Factors Determining Consumer’s Behavioural Intention to Purchase Mobile

Content Services Advertising

By

LEE LEAN HUA

Research report in partial fulfilment of the requirements for the degree of Master of
Business Administration

UNIVERSITI SAINS MALAYSIA

2015

I
 ACKNOWLEDGEMET

Hereby, I would like to take this opportunity to express my deepest gratitude and

appreciation towards people who have helped me throughout these periods to complete

my MBA thesis successfully.

First of all, I am very grateful to have Associate Professor Dr. Nabsiah Abdul

Wahid to be my project management supervisor. I am highly indebted to my

supervisors for her patients, endeavours supports and good suggestions to guide me

throughout the course of completing this MBA thesis. Her spirits and experiences gave

me a good direction to conduct the study smoothly.

Besides that, I would like to thanks the office staffs and lecturers of the

Graduate School of Business from University Sains Malaysia for their dedication and

support. The research will not completed without their great assistance.

Lastly, I would like to express my appreciation and sincere gratitude to my

family who is always being so supportive and encouraging all the time. Without their

unconditional love and support, I won’t be able to complete my MBA studies in

University Sains Malaysia.

I
 TABLE OF CONTENTS

AKNOWLEDGEMENT ............................................................................................I
TABLE OF CONTENTS ......................................................................................... II
LIST OF TABLES .................................................................................................. VI
LIST OF FIGURES .............................................................................................. VII
LIST OF ABBREVIATIONS .............................................................................VIII
ABSTRACK (MALAY) .......................................................................................... IX
ABSTRACK ............................................................................................................. X

CHAPTER 1: INTRODUCTION ............................................................................. 1

1.1 Background of Study ............................................................................................. 1
1.2 Problem Statement ................................................................................................. 3
1.3 Research Objectives ............................................................................................... 6
1.4 Research Questions ................................................................................................ 7
1.5 Significance of study .............................................................................................. 8
1.6 Definition of Key Terms ........................................................................................ 9
1.6.1 Key Terms in Mobile Industry .................................................................... 9
1.6.2 Definition of Variables .............................................................................. 11
1.7 Structure of chapters ............................................................................................ 14
CHAPTER 2: LITERATURE REVIEW ............................................................... 15
2.1 Introduction .......................................................................................................... 15
2.2 Mobile Content Services ...................................................................................... 15
2.3 Mobile Advertising .............................................................................................. 17
2.4 Consumer Attitudes.............................................................................................. 19
2.5 Consumer Behaviour ............................................................................................ 20
2.6 Consumer Attitudes towards mobile content services ......................................... 21
2.7 Determinant Factors ............................................................................................. 23
2.7.1 Informativeness .......................................................................................... 23
2.7.2 Entertainment ............................................................................................. 24
2.7.3 Irritation ..................................................................................................... 24
2.7.4 Content Credibility .................................................................................... 25
2.8 Hypotheses Development..................................................................................... 32

II
 2.8.1 Informativeness and Consumers’ Attitudes ............................................... 32
2.8.2 Entertainment and Consumers’ Attitudes .................................................. 32
2.8.3 Irritation and Consumers’ Attitudes .......................................................... 33
2.8.4 Credibility and Consumers’ Attitudes ....................................................... 33
2.8.5 Informativeness and Consumer Behavioural Intention ............................. 33
2.8.6 Entertainment and Consumer Behavioural Intention................................. 34
2.8.7 Irritation and Consumer Behavioural Intention ......................................... 34
2.8.8 Content Credibility and Consumer Behavioural Intention ........................ 35
2.8.9 Consumers attitudes and Consumer Behavioural Intention ....................... 35
2.8.10 Mediation Effect of Consumers’ attitudes on Informativeness,
Entertainment, Irritation and content credibility, and consumer behavioural
intention ………………………………………………………………………...35
2.9 Summary .............................................................................................................. 37
CHAPTER 3: RESEARCH METHODOLOGY .................................................. 38
3.1 Introduction .......................................................................................................... 38
3.2 Research Design ................................................................................................... 38
3.3 Variables and Measurement ................................................................................. 39
3.4 Unit of Analysis ................................................................................................... 39
3.5 Population ............................................................................................................ 39
3.6 Sampling Technique............................................................................................. 40
3.6.1 Sampling Frame ......................................................................................... 41
3.6.2 Sample size ................................................................................................ 41
3.7 Procedure of Data Collection ............................................................................... 42
3.8 Survey Instrument ................................................................................................ 43
3.8.1 Questionnaire Construction ....................................................................... 43
3.9 Scale of Measures ................................................................................................ 44
3.10 Data Analysis ..................................................................................................... 46
3.10.1 Descriptive Analysis ................................................................................ 47
3.10.2 Factor Analysis ........................................................................................ 47
3.10.3 Construct Validity .................................................................................... 48
3.10.4 Convergent Validity................................................................................. 48
3.10.5 Discriminant Validity .............................................................................. 48
3.10.6 Reliability Analysis ................................................................................. 49
3.10.7 Goodness-of-fit Measures ........................................................................ 50

