Factors affecting the acceptance of mobile advertising for consumers' purchase intentions in Vietnam: A case study in Ho Chi Minh City

Kỷ yếu Nghiên cứu khoa học sinh viên UEH 2019 35 FACTORS AFFECTING THE ACCEPTANCE OF MOBILE ADVERTISING FOR CONSUMERS' PURCHASE INTENTIONS IN VIETNAM: A CASE STUDY IN HO CHI MINH CITY. Author: Võ Nguyễn Vũ Toàn – ADC01 – K41 Trần Thị Minh Trang – ADC01 – K41 Ngô Thành Đạt – ADC01 – K41 Hoàng Đặng Quế Chí – ADC01 – K41 Nguyễn Thị Phương Trang – ADC01 – K41 Instructor: MBA. Lê Thanh Trúc Abstract: With the rapid development of mobile operating systems and mobile networks, Vietnamese people are more and more attached to mobile phones in their work and life. Therefore, in order to reach more customers at a lower cost, marketers should create mobile ads that are entertaining, useful and avoid annoying and annoying interactions. The model proposes the premise of attitudes (entertainment, stimulation, and usefulness) and its effect on ad acceptance and intent to purchase. Based on data collected from 229 students and employees in Ho Chi Minh City and the PLS analysis method, the results show that attitudes toward. 1. INTRODUCTION Thanks to the development of the mobile industry, which promotes new operating systems, the explosion of applications increases the number of smartphone users and creates a whole new channel for advertising. The number of worldwide mobile phone owners is 4,917 billions, representing 66% of the world's population, up 5% from February 2016. (Digital in 2017: Along with the rapid development of mobile networks and social networks, the global mobile advertising market is growing at a rapid pace. Marketers spending on global mobile advertising rose from $ 9.8 billion in 2012 to $ 13.1 billion in 2013 and are expected to reach $ 41.9 billion by 2017 (Gartner , 2014, Lee et al., 2012). Smartphones have a profound impact on people's behavior and lifestyle. Smartphones are almost becoming essential in personal and professional life. The dramatic increase in smartphones has attracted the attention of scientists and advertisers seeking to identify the driving force behind verifying smartphone use. Kỷ yếu Nghiên cứu khoa học sinh viên UEH 2019 36 The mobile advertising market is a new advertising channel using smartphones to propose expanded creative content. Advertising on mobile phones is expected to lead the entire advertising market in the long term (Eui-Bang et al 2017). The utilize of mobile phones like an useful communication channel has played an integral part in transforming the process to get advertising attempts of consumers. Thanks to the development of wireless and cellular network technology, it is possible to advertise on mobile phones at the right time and place so that usefulness is recognized, increasing customer acceptance for mobile ads, which can increase the decision-making ability of the product. Among consumers, youth have taken the lead in accepting mobile services such as SMS and instant messaging (IM) in the last few years. Nowadays, young people improve social skills through movable tools and utilization through mobile phones. Teenagers are also the target audience for mobile advertising campaigns. The impact of mobile advertising on marketers creates a major task for gaining understanding of the controls and hindering the adoption of mobile advertising. Previous research (Kuo and Yen, 2009; Tsang et al., 2004) show that attitude towards mobile advertising is an important factor for mobile marketing research due to its influence on the purpose of consumers to receive mobile advertising is remarkable. The research team wants to find out what factors influence the behavior of the ads for the marketing manager so that they create an ad that impacts their target audience. Especially young customers - target customers of the current brand. Marketers can apply research results to improve attitudes by personalizing the message, the relevance of the content, and increasing the value of the sales message with entertainment features to create. Advertising increases the acceptance and influence of consumer behavior. The aim of this research is three-fold: (1) Analyzing the role of cognitive (cognitive utility) and emotional premise (entertainment and stimulation) of consumer attitudes towards mobile advertising. (2) The impact of consumer attitudes toward accepting mobile ads (ready to receive mobile advertising communications). (3) From that point, the intention is to buy a product that is advertised on a mobile phone. 