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The Impact of SMS, MMS and Mobile Banner

Advertising Format on Consumer Attitude Towards

Advertising and Products

Master thesis author: Siyu Wu (11585641)

Under the supervision of: Supervisor: Nayak, Abhishek

MSc. in Business Administration-Marketing Track Amsterdam Business School

University of Amsterdam

Key words: Mobile Ads, Mobile Ad Format, Consumer Attitude 22 June 2018

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ABSTRACT

The high penetration of mobile phones contributes to the growth of mobile marketing. Many marketers choose to deliver commercial information to consumers by mobile phone (Chowdhury et al. 2006). Therefore, how to improve mobile ad effectiveness becomes important. Mobile Banner advertising format, SMS and MMS advertising format are frequently used by marketers (Chen and Hsieh 2012). However, there is no article studying the effects of these three mobile ad formats on consumer attitude towards advertising and products. Therefore, this paper looks into the research question (s): What is the impact of SMS, MMS, mobile Banner advertising format on consumer attitude towards the advertising? And what is the impact of SMS, MMS, mobile Banner advertising format on consumer attitude towards advertised products?

A 3 (mobile ad format: SMS, MMS, Banner) x 2 (product type: utilitarian, hedonic) between-subjects experiment is conducted online via Qualtrics. A key finding is that in terms of hedonic products, MMS ad format generates the most positive consumer attitude towards the ad and the advertised products. SMS ad generates the least positive consumer attitude towards the ad and the advertised products when it comes to hedonic products. However, when it comes to utilitarian products, consumer attitude is more positive towards SMS ad than MMS and Banner ad format. Furthermore, there is no significant difference between the impact of MMS and mobile Banner ad on consumer attitude towards the ad when utilitarian products are advertised. For an academic perspective, this research finds that there exist interaction effects between mobile ad format and product type on consumer attitude towards the ad and the advertised products. From a managerial perspective, this research provides insights for marketers to know how to combine proper advertising format and product type and develop effective marketing strategies.

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Table of Contents

1. INTRODUCTION ... 6

1.1 Background ...6

1.2 Define the gap ...7

1.3 Methodological method ...8

1.4 Contributions ...9

2. LITERATURE REVIEW ... 11

2.1 Mobile advertising ...11

2.2.1 Mobile advertising formats ...12

2.2 Consumer attitude ...13

2.2.1 Consumer attitude towards advertised product ...14

2.2.2 Consumer attitude towards advertising ...14

2.3 Product type (Hedonic vs. Utilitarian) ...15

2.4 Congruity theory ...16

2.5 Define the gap and research question ...16

3. CONCEPTUAL FRAMEWORK AND HYPOTHESES ... 21

3.1 Conceptual framework ...21 3.2 Hypotheses ...21 4. METHODOLOGY ... 29 4.1 Procedure ...29 4.2 Measurement ...33 4.3 Sample ...35 5. RESULTS ... 36 5.1 Data Preparation ...36 5.2 Reliability Analysis ...37

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5.3 Correlations ...37

5.4 Testing of Hypothesis ...38

5.4.1 Two-Way Factorial ANOVA analysis: Model One ...39

5.4.2 Two-Way Factorial ANOVA analysis: Model Two ...43

5.5 Overview of hypotheses...46

6. CONCLUSION AND DISCUSSION ... 48

6.1 Conclusion ...48

6.2 Discussion ...49

7. IMPLICATIONS FOR RESEARCH ... 52

8. IMPLICATIONS FOR PRACTICE ... 53

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1. INTRODUCTION

1.1 Background

Mobile technologies usage has increased significantly due to recent technological advances

(Kuss et al. 2018). In UK, around 93% of the population have a smartphone in 2016, and users

spend approximately 20 hours per week on their phone (Ofcom 2016). According to Fernandez

(2000), more than 80% of the population have a mobile phone in Hong Kong in 2000. In 2016,

adults in India spend average 4 hours per day on mobile phones (eMarketer 2017). The high

penetration of mobile phones contributes to the growth of mobile marketing. Many marketers

choose to deliver commercial information to consumers by mobile phone (Chowdhury et al.

2006). In 2014, mobile advertising spending has increased to more than $20 billion in the

United States (eMarketer 2015).

However, around 43% of marketing managers report that they are not satisfied with their efforts

on mobile advertising effectiveness (Yang 2011). Around 40% of mobile advertising clicks are

useless (Kim 2012). Therefore, knowing how to enhance mobile advertising effectiveness

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advertised products could be one way to enhance mobile advertising effectiveness (Vakratsas

& Ambler 1999).

1.2 Define the gap

Prior articles have already studied several factors that could improve mobile advertising

effectiveness. For example, people in crowded trains are more likely to buy the advertised

products than in non-crowded trains (Andrews et al. 2016). Furthermore, customer responses

could also be improved by geographical targeting (Rajala and Westerlund 2010). Only Bart et

al (2014) focus on advertising format and find that mobile display advertising has a positive

effect on consumer attitude towards products which are both utilitarian and higher involvement.

Mobile Banner advertising format, SMS and MMS advertising format are frequently used by

marketers (Chen and Hsieh 2012). However, there is no article studying the effects of these

three mobile ad formats on consumer attitude towards advertising and products. Moreover,

consumer attitudes toward TV ads and magazine ads are revealed to be different (Soo and Chia

2007), which means consumer attitude could be influence by the advertising formats. Therefore,

consumer attitude towards advertising and products is probably influenced by mobile

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mobile Banner advertising format on consumer attitude towards advertising and products. Thus,

the paper aims to answer these two questions: (RQ1) What is the impact of SMS, MMS, mobile

Banner advertising format on consumer attitude towards advertising? (RQ2) What is the

impact of SMS, MMS, mobile Banner advertising format on consumer attitude towards

advertised products?

