9-Etu-mobile Advertising and Brand Trust

How Mobile Advertising Works: The Roie of
Trust in Improving Attitudes and Recall

SHINTARO OKAZAKI

How does trust affect consumer attitudes and recall in mobile advertising? This study

Universidad Autonoma

explores this question by conducting a large-scale "pseudo" mobile advertising

de Madrid
[email protected]

campaign in Japan. Two "real" brands (one durable and one nondurable good) of
major Japanese manufacturers were used as study stimuli. Using a push messaging

AKIHIRO KATSUKURA

Dentsu Inc.
akihiro.katsukura@
dentsu.co.jp

service, both a campaign message and a subsequent questionnaire for each brand
were sent to 40,000 opt-in mobile users. Five primary constructs were examined:
brand trust, mobile advertising trust, attitude toward brand, attitude toward mobile

MAMORU NISHIYAMA

advertising, and mobile campaign recall. Findings suggest that a mobile campaign's

Dentsu Inc.

recall largely depends on perceptions of both the medium and the advertised content,

[email protected]

and that the effects of mobile advertising trust on attitude toward mobile advertising
were stronger than those of other relationships. The path from attitude toward brand
to mobile campaign recall was notably and statistically stronger for the durable good
sample than for the nondurable good sample. Only in the durable good sample is
attitude toward brand a mediating variable in linking attitude toward mobile advertising
and mobile campaign recall. This study offers a basic but useful research framework
for a mobile-based online survey.

RESEARCHERS AND PRACTITIONERS AGREE that the

most explosive growth in telecommunications has
occurred in internet and mobile telephone services (Lehr and McKnight, 2003). Combining these
two technologies, the internet-enabled mobile device has become one of the most promising advertising media around (Okazaki, 2006). For
example, SMS (short message service) direct marketing is a popular campaign method worldwide,
with consumer spending in the United Kingdom
reaching 58 million messages per day in 2004
(Trappey and Woodside, 2005). The trend has migrated to the United States as well. McDonald's
conducted an SMS-TV direct marketing campaign
in conjunction with a popular song contest program, offering concert tickets and backstage passes.
Coca-Cola executed a text message campaign for
college students in which a number printed on a
DOI: 10.2501/S0021849907070195

Diet Coke can could be used as an entry in the
Coca-Cola Grand Sweepstakes Competition. According to Mullman (2006), as many as 81 percent
of 18- to 2]-year-olds have mobile phones, and
most of them are likely to participate in TV or
radio polls, purchase ring tones, play games, and
send text messages.
On the other hand, SMS is not used in Japan as
widely as in Western markets. Instead, an emailcompatible version of mobile mail is commonly
used in NTT DoCoMo's i-mode, which has been
cited as "by far the most successful and most
comprehensive example of m-commerce today"
(Sadeh, 2002, p. 5). While widely used for delivering digital content such as ring-tones/songs,
news, weather reports, travel and traffic reports,
games, standby displays, and animated video,
this service allows users to transmit email of up to
June 2007

L QF HDUERTISinG RESEHRCH 1 6 5

HOW MOBILE ADVERTISING WORKS

10,000 alphanumeric characters or 10,000
bytes (NTT DoCoMo, 2006). For promotional campaigns, i-mode offers "Message
F (Free)," which is a push-type service
delivering advertising exclusively to opt-in
users. Advertisements are delivered to a
designated "Message F" inbox, and users
are exempt from the normal packet transmission charges. This Message F can be
sent to specific regional, gender, or age
groups, thus allowing firms to target messages to selected segments (D2 Communications, 2005). In addition, an image
attachment service begun in July 2005 supports the transmission of images, logos,
and other visual effects up to 8KB per
message (192 X 192 pixels in JPEG or
GIF). In 2006, major Japanese mobile carriers are beginning to launch mobile handsets that can receive terrestrial digital
broadcasting signals in addition to conventional analog signals, thus enabling
firms to take advantage of interactive presentations with static, animated, and/or
broadcast images (NTT DoCoMo, 2005).
Hence, the use of SMS as a reference
point for mobile advertising may no longer provide a realistic impression. However, there is little, if any, empirical
evidence as to the question of how mobile
advertising works in a more enhanced
environment. Our primary objective here
is to close this research gap through an
experimental study of mobile advertising
campaigns. The study consisted of transmitting "pseudo" mobile advertisements
of popular Japanese brands, one a durable good and the other a nondurable good,
to opt-in users. The advertisements contained both textual and visual parts, which
is more consistent with currently prevailing mobile technology that enables firms
to use rich digital content rather than
simple text-based messages. One week after sending the advertisements, we sent a
structured questionnaire to the same users
in an attempt to examine their level of

acceptance. The study set out to examine
five primary constructs: trust toward the
advertised brand, trust toward mobile advertising, attitude toward brand, attitude
toward mobile advertising, and mobile
campaign recall.
In what follows, we first critically review the extant literature on mobile advertising research, then establish the
theoretical framework of the study. On
this base, research hypotheses are proposed. Following a detailed explanation
of the methodology, we present the study
results and discuss the implications of
the study while recognizing important
limitations.
ADVANCES IN MOBILE ADVERTISING
RESEARCH

