Understanding the effects of SMS marketing on consumers' attitude and purchase decision: An Empirical study on Bangladesh

https://doi.org/10.35912/ijfam.v5i2.1445
Published: Sep 18, 2023

Abstract:

Purpose: Telecom firms and businesses use short message marketing to convey information, advertise their products, and establish customer relationships. This study attempts to understand the effects of SMS marketing on consumer attitudes and purchase decisions from a Bangladeshi perspective. This study extends the Ducoffe model of advertising value (entertainment, informativeness, and irritation) by including two constructs: credibility and personalization.

Research methodology: A total of 220 mobile phone users were surveyed using non-probability convenience sampling techniques and data were collected across Dhaka City, Bangladesh. The research model was analyzed using structural equation modeling (SEM). The PLS-SEM (Smart PLS 3.3.9) software was used for path modeling. Before conducting the SEM, this study performed a series of tests to assess the reliability and validity of the data.

Results: The findings revealed that informativeness and credibility are the most decisive factors influencing consumer attitudes and purchasing decisions.

Limitations: This study neglects privacy concerns, social impact, effort anticipation, and monetary incentives that are crucial to customer attitudes and SMS marketing purchase decisions. This study was conducted using data from a single city in Dhaka, Bangladesh, indicating that the findings are limited to that country's scenario.

Contribution: The results of this research provide theoretical contributions to the existing research in this field of study and practical implications for marketing professionals, mobile operators, and third-party service providers in developing appropriate strategies and policies for SMS marketing.

