Perceived effectiveness of text vs. multimedia Location-Based Advertising messaging

The emergence of mobile communication and positioning technologies has presented advertisers and marketers with a radically innovative advertising channel: Location-Based Advertising (LBA). Despite the growing attention given to LBA, little is understood about the differential effects of text and multimedia advertising formats on the mobile consumer perceptions and behaviours. This exploratory study empirically examines the effects of multimedia advertisements vis-a-vis text-based advertisements on consumer perceptions and behaviours in a simulated LBA environment. A structural model was formulated to test their effects on consumer perceptions of entertainment, informativeness and irritation. Results show that multimedia LBA messages lead to more favourable attitude, increase the intention to use the LBA application, and have significant impact on purchase intention. Furthermore, this study indicates the role of multimedia as a double-edged sword: on the one hand, it suggests that multimedia impose a higher level of irritation; on the other hand, it suggests that multimedia enhance the informativeness and entertainment value of LBA. Implications for theory and practice are discussed.

[1]  James E. Haefner,et al.  Advertising in Contemporary Society: Perspectives Toward Understanding , 1986 .

[2]  Terence A. Shimp.  Attitude toward the AD as a Mediator of Consumer Brand Choice , 1981 .

[3]  Izak Benbasat,et al.  The Role of Multimedia in Changing First Impression Bias , 2000, Inf. Syst. Res..

[4]  J. Phelps,et al.  Direct marketing and the use of individual-level consumer information: Determining how and when “privacy” matters , 1997 .

[5]  Frank T. Smith,et al.  The Dynamics of Persuasion , 2008 .

[6]  Fred D. Davis.  Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology , 1989, MIS Q..

[7]  Poyntz Tyler,et al.  Advertising in America , 1959 .

[8]  Karen V. Fernandez,et al.  The Effectiveness of Information and Color in Yellow Pages Advertising , 2000 .

[9]  John Eighmey,et al.  Adding Value in the Information Age: Uses and Gratifications of Sites on the World Wide Web , 1998 .

[10]  D. McQuail.  Mass communication theory: An introduction, 2nd ed. , 1987 .

[11]  Ting-Peng Liang,et al.  Consumer Attitudes Toward Mobile Advertising: An Empirical Study , 2004, Int. J. Electron. Commer..

[12]  Artem Katasonov,et al.  Dependability of Location-Based Services: A Largely Overlooked Aspect , 2004, ICEIS.

[13]  I. Ajzen,et al.  Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research , 1977 .

[14]  M. Culnan.  Consumer awareness of name removal procedures: Implications for direct marketing , 1995 .

[15]  Arthur A. Raney,et al.  At the movies, on the Web: An investigation of the effects of entertaining and interactive Web content on site and brand evaluations , 2003 .

[16]  Venkatesh,et al.  Computer Technology Training in the Workplace: A Longitudinal Investigation of the Effect of Mood. , 1999, Organizational behavior and human decision processes.

[17]  F. Bookstein,et al.  Two Structural Equation Models: LISREL and PLS Applied to Consumer Exit-Voice Theory: , 1982 .

[18]  K. Miller,et al.  Internet users' attitude and behavioural intention on ebranding , 2006 .

[19]  H. Baumgartner.  Toward a Personology of the Consumer , 2002 .

[20]  George C. Polyzos,et al.  MOBILE MARKETING USING A LOCATION BASED SERVICE , 2002 .

[21]  Heikki Karjaluoto,et al.  Consumers' attitudes towards and intention to participate in mobile marketing , 2007, Int. J. Serv. Technol. Manag..

[22]  Lucinda D. Davenport,et al.  Audience Recall of News Stories Presented by Newspaper, Computer, Television and Radio , 1992 .

[23]  Marios Koufaris,et al.  Applying the Technology Acceptance Model and Flow Theory to Online Consumer Behavior , 2002, Inf. Syst. Res..

[24]  Robert H. Ducoffe.  ADVERTISING VALUE AND ADVERTISING ON THE WEB , 1996 .

[25]  Kai Lung Hui,et al.  What Do They Want? Motivating Consumers to Disclose Personal Information to Internet Businesses , 2002, ICIS.

[26]  Annie Lang,et al.  The limited capacity model of mediated message processing , 2000 .

[27]  A. Eagly,et al.  Attitudes and opinions. , 1978, Annual review of psychology.

[28]  Russell I. Haley,et al.  The ARF Copy Research Validity Project , 2000, Journal of Advertising Research.

[29]  Steven John Simon,et al.  An examination of media richness theory in product Web site design: an empirical study , 2004 .

[30]  Alexander Muk,et al.  Cultural influences on adoption of SMS advertising: A study of American and Taiwanese consumers , 2007 .

[31]  Scott B. MacKenzie,et al.  The Role of Attitude toward the Ad as a Mediator of Advertising Effectiveness: A Test of Competing Explanations: , 1986 .

[32]  S. Barnes.  Wireless digital advertising: nature and implications , 2002 .

[33]  Yong Zhang,et al.  Responses to Humorous Advertising: The Moderating Effect of Need for Cognition , 1996 .

