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A  New  Way  of  Reaching  Customers  

-­‐  

An  exploration  of  the  differences  between  mobile  and  email  marketing

 

 

   

Author(s):   Oscar  Carlsson,  861021  

Johan  Forshällen,  860224   David  Knape,  870710  

Tutor:   Professor  Anders  Pehrsson  

Examiner:   Assistant  Professor,  Dr.  Sarah   Philipson  

Subject:   Marketing,  4FE02E  

Level  and  semester:   Masters  Programme  Degree,   Semester  8.  2012-­‐05-­‐21  

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Acknowledgement   Växjö  2012-­‐05-­‐28    

The  execution  of  this  thesis  has  been  a  great  challenge  with  many  obstacles  along   the   way.   It   has   also   been   a   learning   experience   where   we   had   the   privilege   to   immerse  in  this  new  and  exiting  area  of  marketing  and  consumer  behavior.  During   our   proceeding   we   have   been   in   contact   with   a   numbers   of   vital   persons   with   different  interesting  expertise.    

We  would  like  to  express  our  gratitude  to  Assistant  Professor  Dr.  Sarah  Philipson   for  her  mentorship,  guidelines  and  expertise.  We  would  also  like  to  express  our  best   gratitude   to   our   tutor   Professor   Anders   Pehrsson   and   our   opponents   who   constantly  provided  us  with  interesting  and  important  insights  and  suggestions  for   improvements.  

We  would  also  like  to  express  our  gratitude  to  Relevant  Relations  Lawyer  AB  and   especially   Ola   Rynge   and   Carl   Henriksson   for   their   expertise   and   that   they   constantly  has  provided  us  with  vital  information,  activities  and  contacts.    

Finally,  we  would  like  to  express  our  gratitude  to  the  pharmacy  Apotek  Hjärtat  and   Mikael  Lindell  for  his  expertise  within  the  field.  Also,  thanks  to  all  respondents  who   took  part  of  our  survey.  

             

____________________                                        ____________________                                    ____________________  

   Oscar  Carlsson     Johan  Forshällen     David  Knape    

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Abstract    

Master  Thesis  15crd,  School  of  Business  and  Economics,     Linnaeus  University  &  Course  4FE02E,  Spring  2012   Authors:     Carlsson,  Oscar  861021  

Forshällen,  Johan  860224   Knape,  David  870710   Tutor:  Professor  Anders  Pehrsson  

Examiner:  Assistant  Professor,  Dr.  Sarah  Philipson  

Title:  A  new  way  of  reaching  costumers  -­‐  An  exploration  of  differences  between   mobile  and  e-­‐mail  marketing  

Keywords:  Mobile  marketing,  E-­‐mail  marketing,  Marketing  channel  evaluation,   Consumer  behavior.    

Background:   Since   the   mid   1990s   the   usage   of   mobile   phones   has   been   increasing   exponentially   (Bauer,   Barnes,   Reichardt   and   Neumann   2006)   and   many   firms   are   aware   of   the   upraising   potential   with   mobile   marketing.   Thus,   the   impact   of   mobile   marketing   is   not   yet   fully   exploited   and   in   need   of   investigation   to   fully   understand   its   potential.   E-­‐mail   is   another   marketing   channel   that   is   claimed   to   be   decreasing   in   effectiveness.   This   thesis   explores   where  these  channels  stands  today.    

Purpose:   The   purpose   of   this   thesis   is   to   explore   differences   in   advertising   response   between   mobile   marketing   through   applications   and   electronic   mails.    

Research   question:   What   differences   can   be   identified   in   the   consumer   buying   process   when   exposed   to   an   offer   trough   the   mobile   marketing   channel  compared  to  the  e-­‐mail  marketing  channel?  

Method:  We  have  implemented  a  qualitative  and  deductive  study  where  we   expose   one   sample   for   an   offer   coming   from   the   mobile   marketing   channel   and   one   sample   exposed   to   an   offer   coming   from   the   e-­‐mail   marketing   channel.  The  thesis  is  of  a  comparative  character  and  the  selection  is  a  non-­‐

probability  sampling.    

Conclusions:  Offers  coming  through  the  mobile  marketing  channel  are  easier  to   recall,   perceived   as   more   attractive   and   lead   to   purchase   decisions   at   a   higher   rate  than  offers  coming  from  the  e-­‐mail  marketing  channel.      