III
 3.10.8 Q2 Assessment ......................................................................................... 50
3.10.9 Mediation effect Assessment ................................................................... 50
3.10.10 Regression Analysis ............................................................................... 52
3.11 Summary ............................................................................................................ 53
CHAPTER 4: RESULTS......................................................................................... 54
4.1 Introduction .......................................................................................................... 54
4.2 Response Rate ...................................................................................................... 54
4.3 Respondents Qualifying Profile ........................................................................... 55
4.4 Respondents’ Background/ Profile ...................................................................... 56
4.5 Goodness of Measures ......................................................................................... 58
4.5.1 Construct Validity ...................................................................................... 60
4.5.2 Convergent Validity ................................................................................... 62
4.5.3 Discriminant Validity ................................................................................ 63
4.5.4 Reliability Test ........................................................................................... 64
4.5.5 Goodness-of-Fit Measures ......................................................................... 66
4.5.6 Q2 Measures (PLS Blindfolding Procedures) ............................................ 67
4.6 Descriptive Statistic Analysis .............................................................................. 71
4.6.1 Mean and Standard Deviation for All Scale Items .................................... 71
4.7 Hypothesis Testing ............................................................................................... 73
4.7.1 Mediation Testing Using Bootstrapping Procedure................................... 79
4.8 Summary of Findings ........................................................................................... 82
CHAPTER 5: DISCUSSION AND CONCLUSION............................................. 84
5.1 Introduction .......................................................................................................... 84
5.2 Recapitulation of the Study .................................................................................. 84
5.3 Discussion of the Major Findings ........................................................................ 86
5.3.1Informativeness and Consumers’ attitudes (Hypothesis: H1a) .................. 87
5.3.2 Entertainment and Consumers’ attitudes (Hypothesis: H1b) .................... 88
5.3.3 Irritation and Consumers’ attitudes (Hypothesis: H1c) ............................. 89
5.3.4 Content Credibility and Consumers’ attitudes (Hypothesis: H1d) ............ 90
5.3.5 Informativeness and Consumer behavioural intention (Hypothesis: H2a) 90
5.3.6 Entertainment and Consumer behavioural intention (Hypothesis: H2b) ... 91
5.3.7 Irritation and Consumer behavioural intention (Hypothesis: H2c) ........... 92
5.3.8 Content Credibility and Consumer behavioural intention (Hypothesis:
H2d)…… ............................................................................................................ 93

IV
 5.3.9 Consumers attitudes and Consumer Behavioural intention (Hypothesis:
H3)……… .......................................................................................................... 93
5.3.10 Mediation Effect of Consumers’ attitudes on Informativeness,
Entertainment, Irritation, content credibility and consumer behavioural intention
(Hypothesis: H4a, H4b, H4c and H4d) ............................................................... 95
5.4 Implications of Study ........................................................................................... 96
5.5 Limitations of Study............................................................................................. 98
5.6 Recommendations for Future Research ............................................................... 99
5.7 Conclusion ......................................................................................................... 100
REFERENCES ....................................................................................................... 102
APPENDIX A: QUESTIONNAIRE ..................................................................... 110
APPENDIX AII: ONLINE QUESTIONNAIRE ................................................. 115
Appendix B: Descriptive Analysis – Respondents Qualifying Profile ............... 124
Appendix CII: Descriptive Analysis – Mean and Standard Deviation (SPSS
output) ..................................................................................................................... 128
Appendix D: Main Loading and Cross Loadings (Smart PLS Output) ........... 130
Appendix E: Convergent Validity, Discriminant Validity and Reliability Test
(Smart PLS output) ................................................................................................ 132
Appendix F: Hypotheses Results (PLS Output) .................................................. 133

V
 LIST OF TABLES

Page

Table 2.1 Summary of Independent Variables 27

Table 2.2 Review of Past Literature 28

Table 2.3 Summary of Research Hypothesis 36

Table 3.1 Data Collection Method 42

Table 3.2 Summary of Variable Items 46

Table 4.1 Summary of Response Rate 55

Table 4.2 Respondents’ Qualifying Profile 55

Table 4.3 Respondents Demographic Background/ Profile 56

Table 4.4 Main Loading and Cross Loading (PLS) 60

Table 4.5 Convergent Validity Measures (PLS) 63

Table 4.6 Discriminant Validity Measures (PLS) 64

Table 4.7 Reliability Test Results (PLS) 65

Table 4.8 Goodness-of-Fit Index Results (PLS) 67

Table 4.9 Descriptive Analysis for Variables (SPSS) 72

Table 4.10 Summary of Model Contructs’ Result (PLS) 74

Table 4.11 Summary of Model Contructs’ Result (PLS) 79

Table 4.12 Mediating Effect and Hypothesis Testing 82

VI
 LIST OF FIGURES

Page

Conceptual model adapted from Generation Y

Figure 2.1 Attitudes towards Mobile Advertising: Impacts of 23

Modality and Culture (Wanmo Koo, B.S., 2010)

Figure 2.2 Theoretical Framework Model 31

Figure 3.1 Mediations’ Direct Effect and Indirect Effect 51

Reflective Research Model for Consumer’s

Figure 4.1 Behavioural Intention of Mobile Content Services 59

Advertising

Figure 4.2 Blindfolding of Consumer Attitudes (CA as DV) 69

Blindfolding of Consumer Behavioural Intention (CB

Figure 4.3 70
as DV)

Figure 4.4 Path Analysis Results 76

Figure 4.5 Bootstrapping Result 77

VII
 LIST OF ABBREVIATION

ACMA Australian Communication and Media Authority

ANOVA Analysis of Variance

AVE Average Variance Extracted

Β Beta

C Content Credibility

CA Consumers’ Attitudes

CAB Cognitive – Affective - Behaviour

CB Consumers’ Behavioral Intention

CR Composite Reliability

DV Dependent Variable

E Entertainment

GoF Goodness-of-fit

GSMA Groupe Speciale Mobiles

H Hypothesis

IN Informativeness

IR Irritation

MMS Multimedia Messaging Service

PLS Partial Least Square

PLS – SEM Partial Least Square – Structural Equation Modeling

SMS Short Messaging Service

WAP Wireless Application Protocol

VIII
 ABSTRAK (MALAY)

