Man In India, 96 (5) : 1671-1684 © Serials Publications

* Research Scholar, K.L. University, Guntur and Assistant Professor, Geethanjali Institute of PGStudies, Nellore

** Associate Professor, K L U Business School, Guntur, Andhra Pradesh, India*** Professor and Head, Department of Management Studies, Narasaraopet Engineering College,

Narasaropet

A STUDY ON MOBILE SMS ADVERTISINGEFFECTIVENESS IN VIJAYAWADA

M. Sandeep Kumar*, D. Prasanna Kumar** andM. Srinivasa Narayana***

The recent rise in the usage of mobiles by people of all ages resulted in lucrative marketingstrategy for Mobile SMS Advertisers which is cost effective and has high reach and more probablesuccess. This trend paved the way for many companies of goods and services in the state to adoptSMS advertising as new marketing platform. The present study investigates young consumers’attitude towards SMS advertising and tries to identify relevant factors affecting consumers’ attitudetowards SMS advertisement and users actual behavior with a sample size of 110 and deals withall age group & Occupation of customers in the area of Vijayawada. The study suggested that inorder to increase the acceptance of SMS advertising, marketers should be careful in sendingSMS advertising that are considered irritating. Therefore, sending non-irritating SMS advertisementis crucial in SMS advertising so that users would develop positive attitudes towards SMSadvertising.

Key Words: SMS, mobile phones, consumer, attitudes, and advertising

I. INTRODUCTION

This Year last month I received an coupon SMS from METRO Cash and Carrythat I will be given a ten kilo of Atta on purchase of Thousand rupees of anymerchandise or goods at their store. After the purchase I did some thinking aboutthe advantages of SMS interaction between the Company and customer and thePRO’s and CON’S of SMS based Advertising. Generally companies find it as anattractive proposition to use BULK SMS to their target customer as theireffectiveness is high as also it involves very less cost. Recent rise in the mobilesubscriptions has made the Mobile Advertising Space attractive to companies byacting as an interactive media to reach the target consumers by sending specificmessages to them that will result in a win-win situation both of them. The successrate of Mobile Advertisements is high when compared to TV or print as the messagecontent is reaching the particular targeted consumer who which may not be thecase in the latter. Most of the SMS’s are read by customer and this results in a costeffective proposition as companies use the BULK SMS option to send theiradvertisements. Customers regularly complain about SPAM SMS as there is noproper awareness about the use of SMS Ads and feel that they are sent as a tool to

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exploit their weakness. ASCI, a self-regulatory voluntary organization deals withcomplaints from consumers against advertisements that were considered false ormisleading, contain indecency and are illegal while CCC deals with unsafe practicesor unfair to competition.

II. LITERATURE REVIEW

Mobile marketing companies created a bad reputation that they intrude the receiver’sprivacy and will unnecessarily result in wastage of time due to the SMS being outof context with the consumer and don’t care about the consequences of sharing thedatabase without proper permission according to Beerud Sheth, co-founder andthe president of Webaroo’s GupShup. According to Zaw Thet, CEO, 4INFOmarketers need to be more innovative in effectively tapping its potential in deliveringthe information to consumers, but also in its ability in sparking a conversationwith them.

SMS ADVERTISEMENTS should be having the following attributes

NON-IRRITATION

SMS advertising will be useful in providing timely and results in a win-win situationfor the customer as well as the SMS Sending and may sometimes confuse as wellas distract the prospective customer if they are very frequent at unusual times ofthe day will irritate the customer after which he may develop a negative opinionabout the advertised product due to a feeling that the company wants to tie itsinferior quality product to the customer by distracting him. Customers are wary ofunwanted messages, commonly known as spam (DICKINGER, 2005).

CREDIBILITY

Credibility of the firm sending the SMS advertisement will have a major impact itseffectiveness and success in achieving the goal of making the customer buy itsproducts.

INFORMATIVENESS

It can be defined as the ability of the SMS Advertisement sending firm to createawareness in the consumers about the various possible alternatives available tohim and he can obtain the maximum satisfaction after buying any product thatsuits his need.

ENTERTAINMENT

MOBILES and particularly smart phones have created a separate place for them inmost people across the globe and act as an entertainment platform which providesvarious services like MUSIC DOWNLOADING, GAMES, INTERNET TV,PLAYING VIDEOS,SONGS AND WATCHING SPORT MATCHES. As

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customers get accustomed to mobile for these services they will see the mobilebased Advertisement and messages as an informative tool that may provide somediscounts and incentivize them for reading the SMS.