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Table  of  Contents  

1.  Background  ...  7  

1.1   Problem  Discussion  ...  9  

1.2  Purpose  ...  10  

1.3  Research  Question  ...  10  

1.4  Delimitations  ...  10  

2.  Literature  Review  and  analysis  model  ...  11  

2.1  Hierarchy  of  Effects  ...  11  

2.2  The  Development  of  Hierarchy  of  Effects  ...  11  

2.3  Cognition,  Affect  and  Connotation  ...  15  

2.3.1  Cognition  ...  15  

2.3.2  Affect  ...  15  

2.3.3  Connotation  ...  16  

2.4  Analysis  model  ...  16  

3.  Method  ...  18  

3.1  Research  strategy  ...  18  

3.1.1   Theory  and  Research  ...  18  

3.1.2   Selection  of  Purpose  ...  18  

3.1.3   Epistemological  Orientation  ...  19  

3.1.4   Research  approach  ...  19  

3.2   Research  Design  ...  20  

3.2.1   Research  Method  ...  20  

3.2.2   Sample  ...  21  

3.3  Summary  of  Our  Methodological  Choices  ...  23  

3.4   Operationalization  ...  24  

3.5  Analyze  method  ...  25  

3.6  Trustworthiness  and  Authenticity  ...  26  

3.6.1  Trustworthiness  ...  27  

3.6.2  Authenticity  ...  28  

4.  Empirical  Data  ...  29  

4.1  Mobile  application  marketing  ...  29  

4.2  E-­‐mail  marketing  ...  31  

5.  Analysis  ...  33  

5.1  Mobile  marketing  ...  33  

5.1.1  Attention  ...  35  

5.1.2  Interest  ...  35  

5.1.3  Desire  ...  35  

5.1.4  Action  ...  35  

5.2  E-­‐mail  ...  36  

5.3  A  comparison  between  Application  and  E-­‐mail  ...  39  

5.3.1  Attention  ...  39  

5.3.2  Interest  ...  40  

5.3.3  Desire  ...  40  

5.3.4  Action  ...  41  

6.  Conclusion  ...  42  

7.  Recommendation  for  further  research  ...  43  

8.  Reflection  ...  44    

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References  ...  45  

Electronic  references  ...  47  

Interviews  ...  48  

Appendix  ...  49  

Appendix  I  ...  49  

Appendix  II  ...  51  

Appendix  III  ...  52  

Appendix  IIII  ...  55    

                                           

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Appendixes  

I  –  Mobile  market  description   II  –  Complete  question  form   III  –  Key  words  e-­‐mail   IIII  –  Key  words  application    

Table  of  Figures    

Figure   1,   Page   13,   Matrix   illustration   of   –   Vaughn   (1980)   in   how   advertising   works.  

Figure   2,   Page   16,   illustration   of   –   by   Duncan   and   Mariarty   (1998)     A  Communication-­‐Based  Marketing  Model  for  Managing  Relationships  

Figure  3,  Page  17,  Own  illustration  of  analysis  model   Figure  4,  Page  22,  Own  illustration  of  sampling  

Figure  5,  Page  23,  Own  illustration  of  metrological  choices   Figure  6,  Page  25,  analysis  method.  Philipson  (2011)     Figure  7,  Page  26,  analysis  method.  Philipson  (2011)   Figure  8,  Page  39,  Own  illustration  of  buying  process    

               

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1.  Background    

In   this   introducing   chapter   a   background   about   the   market   is   presented.   This   is   followed  by  a  problem  discussion  describing  the  gap  of  knowledge  within  the  field   of   mobile   and   e-­‐mail   marketing.   The   introduction   chapter   culminates   in   to   a   purpose  stated  in  the  end  of  the  chapter.  

 

Since   the   mid   1990s   the   usage   of   mobile   phones   has   been   increasing   exponentially   according   to   Bauer,   Barnes,   Reichardt   and   Neumann   (2006).  

Many   leading   international   brand   manufacturers   like   McDonalds,   IBM   and   Nike  have  used  mobile  phones  as  a  mean  to  convey  commercial  messages  to   their  customers  (Bauer  et  al.  2006).  Taylor,  Voelker  and  Pentina  (2011)  state   that  the  mobile  marketing  industry  the  last  two  years  has  grown  from  almost   nothing   to   a   2   billion   dollar   marketplace,   and   the   growth   is   predicted   to   continue  (Dhar  and  Varshney,  2011;  Friedrich,  Gröne,  Hölbling  and  Peterson,   2009).  Mobile  marketing  is  a  new  media  for  communicating  with  customers   and   the   growth   for   this   media   can   be   explained   by   that   smartphones   have   become  more  common,  (Friedrich  et  al,  2009).  A  smartphone  is  a  cell  phone   that   runs   on   an   operating   software   system   that   provides   a   standardized   interface   and   platform   for   application   developers.   In   general   smartphones   have  bigger  displays  and  more  powerful  processors  than  regular  cell  phones   (Phonescoop,   2012).   Taylor   (2011)   et   al.   confirm   the   popularity   of   smartphones  and  state  that  44%  of  adult  cell  phone  users  in  North  America   are  smartphone  users,  62%  of  them  download  an  application  within  30  days   and   54%   of   the   smartphone   users   frequently   use   their   smartphones   while   shopping.  These  numbers  are  even  higher  among  users  aged  25-­‐35.    

Dhar  and  Varshney  (2011)  state  that  one  of  the  reasons  for  the  potential  of   mobile   marketing   trough   smartphones   is   based   on   that   smartphones   today   are  small;  the  users  carry  them  most  of  the  time.  This  allows  marketers  to  get   an   almost   instant   access   to   their   target   groups.   There   are   different   ways   of  

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wide   spread   on   the   Swedish   market,   according   to   Rynge   (2012).   There   are   many  variations  offered  on  the  market,  Short  Message  Service  (SMS),  mobile   coupons   and   smartphone   applications   are   some   common   ways   of   communicating  trough  smartphones  (Rynge,  2012).  One  actor  who  is  at  the   forefront   of   mobile   marketing   in   the   Swedish   market   is   Relevant   Relations   Layer.   They   provide   an   application   called   ForMembers.   The   purpose   of   this   application  is  that  users  should  be  able  to  collect  their  different  memberships   in   loyalty   programs   in   one   application,   enhancing   the   users   control   and   overview   of   the   memberships.   The   benefit   for   firms   using   ForMembers   for   their  loyalty  programs  is  that  they  can  customize  commercial  messages  and   offers   to   their   customers   through   the   use   of   different   attributes   in   the   application  (Relevant  Relations,  2012).    

Relevant   Relations   and   similar   firms   are   aware   of   the   growth   potential   of   phones  as  a  marketing  tool.  Thus,  the  impact  of  mobile  marketing  is  not  yet   fully   exploited   and   need   to   be   investigated   to   fully   understand   the   mobile   marketing  channel  and  it’s  potential.  They  need  to  understand  how  effective   the   channel   is   compared   to   other   marketing   channels.   They   need   to   understand   customers’   attitude   towards   mobile   marketing,   how   the   customers   use   this   channel   in   their   buying   process   and   the   impact   mobile   marketing  has  on  brand,  sales  and  store  visits. This  is  in  order  to  decide  how   they   should   use   mobile   marketing   in   their   marketing   strategy   in   a   relevant   and  effective  way.  See  the  market  description  (appendix  I)  for  further  reading   about  the  need  and  development  of  mobile  marketing.  

