FACULTY OF BUSINESS AND

MANAGEMENT
PROPOSAL DEFENCES
TITLE:
ADVERTISING VALUE IMPACT ON CONSUMER
ACCEPTANCE TOWARDS MOBILE
ADVERTISING
SUPERVISOR:
MR BASU
GAYATHIRI DORAI SINGAM

INTRODUCTIO
N

Mobile advertising can be defined as the usage of

mobile where advertising will be transit via
internet to consumer in the form of advertising
messages, overall goal to promote goods and
services(Haghirian, Madlberger and Inoue, 2008)
Mobile industry in Malaysia has grown rapidlyin
recent years but yet to be explored according to
Ms. Ng Wan Peng, COO of the
Multimedia Development Corporation (MDeC)

In Malaysia according to Malaysia Social Media

Statistics for 2012, Malaysia has 34 millon
mobile subscribers

Today internet play an important role in the

mass media where it is used as a global
communication tool for transfering and
exchanging knowledge, goods, and services across
global boundaries
Interactive way to reach the consumer and
helpful to build a customer intimacy so
marketers decided to use mobile
(Haghirian,2005)
Marketing activities, being conducted via mobile
devices marketers feels they are communicating
with potential customer in a faster way and
regardless the geographical location
(Irfan Haider ,2012)

PROBLEM STATEMENT
Mobile channel has form an ultimate marketing
vehicles, which enables business entities to reach
customer directly via an electronic device
presence alongside their customer anytime,
anywhere (Varnali and Toker, 2010)
Since most of the people are in possession of their
mobile phone all day long, so marketers can reach
their consumer almost anytime and anywhere
because consumer while read the message
anytime (Rettieet al., 2005)
Even though, mobile advertising has been
regarded as the fifth most influential advertising
medium, Malaysian consumers response towards
mobile advertising still stampy

Consumers will receive mobile advertising, such as

ranging reminder, notice, greetings, promotional
campaign, new-product launch and also services .The
underlying factors that will make them open up the
advertisement, read, response or keep it for future
purchase reference depend on advertising value and is
still insufficient in Malaysia (Adham, et al., 2008)
Therefore, advertising value plays an important
towards consumer acceptance of mobile advertising
The focus of this study is to investigate advertising
value impact towards customer acceptance of mobile
advertising among private university students in
Penang

OBJECTIVE OF STUDY

Mobile devices has become a necessity for many

people throughout the world, advanced cell
phones are capable of not only receiving and
placing phone calls, but storing data, taking
pictures, check for important email, use their cell
phone as a PDA or calendar, and store photos
which can be easily transferred to a PC or laptop
computer

The popularity of mobile advertisements is

growing in Malaysia, and it is therefore relevant
for marketers to consider this new form of
marketing
Through the mobile phone, timely ads can be
delivered to consumers based on their social
context, individual preferences, time and location
which are ideal for this.
Marketers need to understand how consumer will
perceive and evaluate mobile devices as a source
of advertising
This papers objective is to find out impact of
advertising value towards customer acceptance of
mobile advertising.

SCOPE OF STUDY
University students at 2 selected private
university in Penang
According to Malaysia Communication and
Multimedia Commission household who use of
internet by age category 20-24 shows the highest
percentage which is 21.4 % and second ranking
will be age category 25-29 with 20.3 %
This supported by Dickinger et al., (2004), young
people are heavy users of internet and mobile
phone, furthermore, they give more feedbacks
towards mobile advertisements rather than older
people

This research will be conducted in Penang state

According to Malaysia Communication and
Multimedia Commission, Penang has the highest
number of hotspot locations by state which is
5071 by quarter 1 2014
Hotspot location is a site that offers internet
access over a network (WLAN)
This allows consumer to use it via mobile or
laptop and there is high possibilities consumer
being exposed to mobile advertising

RESEARCH OBJECTIVE

To investigate advertising value impact towards

customer acceptance of mobile advertising among
private university students in Penang.
To identify the most important dimension of
advertising value towards customer acceptance of
mobile advertising among private university
students in Penang.

RESEARCH QUESTIONS
Wheather advertising value impact towards
customer acceptance of mobile advertising among
private university students in Penang ?
Which is the most important dimension of
advertising value towards customer acceptance of
mobile advertising among private university
students in Penang ?

