Computers in Human Behavior 33 (2014) 256–269

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Computers in Human Behavior

journal homepage: www.elsevier.com/locate/comphumbeh

Why smartphone advertising attracts customers: A model of Web

advertising, flow, and personalization
Yoo Jung Kim a, JinYoung Han b,⇑
a
Hoseo University, Department of Digital Business, 268 Anseo-dong, Cheonan, Chungnam 330-713, South Korea
b
Chung-Ang University, School of Computer Science & Engineering, 84 Heukseok-Ro, Dongjak-gu, Seoul 156-756, South Korea

a r t i c l e i n f o a b s t r a c t

Article history: Thirty-five percent of US adults own a smartphone and more than seventy-three percent of the popula-
Available online 14 February 2014 tion in South Korea owns a smartphone in the first quarter of 2013. The number of people that use a
smartphone has radically increased. Smartphone users always maintain connectivity, and frequent and
Keywords: swift communication with others. As the mobile advertising market is drastically expanded, advertisers
Advertising effectiveness and companies should be more attentive to effective smartphone advertising. This study suggests a com-
Advertising value prehensive advertising model that combines a Web advertising model, personalization and flow theory in
Flow
understanding the antecedents of purchase intention and influence processes in the context of smart-
Personalization
Smartphone advertising
phone advertisements. The results show that personalization has a positive association with informative-
ness, credibility, and entertainment of the advertising message while having a negative association with
irritation. Purchase intention is increased by advertising value and flow experience. Advertising value has
a positive relationship with credibility, entertainment, and incentives. Flow experience is positively asso-
ciated with credibility, entertainment, incentives. Irritation negatively affects flow experience but adver-
tising value. This study theoretically contributes to the application of the smartphone advertising model
and practically contributes influential factors for effective advertising to marketers and advertisers.
Ó 2014 Elsevier Ltd. All rights reserved.

1. Introduction communication provider in Korea. South Korea’s mobile advertising

Global mobile advertising revenue was $9.8 billion in 2012.
According to Gartner (2013), global mobile advertising revenue is
expected to rise to $11.4 billion in 2013 and $24.6 billion in 2016
(Mobithinking., 2013). For example, mobile advertising revenue
for Facebook accounted for approximately 49% of $1.8 billion in
advertisement revenue in the third quarter of 2013 (the Quardian,
2013). These figures show that smartphone advertising can be an
extremely promising advertising market. A monthly report by the
Korea Communications Commission (KCC) illustrates that more
than 50% of the population in South Korea own a smartphone
(KCC, 2012a). Google Korea reported that the smartphone penetra-
tion rate in Korea reached about 73% in the first quarter of 2013,
which is the highest growth rate among forty-three countries that
Google surveyed (The Korea Economic Daily, 2013). Such a high
smartphone penetration rate and 3.5G/4G technology enable users
to conveniently use mobile Internet services at anytime and any-
where without limitations to the type of handset and mobile
⇑ Corresponding author. Address: 526, 208 Building, 84 Heukseok-Ro, Dongjak-gu,
Seoul 156-756, South Korea. Tel.: +82 2 820 5935; fax: +82 2 823 5301.
E-mail addresses: faith@hoseo.edu (Y.J. Kim), win1999@naver.com (J. Han).
market, which is composed of SMS, mobile Web, and mobile appli-
cation advertising, increased 184% in one-year to $198.32 million in
2012, and is expected to rise 93% to $416 million in 2013 (KCC,
2012b). In addition, 60% or more smartphone users have encoun-
tered smartphone advertising while 69.5% have viewed smartphone
advertisements, and 62.3% have purchased advertised products or
services (KISA, 2012). Such phenomena demonstrate that customers
are increasingly dependent on mobile devices such as a smartphone
and tablet PC to search information on products or services to pur-
chase. Smartphone advertisement plays an increasing role in the
decision-making process in helping customer purchases.
In contrast, some customers want to use the functionality of
advertising blocking and have the intention to pay for the blocking
advertisements (Hill, 2013). Consumers want to avoid invasive
advertisement and do not want to be interrupted. Therefore, a key
challenge is to identify the underlying process for how smartphone
advertising influences customer’s intention to purchase products.
An adaption or extension of the Ducoffe’s Web advertising mod-
el (1995) could provide an understanding of the underlying process
of how smartphone advertisements influence customer purchasing
behavior. Ducoffe (1995) stated that advertising value is a measure
of advertising effectiveness. He emphasized the role of advertising