III. OBJECTIVES OF THE STUDY

1. To identify general attitude of young consumers’ towards SMS advertising.

2. To evaluate attributes affecting the attitude of young consumers’ towards SMSadvertising.

3. To study how the age of people is their attractiveness towards the mobileSMS.

4. To know about the consumer perception, behavior, lifestyle affects SMS usage.

5. To assess the importance of different factors in SMS Advertising.

6. To understand the problems in SMS Advertising.

7. To study the impact of brand preference on SMS Advertising.

IV. SCOPE OF STUDY

The Inferences from the study are based on the responses given by the consumersin a specific area. This study will be helpful in getting an insight into the attitude ofyoung consumers’ towards SMS advertising It may not fully reflect the mindset ofthe consumers as they may shy from answering all the questions straight forwardly.

V. RESEARCH METHODOLOGY

5.1. Research problem

To know how the consumers reaction when they got the message from the particularcompany. This study also explain the consumer awareness on the SMS send bythat particular company what he interest in it. Now a days, the marketers has thenew way to get in the customers mind through the SMS. The companies are beingusing the technology to be in the customers mind by various types of advertisingto know the customer reaction when he gets advertisement message.

5.2. Area of the study

The respondents are randomly selected for this study.

5.3. Research approach

Survey and questionnaires method

Survey method is used for collecting data from customers at various Retail Outletsand Showrooms at various Locations. We requested all respondents to fill in thequestionnaire, by self after explaining the various aspects mentioned in it. It

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contained both open and closed ended questions in a structured format very easyto understand on the first look.

5.4. Sampling Technique

A convenient sample (non – probability sampling method) of 110 Apparel Buyerswas collected for the current study in which respondent of the study was request tocomplete the questionnaire on voluntary basis.

5.6. Data Usage

For analysis and interpretation, only primary data is used. However for conclusionand recommendations both primary and the secondary data along with the verbalknowledge and information although obtained from respondents, though they areoutside the parameters of questionnaire were also included. The data collectedfrom these sources were analyzed using various tools like percentage analysis,chi-square test, cross table analysis method.

5.7. Tools

Frequencies and cross tabulation have been calculated for the responses of therespondents. Chi – Square test analysis was conducted on the data of part II inquestionnaire.

VI. ANALYSIS AND INTERPRETATION

6.1. General Profile of the Respondents

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Interpretation

From the above table, we infer that 72 of the total respondents are male and 38 arefemale. On further classification according to age group, we find that of all therespondents 35 are 18-25 Years old, 38 are of the age group 26-35 Years, 19 of theage group 36-45, 18 are of the age group with 46-65 years. From the responsescollected 37 respondents are Diploma holders, 49 are Graduates and 24 are Post-Graduates. On the Monthly Income basis 54 Respondents earn less than 25,000Rs, 24 of them earn 25,001-40,000 Rs, while the remaining 32 earn more than40,000 Rs. When asked about how many SIM CARDS are active with them theresponses are 60 of them have ONE,26 have TWO and 24 have THREE. To thequery on PRIMARY REASON FOR USING a MOBILE PHONE 102 told it is forPHONE-CALLS, 7 for SMS and 1 for MMS

TABLE 6.2: RESPONDENTS VIEWS ABOUT MOBILE SMS ADVTERTISEMENTS

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6.4 Chi-Square Test

6.4.1. Is There a Relation between AGE OF RESPONDENT and HIS MOBILEPRIMARY USAGE PURPOSE?

Figure 6.3

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CHI-SQUARE

From the above SPSS calculation we infer that there is a significant relation betweenAGE OF RESPONDENT and HIS MOBILE PRIMARY USAGE PURPOSE.

6.4.2. Is There a Relation between EDUCATION LEVEL OF THERESPONDENT and PERCEPTION THAT MOST SMSADVERTISEMENTS ARE SPAM?

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CHI-SQUARE

From the above SPSS calculation we infer that there is a significant relation betweenEDUCATION LEVEL OF THE RESPONDENT and PERCEPTION THAT MOSTSMS ADVERTISEMENTS ARE SPAM.

6.4.3. Is There a Relation between GENDER OF THE RESPONDENT and THEFREQUENCY OF HIS RECEIVING SMS?

CHI-SQUARE

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From the above SPSS calculation we infer that there is a relation between GENDEROF THE RESPONDENT and THE FREQUENCY OF HIS RECEIVING SMS.