Kajian ini menyelidik sama ada informasi, hiburan, kerengsaan and kredibility

kandungan akan menpengaruhi niat dan tingkah laku pengguna untuk membeli

perkhidmatan kandungan mudah alih di Malaysia. Rangka kerja untuk kajian ini

adalah berdasarkan Kognitif-Kesan-Kelakuan (CAB). Partial Least Square (PLS) dan

Statistical Package for Social Sciences (SPSS) telah digunakan untuk menganalisis

data. Data dikumpul melalui soal selidik di mana terdapat 300 responden mengambil

bahagian dalam kajian ini. Penemuan menunjukkan bahawa informasi, hiburan dan

kredibiliti kandungan terhadap perkhidmatan kandungan mudah alih pengiklanan

mempunyai positif pengaruh kepada sikap dan tingkah laku pengguna. Selain itu, sikap

pengguna didapati untuk mempunyai kesan pengantara terhadap informasi-niat,

hiburan-niat dan kredibiliti-niat. Padahal, sifat-tingkah laku kerengsaan didapati tidak

mempunyai pengaruh ke atas niat pengguna terhadap perkhidmatan kandungan mudah

alih pengiklanan dan tingkah laku pengguna untuk membeli perkhidmatan kandungan

mudah alih. Niat Pengguna juga bukan kesan pengantara untuk kerengsaan. Hasil

kajian ini menunjukkan bahawa pengiklan dan agensi pengiklan perlu menggunakan

teknik yang betul untuk mempromosikan perkhidmatan kandungan mudah alih di

pasaran.

IX
 ABSTRACT

This study investigates the influence of informativeness, entertainment, irritation and

content credibility on consumers’ behavioural intention to purchase the mobile content

services in Malaysia. The Cognitive-Affect-Behaviour (CAB) theory was the

underlying theory in this study. Out of 274 data from survey questionnaires analysed

using Partial Least Square (PLS) and Statistical Package for Social Science (SPSS),

the findings showed that Informativeness, Entertainment and content credibility were

positively influence the consumers’ attitudes towards mobile content services

advertising and their behavioural intention to purchase the mobile content service.

Additionally, consumers’ attitudes towards mobile content advertising was found to

be mediator for the relationship between informativeness-intention, entertainment-

intention and content credibility-intention to purchase the mobile content services.

Irritation attributes was found to have no influence on consumers’ attitudes towards

mobile content services and on consumers’ behavioural intention to purchase the

mobile content services. Consumers’ attitudes towards mobile content services was

not the mediator for irritation. The findings of this study imply that advertisers and

advertising agencies need to apply correct advertising techniques to promote their

mobile content services in the market.

X
 CHAPTER 1: INTRODUCTION

1.1 Background of Study

The rapid changing of technology, has accelerating the speed of smartphones’

adoption and higher speed of mobile broadband networks are provided. This situation

has proven by the statistic indicated in GSMA mobile economy 2015 report where it

reported that there is a total of 3.6 billion unique mobile subscribers that have been

subscribed to mobile plan globally in 2014. This phenomenon will grow continuously

and has been anticipated that approximately one billion subscribers to be added by

2020 where the mobile phone penetration rate will be achieved approximately 60%

globally. Whereas, in Malaysia, Statistic has shown that mobile penetration has

achieved 40% where 47% Malaysians own at least 1 mobile phone. Besides that,

approximately 10 million of Malaysians have subscribed to the mobile 3G

subscriptions plan where allow them to access to the internet at anytime and anywhere.

Additionally, it was reported that more than 15million Malaysian are using 3G

subscription (MCMC, 2015). There is 65% of Malaysians are still using the feature

phone while 35% of them using smartphone. However, according to McCann

prediction (eCommerceMILO, 2014), feature phone will no longer ruling the Malaysia

market in future and it will be overtaken by smartphone by 2015. The anticipation

indicate that the adoption of smartphones will increase to 60% by 2015.

Currently, there are 4 main phone operators offering mobile phone services to the

users in Malaysia. Those operators consist of Maxis (13.26M subscribers), Digi

(11.69M subscribers), Celcom (12.28M subscribers) and Umobile (4M subscribers).

For the past few years, Maxis had been leading in the top position (Goh Thean Eu,

2015) of mobile operators market where it has the highest total mobile subscriber base.

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Recently, the total mobile subscribers of Maxis have been dropped dramatically due

to aggressive competition from Celcom and Digi. Celcom has overtaken the top

position in Q4 2014 with 34.8% of market share with 0.02% slightly higher compare

to Maxis (34.6%). However, in Q1 2015, Maxis has regained its lead in

telecommunication industry with the market share of 35.6% where followed by

Celcom 33% and Digi 31.4%.

In fact, these operators play an important role in mobile content services as relevant

service provider will collaborate with them to promote their mobile subscription

services. The service content provider is unable to launch their services if these

operators are not providing the short code. Furthermore, there is positive relationship

between the mobile subscribers and mobile adnetwork. It’s difficult for the marketers

to penetrate the mobile subscription market if low mobile phone subscribers or mobile

phone users available in that country. Mobile adnetwork could not supply the traffic

inventories if low population growth rate and mobile users rate in that country.

Meanwhile, Malaysia is considered as one of the top mobile subscription market in the

Southeast Asia. According to Buzz City (2015), Malaysia is one of the top traffic

inventories countries. There is 853.1M ad will be served where 46.69% is from Maxis,

23.84% from Celcom, 23.86% from Digi and 5.91% from Umobile. There is positive

relationship between telecommunication companies and mobile adnetwork where

higher inventories will be supplied to those top mobile subscribers companies.