One of the benefits of a mobile-based
campaign is its capacity to attract consumer attention and increase consumer
responses through a "one-to-one dialogue" with customers (Kavassalis et al.,
2003). This matches the characteristics of
the mobile phone: a highly portable communication device with ubiquitous data
transmission capability. In recent years,
higher-capacity 3G technologies have responded to more specific information
needs by offering always-on service with
more interactive and location-based applications (Perlado and Barwise, 2004). So
far, however, with the exception of some
Asia Pacific countries, SMS has been the
most common platform for mobile advertising (Kavassalis et al., 2003) and therefore the most studied application. Table 1
summarizes the recent advances in mobile advertising research.
In a pioneering study, Barwise and
Strong (2002) conducted a trial of
permission-based SMS message advertising in the United Kingdom. On recruitment, respondents were paid cash
incentives and received more than 100
messages in the six-week trial period. Al-

1 6 6 JDURRRL OF RDUERTISIRB RESERRCR June 2 0 0 7

most all respondents were satisfied or very
satisfied. The study found that 81 percent
read all messages, 63 percent responded
or took action, and 17 percent forwarded
at least one message. Surprisingly, as many
as 84 percent of respondents were likely
to recommend the service to their friends,
whereas only 7 percent were likely to
abandon the service.
That research was later corroborated by
Rettie, Grandcolas, and Deakins (2005),
who conducted a study based on "real"
mobile advertising campaigns that took
place between October 2001 and January
2002. In total, the researchers conducted
5,401 telephone interviews regarding 26
different campaigns and found that the
overall acceptability of SMS advertising
was 44 percent, with an average response
rate of 25 percent—much higher than email
marketing. Acceptability was also significantly correlated with campaign interest,
campaign relevance, and monetary incentives. Similarly, sporadic industry surveys
report a rather optimistic blueprint. An
experimental survey conducted by Ericsson indicates that 60 percent of consumers liked receiving mobile advertising,
while Quios found that the level of recognition of mobile advertising was surprisingly high: 79 percent of participants
recalled 60 percent of the advertising
(Bames, 2002).
In contrast, a study conducted by Tsang,
Ho, and Liang (2004) reveals less enthusiastic attitudes toward mobile advertising among Taiwanese. Their structural
model included both utilitarian and experiential factors affecting consumers'
attitude toward permission-based SMS advertising. It was found that (1) consumers
generally have negative attitudes toward
mobile advertising unless they have been
informed and have preconsented (i.e.,
opted-in) to the advertisements, and (2)
there seems to be a direct and positive
relationship between consumers' attitudes

HOW MOBILE ADVERTISING WORKS

TABLE 1
Prior Research on Mobile Advertising
Sample

Methodology
Gender

Research

(Male/

Authors

Topic

Population

Barwise and

Adoption of

General

Strong (2002) permission-

Size
500

Scale

Reliability

Age

Female)

Occupation

Response
Rate

Survey

Type

Assessment

16-30

50%/50%

Unknown

100%

P&P"

Interval

CFA,'' a

consumers

scale

based push
advertising
Okazaki
(2004)

Perceptions

General

of pull-type

consumers

800

n.a.=

n.a.

Students,

8.0%

P&P

office workers,

7-point

CFA,

a

CFA,

a

Likert

housewives.

advertising
platform

professionals.
etc.

Tsang, Ho,

Adoption of

Mobile

and Liang

SMS

internet

(2004)

advertising

users

Rettie,

Adoption of

General

Grandcolas.

SMS

consumers

and Deakins

advertising

430

5,401

Under 30

Students

(85%)

(60%)

Unknown

Unknown

88.3%

P&P

7-point
Likert

Unknown

25%

Phone

Ordinal

n.a.

7-point

CFA

interview

(2005)
Wu and

Adoption of

General

Wang (2005)

m-commerce

consumers

(including

-H mobile banking

advertising)

users + students

Wang and
Liao (2007)

Satisfaction in Mobile
m-commerce

850

Under 39

Unknown

(82%)

Students,

36.7%

P&P

office workers.

Likert

etc.

116

site users

Under 4 1

76%/24%

Unknown

n.a.

P&P

(average:

(including

7-point

CFA,

a

Likert

24)

advertising)
255

18-39

59%/41%

Lin and

Loyalty in

University

Students,

n.a.

