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PROJECT TOPIC- INFLUENCE OF MOBILE MARKETING ON CONSUMER PURCHASE BEHAVIOUR IN ORGANIZED INSTITUTIONS IN LAGOS STATE, NIGERIA

PROJECT TOPIC- INFLUENCE OF MOBILE MARKETING ON CONSUMER PURCHASE BEHAVIOUR IN ORGANIZED INSTITUTIONS IN LAGOS STATE, NIGERIA

 

ABSTRACT

Advances in Information and Communication Technologies are not only offering new marketing channels of communication and interactivity to companies but also significantly influencing the ways in which organisations conduct their businesses and marketing activities. Marketing on Mobile devices has become one of the most popular channels of communicating with intending and potential customers, particularly in the form of text advertising through Short Messaging Service. This study is aimed at examining the influence of mobile Marketing on consumer Purchase Behaviour among mobile phone users in organized institutions in Lagos State. The objectives of this study are to examine the effect of marketing messages on consumer attitude, to identify the effect of marketing messages on purchase behaviour and to examine consumer factors that significantly influence attitude towards mobile marketing. To achieve the objectives, four hypotheses were formulated from the structure of the research questions. This study was anchored on three theories: learning theory, involvement theory, and theory of reasoned action. The study employed cross-sectional survey design and the data required for this study were gathered using a structured questionnaire. One thousand two hundred (1200) copies of the questionnaire were administered to University students and employees in selected organisations. One thousand and forty three (1043) copies were retrieved out of which One thousand and twenty (1020) copies were used for analysis. Validity and reliability of the research instrument was carried out using composite reliability, content and construct validity. Multi-stage sampling and systematic random sampling techniques were used to select the respondents for this study. Multiple regression was used to test the stated hypothesis with the use of structural modeling technique. The first hypothesis revealed that there is a significant positive effect of marketing messages on consumer attitude (C.R values were greater than 1.96 and P values less than 0.05). The second hypotheses revealed that consumer attitude towards marketing messages have a positive influence on purchase behaviour (C.R values were greater than 1.96 and P values less than 0.05). The third hypothesis revealed that there is a significant positive effect of marketing messages on purchase behaviour (C.R values were greater than 1.96 and P values less than 0.05). The fourth hypothesis tested revealed that there is a significant influence of consumer factors (except for innovativeness, existing knowledge and social norms) on attitude towards marketing messages (C.R values were greater than 1.96 and P values less than 0.05). Based on these findings, the study recommended that: (i) mobile marketing managers should determine target customers and understand their demographic characteristics in order to develop successful mobile marketing programmes and strategies; (ii) Marketing messages should be personalized to consumer needs in stimulating positive attitude and response towards the advertised product/service; (iii) Marketers should frequently communicate with their customers in order to build customer loyalty; (IV) organizations and advertisers should seek consumers consent before sending them marketing messages, as mobile phones are considered personal assets to the owners; (v) Organisations should ensure that their marketing messages are creatively designed in order to yield value to the consumer.

CHAPTER ONE
1.0 INTRODUCTION

1.1 Background to the Study

Advances in technology (especially information technology) and globalization have changed the way in which the world conducts business and are increasingly providing consumers with greater conveniences. The Industrial Revolution of the 18th century led to a new economy, which was defined in terms of mass production of standardized products, mass distribution of these products to consumers and mass media vehicles to carry standardized advertising messages” (Godin, 1999). During this era, selling underwent a major transformation from personal one-to-one persuasion to mass advertising campaigns designed for the consumers (Solove, 2004).

The same message was communicated to the consumers regardless of the difference in nature and characteristics of each consumer. Mass marketing yielded only short term sales and not loyal customers as these forced marketing firms to understand that consumers cannot be treated as a homogeneous group (Doinita, 2012). Marketers had to develop targeted marketing communications in order to build and maintain relationships with customers.

Targeted marketing became truly successful when it was associated with direct marketing, “a database-driven interactive process of directly communicating with targeted customers or prospects using any medium to obtain a measurable response or transaction” (Spiller and Baier, 2010).
The advent of internet facilitated targeted marketing which made it possible to send messages to an individual’s email.

This facilitated the emergence of email marketing. The advent of the internet provided marketers the opportunity to initiate and build relationships with their customers via the use of computer networks. However, marketers’ desire real time interaction with their customers and this increased the need for a mobile environment which provides the most dynamic, effective and personal medium for marketing communication (Yaniv, 2008).
The emergence of the mobile phone device as a means of instant communication has changed the way organizations interact with potential and existing customers (Grant and Donohoe 2007; Siau, Sheng and Nah 2005).