1.3 Methodological method

A 3 (mobile ad format: SMS, MMS, Banner) x 2 (product type: hedonic, utilitarian)

between-subjects experiment is conducted online via Qualtrics to measure the impact of SMS, MMS

and mobile Banner advertising format on consumer attitude towards advertising and the

advertised products. Around one thousand and two hundred respondents are involved in the

experiment and each respondent would be shown utilitarian and hedonic products advertised

in SMS, MMS and mobile Banner ad formats via Qualtrics. Respondents are asked to fill in a

liking or annoying scale towards the advertising and the advertised products. There are two

dependent variables needed to measure, which are consumer attitude towards advertising and

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Consumer attitude towards the products would be measured by the means of liking scale of

consumer attitude towards the products and the purchase intensions towards the products. A

seven-point Likert scale is used to measure how favorable consumers’ attitudes are towards the

products and purchase intension. After data collection, SPSS is conducted for data analysis.

1.4 Contributions

For an academic perspective, this research could contribute to the existing literatures. Firstly,

it proves the impact of mobile advertising formats on consumer attitude towards advertising as

well as the advertised products, which are not sufficiently studied. It deepens the knowledge

that mobile advertising effectiveness could be improved by advertising formats. Secondly, the

research also finds that there exist interaction effects between mobile ad format and product

type on consumer attitude towards the ad and the advertised products, which also has not been

studied by existing literatures.

From a managerial perspective, this research provides insights for marketers on mobile

advertising effectiveness and helps them to develop more effective mobile marketing strategies.

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mobile ad format could improve the effectiveness of advertisement. Consumer would generate

more positive attitude towards this ad and the products. As a result, brand awareness would be

improved.

The next section is organized as follows: Firstly, prior literatures would be reviewed to define

some key concept. And then, research gap as well as research questions will be defined to

explain why to choose this topic. Next, a conceptual framework is developed to measure the

impact of SMS, MMS and mobile Banner advertising on consumer attitude towards ad and

advertised products. After that, method and data part will elaborate how this research is

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2. LITERATURE REVIEW

The article aims to study the impact of SMS, MMS and mobile Banner advertising on consumer

attitude towards the advertising and the advertised products. Therefore, the concepts of mobile

advertising and consumer attitude will be explained first to make this sentence clearly

understood. The congruity theory which is used to explain the impact of mobile ad format on

consumer attitude towards the ad and the advertised products would also be introduced in this

part. Finally, the research gap and research question would be elaborated.

2.1 Mobile advertising

Many scholars have defined mobile advertising. For example, mobile advertising is defined as

one kind of advertising that delivers advertising to consumers by mobile phones (Mobile

Marketing Association 2003). Tripathi and Siddigui (2008) also raise a similar mobile

advertising definition as a type of advertising targeting the users of mobile phones. One of the

advantages of mobile advertising is that it could affect users immediately (Mobile Marketing

Association 2003). Mobile advertising could be categorized on the level of interaction with

consumers, such as permission-based advertising and location-based advertising (Zoller et al.

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consumers are willing to receive this ad (Zoller et al., 2001). Location-based advertising refers

to sending the message to consumers in real time based on the location of consumers (Zoller

et al., 2001). Mobile advertising has also been classified into six formats: branded mobile

websites, mobile display advertising (MDA), Short Message Service (SMS), spot adverts

around mobile TV and video, branded applications and bar codes (Zollar and Oliver 2011).

However, there are only three types of mobile adverting used by marketers frequently, which

are Short Message Service (SMS), Multimedia Message Service (MMS) and mobile Banner

ad (Chen and Hsieh 2012). 2.2.1 Mobile advertising formats

SMS text messages are in text format sent to consumers’ mobile phones and each message can

only contain 160 characters (Chen and Hsieh 2012). Marketers could use SMS technology to

promote goods and messages could be sent to consumers directly (Sultan et al. 2009). There

exist some limitations of SMS ad, such as irritating and an invasion of privacy (Watson et al.

2013). However, Jelassi and Enders (2004) mention that marketers still regard SMS ad as

attractive because SMS ad has higher response rates than banner ads and email. The recall of

SMS is also higher than other mobile ad formats (Fortin 2000). Furthermore, younger

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of SMS, which could contain, video clips, audio clips and text (Gang et al 2005). Mobile banner

advertisements are displayed as small banner images at the top or bottom of smart phone’s

screen or in a web browser (Bart et al 2014). Mobile banner ad usually contains minimal

information such as a slogan or a very short message. Marketers could use Banner ad to make

many people know their brand name and products (Bart et al 2014). Among these three mobile

advertising forms, mobile banner ad is the most popular one that used by marketers (Zolloer

and Oliver 2011).