Wang (2006)

m-commerce

students

high-firm

(quota

(including

-^ general

employees.

sample)

advertising)

consumers

and insurance

P&P

7-point

CFA

Likert

employees
''i^&P = paper-and-pencil survey
''CFA = confirmatory factor analysis
'n.a. = not available

and behavior. The authors noted further that
consumers' intention to accept mobile advertisements is affected by incentives. The
use of sophisticated statistical analysis dis-

tinguishes this study from other empirical
studies carried out in recent years.
Much less attention has been paid to
web-based "pull" advertising. Okazaki

(2004) examined the factors influencing
consumers' motives to click text banner
advertisements in the i-mode mobile advertising platform known as "Tokusuru

June 2 0 0 7 JDUIlllIlL OF HDUERTISinG RESEimCH 1 6 7

HOW MOBILE ADVERTISING WORKS

Menu." This platform is included in an
official i-mode menu, which enables subscribers to freely access the promotional
information delivered by various companies. He found that three constructs—
content credibility, infotainment, and
irritation—affected the formation of attitudes toward wireless advertisements,
which in turn determined tbe level of
intention to click the advertisements. Interestingly, tbe demographic analysis revealed that tbe unmarried working youth
segment has a higher propensity to access
such pull mobile advertisements.
THEORETICAL FRAMEWORK
Trust as a factor determining mobile
advertising acceptance

Traditionally, the relevance and credibility of advertisements have been considered important mediators of advertising
effects (MacKenzie and Lutz, 1989). In
particular, perceived trust can be seen as
consumer feedback, reflecting individuals' determination of whether the imparted information is true or false. Trust
becomes crucial when consumers must
make decisions or take action on the basis
of uncertain information. On the internet,
however, it may be seen as more difficult
to distinguish between more and less trustworthy information because, as is not the
case with traditional media, much of the
content of online information is not subject to governmental or ethical regulation
(Eastin, 2001). In tbis light, Hoffman, Novak, and Peralta (1999) claim that a fundamental mistrust by customers of online
business lends support to the view of
some separation between brand identity
and brand experience. Tbis lack of faith
in the unregulated flow of information
presents a similar problem for those seeking information via mobile devices.
In this vein, Sadeh (2002) points out
that the success factors associated with
the i-mode m-commerce portal are precur168

sors of future internet business models, in
wbicb value will be created through convenience, ease of use, and compelling content tbat users will be willing to pay for.
Mobile users are likely to choose to open
mobile advertisements out of curiosity,
but they must then decide whether to
further access mobile campaign sites. Such
a decision must be made mainly on tbe
basis of trust in the advertisement and in
the advertised brand. Therefore, trust
should be conceptualized as consisting of
two different constructs, brand trust and
mobile advertising trust, both of which
affect users' choice to open push mobile
advertising. The users are likely to do so
only when they perceive both the medium and the content to be nondeceptive
and trustworthy.
Trust as a factor determining online
branding effectiveness

Mylonopoulos and Doukidis (2003) argue
tbat mobile advertising via email or SMS
is effective in enhancing brand awareness
and customer loyalty. Hence, tbere is strong
evidence that many firms actually use
mobile advertising for branding purposes. Okazaki (2005) interviewed 53 senior executives of multinationals operating
in European markets and found that tbe
creation and enhancement of brands are
tbe most important motives for multinational corporations to adopt mobile advertising in international markets. This is
consistent with Sultan and Rohm (2005),
who argue, "Mobile marketing creates new
opportunities for companies to form or
shift consumer attitudes toward a brand
through the use of value-added content"
(p. 85).
There is evidence that a growing number of firms actually use mobile advertising in brand promotion. For example,
McDonald's offers three different types of
mobile coupons on three different platforms, from the basic text-only SMS ver-

DFflDOERTISlOGRESEeRCH June 2 0 0 7

sion to the graphically rich version—that
is, fully trackable and redeemable, all without any point-of-sale hardware or software requirements (iMedia Connection,
2005a). DreamWorks Home Entertainment used a viral campaign for the DVD
of the film The Rin^; 2 that operated on
mobile phones and email accounts. Visitors to the campaign site were invited to
"scare their friends" by entering their email
address and mobile telephone number.
Tbe site then sent them an email, inviting
them to click on a link and watch the
video (iMedia Connection, 2005b). Adidas
enables consumers to download popular
athletes' pbotos on a mobile site and digitally superimpose their own pbotos on
those images (Sultan and Rohm, 2005). In
Japan, Kirin MC Danon Waters Co. has
launched a campaign for Volvic mineral
water in wbicb consumers enter a sweepstake contest in mobile phones with a
serial bottle number (Senden Kaigi, 2004).
P&G sends a sample of the Pantene brand
shampoo to users who respond to pull
mobile advertising in i-mode (Senden
Kaigi, 2004).
The success of these branding examples, however, appears to depend on the
distance between brand identity and brand
reputation. That is, tbe more consumers
trust the brand, the smaller tbe incongruity between what firms intend to establish and what consumers identify with
the brand (Jevons and Gabbott, 2000).
Hence, in tbe context of mobile advertising, trust plays a crucial role in obtaining
desired consumer responses.
Attitude formation and mobile
campaign recall

An attitude toward an object can be dofined as an individual's internal evaluation of it on tbe basis of his or her beliefs
(Fishbein and Ajzen, 1975). In other words,
beliefs determine tbe basic form of the
attitude, which in turn triggers behavioral

