Consumer Responses to SMS Advertising: Antecedents and Consequences

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Consumer Responses to SMS Advertising: Antecedents and Consequences 1. Dimitris A. Drossos * Department of Information and Communication Systems Engineering University of the Aegean Lymperis Building, office B11, GR 83 200, Karlovassi, Samos, Greece tel.: +30 22730 82227 [email protected] * Corresponding author 2. George M. Giaglis Department of Management Science and Technology Athens University of Economics and Business Lefkados 33 & Evelpidon 47A, office 907, GR 113 62, Athens, Greece tel.: +30 210 8203682, fax: +30 210 8203682 [email protected] 1

Transcript of Consumer Responses to SMS Advertising: Antecedents and Consequences

Consumer Responses to SMS Advertising:

Antecedents and Consequences

1. Dimitris A. Drossos *

Department of Information and Communication Systems Engineering

University of the Aegean

Lymperis Building, office B11, GR 83 200, Karlovassi, Samos,

Greece

tel.: +30 22730 82227

[email protected]

* Corresponding author

2. George M. Giaglis

Department of Management Science and Technology

Athens University of Economics and Business

Lefkados 33 & Evelpidon 47A, office 907, GR 113 62, Athens,

Greece

tel.: +30 210 8203682, fax: +30 210 8203682

[email protected]

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3. Pavlos A. Vlachos

ALBA Graduate Business School at The American College of Greece

6-8 Xenias Str., GR115 28, Athens, Greece

tel.: +30 210 8964531-8, fax:+30 210 8964737

[email protected]

4. Efpraxia D. Zamani

Department of Management Science and Technology

Athens University of Economics and Business

Lefkados 33 & Evelpidon 47A, office 103, GR 113 62, Athens,

Greece

tel.: +30 210 8203682, fax: +30 210 8203682

[email protected]

5. George Lekakos

Department of Management Science and Technology

Athens University of Economics and Business

Ydras 28, GR 11362 Athens, Greece

tel.: + 30 210 8203921, fax: +30 210 8203664

[email protected]

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Dimitris A. Drossos is Lecturer of eBusiness at the Department of

Information and Communication Systems Engineering of the

University of the Aegean. His main teaching and research

interests focus on the area of eBusiness (emphasizing on

electronic marketing and wireless services). He has numerous

publications in international journals and conferences including

the International Journal of Electronic Commerce, Behaviour and

Information Technology and the European Marketing Conference.

George M. Giaglis is Professor of eBusiness at the Department of

Management Science and Technology of the Athens University of

Economics and Business, Greece. His main teaching and research

interests lie in the areas of eBusiness (emphasising on mobile

and wireless applications and services), pervasive and ubiquitous

information systems, technology-enabled business process

redesign, business process modelling and re-engineering,

information management, and information systems evaluation. He

has published more than 150 research articles in leading journals

and international conferences, including the Information Systems

Journal, the International Journal of Electronic Commerce, and

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the International Journal of Information Management. He is a

member of the editorial board of seven journals, including

Telecommunications Policy, the International Journal of Mobile

Communications and the Journal of Enterprise Information Systems.

Pavlos A. Vlachos is Assistant Professor of Marketing at ALBA

Graduate Business School at the American College of Greece. He is

teaching Research Methods & Marketing Analytics. His research

lies in the area of corporate reputation and particularly in the

areas of corporate social responsibility and corporate abilities.

His work has appeared in Journal of Business Ethics, Journal of

the Academy of Marketing Science, Industrial Marketing Management

& European Journal of Information Systems among others.

Efpraxia D. Zamani is Doctoral Researcher at the Department

of Management Science and Technology of the Athens University of

Economics and Business, Greece. Her research interests lie in the

areas of mobile and portable information systems, user experience

and the sociological aspects of technology. Her doctoral research

is co-funded by the Hellenic Ministry of Education, Lifelong

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Learning and Religious Affairs (Herakleitos II PhD Fellowship)

and the European Social Fund.

Dr. George Lekakos is Assistant Professor at the Department of

Management Science and Technology, Athens University of Economics

and Business, Athens, Greece. He has published over 45 articles

in leading international journals and academic conferences such

as User Modeling and User Adapted Interaction, Information

Systems Journal, Journal of Advertising etc. His research

interests are in the areas of e-business, digital marketing,

consumer behavior, and information management. 

Abstract

Mobile phone advertisements, in the form of text messages (SMS),

have been recognized as an important form of product promotion.

The purpose of this paper is to investigate factors influencing

the effectiveness of SMS advertising by using a hierarchy of

effects approach. We employ a simulated experiment with 736

respondents to examine how consumers react to SMS advertisements

and identify factors that influence their attitude towards the ad

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(Aad), attitude towards the brand (Ab), and purchase intention

(PI). Perceived ad credibility, attitude towards mobile

advertising, message appeal, argument quality, incentive, product

involvement and interactivity were found to be antecedents of

Aad. Moreover, there is a clear link between attitude and

behavioral intention. The study is amongst the first to provide

an experimental-based assessment and a unified model linking

consumer attitudes towards mobile text ads with brand attitudes

and purchase intentions.

Keywords: mobile advertising, SMS, advertising effectiveness,

attitude, purchase intention

IntroductionWith the proliferation of the mobile phone as a viable

advertising channel, it has become particularly essential to

understand how and to what extent mobile advertisements impact on

consumers’ mindset. Admittedly, the most popular form of mobile

advertising is texting; being compatible with all mobile devices,6

it allows companies to reach a wider audience, unlike other

mediums, as for example multimedia messaging service (MMS). As a

result, market reports forecast text advertising’s continuous

growth . Moreover, if advertisers want to be in the market with

creative, relevant and impactful mobile marketing campaigns, they

need to base their marketing strategies upon a clear

understanding of consumer behavior . However, despite text

advertising’s market penetration, so far only few studies have

examined critical factors determining its success and evaluating

consumer behavior .

To date, the majority of consumer behavior studies have mostly

relied on the Stimulus Organism Response paradigm. Content

analysis on publications of the leading marketing journals from

1980 (Journal of Consumer Research, Journal of Marketing, and Journal of

Marketing Research) demonstrates that more than seventy papers

measuring both attitude towards the brand (Ab) and purchase intention (PI)

have been published. An overwhelming majority of these studies

reported results based on the attitude towards the ad (Aad) framework .

Despite the abundance of research covering many aspects of the

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mobile medium , the review of the literature identified a limited

number of studies focusing on the application of traditional

advertising models to the mobile context .

Moreover, traditional models of consumer buying processes may be

substantially affected by the characteristics of new marketing

media, as in the case of the internet . Mobile advertising (m-

advertising) has some distinct features, which differentiate it

from traditional channels of advertising, mainly those of

interactivity and ‘localization’. Definitions of interactivity

from the communicator's perspective tend to emphasize

interactivity as the ‘potential adequacy’ of an interaction

system that facilitates two-way communication while, from the

audience's perspective, researchers tend to treat interactivity

as an individual trait . Thus, in contrast to mass promotional

communication, mobile advertising permits a two-way

communication, even on a 24/7 basis. Next, when referring to

localization, the advertisements sent to a user can also be

location sensitive, meaning that the mobile phone user can be

informed in a timely manner about various on-going offers in

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surrounding areas. This differentiates mobile advertising from

traditional media and even from fixed internet advertising.

Location-based services (LBS) continue to boast millions of

unique users every month and major service providers heavily

invest in LBS; for example, Foursquare allows users to check-in

to venues, Google Latitude and Find My Friends let users see

their friends on a mobile map, while Twitter launched its geo-

location feature in March 2010. Therefore, due to this ongoing

investment in geo-location services, it is crucial to examine the

impact of location-based advertising on the consumer mindset.

The purpose of this study is to examine how well-known consumer

behavior models perform within the boundaries of this new medium.

The study focuses specifically on SMS advertising, as it is the

most frequently used medium, with prospects for further growth.