Electronic   mail   (e-­‐mail)   is   one   of   the   marketing   channels   that   mobile   marketing   can   be   compared   against.   E-­‐mail   marketing   has   been   researched   by  e.g  Marinova,  Murphy  and  Massey  (2002)  who  state  that  permission  based   e-­‐mail  marketing  is  more  effective  than  so  called  spam.  Spam  is  when  a  large   quantity   of   e-­‐mails   is   sent   to   targeted   groups   without   permission.   The   statistics  indicates  that  even  permission  based  e-­‐mail  marketing  is  decreasing   in  effectiveness  and  a  reason  for  this  could  be  that  the  targeted  group  often   shield  themselves  against  these  messages.    

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It   is   therefore   of   interest   to   marketing   managers,   consultants   etc.   to   know   how   to   use   these   different   channels   in   their   marketing,   what   implications   usage   of   each   channel   has   and   how   the   response   from   targeted   groups   will   differ  between  the  channels.  

1.1 Problem  Discussion  

The  hierarchy  of  effects  is  a  widely  accepted  and  dominating  theory  in  the  areas   of   ad   testing   and   market   channel   evaluation   (Grover   and   Vriens,   2006;   Barry   2002).  Hierarchy  of  effects  is  a  theory  with  numerous  sub-­‐developments,  many   evolved   around   the   AIDA   model   with   small   variations.   AIDA   is   a   theoretical   model  who  explains  the  process  of  consumer  going  from  attention  of  a  message   to   a   potential   purchase.   AIDA   includes   four   different   steps,   attention,   interest,   desire  and  action  (Strong,  1925).  Related  sub-­‐developments  of  AIDA  have  been   empirically  validated,  but  it  is  reasonable  to  argue  that  the  empirical  validation   of   the   theory   is   insufficient,   which   Weilbacher   (2001)   claims.   Hence,   further   empirical   validation   of   the   AIDA   theory   is   needed.   Mobile   marketing   is,   in   opposition   to   hierarchy   of   effects,   considered   to   be   a   theoretical   gap.   It’s   a   relatively   new   area   of   research,   where   there   is   no   emerging   or   dominating   theories.   Research   about   e-­‐mail   marketing   has   a   longer   history   than   mobile   marketing,  but  there  is  still  no  emerging  or  dominating  theory  in  the  field.  Both   mobile   marketing   and   e-­‐mail   marketing   are   in   need   of   further   research.  

Empirical  validations  of  AIDA  within  these  fields  is  applicable.        

Smutkupt,  Krairit  and  Esichaikul  (2010)  stress  the  importance  of  taking  fast   moving  technology  into  account  when  researching  new  marketing  tools.  Each   new  technique  within  the  marketing  business  has  unique  characteristics.  The   various  impacts  of  these  new  emerging  technologies  have  on  customers  and   branding  needs  to  be  investigated  for  firms  to  adopt  marketing  strategies  in   relevant  ways.    Today  there  is  a  gap  in  knowledge  about  consumer  behavior   as   individualized   mobile   marketing   tool.   The   potential   of   a   tool   with   such   characteristics   has   not   been   fully   explored.   This   means   that   it   has   to   be   showed   how   such   tools   should   be   used   as   a   part   of   marketing   (Mirbagheri   and   Hejazinia,   2010:   Smutkupt   et   al.   2010:   Varnali   and   Aysegül,   2010).  

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effects   that   mobile   marketing   has   on   the   consumers,   marketers   will   not   be   able  to  get  positive  returns  from  their  programs.  Thus,  research  is  needed  to   measure  the  results  on  e.g.  store  visits  and  sales,  and  the  effects  on  consumer   behavior   and   brand   perception.   Several   approaches   and   areas   need   to   be   sourced.   Fundamental   to   understanding   ought   to   be   the   effects   on   the   consumers   buying   process,   when   exposed   to   mobile   marketing   in   smartphones.  Another  tool  within  marketing  is  e-­‐mail.  Marinova,  Murphy  and   Massey  (2002)  state  that  e-­‐mail  exploded  in  popularity  as  a  marketing  tool  in   the  late  90´s  but  has  since  been  decreasing  in  efficiently.  They  state  that  more   research   is   needed   within   e-­‐mail   marketing   and   the   questions   whether   mobile   marketing   is   becoming   more   efficient   as   a   marketing   tool   than   the   more  traditional  e-­‐mail  marketing  remains.  The  problem  within  the  research   area  can  be  summarized  as  a  lack  of  knowledge  within  the  mobile  and  e-­‐mail   marketing  channels.  Which  channel  is  more  efficient,  within  which  segments   and  how  are  different  segments  reacting  to  ad-­‐exposure  from  these  channels.    

1.2  Purpose

The   purpose   of   this   thesis   is   to   explore   differences   in   advertising   response   between  mobile  marketing  through  applications  and  electronic  mails.    

1.3  Research  Question  

What   differences   can   be   identified   in   the   consumer   buying   process   when   exposed  to  an  offer  through  the  mobile  marketing  channel  compared  to  the  e-­‐

mail  marketing  channel?  

1.4  Delimitations  

This  thesis  is  delimited  to  two  marketing  channels,  mobile  marketing  and  e-­‐

mail.  The  time  of  advertising  exposure  against  the  consumer  is  also  delimited.  

The  geographical  aspect  is  delimited  to  Växjö,  Sweden.  The  final  delimitation   is   the   business,   where   the   thesis   only   is   exploring   the   pharmaceutical   business,   the   thesis   therefore   particularly   explores   their   segments.   The   common  reasons  for  these  delimitations  are  time  restrictions.  