In recent years, the rapid adoption of mobile phone and other mobile communication devices have created opportunities in the marketing and advertising erena, by allowing companies to announce their products and services, develop customer relationships through direct personalized and interactive message response from customers (Sultan and Rohm, 2005).
Different reasons constitute the rise in the use of mobile devices. According to Grant and Donohoe (2007), the combination of video and audio contexts in one mobile device absolutely increased the usage of mobile devices, flexibility in communication and information sharing have become possible with improvements in mobile technology and integration of internet and computing into a mobile medium (Siau, Sheng and Nah 2005) and the possibility of reaching information anytime and anywhere triggered the improvements of mobile devices (Deans, 2005) The potential of interaction with consumers, target marketing and managing consumer relationship made mobile devices an important channel for marketers (Grant and Donohoe, 2007). Mobile marketing have become powerful tool for marketing communication and information dissemination (Nysveen, Pdersen, Thorbjornsen and Berthon, 2005).

This has made it easier for consumers to compare marketing information, product offerings, and prices before significant purchase decisions is made by the consumers. With this level of information at consumers disposal, consumer behaviour has become increasingly difficult to predict by marketers (Urban, 2004), as consumers expect transparency and real-time interactions with the organisation The mobile phones are no longer used for communication alone, according to Michael and Salter (2006), who stated that the world has entered a new era called, “the all mobile era”.

According to them, the mobile phones or rather said, smartphones, do it all, from browsing the internet for information to ordering of online products, mobile banking and paying of bills. “The mobile phone is set to become the Third Screens after TV and computer,” according to Asif (2011). As with other traditional marketing programmes, consumer attitude play an important role in determining the success of using the mobile device by marketers as a platform for communicating, creating sales and building relationships with their consumers. The acceptance of mobile device by consumers is influenced by, amongst others, the perceived utility of the content and the perceived risk associated with data security and consumer privacy (Bauer, Barnes, Reichardt and Neumann, 2005).
The mobile phone is seen as a personal device (Barwise and Strong, 2002; Tsang, Ho and Liang, 2004) and as such, marketing messages are expected to meet the individual need and possibly take the form of permission marketing (a message either in form of SMS and MMS that has been requested by the consumer as part of an opt-in scheme requiring the consumer to indicate their consent to receive commercial messages and information of interest to them) in order to stimulate a positive response from the consumer.

A mobile device is a possession many people carry with them and text messaging is generally used for one-to-one contact, which is why a more personal approach seems to be required in mobile marketing in order to generate a favourable attitude from the consumer (Barwise and Strong, 2002). Intrusion of marketing messages into this personal device often lead to irritation, especially when the mobile phone is seen as an “extended self‟, of the consumer as identified by Kolsaker and Drakatos (2009).
Despite the huge marketing potentials of personalized and interactive messages presented by communicating with customers using the mobile phone device, academic research in this area is still in its early stages (Barnes and Scornavacca, 2004; Muk, 2007 and Carroll, Barnes, Scornavacca, and Fletcher, 2007). A strong need for empirical research is articulated by practitioners and academics. This thesis responds to this call for more research and theoretical development in this area. Thus, this study contributes to the understanding of the influence of mobile marketing messages on consumer purchase behaviour.

PROJECT TOPIC- INFLUENCE OF MOBILE MARKETING ON CONSUMER PURCHASE BEHAVIOUR IN ORGANIZED INSTITUTIONS IN LAGOS STATE, NIGERIA