http://dx.doi.org/10.1016/j.chb.2014.01.015
0747-5632/Ó 2014 Elsevier Ltd. All rights reserved.
 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269
value in Web advertising context and examined the determinants
of advertising value. In prior studies, advertising value is conceived
as a predictor for intention and attitude related to advertising
(Beatty, Kahle, Homer, & Shekar, 1985; Liu, Sinkovics, Pezderka, &
Haghirian, 2012). Because of the sophisticated mobile Web fea-
tures and popularity of smartphones and empowered customers,
advertising value could be a major predictor of purchase intention
in the context of smartphone advertisements.
Flow could also be included as a crucial predictor of purchase
intention in the advertising model (Hausman & Siekpe, 2009;
Hsu & Lu, 2004). Flow refers to a fully immersed state that people
experience when they act with total involvement (Csikszentmihal-
yi & LeFevre, 1989). Flow is also the central process in consumer
Web browsing or navigation (Huang, 2006; Noort, Voorveld, &
Reijmersdal, 2012), and is one of the key factors for leading cus-
tomers to purchase intention in the context of online services
(Hausman & Siekpe, 2009; Korzaan, 2003; Luna, Peracchio, & de
Juan, 2003; Richard & Chandra, 2005).
Perceived control, curiosity, intrinsic interest, interactivity, and
focused attention are the main characteristics of flow (Hoffman,
Novak, & Peralta, 1999; Hsu & Lu, 2004; Koufaris, 2002). Smartphone
and advanced 4G technology have caused customers to experience
push-type advertising that push messages containing advertise-
ments without customer’s permission (i.e., SMS, MMS), and the high
quality of pull-type advertising that allows customers to browse
contents and select mobile advertisements on their own (i.e., key-
word search, display, mobile game, and rich media advertising)
(Liu et al., 2012; Xu, Liao, & Li, 2008; Yang, Kim, & Yoon, 2013). In par-
ticular, rich media advertising are real time interactive multimedia
advertisement in which advertising image changes or video is
played when customers put their mouse on or click the advertising
message. Sophisticated mobile advertising features create controls,
curiosity, focus, and interest by the customers. This means that cus-
tomers can have flow experience with smartphone advertisements
while browsing or viewing mobile Web or application advertise-
ments on a smartphone. Thus, the effect of flow on purchase inten-
tion is more crucial in the context of smartphone advertisements. To
the best of our knowledge, no studies have examined the relation-
ship between flow experience, advertising value, and purchase
intention nor have identified predictors for these relationships.
It is important to identify the antecedents of advertising value
and flow experience more rigorously, and to integrate these ante-
cedents into a comprehensive model that can provide a clear
understanding of how those factors influence advertising value,
flow experience, and purchase intention in a systematic way. How-
ever, most studies on mobile advertising have examined cognitive,
affective, and economic factors as predictors of attitude toward
mobile advertising or intention to read or click (Blanco, Blasco, &
Azorin, 2010; Chowdhury, Parvin, Weitenberner, & Becker, 2006;
Liu et al., 2012; Standing, Benson, & Karjaluoto, 2005; Tsang, Ho,
& Liang, 2004; Wang & Sun, 2010; Xu et al., 2008; Yang et al.,
2013; Ünal, Erci, & Keser, 2011). Investigation into the effects of
cognitive, affective, and economic factors on advertising value,
flow experience, and purchase intention have received minor
attention. Furthermore, it would be valuable to incorporate the
concept of personalization into a comprehensive model for smart-
phone advertising. The integrated model could explain how cogni-
tive and affective qualities of smartphone advertising messages
can be increased by personalization. Even though prior research
suggested that personalized advertising has positively affected
customer response (Milne & Gordon, 1993; Robins, 2003; Tsang
et al., 2004), few studies explained a process for how personalized
advertisement messages influence advertising value and purchase
intention (e.g., Xu, 2006). Applications of personalization can be
advanced greatly in conjunction with the advent of mobile broad-
band communication systems and smartphones.
257
Personalized smartphone advertising can enhance informative-
ness, credibility, and pleasure. However, personalized smartphone
advertising can reduce irritation because advertising messages are
well customized to meet customer’s preference and interest using
such a state-of-the-art technology and mobile infrastructure. Thus,
a process for how personalized advertisement messages affect cus-
tomer valuation and intention needs to be investigated by combin-
ing personalization with cognitive and affective factors.
The purpose of this study is to provide and examine a compre-
hensive and integrated model for smartphone advertisements by
overcoming the limitations of previous studies on mobile advertis-
ing. Specific research questions for this study are:
1. Do advertising value and flow experience play an important role
in forming purchase intention in smartphone advertisements?
2. What are the cognitive, affective, and economic factors that
influence advertising value and flow experience in smartphone
advertisements?
3. Does personalization make a pivotal contribution for increasing
cognitive and affective qualities, advertising value, and flow
experience?
This study provides a theoretical understanding and extension
of the advertising model, and sheds light on how cognitive, affec-
tive, and economic factors that contribute to customer’s intention
to purchase product or service in the smartphone advertisements
context.
2. Theoretical background and hypothesis development
2.1. Theoretical background
2.1.1. Advertising model
The represented theories which are employed for the advertis-
ing model, are the Theory of Reasoned Action (Fishbein & Ajzen,
1995; Lee, Tsai, & Jih, 2006; Lutz, MacKenzie, & Belch, 1983; Tsang
et al., 2004), Technology Acceptance Model (Yang, 2007; Zhang &
Mao, 2008), and Web advertising model (Choi & Rifon, 2002; Duc-
offe, 1995; Wang & Sun, 2010). Among these advertising models,
only Ducoffe’s Web advertising model focused on the advertising
value rather than attitude toward advertisement. Ducoffe’s model
is derived from the Uses and Gratifications Theory (UGT). UGT
was developed in a study on the effectiveness of the radio medium
in the 1940s (Liu et al., 2012). Following UGT, Ducoffe highlighted
advertising value, which refers to ‘‘a subjective evaluation of
the relative worth or utility of advertising to consumers’’ (Ducoffe,
1995, p. 1). Studies on advertising value have showed how
advertisements work and what factors determine the worth of
advertising from a customer perspective (Ducoffe, 1996). In
Ducoffe’s model (1995), cognitive and affective factors as predic-
tors of advertising value are suggested. The cognitive factor
includes the perception of informativeness and credibility on
advertisement.
Informativeness refers to the extent to which the advertising
message includes informational contents (Aaker & Norris, 1982).
Advertising credibility refers to ‘‘consumers’ perception of the
truthfulness and believability of advertising in general’’ (MacKen-
zie & Lutz, 1989, p. 51). The affective factor includes perceptions
of entertainment and irritation (Ducoffe, 1996). Entertainment
denotes the ability to fulfill consumers’ needs for diversion,
esthetic enjoyment or emotional release (McQuail, 2005). Irritation
in a commercial is one that is provoking, causing displeasure and
momentary impatience (Aaker & Bruzzone, 1985). Irritation can
be defined as the extent to which the advertising message is messy
and irritating to consumers.
258 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269
Ducoffe’s advertising model has been applied in various con-
texts such as the Web (Choi & Rifon, 2002; Ducoffe, 1995; Wang
& Sun, 2010) and feature phone advertisements (Blanco et al.,
2010; Chowdhury, Parvin, Weitenberner, & Becker, 2010; Liu
et al., 2012; Standing et al., 2005; Tsang et al., 2004; Xu, 2006;
Yang, 2007; Ünal et al., 2011). Despite prior research results, stud-
ies did not adopt the advertising model in the context of smart-
phone advertisements. The importance of smartphone
advertisements is increasing due to the pervasiveness and conve-
nience of smartphones. Tak and Hwang (2005) summarized the
differences among advertising media (Table 1). While mobile
advertising through a feature phone is limited in the amount of
delivery message, smartphones can take the feature of Web and
mobile advertisements. Smartphone advertisements can extend
the effect of feature phone advertisement on advertising value,
and subsequently purchase intention.
In addition to cognitive and affective factors from the Ducoffe
advertising model, we include economic factors in our research
model to underline online shopping and marketing. As advertising
studies show, incentives are major predictors of customers’ re-
sponses (Varnali, Yilmaz, & Toker, 2012). Incentives entail mone-
tary benefits such as discounts, coupons, and gifts, and non-
monetary benefits involving intrinsic value such as level-ups, sta-
tus awards, and right for priority service (Varnali et al., 2012). In
this study we focus on monetary benefits and examine the ante-
cedents of advertising value, which includes informativeness, cred-
ibility, entertainment, irritation, and incentives in the smartphone
environment.
2.1.2. Personalization of the advertisement
Customers often express annoyance at an intrusive advertising
message (Rettie, Robinson, & Jenner, 2003; Sandage & Leckenby,
1980). Some studies have generally found a negative public atti-
tude toward advertising (Alwitt & Prabhaker, 1994; Zanot, 1984).
However, a more recent study shows mixed results that Internet
advertising generates positive or negative customer attitude (Liu
et al., 2012; Schlosser, Shavitt, & Kanfer, 1999; Tsang et al.,
2004). This change of customer attitude can be generated by con-
tents rather than media. For example, Tsang et al. (2004) found
that customers have a positive attitude toward an authorized mes-
sage in mobile advertising. Customers are receptive to advertising
that is personalized and relevant to their lifestyle (DeZoysa, 2002).
It is necessary for marketing techniques to follow consumer pro-
files, consumption patterns, and customer needs (Rao & Minakakis,
2003). Customers prefer customized advertising messages based
on their interests and relevance (Milne & Gordon, 1993; Robins,
2003). Additionally, personalized advertising that targets certain
customers according to preferences and shopping habits can cause
responses and results that reach potential customers (Xu, 2006).