Moreover, we consider the specific medium as particularly

valuable for further insights as any deriving results can be

transferred to other types of mobile advertising, too, since they

exhibit similar characteristics to texting, as for example,

Google Ad Sense Mobile Text Ads. The study adopts Aad, Ab, and PI

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as its central effectiveness criteria and, following well-known

theories, i.e., the Elaboration Likelihood Model (ELM) of

persuasion and the Persuasive Hierarchy Framework , attempts to

conceptualize their structural antecedents within the mobile

advertising context. In addition, it examines how a location-

sensitive advertisement is altering consumers’ mental and

affective processes.

Literature ReviewGenerally, researchers study the effect of various ad appeals or

formats of execution on consumers’ mental processes along the Aad

Ab PI paradigm. In this study, Aad is the key construct to

evaluate advertising effects. Previous research on m-advertising

has pinpointed several interesting findings concerning Aad and

its determinants . Preliminary results indicate a stronger focus

on incentive, interactivity, appeal, product involvement, and

attitude towards SMS advertising in general. Specifically, these

constructs seem to directly influence attitude towards the ad (Aad),

attitude towards the brand (Ab), and purchase intention (PI). As a result, we10

focus here on these six core variables that have been found to

influence Aad and attempt to investigate them in parallel with

established antecedents of Aad drawn from the traditional

advertising literature.

Our theoretical framework builds primarily upon the theory of

Planned Behavior and the Persuasive Hierarchy Framework , which

suggests that there is “an order in which things happen, with the

implication that the earlier effects, being necessary

preconditions, are more important” . Within this line of thought,

the underlying paradigm dictates that the cognition stage leads

to affective responses, which in turn, are interpreted into

behavioral responses, allowing all the while a flexibility in

increasing or refining the number of these stages . For the

purposes of our study, within the cognition stage, we examine

several antecedents of Aad and approach them as having an impact

on one’s attitudinal responses towards both the ad and the brand,

i.e., Aad and Ab respectively, and which eventually may form one’s

behavior (PI). Building on this framework, we introduce Aad as a

self-regulatory sub-process in order to explain more

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comprehensively the mechanisms that link structural elements of

the SMS advertising campaign to evaluative and behavioral

outcomes and approach the concept as “comprising solely an

evaluative or affective response to the commercial stimulus

[which] does not refer to cognitive or behavioral responses” . In

addition, as the hierarchy model allows us to increase the number

of examined stages, we refine our framework by introducing Ab as

well. Previous studies have shown that there is a positive

relationship between Aad and brand-related beliefs and attitudes,

i.e., Ab , while several others, building upon traditional

theories of attitude formation, have exhibited Ab’s strong

positive impact on one’s intention to buy the particular brand or

product .

Finally, in our study, Aad’s antecedents derive from Muehling and

McCann’s taxonomy , who classify them across three categories:

personal / individual, ad-related, and other factors. Nevertheless, we

enrich this categorization with unique mobile context-specific

antecedents. These are discussed in more detail next.

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Personal / individual antecedents of Aad

As personal/individual factors are considered those that depend

upon the ad processor, i.e., the consumer . Advertisement credibility,

attitude towards advertising in general, and mood are among the first

antecedents that were empirically tested and it has been

established that they exert an influence on Aad . To begin with,

advertisement credibility is considered as one’s perception that ad-

claims are truthful and believable ; if consumers don’t find the

advertisement to be credible, they will most probably form a

negative Aad. Mackenzie and Lutz , while presenting a theory on

Aad formation, reported that advertisement credibility was a significant

antecedent of Aad. We therefore hypothesize that

(H1) SMS ads that are perceived as more credible will lead to more positive Aad, than

SMS ads that are perceived as less credible.

Attitude towards advertising has been studied within the context of

several communication channels as researchers have long been

interested in its relationship with Aad. It has been shown that

overall attitude towards advertising affects Aad and that people with

more favorable feelings about advertising in general find

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advertisements more acceptable, enjoyable, and informative .

Consequently, we hypothesize that

(H2) Aad will be more positive when a consumer has a positive attitude towards m-

advertising in general, than for a consumer that has a negative attitude towards m-

advertising in general.

Mood refers to the recipient's general feelings and emotions at

the time of exposure to the ad, and being an affective state, it

is thought to have a negative or positive impact on Aad .

Furthermore, we examine demographic characteristics, specifically

education, gender, age and income, because they have been shown

to also play a role in influencing one’s attitudes and

intention . We treat mood and demographic characteristics (i.e.

education, gender, age and income) as control variables aiming to study

their effect on the remaining variables.

Ad-related antecedents of Aad

Message appeals are usually divided into rational and emotional ones

. Rational appeals are normally based on factual information,

while emotional ones usually intend to create positive emotions14

and to develop a brand personality. It can be assumed that

consumers are more interested in informative messages when a new

brand is advertised; the consumer, if involved with the product

category, will be more interested in learning about this new

brand via rational and objective product information. On the one

hand, in cases of unfamiliar brands with which one is unfamiliar,

we posit that (s)he will more than likely seek utilitarian-

related information rather than succumb to the emotional appeal

of advertisements. Specifically, in such cases, we assume that

the quality of information will be more important as it will

include price- or features-related information, adding insight to

consumers’ understanding. In contrast, in the case of an existing

and well-known brand, a positive emotional message might be more

effective in supporting the brand, acting as a peripheral cue

according to ELM , since the consumer will be already familiar

with the brand’s utilitarian characteristics.

Setting this within the mobile context of our study, and

specifically for the case of texting advertisements, one needs to

keep in mind that SMS ads entail length constraints. As

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previously discussed, in the case of new brands, consumers are

expected to pay greater attention to utilitarian-related

attributes. This, combined with the imposed character limit, may

further exacerbate the need for accuracy, usefulness and

informativeness of the transmitted message.

In our study we experimented with fictitious brands because prior

familiarity with the advertised brands could potentially confound

our results. We therefore hypothesize that in the case of

fictitious brands

(H3) SMS ads that use rational appeals lead to more positive Aad, than SMS ads that

use emotional appeals.

Argument quality (AQ), defined as the valence of thoughts evoked by

an argument , may influence consumer attitudes. It has been shown

that consumers, after having been exposed to an advertisement, do

form perceptions about the weakness or the strength of the

presented argument while the ELM presupposes that elaboration of

a message exists when people generate positive thoughts when

exposed to strong arguments and negative thoughts when exposed to

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weak arguments. Moreover, when a person engages in greater

message elaboration, the quality of the arguments has a greater

impact on his or her attitudes compared with low message

elaboration . Previous research suggests that AQ has a greater

impact on persuasion . We thus develop the following hypothesis:

(H4) SMS ads that use strong arguments lead to more positive Aad, than SMS ads that

use weak arguments.

Aad has been conceptualized as having both cognitive and

affective components and it seems reasonable that advertising

elements which necessitate information processing (e.g., product

claims, price information) may affect it . In more detail, ads

that communicate an offer and which consumers perceive as having

a good value for money could lead to more positive Aad. In line

with this, Barwise and Strong , while examining incentive-based

mobile advertising campaigns, reported that the reward system

strengthened the participants’ acceptance of the text ads.

Similarly, Tsang et al. reported that the intention to receive

mobile ads was affected by the incentive associated with the ad

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and that the respondents were more willing to accept incentive-

based mobile advertising. As a result, we hypothesize that

(H5) SMS ads offering incentives lead to more positive Aad, than SMS ads with no

incentives.

Other antecedents of Aad

Product involvement also seems to exert an effect on Aad.

According to the FCB Grid , products differ in their ‘feel’ or

‘think’ nature and are mapped on a 2x2 grid depending on the

individuals’ amount of involvement (high/low) along the

dimensions of cognitive and affective information processing

during the formation of purchasing decisions. More specifically,

when individuals base their purchase decisions on sensory

stimulation and other affective factors, i.e., how they feel

about a product, then the product is characterized as ‘feel’.