LITERATURE
REVIEW

TITLE
MOBILE
ADVERTISING

AUTHORS
Haghirian,
Madlberger and
Inoue, 2008

Kawamoto

FINDINGS
Mobile advertising can be defined as
the usage of mobile where advertising
will be transit via internet to consumer
in the form of advertising messages,
overall goal to promote goods and
services
Mobile advertising has become an
interactive tool and convey a more
personal touched message when
informing and persuading potential
customers to buy a product or a service
Mobile advertising not yet generate
the expected return in the way of the
investment growth because marketers
fails to understand how consumer
perceive and evaluate and the level of

TITLE

(DV)

AUTHORS

FINDINGS

Amberg, Hirschmeier,

As consumer being exposed to

and Wehrmann, 2004

mobile advertising, their acceptance

is also increasingly which show a
good sign
To make the advertisement
interesting, marketers create
advertisement in advance way
where through dispatching audio,
video clips, images for each
customer according to user belief,
mind set and character traits
Wheather consumer accept an
advertisement can be know through
the consumer feedback wheather it
is favourable or unfavourable
towards a particular advertisement

Vetter,2002

CONSUMER
ACCEPTANCE

Mehta 2000

TITLE

AUTHORS
Haghirian,200

Ducoffe, 1995

(IV)
ADVERTISING

Levi, 1990

VALUE

Houston and
Gassenheimer, 1987

FINDINGS
Advertising value is a measure
for advertising effectiveness
It is defined as a subject of an
evaluation which make an
advertisement worth to a
consumer
Advertising value can be defined
as a belief which connect
personally-psychologically or
socially-culturally preferable to a
consumer
Hence, value which reflect the
worth of the content of an
advertisment itself as well as the
experience with the service or
product
Values are the basis of actions,

TITLE
ENTERTAINMENT

AUTHORS
Katterbach, 2002

Petrovici ,2007

Lehmkuhl, 2003

(Haghirian, 2007

FINDINGS
Entertainment is an important the
message should be funny, and
immediately captures consumers
attention
The level of pleasure and
cheerfulness an individual feels is
called entertainment
Argue that pleasure is positively
will impact on consumers attitude
towards advertising.
Entertainment such as games and
prizes can used to make customer
involve more deeply and make them
feel comfortable with the advertised
service or product.
Entertainment generate favorable
feeling and increase the perceived

TITLE
INFORMATIVENESS

AUTHORS
Soberman,2004

Kotler and Keller,

2006

Pasadeos 1990

Varchney,2003

FINDINGS
The main focus of an advertisement
will be to create awareness among
public and how provide different
experince to the consumer
Argue that advertisement plays an
impotant role in providing
informations about new product and
informations about the changes of
price of the product
Explore that, when consumer
receive advertisement which full of
information consumer will feel less
irratation and less avoidance of
advertisement occurs
Information is consider valuable
incentive in mobile marketing
because consumer will react

TITLE
CREDIBILITY

AUTHORS

FINDINGS

Brackett and Carr,

Advertising credibility turned out to

2001

be significantly important to provide

advertising value to the mobile
advertisement
Credibility also prejudiced by which
medium it is sent to the consumer
meaning to said that message which
sent through internet has not as
much of credibility unless the
message is in printed form by a
powerful brand
Perceived credibilty is know as the
level of trust that consumer have on
the advertisement that offering of a
company will satify their needs and
wants and it also has direct postitive
effect on attitude towards mobile

Goldsmith, 2000

Choi and Rifon,2002

TITLE
IRRITATION

AUTHORS

FINDINGS

Stewart and

Advertising through mobile

Palvou,2002

devices sometime may provide not

accurate information which may
confuse the consumer and
consumer may have feeling they be
disturbed when they receive mobile
advertising
Another issues is that nowdays
mobile advertising seems to be
annoying and commonly know as
spam
Mobile advertisement should be
brief and informativeness to
overcome irritation effect
Overall attitude towards mobile
advertising was unfavorable,
associated with annoying, excessive

Dickinger,2004

Scharl, 2005

Lee,2006

GAP ANALYSIS
Base on literature reviewed, there is gap even tough
advertisement via mobile advertising offers great
opportunities for businesses and allow companies to
directly communicate with their consumers without
time or location barriers
According to Marko Merisavo (2007) future research
should focus on the content of mobile advertising
messages and how it impact on acceptance of mobile
advertising

RESEARCH FRAMEWORK

Based on the gap identified the research framework been derived

Ducoffe (1995,1996)identifies entertainment, informativeness and
irritation as factors contributing to consumer perceived and evaluate
advertising values on internet advertising
Brackett and Carr (2001)further validate Ducoffe's model, and extend the
model to include credibility

INDEPENDENT VARIABLE

DEPENDENT VARIABLE

ADVERTISING VALUE

ENTERTAINMENT
INFORMATIVENES
S
CREDIBILITY
IRRITATION

CUSTOMER ACCEPTANCE

HYPOTHESES

(Pearson Correlation)

H0: Advertising value has no positive

relationship towards customer acceptance of
mobile advertising
H1: Advertising value has a positive relationship
towards customer acceptance of mobile
advertising

(Multiple Regression Analysis)

H2o: Advertising value has no significantly
impact towards customer acceptance of mobile
advertising
H2a: Advertising value has significantly impact
towards customer acceptance of mobile
advertising

