Professional Documents
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Mobile Purchasing Behaviour
Mobile Purchasing Behaviour
Group 1
Study Effectiveness of
Mobile Advertisements in
the purchase decision
Submitted to Prof. Ravi Shekhar Kumar by
B13080 Bhavya Singla
B13092 Kevin Thomas
B13105 P. R. Rajaram
B13109 Ronak Doshi
B13111 Sandeep Mishra
B13122 Vaibhav Kaushik
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Table of Contents
Background of the Study.................................................................................3
Management Decision Problem.......................................................................7
Hypothesis.......................................................................................................7
Research Problem/ Hypothesis/ Research Objective/ Research Questions.7
Questionnaire................................................................................................10
Test Results....................................................................................................13
Conclusion of the study.................................................................................27
Limitations of the Study................................................................................28
References.....................................................................................................28
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Perceived enjoyment has a significant relationship with all four m-commerce usage
activities. The findings reveal that besides downloading games and listening to
music, which are fun and enjoyable activities, users need to perceive that it is
enjoyable to engage in transactions such as transferring money, purchasing, and
location-based activities, such as receiving mobile advertisements. One reason why
users will use m-commerce to conduct mobile banking, for example, is related to
the perceived usefulness of the activity. Results revealed that users are only
concerned about the security risks involved in transaction and location-based
services. Therefore, users are likely to download music or play mobile games
without worrying about possible security threats.
This study investigated the relationships between demographic profiles, users
motivations and security perceptions, with m-commerce usage activities. The
findings have several implications. First, unlike existing studies of technology
adoption, this study did not focus on whether or not a user will adopt m-commerce.
Instead, it explored the relationships between adoption factors and m-commerce
activities. Second, results included direct relationships between demographic
variables and m-commerce activities, rather than using one as a control variable.
Third, the study reveals that security concerns only affected transaction and
location-based activities. M-commerce providers should improve the security and
privacy features of their systems. Fourth, findings revealed that social inuence can
affect content delivery and entertainment activities. Therefore application providers
can formulate strategies to promote content delivery and entertainment activities
through word of mouth, social network channels, and informal seminars (Wei et al.,
2009). Fifth, results reveal that motivation, in particular intrinsic motivation, plays a
crucial role in users engagement with m-commerce activities. Sixth, this research
has also extended TAM, and applied the enhanced model to study the adoption of
m-commerce usage activities. Finally, based on the results, perceived ease of use
and perceived enjoyment are two of the most important adoption factors, as they
were found to be significant for all m-commerce usage activities.
Another study is Young consumers motives for using SMS and perceptions towards
SMS advertising by Ian Phau and Min Teah. The purpose of it was to examine
young consumers motives for using SMS, their SMS usage frequency and their
attitudes towards SMS advertising. The approach was through convenience
sampling via self-administered questionnaire. A total of 211 samples were collected
and retained for analysis.
SMS advertising presents important future implications for marketers and is
projected to be a booming advertising medium (Carroll et al., 2007; Muk, 2007). In
summary, this paper has identified seven factors that inuence SMS usage.
However, only convenience positively inuences SMS usage frequency, whereas
economic reasons negatively inuence SMS usage frequency, and only social
involvement inuences consumers attitudes towards SMS advertising. There is no
significant relationship between SMS usage frequency and the consumers attitudes
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In E-commerce business , the competitor is any company that can affect your profit.
Some competitors may be weak while others may pose an imminent threat to sales
and revenue. To create a competitive analysis, focus should be on those
competitors that are either an immediate threat or that could become a threat
within a year.
To help identify these competitors we should ask two basic questions about our
business and our market.
1. What is our industry segment?
2. Who are our customers?
With this information in hand, we can make a list of potential competitors, by noting
the following.
Any competitor we already know.
Retailers that appear at the top of organic search result pages for important
queries.
Retailers that purchase pay-per-click advertising for industry-specific keywords.
Retailers that advertise in industry-related publications.
Retailers that appear in dealer locators (from suppliers or manufacturers).
Retailers that tweet about the industry on Twitter.
Retailers that post about the topic on Facebook.
Once all the competing e-commerce websites have been identified, the corporate
strategy needs to be designed to gain a competitive advantage over them. Such as
greater advertising, through mobile advertising.