[34]  Shintaro Okazaki.  How do Japanese consumers perceive wireless ads? A multivariate analysis , 2004 .

[35]  Robert R. Harmon,et al.  Perceived Effectiveness of Push vs. Pull Mobile Location Based Advertising , 2007 .

[36]  Scot Burton,et al.  Distinguishing Coupon Proneness from Value Consciousness: An Acquisition-Transaction Utility Theory Perspective , 1990 .

[37]  Franziska Marquart,et al.  Communication and persuasion : central and peripheral routes to attitude change , 1988 .

[38]  D. Berlyne.  Novelty, complexity, and hedonic value , 1970 .

[39]  I. Ajzen,et al.  Understanding Attitudes and Predicting Social Behavior , 1980 .

[40]  Marko Merisavo,et al.  The effectiveness of targeted mobile advertising in selling mobile services: an empirical study , 2006, Int. J. Mob. Commun..

[41]  Herman Wold,et al.  Soft modelling: The Basic Design and Some Extensions , 1982 .

[42]  Wynne W. Chin.  The partial least squares approach for structural equation modeling. , 1998 .

[43]  Qimei Chen,et al.  Attitude Toward the Site , 1999 .

[44]  V. Zeithaml.  Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence: , 1988 .

[45]  Banwari Mittal.  Public assessment of TV advertising: faint praise and harsh criticism , 1994 .

[46]  John G. Lynch,et al.  Memory and Attentional Factors in Consumer Choice: Concepts and Research Methods , 1982 .

[47]  D. Kahneman,et al.  Attention and Effort , 1973 .

[48]  G. Lekakos,et al.  Determinants of Effective SMS Advertising: An Experimental Study , 2007 .

[49]  D. McQuail.  Mass Communication Theory: An Introduction , 1983 .

[50]  Van Gisbergen,et al.  Location based advertising , 2011 .

[51]  Ritu Agarwal,et al.  A Conceptual and Operational Definition of Personal Innovativeness in the Domain of Information Technology , 1998, Inf. Syst. Res..

[52]  Gordon C. Bruner,et al.  Attitude toward Location-based Advertising , 2007 .

[53]  Chang-Hoan Cho,et al.  INTERNET USES AND GRATIFICATIONS: A Structural Equation Model of Interactive Advertising , 2005 .

[54]  Asuncióan Beerli,et al.  Design and Validation of an Instrument for Measuring Advertising Effectiveness in the Printed Media , 1999 .

[55]  Patrick Barwise,et al.  Permission-based mobile advertising , 2002 .

[56]  S. Oskamp.  Attitudes and opinions. 3rd ed , 1977 .

[57]  D. Campbell,et al.  Convergent and discriminant validation by the multitrait-multimethod matrix. , 1959, Psychological bulletin.

[58]  T Elliott Michael,et al.  CONSUMER PERCEPTIONS OF ADVERTISING CLUTTER AND ITS IMPACT ACROSS VARIOUS MEDIA , 1998 .

[59]  T. Cook,et al.  Quasi-experimentation: Design & analysis issues for field settings , 1979 .

[60]  Michael L. Ray,et al.  Marketing communication and the hierarchy-of-effects , 1973 .

[61]  Kenneth R. Lord,et al.  Comparative and Noncomparative Advertising: Attitudinal Effects under Cognitive and Affective Involvement Conditions , 1994 .

[62]  Gerald L. Lohse,et al.  Signaling Quality and Credibility in Yellow Pages Advertising: The Influence of Color and Graphics on Choice , 2001 .

[63]  Howard B. Lee,et al.  Foundations of Behavioral Research , 1973 .

[64]  Per E. Pedersen,et al.  Adoption of Mobile Internet Services: An Exploratory Study of Mobile Commerce Early Adopters , 2005, J. Organ. Comput. Electron. Commer..

[65]  Izak Benbasat,et al.  An Investigation of the Effectiveness of Color and Graphical Information Presentation Under Varying Time Constraints , 1986, MIS Q..

[66]  Kalle Lyytinen,et al.  Designing Ubiquitous Information Environments: Socio-Technical Issues and Challenges - IFIP TC8 WG 8.2 International Working Conference, August 1-3, 2005, Cleveland, Ohio, USA , 2005, Designing Ubiquitous Information Environments.

[67]  L. Delbeke.  Quasi-experimentation - design and analysis issues for field settings - cook,td, campbell,dt , 1980 .

[68]  F. Bookstein,et al.  Two Structural Equation Models: LISREL and PLS Applied to Consumer Exit-Voice Theory , 1982 .

[69]  Steve Booth-Butterfield,et al.  Simultaneous versus Exclusive Processing of Persuasive Arguments and Cues. , 1994 .

[70]  Ping Zhang,et al.  CONSUMER ONLINE SHOPPING ATTITUDES ANDBEHAVIOR: AN ASSESSMENT OF RESEARCH , 2002 .

[71]  Hock-Hai Teo,et al.  Privacy Considerations in Location-Based Advertising , 2005, Designing Ubiquitous Information Environments.

[72]  R. Sitgreaves.  Psychometric theory (2nd ed.). , 1979 .