In the fast changing and growing technology environment, Internet advertising has

now established itself as essential part of marketing mix. In United States, business

owners have spent on internet from $4.6 billion in 1999 increased to $16.9 billion in

2006 (IAB, 2014) and the trend are forecasted to grow strongly in future. Today, the

evolution of technology and increasing of internet usage has enable the users could

2
access the internet via mobile phone at anytime and anywhere. Moreover, the risen of

internet and mobile usage has bring huge revenue potential in mobile advertising

where it play an important role in promoting the mobile content services. In 2013,

there was $19.4bilion revenue gained in mobile advertising and it indicates the 92%

of growth rate compare to 2012. For instance, the clash of clans is one of the top games

of mobile content services. It is developed by Supercell in 2012 and is one of the top

promoted mobile apps in mobile application store nowadays. It’s ranked #2 of top

grossing game in the world while estimate of 61,000 users install the game in daily

basis (Think Game, 2015). It is initially advertised via Facebook channel, however, it

has started to expand its advertising method by airing the mobile games though US

television and Youtube. Although the advertising spending has costed the company

approximately $4.5M USD, however, Supercell is still willing to invest the money as

the clash of clans has brought the revenues of $1.8bn in 2014.

1.2 Problem Statement

Internet has been evolving rapidly and becoming an increasingly important tool for

marketing success. It helps the companies to conduct their business and obtain several

competitive advantages over its competition. Many companies have been observed to

apply integrated marketing strategies on which they have adopted both online and

offline business to strike a balance to meet their customers’ needs (Peter Yannopoulos,

2011). In addition to the Internet, the mobile phone has recently considered by

customers as significant and has since redefine the consumers’ experiences in many

aspects of their daily life. It also has created a range of new business opportunities and

services to business owners. While this provides the companies with opportunities,

they, for instance the mobile content services providers have to align their promotion

3
strategies with advertising agencies. Mainly, this is due to the fact that the digital

ecosystem has been evolving continuously. Any gap within the digital ecosystem

(advertisers, advertising agencies, mobile content services providers and publishers)

will disrupt the mobile content services advertising, and consequently, will affect

consumers’ experiences and business’s performances.

Smartphone today plays a very critical role as an important communication tool to

mobile users. It allows them to stay informed about every happenings in their daily

life. Most of the consumers will use their mobile phone to access to the service or

information pertaining to life important events. In 2014, the global statistic has shown

that 62% of use mobile phones to follow up the health information, 57% use mobile

phone to complete online banking transaction, 44% of them access to the information

about real-estate listing or searching appropriate housing place to live, 43% for career

hunting purposes, 40% to follow up on government-related information, 30% to access

to educational content and lastly 18% for job application. Hence, good mobile content

services able to allow mobile users to connect with important live event and thus

improve and facilitate the mobile user’s daily living.

Content can be defined as product or services that expressed through some

channels. The key point of content marketing is valuable (Josh Steimle, 2014) where

mobile content services provided should give values to the consumers. It is pointless

to deliver the content that is not consumers sought out and want to consume it. In this

study, the mobile content services might be supplied in many forms such as

information, news update, data, quizzes, joke, greeting, messages, ringtones,

wallpapers, logos and games. Currently, mobile content services are available in three

mediums which consist of short messaging service (SMS), multimedia messaging

services (MMS) and wireless application protocol (WAP). For example, service

4
provider could offer their content services in terms of mobile phone personalisation

(ringtones, java games, wallpapers and etc.), infotainment (sports news, gaming result,

updates, gossips and etc.), Communication (chat, share joke and etc.) and more. For

instance, clash of titans is developed by Supercell in 2012 and is one of the top

promoted mobile apps in mobile application store nowadays. It’s ranked #2 of top

grossing game in the world while estimate of 61,000 users install the game in daily

basis (Thinking game websites, 2015). According to Chris Chapman (ACMA, 2015),

mobile premium services have become famous methods of procuring information and

entertainment nowadays. These mobile content services have started to evolve and

become transparent models of mobile electronic payment. Eventually, consumers

could have wider range of purchase methods via accessing to their mobile phones. The

ultimate purpose of companies is to generate sales and profit. To ensure the business

sustainability, the service providers need to ensure there is strong connection between

customers and its products or services. Nowadays, marketing is one of the important

strategies that have been adopted in every company to promote the products or services

(Adeolu. Ayanwale, Taiw Alimi and Mattew Ayanbimipe, 2005). Whereby,

advertisement is one of the effective marketing method or tool to create the product or

services knowledge and awareness (Morden, 1991). To instil the brand image about

mobile content services in consumers’ mind, service providers must know what are

the potential products or services are sought by, thus, right contents or products can be

delivered to right audience (Latif et al, 2011). Nowadays, many advertisers are using

the “free to download” wording to attract the mobile users to download the application.

However, European Commission indicated that “free to download” is inappropriate to

be used in advertising as the mobile content might consist the unexpected costs from

in-app purchases. The terms of “free to download” might consist the misleading

5
elements to encourage the mobile users to download the content. Therefore, this study

is conducted to investigate the factors such as informativeness, entertainment,

irritation and content credibility to measure the consumers’ attitudes towards mobile

content services advertising and their consumers’ behavioural intention to purchase

the mobile content services. Consequently, consumers could be protected from the

financial harm from downloading unwanted mobile content services whereby it also

helps to protect the credibility of the stakeholders in mobile content services market

(Brendan Sinclair, 2014).

The study has through the literature review chapter identifies many studies that

investigate the determinant factors that influence the consumer attitudes and

behaviours towards mobile advertising (refer to table 2.1). Although some studies are

carried out locally emphasizing on consumers’ attitudes towards mobile advertising

(refer to table 2.1), however, there is no study found investigating factors that can

determine consumer’s behavioural intention to purchase mobile content services

advertising. Noting this gap, this study aims to examine selected determinant factors

such as informativeness, entertainment, irritation and content credibility of mobile

content services advertising and test their influence over consumers’ attitudes and

behavioural intention to purchase the mobile content services.