CUSTOMER
Clients are the base of any strategy. Therefore, the primary goal is supposed to be
the interest of the customer. In the long run, a company that is genuinely interested
in its customers will be interesting for its investors and take care of their interests
automatically. Segmentation is one way to help us understand the customer.
Segmenting by objective
The differentiation is done in terms of the different ways that various customers use
a product.
Segmenting by customer coverage
This segmentation normally emerges from a trade-off study of marketing costs
versus market coverage. There appears always to be a point of diminishing returns
in the cost versus coverage relationship. The corporations task is to optimize its
range of market coverage, geographically and/ or channel wise.
Re-segmenting the market
In fierce competition, competitors are likely to be dissecting the market in similar
ways. Over an extended period of time, the effectiveness of a given initial strategic
segmentation will tend to decline. In such situations it is useful to pick a small
group of customers and reexamine what it is that they are really looking for.
A market segment change occurs where the market forces are altering the
distribution of the user-mix over time by inuencing demography, distribution
channels, customer size, etc. This kind of change means that the allocation of
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Hypothesis
Research Problem/ Hypothesis/ Research Objective/ Research
Questions
Click on the question number to see the test results and conclusion for each test.
Q No.
Research
Research Objective
Hypothesis
Problem
/Research Question
To determine the
Compare the click through
Mean click through
effectiveness of
ratio of mobile advertising
ratio of Mobile
mobile
with the industry average of
Advertising >=
1
advertisements in 7.14% (source:
Industry Average of
its present form
http://appood.com/blog/aver
7.14%
age-ctr-by-ad-formats)
Compare the effectiveness
Mean click through
across different Indian cities
ratio of Mobile
Advertising across
2
different cities is the
same
To determine
Do users who subscribe to
Users who subscribe
consumer
mobile ads find mobile
to mobile ads find
preferences
advertisements informative?
mobile
3
towards mobile
advertisements
advertising
informative
Consumer perception of
Consumers feel safe
mobile advertisement safety.
when they receive
4
mobile
advertisements
Effect of promotional offers
Users who enjoy
5
received on mobile on buying
receiving
decision
promotional offers on
mobile phones
believe that
promotional Offers
Page 8
Group 1
Identify the
factors that affect
the attitude of
users towards
mobile
advertisements
Study user
preference for
receiving
advertisements
10
11
Page 9
Group 1
extra to block ads on mobile
aps also use the DND feature
People who subscribe to
mobile advertisements
because they believe that
mobile advertisements help
them make purchase
decisions
12
13
14
Page 10
to block ads on
mobile aps use the
DND feature
Users who believe
that mobile
advertisements help
them make purchase
decisions subscribe
to mobile
advertisements
Users have equal
preferences for all
the three types of
mobile
advertisements (sms,
ash, in-application
ad)
Users prefer to
receive less than 2.5
ad per day
Group 1
Questionnaire
Q1 Please answer the following questions regarding advertisements on mobile
phone by e-commerce websites
Highly Agree Neutral Disagre
Agree
(2)
(3)
e (4)
(1)
You have a positive attitude towards Mobile
Advertisements
You enjoy getting promotional offers on your
phone
You prefer getting product information via
advertisements from e-commerce websites on
your mobile phone
You subscribe to offers of your favorite Ecommerce websites
Mobile Advertisements helps to keep you
updated on latest trends on your favorite ecommerce website
Mobile Advertisements are Informative
Mobile Advertisements help make decision on
the go
Mobile Advertisements videos are entertaining
Advertisements on mobile phone are irritating
Advertisements on mobile phone are unsafe
Advertisements on mobile phone violate
privacy
You use your mobile phone for mobile internet
browsing
You use your phone to download e-commerce
shopping application
You purchase items through e-commerce portal
apps on your mobile phones
you prefer online advertisement as a medium
for receiving product information
You receive customized advertisements on your
phone
customized Ads help in your purchase decision
Promotional Offers that come on mobile are
more attractive than traditional media
Page 11
Highly
Disagre
e (5)
Group 1
5 (6)
More
than 6
(7)
Q4 Tell us a little more about the mobile advertisements you receive on your phone
Always (1) Sometimes
Never (3)
(2)
Do you forward attractive mobile Ads to friends
Do you pay extra in an app to block ads?