HOW MOBILE ADVERTISING WORKS

intentions (Davis, 1993). Thus, exposure
to an advertising message for a specific
product first influences one's beliefs, which
then mediate the attitude toward the product. Subsequently, behavioral intention is
formed as a consequence of this attitude
formation (Fishbein and Ajzen, 1975).
A mobile advertisement can be seen as
tl marketing stimulus in an interaction
between an advertiser and a consumer
that is mediated by a mobile handset. The
level of exposure to mobile devices varies
according to consumers' needs and wants,
but it is likely that they have formed
fnvorable or unfavorable attitudes, irrespective of their prior knowledge (Lu, Yu, Liu,
and Yao, 2003). Research suggests that
when consumers form positive attitudes
toward the advertisement, they are more
likely to demonstrate higher mobile campaign recall.
However, a company's ultimate goal of
mobile advertising should not be the formation of favorable attitudes toward mobile advertising, but the formulation of an
attitude toward the advertised brand. In
this vein, Delgado and Munuera (2001)
have pointed out that trust is one of the
most important factors affecting tbe creation of brand value. The literature has
long neglected tbe importance of "brand
trust," despite empirical and theoretical
evidence (Hess, 1995; Seines, 1998), but
researchers have become increasingly
interested in establishing interactions between a consumer and a brand as a longterm relationship (Delgado and Munuera,
2001). Other research views trust as a
determining factor in developing positive
or favorable attitudes, resulting in a
commitment to a certain brand as the
maximum expression of a successful relationship between it and the consumer
(Fournier, 1998). Moreover, trust leading
to favorable attitudes could, in turn, influence the intention to engage in repeat
purchases in internet commerce (Gefen,

Karahanna, and Straub, 2003; Kim and
Benbasat, 2003), including m-commerce
(Lin and Wang, 2006).

H6:

Attitude toward brand directly
and positively affects mobile campaign recall.

RESEARCH HYPOTHESES

H7:

Tbe relationship between attitude toward mobile advertising
and mobile campaign recall is mediated by attitude toward brand.

On the basis of tbe preceding arguments,
tbis study proposes to examine trust in
tbe advertised content and in the advertising medium, given that brand trust and
mobile advertising trust affect favorable
attitudes toward tbe advertisement and
tbe brand, respectively. Both attitudes, in
turn, are hypothesized to directly and
positively influence the level of mobile
campaign recall. Tbus, the following hypotbeses are suggested:
HI:

Mobile advertising trust directly
and positively affects attitudes toward mobile advertising.

H2:

Brand trust directly and positively affects attitudes toward
brand.

H3:

Mobile advertising trust directly
and positively affects attitude toward brand.

H4:

Attitude toward mobile advertising directly and positively affects
attitude toward brand.

H5:

Attitude toward mobile advertising directly and positively affects
mobile campaign recall.

At the same time, we posit tbat attitude
toward brand would act as a mediating variable in linking attitude toward mobile advertising and mobile campaign recall. This
is because the growing use of mobile advertising suggests that practitioners may intuitively believe that favorable perceptions
of the advertising will lead to favorable perceptions of the brand advertised, which
could achieve their ultimate goal: a higher
level of mobile campaign recall. This suggests the following and final hypotheses:

Figure 1 shows our research model.
METHODOLOGY
"Pseudo" mobile campaign

This study was organized into two phases:
(1) transmission of the pseudo mobile campaign, and (2) questionnaire survey via
mobile device (Figure 2). In tbe first phase,
we sent mobile advertisements that contained pseudo-campaign messages with
hyperlinks to access further campaign
information on the mobile site. D2 Communications (D2C), tbe largest mobile advertising agency in Japan, collaborated in
tbis study by creating the pseudo advertisements. It offered its "Message F," a
push service that delivers textual and visual information from advertisers to opt-in
users only. Tbis service bas been successfully used as a campaign tool by many
firms, such as P&G, Sapporo Beer, and
Panasonic (Senden Kaigi, 2004).
In addition, we contacted two large Japanese manufacturers, both listed in tbe
first section of tbe Tokyo Stock Exchange,
who agreed to collaborate in the experiment and allow us to use their most popular brands as real stimuli in tbe campaign.
One company manufactures a sophisticated portable audio player (i.e., durable
good), whereas the other makes a puffed
com snack (nondurable good). Both brands
are firmly established in tbe Japanese market. After designing textual and visual
information for tbe mobile advertisements, we created a promotional mobile
site to which respondents could jump by
clicking a banner saying "Please click here

June 2 0 0 7 JOORML DF RDUERTISIIID RESERRCR 1 6 9

HOW MOBILE ADVERTISING WORKS

for further information" in the advertisements (Figure 2). Again, as an incentive to
participate in the campaign, we offered a
free ring-tone and a present (a book
coupon).

Questionnaire design

In tbe second pbase, which took place
approximately one week after that transmission, we contacted the customers by
sending another mobile message containing a structured questionnaire and asking
for tbeir impressions and perceptions of

Figure 1 Research Model

Push Mobiie Advertising

structured Questionnaire

MelJI

Carl

Present for
10,000 people
Sales campaign!
Buy our Carl and win
a sweepstake,
because 10,000
people can get a
mysterious picture
book. Free screen
image, applications,
too...
Please click here for

One week
later

NTT DoCoMo:
This message is free
of packet
transmission charges.

Invitation to
the survey.