Similarly, when individuals base their decisions on their

utilitarian needs and the product’s performance, both requiring

to be cognitively processed, then the product is characterized as

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‘think’ . In both cases, products may require high or low

involvement on behalf of the consumers.

The mobile context is likely to negatively affect attitudes for

high involvement products due to SMSs’ inherent limitation in

conveying a sufficient amount of information. In addition, the

Elaboration Likelihood Model suggests that the level of

involvement has an impact on one’s motivation to process

information. Specifically, individuals faced with products of

higher involvement may be keener to explore more product-specific

information. A possible explanation for the effect of product

involvement on consumer attitudes can be found in cognitive

resource allocation literature. According to previous research ,

an advertisement’s impact on the overall evaluation of a given

brand may be influenced by the relationship between the required

cognitive resources to process the message, and those actually

available for processing. Furthermore, they also suggest that any

message will augment its persuasive strength, provided that there

is a balance between required and available cognitive resources.

However, it is likely that the SMS length limitation, which

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prohibits SMSs ads from effectively communicating all the

necessary information for a high involvement product, will

counteract most of the positive message elements that the

persuasive communication was meant to convey. This argument finds

support in Kannan et al.’s study , who proposed that the wireless

context can significantly increase the frequency of impulse

purchases, especially of low value, low involvement products.

They argue that, since wireless communication enables instant

gratification and immediate fulfillment of a need, this could

have a positive impact on consumers’ impulse purchase behaviors.

Hence, we hypothesize that

(H6) SMS ads that advertise low cognitive involvement products lead to more positive

Aad, than SMS ads that advertise high cognitive involvement products.

(H7) SMS ads that advertise low affective involvement products lead to more positive

Aad, than SMS ads that advertise high affective involvement products.

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Mobile Context and Aad

Mobile advertising belongs to the class of context-aware

applications because it identifies the context within which the

individual user is operating. Moreover, context, particularly for

the case of context-sensitive advertising, is frequently

determined by the user’s location . This has turned location-

based advertising into one of the most interesting opportunities

that mobile commerce has to offer; aside its impact on perceived

information utility, it often entails the strategic positioning

of advertisements near places where buyer behavior can be easily

influenced and quickly converted into a sale.

Two studies have empirically verified the relationship between an

advertisement’s effectiveness and its positioning . Bruner II and

Kumar reported that consumers exhibited a slightly negative

attitude towards receiving location-based advertising, while

Gopal and Tripathi found that the distance between the retail

location and the point of ad delivery had a significant impact on

the respondents’ recall of ads. However, to date and to the

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authors’ knowledge, no study has examined the direct relationship

between location and Aad.

In this study, location-based SMS advertising is considered as

sending information to consumers based on their location, in

order to persuade them into visiting a physical store and buying

the advertised product. Drawing from consumer behavior theory ,

time and location are two interdependent dimensions, and

targeting prospective customers at the right time and place needs

to require only the minimum perceived effort for a given customer

to buy the advertised product. However, measuring actual time

(e.g., 11:00 p.m.) and location by distance (e.g., 2 km away from

the point of sale) seems inadequate to fully capture the notion

of ‘right’ time and place. We therefore approach time and

location by examining them through one’s perceived effort to buy

the advertised product . It is thus hypothesized that

(H8) SMS ads lead to more positive Aad when the perceived effort to buy the advertised

product is low.

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The literature on mobile business and commerce highlights the

role of interactivity within the mobile context. Kannan et al.

draw attention to the potential of “continuous wireless

interactivity” by pinpointing the key difference between Internet

and mobile commerce and arguing that, within the mobile context,

consumers can continue their interaction with any aspect of their

commercial activity irrespective of their location and movement.

Kavassalis et al. discuss about the “continued dialogue”, a

loyalty creation/maintenance type of communication when marketers

succeed in creating the necessary conditions for continuous

interaction with customers via mobile channel.

Interactive advertising enjoys numerous definitions. Virtually

all of them suggest that information is broadcasted through

technological means (e.g., a computer, a mobile telephone) and

that there is a mutual, relatively immediate interaction between

consumers and marketers . Mobile ads’ interactive elements

attempt to elicit cognitive responses by allowing the user to

search for additional information. Therefore, interactivity aims

to increase user involvement by creating a two-way communication

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in real time, instead of the traditional one-way media

advertising. In our study, we examine interactivity by adopting

the “communicator’s perspective” which treats it as an objective

characteristic of the ad and which suggests that if a mobile ad

allows for reciprocal communication, then the particular ad will

be considered as more interactive compared to some other ad with

no such feature . Acknowledging that previous research has shown

interactivity to be positively associated with ad and product

attitudes , we hypothesize that

(H9) The interactive elements of an SMS ad are positively related to Aad.

The Aad-Ab-PI RelationshipSignificant research has been carried out on the causal

relationship among Aad, Ab, and PI towards explaining advertising

effectiveness . Generally, research in advertising suggests that

a favorable Aad helps to create a favorable Ab, which in turn has

a positive impact on the PI. Although these relationships may not

be directly causal and there may be some intervening components,

the literature in support of the aforementioned is relationships

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is quite extensive, and the majority of findings indicate that

the order of effects is robust .

Towards identifying the role of SMS advertising and its impact on

persuading consumers, our research entailed the use of

unfamiliar, i.e., hypothetical brands as the experimental

stimuli. As far as unfamiliar brands are concerned, extant

literature suggests that there is a direct linkage between Aad

and the attitude towards the brand; “indeed, it is reasonable that a

single exposure to a likeable ad should influence attitudes for a

brand that individuals previously knew nothing about” . We

therefore hypothesize that in the context of SMS advertising

(H10) Aad is directly and positively associated Ab.

Product involvement is included in this study to examine not only

its direct effect on Aad, but also its potential as a moderator

of the Aad - Ab relationship. Rossiter and Percy suggest that the

Aad-Ab relationship may be stronger for low rather than for high

involvement products. Moreover, research in persuasion studies

illustrates that consumers in high product involvement situations

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process information differently from those in low product

involvement situations . Drawing from the Elaboration Likelihood

Model and the Combined Influence Hypothesis, Aad is hypothesized

to influence significantly higher outcome variables such as Ab

and PI when product involvement is low. Thus, it is assumed that

as product involvement increases, Aad's influence on Ab will

decrease.

(H11a) The strength of the Aad-Ab relationship decreases, as cognitive product

involvement increases.

(H11b) The strength of the Aad-Ab relationship decreases, as affective product

involvement increases.

Advertising literature suggests that there is a correlation

between Ab and purchase intention. Specifically, Spears and Singh

found support for this relationship within the attitude towards the ad

theoretical framework and in more detail that attitude towards the

brand will motivate consumer’s intention to react to a particular

stimulus. According to this view, upon exposure to a commercial

message, the authors found that one’s attitude mediates cognitive

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and affective effects on a specific behavioral intention, such as

buying a product.

(H12) Ab is directly and positively associated with PI.

In addition, several studies have shown that there is a direct

impact of Aad on PI, further to its indirect influence through Ab

(Figure 1). In support of the direct effect of Aad on PI, Lord et

al. claim that the antecedents and consequences of Aad are too

broad and complex to be accurately captured by the assertion that

Aad is merely a peripheral cue.

--INSERT FIGURE 1 HERE--

Numerous studies (e.g. ) provide evidence for a direct

relationship between Aad and PI under certain circumstances. For

example, consumers may arrive to a purchase decision without

having completely processed all brand information . In the

context of our study, the developed ads promote fictitious

brands. As a result, they contain arguments of moderate quality

and strength and use minimal copy, thus providing limited

information. This suggests that participants’ evaluations, as

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stimulated by the ads, are expected to be affective in nature

rather than analytical. In turn, the participants’ affective

response can potentially influence their purchase intention

directly, without Aad’s indirect effect through Ab .

(H13) Aad has a direct and positive impact on PI.

Table 1 provides a summary of all our hypotheses.