Table 1
Comparisons of advertisement characteristics.
Advertisement Traditional
Medium Print, outdoor advertising, radio, television
Initiation Push
Audience Public
Customer adhesion No
Direction One direction
Repeatability No
Limitation Time and distance
Timeliness Low
Amount of message Limited
Measuring of immediate effect Impossible
Mobility No
Connection online and offline No
Adapted from Tak and Hwang (2005).
The advent of the smartphone enables customer profiling and
tracking customer activities and location. Hence, more advanced
techniques of personalization can be adopted in smartphone
advertisements. We conceive personalized smartphone advertise-
ments as advertising messages on the smartphone, and based on
customer demographics, preference, context, and content (Xu
et al., 2008).
Even though previous studies have emphasized the important
role of cognitive and affective factors in forming customer attitude
and intention, studies have not explained the antecedents of these
factors. Xu (2006) and Xu et al. (2008) combined and examined
Ducoffe’s model and personalization. Yet, these two studies over-
look the relationships between Ducoffe’s main constructs and per-
sonalization. Depending on the advent of the smartphone, this
study examines the relationship between personalization, and
the cognitive and affective factors in the advertising model.
2.1.3. Flow theory
Flow theory is introduced by Csikszentmihalyi and Lefevre
(1989). Flow refers to the fully immersed state that people experi-
ence when they act with total involvement. Individuals become ab-
sorbed in their activity in the flow state and the focus is narrowed
to the activity itself. Individuals feel in control of their environ-
ment (Csikszentmihalyi & LeFevre, 1989). Flow was characterized
by an integration of constructs such as a clear goal, feedback,
challenges matching skills, concentrations, focus, control, loss of
self-consciousness, transformation of time, and the autotelic nat-
ure of an activity (Csikszentmihalyi & LeFevre, 1989). Afterwards,
studies measured flow as unidimensional or higher-order con-
structs such as curiosity, enjoyment, discovery, interest, attention,
and engagement (Hoffman & Novak, 2009). Even though the mea-
surement of flow still remains controversial (Hoffman & Novak,
2009), this study employs the scales of enjoyment, concentration,
transformation of time and engagement to measure the concept
of flow.
Flow theory has been applied in the context of information
technology (IT). For example, studies investigated the World Wide
Web navigating behavior or interaction with electronic mail and
voice mail technologies. These studies are useful in understanding
customer behavior (Novak & Kohler, 1998; Webster & Trevino,
1995). In a study on the relationship between the complexity of
a Web site and flow, researchers found mediators such as a clear
goal, feedback mechanism, and a balance of challenge and skill as
important factors (Guo & Poole, 2009).
The issue of flow has been employed to explain the use of soft-
ware and the internet (Agarwal & Karahanna, 2000; Drengner,
Gaus, & Jahn, 2008; Rettie, 2001), and online games (Choi & Kim,
2004; Hsu & Lu, 2004; Li, 2008). Previous studies also provided
empirical support for predictions that flow influences online
Web Mobile (feature phone)
Internet Mobile device
Pull
Targeted group or individual
High Very high
Bi-direction Bi-direction
Yes
No limitation
High Very high
No limited Limited
Possible
Limited Yes
Limited Yes
 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269
purchase intentions (Luna, Peracchio, & de Juan, 2002; Luna et al.,
2003), intention to use the Web (Agarwal & Karahanna, 2000), revi-
sit the Web site (Koufaris, 2002; Luna et al., 2002, 2003), and inten-
tions to play online games (Hsu & Lu, 2004). In marketing research,
many prior studies focused on the influence of flow on intention to
purchase. However, to the best of our knowledge, no prior studies
have examined the relationship between the factors of smartphone
advertisement and user flow in the advertising context.
In this study, we build a research model that combines Duc-
offe’s Web advertising model, personalization, and flow theory.
2.2. Hypothesis development
The research model is based on the premise that perceived
informativeness, credibility, and incentive of advertisements influ-
ence the way customers evaluate advertisement (Fig. 1). The end
result is flow experience. The model also highlights personalized
advertising as an antecedent of these concepts. Purchase intention
is modeled as the consequence of advertising value and flow
experience. These factors are discussed in the following sections.
2.2.1. Purchase intention
The intention to purchase increases when customers show a
favorable attitude to products or services (Gorn, 1982; Ko, Cho, &
Roberts, 2005; Li & Zhang, 2002; MacKenzie, Lutz, & Belch, 1986).
Advertising value is the perceived judgment of customers on the
advertisement (Ducoffe, 1995). As customers positively evaluate
the advertising value, their attitude to products or services would
become positive. While previous studies supported the positive
relationship between advertising attitude and purchase intention
(Lee et al., 2006; Tsang et al., 2004; Yang, 2007), few study exam-
ined the relationship between perceived advertising value and pur-
chase intention. This study focuses on advertising value as a
predictor of purchase intention of customers in smartphone adver-
tisements. Therefore, we propose the following hypothesis:
H1. Perceived advertising value is positively associated with
purchase intention.
The consequences of the flow experience for customers are
intention to use of the Web (Agarwal & Karahanna, 2000; Rettie,
2001), revisit internet (Koufaris, 2002; Luna et al., 2002, 2003),
and intentions to play online game (Hsu & Lu, 2004). Flow experi-
H9-5
Informativeness
H9-1
Credibility
H9-2
Personalization
H9-3
Entertainment
H9-4
Irritation
Incentives
H9-6
259
ence of customers positively influence online purchase intentions
(Luna et al., 2002, 2003). Thus, flow experience in smartphone
advertisements can be crucial on customer decision whether or
not they quit the participatory behavior in smartphone advertise-
ments, and whether or not they purchase the products or services
advertised. Therefore, we propose the following hypothesis:
H2. Flow experience is positively associated with purchase
intention.
Guo and Poole (2009) summarized the antecedents of flow from
more than twenty studies. Most of the studies identified goal clar-
ity as the antecedent of flow state (Guo & Poole, 2009). They recog-
nized other influential factors such as value-added search
(Koufaris, 2002), need for cognition (Li & Browne, 2006), and
importance (Novak, Hoffman, & Duhachek, 2003). Once customers
evaluate received advertising messages as having worth, the mes-
sages may be matched to their needs or include value-added infor-
mation for shopping. Accordingly, customers focus entirely on the
messages. Irrelevant thoughts are screened out (Hoffman & Novak,
1996). Thus, there is greater perceived advertising value corre-
spondence to increased flow experience. Therefore, we propose
the following hypothesis:
H3. Perceived advertising value is positively associated with flow
experience.
2.2.2. Cognitive factors
One advertising goal is to inform customers about new products
or services (Kotler & Keller, 2006), or to provide customer aware-
ness for the differences of products (Soberman, 2004). The primary
use of advertising for customers is to acquire product information.
A marketer should prioritize the informativeness of advertising
(Petrovici & Marinov, 2007). Informativeness of advertisement is
an important predictor of advertisement value and is crucial for
the effectiveness of Web advertising (Ducoffe, 1996; Wang &
Sun, 2010). The effect of informativeness on advertising may be
indifferent in the context of smartphones. The informativeness of
smartphone advertisement messages positively influences per-
ceived advertising value. Therefore, we propose the following
hypothesis:
H4-1 Advertising value
H4-2
H5-1
H5-2 H1
Purchase
intention
H6-1
H2
H6-2
H3
H7-1
H7-2
Flow
H8-1 experience
H8-2
Fig. 1. Research model.
260 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269
H4-1. Perceived informativeness of smartphone advertisements is
positively associated with perceived advertising value.
In addition to the effect on advertising value, informativeness
will affect customer attention. Informativeness entails what is said
(Ducoffe, 1995) and it can provide value-added news or can
connect with the cognition of customer needs. When news or
messages include customer needs, the customer enjoys under-
standing details. The customer concentrates on the messages and
does not miss an opportunity regarding product information. The
customer is more focused and irrelevant thoughts are filtered-out
(Hoffman & Novak, 1996). Previous studies illustrate that these
factors can be preconditions for flow experience (Koufaris, 2002;
Li & Browne, 2006). Informativeness positively influences customer
flow experience. Therefore, we propose the following hypothesis:
H4-2. Perceived informativeness of smartphone advertisements is
positively associated with flow experience.
Credibility of an advertisement refers to the perceived truth-
fulness and believability of advertising (MacKenzie & Lutz,
1989). Conventional wisdom says that credibility is necessary
for effective advertisement. Advertising credibility is often influ-
enced by corporate credibility, or the extent to which customers
believe that a firm can design and deliver products and services
that satisfy customer needs (Choi & Rifon, 2002). Advertising
credibility has been found to have a direct positive effect on the
evaluation of customers (Choi, Hwang, & McMillan, 2008; Choi &
Rifon, 2002; Tsang et al., 2004). Based on prior studies in the
mobile and Web advertising context, we posit that the credibility
of smartphone advertisements has a positive effect on perceived
advertising value. Therefore, we propose the following hypothesis:
H5-1. Perceived credibility of smartphone advertisements is pos-
itively associated with perceived advertising value.
Micro media and mass media have advanced and customers are
faced with an excess of incoming information. Individuals are
forced to process an indigestible amount of data because of infor-
mation overload. As a result, once customers believe that the
advertising message is believable and trustworthy, they pay more
attention to the message. For example, when the advertising
message is sent from familiar brands, customers will read it thor-
oughly since they are interested in the brands. The customer is
more likely to concentrate on the contents of the advertisement