2.2 Consumer attitude

Consumer attitude is an important concept in marketing research because it could be a

predisposition to behave (Andrew A. Mitchell and Jerry C. Olson 1981). There are quite a few

literatures about the consumer attitudes concepts. Aaker et al (1995) defines consumer attitudes

as mental states used by consumers to guide the way they respond to the environment. An

attitude also could be a person’s emotional feelings, enduring favorable or unfavorable

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2.2.1 Consumer attitude towards advertised product

Vakratsas er al. (1999) use two methods to measure consumer attitude towards products. The

first is to see how favorable consumers’ attitudes are towards the products. The second one is

to see the purchase intentions of consumers towards the products. The final purpose of

delivering an advertisement is purchase intension (Xu et al. 2009). Huarng et al. (2010) defines

purchase intension as the process by which consumers decide to buy a product. It is considered

as an important factor in advertising impact assessment (Brown et al., 2003). Therefore,

purchase intension could be an important dependent variable to assess the mobile advertising

effectiveness.

2.2.2 Consumer attitude towards advertising

In the early survey, consumer attitude towards advertising is generally positive because many

respondents think advertising is informative (Gallup 1959). However, Alwitt and Probhaker

(1994) found evidence of unfavorable consumer attitudes toward advertising after 1970. Many

consumers ignore advertising impatiently because they feel they are interrupted (Barnes 2002).

However, there exist some factors that can positively impact consumer attitude towards

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consumers, their attitudes toward advertising would become positive. Consumer attitudes

toward advertising could be likeable, enjoyable, annoying etc. (Bauer and Greyser 1968).

Attitude towards advertising is also defined as a tendency to react in a favorable or unfavorable

way to advertising (Lutz 1985). Therefore, consumer attitude towards the ad is measured the

degree of liking of consumers towards advertising in this research.

2.3 Product type (Hedonic vs. Utilitarian)

In general, product type can be divided into hedonic product and utilitarian product. According

to Bhat and Reddy (1998), products which are needed by consumers could be either hedonic

or functional. Most consumers consume hedonic products for sensory pleasure, and utilitarian

products deliver functional benefits (Woods 1960). According to congruity theory, hedonic

appeals would be more effective than utilitarian appeals if the product considered as hedonic

instead of utilitarian (Sirgy 1982). Moreover, Marko et al. (2007) also mention that mobile

advertising works differently for different products. Therefore, product type may have

moderating effect on the relationship between mobile ad format and consumer attitude towards

ad. It may also have moderating effect on the relationship between mobile ad format and

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2.4 Congruity theory

The congruity theory provided by Sirgy (1982) is used to explain the impact of mobile ad

format on consumer attitude towards the ad and the advertised products. Sirgy (1982) finds that

advertising effectiveness could be improved if the nature of the appeal is consistent with

product type. To be more specific, hedonic appeals are more effective when the products are

regarded as hedonic (Sirgy 1982). Conversely, utilitarian appeals would be more effective

when the products are considered as utilitarian (Sirgy 1982).

Moreover, pictures are considered as more hedonic and aesthetic than words (Hirschman,

1986). This claim is based on the format instead of the content (Hirschman, 1986). Therefore,

the use of pictures may be more effective than the use of words for hedonic product. Conversely,

the use of words may be more effective than the use of pictures for utilitarian product.

2.5 Define the gap and research question

Many existing articles focus on the factors that could influence the consumer attitudes towards

advertising. Some articles study the impact of environmental context on consumer attitude

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apps could offer consumers relevant information, such as price comparisons across stores,

which could positively influence consumer attitude towards mobile advertising. Feng, Fu, and

Qin (2016) also consider both environmental and consumer-related context as the determinants

of consumers’ responses towards mobile advertising. Extrinsic (i.e., timeliness, personalization,

and localization) and intrinsic (i.e., consumer innovativeness and perceived enjoyment)

motivations have positive effects on consumer attitudes (Feng, Fu, and Qin 2016).

Crowdedness is also an important environmental factor, which affects mobile advertising

response (Andrews et al. 2016). People would spend more time on browsing on the phone when

they are in a crowded subway environment (Andrews et al. 2016). Technology is also an

important factor identified by many authors. Rajala and Westerlund (2010) mention that

technology, such as global positioning system (GPS) enables marketing professionals to target

consumers by their locations. Customer responses could be improved by geographical targeting

(Rajala and Westerlund 2010). Chung, Rust, and Wedel (2009) also emphasize the importance

of technology on consumer responses. Mobile technology could allow marketers to

communicate with consumers through messages at the optimal moment (Chung, Rust, and

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attitude towards mobile advertising. For example, perceived value, perceived usefulness, and

satisfaction are significant drivers of consumer loyalty towards mobile advertising (Hsiao and

Chang 2014). Yang (2011) finds that consumer adoption behavior of mobile advertising could

also be influenced by cultural dimensions. To be specific, consumers with strong individualism

are more likely to use mobile SMS advertising (Yang 2011). Personalized mobile

advertisement provides detailed product information that attracts consumers, such as

promotion activity and brand information (Chen and Hsieh 2012). Furthermore, some authors

also find some audience factors, which could influence the consumer attitude on ad. For

example, involvement could determine consumer attitude on ad (Celsi & Olson, 1988). If

consumers actively involved with a persuasive message, they would be likely to consider all

information contained in the ad and generate positive attitude on this ad (Cacioppo & Petty,

1983).

However, few articles study the impact of mobile advertising formats on consumers attitudes

towards advertising. Only one literature finds that products which are both utilitarian and

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not the only mobile advertising format used by marketers. SMS and MMS mobile advertising

are also worth studying because they are frequently used by marketers. Furthermore, consumer

attitudes toward TV ads and magazine ads are revealed to be different (Soo and Chia 2007),

which means consumer attitude towards advertising could be influence by the advertising

formats. Therefore, the thesis is going to find whether mobile advertising format has impact on

consumer attitude towards the advertising. As a result, the research question of this article is

as follows:

(RQ1) What is the impact of SMS, MMS, mobile Banner advertising format on consumer

attitude towards advertising?