--INSERT TABLE 1 HERE--

Research DesignBased on previous findings, we include in our research six key

variables for the purposes of our field experiment . These are

localization, interactivity, incentive, appeal, cognitive and

affective product involvement. According to the number of

variables, our experiment requires a 26 between-subjects

factorial design, having a total of 64 cells. We moreover

preferred a between groups over a within groups experimental

design because the first manages to handle ‘learning effects.’

Hair et al. suggest a minimum of 20 participants per cell, which

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demands nearly 1.280 responses. To reduce the requirements

regarding the number of participants, the duration of the study,

and the necessary budget, we used one-half fraction of the

originally envisaged factorial design. This resulted in 23

participants per cell and 736 responses overall. Moreover, the

employed 2-level fractional factorial design has the desirable

properties of being both balanced and orthogonal.

SampleWe used stratified sampling in order to include all the important

sub-populations and to increase the generalizability of our

results. Stratified and quota sampling techniques are used quite

extensively in street interviewing and both fit rather well with

the purposes of our experiment, which entailed that all

interviews had to be conducted within a natural setting. During

the first stage, we developed the control characteristics

(strata) and assigned the population into age and gender quota.

Next, we used proportionate stratified sampling to ensure that

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the gender stratum was proportionate to the relative size of that

stratum in the total population.

Stimulus DesignPre-test 1. Drawing from similar studies in the advertising and

consumer behavior literature , we selected initially thirteen

different product categories in order to decide on the products

that would allow us to test the hypotheses regarding product

involvement. The product categories were were: soft drink,

deodorant, cold remedy, chocolate bar, vitamins, potato chips,

shampoo, DVD player, toothpaste, perfume, sun glasses, DVD-RW,

and batteries. Pretesting allowed the identification of four

products, fitting the following four criteria: (1) each product

belonged to one quadrant of the cognitive – affective involvement

grid, (2) all products were relevant to the target sample, (3)

they were low cost products, and (4) they were nondurable,

frequently purchased items. The semantic differential items of

cognitive and affective involvement have been employed here in

the manner proposed by Putrevu and Lord . An independent sample

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of 120 subjects has been asked to rate its involvement with the

13 product categories; a soft drink (low in both cognitive and

affective involvement), a nonprescription cold remedy (high

cognitive involvement, low affective involvement), a chocolate

(low cognitive involvement, high affective involvement), and an

antiperspirant (high in cognitive and affective involvement) were

selected as the test products.

Pre-test 2. Results from empirical studies show that there are

differences in the performance of ads for familiar and unfamiliar

brands and that familiarity with the brand can potentially

confound the effects of traditional and online advertisements .

Therefore, in order not to convey unintended information via the

brand name, the four products were given fictitious names during

this experiment. These names were developed using the feedback

from a focus group consisted of 5 PhD and 3 MBA students,

according to the recommendations of Martin, Lang and Wong , i.e.

aiming to meet the following two conditions: (1) avoid phonetic

similarity to existing brands and (2) avoid “suggestive” names

(e.g., PicturePerfect camera) that could lead to higher recall

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via associative strength theory of memory for new brand names.

The selected brand names for the soft-drink, the non-prescription

cold remedy, the chocolate bar, and the antiperspirant products

were Rico-cola, Cenatol, Goldy and Ezan, respectively.

Pre-test 3. The purpose of this pretest was to control for the

effects of confounding variables due to the information contained

in the ads. Initially, product attributes for all the product

categories were chosen from real advertisements used in several

advertising media (e.g., magazines, Web). These attributes were

tested with the help of 120 independent participants on the basis

of their importance using a 7-point semantic differential scale,

ranging from “not important to me” to “important to me”. All

means exceeded the scale midpoint (4.08 to 6.78), confirming the

attributes’ relevance for the target population and from which

experimental subjects were next drawn for the purposes of the

final field experiment. In addition, the arguments contained in

the advertisements for testing hypotheses were also selected on

the basis of a preliminary study, where different arguments were

tested for persuasiveness, comprehensibility, and familiarity and

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emotional versus rational appeal following Petty and Cacioppo .

Arguments of equal persuasiveness, comprehensibility and

familiarity, were selected to avoid confounding effects.

Pilot testA pilot test using a different independent sample was conducted

having two main objectives: (1) to check the proposed

experimental manipulations concerning the six factors (location,

interactivity, incentive, appeal, cognitive involvement,

affective involvement) and (2) to check the construct validity

and the reliability of the employed scales. Street interviews

with 64 participants were conducted following the requirements of

the final field experiment. According to our findings, the scale

of interactivity did not fit well in the context of SMS

advertising and therefore it was verbally modified. All other

objectives of this phase were successfully met.

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MeasuresThe questionnaire was organized into sections corresponding to

our study's research questions. Initially, the participant was

exposed to the SMS ad and afterwards rated her/his attitude

towards the ad, the brand and purchase intention. Attitude

towards the ad was measured immediately as research shows that ad

attitude effects disappear quickly while delays in measuring ad

attitude can lead to consumers’ inferences partially from their

general attitudes towards advertising . Manipulations checks and

additional variables followed. Table 2 presents the measurement

scales.

--INSERT TABLE 2 HERE—

ProcedureRespondents were intercepted while they were exiting a central

metro station. This allowed us to measure the exact distance from

the point of sale for the purposes of location manipulation.

Participants were randomly assigned to each of the 32

experimental conditions and read the instructions on the

34

evaluation of an SMS advertisement according to the specific

experimental condition. Each SMS advertisement was described as

permission-based ad and was shown to the participants via a

mobile phone to increase external validity. Participants were

then asked to rate their attitudes towards the ad, the brand and

purchase intention. Computer-assisted personal interviewing

(CAPI) was used to collect data. The entire procedure was self-

paced, and participants completed the task in approximately 10

minutes. After completing the session, participants were thanked

and debriefed.

--INSERT FIGURE 2 HERE--

Analysis and Results

Sample Our total sample consists of 736 participants, out of which 373

are female and 363 are male. 17,8% belongs to the 15-17 age

group, 18,6% to the 18-24 age group, 21,3% to the 25-34 age

group, 21,2% to the 35-44 age group and 21,1% to the 45-54 age

group. Additionally, in terms of the participants’ educational

35

level, 52,3% of the respondents had primary education, and 45,6%

studied at university level. Finally, the majority of

participants is unmarried (64,1%).

Manipulation ChecksThe information from the manipulations checks helped us determine

whether our treatments regarding the six key variables

(localization, interactivity, incentive, appeal, and product

involvement) operated as designed. Table 3 summarizes the

corresponding t-tests.

--INSERT TABLE 3 HERE--

As far as localization is concerned, results from the t-test

indicated that the two conditions were significantly different,

i.e. consumers perceived the first buying condition as more

effortful than the second. Interactivity, although ontologically

defined based on ‘communicator’s perspective’, an effort was made

to ascertain participants' perception of the ad’s interactivity

as well, by embedding a 7-point semantic differential scale

anchored by “I can communicate with the advertiser if I wanted36

to” / “I cannot communicate with the advertiser if I wanted to.”

Results, as illustrated in Table 3, show that there is a

statistically significant difference in participants' perceived

interactivity. Concerning monetary incentive manipulation, the t-

test indicated that the two conditions were significantly

different. Next, concerning the ads’ appeal, respondents,

participating in the ‘low’ experimental condition, rated the ad

significantly lower in terms of its rational appeal than those

participating in the ‘high’ experimental condition. Therefore,

the first advertisement is characterized as an ad with an

emotional appeal, while the second as an ad with a rational

appeal.

The final manipulation check concerns the cognitive and affective product

involvement. All between-product differences were statistically

significant (Table 4). Mean cognitive and affective involvement

scores for the four experimental product categories support their

correct placement within the four possible combinations of low

and high levels of cognitive and affective involvement. All

between-product differences were statistically significant at p <

37

0.001, except from the difference between soda drink and

chocolate bar, which was significant at the p < 0.05 level. The

overall results from the manipulation checks suggest that the

participants perceived the advertisements as intended.