and investigate the depth. During the process of filtering data,
the customer perceives the reliability of the message as important.
Thus, customers are more likely to experience flow state with a
convincing message. Therefore, we propose the following
hypothesis:
H5-2. Perceived credibility of smartphone advertisements is pos-
itively associated with flow experience.
2.2.3. Affective factors
A high degree of enjoyment during interaction with computer-
based media leads to positive affect and mood of the customer
(Hoffman & Novak, 1996). The feeling of enjoyment plays the
greatest role in accounting for overall attitude toward advertise-
ments (Liu et al., 2012; Xu, Oh, & Teo, 2009). Ducoffe (1995)
showed that entertainment of advertising information is positively
related to advertising value in Web advertisement. Additionally,
prior studies showed that entertainment increases advertising
value in mobile advertisement (Haghirian, Madlberger, & Tanusk-
ova, 2005; Liu et al., 2012). Entertainment services may also in-
crease value for the customer in smartphone advertisements. An
entertaining advertising message can affect recipient perceptions
for the value of a smartphone advertisement. Therefore, we pro-
pose the following hypothesis:
H6-1. Perceived entertainment of smartphone advertisements is
positively associated with perceived advertising value.
Enjoyable advertisement can catch the attention of a recipient
(Ducoffe, 1995; Haghirian et al., 2005; Liu et al., 2012). Since the
entertaining advertisement can divert customer’s interests, time
passes by quickly. During interaction with advertising, customers
are focused and unrelated thoughts may be removed (Hoffman &
Novak, 1996). Entertainment positively influences customer flow
experience. Therefore, we propose the following hypothesis:
H6-2. Perceived entertainment of smartphone advertisements is
positively associated with flow experience.
The Merriam–Webster Dictionary provides that an irritating
commercial is an advertisement that provokes and causes displea-
sure and monetary impatience of customers. Irritation in an adver-
tisement decreases advertisement effectiveness (Aaker &
Bruzzone, 1985; Ducoffe, 1995; Liu et al., 2012). When advertising
employs annoying techniques and are overly manipulative, cus-
tomers are unlikely to perceive the advertisement as a favorable
influence (Ducoffe, 1995). The interactivity of an Internet adver-
tisement may be distracting and may provide an overwhelming
amount of information (Stewart & Pavlou, 2002). The interactivity
may be perceived as a threat for customer privacy (Stewart &
Pavlou, 2002). As mentioned, a smartphone advertisement includes
the characteristics of the Web and mobile. Therefore, the negative
effect of irritation on advertising value in Internet and mobile com-
mercials could be shown in the smartphone advertisements context.
Therefore, we propose the following hypothesis:
H7-1. Perceived irritation of smartphone advertisements is nega-
tively associated with perceived advertising value.
Irritating advertisements provoke annoyance and impatience of
customers (Ducoffe, 1995). An enormous amount of information
and interactivity of an advertisement may distract audience con-
centration (Stewart & Pavlou, 2002). For example, an extended ver-
sion of the Chrome Web browser added the option ‘‘Skip ads on
YouTube’’ in order to skip the advertisement (Cozma, 2012). This
indicates that users may not want irritating advertisements. The
option leaves that page and continues to the next advertisement
for the user to view. Irritating messages can disturb and obstruct
the customers’ concentration Therefore, we propose the following
hypothesis:
H7-2. Perceived irritation of smartphone advertisements is nega-
tively associated with flow experience.
2.2.4. Economic factors
Advertisements with an incentive provide specific financial
rewards to individuals who agree to receive an advertisement
(Tsang et al., 2004). Individuals are interested in gaining monetary
benefits from marketing programs (Milne & Gordon, 1993).
Accordingly, marketers have offered raffles or coupons to motivate
customers. A coupon can be exchanged for a financial discount or
repayment when purchasing a product or service. Customers per-
ceive value for an advertisement with incentives. Therefore, based
on prior studies, we propose the following hypothesis:
 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269
H8-1. Perceived incentives of smartphone advertisements are
positively associated with perceived advertising value.
When advertising messages include customer needs, the cus-
tomer concentrates on the messages (Hoffman & Novak, 1996)
and does not miss an opportunity regarding benefits of the mes-
sage. Customers are interested in tangible benefits and give more
attention to an advertising message for financial advantage.
Previous studies illustrate a need for cognition or usefulness as
antecedents of flow experience (Richard & Chandra, 2005;
Sanchez-Franco, 2006). For example, when customers see free cou-
pons or discounted prices in the message through their smart-
phone, they search ways on how to obtain these incentives. As a
result, the customer focus is on the incentives and they intrinsi-
cally enjoy the thought of a free coupon. We suggest that increas-
ing incentives for receiving smartphone advertisements can affect
customer flow experience. Therefore, we propose the following
hypothesis:
H8-2. Perceived incentives of smartphone advertisements are
positively associated with flow experience.
2.2.5. Personalization
Marketers continually search for innovative ways to communi-
cate with customers. Mobile marketing has been found as more
beneficial with less expenditure than traditional advertisements
(Jelassi & Enders, 2004). This result depends on the characteristics
of the mobile device, which is a very personal device that allows an
individual to virtually access anytime and anywhere. Hence, the
form and contents of advertisements should be more personalized
(Tsang et al., 2004). In the case of mobile services, customers
expect the content to be tailored to their interests (Robins, 2003).
When customers perceive that an advertising message is relevant
for interpersonal communications, they are more likely to think
the received contents will include useful information (Milne &
Gordon, 1993). The customer believes in the contents. Therefore,
we propose the following hypotheses:
H9-1. Personalization of smartphone advertisements is posi-
tively associated with perceived informativeness of smartphone
advertisements.
H9-2. Personalization of smartphone advertisements is positively
associated with perceived credibility of smartphone advertisements.
According to UGT theory, entertainment lies in the ability to ful-
fill audience needs for diversion, esthetic enjoyment, or emotional
release (McQuail, 2005). When customers receive a personalized
message, they would likely to feel the message reflects their own
needs. Accordingly, a message is perceived as pleasant and likable.
As a result, a degree of enjoyment will increase. Therefore, we pro-
pose the following hypothesis:
H9-3. Personalization of smartphone advertisements is positively
associated with perceived entertainment of smartphone
advertisements.
When advertising employs annoying techniques and an
overwhelming amount of information, customers feel irritated
(Ducoffe, 1995). However, if the provided information or messages
are related to recipient interests and needs, they are less likely to
perceive it as unwanted advertising. Personalized advertising mes-
261
sages will decrease the level of irritation of customers. Therefore,
we propose the following hypothesis:
H9-4. Personalization of smartphone advertisements is negatively
associated with perceived irritation of unwanted advertising.
Prior research in marketing found that customers are inter-
ested in advertising that is personalized and relevant to their con-
sumption pattern (DeZoysa, 2002; Milne & Gordon, 1993; Rao &
Minakakis, 2003; Robins, 2003). As shown in prior research, there
is positive effect of a personalized message in traditional market-
ing channels on advertising value. Personalized mobile advertising
also increases the perceived value of advertising. Furthermore, as a
smartphone ad delivers audience targeted messages at the right
place and time (Saadeghvaziri & Hosseini, 2011), personalization
of smartphone advertisements may increase perceived advertising
value. Therefore, we propose the following hypothesis:
H9-5. Personalization of smartphone advertisements is positively
associated with perceived advertising value.
In addition to the effect on advertising value, personalization
may affect customer flow experience because a personalized
message is paid more attention to than a public message (Alwitt
& Prabhaker, 1994; Milne & Gordon, 1993; Robins, 2003; Zanot,
1984). Customers are demanded to determine valuable messages
among an overflowing advertisement. When customers receive
customized contents, they are more likely to concentrate on the
contents. Customers also try not to overlook the information and
investigate details of the advertisement. The targeted message
may cause the focused attention and the interest or desire of the
audience, resulting in flow experience (Hoffman & Novak, 1996;
Skadberg & Kimmel, 2004). Personalization positively influences
the customer’s flow experience. Therefore, we propose the follow-
ing hypothesis:
H9-6. Personalization of smartphone advertisements is positively
associated with flow experience.
3. Research methodology
3.1. Scale development
Personalization is measured with four items modified from Xu
et al. (2008) and Ünal et al. (2011). The measurers for informative-
ness are adapted from Wang and Sun (2010), and Liu et al. (2012).
Credibility is measured with three items from Liu et al. (2012) and
Yang et al. (2013). Entertainment is measured using a scale of three
items revised from Wang and Sun (2010) and Yang et al. (2013).
The measurement items for Irritation are modified from Varnali
et al. (2012) and Yang et al. (2013), and incentives are assessed
by measurement items adapted from Ünal et al. (2011). Advertis-
ing value is measured with three items from Ducoffe (1995) and
Liu et al. (2012). Flow experience is measured with four items from
Novak et al. (2003) and Chang (2013). Finally, purchase intention
scale consists of three items and is adapted from Hong and Cho
(2011) and Wu, Yeh, and Hsiao (2011).
All the constructs were measured by multiple-item method.
Each item was measured on a five-point Likert scale from ‘‘strongly
disagree’’ to ‘‘strongly agree.’’ Backward translation (with the
material translated from English into Korean, and back into
English; versions compared; discrepancies resolved) was used to
262 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269