Furthermore, many existing articles have found factors that have effect on consumer attitude

towards the advertised products. For example, when ad messages are sent to consumers at a

convenient location, consumers think that less effort would be needed to purchase the

advertising product (Fan-Chen Tseng 2011). Therefore, they would generate positive attitude

towards this product. Product attitude is positively related to content relevance and delivery

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important factor which could improve purchase intentions of consumers (DeAnna 1999).

Consumer attitude on products could also be affected by WOM communication (Shavitt 1994).

However, there is no article studies the impact of mobile advertising format on consumer

attitude towards the advertised products. Therefore, the thesis is going to find whether mobile

advertising format has impact on consumer attitude towards the advertised product. As a result,

the research question of this article is as follows:

(RQ2) What is the impact of SMS, MMS, mobile Banner advertising format on consumer

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3. CONCEPTUAL FRAMEWORK AND HYPOTHESES

In this part, the relationships and effects between subjects would be demonstrated by a

conceptual model. Then hypotheses are introduced and stated.

3.1 Conceptual framework

The following conceptual framework demonstrates the relationship between subjects.

3.2 Hypotheses

Consumer attitudes toward an advertisement are positively related to the content relevance of

the advertisement (Varnali 2014). High content relevance of an advertisement means it matches

consumers’ preference (Zhou. J et al 2011). Therefore, consumer attitudes toward mobile ad

message could be positive if this ad message is relevant and matches consumers’ interests

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(Varnali 2014). For example, the visual and text-based aspects should be designed to be

consistent with cognitive styles of the consumers (Varnali 2014). However, SMS mobile ad

format has graphical limitations (Catherine. W et al. 2004). It is difficult to design an attractive

text message with only 160 characters (Catherine. W et al 2004). MMS mobile ad format

includes visual elements, like a picture or video (Catherine. W et al. 2004). Therefore, MMS

ad seems more likely to be designed attractively than SMS ad. Furthermore, ads which involve

both photographs and text could convey additional information and strengthen memory relative

to ads which only contain text (Mayer 2001). To conclude, MMS mobile ad are more likely to

attract greater consumer attention than SMS mobile ad (Goodrich, 2011).

Furthermore, according to congruity theory, hedonic appeals would be more effective than

utilitarian appeals if the product is perceived as hedonic instead of utilitarian (Sirgy 1982).

Hirschman (1986) reveals that pictures are considered as more hedonic and aesthetic than

words. This claim is based on the format instead of the content (Hirschman, 1986). Therefore,

the use of pictures may be more effective than the use of words for hedonic product. Conversely,

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Therefore, for hedonic product, MMS mobile ad format seems has more positive effect on

consumer attitude towards received ad than SMS mobile ad format. Most hedonic products

attract consumers by their appearance. It is difficult to describe a hedonic product clearly by

only 160 characters and consumers may feel confused what the appearance of this product is.

Good combination of ad visual and text could improve the content relevance of advertisement

and is more likely to arouse consumer interest on this ad. The foregoing reasoning leads to the

following hypotheses:

H1a: Consumer attitude is more positive towards MMS ad than SMS ad when hedonic

product is advertised.

H1b: Consumer attitude is more positive towards SMS ad than MMS ad when utilitarian

product is advertised.

Furthermore, Bettman (1979), shows that consumers would be more likely to develop positive

attitude towards the products if they comprehend information of the products. The use of words

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(Feierenisen et al. 2013). Therefore, consumer would develop a more positive attitude towards

a utilitarian product when words are used for it instead of pictures (Feierenisen et al. 2013).

The difference of SMS ad format and MMS ad format is that SMS ad only contains text while

MMS could involve pictures and text. Hedonic products advertised in MMS ad format could

trigger higher product comprehension than advertised in SMS ad format because MMS

contains pictures. Therefore, MMS ad format will trigger more positive consumer attitude

towards the product than SMS ad format for a hedonic product. The use of words for utilitarian

products are more effective than the use of pictures (Feierenisen et al. 2013). Thus,

H2a: Consumer attitude is more positive towards hedonic product advertised in MMS ad

format than in SMS ad format.

H2b: Consumer attitude is more positive towards utilitarian product advertised in SMS

ad format than in MMS ad format.

According to congruity theory, consumer would develop a more positive attitude towards a

utilitarian product when words are used for it instead of pictures (Feierenisen et al. 2013).

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when pictures are used for it instead of words (Feierenisen et al. 2013). Both MMS and Banner

ad format contains words and pictures. Mobile Banner ad is displayed on small screen (Bart et

al. 2013). Mobile banner ad usually contains minimal information such as a slogan or a very

short message. Therefore, to attract consumers attention Banner focuses more on pictures. As

a result, consumer may develop more positive attitude towards Banner ad when hedonic

products are advertised. MMS mobile ad format has not space limitations (Bart et al. 2013). It

focuses more on words than Banner ad. Therefore, consumer attitude may be more positive

towards MMS ad when utilitarian products are advertised. Thus,

H3a: Consumer attitude is more positive towards Mobile Banner ad than MMS ad when

hedonic product is advertised.

H3b: Consumer attitude is more positive towards MMS ad than mobile Banner ad when

utilitarian product is advertised.