--INSERT TABLE 4 HERE--

Method of AnalysisThe parameters of the proposed model were estimated using Partial

Least Squares modeling technique (PLS). All tests were carried

out with SmartPLS 2.0 . PLS is a powerful technique for analyzing

structural equation models (SEM) with latent variables and

multiple indicators. The particular method was chosen over other

covariance-based SEM techniques primarily as it can accommodate a

large, complex model and the various moderating effects and poses

fewer restrictions regarding the distribution of the data . The

current literature and importantly some recent Monte-Carlo

simulation studies, i.e., , have stressed the superiority of PLS

vs. CBSEM especially in cases where the goal of the study is not

parameter accuracy but rather prediction and theory development.

38

In the words of Reinartz, Haenlein, & Henseler ,“ PLS analysis should

be preferred when the emphasis is on prediction and theory development, as the

statistical power of PLS is always larger than or equal to that of CBSEM”. Our

research is largely prediction-oriented as its primary goal is to

investigate the determinants of Aad in the context of SMS

advertising, rendering PLS as more appropriate .

Assessments of Validity and Reliability

Error: Reference source not found presents the results on

the instrument’s reliability and consistency. As shown, composite

reliability (CR), an index of internal consistency, exceeds the

recommended 0.70 threshold for all constructs’, thus ensuring

the constructs’ reliability. Specifically for the case of

incentive, a value for CR is not available as it was measured using

a single item. Next, as all items loaded well on their respective

factors, much higher than all cross loading and exceeding 0.5,

and all constructs’ AVE exceeded also 0.50 we conclude that our

model meets all the conditions for convergent validity . Finally,

according to Fornell and Larcker regarding discriminant

39

validity, the square root of all AVEs needs to exceed the value

of all other cross-correlations; our model exhibits satisfactory

discriminant validity (Error: Reference source not found).

--INSERT TABLE 5 HERE--

Hypotheses Testing ResultsThe PLS modeling technique places a great emphasis on the

variance explained and the statistical significance of the path

estimates to provide evidence for a model’s predictive strength .

As illustrated in Figure 3, our model succeeds in explaining a

significant amount of variance for all three dependent variables,

namely Aad (R2= 0.52), Ab (R2= 0.39) and purchase intentions (R2 =

0.47), and most of our hypotheses are supported by the results.

As predicted, SMS ads that are perceived as more credible lead to

more positive Aad (b = 0.16, t = 4.51); therefore H1 is not

rejected. Next, attitude towards SMS advertising in general

influences Aad (b = 0.36, t = 10.79), whereas the use of rational

appeals in SMS ads lead to more positive Aad (b = 0.08, t = 2.18);

therefore both H2 and H3 are supported. The use of strong

argument quality positively influences Aad (b = 0.29, t = 8.35) as40

hypothesized. Therefore H4 is supported as well. Additionally,

our findings provide support for a direct, positive relationship

between incentive and Aad (H5 is supported). Product cognitive

involvement seems to negatively influence Aad (b = -0.04, t =

1.68). Therefore, in line with H6, when consumers perceive a

product to necessitate high cognitive involvement, they form a

negative attitude towards the SMS ad. Contrary to H7, our

results show that when consumers perceive a product to require

high affective involvement, they tend to form more favorable Aad

(b = 0.07, t = 2.04). Moreover, ads offering an element of

interactivity lead to more positive attitudes towards the ad than

those containing no interactive elements; thus H9 is supported.

Additionally, H10 is also supported by our results as Aad exhibits

a strong, positive effect on Ab (b = 0.60, t = 25.90).

To test the proposed moderating effects (i.e., H11a and H11b), we

entered the multiplicative terms into the linear-only terms model

. Composite reliability for the Aad X Affective Involvement

multiplicative variable is 0.96, while AVE is 0.68. The square

root of AVE is greater than all other cross-correlations, thus

41

indicating satisfactory discriminant validity. Similarly, the

composite reliability of Aad X Cognitive Involvement

multiplicative variable is 0.86 and its AVE is 0.26, which is

below the 0.50 cut-off value. Notwithstanding the low AVE, there

are no discriminant validity problems (i.e., AVE>γ2). AVE is

typically used, together with other indicators, for examining

convergent validity and experience has shown that AVE in latent

variable interactions is typically low. Furthermore, Ping

suggests that, for judging the validity of an interaction,

researchers should first and foremost investigate its reliability

and in this case, reliability is 0.86, far greater than the

acceptable criterion of 0.70. Also, low AVE values in latent

variable interactions indicate that their structural coefficients

and their significances will vary widely across replications .

Given these validity concerns, the results of the study regarding

the effect of Aad X Cognitive Involvement on Ab should be

considered as tentative and viewed with caution.

To investigate whether the inclusion of the multiplicative terms

in the main effects model is empirically meaningful, we used the

42

difference in R2 values . Results indicate that the addition of

the Aad X Affective Involvement and that of the Aad X Cognitive

Involvement term are empirically meaningful (Pseudo f –value =

29.2, p < 0.05). Specifically, in contrast to our predictions,

affective involvement and cognitive involvement multiply the

effect of Aad on Ab (b = 0.07, t = 2.04 and b = 0.07, t = 1.68).

However, given the validity concerns regarding the Aad X

Cognitive Involvement moderating term reported earlier and its

significance at the 0.10 level (two-tailed test), its effect on

Ab should be considered as tentative. Based on these results H11a

and H11b are rejected.

Finally, as predicted Aad positively influences purchase

intentions (b = 0.42, t = 11.06) and the same stands for the

effect of Ab on purchase intentions (b = 0.34, t = 8.61).

Therefore H12 and H13 are both supported. It should be noted that

all control variables included in the model, i.e., consumer

demographics and mood are not significant with the exception of

gender (b = 0.09, t = 3.62).

43

At this point it should be noted that as models yielding

significant bootstrap statistics can still be invalid in a

predictive sense , measures of predictive validity for focal

endogenous constructs should be employed. One such measure is the

Q2 measure, i.e., the Stone-Geisser test. Q2 is a kind of cross-

validated R2, representing how well observed values are

reconstructed by the parameter estimates of the model . The Q2

value for Aad, Ab and purchase intentions is 0.40, 0.30 and 0.41

respectively, indicating that the model’s predictive relevance is

good .

--INSERT FIGURE 3 HERE--

DiscussionThis study aims at building valuable empirical knowledge with the

goal to further the understanding of the mobile context and

especially the SMS as advertising medium. Within a still emerging

advertising setting, two different and substantial contributions

surfaced: (a) the identification of factors for successful SMS

advertising campaigns and (b) a model validating the order of

advertising effects.44

As hypothesized, ad credibility had significant, positive main

effects on Aad (H1). This finding is consistent with previous

research investigating the effect of credibility on various ad

response measures . Advertisement credibility in the SMS context

is evaluated vis-à-vis its delivered content . This type of

credibility is important in the acquisition of time-critical

information that is tied to remote transactions, inherent in

wireless communications . Technological capabilities and features

of the SMS channel have prompted concerns about the verity of

online information and the credibility of this new medium.

Reflecting on these concerns, our research offers new information

and clearly illustrates that message credibility can influence

mobile users. Viewing the consumer as an active and skeptical

reader of advertisers’ persuasion attempts, our study’s results

indicate that credible advertisements induce positive attitudes.