Figure 2 Research Design
1 7 0 JDDeRHL DF RODEHTISIRG RESERRCR June 2 0 0 7

Explanation of
the incentives
for participants

Question items
to measure five
constructs and
demographics

HOW MOBILE ADVERTISING WORKS

After designing textuai and visual information for the
mobile advertisements, we created a promotional mobile
site to which respondents could jump by clicking a banner
saying "Please click here for further information" in the
advertisements.

mobile campaigns. As an incentive, we
offered a free ring-tone and screen-image
downloads. Because the review of survey
literature indicated that the choice of response format is critical in online surveys
(e.g., Llieva, Baron, and Healey, 2002;
Schaefer and Dillman, 1998; Sheehan, 2001;
Sheehan and McMillan, 1999), we decided
to use a multichotomous response format,
with a level of scale reliability properly
assessed via multivariate analysis (NeteI'neyer, Bearden, and Sharma, 2003).
The questionnaire consisted of two parts.
In the first, we asked questions about the
respondents' demographic information,
such as gender, age, and occupation, along
with media perceptions and media usage
habits (i.e., frequency of use of traditional
and nontraditional media). We assessed
the demographic variables and media perceptions using a categorical scale and the
media usage habits with an ordinal scale.
In all cases, respondents were asked to
check the appropriate box to indicate their
answer (Figure 2). In the second part, we
included five questions that corresponded
to the five constructs: brand trust, mobile
advertising trust, attitude toward brand,
attitude toward mobile advertising, and
mobile campaign recall (i.e., unaided recall). The majority of the scale items were
adopted from existent e-commerce literature and modified into a mobile context.
All constructs were assessed using a
multiple-item measure of 5-point seman-

tic differential scales, with 3 ("cannot
answer/determine") as an anchoring point.
All surveys were completed by the end of
July 2005.
RESULTS
Response rate

For each type of product, 40,000 pseudocampaign messages were sent to the opt-in
users. Thus, 80,000 messages were sent in
total. The respondents were randomly chosen from the customer database in the
greater Tokyo Metropolitan District area,
including three nearby prefectures. The
click-through rate was estimated at approximately 17 percent for the durable
good sample and 13 percent for the nondurable good sample. Thus, approximately 6,800 and 5,200 consumers,
respectively, actually "checked" the link.
In total, we received 1,335 usable responses for the audio player and 1,899 for
the com snack, which made the response
rate, based on the total clicks, approximately 19.6 and 35.5 percent, respectively.
All the surveys were completed by the
end of July 2005.

The proportion of female respondents outweighed their male counterparts, while
the differences across the samples were
not statistically significant (p = .423). Neither did the occupational patterns differ
across the samples (p = .071). However,
for age, a chi-square test detected significant differences between the two brands
{p = .004). Participants under 19 years old
responded more for the audio player, while
those between 30 and 34 years old responded more for the corn snack. Although the sample was not stratified
according to age, it was somewhat expected to receive a "reasonable" number
of responses from older age groups. However, our results were consistent with prior
research in that people over 40 years old
hardly replied to our survey invitations.
Measurement assessment

Respondent profile

The research model was tested by structural equation modeling (SEM), which is
an approach to modeling complex dependencies among unobserved or hypothesized variables, such as perceptions,
beliefs, and attitude. With SEM, any variable can serve as a predictor of any other
variable, whether it is observed or hypothesized. By simultaneously evaluating dependencies among variables, SEM extends
traditional modeling techniques by providing additional insight into the underlying nature of relationships. Thus, this
approach is considered to be appropriate
to test causal relationships between the
five constructs of brand trust, mobile advertising trust, attitude toward brand, attitude toward mobile advertising, and
mobile campaign recall. We used AMOS
5.0 to conduct all the analyses.

Table 2 summarizes the major demographics of the respondents for each sample
(durable and nondurable goods) in terms
of gender, age, and occupation. Generally
speaking, the respondents of both samples exhibited very similar characteristics.

According to the recommendations made
by Anderson and Gerbing (1988), we first
tested the measurement model by conducting a confirmatory factor analysis.
This is a necessary procedure in establishing measurement reliability and validity.

June 2 0 0 7 JOyRllIlL OF HDUERTISIIIG RESEHRCH I 7 i

HOW MOBILE ADVERTISING WORKS

TABLE 2

-96, Comparative Fit Index (CFI) = .95,

Characteristics of the Respondents (%)

incremental Fit index (IFI) = .95, and RootMean-Square Error of Approximation

Durable Good

Nondurable Good

(W = 1,335)

(/V = 1,899)

(RMSEA) = .055. All indicated an accept;f^ Test

_

able fit of the model. Further, all the items
loaded onto the corresponding factors with

1^ .

A-^ R

AO o

....i:^f^^^

56.4

57.8

<19 years old

29.2

25.6

in Table 3, the alphas exceeded the gen-

20-24

26 7

24 2

25-29

20.8

20.6

erally accepted minimum level of .60. The
composite reliability scores were higher
,
,
than .80, bemg superior to what prior

....'^9~?.^.

i^5.".^

•?;?.•.•?:

research recommends (Hair, Tatham, An-

35-39

8.5

11.0

derson, and Black, 1998). Finally, with re-

. _ ..