ensure consistency between the Korean and the original English
version of the instrument (Mullen, 1995; Singh, 1995). An initial
version of the survey instrument was subsequently refined
through extensive pretesting with several academics that have sig-
nificant expertise in the area of the study. Pilot tests were con-
ducted with a pilot sample (n = 34). Respondents of the pilot test
were asked to provide feedback and suggestions for improvement
when instructions or questions were not clear. Respondents also
answered all questions by following the instructions. Details of
the scales are provided in Appendix A.
3.2. Data collection
Content validity of the instrument is established by taking pro-
fessional advice from a panel of experts and face validity is evalu-
ated by pretesting. A survey is conducted to examine the
hypotheses in this study. Empirical data was mainly collected at
university campuses located in Seoul and the provinces of Chung-
nam and Kyunggi in South Korea. In addition, we use Google Docs
and email to collect survey data. Participants are those who have
had an experience viewing on smartphone advertisements. We
carefully scrutinized the responses for each question. 24 improper
responses such as having the same answers to all questions and
incomplete responses are excluded from our sample. In total, 256
valid responses are analyzed to assess reliability, validity, and
hypotheses testing.
70.7% of the respondents are female and 28.9% are male. 73% of
the respondents are in their twenties and 77.3% are university stu-
dents. 44.1% of the respondents are using the Internet on a smart-
phone for 1–2 years, and 45.7% are viewing advertisements on a
smartphone one to three times per day. 51.7% of the respondents
mainly view smartphone advertisements in public transportation
and 20.7% at home (see Table 2).
4. Analysis and results
4.1. Assessment of the measurement model
Confirmatory factor analysis is conducted by structural equa-
tion modeling (SEM) using AMOS rel. 16. Maximum likelihood esti-
mation tests if the measurement items for each construct loaded as
predicted on each individual construct. The measurement model fit
demonstrated acceptable values: 2.307 v2/df, 0.072 Root Mean
Square Error of Approximation (RMSEA), 0.836 Goodness of Fit
Index (GFI), 0.794 Average Goodness of Fit Index (AGFI), 0.916 Con-
firmatory Fit Index (CFI), 0.901 Tucker-Lewis fit index (TLI), and
0.917 Normed fit index (NFI) (Steiger & Lind, 1980). Convergent
validity is assessed using three criteria: reliability of measurement
items, composite reliability (CR) of measurement items, and aver-
age variance extracted (AVE) for each construct. Standardized fac-
tor loading coefficients for all measurement items are greater than
the recommended level of 0.5. All standardized item loadings are
significant at 0.001 (Hair, Anderson, & Tatham, 1998). Composite
Reliability for each construct exceeded the threshold of 0.7. The
composite reliability ranged from 0.732 to 0.936. The AVE for each
construct is greater than the benchmark of 0.5, except for the AVE
value of incentives (0.492). The AVE values ranged from 0.506 to
0.855. These values showed adequate convergent validity for all
constructs (Fornell & Larcker, 1981). Cronbach’s alpha values ran-
ged from 0.715 to 0.946, exceeding the reference value of 0.7 and
indicating good reliability (Nunnally, 1978) (see Table 3).

