is very handy and easy to reach to
generations which is not technology updated. Surveys and campaigns can be easily completed
through quick response by way of SMS. It can get high level of attention as people tend to read
at least some part of SMS before deleting them.

There are majorly four actors of mobile advertising business namely advertiser, mobile
advertising agency, end user and mobile network operator. Every actor plays a very important
role and gets their own part of benefit. Advertisers derive their obvious revenue by taking
benefit of the increased purchases by the end users as a result of the mobile advertising strategy.
Mobile advertising agency earn revenue from the advertisers in exchange of identifying the
location of the target and contacting to the mobile network operator. The mobile network
operator comes into the role by sending SMS to the required consumers and earns revenues by
charging the mobile advertising agencies for the same. End users are the most important actors
and their response to the SMS decides the failure and success of the advertising model.

The elements of SMS advertising value model are categorized into six parts. First and the most
foremost is permission which is very effective in deciding the fate of advertising. End users have
the choice to opt- in and out- out of a particular SMS advertisement. The model must provide an
easy option for opting out of the ads. Secondly, the ads must be relevant to the end users’
interests. Also, the time and location must be appropriate and relevant. Thirdly, the SMS must
ensure that they are appealing to the end users in a way that attracts them towards the product or
the service being advertised. This may include an entertaining way like a funny quoting or a joke
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contained inside the SMS. It can be made more alluring by providing some direct money
incentive and providing informative content.

Fourthly, the advertisers must make sure that the SMS do not create disturbance and annoyance
among the consumers. The SMS must be sent at a limited frequency and at non- disturbing times
unlike the office hours or on weekends. Next comes the simplicity which means that the content
of the SMS must be short and easy to understand. Lastly, the SMS must, at all cost, ensure to
build trust and authorization among the users. They must not be misunderstood as spam
messages and provide privacy protection.

SMS advertising business is growing substantially, so there is a need for better understanding of
this business, moreover it is essential for active companies in this business to identify their
critical success factors. in response to these requirements the paper demonstrates a practical
scenario for SMS advertising business model, in which main advertising business actors their
role, their potential benefits, and their revenue source are described.

The difference between customers evaluation of all benefits and costs of an offering is defined as
customer perceived value thus marketers can increase the value of an offering by increasing
benefits and reducing cost which are perceived by customers.

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29. CUSTOMERS INTENTION TO ENGAGE IN


PERMISSION BASED MOBILE MARKETING
COMMUNICATIONS

According to this study, the role of Mobile marketing communication has been conceived,
towards customers, through the understanding of perceived use, perceived trust, attitude and also
how it is affected by behavioral control and group influence. With the idea of targeting specific
customer, there has been a shift from Mass Marketing. With a better digital marketing channels
like E-mail, SMS, companies are effective in researching their target audiences. Example of such
brands are Pepsi, Nike, Puma, MTV and many more global brands. Though the importance of
digital marketing is widely recognized and emerging, there is still a lack of understanding of
customers’ intentions to use mobile services. The major determinant in the use of an Information
system is the attitude and intention towards technology, acting as a central part of Technology
Acceptance Model (TAM) (Davis, Lee, Fiore and Kim). In literature, it is also suggested to
investigate on the basis of Internet experiences. The more the experience, the more positive
attitude towards mobile communications. The literature shows a conceptual framework with
various theories and its implications. The discussions and theories for antecedents of attitude has
been outlined in the model. This includes hypothesized model and the implications like:
Perceived ease of use of mobile communication is positively associated with the perceived
usefulness of mobile communication. Perceived behavioral control of permission-based
messaging has a positive influence on intentions to receive messages. Trust in the marketer is
positively related to attitude towards advertising and the intention to receive messages.
Reference group influence is positively related to receive messages and the intention to visit,
positive attitude towards advertising and intentions to receive associated with intention to visit. A
survey was conducted by experts of advertising, marketing practitioners and academics and data
was collected for market research and communication. The comparison was made of the new and
old data highlighting the significance of the model.

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30. FACTORS THAT INFLUENCE STUDENTS


BEHAVIOUR IN INFORMATION SECURITY

Mobile Marketing is a real concept that covers a wide variety of activities including mobile
advertising , mobile applications , offline marketing on TV , video and print and online
marketing on websites , and via-email.

According to the study of Leppamini Sinisalo and Karjoluto (2006) on the mobile marketing
research , it was analyzed that definition in literature represent 4 major approaches of marketing
through mobile channels. They also found marketing through mobile channel has implicity and
explicity been conceptualized as :

1. Mobile Marketing

2. Mobile Advertising

3. Wireless Marketing

4. Wireless Advertising

Mobile Advertising

refers to transmission of advertising via mobile devices such as mobile phone. Wrong and tang
defined it as "advertisment delivered to mobile phone users in the form of a short message
system (SMS) multimedia message system (MMS).