1.3 Research Objectives

This research aims to understand the consumer behavioural intention towards mobile

content services adverting. The research objectives consist of:

a) To investigate whether informativeness, entertainment, irritation and content

credibility influence consumers’ attitudes towards mobile content services

advertising.

6
 b) To investigate whether informativeness, entertainment, irritation and content

credibility influence consumers’ behavioural intention to purchase mobile

content services advertising.

c) To examine the relationship between consumers’ attitudes towards mobile

content services advertising and consumer behavioural intention to purchase

the mobile content services.

d) To measure the mediating role of consumers’ attitudes of mobile content

services advertising between informativeness, entertainment, irritation and

content credibility and consumer behavioural intention to purchase the mobile

content services.

1.4 Research Questions

The research questions in this study consist of:

a) Do the factors such as informativeness, entertainment, irritation and content

credibility influence consumers’ attitudes towards mobile content services

advertising?

b) Do the factors such as informativeness, entertainment, irritation and content

credibility influence consumer behavioural intention to purchase mobile

content services advertising?

c) Does the consumers’ attitudes of mobile content services advertising affect

their consumer behavioural intention to purchase mobile content services?

d) Does consumers’ attitudes of mobile content services advertising mediate the

relationship between informativeness, entertainment, irritation and content

credibility and consumer behavioural intention to purchase the mobile content

services?

7
1.5 Significance of study

Theoretically, this study contributes to the mobile users about the ideas and importance

about promotion of mobile content services via mobile marketing. Many mobile users

do not understand the purpose of mobile content services where it aim to supply the

information to ensure the consumers could access it at anytime and anywhere. The

mobile content services normally will be charged through their mobile bills. However,

these mobile users are not aware and understand mobile content services are in terms

of subscription services and will be charged at a time or continuously. Those charges

will be made either through postpaid bills or credit deduction from prepaid services.

Users who are not aware might misperceived the mobile content services is a scam.

Furthermore, ACMA (2015) revealed that users afraid that telecommunications

providers could not offered the same level of security and fraud protection guarantees.

Adding payments to mobile bills is similar to unlimited payment via credit card.

Through this study, mobile users could have better understanding the promotions

methods of mobile content services and able to decide whether they want to purchase

the services.

Apart from that, the explanation of determinant factors of mobile interactive

advertising will provide the different perspectives to user and marketers. This study

will explain the mobile advertising attributes that will be used by advertisers to create

consumer awareness about mobile content services. Different determinant factors will

lead to different consumers’ attitudes. Advertisers could avoid to use the determinant

factors that could negatively affect consumer attitudes and behavioural intention.

Through this study, we aim that both parties could have better insights and standpoints

about each other. The outcome of this study enable the advertisers to use the favourable

advertising attributes in order to drive positive consumer attitudes. It is because

8
different mobile interactive advertising could lead to different users’ perspective.

Marketers or advertisers could refer it and shed out some light to improve the mobile

advertising strategies in order to generate more business opportunities and drive the

positive consumer attitudes. Whereby, positive relationship will be driven between

users and mobile marketers as it helps the users to have deep understanding of mobile

content services via mobile advertising.

In addition, through this study, it aims to drive better consumer satisfaction and

increase the consumer reliability or trustworthiness towards the promotion of mobile

content services via mobile interactive advertising. Meanwhile, for users, they could

understand how the mobile content services will be promoted. Positive attitudes that

driven by the advertising attributes could lead to significant behavioural intention

where decide to subscribe the mobile content services under their wish. As a result,

the advertisers could reduce and improve their mobile content services brand image

and develop long term business sustainability in the future.

1.6 Definition of Key Terms

1.6.1 Key Terms in Mobile Industry

GSMA Mobile Economy

GSMA is known as Groupe Speciale Mobile which is formed by the

Confederation of European Posts and Telecommunications (CEPT). The purpose of

GSMA is to design a pan-European mobile technology Mobile Economy (GSMA,

2015).

9
 Short Messaging Service (SMS)

SMS is the abbreviation term of Short Messaging Service and is widely used

by the people around the world. It’s a store-and-forward communication system for

mobile phone (Bamba and Barnes, 2007, p. 815) where it allows users to send

alphanumeric message to others (Leung, 2007).

Multimedia Messaging Service (MMS)

Similar to SMS, MMS is one of the method to send a message from one people

to another via mobile phone. However, SMS only allows users to send alphanumeric

message to others while MMS able to send alphanumeric message, videos, images or

sounds to others.

Wireless Application Protocol (WAP)

WAP is defined as a set of communication protocols that allow the portable

devices such as mobile phones or personal digital assistant (PDA) to access to the

internet (Matskin and Tveir, 2001). The users could check their email, send instant

messaging or access to the mobile web browsers.

Australian Communication and Media Authority (ACMA)

ACMA is independent statutory authority which was formed in 2015. The

purpose of ACMA was formed is to ensure the Australians media and legislation,

related regulations, numerous derived standards and codes of practice operate

effectively and efficiently with consideration of public interests (ACMA, 2015).

10
 Mobile Premium Services

Mobile Premium Services are the payment and interactivity tools for digital

content. Furthermore, it does also consider as beginning point of more sophisticated

and transparent models of mobile payment services where consumers could purchase

their mobile content via telecommunication service providers instead of bank to

process payments (ACMA, 2015).