Table 2
Survey respondent profile (n = 256).

Measure Item Frequency Percentage (%)

Gender Male 74 28.9
Female 181 70.7
Missing 1 0.4
Age Under 20 23 9
21–30 187 73
31–40 7 2.7
41–50 22 8.6
51–60 17 6.6
Missing 0 0
Education High school 1 0.4
Undergraduate 198 77.3
Student 45 17.6
Bachelor’s degree 11 4.3
Master’s degree 1 0.4
Missing
Internet usage period (using a smartphone) Under 6 months 14 5.5
6 months–1 year 44 17.2
1–2 years 113 44.1
2–3 years 44 17.2
Over 3 years 40 15.6
Missing 1 0.4
Daily Internet usage time (using a smartphone) Seldom 11 4.3
Under 1 h 44 17.2
1–2 years 74 28.9
2–3 years 53 20.7
Over 3 years 74 28.9
Frequency of reading or viewing an advertisement on a smartphone 1–3 per day 117 45.7
More than 3 per day 102 39.8
1 per 2–3 days 16 6.3
1 per 4–5 days 4 1.6
1 per week 17 6.6
 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269 263

Table 3
Statistics of construct items.

Construct Item Standardized factor loading t-Value CR AVE Cronbach’s alpha

Personalization 1 0.551 8.635 0.832 0.558 0.839
2 0.834 13.667
3 0.781 –
4 0.790 12.924
Informativeness 1 0.793 12.759 0.741 0.506 0.796
2 0.800 –
3 0.599 9.542
4 0.631 9.941
Credibility 1 0.863 – 0.853 0.661 0.847
2 0.875 16.995
3 0.688 12.202
Entertainment 1 0.845 19.785 0.936 0.831 0.934
2 0.982 27.000
3 0.902 –
Irritation 1 0.849 22.334 0.946 0.855 0.946
2 0.972 33.262
3 0.948 –
Incentives 1 0.548 7.055 0.732 0.492 0.715
2 0.573 7.306
3 0.920 –
Advertising value 1 0.871 – 0.896 0.742 0.896
2 0.884 18.921
3 0.829 16.975
Flow experience 1 0.853 – 0.834 0.651 0.922
2 0.781 14.080
3 0.782 14.094
4 0.810 14.956
Purchase intention 1 0.877 14.604 0.787 0.689 0.864
2 0.829 13.875
3 0.782 –
Fit indices v2 = 853.516, df = 370, v2/df = 2.307, P value = 0.000, GFI = 0.836, AGFI = 0.794, IFI = 0.917, TLI = 0.901, CFI = 0.916, RMSEA = 0.072

Table 4
Discriminant validity.

Construct (1) (2) (3) (4) (5) (6) (7) (8) (9)
Personalization .747
Informativeness .639** .712
Credibility .623** .509** .813
Entertainment .585** .567** .666** .911
Irritation .231** .024 .178** .282** .925
Incentives .060 .122 .153* .249** .027 .701
Advertising value .540** .504** .659** .712** .185** .324** .862
Flow experience .474** .477** .628** .738** .269** .296** .689** .807
Purchase intention .443** .473** .507** .655** .167** .229** .561** .602** .830

The bold numbers on the diagonal are the square roots of the AVE.
*
Correlation is significant at the 0.05 level (2-tailed).
**
Correlation is significant at the 0.01 level (2-tailed).

Table 5
Fit indices for research model. square root of AVEs, demonstrating that discriminant validity is
acceptable (Fornell & Larcker, 1981).
Fit indices Research model Recommended criteria
v2/df 1.665 <3.0
GFI 0.858 >.0.9
4.2. Assessment of structural model
AGFI 0.825 >0.8
IFI 0.957 >.0.9
TLI 0.950 >.0.9 AMOS rel. 16 is employed to assess the structural model. The fit
CFI 0.956 >.0.9 indices demonstrate in Table 5. The GFI was slightly below the 0.9
RMSEA 0.051 <0.08
benchmark, but it exceeded the recommended cut-off value of 0.80
(Etezadi-Amoli and Farhoomand, 1996; Seyal, Rahman, & Rahim,
2002). The research model fit is acceptable (Steiger & Lind, 1980).
The results of the discriminative validity analysis are shown in Results the hypotheses testing are illustrated in Fig. 2.
Table 4. Diagonal elements represent the square root of AVEs and First, purchase intention is positively and significantly affected
the off-diagonal elements are the correlations among the con- by advertising value (b = 0.326, p < 0.001) and flow experience
structs. The correlations among the constructs are lower than the (b = 0.183, p < 0.05). Advertising value also had a significant impact
264 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269

-0.019
(-1.41)

0.175
Informativeness (1.661) Advertising value
0.388***
(4.158)
0.815***
(11.175) 0.369*** 0.326***
(4.896) (3.435)
Credibility
0.025 0.188***
0.736*** (0.572) (3.51)
(10.621)
Purchase
Personalization
intention
0.665***
(10.358) Entertainment 0.138
(1.325)
0.183* 0.427***
0.274** (2.015) (4.491)
(2.766)
-0.237***
(-3.555)
Irritation 0.461***
(5.806)

-0.087*
(-2.025) Flow
0.091
experience
Incentives (1.894)

-0.159
(-1.217)