There are 2 models of mobile marketing: Push and Pull models. In Pull models market sends out
the information related to campaign that consumers have already demanded.

However, in Push model, the marketing person takes the initiative and texts the campaign
messages directly to the consumers. In letter type of campaign SMS are heavily used.

Permisiom Mobile Marketing

is about building an ongoing relationship of increasing depth with customers by obtaining


customers consent to receive information from company. It incourages customers consent to
receive information from company. It encourages consumers to participate in long term,
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interactive campaign in which they are rewarded in some way for paying attention to increasing
relevant message.

According to Godin, permission marketing is anticipated, personal and relevant. On the other
hand, Heinonen and Strandvik (2007) argue that permission is not necessarily a guarantee that
the consumers pays attention to; its only a door opener and gives indication of the consumers
potential interest areas.

According to Barnes and Scornavacca (2004), wireless users demand not the summary of
available mass information but personalised style of it. As a summary, permission has a dynamic
boundary produced by the combination of one personal references i.e. personalization, time,
location and info.

Additionally, Larroll et.al , Haghirian et.al , Bamba Barnes, Kautonen et.al and Wang and Tang
investigated major factors contributing to consumers attitude towards mobile advertising and
giving prior permission.

AD Avoidance

the conscious effort of consumers to stay away from the stimulus of ads.

It appears that consumers avoid advertising for 4 main reason :

1. they don't intend to get information about cheap products.

2. consumers may value media where ads are issued so much so that they consider the ads
distributing and diverging.

3. consumers may be loyal to rival brand of advertising product and don't want to be subjected to
adverse information.

4. consumers find ads boring and irritating.

There are different avoidance strategies :

According to Abernethy (1991) there are 2 named as:

1. physical avoidance strategy to change the channel when commercial starts.

2. mechanical avoidance i.e. to change the channel when commercial starts.


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According to Speck and Elliott (1997) there are 3 strategies :

1. congenitive avoidance strategy - the attempt to ignore ads.

2. behavioral avoidance strategy - people found to be easily flip past ads.

3. mechanical avoidance strategy - when people by to eliminate ads.

According to Vakratsas and Ambler (1993) consumers react to advertising stimulus in 3 different
ways :

1. conegitive

2.affective

3. behavioral

Research Methodology

the main aim of the research is to identify relationship between permission and SMS ad
avoidance.

Relating to research question , a face-to-face survey method was chosen to collect the data.

The questions have 2 parts:

1- it contains 3 items that measure permission . A five-point Likert type scale ranging from 1
( strongly disagree) to 5 ( strongly agree) was used.

2- it has items to measure SMS ad avoidance.

According to Cho and Cheon (2004) there are 3 ad avoidance methods for internet ads:

congnitive avoidance , affective avoidance and behavioral avoidance. 2 items were developed to
measure congitive avoidance, 2 for affective ad avoidance and 4 for behavioral avoidance.

Cronbach Alpha coefficient were computed for the reliability test. According to the Alpha
coefficients, reliability for cognitive SMS ad avoidance (.75) , affective SMS ad avoidance (.82)
and behavioral SMS avoidance (.72) with recommended value of .70 . However, the value of
permission is not acceptable (.45).

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Recommended optimal range for inter-item correlation is .2 to .4 .

Findings

of the 441 responds , 55.1% were female and 44.9% were male.

The Pearson correlation efficient for the relationship of permission and SMS ad avoidance types.
There is negative relationship for both of them. All the relationships are significant at p< .01 .

Conclusion

The study has demonstrated effects of permission on SMS and avoidance. According to result of
the analysis, permission variable has been determined as significant variable of SMS ad
avoidance. There is significant negative relationship between permission and ad avoidance. The
result presenting the low value of variance in the regression analysis offer strong support that the
permission variable is not the only significant variable in explaining the behaviour of SMS ad
avoidance.

According to the result , all the variance values found in the three ad avoidance variables are
equally low. This can have a possible interpretation that although there are different ad
avoidance techniques for SMS ads ; there my be only one type of avoidance SMS ads.

This research has focused primarily on the variables affecting attitude towards SMS ads and
opts in issues in SMS advertising. To conduct a successful implication of SMS ad campaign , it
is necessary to explore both the positive and negative factors either for the consumers or the
market itself.

In addition , instruments were adopted from a previous research. In this regard despite pre-
testing , there may have been some linguistic and cultural influences in the translation from
English to Turkish.

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