 

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2.  Literature  Review  and  analysis  model    

This  chapter  contains  a  review  of  the  hierarchy  of  effects.  Further  on  the  chapter   contains   subjects   involved   in   the   hierarchy   of   effects   such   as   the   AIDA   model,   cognition,   affect   and   connotation.   Further   is   the   state   of   the   art,   which   describes   where  the  current  research  within  the  field  is  today.  Then  the  chapter  ends  with  an   analysis  model  showing  what’s  being  analyzed.    

 

2.1  Hierarchy  of  Effects  

Advertising   research   grew   dramatically   in   the   1950´s   when   television   was   introduced   as   a   media.   In   the   1980´s   the   focus   became   more   on   measuring   sales  promotion.  One  common  theory  within  ad-­‐testing  is  hierarchy  of  effects.  

It   is   a   linear   theory   that   presumes   that   the   consumers   must   go   through   a   rational  and  sequential  series  of  steps  that  ends  up  in  e.g.  a  buying  decision   (Grover  and  Vriens  2006).  

A  review  of  the  advertising  and  marketing  literature  leads  to  the  conclusion   that  there  are  several  different  models  of  hierarchy  of  effects  that  have  been   developed  over  time.  The  development  of  the  hierarchy  of  effect  models  has,   according   to   Barry   (1987),   gone   trough   three   phases;   “early   development”,  

“modern  development”  and  “challenge  &  defense”.  

2.2  The  Development  of  Hierarchy  of  Effects  

The  very  first  hierarchy  of  effects  model  was  developed  in  1898  and  was  then   a  theoretical  framework  where  Strong  (1925)  described  how  salespeople  had   to   attract   attention,   maintain   interest   and   create   desire   to   be   successful.  

Shortly  afterwards,  “get  action”  was  added  and  the  model  was  to  be  known  as   AIDA.     The   model   is   one   of   the   models   most   referred   to,   when   it   comes   to   advertising,  personal  selling  and  how  people  respond  to  sales  and  advertising   presentations.  The  early  development  started  in  1898  and  ended  in  1959,  and   various   models   of   AIDA   were   released   during   this   time.   Common   for   these   models  is  that  they  all  were  descriptive  representation  based  on  intuition  and   logic.  There  was  no  empirical  analysis  of  any  of  these  models  at  this  point  in  

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are   the   foundation   of   the   discussion   of   hierarchies   during   the   modern   development  phase  (Barry,  1987).  

In  the  1960’s  human  psychology  became  a  bigger  focus  in  the  research  about   the   hierarchy   of   effects.   Lavidge   and   Steiner   (1961)   was   one   of   the   first   to   connect  the  human  psychological  aspects  of  cognition,  affect  and  connotation   to   the   hierarchy   of   effects.   Their   view   on   the   hierarchy   of   effects   was   as   follows:  

 

AIDA  component   Lavidge  and  Steiner,  1961     Behavioral     Attention     Awareness  and  knowledge     Cognition     Interest  &  Desire   Liking  and  preference     Affect   Action       Conviction  and  purchase     Connotation    

These   different   behavioral   components   all   reflect   different   dimensions   of   human   behavior.     The   first,   cognitive,   are   rational   and   intellectual   states.  

Affect   refers   to   feelings   and   emotional   states.   Connotations   are   behavioral   states,   the   striving,   a   constant   tendency   to   treat   objects   as   positive   or   negative   goals   and   it   is   in   this   phase   where   a   buying   decision   is   made.  

(Lavidge  and  Steiner,  1961)  

In   the   same   period   another   recognized   hierarchy   of   effects   model   was   released  by  Frankel  (1964).  The  name  of  the  model  is  “Defining  advertising   goals   for   measured   advertising   results”   (DAGMAR)   and   the   main   aim   is   to   simplify   the   measurement   of   advertisement   campaigns.   The   main   idea   with   DAGMAR  is  to  define  advertising  goals  and  measure  after  these  goals  and  not   specifically   after   the   sales   being   made. This is   since   there   are   a   lot   of   other   relevant  factors  that  comes  as  a  result  from  marketing  other  than  sales.  New   communication   objectives   that   are   more   concrete,   easier   to   measure   and   based  on  a  hierarchy  of  effects  are  promoted  in  DAGMAR.  The  results  are  a   more   precise   way   of   measuring   than   then   direct   sales   results   to   determine  

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the   relevance   and   effectiveness   of   the   advertising   campaign   according   to   Frankel  (1964).    

In  the  1970´s  and  80´s  new  models  and  alternative  orders  of  the  traditional   hierarchy   of   effects   started   to   show   up.   There   were   numerous   theories   and   models  introduced,  but  the  most  influential  was  the  grid  model  presented  by   Vaughn   in   1980   (Barry,   1987).   Vaughn   (1980)   state   that   advertising   works   but   that   the   issue   is   to   define   how   it   works.   To   make   the   picture   clearer   Vaughn  (1980)  presents  a  matrix  based  on  thinking,  feeling,  high  involvement   and   low   involvement,   suggesting   that   the   route   of   persuasion   is   altered   depending   on   the   involvement   of   the   product   and   the   characteristics   of   the   consumer.  Below  is  Vaughn’s  (1980)  model  with  explanations.    

Thinking         Feeling     High  

involvement  

 Low  

involvement  

 

 

Figure  1,  Matrix  illustration  of  –  Vaughn  (1980)     in  how  advertising  works.  

Quadrant   1   –   Informative/Thinker   -­‐   Hierarchy   of   effect:   Learn,   Feel,   Do
 Example:  Car,  House  and  Furnishing

Quadrant   2   –Affective/Feeler   –   Hierarchy   of   effect:     Feel,   Learn,   Do
 Example:  Jewelry  and  Fashion

Quadrant   3   –   Habit   Formation/Doer   -­‐   Hierarchy   of   effect:   Do,   Learn,   Feel   Example:  Household  Items

Quadrant   4   –   Self-­‐satisfaction/Reactor   -­‐   Hierarchy   of   effect:   Do,   Feel,   Learn   
Example:  Liquor,  Cigarettes  and  Candy  

Quadrant  1   Quadrant  2  

Quadrant  3   Quadrant  4  

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The   type   of   products   that   are   in   each   quadrant   is   not   fixed;   different   individuals   are   more   or   less   involved   in   different   products   and   it   changes   over  their  life.