Next, our study shows that attitude towards an ad will be more

favorable when a consumer has a positive attitude towards mobile

advertising in general (H2). Given the pervasive nature of

advertising, it is not surprising that researchers investigated

45

attitudes and opinions regarding advertising for more than three

decades. Bauer and Greyser , in 1968, were the first to study

consumer attitudes towards advertising in general and this field

of research is still significant and relevant as overall attitude

towards advertising influences consumers’ attitude toward the ad,

which in turn is an important antecedent of attitude towards the

brand. Furthermore, studies have revealed the existence of a

rather unfavorable public attitude towards advertising , and as

our empirical data suggest, the respondents do hold negative

attitudes about receiving mobile advertisements as well. In more

detail, the mean value of overall attitude towards text

advertising was 2.64, on a 7-point Likert scale. The very

personal nature of the cellular phone, in conjunction with the

ability to reach consumers anytime and anywhere, possibly

decreases consumer willingness to adopt mobile advertising as an

advertising medium. During the adoption decision, this can result

in the refusal of an innovation , such as text advertising. As

results from many international studies demonstrate, consumers

hold negative attitudes about receiving mobile ads, while their

46

attitudes become more favorable when advertisements are sent with

permission . This implies that permission-based advertising may

become in the future a major mechanism in the mobile environment.

As our study showed, participants responded more favorably to the

informative content strategy (H3). Two explanations can be

brought forward: whereas mobile devices are perceived as ideal

for convenient anytime shopping, small screens and low-resolution

displays constitute the development of graphic applications a

challenge. In the absence of sound, image and other multimedia

formats that could effectively convey and demonstrate, for

example, the chocolate bar’s ability to satisfy a sensory need,

text advertisements may be ineffective to produce an influential

emotional appeal. In contrast, the quality of information can

play a rather crucial role. Accuracy, timeliness, and usefulness

are the primary indicators of information quality . Therefore,

for new brands of low awareness, like the ones employed for our

study’s experimental conditions, the second advertising

communication attempt may be more effective when it informs the

customer about product quality and availability.

47

In line with previous research on advertising, our study shows

that strong arguments elicit more favorable attitudes about an

advocated position, having a direct positive impact on Aad (H4).

Attitudes are considered to be a function of cognitive and

affective responses about the advertisement itself and Burton and

Lichenstein have showed that cognitive (e.g., price-related)

antecedents affect both cognitive and affective dimensions of

Aad. Specifically, the authors argue that “a variable which

necessitates some cognitive processing of information (such as a

specific claim or offer made within the copy of an ad) can affect

the attitude towards the ad” (p. 10). In addition, drawing from

the combined-influence hypothesis we can shed further insight

onto consumer response to advertising messages and arguments as

it illustrates the joint effect of central message arguments and

peripheral cues in Aad formation. As Lord, Lee and Sauer state,

“message arguments play a role in consumer response to advertising which extends

beyond their direct impact on brand beliefs and evaluation to partially determine the

favorability of a consumer's perception of a promotional message” . In our

study, building upon Petty’s and Cacioppo's Elaboration

48

Likelihood Model , we developed an empirical model which depicts

a number of determinants of Aad, including ‘central’ antecedents,

based mainly on the elaboration of message arguments. Moreover,

having acknowledged the order of Aad antecedents’ effects, we

believe that our empirical model provides further plausibility to

the concept that both central and peripheral processing play a

role towards the formation of Aad.

Additionally, our findings provide support for a direct, positive

relationship between incentive and Aad (H5). Advertisers often

employ promotional incentives, such as coupons, rebates, price

packs and contests in order to boost product sales and enhanced

technology (e.g., web, mobile networks) can significantly

contribute in helping them create more effective promotions

through targeted and precise advertisements . Interestingly, our

findings are aligned with those deriving from internet

advertising studies. Many web users are interested in reading the

incentives offered before moving on to another page . Moreover,

in most cases, promotional information, such as price reductions

or discounts in banner advertisements, can effectively solicit

49

click-through and has been shown to be associated with a higher

click-through-rate compared to banners lacking incentive offers .

Our findings indicate that users expect a reward for receiving

text advertisements, as shown by previous studies . Such

incentives typically involve more active, cognitive thought

processes and most probably allow consumers to overcome the

uncertainty that accompanies unfamiliar products, as the ones

used in our study. Finally, on a higher level, a price promotion

sent out to one’s mobile phone can constitute more than a mere

economic incentive to purchase a brand; it can serve other

functions as well and become an informational source, provided

that a prior personal experience with the advertised brand does

not exist, as in the case of new products.

H6 and H7 proposed that attitudes would be less favorable towards

SMS advertisements concerning a high-involvement product than

those concerning a low-involvement product. H6 is marginally

supported; yet caution should be added when interpreting the

particular results. The experimental SMS ads that communicated

low cognitive involvement products, compared to those

50

communicating high cognitive involvement products, did result in

attitudes with greater mean values. However, these results apply

only to “feel” products. The mobile context is likely to have a

negative impact on consumers’ attitudes for high involvement

“think” products due to its inherent limitation to convey a

sufficient amount of information. Drawing from cognitive resource

allocation research , the advertisement’s impact on brand

evaluation may be sensitive to the relationship between the

cognitive resources required to process the message, and those

available for processing it. Moreover, it has been argued that

consumers’ judgments are also affected by the aforementioned

relationship . Therefore, according to this rationale, any

message will augment its persuasion strength, provided that there

is equilibrium between the required and the available cognitive

resources.

As far as H7 is concerned, our study proposed that, due to the

length limitation that prohibits SMS ads from effectively

communicating all the needed information for high involvement

products, consumers would be more skeptical towards the positive

51

elements, which the persuasive communication was meant to convey.

However, H7 was rejected. The results indicate that as

involvement with “feel” products increases, attitude towards

advertisement becomes more positive. In our study, the “feel”

products were both experience products (chocolate bar and

deodorant), i.e., their quality could only be determined after

purchase since these brands were fictitious. Prior studies

involving product classification schemes for experience products

suggest that, on the one hand, extrinsic cues provided by other

consumers (e.g., users’ ratings, discussions, comments) tend to

weight more in customer product evaluations than do intrinsic

cues, such as color, size, style, specification or function . On

the other hand, for search products, i.e., products for which

sufficient information can be acquired through descriptions from

firms prior to purchase, customers are more likely to rely on

product specifications for forming their decision. Cognitive

resource allocation studies can provide valuable insight

regarding attitudes towards “think” products, yet they cannot do

so for affective products. We postulate that an explanation for

52

the reverse relationship between affective involvement and Aad

can perhaps be that consumers are not too skeptical about the

experience claims of ads communicating low-priced “feel”

products. Further elaborating on this, assuming that an ad

concerns a low-priced affective product, advertisers know that

consumers can try the product and therefore evaluate the claim of

the ad at a low cost. Consumers in turn may recognize that

advertisers have in fact little incentive to lie, and therefore

their skepticism about claims regarding low-priced experience

products significantly subsides .

Our findings don’t support H8. Context-sensitive technologies

allow consumers to be constantly informed about product offers at

the point-of-sale, thereby engaging them in impulse purchases.

Usually, location-based advertising deals with strategically

placing an advertisement near places where behavior can be most

immediately influenced, and converted into a sale. In the context

of our study, location-based SMS advertising has been considered

as sending information to consumers based on their location, in

order to convince them to visit a physical store. Apparently,

53

location sensitive ads cannot affect one’s attitude towards the

ad and it is reasonable that this executional variable cannot

impact a relatively enduring evaluation of the brand or/and ad.

The ubiquity of context-based SMS ads prohibits consumers from

consciously processing this feature and positively or negatively

relating it to attitudes that are stable summary evaluations.

Therefore, location based advertising appears as more likely to

affect purchase intentions and makes m-advertising an attractive

sales promotion tool in order to pull consumers into a brick and

mortar store. This is an issue for future research.

H9 posited that SMS ads offering an element of interactivity

would lead to more positive attitudes towards the ad than those

containing no interactive elements. Our study treats

interactivity as an objective medium characteristic and adopts

the “communicator’s perspective” of interactivity, which assumes

that a mobile ad catering for reciprocal communication will be

considered as more interactive than a similar ad with no

interactive features . In general, research on interactivity has

been rather inconclusive . Studies on web advertisements have

54

found interactivity to be a strong cue, assisting in the

persuasion process , while others have concluded that

interactivity has a negative effect on advertising

effectiveness . As far as our study is concerned, its findings

highlight the positive influence of interactivity. On the basis

of the field experiment conditions and sample, the mobile phone

acted as an interactive channel that enabled the message

recipient to reply instantly, without place or time constraints.