Do you post advertisements and offers you receive
on your phone on social networking platforms
Do you activate do not disturb to block
advertisements on your mobile phone
Q5 Did you receive any kind of mobile advertisement for the product or ecommerce website before buying it?
Yes
No
If No Is Selected, Then Skip To Q10 Gender
Q6 What type of Advertisement it was
SMS
Flash Ad
Advertisement with applications
Q7 How helpful was the Mobile Ad in your purchase decision
Very helpful
Somewhat helpful
Not Helpful
Q8 The Mobile Ad was deceiving?
Highly Agree (1)
Agree (2)
Neutral (3)
Disagree (4)
Highly Disagree (5)
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Group 1
Q9 Gender
Male (1)
Female (2)
Q10 Age
Q11 City
Q12 Annual Family Income
Above Rs 1 Lac (1)
1 to 2.5 Lac (2)
2.5 to 5 Lac (3)
Above 5 Lac (4)
Q13 Education
Up to Senior Secondary
Graduate
Post-Graduate
Q14 Occupation
Student
Salaried Professional
Self Employed
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Test Results
Assumption for significance level: alpha = 0.05
1. Mean click through ratio of Mobile Advertising >= Industry Average
of 7.14%
One-tailed test
One-Sample Statistics
N
CTR
Std.
Deviation
Mean
50 26.4600
30.62226
Std. Error
Mean
4.33064
One-Sample Test
Test Value = 7.14
T
CTR
Sig. (2tailed)
df
4.461
49
Mean
Difference
.000
19.32000
Upper
28.0228
Page 14
Group 1
Mean
Mumb
ai
Delhi
Std.
Deviatio
Lower
n
Std. Error Bound
1
14
.0000
Upper
Bound
Maximu
Minimum m
.00
.00
23.071 29.2166
4
0
7.80847
6.2023
39.9406
.00
75.00
32.000 28.1780
11.50362
0
1
2.4290
61.5710
.00
67.00
Chenn
ai
Kolkat
a
29
27.862 32.6121
1
4
6.05592
15.4571
40.2671
.00
100.00
50
26.460 30.6222
0
6
4.33064
17.7572
35.1628
.00
100.00
Total
ANOVA
CTR
Sum of
Squares
Between
Groups
Mean
Square
Df
1102.043
367.348
Within Groups
44846.377
46
974.921
Total
45948.420
49
Sig.
.377
.770
Conclusion: Since the p value > 0.05, we can say that the attitude of
consumers vary across the different cities.
Top
3. Users who subscribe to mobile ads find mobile advertisements
informative
Two-tailed test
Page 15
Group 1
Std.
Deviation
Std. Error
Mean
3.22
50
1.217
.172
3.04
50
1.177
.167
N
Pair 1 You subscribe to offers of your favourite Ecommerce websites & Mobile Advertisements
are Informative
50
.449
.001
Mean
Pair 1 You
subscribe
to offers
of your
favourite
Ecommerc
e
websites
- Mobile
Advertise
ments
are
Informati
ve
.180
Df
Sig. (2tailed)
95% Confidence
Interval of the
Std.
Deviatio Std. Error Difference
n
Mean
Lower
Upper
1.257
.178
Page 16
-.177
.537 1.013
49
.316
Group 1
Std.
Deviation
Mean
49
2.84
Std. Error
Mean
.943
.135
One-Sample Test
Test Value = 2.5
t
Advertisements
on mobile phone
are unsafe
Sig. (2tailed)
Df
2.499
48
.016
Mean
Difference
.337
95% Confidence
Interval of the
Difference
Lower
Upper
.07
.61
Page 17
Group 1
Std.
Deviation
Std. Error
Mean
3.30
50
1.359
.192
3.04
50
1.177
.167
N
Pair 1 You enjoy getting promotional offers on your
phone & Promotional Offers that come on
mobile are more attractive than traditional
media
50
.464
.001
Paired Differences
Df
Sig.