Later,   Petty   and   Caccioppo   (1986)   described   the   elaboration   likelihood   model   (ELM).  A  model  which  suggest  that  attitudes  change  through  either  the  central   route  of  persuasion  or  the  peripheral  route.  The  central  route  is  used  to  evaluate   high   involvement   products.   The   route   of   persuasion   consists   of   logical   argumentation.   The   peripheral   route   is   used   when   evaluating   low   involvement   product   and   consist   of   what   the   user   finds   visually   attractive.   Goldenberg,   Mazursky,  and  Solomon  (1999)  delve  into  the  area  of  advertising  and  state  that   ads  using  creative  templates  were  more  likely  to  be  recalled.  The  different  aspect   within  the  hierarchy  of  effects  is  a  heavily  researched  area.  Smith,  Chen  and  Yang   (2008)   state   that   its   clear   that   different   authors   historically   have   had   different   views  and  opinions  regarding  the  different  steps  of  the  hierarchy  of  effects,  but  it   has  always  been  generalized  as  a  sequence  going  from  cognition  (attention),  to   affect  (attitude)  and  to  end  in  connotation  (purchase).  The  connection  between   social   psychological   concepts   and   AIDA   are   fuzzy,   but   could   be   illustrated   as   follows:      

 

AIDA       Concept     E.g.  

Attention     Cognition     Ad  exposure   Interest       Cognition  &  Affect   Interest  in  product  

Desire       Affect       A  whish  to  buy  the  product   Action         Connotation     Buying  of  the  product      

     

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2.3  Cognition,  Affect  and  Connotation  

The   hierarchy   of   effects   is   strongly   rooted   in   the   psychological   concepts   of   cognition,  affect  and  connotation.  It  is  therefore  important  to  understand  the   interaction   between   these   concepts   and   their   relevance   to   the   hierarchy   of   effects  (Barry,  1987).    

2.3.1  Cognition  

Cognition   is   fundamental   in   advertising;   it   is   the   mental   processing   that   occurs  when  people  are  exposed  to  information.  The  impact  of  advertising  on   the   cognitive   component   in   the   hierarchy   has   been   studied   extensively.  

Recognition   and   recall   are   both   elements   of   cognition.   Recognition   is   when   e.g.  a  brand  is  recognized  when  the  consumer  is  exposed  to  it.  Recall  is  when   e.g.  a  consumer  can  recall  a  brand  without  any  recent  exposure  to  it.    Studies   show  for  example  that  the  ability  to  recall  an  advertisement  is  enhanced  if  the   customer  is  exposed  to  it  more  often.  Recall  together  with  comprehension  are   proven   to   be   important   factors   when   moving   down   the   hierarchy   of   effects   (Barry,  1987).  

2.3.2  Affect  

Affect   has   for   a   long   time   been   a   stepchild   to   cognition   in   understanding   consumer   behavior.   It   is   generally   accepted   that   affect   consists   mostly   of   attitudes  (Barry,  1987).  An  attitude  is  “a  relatively  enduring  organization  of   beliefs   about   an   object   or   situation,   predisposing   one   to   respond   in   some   preferential   manner”   (Rokeach,   1966:530).     Myers,   Abell,   Kolstad   and   Sani   (2010)  describe  attitude  as  a  reaction  towards  something  or  someone,  rooted   in  one´s  beliefs  and  exhibited  in  one´s  feeling  and  means  to  act.  The  authors’  

also   state   that   attitudes   are   the   most   important   area   of   social   psychology,   because  attitudes  may  answer  the  question:  Why  do  people  do  what  they  do?  

An  assumption  is  that  our  private  beliefs  and  feelings  determine  our  public   behavior.   Myers   et   al.   (2010)   means   that   if   we   want   to   change   people’s   behavior,  we  need  to  change  their  attitudes.  

   

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For   a   long   time   marketers   and   advertisers   have   sought   to   show   the   relationship  between  attitudes  and  buying  behavior  (Barry,  1987).  Assael  and   Day   (1968)   concluded   that   the   affective   components   of   the   hierarchy   of   effects  are  more  powerful  in  explaining  market  share  variance  than  either  the   cognition  or  the  connotation  components.  

2.3.3  Connotation  

Gelb,   Hong   and   Zinkhan   (1985)   state   that   connotative   outcomes   can   be   influential  and  persuasive.  It  affects  the  respondents  stated  intention  to  buy   the   advertised   brand.   Barry   (1987)   describes   two   schools   of   conative   response  measure.  One  who  promotes  audience  tendency  to  change  attitude   and   reevaluate   a   brand   image.   The   other   school   means   that   the   purpose   of   advertising   is   to   promote   sales   and   that   is   what   should   be   measured.   This   means  that  connotation  can  be  measured  in  purchase  decisions  such  as  sales   and   profits,   but   another   aspect   is   the   mental   process   when   taking   the   purchase  decisions,  if  it  is  an  impulse  or  a  volitional  act  (Barry,  1987).  

2.4  Analysis  model  

A   classical   marketing   communication   models   is   described   by   Duncan   and   Mariarty    (1998)  and  can  be  illustrated  as  follows:  

 

Figure  2,  illustration  of  A  Communication-­‐Based  Marketing  Model  for  Managing   Relationships  –  Duncan  and  Mariarty  (1998)    

 

Source  -­‐  Is  where  the  message  origins  from.    

Message  -­‐  The  content  of  what  being  send.    

Channel  -­‐  How  the  message  is  being  send.    