Fig. 2. Structural model test results. p < 0.1, ⁄p < 0.05, ⁄⁄

p < 0.01, ⁄⁄⁄
p < 0.001, Values in parentheses are t-values

(b = 0.019, p > 1) and flow experience (b = 0.159, p > 1). Thus,

Table 6 H9-5 and H9-6 are not supported. A summary of hypotheses test
Summary of hypotheses test results. results are shown in Table 6.
Hypothesis Path Result
H1 (+) Advertising value ? Purchase intention Supported
H2 (+) Flow experience ? Purchase intention Supported
5. Discussion and conclusion
H3 (+) Advertising value ? Flow experience Supported
H4-1 (+) Informativeness ? Advertising value Supported 5.1. Discussion
H4-2 (+) Informativeness ? Flow experience Not supported
H5-1 (+) Credibility ? Advertising value Supported
5.1.1. Relationships among advertising value, flow experience, and
H5-2 (+) Credibility ? Flow experience Supported
H6-1 (+) Entertainment ? Advertising value Supported purchase intention
H6-2 (+) Entertainment ? Flow experience Supported Advertising value and flow were found to be key determinants
H7-1 ( ) Irritation ? Advertising value Not supported of purchase intention in the context of smartphone advertise-
H7-2 ( ) Irritation ? Flow experience Supported
ments. Advertising value was also proven to be a significant
H8-1 (+) Incentives ? Advertising value Supported
H8-2 (+) Incentives ? Flow experience Supported
antecedent of flow experience. These results are partially consis-
H9-1 (+) Personalization ? Informativeness Supported tent with previous studies for online services (Wang, Yeh, & Liao,
H9-2 (+) Personalization ? Credibility Supported 2013). This result state that when customers perceive smartphone
H9-3 (+) Personalization ? Entertainment Supported advertisements to be useful, important, and valuable, they experi-
H9-4 ( ) Personalization ? Irritation Supported
ence flow in the advertisement and intend to purchase goods or
H9-5 (+) Personalization ? Advertising value Not supported
H9-6 (+) Personalization ? Flow experience Not supported services.
Moreover, flow experience with smartphone advertisements
has played a critical role in forming purchase intention. This find-
ing is consistent with prior studies for online services and mobile
advertising (Shin, Choi, & Shin, 2011; Chang & Zhu, 2012). This
on flow experience (b = 0.433, p < 0.001). Thus, H1, H2, and H3 are
result indicates that when customers are intensely absorbed and
supported. completely focused on smartphone advertisements, they better
Second, advertising value is positively associated to informa-
understand and enjoy an advertising message. Customers then will
tiveness (b = 0.175, p < 0.1), credibility (b = 0.388, p < 0.001), enter- purchase goods or services.
tainment (b = 0.369, p < 0.001), and incentives (b = 0.188,
p < 0.001). However, advertising value is not associated with irrita-
tion (b = 0.025, p > 0.1). Thus, H4-1, H5-1, H6-1, and H8-1 are sup- 5.1.2. Relationships among cognitive, affective, economic, and
ported, and H7-1 is not supported. In addition, flow experience is advertising value and flow experience
significantly influenced by credibility (b = 0.274, p < 0.01), enter- All cognitive, affective, and economic factors excluding irrita-
tainment (b = 0.461, p < 0.001), irritation (b = 0.087, p < 0.05), tion were shown to have a positive and significant effect on adver-
and incentives (b = 0.091, p < 0.1). However, flow experience is tising value. Our results showed that trust was the strongest
not influenced by informativeness (b = 0.138, p > 0.1). Thus, H5-2, determinant of advertising value, followed by entertainment and
H6-2, H7-2, and H8-2 are supported and H4-2 is not supported. informativeness. These results state that customers have good per-
Third, personalization is influenced significantly by informa- ception about smartphone advertisements when it is credible,
tiveness (b = 0.815, p < 0.001), credibility (b = 0.736, p < 0.001), trustworthy, enjoyable, and pleasing, and when relevant product
entertainment (b = 0.665, p < 0.001), and irritation (b = 0.237, information is delivered to customers in a timely manner. These
p < 0.001). Thus, H9-1, H9-2, H9-3, and H9-4 are supported. How- results are consistent with the findings of Ducoffe (1995) and Liu
ever, personalization is not associated with advertising value et al. (2012).
 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269
Advertising value was found to be influenced by incentives in
smartphone advertisements. This finding demonstrates that when
customers can obtain rewards such as a discount coupon, mobile
money, or gift coupon in return for viewing advertisements on a
smartphone, they have a favorable perception about smartphone
advertisements. Incentives were also proven to be a significant
predictor of campaign attitude (Varnali et al., 2012), and word-
of-mouth intention and click intention (Standing et al., 2005;
Varnali et al., 2012; Ünal et al., 2011).
The findings showed that irritation was not related to advertis-
ing value. An imprudent smartphone advertisement may irritate or
annoy customers. Nonetheless, irritation alone did not influence
customer perception about advertising value. This indicates that
customers tend to have a favorable perception about advertising
value if they consider smartphone advertisements as a good source
of receiving product information, and if they perceive that smart-
phone advertisements is credible and enjoyable, and provide eco-
nomic benefits even though they may feel annoyed by the
advertisement.
This result is contradictory to previous studies (Liu et al., 2012).
The Liu et al. (2012) study focuses on investigating the factors
influencing consumers’ decisions about whether to accept pull-
type SMS advertising. The data were collected from feature phone
and smartphone users. However, our study put an emphasis on
examining smartphone advertising factors that influence purchase
intention. The data were collected only from smartphone users
who experience both push-type SMS advertising and pull-type
advertising. We assume that the discrepancies between the two
studies can cause different test results.
Flow experience was affected by entertainment, credibility,
irritation, and incentives. Entertainment plays the strongest role
in enhancing flow state from smartphone advertisements. Trust
and incentives play the second and third strongest roles. Enter-
tainment, credibility, and incentives enable customers to fully en-
gage or be deeply engrossed while viewing smartphone
advertisements. Irritation also had a negative impact on flow
experience with smartphone advertisements. Annoyance hinders
customers from intensely absorbing smartphone advertisements.
Customer attention is also not focused on the advertisement
due to the irritation caused by the advertisement. These findings
are partially consistent with the study results of Shin et al.
(2011). According to Hoffman and Novak (2009), playfulness
(Agarwal & Karahanna, 2000) and arousal (Novak, Hoffman, &
Yung, 2000) are among key determinants of flow experience in
virtual fields such as e-Business and e-Education. A smartphone
provides the most advanced mobile Internet media that allow
advertisers to communicate with a potential customer in real
time and in a virtual field. Therefore, it appears that cognitive,
affective, and economic factors help customers to experience flow
in smartphone advertisements.
5.1.3. Relationships among personalization, cognitive, and affective
factors
Personalization was proven to be a strong predictor of infor-
mativeness and credibility. The findings suggest that personaliza-
tion of smartphone advertisements enhances informativeness
and credibility. Personalized smartphone advertisements are
appropriately designed based on customer preference, interest,
and context. Chen and Hsieh (2012) also suggest that personali-
zation of mobile advertising allows the delivery of an advertising
message to customers at the right time and place with the right
message.
Personalization was also indicated as a key antecedent of enter-
tainment. Smartphone advertisement messages can be succinct
265
and enjoyable by personalizing advertisements on the basis of cus-
tomer interests, needs, preferences and contexts. Personalized
advertisements can induce greater customer interest in advertising
messages and greater enjoyment while they are reading or viewing
the message. Therefore, personalizing an advertisement is a crea-
tive and crucial technique greater entertainment in advertising
messages in a smartphone context.
The study found that personalization and irritation was nega-
tively related. Personalized smartphone advertisements can reduce
irritation, annoyance, and disturbance caused by a number of mis-
leading and diverting advertisements. Personalized advertising is
delivered to highly targeted customers in need of products and
services of companies. Personalized advertising assumes that
customers tend not to avoid viewing or receiving personalized
advertisements. However, customers perceive personalized adver-
tisements as undesirable and unwanted. Consequently, the finding
showed that irritation or annoyance was reduced by a
personalized advertisement that is designed for the consideration
of customer needs, preferences, interests, and context.
5.1.4. Relationships among personalization, advertising value, and
flow experience
Contradictory to our expectations, personalization did not show
a significant relationship for advertising value and flow experience.
The dimensionality of advertising value and flow experience can
possibly exist. Advertising value can include functional, emotional,
and social value (Sweeney & Soutar, 2001). Similarly, several prior
studies operationalized flow as second-order factors (Hoffman &
Novak, 1996; Li & Browne, 2006; Guo & Poole, 2009). For example,
Guo and Poole (2009) proposed flow as a six dimensional con-
struct: concentration; merging of activity and awareness; sense
of being in control, transformation of time; loss of self-conscious-
ness; and autotelic experience. It is possible that personalization
is significantly associated with one of the advertising value and
flow experience dimensions.
Finally, cognitive and affective factors only partially mediated
the relationship between personalization and advertising value.
These two factors also fully mediated the relationship between
personalization and flow experience. To confirm the possibility of
mediating effects, further studies are needed to investigate a pro-
cess for how advertising value and flow experience are reinforced
by a personalized advertisement in systematic and multiple
methods.
5.2. Conclusion
This study contributes to a theoretical understanding of smart-
phone advertisement factors that influence purchase intention and
structural relationships. We confirm that the relationships from
personalization to cognitive, affective, and economic factors and
their relationships to advertising value and flow experience and
the purchase intention chain is a mechanism that illustrates how
customers respond to smartphone advertisements.
5.2.1. Theoretical contributions
There are several theoretical contributions from this study.
First, the study reveals that advertising value plays an important
role in helping customers with flow experience when receiving
smartphone advertisements and forming purchase intention.
Although Liu et al. (2012) addressed the importance of advertising
value by examining effect on attitude, previous studies have not
paid attention in examining the relationships between advertising
value, flow experience, and purchase intention. Thus, the results of
this study extend the current literature on mobile advertising
266 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269
value.
Second, this study is first to offer empirical evidence that flow
experience is a key predictor of purchase intention. Flow experi-
ence is affected by cognitive, affective, and economic factors. Very
few studies from a mobile advertising context have investigated
the role of flow experience in customer behavior. The antecedents
and consequences of flow experience have not been sufficiently
identified and examined in previous research. This study can moti-
vate further studies to explore determinants and consequences of
flow experience.
Third, this study discloses a pivotal and determinative role of
personalization that increases informativeness, credibility, and
entertainment, and reduces irritation. The study also provides
empirical evidence about the mediating effects of cognitive and
affective factors and the relationships between personalization,
advertising value, and flow experience. The study of Xu et al.
(2008) and Ünal et al. (2011) demonstrated that attitude toward
mobile advertising is affected by personalization. However, there
is a failure to explain why personalization contributes in forming
a favorable attitude toward mobile advertising. Moreover, there
have been few studies about why the personalization of mobile
advertising is a critical factor in increasing advertising value
and flow experience. While we consider that personalized adver-
tising features allow customers to enjoy more convenience, lower
cost, or other benefits (Peppers & Rogers, 1997), personalized
advertising studies need to identify the consequences of personal-
ization, and the direct and indirect effects of these consequences
on customer behavior. This study adds valuable knowledge and a
clear understanding of how personalization improves informa-
tiveness, credibility, and entertainment, and lowers irritation,
which, in turn, leads to increasing advertising value and flow
experience. Thus, the findings of our study shed light on explain-
ing why personalization should be provided in smartphone
advertisements.
5.2.2. Managerial implications
From a practical perspective, marketers and advertisers will
gain insight on how smartphone advertisements contribute to
forming customer purchase intention. Our model results provide
some strategic and managerial guidelines to marketers, advertis-
ers, and mobile advertising platform providers. Some of the ele-
ments to success include smartphone advertisements that play
on the differentiated features of mobile gadgets that will make
sure customers perceive smartphone advertisements to be useful,
valuable, and important, and experience flow while engaging in
viewing smartphone advertisements. Marketers and advertisers
are better off to deliver more pleasant, credible, and informative
smartphone advertisements to customers while giving up a spray
advertising approach that causes irritation of customers. Our
study suggests that one of the effective ways to deliver such a
high quality of smartphone advertisements is to personalize
advertisements on the basis of customer demographic data,
preference, purchase behavioral information, and context. Thus,
marketers and advertisers should make every effort to create
and disseminate personalized advertisements while harnessing
some sophisticated personalization applications and systems. In
addition, mobile advertising platform providers such as Google
(AdMob) and Apple (i-Ad) need to continue incorporating cutting
edge solutions and systems for personalization into their mobile
advertising platforms to survive intense competition. Mobile mar-
keters and advertisers also need to designate various incentives
tailored to the types of smartphone advertisements (SMS, MMS,
and keyword search, display, and rich media advertisements)
and customer context.
Our results can provide some benefits to customers and policy
makers by identifying the influential factors on customer’s
purchasing intention. Customers are likely to avoid annoying or
privacy-intrusive advertisement (Hill, 2013). As the results sug-
gested, personalization does not show a direct effect on advertis-
ing value, but has an indirect effect through informativeness,
credibility, and entertainment. When advertisers identify our
results, customers could receive more beneficial advertising mes-
sages rather than random invasive messages. Several government
institutions such as the KCC, the Ministry of Culture, Sports, and
Tourism, and the Ministry of Security, Public Administration par-
ticipate in formulating advertising policy in South Korea. These
policy makers can handle various advertising media such as
television, radio, newspaper, magazines, cable, satellite, online,
mobile, IPTV, DMB, and outdoor advertisement. These govern-
ment institutions should consider the characteristics of advertis-
ing media in order to promote the advertising industry and
protect consumer’s rights. This study can provide policy makers
a better understanding of customers’ purchase intention and its
influential factors in the emerging smartphone advertising
market.
6. Limitations and future research
The study contains some limitations in the generalization of
the research results. First, the survey population is confined to
South Korea. Further research is required to generalize the re-
search model to other cultural and country contexts. Second, a
limited number of determinants for flow experience were exam-
ined. Further studies need to identify more key predictors such as
interactivity, skills, and Web design quality. Third, this study is
the first to empirically examine relationships among personaliza-
tion, cognitive and affective factors, advertising value, and flow
experience in a smartphone advertisement context. More effort
is required to theoretically and empirically validate these rigorous
relationships. More specifically, further efforts are needed to see
the influences of advertising value on flow and purchase inten-
tion, and the impact of flow experience on purchase intention
in a smartphone advertisement context. That is, there is a need
to confirm these relationships more rigorously. Perceived adver-
tising value including functional, emotional, and social values
from a perceived value perspective may be considered as a sec-
ond-order factor (Sweeney & Soutar, 2001). The association
between cognitive, affective, and economic factors, and advertis-
ing value could be investigated further through a multi-dimen-
sional approach. In addition, incentives play a role in increasing
advertising value and forming a favorable attitude towards pur-
chase intention in smartphone advertisements. Thus, the relation-
ships among incentives, advertising value, attitude and intention
need further investigation.
Finally, personalization may cause privacy concern. Empirical
research that pursues insights into the moderating effect of privacy
concerns on the relationships between personalization and cogni-
tive and affective factors is needed. In addition, further studies
should examine the moderating effects of respondent demograph-
ics and the relationships among personalization, cognitive and
affective factors, advertising value and flow experience, and the
relationships between advertising value, flow experience, and pur-
chase intention.
 Y.J. Kim, J. Han / Computers in Human Behavior 33 (2014) 256–269 267