.-

„

gard to the average variance extracted,

.1

.2

Junior high/high school

17.2

14.4

construct did not capture a sufficient

University

181

16 0

Clerical/research

10.4

9.8

amount of variance because they may not
have truly represented what we intended
, , ,
, ,
to measure. While this clearly limited the

....^.'?.'??.'.".'.^*I'.^.V.y.?.
Sales/service

^9.-?.
19.1

^9..?
20.9

generalizability of the findings to some
extent, the majority of the indicators ex-

,.,
. ,
Managerial

. _
1.9

. _
1.7

9.2
.4

10.7
.9

ceeded the recommended guidelines. Thus,
*'
we concluded that reliability and validity
^ ^ ^ sufficiently established for the study

Housewives

6.4

7.8

Unemployed

6.3

7.5

;64 (p = .423)

Age

....45.yearsold<

erage variance extracted. As clearly seen

18.97 ( p = .004)

Occupation

....Sl^lj^d Prafessional
Self-ennployed

Nonfixed fee

the scores were notably lower, especially
^^^ _^^^.^^^^ ^^^^^^ ^ ^ , ^ i , ^ advertising.
This means that the question items of this

1 5 . 8 3 ( p = .071)

Monttily bill
....:.\^^....!^^.

standardized coefficients greater than .53.
Reliability was measured via Cronbach's alpha, composite reliabihty, and av-

„....„

?!T.'.?

44.9

45.2

Structural model assessment
Next, w e tested the structural model with
^
„ j
,
the asymptohcally distnbution-free method
^ith the bootstrap option. The identical
model was applied for the two samples

.03(p=.860)

separately, i.e., durable and nondurable
goods. The results are summarized in
Tables 4. In both samples, the chi-square
value was significant, but more pragmatic

Because we used semantic differential

The resulted absolute fit index was sig-

indices showed that the model fit well to

scales, the bootstrap was used to correct

nificant: x^ = 540.94, df = 5\, p < .001,

the data. In terms of hypothesis testing,

sampling variability. For the same reason,

indicating an acceptable fit. However, the

there were two notable differences across

the asymptotically distribution-free esti-

literature suggests that this index be-

the models.

mation was used. The literature suggests

comes too sensitive to a larger sample

that this method is preferred over the

size. Thus, we calculated more pragmatic

the hypothesized paths in the model were

maximum likelihood method in case of

indices: Goodness-of-Fit Index (GFI) = .98,

statistically significant, except the one

the violation of multivariate normality.

Adjusted Goodness-of-Fit Index (AGFI) =

from mobile advertising trust to attitude

1 7 2 JOURIlflL OFflOOEflTISlOOflESEflfiCHJune 2 0 0 7

First, in the durable good sample, all

HOW MOBILE ADVERTISING WORKS

3

''il^ advertising to mobile campaign recall

Overall Reliability a n d Validity

^^^ ^"'"y '"°'^^^* (standardized p = .i4).
Second, in the nondurable good samAverage

pie, two paths were found to be insigni-

Composite

Variance

ficant: (1) the path from mobile advertising

Constructs

Alpha

Reliability

Extracted

trust to attitude toward brand, and (2) the

_
,
Brand trust

,.,^
.60

^^
.90

.^
.43

Mobile adyertisirig trust
Attitude toward brand

.73
.71

.94
.96

.53
.59

path from attitude toward mobile adver^
tising to mobile campaign recall. The path
from attitude toward mobile advertising
to attitude toward brand exhibited the

Attitude toward mobile advertising

.56

.85

.40

Mobile cannpaign recall

.83

.98

.71

toward brand: This path was negative but

tude toward brand to mobile campaign

strongest effect (standardized ^ = .95),
while the path from mobile advertising
,
,
, .
,
trust to attitude toward mobile advertising was the second (standardized /3 =
.85). The effects from both attitudes to
mobile campaign recall were similar to

statistically insignificant. Among the struc-

recall was also strong (standardized ji =

those in the durable good sample,

lural paths, the one from mobile advertis-

.56). A similar strength was also observed

On the basis of these findings, we con-

ing trust to attitude toward mobile

in the path from attitude toward mobile

elude that Hypotheses HI, H2, H4, and

advertising was the strongest (standard-

advertising to attitude toward brand. How-

H6 were supported by our data, but Hy-

ized /3 = .83) while the effect from atti-

ever, the effect from attitude toward mo-

potheses H3 and H5 were rejected.