1.6.2 Definition of Variables

CAB Model

CAB model is formed by Cognition, Affect and Behavioural intention. Firstly,

the cognition can be defined as the beliefs or thoughts a people has about an attitude

object. Secondly, affect can be explained as emotional response or consumers’ feeling

has about an attitude object. Lastly, behavioural intention refer to intention of the

persons to react with regard to an attitude object. These 3 elements are interrelated and

emphasize consumers’ attitude of knowing, feeling and doing has about to certain

objects or situations.

Mobile Content Services

Mobile Content Services is defined as the mobile subscription contents which

might available in terms of information, news update, data, quizzes, joke, greetings,

messages, ringtones, wallpapers, logos and games where users may be offered free,

charged at a time or continuously according to or above the standard network charges

by the relevant service provider to consume the content services (MCMC, 2015).

11
 Mobile Advertising

Mobile Marketing Association (2009) defined Mobile advertising as the

mobile tools or networks that adopted by the organization to communicate or deliver

the relevant product or services message to their target audience. The key point of

mobile advertising is connecting people via the mobile phones (Tri Dinh Le and Bao-

Tran Ho Nguyen, 2014).

Informativeness

Informativeness can be defined as contents that consist of timely information

(Sevtap Ünal, Aysel Ercis, and Ercan Keser, 2011) useful information or beneficial

information (Wanmo Koo, B.S., 2010) to the users. Apart from that, the content shall

also be able provide good source of information, up-to-date information and supplies

relevant information (Tri Dinh Le and Bao-Tran Ho Nguyen, 2014) that is

understandable and usable to the users.

Entertainment

Entertainment refers to contents, products or services that are able to be

delivered to the target audiences in the forms of entertaining, pleasing, exciting and

fun to receive (Sevtap Ünal, Aysel Ercis, and Ercan Keser, 2011). On the other hand,

it helps the consumers to release or escape from emotional situation (Wanmo Koo,

B.S., 2010).

Irritation

Irritation could be described in the forms of the contents, products or services

that convey annoying and confusing message (Wanmo Koo, B.S., 2010). Moreover,

12
the users or consumers might perceive the contents, products or services are deceptive

(Wanmo Koo, B.S., 2010), manipulated and insulting to people’s intelligence (Sevtap

Ünal, Aysel Ercis, and Ercan Keser, 2011).

Content Credibility

Content can be defined as product or services that expressed through some

channels. The contents such as game, wallpaper, music, etc, can be delivered by using

the marketing techniques to distribute it in the forms of products or services to the

users. In this study, content credibility can be defined as truthful content delivered will

create correct consumers’ perception (Sevtap Ünal, Aysel Ercis, and Ercan Keser,

2011) and believability (Tri Dinh Le and Bao-Tran Ho Nguyen, 2014) about the

products or services itself.

Consumers’ Attitude

Attitude is the general assessment, evaluation or judgement a person has on

ideas, objects or people which might include oneself. Normally, attitude is lasting and

it might be formed or perceived by a person whether in positive or negative ways

(Solomon, 2013).

Consumer Behavioural Intention

Consumer Behavioural Intention can be defined as the consumers’ reaction

towards a specific products or services and it might be caused by the results of the

attitudes that consumers has on specific product and services (Solomon, 2013).

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 1.7 Structure of chapters

There is five chapters will be included in this study. In Chapter one, discussion about

the background of study, problem statements, research questions, research objectives

and key terms of definitions were presented. Followed by chapter two, literature

review such as theoretical foundation, review of past studies, theoretical framework

and hypotheses proposed that related to factors that determine consumer behavioural

intention to purchase mobile content services were presented. Next, in chapter three,

research methodology such as research design, sampling procedures and techniques,

data collection methods and data analysis were discussed. In chapter four, research

results such as statistical analysis, descriptive analysis, reliability analysis and

mediating effects analysis were presented. Lastly, the research findings, implications

of this study, limitation of this study, recommendations and conclusions were

presented in chapter five.

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 CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

In this chapter, it will review the past studies about theoretical foundation there the

researchers have adopted to form the hypotheses. This chapter begin with the

clarification of mobile content services, mobile advertising, consumers’ attitudes and

consumers’ behavioural intention. The Cognitive-Affect-Behaviour (CAB) theory is

explained through and followed by the explanation of the essential consumers’

attitudes towards mobile content services advertising. Besides that, determinant factors

of mobile content advertising will be discussed after that. Lastly, research framework

will be highlighted and research hypotheses will be developed according to past studies.

2.2 Mobile Content Services

Content can be defined as product or services that expressed through some channels.

On the other hand, content marketing is also defined as the marketing techniques that

have been adopted to create, distribute the value to specific product or services. The

contents of the products or services must be relevant and consistent where it able to

indulge the targeted audience and thus driving profitable customer action (Josh Steimle,

2014). Furthermore, the key point of content marketing is valuable (Josh Steimle, 2014)

where mobile content services provided should give values to the consumers. It is

pointless to deliver the content that is not consumers sought out and want to consume

it.

In July 2010, Mandatory Standards has acknowledged for the provision of

mobile content services. Users may be charged according to or above the standard

network charges by the relevant service provider if they have subscribed to the mobile

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content service. The mobile subscription contents might be supplied in the forms of

information, news update, data, quizzes, joke, greeting, messages, ringtones,

wallpapers, logos and games. Currently, mobile content services are available in three

mediums which consist of short messaging service (SMS), multimedia messaging

services (MMS) and wireless application protocol (WAP). For example, service

provider could offer their content services in terms of mobile phone personalisation

(ringtones, java games, wallpapers and etc.), infotainment (sports news, gaming result,

updates, gossips and etc.), Communication (chat, share joke and etc.) and more.