Both MMS and banner ad format contains words and pictures. Banner ad has space limitation

and could only involve a very short message (Bart et al. 2013). MMS ad format is more likely

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than banner ad format. Therefore, MMS ad format will trigger more positive consumer attitude

towards the product than mobile banner ad format for a hedonic product. Thus:

H4a: Consumer attitude is more positive towards hedonic product advertised in MMS ad

format than in banner ad format.

H4b: Consumer attitude is more positive towards utilitarian product advertised in

Banner ad format than in MMS ad format.

The consumption of hedonic products is characterized by sensory experience (Kempf. D. S.

1999). The appearance of product would stimulate customers to evaluate and generate attitude

towards the product (Feierenisen et al. 2013). Therefore, consumers are likely to generate

pleasure emotion through reviewing the pictures of hedonic products. Then content relevance

of this advertisement will be high because the content of ad matches consumers’ preference

(Varnali 2014). Mobile banner ad contains pictures while SMS ad does not contain. Therefore,

consumers will prefer mobile banner ad than SMS ad when hedonic product is advertised.

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products could be described by words clearly (Feierenisen et al. 2013). Using words for

utilitarian could lead to high content relevance. Thus:

H5a: Consumer attitude is more positive towards Banner ad than SMS ad when hedonic

product is advertised.

H5b: Consumer attitude is more positive towards SMS ad than Banner ad when

utilitarian product is advertised.

According to congruity theory, use words for product could trigger more positive consumer

attitude towards the product than use pictures for utilitarian product (Feierenisen et al. 2013).

Conversely, use pictures for product could trigger more positive consumer attitude towards the

product than use words for hedonic product (Feierenisen et al. 2013). Banner ad contains

pictures while SMS ad does not contain. Therefore, banner ad format will trigger more positive

consumer attitude towards the product than SMS ad format for a hedonic product. Mobile

banner ad usually contains minimal information such as a slogan or a very short message. (Bart

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positive consumer attitude towards the product than Banner ad format for a hedonic product.

Thus:

H6a: Consumer attitude is more positive towards hedonic product advertised in Banner

ad format than in SMS ad format.

H6b: Consumer attitude is more positive towards utilitarian product advertised in SMS

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4. METHODOLOGY

This session aims to address how and where the data are obtained to measure the influence of

advertising formats on consumer attitude towards advertising and products. First, the research

design will be described. Then, measurement scales of the variables and the sample collected

will be explained.

4.1 Procedure

A 3 (mobile ad format: SMS, MMS, Banner) x 2 (product type: utilitarian, hedonic)

between-subjects experiment is conducted online via Qualtrics. The experiment involves six conditions,

which are stated in Table 1. Each condition involves approximately 240 respondents. Therefore,

the experiment involves around one thousand and two hundred respondents and these

respondents are divided into six groups. In this research, independent variable is mobile ad

format. Dependent variables are consumer attitude towards the received ad and consumer

attitude towards advertised products. Product type is regarded as a moderating factor.

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In this experiment, respondents are shown three kinds of utilitarian products in SMS, MMS

and mobile Banner ad formats respectively, such as microwave, shampoo and laundry

detergent. They are also shown the hedonic products, such as watch, perfume and red wine in

those three mobile ad formats respectively. Therefore, each condition contains three pictures.

The pictures are shown below:

Condition 1: SMS-Utilitarian

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Condition 3: MMS- Utilitarian

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Condition 5: Banner-Utilitarian

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Respondents could see the SMS, MMS and Banner dialogue boxes like these pictures. The

research controls the content of each advertising, which aims to promote the product by

offering discounts. Afterwards, several Likert scale questions are answered by respondents. At

the end of the experiment, the respondents are asked some demographic questions, such as age

and gender.

4.2 Measurement

Two dependent variables need to measure in this research, which are consumer attitude towards

advertising and consumer attitude towards the products.

Consumer Attitude Towards Advertising. Attitude towards advertising is defined as a

tendency to response in a favorable or unfavorable way to advertising (Lutz 1985). Kotler

(2000) also defines attitude as a person’s emotional feelings towards some object. Therefore,

the research chooses to measure the degree of liking of consumers towards advertising.

Respondents would be asked “How do you like this advertising?” A seven-point Likert scale

that ranges from 1= “Strongly disagree” to 7= “Strongly Agree” is used to measure the degree

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Consumer attitude towards the Products. Vakratsas et al. (1999) use two methods to

measure consumer attitude towards products. The first is to see how favorable consumers’

attitudes are towards the products. The second one is to see the purchase intentions of

consumers towards the products. The measurement for consumer attitude towards the products

would not only focus on actual behaviors. The reason is that it is hard to stimulate consumer

behaviors only by mobile ad because most consumers do not buy products on mobile devices

(Mojiva 2012). Attitude and behavior intention are combined into the same measure because

they are closely linked (Ajzen 1985). Therefore, in this research consumer attitude towards

the products would be measured by the means of liking scale of consumer attitude towards the

products and the purchase intensions towards the products. To measure how favorable

consumers’ attitudes are towards the products, a 7-point Likert scale (1, “extremely disliking,”

to 7, “extremely liking”) is used (Allen et al. 2008). Purchase intension is also measured by a

7-point Likert scale (1, “extremely unlikely,” to 7, “extremely likely”) (Kamins and Marks

1987). The specific questionnaire is as follows:

Question Likert scale

Consumer Attitude Towards Advertising:

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4.3 Sample

Non-probability convenience sample is used to conduct the experiment. There are around one

thousand and two hundred respondents involved in the experiment. They are divided into six

groups evenly. There is no restriction for respondent selection because most people use mobile

phones every day and they are familiar with mobile advertising. Respondents are approached

via Facebook, Wechat and Whatsapp.