TABLE 4
Structural Model Results
Durable Good

Nondurable Good
Standardized

Standardized
Hypothesized Paths
Mobile advertising trust

Coefficient
—>

t-Vaiue

P

Coefficient

t-Vaiue

P

Attitude toward mobile
advertisement

.83

8.45

*+*

.85

11.41

***
*»*

Brand trust

->

Attitude toward brand

.32

5.12

***

.27

7.31

Mobile advertising trust

-^

Attitude toward brand

-.12

-.92

.360 -.30

-1.80

Attitude toward mobile advertisement

->

Attitude toward brand

.52

3.34

***

.95

5.09

• **

Attitude toward mobile advertisement

->

Mobile campaign recall

.14

3.53

*+*

.07

1.46

.144

—>

Mobile campaign recall

.56

7.30

.49

8.72

***

Attitude toward brand
Goodness-of-fit statistics

.072

X^ = 482.02

X^ = 567.32

{df=57,p < .0001)

(df =57, p < .0001)

GFI = .96

GFI = .96

AGFI = .93

AGFI = .94

CFI = .89

CFI = .92

RMSEA = .075

RMSEA = .070

June 2 0 0 7 JOOflflflL OFflOOEflTISlOGflESEIlflCfl1 7 3

HOW MOBILE ADVERTISING WORKS

iViedlation anaiysis

Finally, we addressed Hypothesis H7 in
that two independent variables, attitude
toward mobile advertising and attitude
toward brand, were mediated causes: i.e.,
attitude toward mobile advertising would
affect mobile campaign recall through attitude toward advertised brand. Because
of the structural model results in the preceding section, this hypothesis was tested
for the durable good only.
In order to test this mediation, we followed the procedure recommended by
Baron and Kenny (1986). Specifically, the
following conditions were examined: (1)
attitude toward mobile advertising has a
positive effect on the mobile campaign
recall in the absence of attitude toward
brand; (2) attitude toward mobile advertising has a positive effect on attitude
toward brand; (3) attitude toward brand
has a positive effect on mobile campaign
recall; and (4) the effect of attitude toward
mobile advertising on mobile campaign
recall is reduced in the presence of attitude toward brand. We found that all the
mediating conditions were satisfied. Therefore, Hypothesis 7 was supported by the
data.

iVIuitigroup analysis

A subsequent multigroup analysis detected statistical differences across the two
models in three structural paths: (1) the
path from brand trust to attitude toward
brand {t = 5.18, p < .001), (2) the path
from attitude toward mobile advertising
to attitude toward brand (f = 3.31, p <
.001), and (3) attitude toward brand and
mobile campaign recall (f = -4.14, p <
.001). This finding also corroborates that
the mediation effect of attitude toward
brand is only observed in the durable
good sample in the preceding section: Consumers' evaluations on the mobile advertising campaigns across two product

A mobile campaign's memorability is likely to depend
on perceptions of both the medium and the advertised
content. Especially, we should note that the effects of
mobile advertising trust on attitude toward mobile
advertising

were

stronger

than

those

of

other

relationships.

types were very dissimilar in terms of the
overall results in the structural paths.
LliVIITATiONS

To make our findings more objective, we
must acknowledge a few limitations. First,
although i-mode has been exported to
many countries, the data transmission environment in Japan and the psychological
readiness of people there to accept mobile
advertising may not be directly applicable to other countries. Any international
generalization of the findings must be
treated with caution.
Second, our response rates based on
the total clicks were modest, and it should
be taken into account that those respondents represent only a small portion of
total mobile advertising subscribers. Therefore, any future extension may need to
combine both offline and online survey
methods to reach a core portion of mobile
advertising subscribers and to better understand the nature and extent of any
response bias involved.
DiSCUSSiON
Theoreticai impiications

This study provides useful and important
implications for m-commerce researchers
in several ways. First, it provides empirical evidence that not only attitude
toward brand but also attitude toward

1 7 4 JOOflOflL DFflOOEflTISlOGBESEflflCfl June 2 0 0 7

mobile advertising affect the level of mobile campaign recall. That is, a mobile
campaign's memorability is likely to depend on perceptions of both the medium
and the advertised content. Especially, we
should note that the effects of mobile advertising trust on attitude toward mobile
advertising were stronger than those of
other relationships.
Second, there are notable differences in
the strength of the paths across the product types (i.e., durable and nondurable
goods). In particular, a careful observation of the standardized coefficients reveals that the path from attitude toward
brand to mobile campaign recall was
notably and statistically stronger for the
durable good sample than for the nondurable good sample. Furthermore, attitude toward brand is a mediating variable
in linking attitude toward mobile advertising and mobile campaign recall only
in the durable good sample. This implies
that, as far as the durable good is concerned, mobile campaign recall seems to
rely primarily on the strength of the brand
to be effective.
Third, our data indicate that mobile advertising trust may negatively influence
attitude toward brand, although this path
was statistically insignificant in both samples. This result somewhat corroborates
Tsang, Ho, and Liang's (2004) study of

r
HOW MOBILE ADVERTISING WORKS

The path from attitude toward brand to mobile campaign
recall was notably and statistically stronger for the durable
good sample than for the nondurable good sample.