To deliver their content, service providers need to obtain the short code from

operators in order to launch their content. Normally, there are 3 types of short code

will be available. First type of short code will be the 2-series short code. It is applied

for cellular network operator’s own services. Second type of short code will be 3 series

short code for premium services assigned by cellular network operators such as Maxis,

Digi, Celcom and Umobile to mobile content service providers. Lastly will be the 6-

series short code that is applied to corporate and bulk services. Once users have

subscribed the content services, they will either offered free to use the content or

otherwise will get charged via deduction from prepaid credit or charged to their

postpaid bill. The payment term is relied on the method of mobile service provider has

offered. The charges will be either charged at one time or continuously billed until

subscriber send the keyword “STOP” or “BATAL” to terminate the services.

According to Chris Chapman (ACMA, 2015), mobile premium services has

become famous methods of procuring information and entertainment nowadays. These

mobile content services has started to evolve and become transparent models of mobile

electronic payment. Eventually, consumers could have wider range of purchase

methods via accessing to their mobile phones. The ultimate purpose of companies is

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to generate sales and profit. To ensure the business sustainability, the service providers

need to ensure there is strong connection between customers and its products or

services. Nowadays, marketing is one of the important strategies that have been

adopted in every companies to promote the products or services (Adeolu. Ayanwale,

Taiw Alimi and Mattew Ayanbimipe, 2005). Whereby, advertisements is one of the

effective marketing method or tool to create the product or services knowledge and

awareness (Morden, 1991). To instil the brand image about mobile content services in

consumers’ mind, service providers must know what are the potential products or

services are sought by, thus, right contents or products can be delivered to right

audience (Latif et al, 2011). In previous studies, many researchers have proven that

most of the consumers’ attitudes have significant impact on mobile advertising.

Therefore, what make this study difference is aim to determine the factors of

consumers’ attitudes will have significant impact on mobile content services

advertising.

2.3 Mobile Advertising

Advertising is considered as mass-communication tool that customize a message of

products or services and will help to deliver the product message to people with

cheaper cost (Etzel et al., 1997). The evolution of mobile phones and rapid

development in technology has enable the advertisers to begin promoting their product

via mobile phone which known as mobile advertising at nowadays. Actually, the key

point of mobile advertising is mobile phones. Carter (2008) explained mobile

advertising is the intention of sellers to bring the attention from buyers to have

mutually exchange advantages or transfer of goods via the systematic planning,

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controlling and implementing processes. On the other hand, Altuna and Konuk (2009)

defined mobile advertising as delivering the product or services content to intended

customers via the WAP technology.

In Southeast Asia, display advertising and search advertising are the popular

mobile advertising method being adopted by advertisers. Traditionally, display

advertising is defined as different forms of print advertising which consist of direct

mail brochures, magazine and newspaper ads which can be shown on any page

throughout a publication (Rick Suttle, 2009). However, online display advertising was

referred as banner ads which is a “basic image or flashy display ads” (Appnexus, 2015)

that is used to promote the online content in order to attract customers. Next, search

advertising also known as search engine advertising. Search engine advertising is

shown when sponsored ads tailored with users search result. It’s very crucial for the

advertisers to write a good targeted text ads in order to attract potential customers

(Arifa Raufi, Bijoux Niwemutoni, Chiara Derksen and Wiebke Kasper, 2015). The

mobile advertising is very helpful tool to communicate with customers which able to

enhance customer relationship and greater promotional activities result (Okazaki,

2005b)

Many players are involved in mobile advertising. These players consist of

advertising agencies, affiliate networks, publishers and users (Bauer et al., 2005;

Barnes & Scornavacca, 2008; Wilska, 2003) who will play the responsibility role as

distributors who help to design the advertising campaigns and promote the campaigns

through mobile web or mobile app. These agencies need the help from mobile web or

app publishers to place the advertisements to reach out their mobile users who will be

the potential customers of their brands (Bauer et al., 2005; Wilska, 2003).

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2.4 Consumer Attitudes

According to Lars Perner (2010), consumer attitudes are combinations of consumer’s

belief about, feelings about and behavioural intention toward some object within in the

context of marketing. These 3 components are highly interdependent and will become

the representing forces to affect the consumer to react to the object when these

components are combined together. Firstly, author (Lars Perner, 2010) explained that

beliefs is really important to define consumer attitudes. Consumer could have negative

or positive beliefs or impressions towards a product or service. Meanwhile, consumer

may hold many beliefs where it could be vary across different consumers. It may be

difficult to determine which is bottom line of consumer decision. Secondly, different

consumers might hold different feelings to certain objects or situations. Those feelings

might be affected by their feelings at sometimes. Lastly, consumers may have certain

behavioural intention where they have made their plan or decision to do with. As a

result, this behavioural intention sometimes would be affected by their belief or in

other circumstances.

On the other hand, Solomon (2013) has also defined that attitudes is a general

evaluation of a people (which including oneself), objects, issues or advertisements.

According to Solomon (2013), it has indicated that many researchers has agreed that

an attitude is formed by three components which consist of Affect (A), Behaviour (B)

and Cognition (C). According to them, attitude “refers to the way a consumer feels

about an attitude object” while behaviour “involves the person’s intention to do

something with regard to an attitude” and lastly cognition “refers to beliefs a consumer

has about an attitude object”. These three components are interrelated where it

revealed what are consumer knowing, feeling and doing. Different hierarchies of these

components will lead to different effects. There are three hierarchies model which

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known as CAB, CBA and ABC. The CAB model refers to Attitude based on cognitive

information processing, CBA model refers to attitude based on behavioural learning

process and lastly ABC model refers to attitude based on hedonic consumption.

In this study, we will be focusing at CAB model where consumer’ beliefs has

about an object will affect their thinking or feeling and thus will lead to consumer

behavioural intention and actions.