1.2 Statement of the Research Problem

Attitude toward marketing activities and especially advertising in the traditional channel (print and broadcast media), have been studied widely in the literature because they have a considerable impact on measuring the effectiveness of these channels on consumer purchase decisions. The findings have been controversial across various channels of traditional marketing communication media (Moore, 1983; Zanot, 1984; Shavitt, 1998; Schlosser, 1999) as mobile communicators cannot exactly predict or determine the influence of mobile marketing messages on consumer attitude and purchase behaviour (Haghirian and Madiberger, 2005). Thus, this has necessiatated the need to assess the influence of mobile marketing messages on consumer purchase behaviour.
Consumer attitude towards marketing messages varies according to the communication media used, message content and consumer factors. Advertising research has shown that the effects of advertising activities on consumers are determined by the influence of advert message on consumers’ attitude, the advertising company and the media (MacKenzie and Lutz, 1989; Ducoffe’s, 1995). Thus, there is a need to identify and assess factors which contribute negatively or positively to attitude formation of consumers towards mobile marketing messages.
Marketing communication strategy depends largely on consumer attitude and behaviour towards the company and its product (Jun and Lee, 2007). The study of consumer attitude has become imperative in a bid to ensure consistent purchase of marketing products/services. Consumers attitude about marketing information are a direct indication of how they feel about the product itself, which reflects in their decision on whether or not to purchase the advertised product (Solomon, 2004). Given the mobile device as a new and emerging platform of marketing communication, it has become imperative for this study to examine how marketing messages through this new medium (the mobile phone) affects consumer attitude.
Substantial review of the literature (Haghirian and Madiberger, 2005; Tsang, 2004; James, 2004; Jun, 2007 and Maneesoonthron, 2006) shows that little research has been conducted with regards to the effect of marketing messages on consumer purchase behaviour. This is particularly important because the success of marketing messages through the mobile phone device relies on the responsiveness of consumers to such messages (Bauer, et al., 2005). Review of mobile marketing literature has also shown that most of the studies were conducted in developed countries where their findings, due to cultural differences and differences in the adoption rate of technology, may not be directly applicable to the Nigerian context (Barwise and Strong, 2002; Tanakinjal, Deans and Gray 2010;. Xu, 2006).
Consumers complex nature is shaped by many factors (personal beliefs, purchase experiences and marketing programs and communication) which ultimately influences their decision making process (Posavac, 2012). Consumers have different views on marketing messages received about products/services which influences their attitude and ultimately translate into a particular action. Thus, “having a favourable attitude may not necessarily lead directly to purchase and a person may have a negative attitude but a positive purchase or use behaviour” (Copley, 2004).
Therefore, it becomes important to understand the effect of marketing messages on consumer attitude and to know if such attitude will translate into a positive purchase or use behaviour.
Numerous factors such as consumer perceptions of the value of entertainment, informativeness, irritation, credibility, perceived risk of data and privacy have been identified as influencing factors on consumer attitude (Bauer et al., 2005; Barnes and Scornavacca, 2004). Studies on these factors have been carried out in other countries like Asia and Europe (Haghirian and Madlberger, 2005; Leppäniemi and Karjaluoto, 2005; Leung and Cheung, 2004) but little in Africa (Vanderwalt, Rebello and Brown, 2009) especially in West African countries. The findings of these studies have been contradictory and none of these studies have assessed the effect of mobile marketing messages on consumer purchase behaviour (Roach, 2009; Jun, 2007; Haghirian and Madiberger, 2005; Tsang, 2004; Dickinger and Haghirain, 2004: Barnes and Scornavacca, 2003).

1.3 Research Questions

Based on the statement of problem, the following research questions were raised:
(i) What is the effect of marketing messages (promotional, relational, personalization, interactivity and frequency) on consumer attitude towards mobile marketing.?
(ii) What is the influence of consumer attitude towards mobile marketing on purchase behaviour (Intention, actual purchase, satisfaction and loyalty)?
(iii) Is there a significant effect of marketing messages (promotional, relational, personalization, interactivity and frequency) on consumer purchase behaviour (Intention, actual purchase, satisfaction and loyalty)?
(iv) Do consumer factors significantly influence attitude towards mobile marketing?

1.4 Research Objectives

The main objective of this study is to determine the influence of mobile marketing on consumer purchase behaviour. The specific objectives include the following;
(i) To examine the effect of marketing messages (promotional, relational, personalization, interactivity and frequency) on consumer attitude towards mobile marketing.
(ii) To determine the influence of consumer attitude towards mobile marketing on purchase behaviour (Intention, actual purchase, satisfaction and loyalty).
(iii) To find out the effect of marketing messages (promotional, relational, personalization, interactivity and frequency) on purchase behaviour(Intention, actual purchase, satisfaction and loyalty).
(v) To examine consumer factors that significantly influence attitude towards mobile marketing.

1.5 Research Hypotheses

PROJECT TOPIC- INFLUENCE OF MOBILE MARKETING ON CONSUMER PURCHASE BEHAVIOUR IN ORGANIZED INSTITUTIONS IN LAGOS STATE, NIGERIA

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