Consumer Attitude Towards Products:

How do you like this product?

How likely is it that you will purchase this product?

1= “Extremely disliking” to 7= “Extremely liking” 1= “Extremely unlikely” to 7= “ Extremely likely”

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5. RESULTS

5.1 Data Preparation

There are 612 questionnaires collected via Qualtrics and imported into SPSS Statistics. Data

preparation has been done before data analysis. First, invalid data has been deleted. Some

respondents choose the same options for all the questions. These responses are considered

invalid and deleted. Furthermore, some questionnaires are completed in a very short time, such

as 30 seconds. In general, respondents usually need at least one minute to answer the survey.

Therefore, data are deleted when the survey completion time is below 30 seconds. As a result,

around 143 respondents are removed. Finally, there are 469 valid data used for data analysis

after data cleaning. Moreover, a frequency test was used to check missing data. The amount of

missing data was less than 0.5% for all variables except product type and mobile ad format. A

hotdeck imputation was used to complete the data sets. Furthermore, the moderator used in the

research is recoded. The scale of product type is adapted from 1 (Utilitarian), 0 (Hedonic) to 0

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5.2 Reliability Analysis

Reliability analysis is conducted for the scale of consumer attitude towards products. In this

research consumer attitude towards the products is measured by the means of liking scale of

consumer attitude towards the products and the purchase intensions towards the products. As

a result, the reliability of consumer attitude towards products scale is high, with Cronbach’s

Alpha > .7. Moreover, each item has a high corrected item-total correlation score, which are

higher than 0.3. Therefore, internal consistency has been verified and data collected from the

experiment are reliable for further analysis. Reliability analysis results are shown in the Table

1.

Table 2. Reliability analysis results

5.3 Correlations

Table 3 shows the means, standard deviations and correlations of the variables. From this table,

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towards advertising with a r=0.531, p <0.01. Product type is significantly correlated with

consumer attitude towards advertising with a r=-0.095, p <0.01. It shows that consumer attitude

is more positive towards the ad when hedonic products are advertised. Moreover, product type

is also correlated with consumer attitude towards product with a r=- 0.061, p < 0.05. It reveals

that in general, consumer attitude would be more positive towards advertised hedonic products

than utilitarian products.

Table 3. Means, Standard Deviations, Correlations

5.4 Testing of Hypothesis

Two models in this research would be tested. First, the impact of mobile ad format on consumer

attitude towards ad is tested. Then the impact of mobile ad format on consumer attitude towards

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5.4.1 Two-Way Factorial ANOVA analysis: Model One

Two-Way Factorial ANOVA is conducted to test hypotheses in the first model, which are H1a,

H1b, H3a, H3b, H5a and H5b. Table 4 shows that advertising format has significant effect on

consumer attitude towards advertising F (2, 1395) =3.967, p<.05, η²=.012. There also exists a

main effect of product type on consumer attitude towards ad F (1,1395) =16.921, p<.05,

η²=.006. Furthermore, there is a significant interaction effect between product type and

advertising format on consumer attitude towards advertising F (2, 1395) =46.951, p<.05,

η²=0.063. The correlation analysis results also support the existence of this interaction effect.

It shows that product type is significantly correlated with consumer attitude towards advertising

with a r=-0.095, p <0.01. As a result, it is proved that product type has the moderating effect

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Table 4 Factorial ANOVA-Model One

The plot also shows that there is an interaction effect between mobile ad format and product

type. Three lines in this graph are not parallel to each other, which indicates the existence of

interaction effect. To be more specific, when hedonic products are advertised, advertising in

MMS format perceives higher estimated marginal means of liking scale than in mobile Banner

format. Table 5 shows that the mean of liking scale of MMS ad is around 4.043 while Banner

ad is around 3.481 when hedonic product is advertised, thus hypothesis H3a is rejected. The

means of liking scale of SMS ad is 3.116, which is the lowest in terms of hedonic product.

Therefore, both MMS and Banner ad format perceives higher means of liking scale than SMS

ad when hedonic product is advertised. Thus, H1a and H5a are supported.

Similarly, the plot shows that SMS ad perceives the highest estimated marginal means of liking

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(see Table 5). However, the mean of liking scale of Banner ad is 3.047 and the mean of liking

scale of MMS ad is 2.988. Therefore, consumer attitude is more positive towards SMS ad than

MMS ad and Banner ad when utilitarian product is advertised. Thus, H1b and H5b are

supported.

Table 5 Means of Liking Scale towards Ad

However, it seems there is no significant difference between the mean of liking scale of MMS

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Table 5 shows that the mean of liking scale of MMS ad is 2.988 and the mean of liking scale

of Banner ad is 3.047. There is little difference between the mean of liking scale of MMS and

Banner. Then One-Way ANOVA is used to test whether there exists a significant effect of

mobile ad format (MMS vs. Banner) on consumer attitude towards ad when utilitarian products

are advertised. According to Table 6, there is no significant effect of mobile ad format (MMS

vs. Banner) on consumer attitude towards ad when utilitarian product is advertised, F (1, 462)

=0.249, P>0.05. Thus, H3b is rejected.