Noise  -­‐  Distractions  who  affect  the  perception  of  the  message.    

Receiver  –  One  who  perceive  the  message  

Source   Message   Channel   Noise   Receiver  

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The  problem  investigated  in  this  thesis  is  to  see  how  different  channels  can  affect   the  response  of  the  receiver.  This  illustrated  in  following  analysis  model.  Noise  is   taken  out  from  this  model  because  it  is  not  measured  or  taken  into  account  when   analyzing.    

       

Figure  3,  Own  illustration  of  analysis  model   Source  –  Origin  of  message    

Message  –  A  special  offer  

Chanel  –  1)  Mobile  marketing  channel  and  2)  E-­‐mail  marketing  channel   Receiver  –  One  who  perceive  the  message  

Response  –  How  far  the  receiver  follows  trough  the  AIDA  model.  

 

 

 

       

 

   

Source   Message  

Mobile   Marketing  

Channel   Receiver  

response   E-­‐mail  marketing  

channel  

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3.  Method    

This   chapter   gives   the   opportunity   to   take   part   of   and   assess   the   reasoning   and   thinking   that   characterized   the   development   of   the   thesis.   Describing   the   whole   research   design   contains   parts   like   research   strategy,   research   design,   operationalization,  analysis  model,  trustworthiness  and  authenticity.    

 

3.1  Research  strategy   3.1.1   Theory  and  Research

Deduction  means  that  the  researcher  first  review  the  theories  within  the  field,   which  they  then  are  testing  empirically.  On  a  deeper  level  deduction  is  about   theory  evaluation.  The  researcher  concludes  a  set  of  hypotheses  that  is  based   on   the   existing   knowledge   within   the   research   area.   These   hypotheses   are   then   empirically   evaluated.   Bryman   and   Bell   (2005)   conclude   that   a   qualitative   research   often   is   inductive,   but   can   also   be   considered   as   deductive  if  the  researcher  tries  a  theory  instead  of  generating  new  theories.  

This  study  has  a  deductive  approach  since  the  questions  are  founded  in  the   theoretical  AIDA  model,  which  we  are  testing  empirically.    

The   procedure   of   the   study   is   as   follows. The   purpose   with   this   study   is   to   explore   the   difference   in   advertising   response   between   mobile   marketing   trough   applications   and   electronic   mails.   The   theoretical   foundation   for   the   thesis  is  the  hierarchy  of  effects.  AIDA  is  considered  as  the  most  appropriate   for  the  thesis  within  the  hierarchy  of  effects.    From  these  theory  questions  are   formulated   for   the   empirical   investigation.   The   empirical   data   was   then   gathered   through   telephone   interviews.   The   empirical   data   was   then   analyzed  according  to  a  set  procedure  developed  by  Philipson  (2011).  

3.1.2   Selection  of  Purpose  

The  choice  of  purpose  should  be  based  on  the  level  of  knowledge  that  already   exists   within   the   research   area.   Explorative   purpose   is   used   when   the   knowledge  within  the  area  is  low  and  the  research  phenomena  needs  to  bee   understood  to  build  further  research  (Wallén  1996).  Mobile  marketing  and  e-­‐

mail  marketing  is  classified  as  a  theoretical  gap  and  the  knowledge  within  the  

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areas   is   considered   as   low.   The   purpose   should   therefore   be   explorative   in   order  to  create  an  understanding  for  the  area.    

3.1.3   Epistemological  Orientation

The   epistemological   positions   for   this   study   is   interpretation-­‐oriented   because   the   study   seeks   to   understand   instead   of   explain.   Bryman   and   Bell   (2005)   state   that   an   interpretation-­‐oriented   position   includes   empirical   understanding  of  human  action  more  than  the  external  factors  affecting  the   behavior.  In  this  study  we  tried  to  understand  the  difference  in  the  consumer   behavior   by   looking   and   comparing   two   marketing   channels.   The   study   thereby   becomes   more   interpretative   than   explaining   because   we   try   to   understand  the  marketing  channels  affect  on  the  human  consumer  behavior   instead  of  explaining  the  results.  

By   taking   an   interpretative   position   we   are   obtaining   the   opportunity   to   understand  how  the  respondents  go  through  the  four  stages  of  AIDA  in  each   channel.   We   are   also   gaining   the   opportunity   to   get   an   enhanced   understanding  about  how  the  consumers  reason  when  exposed  to  the  mobile   marketing  channel  and  e-­‐mail  channel.  

3.1.4   Research  approach

In   this   study   the   qualitative   approach   is   of   choice.   Qualitative   approach   focuses   on   gaining   deepness   in   the   study   by   focusing   on   words   and   social   context.  Qualitative  approaches  tend  to  be  inductive,  to  be  used  as  generation   of   new   theories,   but   there   are   numerous   examples   when   qualitative   approaches   are   used   as   method   to   test   an   existing   theory.   Qualitative   methods  focus  on  understanding  of  the  social  reality  and  how  the  context  is   interpreted   (Bryman   and   Bell   2005).   In   this   study   a   qualitative   method   is   used   to   explore   and   understand   the   differences   between   two   marketing   channels   by   using   an   established   theoretical   model.   We   chose   to   do   a   qualitative   study   because   there   was   a   risk   that   the   number   of   respondents   would   be   too   small   in   a   quantitative   study.   We   also   wanted   to   have   the   respondents   own   words   about   how   they   react   on   the   different   marketing   channels.    

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3.2   Research  Design  

This  study  is  done  with  a  comparative  design  since  we  applied  two  identical   methods  on  two  different  cases.  The  two  cases  in  this  thesis  are  the  mobile   marketing   channel   and   e-­‐mail   marketing   channel.   Bryman   and   Bell   (2005)   conclude   that   we   can   create   a   more   comprehensive   and   evolved   understanding   for   a   subject   if   comparing   it   to   its   opposite.   The   channel   of   interest  in  this  thesis  is  mobile  marketing  and  it  is  compared  against  e-­‐mail   because  of  availability  and  cost  effective  reasons.  There  are  several  different   units  who  can  be  the  object  of  the  analysis.  In  this  thesis  individuals  are  the   targeted  for  analysis.    