2.5 Consumer Behaviour

Pratyush Tripathi and Satish Kr. Singh (2012) had defined the consumer behaviour as

consuming actions of good and services by individuals. Consumer behaviour has been

formed by consuming processes where consumers or individuals choose the products

or services based on previous experiences or ideas. Additionally, it is also the

considered as the consumer decision making process where consumer able to decide

to purchase the goods and services at anytime and anywhere. Besides that, according

to Malhotra & McCort (2001), consumer behaviour is formed together with intention.

The beliefs of individuals will have impact on consumer mental plan or attitudes to act

or behave in certain behaviour.

On the other hand, behaviour intention is the engagement of consumer into

specific behaviour is highly relied on the result of individual attitudes (Fishbein &

Ajzen, 1980). Actually, the original Fishbein model is to measure a consumer’s

attitude towards a product. This model has been revised and is known as theory of

reasoned action. There are three modifications in this model. The purpose of theory of

reasoned action is to evaluate the consumer’s behavioural intention which aim to

recognize the uncontrollable factors that restrain the prediction of actual behaviour.

Furthermore, it does consider the power of people which able to influence people

20
behaviour. Many of people might doubted on their preferences. They might think that

what others would like to do is more relevant than their individual preferences

(Solomon, 2013). In previous studies, the determinants factors that are significantly

influenced the consumers’ attitudes toward apparel advertising will positively

influence the behavioural intention as well (Wanmo Koo, B.S., 2010). Consequently,

relationship between attitudes towards mobile content services advertising and

consumers’ behavioural intention will be evaluated in this study as well.

2.6 Consumer Attitudes towards mobile content services

Solomon (2013) have defined that advertising play an important role to influence the

consumers’ over and above feeling about a product, evaluation of a product and

reaction to a product. Meanwhile, the authors has also explained that “the attitudes

toward the advertisement is the predisposition to respond in a favourable or

unfavourable to a particular advertising stimulus during a particular occasion”.

Generally, the determinant of advertisements could be evaluated via the attitudes of

viewer towards the advertiser, evaluations of the ad execution itself, the mood evoked

by an ad and the degree to which the ad affects viewers’ arousal levels. Eventually,

these determinants can generate different consumers feeling which can have a direct

impact of brand attitudes (Solomon, 2013)

According to Heinonen (2011), it is vital for the companies to understand the

factors that will impact on consumer attitudes as consumers have started to create the

content and share their opinions about brands through social media. Furthermore, Cox

(2010) also defined that consumers were more favourable to the positive attributes of

online advertising format. Whereby, in Tri Dinh Le and Bao-Tran Ho Nguyen (2014)

21
study, the researchers found that most of the mobile users hold moderate and show

positive attitudes in mobile advertising. Despite of this, most of the mobile users

perceived that mobile advertising has helped to gain the information and awareness

about the product. In addition, another study which conducted by Wanmo Koo, B.S.

(2010) also found out that determinants factors below had significantly affect the

consumer attitudes towards mobile advertising and positively impact on behavioural

intention as well.

Table 2.1 displayed the review of previous studies. In previous studies, the

researchers have highlighted different factors forms of advertising attributes and other

various factors that could lead to different consumer attitudes and behaviours. In this

study, determinant factors will adapt the conceptual theory as indicated in figure 2.1.

This study has applied the similar advertising attributes concept to examine consumer

attitudes to measure the consumers’ attitudes and behavioural intention. Additionally,

the difference and purpose of in this study is to examine the determinant factors of

mobile advertising on consumer’s attitudes towards mobile content services

advertising in Malaysia instead of consumer’s attitudes to mobile advertising.

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Figure 2.1: Conceptual model adapted from Generation Y Attitudes towards Mobile

Advertising: Impacts of Modality and Culture (Wanmo Koo, B.S., 2010)

2.7 Determinant Factors

2.7.1 Informativeness

According to Ducoff (1996), he has defined Informative a condition of

providing useful or interesting information. Additionally, Bracket & Carr (2001)

indicated that informativenes should consist of providing good source of product

information and owning the ability to provide relevant and up-to-date information.

Generally, researchers found that informative advertising will drive the positive

influence on consumers’ attitudes (Tsang et al., 2004). Furthermore, Siau and Shen

(2003) found that quality features of mobile advertising content which consist of

accurate information, timely and useful information should delivered to consumers.

Besides that, Okazaki (2005a) found that positive attributes toward web advertising

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will be generated if web providers able supply certain degree of supportive and

practical information to the users. The quality of companies’ web-pages will be the

major determinant factors that influence the consumers’ mindset or perceived value

about the companies and their goods and services, and mobile advertising (Haghirian

et al., 2005)

2.7.2 Entertainment

Xu (2007) has defined entertainment as the enjoyment of message.

Entertainment is one of the essential factors to determine the consumer attitudes

towards mobile marketing. In previous studies, researchers found out that

entertainment which consist of fun and joy elements will lead to positive feelings or

emotions influences on consumer attitudes (Hoffman & Novak, 1996). Life is not a

bed of roses. Many people is living in a high stressful life nowadays. Entertainment

that built on many foundations such as sense of humour, sympathy or love could

become certain contribution to consumers to help them relieve their stressful life (Tri

Dinh Le and Bao-Tran Ho Nguyen, 2014). In addition, Ozaki (2005a) defined the

consumers pleasant and amusement perception could be generated through the use of

media. Entertainment could be delivered in the forms of commercial messages that

lead to positive feelings from consumers whereby overall of consumers’ attitudes will

be influenced by entertaining advertisement (Shavitt Lowrey, and Haefner, 1998).

2.7.3 Irritation

Irritate is defined as the emotion or stimulation of angry, impatient, discontent

or upset (Ducoff, 1996). According to Asker & Bruzzone (1985), the researchers

24