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5.4.2 Two-Way Factorial ANOVA analysis: Model Two

Two-Way Factorial ANOVA is also used to test hypotheses in the second model, which are

H2a, H2b, H4a, H4b, H6a and H6b. According to Table 6, mobile ad format has significant

effect on consumer attitude towards the advertised products F (2, 1395) =6.488, p<.05, η²=.009.

There is a main effect of product type on consumer attitude towards the advertised product F

(1, 1395) =6.223, p<.05, η²=.004. Moreover, there exists a significant interaction effect

between product type and advertising format on consumer attitude towards the advertised

products F (2, 1395) = 16.29, p<.05, η²=0.063. The interaction effect is also supported by

correlation analysis result. It shows that product type is correlated with consumer attitude

towards product with a r=- 0.061, p < 0.05. Therefore, product type has the moderating effect

on the relationship between mobile ad format and consumer attitude towards the advertised

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Table 7 Factorial ANOVA-Model Two

The plot also shows the interaction effect between mobile ad format and the product type on

consumer attitude towards the advertised product. More specifically, in terms of hedonic

product, product advertised in MMS ad perceives the higher estimated marginal means of

liking scale than in other two ad formats. The mean of liking scale of hedonic product in MMS

format is about 3.813 (see Table 8). Thus, H2a and H4a are supported. Hedonic product

advertised in SMS format perceives the lowest mean of liking scale, which is only 3.092 (see

Table 7). Thus, H6a is supported.

Similarly, utilitarian product advertised in SMS ad format perceives the highest mean of liking

scale, which is about 3.44. Thus, H2b and H6b are supported. However, utilitarian product

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towards the utilitarian product advertised in Banner format are more positive than in MMS ad

format. Thus, H4b is also supported.

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5.5 Overview of hypotheses

H1a ‘Consumer attitude is more positive towards MMS ad than SMS ad when hedonic product

is advertised.’ ——Supported

H1b ‘Consumer attitude is more positive towards SMS ad than MMS ad when utilitarian

product is advertised.’ ——Supported

H2a ‘Consumer attitude is more positive towards hedonic product advertised in MMS ad

format than in SMS ad format.’ ——Supported

H2b ‘Consumer attitude is more positive towards utilitarian product advertised in SMS ad

format than in MMS ad format.’ ——Supported

H3a: ‘Consumer attitude is more positive towards Mobile Banner ad than MMS ad when

hedonic product is advertised.’ ——Not supported

H3b: ‘Consumer attitude is more positive towards MMS ad than mobile Banner ad when

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H4a ‘Consumer attitude is more positive towards hedonic product advertised in MMS ad

format than in banner ad format.’ ——Supported

H4b ‘Consumer attitude is more positive towards utilitarian product advertised in Banner ad

format than in MMS ad format.’ ——Supported

H5a ‘Consumer attitude is more positive towards Banner ad than SMS ad when hedonic

product is advertised.’ ——Supported

H5b ‘Consumer attitude is more positive towards SMS ad than Banner ad when utilitarian

product is advertised.’ ——Supported

H6a ‘Consumer attitude is more positive towards hedonic product advertised in Banner ad

format than in SMS ad format.’ ——Supported

H6b ‘Consumer attitude is more positive towards utilitarian product advertised in SMS ad

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6. CONCLUSION AND DISCUSSION

6.1 Conclusion

The increasing popularity of mobile phones contributes to the growth of mobile marketing.

Many marketers choose to promote their product and deliver commercial information to

consumers by mobile phones (Chowdhury et al. 2006). Mobile Banner advertising format,

SMS and MMS advertising format are frequently used by marketers (Chen and Hsieh 2012).

However, there is no article studying the effects of these three mobile ad formats on consumer

attitude towards advertising and products. Therefore, this paper looks into the research question

(s): What is the impact of SMS, MMS, mobile Banner advertising format on consumer attitude

towards the advertising? And what is the impact of SMS, MMS, mobile Banner advertising

format on consumer attitude towards advertised products? As a result, there are two models

needed to test. Product type (hedonic vs. utilitarian) is the moderator in both models. To test

the hypotheses, six experimental surveys are conducted via Qualtrics to collect the data of

consumer attitude towards ad and the advertised products. Two-way factorial ANOVA is used

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Then the results would be discussed in this paragraph. The interaction effects between mobile

ad formats and product type on consumer attitude towards the ad and the advertised products

are analyzed by Two-Way Factorial ANOVA. The results show that that there exist significant

interaction effects between mobile ad format and product type on consumer attitude towards

the ad and the advertised products. To be more specific, in terms of hedonic products, MMS

ad generates the most positive consumer attitude towards the ad and the advertised products.

SMS ad generates the least positive consumer attitude towards the ad and the advertised

products when it comes to hedonic products. However, when it comes to utilitarian products,

consumer attitude is more positive towards SMS ad than MMS and Banner ad format.

Furthermore, there is no significant difference between the impact of MMS and mobile Banner

ad on consumer attitude on the ad when utilitarian products are advertised.

6.2 Discussion

All the hypotheses are consistent with congruity theory, except H3a and H3b. According to

congruity theory, consumer would develop a more positive attitude towards a utilitarian

product when words are used for it instead of pictures (Feierenisen et al. 2013). Conversely,

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are used for it instead of words (Feierenisen et al. 2013). MMS contains pictures and words

while SMS ad only contains words. Therefore, MMS ad could generate more positive

consumer attitude towards ad and the advertised products when it comes to hedonic products.