With these characteristics, the “advertisers” of the fictitious

products succeeded in establishing a direct dialogue with

potential customers.

Miniard, Bhatla, and Rose argue that the relationship between

the attitude towards the ad and that towards the brand should not

be viewed as indicative of solely peripheral persuasion. They

posit that Aad can rather serve as a determinant of Ab, even when

persuasion follows the central route. In line with the authors’

argument, our study’s findings offer support for H10. Towards

identifying the role of SMS ad-evoked effect in persuasion, our

experimental design employed the use of hypothetical/unfamiliar

55

brands as the experimental stimuli and the literature offers

evidence for a direct linkage between the Aad and the Ab

specifically for low-awareness brands; “it is reasonable that a single

exposure to a likeable ad should influence attitudes for a brand that individuals

previously knew nothing about .”

Concerning H11a and H11b, the impact of product involvement on the

Aad-Ab relationship is under debate. Although Rossiter and Percy ,

for example, suggest that the Aad-Ab relationship may be stronger

for low involvement products than for high involvement products,

we could not find support for this argument in our findings. On

the contrary, we found that as product involvement increases, so

does the strength of the Aad-Ab relationship. As our study’s

design entailed the testing of four products, we need here to

highlight that all four of them are found within the range of low

involvement; nevertheless, as shown, two are considered to be of

low and two of less low involvement. In any case, contrary to

Rossiter and Perry and Phelps and Thorson , the latter

exhibiting that the level of product involvement has no impact on

the Aad-Ab relationship, our findings show that Aad explains

56

approximately an equal amount of the Ab variance for low and less

low involvement products. We can thus safely conclude that Aad

can serve as a determinant of Ab even when persuasion follows the

central route and especially in the case of new brands .

Attitude towards the brand is positively associated with purchase

intention (H12). Prior research has yielded empirical evidence

for the distinct but related nature of Ab and PI . This holds

true also in the SMS context; as shown from our findings, there

is a strong relationship between one’s attitude towards a brand

and the tendency to buy or not the particular product. Finally,

our experimental results show that Aad has a direct effect on

purchase intention, in addition to its indirect effect via Ab

(H13). In support of this direct effect of Aad on PI, Lord et al.

claim that the antecedents and consequences of Aad are too broad

and complex to be accurately captured by the assertion that Aad

is merely a peripheral cue.

All in all, our study shows that a favorable attitude towards the

ad (Aad) helps in the formation of a favorable attitude towards

the brand (Ab), which in turn has a positive impact on one’s57

purchase intention (PI). More importantly, our findings are in

support of Aad’s indirect effect on purchase intention through Ab.

This observation points to the possibility that the hierarchy of

effects, found in the field of traditional advertising, can be

transferred to the mobile environment as well. Our findings

contribute to the body of advertising literature and in more

detail to that dealing with the mechanics of advertising. Even

though every advertising message that reaches an individual

consumer affects that consumer differently, our study suggests

that there is a series of stages between being unaware of a brand

and forming a purchase intention; positive or negative purchase

intention will occur as a result of ad information processing and

attitude formation. Although it is right to challenge this

sequencing and the logic of the hierarchy framework, the m-

advertising hierarchy of effects model can help researchers

predict behavior, regardless of how weak or limited these

predictions may be. Moreover, it can provide advertisers with

valuable information on where to focus their attention

(cognition, affect, conation) according to the targeted audience

58

or segment experiences and with a good planning, training, and

conceptual tool . Finally, our path analysis provides a new

challenge for the validity of the hierarchy framework and

possibly stimulates further research in this long-standing

consumer behavior model.

Managerial Implications The findings of the present study reveal important factors that

should be taken into account by marketers when designing SMS

campaigns. Firstly, one of the marketers’ main goals should be

the formation of positive attitude towards the ad (Aad) as a

crucial factor for successful SMS campaigns. Indeed, our study

suggests that a favorable attitude towards the ad (Aad) helps in

the formation of a favorable attitude towards the brand (Ab),

which in turn has a positive impact on one’s purchase intention

(PI).

In order to stimulate positive attitude towards an ad, the

marketer should design credible advertisements, provide quality

of arguments, and apply rational appeals even for products of

59

relatively low involvement (e.g. chocolate bars). Consumers may

seek for informative factual content eventually supported by

scientific data (e.g., nutrition information, statistics),

confirmed by some authority or supported by social proofs .

Accuracy, timeliness, and usefulness of information are also

important drivers for developing quality arguments [80].

The provision of incentives (coupons, discounts etc.) and

interactivity (as a means of communication) also generate

positive attitude towards the ad. For example, these two elements

are combined by most of the top-10 of SMS campaigns for the first

quarter of 2012 in the US1 boosting also product sales.

Moreover, Aad in the context of SMS advertising campaigns can

provide brand benefits, especially for products that are of high

cognitive and affective involvement (e.g., antiperspirant). This

is probably the case because those types of products are usually

consumed in socially conspicuous situations and are important for

consumers managing social impression projects (i.e., how they see

themselves and how others see them). Therefore for these types of

1 http://www.mobilemarketer.com/cms/news/ messaging/12633.html60

products, consumers are more alert to ad campaigns that will

likely increase their confidence of consuming a brand of high

prestige. That is why Aad has a strengthened effect on Ab in the

context of products that are of higher cognitive and affective

involvement.

On the other hand, the effect of localization of SMS advertising

on attitudes is rather weak. Location-based advertising works

best when the advertising goal is to initiate purchases rather

than influence attitudes. The marketer should also think that

“being near a store” might not drive a lot of action by the

consumer. Location-based advertising could motivate more sales

when combined with incentives, i.e. coupons, cents-off deals and

offers with attractive price promotions.

Limitations and Future ResearchAs all studies, this too comes with limitations. The sample is an

apparent one. As our study was conducted with local consumers, it

may not reflect the views of consumers from other countries.

61

Therefore, in order to reveal cultural and market differences, it

would be interesting to replicate this study in different

cultural contexts and countries. Moreover, due to environmental

conditions (e.g., street noise levels, light levels) users might

have been distracted away from the messages, facing difficulties

in focusing. Future research should examine m-advertising with a

more diverse sample, while assessing different contexts and

approaching the particular field through alternative research

strategies (e.g., content analysis).

Further on, this study analyzes the results obtained when

participants are exposed to SMS advertisements for fictitious

brands. Because these predicted effects can differ according to

brand familiarity levels, future research should address brand

familiarity as a manipulation variable. Additionally, in order to

diminish any confounding effects, we made an effort to maintain

the same words and phrases across all stimuli as much as

possible. It is likely that our findings are specific to the

experimental advertising content. Moreover, although SMS

messaging represents the most basic form of addressing consumers

62

via mobile devices, higher bandwidth allows rich and integrated

video, audio and text. It is therefore interesting to examine in

the future whether our results can hold true across other types

of multimedia content that can be delivered on mobile devices, as

some of our findings have already shown to be aligned with other

forms of advertising. In addition, we consider that several

results can be of interest to practitioners developing

advertisements for other mediums, which exhibit similar

characteristics with SMS advertising, as for example mobile

website advertising banners and advertisements within mobile

applications. Finally, examining each quadrant of the cognitive-

affective involvement grid through solely a single product

naturally limits the generalizability of our results and the

extent to which inferences can be drawn for all products

belonging within a given quadrant.

ConclusionsOur study has yielded results that provide original and

previously unpublished knowledge for SMS advertising. We contend

that not all products are suited for SMS advertising due to both

63

limitations of the medium (limited informational capacity) and

its usage (time and place sensitivity). We also point to the need

for a more systematic investigation of how antecedents of Aad

relate to Ab and PI in mobile advertising in general. For

example, in our research, location-based advertising has a weak

effect on Aad, while it would seem intuitive to link contextual

advertising directly to PI, especially targeting consumers that

buy on impulse.