(2tailed
)
95% Confidence
Std. Std. Interval of the
Devia Error Difference
Mean tion Mean Lower
Upper
Pair 1 You enjoy getting
promotional offers on
your phone Promotional Offers
that come on mobile
are more attractive
than traditional media
.260 1.322
.187
-.116
.636
1.39
1
49
.171
Page 18
Group 1
Top
Approx. Chi-Square
.619
101.804
Df
15
Sig.
.000
Extractio
n
1.000
.827
1.000
.723
1.000
.463
1.000
.586
1.000
.649
1.000
.496
Page 19
Group 1
Extraction Sums of
Squared Loadings
% of
Cumul
Varianc ative
% of
Cumulati
e
%
Total Variance ve %
Comp
% of
Cumulat
onent Total Variance ive %
Total
1
2.72
2
45.364
45.364
2.722
36.004
36.004
1.02
2
17.039
62.403
1.022
26.400
62.403
.902
15.035
77.438
.662
11.030
88.468
.584
9.727
98.195
.108
1.805 100.000
.908
.059
.820
.226
.660
.164
-.658
.391
-.475
.651
.363
.604
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Group 1
.777
-.473
.800
-.286
.635
-.246
-.313
.699
-.015
.805
.644
.285
.818
-.575
.575
.818
Page 21
Group 1
Variables Entered/Removedb
Variables
Removed
Method
. Enter
Adjusted R
R Square Square
.675a
Std. Error of
the
Estimate
.456
.433
.962
Model
1
Mean
Square
df
Regressio
n
36.483
18.242
Residual
43.517
47
.926
Total
80.000
49
Sig.
19.702
.000a
Page 22
Group 1
Coefficientsa
Model
1
Unstandardized
Coefficients
Standardize
d
Coefficients
Beta
Std. Error
(Constant)
.697
.653
Mobile
Advertisements are
Informative
.762
.131
Advertisements on
mobile phone are
irritating
.080
.151
Sig.
1.067
.291
.702
5.817
.000
.064
.532
.597
Std.
Deviation
Std. Error
Mean
3.20
50
1.212
.171
2.74
50
1.139
.161
Page 23
Group 1
N
Pair 1 You prefer getting
product information
via advertisements
from e-commerce
websites on your
mobile phone & you
prefer online
advertisement as a
medium for
receiving product
information
50
.585
.000
.460
1.073
.152
.155
.765
3.03
1
Sig.
(2tailed)
Df
49
.004
Page 24
Group 1
Std.
Deviation
Mean
Male
Std. Error
Mean
41
3.22
1.194
.186
2.88
1.642
.581
Female
F
You have a
positive
attitude
towards
Mobile
Advertise
ments
Equal
varianc
es
assume
d
Equal
varianc
es not
assume
d
Sig.
2.300
Df
Std.
Mean Error
Sig. (2- Differ Differ
tailed) ence ence
95% Confidence
Interval of the
Difference
Lower
Upper
.136 .701
47
-.644
1.333
.565
8.50
3
-1.047
1.736
Conclusion: From the table above we see that the p/2 value is greater
than 0.05 and hence we reject the hypothesis that males have a
higher positive attitude towards mobile ads as compared to female
users
Top
9. Users who download mobile applications of e-commerce websites
receive customized ads
Two-tailed test
Page 25
Group 1
Std.
Deviation
Std. Error
Mean
2.88
50
1.239
.175
2.94
50
1.132
.160
N
Pair 1 You use your phone to download e-commerce
shopping application & You receive customized
advertisements on your phone
50
.416
.003
Mean
Pair 1
-.060
95% Confidence
Std.
Std. Interval of the
Deviatio Error Difference
n
Mean Lower
Upper
1.284 .182
-.425
.305 -.330
Sig. (2tailed)
df
49
.743
Page 26
Group 1
10.
Users who perceive mobile ads as unsafe find mobile
advertisements an intrusion of privacy
Two-tailed test
Paired Samples Statistics
Mean
Std.
Deviation
Std. Error
Mean
2.84
49
.943
.135
Advertisements on mobile
phone violate privacy
2.49
49
.960
.137
Correlation Sig.
49
.665
.000
Df
Sig. (2tailed)
95% Confidence
Interval of the
Std.