2. LITERATURE REVIEW 2.1. Theoretical background 2.1.1. The concepts of mobile advertising Mobile advertising is defined as a advertising method that is transmited to the target/consumer through handheld devices. Most of this type of advertising is communicated popular such as a Mobile Web Banner (top of page), Mobile Web Poster (bottom of page banner), and full screen interstitial, which appears while a requested Kỷ yếu Nghiên cứu khoa học sinh viên UEH 2019 37 mobile web page is “loading.” The remaining types as mobile video ads (pre, mid and post roll) (Mobile Marketing Association, 2008), mobile gaming ads, SMS and MMS ads. Mobile phones become necessities in the lives of individuals and work to meet the purpose of social networking. In particular, smartphone advertising plays a growing contributions in the decision-making process in deciding consumer purchases (Kim & Han, 2014). Built- in mobile advertising are increasingly complex to meet the needs of marketers such as reach, personalization, timeliness and low cost. By combining mobile advertising techniques in communications strategies, retailers, service suppliers, and manufacturers might offer more interesting campaigns and offers. To know how successful a campaign is, we have to understand how to make sure that the link between stakeholders, ,advertising objectives, ads elements,market conditions, and context variables. Mobile phones are selected (Grewal, Bart, Spann , & Zubcsek, 2016). 2.1.2. TRA and TAM 2.1.2.1. Theory of reasoned action (TRA) The TRA model shows behavior that is determined by the intention to do that behavior. The two main factors affecting consumer behavior are personal attitudes and subjective norms. Where the attitude of an individual is measured by belief and appreciation for the outcome of that behavior. Fishbein and Ajzen (1975) demonstrate that person's behaviors generally conform to their attitudes. Therefore, the attitude can directly explain the buying intention. Intention to buy that indicates the state of intent to buy or not to buy a product in a certain period. Before buying, buying intentions have been formed in the minds of consumers. Therefore, buying intent is the best predictor of customer buying behavior. Ajzen (1991) defines subjective norms as the perception of influencers that individuals should behave or not behave. 2.1.2.2. Technology acceptance model (TAM) The TAM model confirms that the individual’s using technology intent is established by personal attitudes when experiencing that technology (José et al 2013). The technology owning perceived usefulness and perceived ease of use is determined by the individual’s attitude (José et al 2013). According to the TAM ( Davis et al. , 1989), perceived ease of use is likely to refer to the extent to which customers believe that no effort is expect to use the system. For instance, young – age people will easily perceive mobile advertising messages and know how to use without effort (José et al 2013). Davis et al (1989) confirm perceived usefulness as the extent to which customers believe that their performance is boosted when using a system. For example , consumer will realize large usefulness when mobile advertising help them saving time and money base on common characteristics of mobile phone. José et al (2013) has overlooked the ease of use Kỷ yếu Nghiên cứu khoa học sinh viên UEH 2019 38 felt because the Y generation was exposed to early technology so that the experience and use of a simple mobile phone meant that the variable was negligible. In anticipation of consumer behavior. TRA is used by Davis et al (1989) to define the relationships between attitude and users’ acceptance of a specific technology, attitudinal beliefs (consumer perceived usefulness and perceived ease of use). 2.1.3. Uses and gratifications theory Uses and gratifications theory (Katz et al., 1974) indicates people give way to satisfying many needs that promote them to find satisfaction in that way. According to Castells et al., 2006; Wei et al., 2010, mobile services were adopted and used recently through researching uses and gratifications theory and this theory has confirmed a group of pragmatic and non-pragmatic motivations to set daily life base on using mobile services. Therefore, many internal motivations are used for mobile services and this might create superiority about utility, flexibility and usability through rational ICT-adoption theory (José et al 2013). Internal motivations tend to the interior satisfaction that includes emotions, happiness and socialisation with other customers (Babin et al., 1994) when using the media. Entertainment is seen as the extent to which an action is interesting except the intrinsic gift. By adding entertainment to TAM, Davis and its co-worker added entertainment to TAM to demonstrate that utility and entertainment played significant roles in expounding behavioral tendencies to use the technology (José et al 2013). Entertainment offered by mobile serviceare is generally most consistently satisfaction confirmed in recent research applied to young-age people (Castells et al., 2006). 