Keywords:
1. SMS marketing
2. SMS advertising
3. Ducoffe model
4. PLS-SEM
5. Attitude
Authors:
1 . Jannatul Nayma
University of Dhaka, Dhaka, Bangladesh
https://orcid.org/0000-0001-8851-4142
2 . Salim Shadman Ratul
University of Dhaka, Dhaka, Bangladesh
https://orcid.org/0000-0002-1724-1607
3 . Sadia Binte Rahman
University of Dhaka, Dhaka, Bangladesh
https://orcid.org/0000-0001-7739-857X
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How to Cite
Nayma, J., Ratul, S. S., & Rahman, S. B. (2023). Understanding the effects of SMS marketing on consumers’ attitude and purchase decision: An Empirical study on Bangladesh. International Journal of Financial, Accounting, and Management, 5(2), 215–233. https://doi.org/10.35912/ijfam.v5i2.1445
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Issue & Section
Vol. 5 No. 2 (2023): September
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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  2. Abdul, R., & Muhammad, A. ( 2019). Behavior and attitude of the mobile phones users towards SMS advertising: A study in an emerging economy. World Journal of Advanced Research and Reviews, 4(1), 25-36.
  3. Aktan, M., Aydogan, S., A. C., & Cad, M. (2016 ). Web advertising value and students’ attitude towards web advertising. European Journal of Business and Management, 8(9), 86-97.
  4. Al-alak, B., & Alnawas, I. (2010). Examining the impact of mobile marketing on consumers' attitudes and purchase intentions. International Journal of Business and Management, 5(3), 28.
  5. Al-alak, B.; Alnawas. (2010). Examining the impact of mobile marketing on consumers' attitudes and purchase intentions. International Journal of Business and Management, 5(3), 28.
  6. Al-Dalahmeh, M., A.-S., O., A., & A. and Obeidat, B. (2018). The Viability of Mobile Services (SMS and Cell Broadcast) in Emergency Management Solutions: An Exploratory Study. International Journal of Interactive Mobile Technologies, 12(1).
  7. Al-Meshal, S., & Almotairi, M. (2013). Consumer acceptance of mobile marketing: an empirical study on the Saudi female. International Journal of Marketing Studies, 5(5), 94.
  8. Altuna, O., & Konuk, F. (2009). Understanding consumer attitudes toward mobile advertising and its impact on consumers behavioral intentions: a crossmarket comparison of united states and turkish Consumers. nternational Journal of Mobile Marketing(4).
  9. Amirkhanpour, M.; Vrontis, D.; Thrassou, A. (2014). Mobile marketing: a contemporary strategic perspective. International Journal of Technology Marketing, 9(3), 252-269.
  10. Anoke, F. N. (2022). Entrepreneurial Marketing And SMEs Growth In Post Covid-19 Era In Awka, Anambra State, Nigeria. . International Journal of Financial, Accounting, and Management, 4(2), pp.115-127.
  11. Ather Yeasir Fahim, A. A. (2022). Unpacking Brand Imperialism in Bangladesh: Emerging Market Perspective. International Journal of Financial,Accounting,and Management (IJFAM), 219-239.
  12. Barwise, P., & Strong, C. (2002). Permission based mobile advertising. Journal of interactive Marketing, 16(1), 14-24.
  13. Barwise, P.; Farley, J.U. (2005). The state of interactive marketing in seven countries: interactive marketing comes of age. Journal of interactive marketing, 19(3), 67-80.
  14. BBS. (2020). Bangladesh Bureau of Statistics Annual Report 2020. Retrieved April 27, 2022, from Ministry of Planning, Government of Banglades: https://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/a1d32f13_8553_44f1_9 2e6_8ff80a4ff82e/2021-06-30-09-23-c9a2750523d19681aecfd3072922fa2c.pdf
  15. Binkley, C. (2012). Teen Stores Try Texts as Gr8 Nu Way to Reach Out. Wall Street Journal.
  16. Brackett, L.K.; Carr, B.N. (2001). Cyberspace advertising vs. other media: Consumer vs. mature student attitudes. Journal of advertising research, 41(5), 23-32.
  17. BRTC. (2021). BTRC | Bangladesh Telecommunication Regulatory Commission. Retrieved April 27, 2022, from http://old.btrc.gov.bd
  18. Chellappa, R., & Sin, R. (2005). Personalization versus privacy: An empirical examination of the online consumer’s dilemma . Information technology and management, 6(2), 181-202.
  19. Chin, W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295-336.
  20. Chowdhury, F., Islam, M., & Rana, M. (2016 ). Investigating factors influencing consumer attitude toward SMS advertising: An empirical study in Bangladesh. International Journal of Business and Management, 11(10), 233-251.
  21. Chowdhury, H., Parvin, N., Weitenberner, C., & Becker, M. (2006). Consumer attitude toward mobile advertising in an emerging market: An empirical study. International journal of mobile marketing , 1(2).
  22. Christensen, P. (2013). Adoption of mobile advertising in Denmark: Investigating psychological factors affecting consumers’ intention to adopt mobile advertising from MNO’. Aarhus University: Denmark, 1-93.
  23. Csikszentmihalyi, M., & Larson, R. ( 2014). Flow and the foundations of positive psychology. 10, 978-94.
  24. Daugherty, T., Logan, K., Chu, S., & Huang, S. (2008). Understanding consumer perceptions of advertising: A theoretical framework of attitude and confidence. In American academy of advertising. American academy of advertising, 308.
  25. Dickinger, A., Haghirian, P., Murphy, J., & Scharl, A. (2004). An investigation and conceptual model of SMS marketing. In 37th Annual Hawaii International Conference on System Sciences. IEEE, 10.
  26. Drossos, D., Giaglis, G., Lekakos, G., Kokkinaki, F., & Stavraki, M. (2007). Determinants of effective SMS advertising: An experimental study. Journal of Interactive advertising, 7(2), 16-27.
  27. Ducoffe, R. (1996). Advertising value and advertising on the web-Blog@ management. Journal of advertising research, 36(5), 21-32.
  28. Durkin, M. ( 2013). Tweet me cruel: Perspectives on battling digital marketing myopia1. The Marketing Review, 13(1), 51-63.
  29. Fornell, C., & Larcker, D. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50.
  30. Goldman, J. (2021). SMS Marketing 2021. Retrieved April 27, 2022, from Insider Intelligence : https://www.emarketer.com/content/sms-marketing-2021
  31. Grewal, D., Bart, Y. S., & Zubcsek, P. (2016 ). Mobile advertising: A framework and research agenda. Journal of interactive marketing , 34 , 3-14.