Deviatio Std. Error Difference
Mean n
Mean
Lower
Upper
Pair 1
Advertisem
ents on
mobile
phone are
unsafe Advertisem
ents on
mobile
phone
violate
privacy
.347
.779
.111
.123
.571 3.119
48
.003
Group 1
Top
11.
Users who pay extra to block ads on mobile aps use the DND
feature
Two-tailed test
Paired Samples Statistics
Mean
Pair 1 Do you activate do not disturb to
block advertisements on your
mobile phone
Do you pay extra in an app to
block ads?
Std.
Deviation
Std. Error
Mean
1.88
49
.781
.112
2.67
49
.591
.084
N
Pair 1 Do you activate do not disturb to block
advertisements on your mobile phone & Do you
pay extra in an app to block ads?
Page 28
49
.228
.116
Group 1
Std.
Std.
Deviati Error
Mean on
Mean
Pair 1 Do you
activate do
not disturb to
block
advertisemen
ts on your
-.796
mobile phone
- Do you pay
extra in an
app to block
ads?
.866
Sig. (2tailed)
df
95% Confidence
Interval of the
Difference
Lower
.124
Upper
-1.045
-.547
6.437
48
.000
Std.
Deviation
Std. Error
Mean
3.14
50
1.212
.171
3.22
50
1.217
.172
Page 29
Group 1
N
Pair 1 Mobile Advertisements help make decision on the go
& You subscribe to offers of your favourite Ecommerce websites
50
.477
.000
Mean
Pair Mobile
1
Advertiseme
nts help
make
decision on
the go - You
subscribe to
offers of your
favourite Ecommerce
websites
-.080
Std.
Std.
Deviati Error
on
Mean
1.243
Sig. (2tailed)
df
95% Confidence
Interval of the
Difference
Lower
.176
Upper
-.433
.273 -.455
49
.651
Page 30
Group 1
Descriptives
How helpful was the Mobile Ad in your purchase decision
N
SMS
.900 .260
1.01
2.16
Flash Ad
5 2.40
.548 .245
1.72
3.08
Advertisement
with
applications
5 2.00
.707 .316
1.12
2.88
22 1.86
.834 .178
1.49
2.23
Total
ANOVA
Mean
Square
df
2.474
1.237
Within Groups
12.117
19
.638
Total
14.591
21
Post HOC
Page 31
Sig.
1.940
.171
Group 1
Multiple Comparisons
How helpful was the Mobile Ad in your purchase decision
LSD
(I) What type
of
(J) What type of
Advertisement Advertisement it
it was
was
SMS
Flash Ad
Mean
Difference
(I-J)
95% Confidence
Interval
Std.
Error Sig.
Lower
Bound
Upper
Bound
Flash Ad
-1.71
.07
Advertisement
with applications
-1.31
.47
SMS
-.07
1.71
Advertisement
with applications
-.66
1.46
-.47
1.31
-1.46
.66
Advertisement SMS
with
Flash Ad
applications
Conclusion: We see that the preference of users for the three ads is
different. And from the LSD we see that SMS and advertisement with
applications and SMS with Flash ads have variances which are
significantly different.
Top
14.
Users prefer to receive less than 2.5 ad per day
One-tailed test
One-Sample Statistics
N
How frequently do
would you like to
receive ads on your
mobile?
Std.
Deviation
Mean
48
2.00
Page 32
1.185
Std. Error
Mean
.171
Group 1
One-Sample Test
Test Value = 2.5
t
How frequently do would
you like to receive ads on
your mobile?
-2.923
Sig. (2tailed)
Df
47
.005
95% Confidence
Interval of the
Difference
Mean
Difference Lower
-.500
Upper
-.84
Page 33
-.16
Group 1
References
http://www.valuebasedmanagement.net/methods_3C's.html
http://www.practicalecommerce.com/articles/3301-How-to-Analyze-YourEcommerce-Competitors
http://www.searchenginepeople.com/blog/secret-shoppingcompetition.html#ixzz2wiSDDGTV
Analysis of the determinants of consumers m-commerce usage activity by Felix
T.S. Chan and Alain Yee-Loong Chong
Young consumers motives for using SMS and perceptions towards SMS
advertising by Ian Phau and Min Teah
Page 34