2.2. Conceptual model and hypotheses 2.2.1. The concept of purchase intention Purchase intention shows the possibility that consumers will plan or be willing to purchase a certain product or service in the future (Wu, Yeh, & Hsiao, 2011). Previous study has shown that increasing purchase intention indicates an rise in buying opportunities (José et al, 2018). If a consumer intends to make a positive purchase, acceptance of mobile advertising will motivate the purchase (José et al, 2018). About the context of smart mobile phones, one must to indicate the intent of consumers to buy products or services by mobile applications (Chen, Hsu, & Lin, 2010). In their recent study, Zubcsek, Katona and Sarvary (2017) furnish some arguments in support of the statement that their goods predilection is represented by consumer movement model, which should be used by marketers to progress the provided commercial offer. Therefore, Shen (2015) shows that not only increased mobile shopping is becoming a part of many people's routine, but there is also a group of decisive factors like subjective Kỷ yếu Nghiên cứu khoa học sinh viên UEH 2019 39 norms, attitudes and perceived behavioral control that have a tendecy to affect the customer intention to buy. As a result, the determinants that are acceptable to customers should considered by product information in mobile advertising for the desired effect (José et al, 2018). We further intend to purchase because of the importance of accepting mobile advertising includes it in purchase intent and evaluated the product: H1. Acceptance of mobile advertising is positively associated with purchase intention. 2.2.2. Attitude toward and acceptance of mobile advertising TRA and TAM admitted intended behavior is an important measure of individual leads to a ready-made behavior. Participation refers to accepting messages and perceptions of individuals before accepting mobile communications, not behavior after posting (outspreading/reading/sending information in the messages). Attitude often painted from models TRA and TAM (Davis et al., 1989) and evaluate positively or negatively by individuals about an a certain object or behavior (Ajzen, 1991). The literature on psychosocial shows which attitudes have two components: affective and cognitive (Bagozzi and Burnkrant, 1985; Chaiken and Stangor, 1987). Thence, this research showed a good attitude towards advertisement on mobile phones leads to a favorable trend in perception and emotion to mobile advertising. The level of trust and attitudes towards mobile advertising is explained and predicted by the accepment mobile advertising in the application of TRA and TAM. According to Davis et al. (1989), awareness of intents are determined by useful perception, while emotions are expressed by attitude. Attitudes become an active intermediary between useful cognitive trust and acceptance. Previous studies have tested the relationship between attitude and acceptability of mobile advertising and these two variables have a strong positive correlation (Bauer et al. 2005; Kuo and Yen 2009; Soroa-Koury and Yang 2010; Tsang et al. 2004; Xu et al. 2009). A research effort focused on young consumers also shows the correlation of this relationship. Muk and Babin has found the acceptance of SMS advertising of college students affected by the attitude since 2006. Radder et al (2010) found a relationship between attitudes toward SMS advertising and behavioral intentions, which applied SMS marketing to high school students. Therefore, we posit that: H2: The better the consumers’ attitude toward mobile advertising, the better the consumers’ mobile advertising acceptance 2.2.3. Emotional factors of state of mind towards cellphone advertising: irritation and entertainment The investigation of feelings seems to be a customary field in showcasing study (Aaker and Bruzzone, 1985; Wells et al., 1971). Among feelings, stimulation seems to be one of the six essential measurements while investigating individual responses to Kỷ yếu Nghiên cứu khoa học sinh viên UEH 2019 40 advertisement (Wells et al., 1971). Stimulating advertisements were portrayed as some induvidual creating disappointment and transitory eagerness (Aaker and Bruzzone, 1985). Which reasons make the customers feel mobile advertising uncomfortable? The young users took their concerns for trading intrusion through their cellphones were demonstrated by Grant and O’Donohoe (2007) ,and some recently survey also indicated that inrush can prompt to stimulation (Edwards et al., 2002). Mobile advertising can provide distraction and overwhelming consumer information (Stewart & Pavlou, 2002), it may be viewed as inrush in the privacy of mobile clients. Liu et al (2012) suggest that customers baffled by advertising and negative reaction to it, and the stimulation due to the advertising messages on mobile phones can not understand or unwanted can negatively reflect the perceived value of mobile advertising. This seems to be reliable