A Technology Introduction View on Mobile Marketing

Lee, Dennis and Muhlberger, Ralf M (2007). A Technology Introduction View on Mobile Marketing. In David Taniar (Ed.), Encyclopedia of Mobile Computing and Commerce (pp. 1-14) Hershey, PA, U.S.A.: Information Science Reference, Idea Group Inc (IGI).

Author Lee, Dennis
Muhlberger, Ralf M
Title of chapter A Technology Introduction View on Mobile Marketing
Title of book Encyclopedia of Mobile Computing and Commerce
Place of Publication Hershey, PA, U.S.A.
Publisher Information Science Reference, Idea Group Inc (IGI)
Publication Year 2007
Sub-type Other
ISBN 9781599040028
Editor David Taniar
Start page 1
End page 14
Total pages 14
Language eng
Subjects 0906 Electrical and Electronic Engineering
0999 Other Engineering
Abstract/Summary In the last decade, the explosive growth and adoption of mobile phones has become commonplace in our everyday lives (Haghirian, Madlberger & Tanuskova 2005). In 1997, there were only 215 million people worldwide who used mobile phones as communication devices (Bauer, Barnes, Reichardt & Neumann 2005). Today, it is estimated that 2 billion people own a mobile phone worldwide and this number makes up a third of the entire human population (Wireless Intelligence 2005). Mobile phones are no longer thought of as mere personal communication tools (Cheong & Park 2005; Ito & Okabe 2005). They have become a fashion symbol for teenagers and young adults (Katz and Sugiyama 2005). Personalised ring tones, colours, display logos and accessories are individualised accordingly to suit individuals’ preferences (Bauer, Barnes, Reichardt & Neumann 2005). Furthermore, mobile phones are no longer just a platform for voice calls and sending and receiving text messages such as Short Messaging Service (SMS). Photos, pictures and video clips can be attached as a Multimedia Message Service (MMS) for communication purposes too (Okazaki 2005a). With the recent introduction of 3G mobile technology, mobile phone users are able to perform more activities via their 3G enabled phone sets. They are able to browse the Internet fairly quickly, access online banking, play video games wirelessly, watch television programs, check for weather forecasts, allow instant messaging, and perform live video-conferencing (Okazaki 2005b). The rapid growth of the mobile industry has created a foundation for mobile commerce (m-commerce). M-commerce facilitates electronic commerce via the use of mobile devices to communicate and conduct transactions through public and private networks (Balasubramanian, Peterson & Jarvenpaa 2002). The current emerging set of applications and services that m-commerce offers include mobile financial applications, mobile entertainment and services, product locating and shopping, wireless engineering, mobile auctions, wireless data centres and mobile advertising (Malloy, Varshney & Snow 2002). Commercial research has indicated that consumers’ interest in m-commerce services and mobile payments have increased from 23% in 2001 to 39% in 2003 (Harris, Rettie & Cheung 2005). It is projected that by 2009 the global mobile commerce market will be worth at least US$40 billion (Juniper Research 2004). 2 Considering the projected worth of mobile commerce and the number of mobile subscribers, mobile marketing is increasingly attractive as companies can now directly convey their marketing efforts to reach their consumers without time or location barriers (Barnes 2002). The potential of using the mobile medium to market is now more attractive than before (Karjaluoto 2005), as it can assist companies in building stronger relationships with consumers (Barwise and Strong 2002), and can be used as a promotional channel to reach consumers directly (Barnes 2002; Kavassalis, , Spyropoulou, Drossos, Mitrokostas, Gikas, & Hatzistamatiou 2003; Okazaki 2004) anywhere and anytime. However many aspects of mobile marketing are still in its infancy (Bauer, Barnes, Reichardt & Neumann 2005; Haghirian, Madlberger & Tanuskova 2005; Okazaki 2004, 2005b; Tsang, Ho & Liang 2004). Research into mobile marketing is currently lacking as this is a relatively new phenomenon. Very few studies have been conducted to demonstrate how the mobile phone channel can be successfully integrated into marketing activities of companies (Balasubramanian, Peterson & Jarvenpaa 2002; Haghirian, Madlberger & Tanuskova 2005). Furthermore, no studies to date have compared the effectiveness of this mobile medium in delivering advertising and sales promotion with other more established media such as the print medium (Lee and Brown 2005). The fundamental question that remains unresolved is, “What is the difference between mobile marketing and traditional marketing?” Will this new form of marketing be effective? How will consumers respond to this form of marketing? What will be the benefit to marketers when consumers receive this type of advertising? These are just some of the issues that marketers are concerned with in order to evaluate the mobile channels for marketing purposes and are questions that are core to Computer Supported Collaborative Work (CSCW) and technology intervention research.
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Created: Fri, 14 Apr 2006, 01:12:06 EST