REFERENCES

64

Figure 1. The direct relationship between Aad and PI

65

Figure 2. SMS advertisement for the soft-drink

66

Figure 3. Parameters of the proposed model

Notes: a) **p<0.05, *p<0.10, b) beta coefficients of the first-order constructs and squared multiple

correlations are linear-only terms model estimates, c) estimates are based on 500 bootstrap samples.

67

Table 1. Research Hypotheses

no

.

Variable

name

Hypotheses

1 Advertisemen

t

credibility

SMS ads that are perceived as more credible will lead to

more positive Aad, than SMS ads that are perceived as less

credible.

2Attitude

towards SMS

advertising

Aad will be more positive when a consumer has a positive

attitude towards m-advertising in general, than for a

consumer that has a negative attitude towards m-

advertising in general.

3Appeal

SMS ads that use rational appeals lead to more positive

Aad, than SMS ads that use emotional appeals.

4 Argument

quality

SMS ads that use strong arguments lead to more positive

Aad, than SMS ads that use weak arguments.

5Incentive

SMS ads offering incentives lead to more positive Aad,

than SMS ads with no incentives.

6 Cognitive

product

involvement

SMS ads that advertise low cognitive involvement products

lead to more positive Aad, than SMS ads that advertise

high cognitive involvement products.

7 Affective

product

involvement

SMS ads that advertise low affective involvement products

lead to more positive Aad, than SMS ads that advertise

high affective involvement products.

8 Localization

(Perceived

effort)

SMS ads lead to more positive Aad when the perceived

effort to buy the advertised product is low.

9 Interactivit

y

The interactive elements of an SMS ad are positively

related to Aad.

10Aad Ab

Aad is directly and positively associated with attitude

towards the brand (Ab).

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11

a

Product

Involvement

and Aad Ab

The Aad-Ab relationship under low cognitive product

involvement is significantly stronger, than under high

cognitive product involvement.

11

b

Product

Involvement

and Aad Ab

The Aad-Ab relationship under low affective product

involvement is significantly stronger, than under high

affective product involvement.

12Ab PI

Ab is directly and positively associated with purchase

intention.

13Aad PI

Aad has a direct and positive impact on purchase

intention.

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Table 2. Measurement scales

Constructs MeasurementsAttitude

towards

the ad

four seven-point scales with the following

anchors, “good/bad”, “like/dislike”, “not

irritating/irritating”,

“uninteresting/interesting” Attitude

towards

the brand

three seven-point scales with the following

anchors, “good/bad”, “favorable / unfavorable”,

“negative/positive” Purchase

intention

Likert-type (strongly agree/strongly disagree)

measures

“It is very likely that I will buy (brand)”, “I

will purchase (brand) the next time I need a

(product)”, “I will definitely try (brand)” Location

(perceived

effort)

2-item, 7-point scale, “The time required to

buy the product is” and “The effort that I must

make to buy the product is” Argument

quality

four 7-point semantic differential items,

“persuasive/ unpersuasive”,

“uninformative/informative”, “weak/ strong”,

“believable/unbelievable” Incentive single-item, seven-point semantic differential

scale anchored by “bad buy for the money /

excellent buy for the money” Appeal 4-item, 7-point semantic differential scale

anchored by “intangible/tangible”,

“emotional/logical”, “subjective/objective” and

“nonfactual/factual” Interactiv

ity

Two item, 7-point semantic differential scale

anchored by “I can communicate with the

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advertiser if I wanted to / I cannot

communicate with the advertiser if I wanted

to,” “encourage participation / discourage

participation” modified from Advertisem

ent

credibilit

y

Respond to the question “In the ad you just

saw, how truthful do you think the claims

were?” on a 7-point scale from "not at all

truthful" to "completely truthful”, and

“Overall, how credible do you think the claims

were?” on a 7-point scale from “not at all

credible” to “completely credible” Attitude

towards

SMS

advertisin

g in

general

3-item, 7-point semantic differential scale

anchored by “bad/good”, “negative/positive”,

“unfavorable/favorable”

Product

involvemen

t Demographi

cs

Age, gender, occupation, education

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Table 3. Manipulation checks

Variable Conditi

on

N Mean Std.

Dev.

Std. Error

Mean

t df sig.

Location Low 36

8

2.98 2.23 0.116 -

25.00

734 p <

0.001High 36

8

6.27 1.18 0.061

Interact

ivity

Low 36

8

3.11 2.34 0.122 -

8.067

734 p <

0.001High 36

8

4.55 2.48 0.129

Incentiv

e

Low 36

8

4.47 2.23 0.116 -

9.400

734 p <

0.001High 36

8

5.80 1.55 0.081

Appeal Low 36

8

3.69 1.57 0.081 -

5.008

734 p <

0.001High 36

8

4.23 1.38 0.071

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Table 4. Product Involvement means

Products Mean Cognitive InvolvementMean Affective

Involvement

Antiperspirant

(code=1)4.27 (High) 4.79 (High)

cold remedy

(code=2)5.68 (High) 3.32 (Low)

chocolate bar

(code=3)(Low) 4.68 (High)

soft drink

(code=4)2.62 (Low) 4.38 (Low)

Independent Samples Test for Cognitive

Involvement (Sig.)Mean difference

Difference

between 1 & 3p < 0.001 1.23

Difference

between 2 & 3p < 0.001 2.64

Difference

between 1 & 4p < 0.001 1.65

Difference

between 2 & 4p < 0.001 3.02

Independent Samples Test for Affective Mean difference

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Involvement (Sig.)

Difference

between 1 & 2p < 0.001 1.47

Difference

between 1 & 4P < 0.05 0.41

Difference

between 2 & 3p < 0.001 1.36

Difference

between 3 & 4p < 0.05 0.30

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Table 5. Descriptive Statistics, Correlation Matrix, and Average Variance

Extracted (AVE)

Mean CR AVE AC AI A AQ Aad Ab CI PE I IA PI ASMS

AC 3.9 0.95 0.92 0.96

AI 4.3 0.76 0.52 0.12 0.72

A 3.8 0.88 0.79 0.55 0.22 0.89

AQ 3.8 0.91 0.71 0.54 0.16 0.59 0.84

Aad 3.4 0.93 0.77 0.51 0.22 0.51 0.58 0.88

Ab 4.1 0.92 0.79 0.50 0.16 0.40 0.52 0.63 0.89

CI 3.8 0.91 0.67-

0.04-0.04

-

0.05-0.13

-

0.06

-

0.070.82

PE 4.6 0.96 0.92 0.02 -0.14 0.03 0.06-

0.02

-

0.010.13 0.96

I 5.1 N/A N/A 0.37 -0.04 0.20 0.26 0.30 0.32 0.06 0.02 N/A

IA 4.1 0.73 0.58 0.32 0.04 0.28 0.34 0.38 0.39 0.00-

0.030.25 0.76

PI 3.6 0.96 0.88 0.54 0.23 0.47 0.56 0.63 0.60-

0.16

-

0.050.34 0.35 0.94

ASMS 2.6 0.97 0.90 0.41 0.19 0.42 0.43 0.59 0.42 0.07 0.02 0.19 0.26 0.47 0.95

Notes: AC: Advertising Credibility, AI: Affective Involvement, A: Appeal, AQ:Argument Quality, Aad: Attitude towards the Ad, Ab: Attitude towards theBrand, CI: Cognitive Involvement, PE: Perceived Effort, I: Incentive, IA:Interactivity, PI: Purchase Intentions, ASMS: Attitude towards SMS advertisingin general. CR: Composite Reliability, AVE: Average Variance Extracted. N/A: not available(incentive is measured using a single item, therefore results are notavailable). Values in bold along the diagonal represent the square root ofAVE. Lower diagonal values indicate cross- correlations.

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