with writings on disturbance that examines stimulation maked by a promotion as a result of apparent meddling evoked by the advertisement (José et al 2013). For instance, business breaks hinder audience members' objectives of viewing a TV program (Edwards et al., 2002). Irritation well known to be a groundwork to the creation of state of mind (Aaker and Bruzzone, 1985; Aaker and Stayman, 1990) and the response of an important and relevant customer to the advertisement (De Pelsmacker and Van Den Bergh, 1998). The writing survey demonstrates "stimulation dependably prompts a more adverse disposition towards the ads (De Pelsmacker and Van Den Bergh, 1998, p. 6). Aaker and Stayman (1990) discovered a critical impact of stimulation on adverse demeanor to the ad. In a portable promoting setting, late study (Tsang et al., 2004; Van der Waldt et al., 2009) likewise observed bothering to be a element that impacts demeanor toward versatile publicizing. Grant and O'Donohoe (2007) discovered youngsters related business allotment of cell phones with stimulation, inrush and doubt, so We wait for their stimulation with portable publicizing adversely impacts their state of mind towards versatile promoting. Along these lines, the accompanying speculation is set: H3. Irritation generated by mobile advertising negatively affects consumer attitudes toward mobile advertising. Entertainment is recognized as an emotional element adding to the arrangement of purchasers' states of mind towards promoting (Wang et al., 2002Pleasurable settings – IMDS 113,5 736 like those supported by entertainment – and disposition status conveyed by these settings impact mentalities toward the advertisement (Moorman et al., 2002). It has likewise been recognized that users' sentiments of pleasure related with notices assume the best part in representing their general states of mind to the advertisements (Shavitt et al., 1998). Grant and O'Donohoe (2007) discovered that youth purchasers' dominant promotion for cell phones was advantageous entertainment – through messaging, verbal discussion and now and then web administrations – "at the touch of a button". Customers who see Kỷ yếu Nghiên cứu khoa học sinh viên UEH 2019 41 happier and more pleasure with utilizing cell phones have a tendency to exhibite more uplifting states of mind toward versatile promoting (Tsang et al., 2004; Pedersen and Nysveen, 2002; Saadeghvaziri and Seyedjavadain, 2011). Coulter, Zaltman and Coulter (2001) demonstrated that entertainment is a significant value customers seek in advertising. Besides, when consumers see the advertisement in recent, entertainment became a factor that they care (José et al, 2018). Henceforth the accompanying theory is placed: H4. Entertainment created by mobile advertising positively influences consumer attitudes towards mobile advertising. Writing discovered proof of a negative connection among entertainment and stimulation. Hausman and Siekpe (2009) indicate that they were contrarily and altogether connected in an electronic trade setting. In a common problem, the absence of entertainment has received incomplete help as a precondition for stimulation (Herna'ndez et al., 2004). Tsang et al. (2004) also demonstrate the valuable entertainment appears to decrease the stimulation experienced by customers when they are presented to versatile publicizing – particularly when this experience happens in a non authorization based setting. Grant and O'Donohoe (2007) discovered young users were utilizing their cell phones essentially for social and entertainment purposes. This finding recommends that the entertainment value of portable promoting (i.e. through marked versatile videogames) could impact the negative influences on portable publicizing apparent by young people. In this manner, the accompanying speculation is set: H5. Entertainment perceptions of mobile advertising negatively influence consumer irritation for mobile advertising. 2.2.4. Cognitive Attitudinal Factors for Mobile Advertising: A Practical Perspective The relationship between utility and perceived attitudes is demonstrated by the "expecting-value” model (Fishbein and Ajzen, 1975) that attitudes contra behavior depend on the expected outcome. Useful insights have been found to account for a significant number of differences in attitudes toward mobile advertising among young consumers (Karjaluoto et al., 2008; Kleijnen et al. a, 2004). Though Grant and O'Donohoe (2007) find that commercial communication is accepted to young consumers if it connects to content that they be able to access, for example: concert tickets for sale in an hour. Due to they always bring their mobile phones with them, hence this access to mobile advertising for young consumers "sense of privilege, access to valuable information" (Grant and O'Donohoe, 2007, p. 239) that could be related to the usefulness of recognizi