Appendix A

Measurement items

Constructs Measurement items References

Personalization I feel that smartphone advertisements are tailored to me Xu et al. (2008), Ünal et al.
I feel that contents in smartphone advertisements are personalized (2011)
I feel that smartphone advertising is personalized for my usage
I feel that smartphone advertising is delivered in a timely way

Informativeness Smartphone advertising provides timely information on products or services Wang and Sun (2010), Liu
Smartphone advertising supplies relevant information on products or services et al. (2012)
Smartphone advertising is a good source of information
Smartphone advertising is a good source of up to date products or services
information

Credibility I feel that smartphone advertising is convincing Liu et al. (2012), Yang et al.
I feel that smartphone advertising is believable (2013)
I feel that smartphone advertising is credible

Entertainment I feel that smartphone advertising is interesting Wang and Sun (2010), Yang
I feel that smartphone advertising is enjoyable et al. (2013)
I feel that smartphone advertising is pleasant

Irritation I feel that smartphone advertising is irritating Varnali et al. (2012), Yang
I feel that smartphone advertising is annoying et al. (2013)
I feel that smartphone advertising is intrusive

Incentives I am satisfied to get smartphone advertisements that offers rewards Ünal et al. (2011)
I take action to get smartphone advertisements that offers rewards
I respond to smartphone advertising to obtain incentives

Advertising value I feel that smartphone advertising is useful Ducoffe (1995), Liu et al.
I feel that smartphone advertising is valuable (2012)

I feel that smartphone advertising is important

Flow experience I completely concentrate on smartphone advertising while I look at them Novak et al. (2003), Chang
When I read smartphone advertising, time seems to pass by very quickly (2013)
While I watch smartphone advertising, nothing seems to matter
While I view smartphone advertising, I feel totally captivated

Purchase I would consider purchasing goods or services with smartphone advertisements Hong and Cho (2011), Wu
intention I intend to purchase goods or services with smartphone advertisements et al. (2011)
I would probably buy goods or services with smartphone advertisements

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