METHODOLOGY

POPULATION
According to Uma Sekaran(2003), population is
the entire group of people, events or things of
interest that the researcher wishes to investigate
This research will be conducted in Penang state
which have 1.648 million of population
(Department of Statistics, Malaysia 2013)
Private University students in Penang

SAMPLE SIZE
160 respondents
80 students from each private universities

(Roscoe (1975) rule of thumb for determining

sample size, he proposed that samples size larger
than 30 and less than 500 are appropriate for
most research)

SAMPLING METHOD
Non Probability sampling
In nonprobability sampling designs, the elements
in the population do not have any probabilities
attached to their being chosen as sample
subjects.
Findings from the study of the sample cannot be
confidently generalized to the population

CONVENIENCE SAMPLING

Convenience sampling refers to the collection of

information from members of the population who
are conveniently available to provide it,
Umasekaran.

UNIT OF ANALYSIS
Unit of analysis for this research will be Private
University students in Penang
According to Malaysia Communication and
Multimedia Commission household who use of
internet by age category 20-24 shows the highest
percentage which is 21.4 % and second ranking
will be age category 25-29 with 20.3 %
This supported by Dickinger et al., (2004), young
people are heavy users of internet and mobile
phone, furthermore, they give more feedbacks
towards mobile advertisements rather than older
people

QUESTIONNAIRE
The questionnaire is divided into 2 part
Section A respondents were asked about the
independent and dependent variable
Section B were asked about their demographic
profile
Nominal scale was used for demographic questions
in this study
According to Uma Sekaran, a nominal scales is one
that allows the researcher to assign subjects to
certain categories of group.

Nominal scale used for questions on race, gender,

and age.
Moreover, likert scale is used for other questions in
the questionnaire in section A.
The questions have 5 responses categories ranging
from strongly disagree to strongly agree and rank
from 1 to 5.

Variable

Items

Author

Remark

ENTERTAINMENT

a. Mobile Advertising

Jong

Adapt

contains a lot of excitement

and surprises
b. Mobile advertising is
enjoyable
c. Mobile advertising is fun to
use
d. Mobile advertising is
exciting

Hyuok
Jung
(2009)

Variable

Item

Author

Remark

INFORMATIVENESS

a. Mobile advertising makes

Jong

Adapt

product information
immediately accessible
b. Mobile advertising is a good
source of up-todate product
information
c. Mobile advertising is a
convenient source of
product information.
d. Mobile advertising provides
timely information

Hyuok
Jung
(2009)

Variable

Item

Author

Remark

IRRITATION

a. Mobile advertising is irritating

Jong

Adapt

b. Mobile advertising is annoying

c. Mobile advertising is confusing

Hyuok
Jung
(2009)

Variable

Item

Author

Remark

CREDIBILITY

a. I trust mobile advertising

Madawa

Adapt

b. Mobile advertising is believable

c. I feel satisfied with mobile
advertising
d. I would be happier to receive
mobile advertising from the
company I liked

Abeywickr
ama Jana
Vasickova
(2014)

Variable

Item

Author

Remark

DEPENDENT

a. I am willing to receive mobile

Marko

Adapt

VARIABLE

Customer
Acceptance

advertising in the future

b. I would read all the mobile
advertising messages I receive
in the future
c. Using mobile advertising fits
well with my life style
d. Receiving mobile advertising
provides me benefits
e. I feel posively about Mobile
Advertising

Merisavo

Variable

Item

Demographic

Gender

profile

Male

Author
Female

Race
Malay
Chinese
Indian
Others (Please Specify)
.
Age Group
21-24 years old
25-29 years old
Using Smart Phone?
Yes
No
Received mobile advertising before ?
Yes

Remark

Self
Designed

DATA COLLECTION

Method of data collection for this research will be

survey questionnaire
Questionnaire will be directly distributed to the
respondent in 2 selected universities in Penang
The questionnaire that had completed designed will
being pre-tested to determine the feasibility and
reliability of the questionnaire.
There are 10 respondents been selected to complete
the pilot test

DATA ANALYSIS

SPSS version 20

Frequency distribution

I.

Frequency distribution is a mathematical distribution

where the researcher tries to obtain and count the
number of responses associated with different values
of variables and expressed them in percentage term

. Reliability
I.

II.

Analysis

Reliability is a measure of the internal consistency of

a set of scale items
The more reliable a set of scale items, the more
confident the scores obtained from the administration
of the scale that is being tested


I.

II.

.
I.

Correlation Analysis
Correlation analysis is done to trace the mutual
influences of variables on one another, (Uma
Sekaran, 2003).
For this study will be using Pearson Coefficient
of Correlation to find out whether the variable
has positive relationship with one another
variable.
Multiple Regression Analysis
Regression analysis is a powerful and flexible
procedure for analyzing associative
relationships between a dependent variable and
one or more independent variables. (Uma
Sekeran 2003).