Similarly, when utilitarian products are advertised, consumer attitude would be more positive

towards SMS ad than MMS ad because of congruity theory. However, in terms of utilitarian

products, the result shows that there is no significant difference between the impact of MMS

and mobile Banner ad on consumer attitude towards ad. Banner ad focuses more on pictures

than MMS ad. Therefore, according to congruity theory, consumer attitude would be more

positive towards MMS ad than mobile Banner ad when utilitarian products are advertised.

However, the result is inconsistent with this theory. The reason may be that both MMS and

Banner ad format involve pictures and words. Consumers may not notice the proportion of

pictures contained in Banner ad and the proportion of words contained in MMS ad, which may

need to be studied in the future research.

Furthermore, although mobile Banner ad focuses more on pictures than MMS ad consumer

attitude is still more positive towards MMS ad when hedonic products are advertised. This

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JinYoung (2014) may explain this inconsistency. Yoo Jung and JinYoung (2014) consider

informativeness also contributes to consumer attitude towards advertising. Informativeness

refers to the degree of informational contents included in the advertising message (Aaker &

Norris, 1982). Mobile banner ad is displayed on small screen (Bart et al. 2013). Mobile banner

ad usually contains minimal information such as a slogan or a very short message. It is difficult

to deliver rich information to consumers through pictures, videos, text or combination of these

media types (Bart et al. 2013). MMS mobile ad format has not space limitations (Bart et al.

2013). Therefore, mobile banner ad seems less likely to have high informativeness than MMS

mobile ad. Furthermore, irritation is one of the main drivers of consumer attitude towards

mobile advertising (Martı ́Parreño et al. 2013). According to Yoo Jung and Jin Young (2014),

irritation is negatively related to the consumer attitude towards advertising. Some consumers

consider banner ads as a source of irritation and they think Banner ads negatively affect

browsing experience (Martı ́Parreño et al. 2013). Therefore, although mobile Banner ad

focuses more on pictures, space limitation would reduce its informativeness. Furthermore,

Banner ads are regarded a source of irritation, which would also have negative effect on the

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attitude towards ad than MMS ad when it comes to hedonic products. Therefore, consumer

attitude towards the ad cannot be only explained by congruity theory. It could be influenced by

many other factors, such as informativeness (Yoo Jung and JinYoung 2014).

7. IMPLICATIONS FOR RESEARCH

Many existing articles have studied the factors which could influence the consumer attitude

towards mobile advertising and the advertised products. Factors, such as environmental context,

cultural dimensions and consumer-related context are found to have positive effect on

consumer attitude towards mobile advertising. Consumer attitude towards the advertised

products could be improved by sending ad messages at a convenient location. Few existing

articles focuses on the impact of mobile ad format on consumer attitude towards the ad and the

advertised products. This research could contribute to the existing literature. It proves the

impact of mobile advertising formats on consumer attitude towards advertising as well as the

advertised products, which are not sufficiently studied.

Moreover, the research also finds that there exist interaction effects between mobile ad format

and product type on consumer attitude towards the ad and the advertised products, which also

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the most positive consumer attitude towards the ad and the products. SMS ad generates the

least positive consumer attitude towards the ad and the advertised products when it comes to

hedonic products. The research provides a new perspective of improving advertisement

effectiveness.

8. IMPLICATIONS FOR PRACTICE

The research shows how to choose proper mobile ad format based on product type to improve

advertisement effectiveness. Marketers would know how to combine proper advertising format

and product type. For example, when marketers aim to promote a hedonic product, they could

choose to send a MMS to consumers instead of SMS. Marketers could also use SMS ad to

provide utilitarian products information to consumers. Proper combination of mobile ad format

and product type could generate positive consumer attitude towards the ad and the products.

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9. LIMITATIONS AND FUTURE RESEARCH

This study has found that there exists the interaction effect of mobile ad format and product

type on consumer attitude towards the ad and the advertised products. It shows how to

combine proper mobile ad format and product type. However, there still exists some

limitations, which provide the direction for the future research.

Firstly, this paper studies the moderating effect of product types on the relationship between

mobile ad format and the consumer attitude towards the ad. Product type could moderate the

relationship between mobile ad format and the advertised products. However, there also exists

other variables that can moderate the model, such as brand attitude and the degree of familiarity

towards the products. Future research could explore interaction effect between brand attitude

and mobile ad format. Furthermore, some products feature both hedonic and utilitarian

attributes, which is not considered in this research. Therefore, future research should include

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Secondly, only three kinds of hedonic products and utilitarian products are chosen to conduct

the survey. There may exist a bias in the characteristics of these products. Therefore, future

research could include more products in experiment to improve the sample generalizability.

Thirdly, consumer attitude on advertising could also influence the consumer attitude towards

the products. However, in this paper the relationship between these two factors is not studied.

Furthermore, when testing the impact of mobile ad formats on consumer attitude on products,

consumer attitude on advertising are not considered as a control variable, which may affect the

results of the experiment. Therefore, future research could regard consumer attitude on ad as a

control variable when studying the effect of mobile ad formats on product attitudes.

Finally, the study only focuses on three kinds of mobile ad formats, which are SMS, MMS and

Banner. Banner could also be divided into static banner and Animated banner. The paper only

emphasizes on the impact of static banner and ignore the animated banner. Furthermore, there

are also many other mobile ad formats. Future research could include more kinds of mobile ad

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