  32. Hair Jr Chowdhury, H., Parvin, N., Weitenberner, C., & Becker, M. (2006). Consumer attitude toward mobile advertising in an emerging market: An empirical study. International journal of mobile marketing , 1(2).
  33. Hair, J. J., Hult, G., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage publications.
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  35. Hair, J., Sarstedt, M., Ringle, C., & Mena, J. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the academy of marketing science, 40(3), 414-433.
  36. Haq, Z. (2009 ). E-mail advertising: A study of consumer attitude toward e-mail advertising among Indian users. Journal of Retail & Leisure Property, 8, 207-223.
  37. Harman, H. (1976). Modern Factor Analysis. University of Chicago Press.
  38. Henseler, J., Hubona, G., & Ray, P. (n.d.). Using PLS path modeling in new technology research: updated guidelines. Industrial management & data systems.
  39. Henseler, J.; Ringle, C.M.; Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43(1), 115-135.
  40. Ho, S., & Kwok, S. ( 2002). The attraction of personalized service for users in mobile commerce: an empirical study. ACM SIGecom Exchanges, 3(4), 10-18.
  41. Hossan, F., Akter, M., & Ferdous, L. (2015). Mobile advertising in the form of sms–status and poten-tials in bangladesh .
  42. Howarth, J. (2022). Time Spent Using Smartphones (2022 Statistics). Retrieved November 8, 2022, from https://explodingtopics.com/blog/smartphone-usage-stats
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  44. Khalil, I., Rasel, K., Kobra, K., Noor, F., & Zayed, N. (2020). Customers'attitude toward sms advertising: a strategic analysis on mobile phone operators in bangladesh. Academy of strategic management journal, 9(2), 1-7.
  45. Kim, G., Park, S., & Oh, J. (2008). An examination of factors influencing consumer adoption of short message service (SMS) . Psychology & Marketing , 25(8), 769-786.
  46. Kim, M., & Han, S. (2015). Which company is the best for green advertising?: The effects of green advertising on cosumer response focused on advertiser characteristics. Indian Journal of Science and Technology, 8(S7), 414-422.
  47. Kim, N., & Yu, S. ( 2015). Effect of the characteristics of models of public service advertisements on public service behavior intension: Mediated effect on attitude of PSA. Indian Journal of Science and Technology, 8(S8), 250-257.
  48. Kim, Y., Yoon, Y., Kim, Y., & Lee, B. (2012). Strategy to maximize mobile advertising effect in smart environment: Focused on DuCoffe model and TAM . International journal of smart home, 6(3), 9-16.
  49. Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration (ijec), 11(4), 1-10.
  50. Kotler, P. (2003). A framework for marketing management. Pearson Education India.
  51. Krishnamurthy, S. (2001). A comprehensive analysis of permission marketing . Journal of Computer Mediated Communication , 6(2).
  52. Liao, S., Li, Q., & Xu, D. (2005). A Bayesian network-based framework for personalization in mobile commerce applications. Communications of the Association for Information Systems, 15(1), 28.
  53. MacKenzie, S., & Lutz, R. (1989). An empirical examination of the structural antecedents of attitude toward the ad in an advertising pretesting context. Journal of marketing, 53(2) , 48-65.
  54. Mamun, M. (2021). Effectiveness of Sms Advertising in Bangladesh: Drawing on Hierarchy of Effects Model. Archives of Business Research, 9(11).
  55. Mayes, C. a. (2019). Exploring uplift modelling in direct marketing. International Journal of Financial, Accounting, and Management, 1(2), pp.69-79.
  56. Miswanto Muslim, R. R. (2019). The effect of brand image, brand trust and reference group on the buying decision of sneakers. International Journal of Financial, Accounting, and Management (IJFAM), 105-118.
  57. Moto Message. (2010). What The Future Holds For SMS Marketing? Retrieved April 27, 2022, from Wtmarketingpros: https://wtmarketingpros.com/future-sms-marketing
  58. Muhammad, S. S. (2020). Understanding employee brand trust and internal Brand Communications & Training (BCT) effects on employee brand performance: a study of the banking industry. International Journal of Financial, Accounting, and Management, 2(2), pp. 95-120.
  59. Murillo, E. (2017). Attitudes toward mobile search ads: a study among Mexican millennials. Journal of Research in Interactive Marketing.
  60. O’brien, R. (2007). A caution regarding rules of thumb for variance inflation factors. Quality & quantity, 41(5), 673-690.
  61. Podsakoff, P., MacKenzie, S.B., L. J., & Podsakoff, N. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of applied psychology, 88(5), 879.
  62. Rao, B., & Minakakis, L. ( 2003). Evolution of mobile location-based services. Communications of the ACM, 46(12), 61-65.
  63. Rau, P., Zhang, T., Shang, X., & Zhou, J. (2011). Content relevance and delivery time of SMS advertising. International Journal of Mobile Communications, 9(1), 19-38.
  64. Robins, F. (2003). The marketing of 3G. Marketing Intelligence & Planning.
  65. Rosenbaum-Elliott, R. (2021). Strategic advertising management. Oxford University Press.
  66. Saleem, M., & Mustafa, M. (2020). The role of unsolicited SMS marketing in driving consumers’ buying behavior through consumer perception. Academic Journal of Social Sciences (AJSS), 4(3), 724-740.
  67. Salem, M. (2016). Factors affecting consumer attitudes, intentions and behaviors toward SMS advertising in Palestine. Indian journal of science and technology, 9(4), 1-14.
  68. Schulze, C., Schöler, L., & Skiera, B. (2015). Customizing social media marketing. MIT Sloan Management Review, 56(2), 8.
  69. Shadkam, M. (2016). Consumer's attitude to receive and response to SMS advertising . International Journal of Business Information Systems, 24(1), 69-90.
  70. Shareef, M., Dwivedi, Y., Kumar, V., & Kumar, U. (2017). Content design of advertisement for consumer exposure: Mobile marketing through short messaging service. International Journal of Information Management, 37(4), 257-268.
  71. Shavitt, S., Lowrey, P., & Haefner, J. (1998). Public attitudes toward advertising: More favorable than you might think. Journal of advertising research , 38(4), 7-22.
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