6.4.4. Is There a Relation between RESPONDENTS INCOME AND HISLIKING TO RECEIVE COUPON SMS?

CHI-SQUARE

From the above SPSS calculation we infer that there is no RELATIONSHIPBETWEEN INCOME AND HIS LIKING TO RECEIVE COUPON SMS.

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6.4.5. Is There a Relation between NUMBER OF SIM CARDS WITHRESPONDENT and HIS PERCEPTION SMS IS AN EFFECTIVEMEDIA ADVERTISEMENT?

CHI-SQUARE

From the above SPSS calculation we infer that there is no significant relationbetween NUMBER OF SIM CARDS WITH RESPONDENT and HISPERCEPTION SMS IS AN EFFECTIVE MEDIA ADVERTISEMENT.

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6.4.6. Is There a Relation between PROFESSION and HIS CHECKING SMSFREQUENTLY?

CHI-SQUARE

From the above SPSS calculation we infer that there is a significant relation betweenPROFESSION and HIS CHECKING SMS FREQUENTLY

VII. FINDINGS

1. SMS Advertising adaptability is directly proportional to the Network Accessand also the quality of the Service Provider.

2. SMS sent by the goods seller of service provides should not create a sense ofirritation in the minds of customers as it would negatively affect their opinionabout the product itself.

3. Companies should take care about the location of their store and that of thecustomer as sending a SMS to a distant customer will be menacing to theCustomer as well as increase costs to them.

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4. Companies should study the Social Analytics data to have a betterunderstanding about the customer’s tastes and preferences.

5. The study suggested that in order to increase the acceptance of SMS advertising,marketers should be careful in sending SMS advertising that are consideredirritating.

6. Timing of sending the SMS is also important as sending repeated SMS atnight may irritate the customer.

7. The customer should feel that there is an incentive for his receiving the SMSAds.

8. SMS Advertising should be applicable to the context in which they are sent.

9. The study says that the most of the people were more interested to get SMSadvertisements.

10. SMS Advertising depends on the Lifestyles of the population in that locality.

11. For its success the SMS Advertisement should be able to reach all customersegments particularly Youth.

12. Credibility of the companies sending the SMS Ad plays an important role inits effectiveness as the customers sometimes are not interesting in reading allSMS from unknown sources.

13. The SMS Ad about a product should be drafted in such a manner that it is ableto create a positive appeal towards itself.

14. Ability to create awareness in the customers about the positive outcomes ofSMS Advertising will be contributing to its success,

15. Brand Awareness and product recall are also playing an important role in theresponse of the customer to the company’s SMS Advertisement.

16. Most of the people was buying the goods while they are getting the offersthrough SMS

17. Most of the customers are getting the discounts coupons by SMS and aregetting benefited by them

18. Customers Attitude towards SMS Advertising should be studied prior toimplementing it in different locales as it varies across regions.

19. Most of the advertising companies are using the BULK SMS route to sendtheir message to the customer.

VIII. SUGGESTIONS

Companies should send SMS advertisement to similar groups of people on thebasics of age, gender. There should be clarity in the SMS on offers given by thecompany. The company people should have a clear understand about the attitudes

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and perceptions of the targeted age of customers. The sent SMS should be reachingto those particular groups and not all the population.SMS that were sent should beable to relate with the customers. The advertising agency should be able to classifypeople on the basis of Demographic attributes into various categories and decidethe target segments.

CONCLUSION

The study discussed in this paper investigated young consumer attitudes towardsSMS advertising. In summary, the results indicate that consumer attitudes towardsSMS advertising are fairly positive and non-irritation was the most importantattribute affecting consumer positive attitudes towards SMS advertising. Theirattitudes were favorable if advertisement is non-irritating and is permission-based.All attributes; personalization, non-irritation, credibility, in formativeness,entertainment and monetary benefit were positively correlated to overall attitudetowards SMS advertising. Overall, SMS advertising will continue to be one of thepreferred mobile marketing trends by marketers. The present findings haveimplications for both researchers and practitioners. Nevertheless, this study is limitedin its scope. While the students’ population was a target population of youngconsumer, further studies should examine a broader sample of respondents.Additionally, it will be interesting to investigate further what factors that reallycontributes to negative attitudes towards SMS advertising and how attitudes canbe changed.

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