Bryman  and  Bell  (2005)  criticize  comparative  studies  by  stating  that  they  can   create   a   tendency   among   the   researchers   to   devote   less   attention   to   the   specific   context   and   instead   focus   on   how   the   different   cases   can   be   put   against  each  other.  This  phenomena  is  avoided  in  this  thesis  by  first  analysing   the  different  cases  separately  in  order  to  put  larger  emphasis  on  the  context   and  then  compare  the  channels  against  each  other.    

3.2.1   Research  Method  

Qualitative  interview  is  a  term  often  used  to  describe  the  type  of  interviews   used  in  qualitative  research.  These  interviews  are  a  type  of  primary  data  and   are   often   less   structured.   In   the   semi-­‐structured   interviews   the   interviewer   has  a  list  of  open  questions.  The  semi-­‐structured  interviews  are  in  this  case   preferred   because   there   are   several   researchers   involved   in   the   empirical   investigation   and   semi-­‐structured   interviews   facilitates   when   creating   a   comparable  structure.  A  more  strict  structure  is  also  preferred  in  this  study   because  the  research  has  a  more  clear  focus  on  a  specific  research  area  and   because   the   analyze   method   is   decided   upon   before   the   empirical   investigation   was   made.   The   semi-­‐structured   interviews   were   held   trough   telephone  because  it  was  considered  as  cheap  and  time  efficient  compared  to   other  channels.    

   

 

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3.2.2   Sample  

A   population   consists   of   all   units   available   for   the   sample   (Bryman   and   Bell,   2005).   Our   population   for   this   study   is   the   number   of   smartphone   users   in   Sweden.  This  number  is  estimated  to  5.17  million  people  (Impera,  2012).  All  of   them  are  able  to  utilize  an  offer  trough  their  phones.    

Sampling   frame   are   for   a   research   all   units   from   which   the   respondents   in   the   population  are  chosen  from  (Bryman  and  Bell,  2005).  The  sampling  frame  in  this   thesis  was  members  of  the  pharmacy  Apotek  Hjärtat  in  Växjö,  who  had  their  e-­‐

mail  registered  at  the  pharmacies  customer  club  when  the  research  was  made.  

This  sampling  frame  is  a  non-­‐probability  sampling  and  the  type  is  a  convenience   sample.   According   to   Bryman   and   Bell   (2005)   a   convenience   sample   consist   of   persons   who   are   currently   available   to   the   researcher.   Convenient   sample   is   ideal  for  pilot  studies  (Bryman  and  Bell,  2005).  The  reason  why  our  study  has  a   convenience  sample  is  because  that  the  study  only  measure  from  the  sampling   frame  that  is  available  (All  the  members  of  the  pharmacy  Apotek  Hjärtat  in  Växjö   who   had   their   e-­‐mail   registered   at   the   customer   club   when   the   research   was   made).  

Within  the  sampling  frame  the  study  had  a  stratified  probability  sample.  Bryman   and  Bell  (2005)  state  that  a  stratified  probability  sample  is  segmented  by  certain   criteria’s.   In   this   study   the   criteria’s   were   the   marketing   channels;   mobile   marketing   and   e-­‐mail.   The   first   stratum   is   X,   which   are   the   ones   who   had   downloaded  the  mobile  application  offered  by  the  company  Relevant  Relations   Layer  and  received  an  offer  from  the  pharmacy  Apotek  Hjärtat.  The  rest  of  the   sampling   frame   where   Y,   the   ones   who   received   an   offer   by   e-­‐mail   from   the   customer   club.   From   these   stratums   a   simple   random   sample   was   made.   The   effect  was  that  all  units  had  the  same  chance  to  become  a  part  of  a  stratum,  but   the   respondent   who   was   a   part   of   the   mobile   marketing   stratum   had   a   bigger   chance  of  becoming  part  of  the  stratified  probability  sample.  This  is  because  the   mobile  marketing  stratum  was  smaller.  The  sampling  is  illustrated  in  following   model:  

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Figure  4,  Own  illustration  of  sampling  

                               

Sample   Stratum   Sampling  Frame  

Population    

5.17  million  units.  

Smartphone  users  in  Sweden  

3300  units   All  units  who  have  an  e-­‐mail   account  connected  to  Klubb  

Hjärtat  

Group  X  (21  units)   All  uniits  who  received  an   offer  from  Apotek  Hjärtat   trough  their    smartphone  

10  Units  

Group  Y  (3300  units)   All  units  who  received  an   offer  from  Apotek  Hjärtat  by  

e-­‐mail    

10  Units  

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3.3  Summary  of  Our  Methodological  Choices  

Following  models  illustrates  the  methodological  choices  

 Scientific  Approach     Deductive  

  Selection  of  Purpose  

 

Explorative  

Epistemological  Orientation    

Interpretation-­‐oriented  

Research  strategy   Qualitative  

 

Research  Design   Comparative  

  Research  Method  

 

Semi-­‐structured  interviews  

Sample    

Non  Probability  sampling  

Data  Collection   Primary  Data  

 

  Figure  5,  Own  illustration  of  metrological  choices  

                .    

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3.4   Operationalization  

Below  is  the  operationalization.  It’s  a  matrix  where  the  questions  used  in  the   gathering  of  the  empirical  data  are  connected  to  the  theoretical  framework.  The   matrix  does  also  describe  what’s  being  measured.    

Question   Connection  to  

theory  

Concept   What  is  measured  and   how  

Q1   Have  you   received  an   offer  from   Apotek  Hjärtat   recently?  