permission-based advertising in Taiwan.
Even so, it seems contradictory, given that
our respondents were all opt-in users who
consented to the push service, because it
posits that the more one trusts mobile
advertising in general, the more negative
will be one's attitude toward the brand
thereby advertised. There are two possible reasons for this: (1) for both samples,
the majority of our respondents were under 25 years old, and (2) both products
advertised were well-established brands
in their mature stage. Young consumers
are more likely to develop "trust" in what
mobile advertising communicates, but may
perceive mature brands as "not so cool"
or "too tacky/' especially in the case of
the nondurable good. This may imply that,
after obtaining opt-in permission, firms
that attempt to use mobile-based advertising campaigns must take into consideration the stage of product life cycle.
Although it is not conclusive, prior research appears to indicate that mobile ad-

vertising may be most effective in creating
awareness of a new product, partly because of its novelty effect and attentiongetting ability (Okazaki, 2005; Sultan and
Rohm, 2005; Trappey and Woodside, 2005).
There may exist a certain relationship
among the target age group, the type of
product thereby advertised, and the stage
of product life cycle. Needless to say, this
point is far beyond our present knowledge and should be further explored in
future research.
One might point out the simplicity of
the two trust constructs we used in the
model. However, from a practical point of
view, a small construct of trust toward
brand or trust toward mobile advertising
makes more sense in the context of a
mobile campaign because, unlike the wired
internet, the recipients of a mobile message would not examine the content in
detail, only at a glance. Probably one of
the most important effects in a mobile
advertising campaign is its spontaneity in

Young consumers are more likely to develop "trust" in
what mobile advertising communicates, but may perceive
mature brands as "not so cool" or "too tacky," especially
in the case of the nondurable good. This may imply that,
after obtaining opt-in permission, firms that attempt to
use mobile-based advertising campaigns must take into
consideration the stage of product life cycle.

that the recipients perceive, sense, and
determine their reactions in a much shorter
time than it would take in other media. In
this regard, our study provides practitioners with a quite realistic scenario of mobile advertising acceptance.
Practicai impiications
In an era of wireless local area networks
(or WiFi), mobile advertising campaigns
can be extended to a wireline backbone
corporate enterprise, university campus,
or government network (Lehr and McKnight, 2003). Unfortunately, there is an
important shortage of empirical evidence
from the "wirelessly" obtained dataset. In
this light, our study offers a basic but
useful research framework of a mobilebased online survey. Although the cost
may be significant, the responses directly
sent over mobile devices could reflect the
most honest opinions of mobile users. In
the past, most m-commerce research has
used a traditional method (i.e., paper-andpencil) for data collection, without ensuring that the respondents were "real" mobile
internet users. By contrast, this study used
a simple data collection system on a mobile telecommunication network by applying the same technology of commercial
messaging of mobile internet providers.
In this regard, more future collaborations
are expected between academics and practitioners to gain more practical insights in
the research.
International researchers and practitioners should take the findings of this research as a useful case study of i-mode
applications. By June 2004, the i-mode
Japanese subscriber base had reached 43
million, and the European user base was
expanding through partnerships with key
mobile operators (NTT DoCoMo, 2004c).
After E-Plus launched its i-mode subscription in Germany, NTT DoCoMo's capital
partners set up the service in Belgium
(KPN Orange), France (Bouygues Telecom),

June 2 0 0 7 JOOflflflL OFflOOEflTIBIIlGflESEflflCfl1 7 5

HOW MOBILE ADVERTISING WORKS

Taiwan (KG Telecommunications), and the

try. His articles have appeared in many academic and

D2 COMMUNICATIONS. "Our Line of Business":

Netherlands (KPN Mobile NB) in 2002; in

professionai publications. He holds a B.A. from

[URL: http://www.d2c.com], accessed July 12,

Italy (WIND Telecomunicazioni) and Spain

Waseda University, Japan.

2005.

(Telefonica Moviles) in 2003; and in Australia (Telstra Corporation) and Greece
(COSMOTE) in 2004 (NTT DoCoMo, 2003a,
2003b, 2004a, 2004b). By the end of June
2004, i-mode users outside Japan exceeded 3 million (NTT DoCoMo, 2004c).

MAMORU NiSHiYAiMA is an associate account supervisor at Dentsu Inc., Japan. He has been engaged in
various account planning activities. He holds a B.A.
from the University of Osaka and an M.A. from the

DAVIS, F. D. "User Acceptance of Information
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University of Tokyo, Japan.

European users are said to spend an incremental 6 to 10 euros ($8 to $13) a

DELGADO, E., and J. L. MUNUERA. "Brand Trust

month on i-mode services (Greenwood,
2004). As 3G-enabled mobile handsets pro-

in the Context of Customer Loyalty." European
ACKNOWLEDGMENTS

Journal of Marketing 35, 11/12 (2001): 1238-58.

liferate worldwide, many point out that
i-mode potentially may be one of the most
influential business models in mobile internet technology (Okazaki, 2006; Sadeh,
2002; Scuka, 2003).

This research was funded by a grant from the
Japan Academy of Advertising, The authors
appreciatively acknowledge technical support
provided by D2 Communications Inc. for the
data collection. They also thank the anonymous reviewers for their very helpful, insight-

SHINTARO OKAZAKI (Ph.D.. Universidad Autonoma de

ful, and constructive comments on the earlier

Madrid) is an associate professor of marketing at the

versions of this article. Please address all cor-

Coilege of Economics and Business Administration,

respondence to Shintaro Okazaki.

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