2.3.1   Cognition.  

Barry  (1987).  

B  

Attention   Measures  if  the  

respondent  has  received   any  offer  from  Apotek   Hjärtat.  

Q2   How  did  you   receive  the   offer?  

2.3.1   Cognition.  

(Barry  1987).  

Attention   Measures  what  channel   the  respondent  received   the  offer  from.  

Q3   How  did  you   react  when   noticing  the   offer?  

2.3.2  
Affect   (Rokeach,   1966:  Myers,   et  al  2010:  

Barry  1987:  

Assael  and   Day  1968)  

Interest   Measures  reaction  on   marketing  channel.  

Q4   Can  you   describe  this   offer?  

2.3.2
Affect   (Rokeach,   1966:  Myers,   et  al  2010:  

Barry  1987:  

Assael  and   Day  1968)  

Interest   Measure  recall  of  the   offer.  

Q5   What  where   your  thoughts  of   getting  the  offer   trough  

application/e-­‐

mail  

2.3.2
Affect   (Rokeach,   1966:  Myers,   et  al  2010:  

Barry  1987:  

Assael  and   Day  1968)  

Desire   Measure  attitude  towards   marketing  channel.  

Q6   How  did  you   feel  when  you  

2.3.2
Affect   (Rokeach,  

Desire   Measure  attitude  towards   offer  and  marketing  

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read  the  offer?   1966:  Myers,   et  al  2010:  

Barry  1987:  

Assael  and   Day  1968)  

channel.  

Q7   Did  you  take   part  of  the  offer?  

2.3.3
Connotati on  

(Gelb  et  al   1985:  Barry   1987)  

Action   Measure  purchase  

decision.  

Q8   Why  did/didn’t   you  take  part  of   the  offer?  

2.3.3
Connotati on  

(Gelb  et  al   1985:  Barry   1987)  

Action   Measures  attitude  

towards  purchase   decision  

3.5  Analyze  method  

The   qualitative   analysis   will   follow   the   structure   presented   by   Philipson   (2011).   The   first   step   of   analyzing   is   to   present   the   whole   answer   from   all   respondents   in   a   matrix.   From   here   keywords   were   marked   out   and   sorted   into   subcategories   under   the   questions   and   color   marked.   When   the   respondent  could  not  answer  on  the  question  it  resulted  in  that  a  color  mark   was  not  made.  This  is  illustrated  in  figure  6  

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  From  here  the  keywords  were  removed  and  the  respondents  were  re-­‐arranged   in  order  for  patterns  to  appear  clearer  (figure  7).  Differences  and  similarities  in   the   marketing   channels   could   then   be   identified   and   compared   backwards   through  the  operationalization  against  the  theoretical  concepts.    

 

Figure  7,  analysis  method.  Philipson  (2011)    

3.6  Trustworthiness  and  Authenticity  

Bryman   and   Bell   (2005)   claims   that   reliability   and   validity   are   quality   measurement   strongly   connected   to   the   quantitative   research   methods.  

There  has  been  a  discussion  around  these  subjects  and  how  valid  they  are  for   qualitative   researches.   One   result   of   these   discussions   is   the   two   terms   advocated  by  many  researchers;  trustworthiness  and  authenticity.  These  are   based   on   reliability   and   validity   but   adopted   to   qualitative   research.   The   reason  that  the  trustworthiness  assessed  in  a  qualitative  study  is  considered   is  because  there  is  more  than  one  image  of  the  social  reality  and  therefore  the   authors   can   interpret   their   material   in   different   ways.   The   authenticity   is   according  to  Bryman  and  Bell  (2005)  considered  in  order  ensuring  the  way  in   which   the   surveys   results   provide   a   true   picture   of   the   respondents’   views,   perceptions  and  the  understanding  that  has  been  created  among  the  survey   process.

       

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3.6.1  Trustworthiness

The  trustworthiness  is  composed  in  four  sub-­‐criteria’s:  

Credibility

Bryman  and  Bell  (2005)  argues  that  the  credibility  indicates  how  acceptable   the   study   is   from   another   one’s   angel.   The   thesis   findings   and   results   are   reliable  if  it  is  carried  out  in  accordance  with  existing  rules  and  if  the  results   are   confirmed   with   the   people   who   are   part   of   the   social   reality   that   is   studied.   This   in   order   to   confirm   that   the   research   understands   the   reality   and   their   answers   properly   and   manner.   To   create   a   high   credibility   in   our   thesis  our  results  was  handed  out  to  the  people  interviewed  with  the  aim  to   get  a  confirmation  that  the  description  we  convey  is  accurate.

Transferability

Bryman   and   Bell   (2005)   argues   that   the   transferability   indicates   how   transferable  the  results  from  the  study  can  be  into  a  different  environment.  

They  further  claim  that  it  is  important  that  the  survey  process  is  in  need  to  be   proper  and  detailed  so  that  another  could  do  the  exactly  same  research.  We   have  in  this  thesis  clearly  explained  and  showed  all  our  steps  in  detail  so  that   the  study  is  replicable  in  order  to  make  it  transferable.  

Dependability

Bryman  and  Bell  (2005)  claims  that  the  dependability  is  an  auditing  angle  of   seeing  the  thesis.  It  means  ensuring  that  a  full  and  accessible  explanation  of   all  phases  is  reviewed.  It  should  be  reviewed  by  colleagues  or   other  for  the   thesis  relevant  reviewers  both  during  the  research  and  in  the  end  of  it.  These   persons   should   judge   the   quality   of   the   procedures   chosen   for   the   research   and  how  they  are  applied.  We  ensure  this  by  clearly  presenting  all  phases  of   the  research  process  in  seminars  and  presentations,  we  do  also  have  external   people,  different  opponent  teams,  who  review  our  work  and  judge  the  quality   of  the  procedures  selected  and  how  they  applied.

References

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